World Economy

On eve of auto contract talks, VW workers in Tennessee reject UAW again

By Jerry White, 17 June 2019

Workers in Chattanooga were correct to reject, for the second time, “representation” by the United Auto Workers, a corrupt agent of corporate management.

Fed under pressure to indicate cut in interest rates

By Nick Beams, 17 June 2019

The push for an interest rate cut has increased, after Morgan Stanley’s Business Conditions Index revealed a record decline for June, falling to its lowest level since the financial crisis in December 2008.

Trump threatens immediate imposition of China tariffs if Xi does not attend G20

By Nick Beams, 11 June 2019

In an interview with CNBC, Trump attacked opponents of his tariff measures within US business groups and renewed his offensive against the Federal Reserve on interest rates and monetary policy.

Market surge continues on prospect of Fed rate cut

By Nick Beams, 10 June 2019

One financial analyst told the Wall Street Journal the markets were a “slave to liquidity, and when the Fed is accommodative, it’s a good sign for the markets.”

US job growth down sharply, wages stagnate

By Jerry White, 10 June 2019

US workers have seen a mere 1.1 percent increase in real wages over the last year.

IMF warns of growing trade war

By Nick Beams, 7 June 2019

Trump’s threat to use tariffs against Mexico over immigration has sent a shock wave through the international trading system because it makes clear the US is prepared to use economic and trade warfare measures to pursue all of its policy objectives.

US coal producer Cloud Peak Energy files for bankruptcy

By Zachary Thorton, 7 June 2019

Over 1,200 miners face a precarious future after the third-largest US coal producer declared bankruptcy.

US stocks surge as Fed signals rate cut

By Barry Grey, 5 June 2019

US stock prices shot up Tuesday, reversing weeks of declines, after Federal Reserve Chairman Jerome Powell signaled that he was prepared to slash interest rates.

Three reports expose extreme inequalities in Britain

By Steve James, 4 June 2019

Three recent reports and surveys have exposed intensifying levels of mass poverty, alongside the grotesque accumulation of wealth by a few.

The US and China on a collision course

By Andre Damon, 3 June 2019

The “cold war” between the United States and China took a major step toward becoming a “hot” war over the weekend at the annual Shangri-La defense summit in Singapore.

US defense secretary issues military threat against China

By Nick Beams, 3 June 2019

US Defense Secretary Patrick Shanahan delivered a 40-minute blast against China accusing it of seeking “Indo-Pacific hegemony in the near-term and, ultimately, global pre-eminence in the long-term.”

Trump’s Mexican tariff threat hits global markets

By Nick Beams, 1 June 2019

In pursuit of his political agenda, Trump has made clear he is prepared to resort to the unprecedented use of economic measures, with far-reaching international ramifications.

China considering “rare earths” retaliation in conflict with the US

By Nick Beams, 30 May 2019

An editorial published in the state-owned People’s Daily warned that the US should not underestimate China’s ability to fight a trade war.

Rumored deal between Fiat-Chrysler and Renault foreshadows mass layoffs

By Tom Hall, 27 May 2019

The proposed deal with the French automaker will be used to eliminate “redundancies,” particularly in FCA’s unprofitable European operations.

Former Trump adviser lays out plan for all-out economic war against China

By Nick Beams, 25 May 2019

Steve Bannon has called for Huawei, the Chinese telecoms firm, to be driven out of US and Europe, declaring this is ten times more important than any trade deal.

Markets fall on trade war and global growth fears

By Nick Beams, 24 May 2019

The Financial Times cited one fund manager who said it was “panic mode” and “people are realising that the economy could be a lot slower than we thought.”

Macron’s Labor Law in France: Unions organize 3,000 layoffs at Carrefour supermarket chain

By Anthony Torres, 23 May 2019

The unions and company are using a procedure for so-called voluntary redundancies introduced in the Labor Law initiated by the Socialist Party and imposed by Macron.

The Huawei shock

By Nick Beams, 23 May 2019

The actions by the Trump administration against the Chinese telecoms giant Huawei have sent shock waves through the global economy and the international trading system.

White House and Google launch technology war against China

By Andre Damon, 21 May 2019

Google and other companies have announced measures that would effectively destroy Huawei, the second-largest global smartphone maker and the world’s largest maker of telecommunications equipment.

Trump manoeuvres in economic war against China

By Nick Beams, 20 May 2019

US intelligence chiefs have held meetings with major American companies, providing them with classified information to warn of the dangers of doing business in China.

Democrats back trade war with China

By Patrick Martin, 18 May 2019

The main criticism of Trump’s trade policy by congressional Democrats and most presidential candidates is that the president should focus exclusively on China and enlist Canada, Mexico and the European Union in an anti-China coalition.

In another escalation of trade war against China

Trump issues executive order directed at Huawei

By Nick Beams, 16 May 2019

The latest US action is an escalation in what could be described as a drive to “weaponise” all arms of the state in the economic confrontation against China.

A new stage in the US-China trade war

By Nick Beams, 14 May 2019

The fundamental and irresolvable contradiction of world capitalism, between world economy and the nation-state system, lies at the root of the accelerating US-China trade war.

“Act now” on trade or it will get worse, Trump threatens China

By Nick Beams, 13 May 2019

The increasingly belligerent US rhetoric is being matched by action expected to target another $300 billion worth of Chinese goods with tariffs of 25 percent.

No agreement at US-China trade talks as positions harden

By Nick Beams, 11 May 2019

A week ago, a deal had been expected, but that scenario was blown up when the Trump administration accused Beijing of backtracking on its commitments.

US tariff hike against China goes ahead

By Nick Beams, 10 May 2019

Trump said talks with Chinese representatives would proceed, but “I have no idea what’s going to happen.”

China to hit back if new US tariff threat goes ahead

By Nick Beams, 9 May 2019

The US is demanding China submit an inventory of laws and regulations it will enact to guarantee compliance with any trade deal—in effect dictating economic policy to Beijing.

Financial parasitism and the stock market surge

By Nick Beams, 9 May 2019

In its maniacal drive for higher profits, increasingly generated by the parasitic inflation of stock prices, finance capital and its mouthpieces in politics and the media demand that more cheap money be made available through the slashing of interest rates.

On eve of trade talks in Washington

Trump threatens new tariffs against China

By Nick Beams, 6 May 2019

Trump’s threats, aimed at putting intense pressure on Chinese negotiators when they sit down with their US counterparts on Wednesday, could have the effect of blowing up the talks.

US-China trade talks enter final phase

By Nick Beams, 4 May 2019

One of the main sticking points is agreement on the procedure by which US tariffs imposed on $250 billion worth of Chinese goods would be lifted if a trade agreement is reached.

US threatens UK over Huawei involvement in 5G network

By Robert Stevens, 1 May 2019

After it was leaked that Huawei could help build the British 5G network, the Trump administration is threatening to shut Britain out of “Five Eyes” intelligence sharing.

Preparing for World War Three

Global military spending tops $1.8 trillion, highest on record

By Niles Niemuth, 30 April 2019

Nearly three decades after the end of the Cold War, the world’s capitalist elite, led by the United States, are preparing for a devastating conflict of global proportions.

Fed “pivot” promotes stock market surge

By Nick Beams, 26 April 2019

While share prices soar, the global economic outlook has worsened, with growing signs of a downturn.

UK: May unable to stem Tory crisis over Brexit, but still propped up by Corbyn

By Robert Stevens, 26 April 2019

For Corbyn’s faction, the political function of these talks over Brexit is to side-line a discussion on the political crisis facing the government that could precipitate a general election.

Ontario Tory government intensifies assault on workers’ rights

By Penny Smith, 26 April 2019

Ford’s thinly veiled threat to criminalize teachers’ strikes must be taken as a serious warning: emboldened by the unions’ complicity, the Tories are escalating their class-war assault.

The fraud of “progressive capitalism”

By Nick Beams, 26 April 2019

Calls for “reform” of the capitalist economy advanced by billionaire CEOs in the US and supported by “left” economists are motivated by deep fears of the implications of the shift to the left in broad sections of the American population.

Miners’ union sells out five-month long strike at Sibanye Stillwater in South Africa

Workers Struggles: Europe, Middle East & Africa

26 April 2019

The South African Association of Mineworkers and Construction Union agreed to a deal ending the five-month strike by gold miners on the same terms as the “slave labour” agreement signed with three other unions.

OECD report: Growth of social inequality fuels global political and economic crisis

By Jessica Goldstein, 23 April 2019

The findings of the report showed that among OECD countries, a growing number of middle-income earners perceive “that the current socioeconomic system is unfair.”

Major Indian airline grounded, threatening 23,000 jobs

By Deepal Jayasekera, 23 April 2019

The crisis facing Jet Airways, and which has caused it to ground all its aircraft, is part of a global crisis of the aviation industry.

New round of US-China trade talks

By Nick Beams, 19 April 2019

Among the most contentious issues that remain unresolved are which US tariffs would continue force and the establishment of an enforcement mechanism.

Two giant German banks plan merger

By Gustav Kemper and Peter Schwarz, 12 April 2019

The German government is pushing for the combination of Deutsche Bank and Commerzbank to establish a financial behemoth capable of competing with the US and China.

As trade tensions increase, IMF lowers forecasts for global growth

By Nick Beams, 11 April 2019

The IMF reported that industrial production and investment remained weak in many advanced and developing economies, and world trade had yet to recover.

US-China trade deal pushed back

By Nick Beams, 6 April 2019

Trump emerged from a meeting with chief Chinese trade negotiator Liu He to say it would take at least four weeks to reach an agreement as he declined to set a date for a summit with Chinese President Xi Jinping.

Investigation shows that a malfunctioning Boeing sensor caused Ethiopian Airlines crash

By Kevin Reed, 5 April 2019

The preliminary report by the Ethiopian Aircraft Accident Investigation Bureau shows that a faulty angle-of-attack sensor was behind the crash on March 10 that killed 157 passengers and crew.

UK local councils sell off billions of pounds in public assets due to austerity

By Joe Mount, 5 April 2019

Since 2014, over 12,000 publicly-owned assets with a total value of over £9.1 billion have been sold off, including libraries, health clinics, youth centres and public spaces.

Amid auto layoffs and warnings of manufacturing “bloodbath”

IMF chief points to global growth deceleration

By Nick Beams, 4 April 2019

IMF Managing Director Christine Lagarde noted that while two years ago 75 percent of the global economy was experiencing an upswing, today 70 percent is in a slowdown.

US-China trade deal still in the balance

By Nick Beams, 30 March 2019

The issue of enforcement has been at the centre of US demands, with Washington wanting the right to impose tariffs on China without any retaliation.

Xi signs strategic EU-China deals amid growing EU-US tensions

By Alex Lantier, 29 March 2019

Rome’s endorsement of China’s Belt and Road Initiative in the face of explicit US disapproval points to deep tensions between US and European imperialism.

Mounting warnings of a global recession

By Nick Beams, 29 March 2019

Bloomberg has reported that the amount of global bonds with negative yields has topped $10 trillion, an indication of the growing uncertainty in financial markets.

Turkish economy falls into recession, amid fears of further US economic reprisals

By Baris Demir, 26 March 2019

The Turkish lira depreciated by more than 5 percent last Friday, just nine days before nationwide local elections in which the ruling AKP is expected to suffer significant losses.

Fiction and reality: The Italian Five-Star Movement’s citizen income scheme

By Marianne Arens, 22 March 2019

The “reddito di cittadinanza” (citizen income) is a vanity project of the co-governing Five-Star Movement that will not change Italy’s stark social inequality.

French public sector strikes; further protests in Algeria; union ends wage strike at South Africa’s Sibanye Gold without an agreement

Workers Struggles: Europe, Middle East & Africa

22 March 2019

The World Socialist Web Site invites workers and other readers to contribute to this regular feature.

A tirade against China at US Senate committee hearing

By Nick Beams, 14 March 2019

The questioning of US Trade Representative Robert Lighthizer centred almost exclusively on the content and progress of trade talks with Beijing.

New York Times lines up with anti-China hawks

By Nick Beams, 12 March 2019

The key US demand is that China must make “structural” changes to its economy, including abandoning state subsidies to major industries.

US “retail apocalypse” expected to exceed annual high with more than 1,100 store closures announced in one day

By Trévon Austin, 9 March 2019

More than 6,300 stores are already set to close in 2019 already surpassing the total number of closures last year.

European Central Bank announces major policy reversal

By Nick Beams, 8 March 2019

The decision by the ECB came as a result of what President Marion Draghi characterised as “substantial” downward revision of growth estimates for the region.

US-China trade deal reported to be in the making

By Nick Beams, 5 March 2019

The Trump negotiators are insisting that the US retain the right to impose tariffs if it considers a deal has been abrogated and China should not impose any retaliatory measures.

Canada gives go-ahead for Huawei executive’s extradition to US

By Nick Beams, 2 March 2019

A statement from Meng’s defence lawyers objected to the Canadian decision in the face of what it called “the political nature of the US charges.”

British retail sector continues shedding thousands of jobs

By Simon Whelan, 2 March 2019

Some 19,000 high street jobs have been lost or put at risk in the two months since Christmas.

Enforcement and technology key issues in China trade deal, Lighthizer tells US Congress

By Nick Beams, 1 March 2019

The US Trade Representative made it clear the fundamental question is “structural reforms” in the Chinese economy.

Despite talk of “progress” in trade negotiations

Deep divisions remain between US and China

By Nick Beams, 26 February 2019

The key point in US demands on any agreement is that China opposes a unilateral decision on compliance by Washington, insisting it must be determined by a joint evaluation.

Trump announces delay in China tariff deadline

By Nick Beams, 25 February 2019

Trump said that if “additional progress” were made in the negotiations, he would plan a summit meeting with China’s President Xi Jinping.

Further blows to US anti-Huawei campaign

By Nick Beams, 23 February 2019

The Wall Street Journal has reported that the German government is “leaning towards letting Huawei … participate in building the nation’s high-speech internet infrastructure.”

No agreement on US-China trade with talks to continue

By Nick Beams, 16 February 2019

The next round will be virtually the last chance to reach a formal agreement before March 1, after which the US will increase tariffs—from 10 to 25 percent—on $200 billion worth of Chinese goods.

Wealth concentration increases in US and globally

By Nick Beams, 15 February 2019

The top 1 percent in the US now owns about 40 percent of household wealth, increasing its share by at least 10 percentage points since 1989.

Worsening slump and inequality fuel social tensions in Australia

By Mike Head, 13 February 2019

Growing signs of a global downturn and a domestic slump saw Australia’s central bank suddenly reverse course on interest rates.

As China-US trade deadline nears

Global economic war intensifies

By Nick Beams, 12 February 2019

Prospects for a US-China trade deal took a blow last Thursday when US President Donald Trump ruled out a meeting with China’s President Xi Jinping before the expiration of a March 1 deadline.

US-China trade talks to resume as deadline nears

By Nick Beams, 8 February 2019

While the Trump administration put a degree of positive “spin” on last month’s discussions, little progress has been reported on the key US demands.

No deal reached at US-China trade meeting

By Nick Beams, 2 February 2019

A statement issued by the White House at the conclusion of the discussions said Trump had reiterated that the US will increase tariffs unless an outcome is reached.

The Fed’s interest rate U-turn: Some economic and political conclusions

By Nick Beams, 2 February 2019

The financial elites on Wall Street, addicted to the supply of ultra-cheap money as they appropriate the wealth produced by the labour of billions of workers, dictate economic policy.

IMF to resume Sri Lankan loan program discussions

By Saman Gunadasa, 31 January 2019

The Sri Lankan government has assured the IMF of its commitment to “strong” austerity measures.

US and China still miles apart as trade talks are set to begin

By Nick Beams, 29 January 2019

The US is demanding China scrap its program for future economic development by implementing so-called “structural” changes.

In broadside against China, White House levels criminal charges against Huawei

By Andre Damon, 29 January 2019

The move marks a major escalation of the United States’ economic, geopolitical and military offensive against China.

Davos overshadowed by crisis and social upheaval

By Nick Beams, 25 January 2019

The decision to hand the keynote address to the newly installed fascistic president of Brazil, Jair Bolsonaro, demonstrated the political orientation of the global elites at Davos.

China-US rifts widen on eve of trade talks

By Nick Beams, 24 January 2019

The top-level meeting will be crucial in determining whether the US proceeds to impose a 25 percent tariff on Chinese goods when the March 1 deadline for negotiations expires.

As global elites gather at Davos

Oxfam: 26 billionaires control as much wealth as poorest half of humanity

By Nick Beams, 22 January 2019

The UK-based charity Oxfam International has reported that the wealth of the world’s billionaires grew by $900 billion last year, a rise of 12 percent, while 3.8 billion people—half the world’s population—saw their wealth decline by 11 percent.

China records lowest growth rate since 1990

By Nick Beams, 22 January 2019

National Bureau of Statistics head Ning Jizhe said the economy faced “downward pressure” and pointed to a “complicated and severe external environment” resulting from the US trade war.

Auto jobs massacre widens

Tesla, Nissan announce mass layoffs, Fiat Chrysler jobs threatened

By Marcus Day, 19 January 2019

The auto giants are seeking to terrorize an increasingly insurgent workforce into submission, as the companies confront slumping sales, a looming economic crisis and significant financial pressures.

Canada ramps up anti-China campaign as US threatens action against Huawei

By Roger Jordan, 19 January 2019

The Canadian government feels it can act so provocatively because its demonization of China is part of a broader offensive against Beijing led by US imperialism.

“Made in China 2025” at centre of US-China economic war

By Gabriel Black, 19 January 2019

The US regards the “Made in China 2025” initiative as a major threat to its own global economic and strategic domination.

Report to Davos meeting points to deepening contradictions of global capitalism

By Nick Beams, 18 January 2019

The gathering of global elites is very mindful of the mounting international class struggle, with “social anger” increasingly prevalent.

World Bank warns of “storm clouds” over global economy

By Nick Beams, 15 January 2019

The bank cut its June forecast for global growth of 3 percent this year to 2.9 percent and warned that “the risks are growing that growth could be even weaker than anticipated.”

Financial warnings point to Australia’s economic and political instability

By Mike Head, 12 January 2019

Two reports raise the spectre of a financial crisis that would blow up the pre-election claims of both the Coalition government and the Labor Party.

No deal reached in US-China trade talks

By Peter Symonds, 10 January 2019

The negotiations consisted of US officials insisting that Beijing meet a long list of demands, but offering nothing in return other than not proceeding with higher tariffs.

US and Canadian elites demand Trudeau government toughen its anti-China stance

By Roger Jordan, 9 January 2019

Although Ottawa has been a key partner in Washington’s confrontation with Beijing, ruling circles want Trudeau to go even further and ban Huawei from Canada’s 5G network.

US-China trade talks extended, amid continuing obstacles

By Peter Symonds, 9 January 2019

Washington’s aggressive stance was underscored by the provocative dispatch of a US destroyer to challenge Chinese claims in the South China Sea on day one of the trade talks.

Sri Lankan Central Bank governor calls for extended IMF program

By Saman Gunadasa, 7 January 2019

The IMF suspended the final $500 million installment of its $1.5 billion loan to Sri Lanka last November after bitter infighting erupted within Colombo’s political elite.

Growing signs of Australian economic fragility

By Oscar Grenfell, 5 January 2019

A marked slump in the property market is one expression of broader recessionary tendencies.

Wall Street rules

By Andre Damon, 5 January 2019

The Federal Reserve, responding to Thursday’s stock market selloff, declared it was “listening” to the markets and ready to scrap its plans to raise interest rates.

The global slowdown: US trade war comes home

By Andre Damon, 4 January 2019

The economic warfare pursued by the Trump administration with the support of broad sections of the US political establishment is coming home to roost in the form of a global slowdown spreading to the United States.

Slowdown in China’s manufacturing growth sets tone for New Year

By Nick Beams, 3 January 2019

A key Chinese economic index has indicated lower growth as talks on US-China trade tensions are set to begin.

Cuba deepens austerity in response to continued economic stagnation

By Alexander Fangmann, 3 January 2019

The Cuban government is cutting back on the consumption of energy and other goods as a result of stagnant growth, a fall in exports and the decline in oil subsidies from Venezuela.

A wild week on Wall Street

By Nick Beams, 29 December 2018

This week registered the first gain for the financial markets in three weeks, but they remain on course to record the worst December since 1931.

Wild swings on Wall Street

By Nick Beams, 27 December 2018

Even with yesterday’s jump in share prices, both the Dow and the S&P 500 are on track for their worst December since 1931, in the midst of the Great Depression.

Fed attempt at calming markets fails

Wall Street plunge continues

By Nick Beams, 22 December 2018

Both the S&P and the Dow are on track for their worst December performance since December 1931, during the Great Depression.

Malaysia files charges against Goldman Sachs over 1MDB scandal

By Peter Symonds, 22 December 2018

The 1MDB scandal was a significant factor in ousting the long-reigning UMNO government and reorienting Malaysian foreign policy away from China.

Financial market fall accelerates on global growth fears

By Nick Beams, 18 December 2018

With all indexes now in “correction” territory, having fallen more than 10 percent since their highs, Wall Street is on track to record its biggest annual decline since 2008.

China’s economic slowdown: The political issues confronting the working class

By Nick Beams, 15 December 2018

The China slowdown is part of a global process, exposing the fraudulent claim that the global economy had finally “turned the corner” after the deep recession produced by the financial crisis a decade ago.

Turmoil on Wall Street continues

By Nick Beams, 11 December 2018

Concerns over global growth are a significant factor in the ongoing slide and volatility in US markets, with signs of a downturn reflected in the fall of commodity prices.

The kidnapping of Huawei executive Meng Wanzhou

By Andre Damon, 8 December 2018

Meng’s arrest and confinement—without bail and on tendentious and opaque charges potentially carrying a sentence of 60 years—amount to little more than a kidnapping.