IMF’s Managing Director Christine Lagarde with ECB’s president Mario Draghi.
Eric Piermont | AFP | Getty Images
Two of the world’s most influential economic leaders have said that there are “troubling developments” arising from increased trade barriers and tariffs.
Mario Draghi, the president of the European Central Bank (ECB) and Christine Lagarde, the managing director of the International Monetary Fund (IMF) warned that the global trade dispute between the U.S. and China as well as a threatened dispute with Europe and other industrial nations could cause “headwinds for all” and could get worse.
Speaking at the 8th ECB conference focused on central, eastern and south-eastern European (CESEE) countries on Wednesday, the IMF’s Lagarde said “we meet at a moment when support for global cooperation and multilateral solutions is waning.”
“Global growth has been subdued for more than six years and the largest economies in the world are putting up, or threatening to put up, new trade barriers. And this might be the beginning of something else, which might affect us all in a more broad way, ” she said.
“These troubling developments will create headwinds for all, but certainly for the CESEE growth model, a model that has relied on openness and integration,” she warned.
Lagarde and Draghi, who gave a welcome address at the conference, said the threat of U.S. import tariffs (on Europe) meant that some European countries that are centers of European car production — Czech Republic, Slovakia, Poland and Romania — could be particularly vulnerable.
“Global trade has faced headwinds in recent years as trade-restrictive measures have outpaced liberalising measures,” Draghi told the audience in Frankfurt.
“The central and eastern European business model has become vulnerable to shocks to international trade and financial conditions,” Draghi said, noting that in some CEESE countries vehicle exports represent nearly 30% of total manufactured exports, making them more vulnerable to U.S. President Trump’s threat to increase tariffs on European cars and car parts. Last August, Trump threatened to put a 25% tax on all EU car imports but has yet to implement the move.
“The effect of tariffs could be amplified, as a large share of goods cross borders multiple times during the production process,” he said.
“The main long-term challenge is moving towards a more balanced growth and financing model, which is more reliant on domestic innovation and on higher investment spending than it has been so far,” Draghi added.
SNP’s Sturgeon says Johnson has no mandate to take Scotland out of EU
Scotland’s First Minister Nicola Sturgeon said Boris Johnson has no mandate to take Scotland out of the European Union and demanded that they must be allowed to hold a fresh independence vote on its place in the United Kingdom.
In British elections held Thursday, Prime Minister Johnson looks set to win big and remain in power, with early results indicating his Conservative Party has gained a clear majority of parliamentary seats.
Speaking to BBC News, Sturgeon said, “I have a mandate, a fresh, renewed and strengthened mandate to offer the people of Scotland a different future.”
The exit poll, commissioned by Sky news, the BBC and ITV, projected the Scottish National Party (SNP) would win 55 out of 59 seats in Scotland.
Exit polling by Ipsos Mori was released soon after voting stations around the U.K. closed at 10 p.m. London time. It’s a survey of thousands of voters which has been reliably accurate in recent years. The poll projected that the Conservatives would win 368 seats in Parliament, a gain of 50 seats from the 2017 election.
“There is a mandate now to offer the people of Scotland the choice over our own future,” Sturgeon told Sky News on Friday.
“There is a clear desire and endorsement for the notion that Scotland should not be landed with a Boris Johnson government and ripped out of Europe against our own will,” Sturgeon told Sky News.
Reports suggest that Sturgeon is expected to write to Johnson next week asking him for approval to stage a new referendum. According to the Guardian, the prime minister is expected to reject the request.
Scotland, part of the United Kingdom for more than 300 years, rejected independence by 10 percentage points in a 2014 referendum.
Forbes 100 most powerful women of 2019
German Chancellor Angela Merkel has been named the world’s most powerful woman for the ninth year running in a wide-ranging list intended to celebrate the 100 most influential females of this year.
Forbes’ 2019 edition of its World’s Most Powerful Women, released Thursday, marked a return for the German leader, who has made 14 appearances in the list’s 16-year history.
Merkel was joined in the top spots by fellow prominent female political leaders.
Christine Lagarde moved up one place this year to second position after taking over a president of the European Central Bank. Speaker of the U.S. House of Representative, Nancy Pelosi, took third place and Ursula Von Der Leyen, president of the European Commission, fourth. The top five was rounded out by General Motors CEO Mary Barra.
This year’s top 100 females list featured women from six categories — business (31), technology (17), finance (12), media & entertainment (14), politics & policy (22) and philanthropy (4). Together, they control or influence more than $2.3 trillion in revenue and oversee nearly 6.5 million employees.
To determine the women’s rank within each category, as well as overall, Forbes applied four metrics: money, media, impact and spheres of influence. The publisher defined power as hard power (currencies and constitutions), dynamic power (audiences, communities and creative influence) and soft power (what leaders do with their influence).
Forbes’ executive vice president and president of ForbesWomen, Moira Forbes, said the list highlights the impressive strides women have made to upend traditional gender stereotypes over the past decade.
“This year’s list of World’s Most Powerful Women is a collection of innovators and instigators who are leading on the world stage to redefine traditional power structures and forge lasting impact in every industry and sphere of influence,” she said.
“As we come to the close of the current decade, our 2019 listees remind us of the huge strides that have been made by women, and the great opportunity they have to define the decade ahead,” Forbes added.
The 2019 list spans seven generations and 32 countries and territories.
Environmental activist and Time’s 2019 Person of the Year, Greta Thunberg, who ranked in 100th place, became the youngest person in the list’s history at the age of 16. She was ranked in 100th place. Queen Elizabeth (40th) was among the eldest.
Other list debuts were made by Kristalina Georgieva, managing director of the IMF (15th); Jessica Tan, co-CEO, CIO and COO of Ping An Group (22nd); Nirmala Sitharaman, India’s finance minister (34th); and singer/songwriter and entrepreneur Rihanna (61).
Overall, North America accounted for the greatest number of honorees at 50. It was followed by Asia Pacific (21), Europe (23), the Middle East (3), Latin America (2), and Africa (1).
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UK Labour leader Jeremy Corbyn says he will not lead the party in future elections
Labour party leader Jeremy Corbyn gives a speech at the County Hotel on June 4, 2017 in Carlisle, England. C
Jeff J Mitchell | Getty Images
Jeremy Corbyn announced he will not be leading the U.K.’s opposition Labour party in future elections, following what he called a “disappointing night.”
An exit poll by Ipsos Mori — commissioned by Sky News, the BBC and ITV — released shortly after the polls closed, projected that the Conservatives would win 368 seats in Parliament, a gain of 50 seats from the 2017 election. The U.K. pound quickly jumped more than 2% on the news.
Speaking on ITV on Friday, Corbyn said Labour will go through a reflection process and that he will lead the party during this period. However, he confirmed that he will not be leading the opposition party in any future election.
“This is obviously a very disappointing night for the Labour Party with the result that we’ve got,” Corbyn said.
The veteran left-winger was a surprise pick for his party back in 2015 and had spent 32 years on the backbenches of the House of Commons. However, he rose in popularity with the general public and stopped former Prime Minister Theresa May’s Conservative Party from gaining an outright majority in the 2017 election.
But he has been accused of pushing his party too far to the left. The party’s image has also been hit by claims of anti-Semitism, something that is being investigated by Britain’s human rights watchdog after a surge in complaints since Corbyn took office.
On Brexit, Corbyn was criticized for not fully backing the remain campaign during the 2016 referendum. More recently, the party had pledged to renegotiate a Brexit deal with the EU and to then put this to a public vote. But this proved to be fodder for attacks from the rival Conservative Party. Prime Minister Boris Johnson’s party claimed that Labour would “dither and delay for months and months” and then force the country though more referendums.
Sterling traded 2.4% higher against the dollar, at $1.3471, driven by exit poll results that predicted a Conservative win.
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