Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump wrote amid a series of tweets that rattled markets Friday.Politicsread more
"I would love this to be clarified. We come to a deal on trade, boy, this market is up 10 to 15%, but without it's going to be worrisome," Jeremy Siegel says.Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Tesla solar energy systems reportedly ignited at an Amazon warehouse in Redlands, California last June, and the Seattle e-commerce titan confirmed that it has no further plans...Technologyread more
The death comes as federal and state health officials investigate a slew of lung illnesses in connection to e-cigarette use.Health and Scienceread more
An aging population combined with a slowdown in emerging markets and pressure on the environment will lead to lower global growth and rising income inequality, a new OECD report warns.
The organization expects global growth is to slow from 3.6 percent in 2010-2020 to 2.4 percent in 2050- 2060. Such growth rates will still mean that global economic output will more than quadruple over the coming 50 years.
Current "deep-seated" trends such as an aging population, skill-biased technological change, globalization and rising environmental pressures are likely to have a profound impact on the world economy – with global warming expected to curb global growth by 1.5 percent on average – and raise difficult policy challenges.
"OECD countries will be hit by a double demographic shock", the OECD writes. As the global economic balance shift towards the non-OECD area, the demand for high-skilled workers will start to harmonize and the income gap between developed and emerging economies will continue to shrink.
With less incentive for economic migration, work-related immigration towards the OECD area will slow and, coupled with the aging trend already observed in advanced and many emerging economies, will lead to a reduced labor force.
By 2060, the OECD estimates that the labor force in the euro area will be 20 percent lower than it is today, while in the U.S., a 15 percent decline is anticipated.
At the same time, economic interdependency between OECD and non-OECD countries is likely to increase, the report states, with about 50 percent of world trade taking place among current non-OECD economies, up from today's 25 percent.
Asian and African economies should be major beneficiaries with GDP per capita expected to increase sevenfold in India and some African countries by 2060, while China's GDP per capita should be comparable to the current U.S. levels. As a result, the think tank says, the "share of non-OECD countries in world GDP will significantly exceed that of the current OECD members".
However, with global growth increasingly driven by innovation and investment in skills, the growing importance of skill-biased technological progress will lead to "continued polarization " on earnings growth.
The group estimates that with unchanged redistributive policies, pre-tax earnings inequality in the average OECD country will have risen by 30 percent which could "backlash on growth, notably if they reduce economic opportunities available to low-income talented individuals".
To curb the negative effect of the "double demographic shock" facing OECD economies, the think tank encourages countries to postpone the retirement age and provide the work force with "stronger work incentives at old age".
"Learning strategies" should be supported to ease transition from job to job and keep the work force flexible and more able to cope with structural change.
Economies should implement policies to support the knowledge-based growth, such as easy entry for new firms but also easy exit for ailing companies by, for instance, reforming bankruptcy laws, the OECD advises.
The keys to tackle the widening earnings inequalities, says the OECD, are better redistributive policies, enhanced focus on equality of opportunities and reviewing both funding mechanisms (for education) and tax structures, according to the rich-country club.
But most importantly, cooperation on trade policy "will become most important" as international coordination and cooperation could enhance research and spur technological innovation.
Multilateral trade liberalization should be encouraged, according to the think tank, as it will "bring the greatest global GDP and welfare gains by 2060".
Follow us on Twitter: