Trump’s planned limits on US property investing could spur foray into UK housing market

Leading US investors and private equity firms could step up their foray into UK new-build housing after Donald Trump’s move to ban institutional companies from buying single-family homes in the US, raising concerns that investors could “cut corners and increase rents”.The US president said last week that he would ask Congress to codify the measure as he tries to address concerns that families are struggling to buy or rent a home. The median property sale price was $410,800 (£305,000) last year, according to the US Census Bureau.Analysts have predicted the ban could prompt large US investors, including Madame Tussauds owner Blackstone, to double down on Britain’s property market.While corporate investors insist they want to provide good-quality, well-managed housing, expectations that they would seek increased profits from rents could put them at odds with tenants

JP Morgan boss says Trump attacks on Federal Reserve could push up inflation

The boss of JP Morgan, the largest US bank, has said Donald Trump’s attacks on the Federal Reserve chair, Jerome Powell, are putting central bank independence at risk and could backfire and ultimately push up interest rates and inflation.Jamie Dimon told reporters on Tuesday he had “enormous respect” for the Fed chair, who on Friday became the target of a controversial criminal investigation by the US Department of Justice (DoJ) over alleged “abuse of taxpayer dollars”.Powell has denounced the investigation, linked to a $2.5bn (£1.9bn) renovation of the Fed’s headquarters in Washington DC, claiming it is punishment for not setting interest rates in line with the US president’s wishes

Trump claims victory on US economy despite many Americans’ cost of living concerns

Donald Trump claimed victory on the economy after 12 months back in office on Tuesday, declaring it to be the “greatest first year in history” as many Americans express alarm over the cost of living.In a stream-of-consciousness speech at the Detroit Economic Club, the US president delivered his gold-tinted view of how the economy has fared on his watch. Prices were down, he claimed, despite official data showing otherwise, and productivity was “smashing expectations”.Even as he touted achievements during the first year of his second term, Trump has started to acknowledge concerns over affordability across the US, with November’s midterm elections creeping closer. The White House has moved to roll out a series of policy proposals in recent days that aspire to address affordability

Labour revives Northern Powerhouse Rail project with pledge of £45bn funds

Long-awaited plans for better railways across the north of England have been given government backing with an undertaking to “reverse years of chronic underinvestment” by spending up to £45bn building Northern Powerhouse Rail.Just over £1bn has been allocated to work up a detailed three-stage plan to connect cities from Liverpool to Newcastle, which could fulfil most of the demands of northern leaders, in a series of long-term projects.However, mayors may have to raise local funding to pay for parts of the scheme, with the Treasury imposing a £45bn cap as it seeks to avoid the huge overspend that has blighted the construction of HS2.The government also “set out its intention” to build a Birmingham-Manchester line after the completion of Northern Powerhouse Rail (NPR), although it insisted this was “not a reinstatement of HS2”.It said NPR would form the backbone of a wider growth plan, with faster, more frequent train services transforming connections between cities

Only shoppers can save a nation of shopkeepers | Letters

I fear that John Harris is partially buying into Reform UK’s rhetoric about the decline of the high street (The UK’s high streets have reached a tipping point – and Reform will reap the benefits, 11 January).The decline of small businesses in our high streets is largely the result of consumer choice. That’s why supermarkets exist. They sell goods more cheaply and have a range that would be equivalent to numerous shops. The majority of the population prefers to drive and do it all in one go, regardless of income

Twelve top central bankers defend Fed’s Jerome Powell over DoJ investigation; oil hits two-month high as Trump threatens Iran’s trading partners – as it happened

Newsflash: Eleven of the world’s top central bankers have released a statement of support for Federal Reserve chair Jerome Powell, after the US Department of Justice opened a criminal investigation into him.In an unprecedented move, top central bank chiefs including the Bank of England’s Andrew Bailey, and Christine Lagarde of the European Central Bank, have backed Powell, and warned against undermining central bank independence.The heads of the Swedish, Denmark, Swiss, Australian, Canadian, South Korean, and Brazilian central banks have also signed, as have two top officials at the Bank of International Settlements (known as the “central bank for central banks”).Others may yet sign the letter too, Reuters suggested this morning.The central bank chiefs say:We stand in full solidarity with the Federal Reserve System and its Chair Jerome H