Economics

September 28, 2016

A new deal for the rich

What factors govern the distribution of wealth between individuals in today’s modern societies? In the first part of our chief-exec.com digest of the French economist, Thomas Piketty’s, Capital in the 21st Century…

September 21, 2016

Wealth, income and inequality

A Tale of Two Statistics Last week Oxfam ran a media campaign highlighting levels of inequality in the UK with a headline, “Richest 1 per cent owns 20 times more than UK’s…

September 16, 2016

Born in unusual times

Capital in the 21st Century is a surprising international best-seller. A highly detailed monograph from the renowned French economics professor, Thomas Piketty, the 690 page book seems an unlikely source for such global popularity. It is…

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EU to impose new sanctions on Iranian drone and missile producers
European Union leaders have agreed to ramp up sanctions against Iran over its unprecedented weekend attack on Israel, EU council president Charles Michel announced late on Wednesday, adding that new sanctions would target companies that manufacture drones and missiles. “We have decided to put in place sanctions against Iran, it is a clear signal that we wanted to send,” the European Council president said at an EU summit in Brussels. “The idea is to target the companies that are needed for the drones, for the missiles.” Iran launched an unprecedented drone and missile onslaught over the weekend against Israel, which caused little damage after most of the projectiles were intercepted. France 24, April 18

European leaders visit Israel, seeking restraint on Iran
David Cameron, Britain’s foreign secretary, acknowledged that Israel seemed certain to retaliate against Iran, despite pleas for restraint from Israel’s allies. “It is clear that the Israelis are making a decision to act,” Cameron told the BBC just before he met with Prime Minister Benjamin Netanyahu of Israel. “We hope that they do so in a way that does as little to escalate this as possible.” Israel’s allies have joined other world leaders in repeatedly pressing Netanyahu to avoid taking any action that could increase tensions with Iran, which launched more than 300 missiles and drones at Israel over the weekend. Israel’s war cabinet has met several times since to discuss when and how to respond, and officials are said to be considering a range of options, from a direct strike on Iran to a cyberattack or assassinations. Netanyahu, after meeting with Cameron and Germany’s foreign minister, Annalena Baerbock, said that Israel would make its own decisions and “do everything necessary to defend itself”. New York Times, April 18

Iran oil exports hit 6-year high as west prepares sanctions
Iran is exporting more oil than at any time for the past six years, giving its economy a $35bn-a-year boost even as western countries discuss stepping up sanctions in response to its attack on Israel. Tehran sold an average of 1.56mn barrels a day during the first three months of the year, almost all of it to China and its highest level since the third quarter of 2018, according to data company Vortexa. Iran’s success in exporting its crude underscores the difficulties facing the US and the EU as they seek to build up pressure on Tehran following its missile and drone attack on Israel. “The Iranians have mastered the art of sanctions circumvention,” said Fernando Ferreira, head of geopolitical risk service at the Rapidan Energy Group in the US. “If the Biden administration is really going to have an impact, it has to shift the focus to China.” Washington and the EU are preparing new sanctions on the Islamic republic, in part to dissuade Israel from escalating the conflict with Tehran by retaliating. US Treasury secretary Janet Yellen admitted this week that Iran “clearly” continued to export its oil and that there was “more to do” to curb the trade. Financial Times, April 18

Drug shortages, now normal in UK, made worse by Brexit, report warns
Drug shortages are a “new normal” in the UK and are being exacerbated by Brexit, a report by the Nuffield Trust health thinktank has warned. A dramatic recent spike in the number of drugs that are unavailable has created serious problems for doctors, pharmacists, the NHS and patients, it found. The number of warnings drug companies have issued about impending supply problems for certain products has more than doubled from 648 in 2020 to 1,634 last year. Mark Dayan, the report’s lead author and the Nuffield Trust’s Brexit programme lead, said: “The rise in shortages of vital medicines from rare to commonplace has been a shocking development that few would have expected a decade ago.” The UK has been struggling since last year with major shortages of drugs to treat ADHD, type 2 diabetes and epilepsy. Three ADHD drugs that were in short supply were meant to be back in normal circulation by the end of 2023 but remain hard to obtain. Some medicine shortages are so serious that they are imperilling the health and even lives of patients with serious illnesses, pharmacy bosses warned. The Guardian, April 18

National insurance cut risks worsening debt burden, IMF tells Britain
The government’s £20 billion national insurance tax cut risks worsening the country’s public finances, the International Monetary Fund has said, as it projected an increase in the UK’s debt burden over the next five years. In its latest assessment of debt levels across the world economy, the IMF said the UK’s public debt ratio would rise until the end of the decade to 98 per cent of GDP by 2029. The figures throw doubt on the government’s claims that it can bring down debt within the next five years, in line with the chancellor’s self-imposed fiscal rule. The Times, April 18

Police bust global cyber gang accused of industrial-scale fraud
Police have taken down a gang accused of using a technology service that helped criminals use fraudulent text messages to steal from victims. They have arrested 37 people worldwide and are contacting victims. Officers say younger people who grew up with the internet were the most likely to fall for the “phishing” scam. The technology allowed scammers without technical skills to bombard victims with messages designed to trick them into making payments online. Police targeted the gang’s site, LabHost, which helped criminals send the messages and direct victims to fake websites appearing to be legitimate online payment or shopping services. It had enabled the criminals to steal identity information, including 480,000 card numbers and 64,000 Pin codes, known in criminal slang as “fullz data”, the police said. Detectives do not know how much money was stolen but estimate the LabHost site made nearly £1m ($1.25m) in profits. BBC news, April 18

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Economics

A new deal for the rich

Wealth, income and inequality

Born in unusual times