Aurelia Butler

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.What is happiness? For the ancient Greek philosopher Plato, it meant a life committed to knowledge and virtue. The Japanese concept of “ikigai” preaches balance. Or, according to the legions of self-anointed lifestyle gurus on social media, it is about “being your best self” — whatever that may mean. There is no universal definition. But there is an international consensus that happiness, however measured, is important — so much so that the UN has a resolution recognising it as a “fundamental human goal”. And since 2012, it has declared March 20 the International Day of Happiness. The annual World Happiness Report, released to mark the occasion this week, ranks the happiest countries. It is based on a survey that asks individuals to evaluate their lives on a scale of 0 to 10. Out of 143 countries, the rich, low-inequality and high-welfare Scandinavian nations rank near the top. The G7 nations are spread between 15th and 51st place. And fragile, conflict-affected states cluster unsurprisingly at the bottom. You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.Although many national constitutions mention happiness, Bhutan is most unique for explicitly focusing on it. Should more nations do so? After all there has been a welcome push for wider measures of societal progress, beyond gross domestic product, ever since the financial crisis. As the WHR shows, nations with higher GDP tend to have higher happiness, but none of the world’s 10 largest economies feature in its top 10.The Himalayan kingdom illustrates the pitfalls of trying to measure happiness. When Bhutan was last ranked in the WHR in 2019, it came a lowly 95th out of 156. But the country’s own gross national happiness index — based on nine themes such as wellbeing, community and the environment — has edged up since 2015. Indeed, even if a country can agree on an appropriate set of happiness metrics, each citizen derives a sense of life satisfaction in a different way. Cross-country comparisons can be nonsensical, and mood-based surveys are influenced by everything from the time of day to the weather. Nonetheless, feelings matter for politics and the economy. Studies show that high life satisfaction is a reasonable predictor of an incumbent party’s electoral success, and that unhappy voters tend to vote for populists. The WHR also highlights the troubling decline in youngsters’ happiness across the west. Rising mental health problems have a knock-on impact on productivity and demand for public services.So, what role should government play in citizens’ pursuit of happiness? Measurement issues aside, targeting higher happiness scores is not a recipe for utopia. “Bread and circuses” is not a sustainable form of governance — be that for a country’s citizens or a company’s employees. Nor is it possible to make everyone happy at the same time. But, understanding what contributes to happiness is valuable. The WHR shows that life evaluations can be largely explained by six factors: GDP per capita, levels of social support, health, freedom, generosity and perceptions of corruption. These drivers of fulfilment are a far better basis for policy. An equivalent approach is to see the role of government as reducing the causes of unhappiness. This focuses on giving citizens the capability to improve their own lives, by providing basic public services, supporting freedoms and protecting them from harm. It is best left to individuals to pursue whatever happiness means for them, be that starting a business, doing yoga, or early morning ice baths. For such an amorphous yet important concept, happiness should be best thought of as a byproduct of good governance, rather than its raison d’être. More

(Reuters) – Federal Reserve Chair Jerome Powell on Friday opened a “Fed Listens” event on how Americans are experiencing the economy, saying the pandemic has had “lasting” effects and that to make good policy the U.S. central bank cannot rely only on macroeconomic data but needs to hear directly from people and businesses.He did not make any remarks about the outlook for interest rates, which the central bank held steady in the 5.25%-5.5% range at its meeting earlier this week.  More

LONDON (Reuters) – European stocks were mostly lower on Friday, edging down from recent all-time highs in a move attributed to profit-taking after a busy week of central bank moves, while UK stocks were boosted by the Bank of England being seen as more dovish.A surprise rate cut from Switzerland’s central bank on Thursday helped push markets to new highs, as traders realised that major central banks around the world would not necessarily wait for U.S. Federal Reserve rate cuts before delivering their own.Wall Street rallied overnight, with all three major indexes extending their streak of record highs. But sentiment turned more cautious on Friday. At 1239 GMT, the MSCI World Equity Index was down 0.1% on the day, but up 1.9% on the week as a whole, on track for its biggest weekly gain so far this year. In a busy week for markets, traders drew confidence not only from Switzerland’s rate cut on Thursday, but also from the Bank of England being more dovish than expected. The BoE said the economy is “moving in the right direction” for it to start cutting rates. Europe’s STOXX 600 was down 0.1%, after touching a new all-time high, while London’s FTSE 100 was up 0.5%, helped by expectations that the Bank Of England would cut rates sooner than previously thought. BoE Governor Andrew Bailey saying in a Financial Times interview that the expectation of more interest rate cuts this year on a whole was not “unreasonable”.MSCI’s Europe index was down 0.4% and France’s CAC 40 was also down 0.4%.Wall Street futures were up, as traders waited for commentary from Fed Chair Jerome Powell later in the day.The U.S. Federal Reserve said at its meeting on Wednesday that recent high inflation readings had not changed the underlying “story” of slowly easing price pressures.”I think there might be some profit-taking at the end of the week, just because of the amount of data that we’ve seen and the fact that we have seen more positive surprises,” said Baylee Wakefield, multi-asset fund manager at Aviva (LON:AV).Trading may also reduce in the lead-up to the Easter weekend, Wakefield added.The U.S. dollar index was up 0.4% at 104.23, on track for its best week since the first week of the year. “The dollar’s basically going to have its best week since January and that is because markets are now accepting that other major central banks will reduce their policy rate faster than the Fed, especially because we’ve had further evidence from the strong economic data we’ve had out of the U.S. this week,” Aviva’s Wakefield said.U.S. jobless claims unexpectedly fell, sales of previously owned homes increased by the most in a year in February and U.S. business activity held steady in March, data this week showed. A gauge of future economic activity in the U.S. turned positive in February for the time in two years.The euro was down 0.3% at $1.0828. The probability of a European Central Bank rate cut before summer is increasing, Bundesbank President Joachim Nagel said.The British pound was down 0.3% at $1.26175, having earlier hit a one-month low. Euro zone government bond yields were set for a weekly decline. The benchmark German 10-year yield was down by 6 basis points at 2.334%.China’s yuan dropped sharply during Asian trading, hitting a four-month low, in a move analysts attributed to rising expectations that there will be more monetary easing to prop up the country’s economy.Oil prices were steady, with global benchmark Brent hovering above $85 per barrel. The possibility of a ceasefire in Gaza had pushed prices lower earlier in the session. The stronger dollar and lower U.S. gasoline demand also weighed on prices.Gold was down 0.3% at $2,174.48 per ounce, having hit a record bid high of $2,222.39 on Thursday.Investment flows into gold in the week to Wednesday reached their highest in almost a year, Bank of America Global Research said. More

WASHINGTON (Reuters) – The Republican-controlled U.S. House of Representatives and Democratic-majority Senate on Friday will scramble to beat a midnight government shutdown deadline by passing a $1.2 trillion bill keeping the government funded through September.If they succeed, it will end a more-than-six-month battle over the scope of Washington’s spending for the fiscal year that began Oct. 1. If they fail, federal agencies will begin a partial shutdown, furloughing thousands of workers nationwide and abroad.”This bill funds our highest national security priorities,” Republican House Appropriations Committee Chairwoman Kay Granger said in a statement on Thursday, praising the bipartisan deal.Granger mainly was referring to the Defense Department’s $886 billion in funding included in the 1,012-page bill that also covers agencies ranging from the Department of Homeland Security, Internal Revenue Service and Justice Department to Treasury and State departments.It will add to the fast-growing national debt that now totals nearly $34.6 trillion.Not all Republicans were as enthusiastic over the bill.Representative Robert Aderholt, who chairs a House appropriations subcommittee, raised concerns about the prospects for passage by voicing opposition to the measure over provisions that he said would benefit undocumented immigrants and fund abortion services. “I cannot and will not vote for these projects or this bill,” Aderholt said in a statement. The hardline House Freedom Caucus, which represents roughly three-dozen Republicans, also complained that the bill is loaded with “radioactive ‘woke’ earmarks.”Earmarks are special spending requests sought by individual members of Congress, often public works projects for their home states or districts.Still to be seen is whether conservative Republicans in the Senate delay passage of the bill by demanding debate on a series of amendments.A separate controversial money matter is boiling in Congress where its leaders, except for House Speaker Mike Johnson, urgently are calling for final passage of a $95 billion security assistance package approved by the Senate for Ukraine, Israel and Taiwan.Some Republicans are balking at continuing to back Ukraine in its war against the invading Russian military.While conservatives succeeded in getting Congress and Democratic President Joe Biden to agree to some fiscal 2024 spending cuts, they hoped for far deeper ones. Their disgruntlement led to the historic October removal of House Speaker Kevin McCarthy. The Republicans’ subsequent political infighting shut down the House for three weeks as Republicans fought over a replacement.BACK TO THE BRINKSince then, with the November elections looming, most Republicans have been loath to trigger a government shutdown over spending, although Washington was brought to the brink four times since late September.The last shutdown occurred during Donald Trump’s presidency, from Dec. 22, 2018 until Jan. 25, 2019. The record-long interruption in government services came as Trump insisted on money to build a wall along the U.S. border with Mexico and was unable to broker a deal with Democrats.It ended when some air traffic controllers in major airport hubs, tired of working without pay, threatened to stay at home.Rating agencies have warned that the repeated brinkmanship could take a toll on the U.S. government’s creditworthiness.A shutdown beginning on Saturday would mean most U.S. Border Patrol and immigration agents would continue to work. But local governments might not receive new aid to shelter migrants.U.S. soldiers and all federal workers would not get paid until new funding is enacted and national parks would be shuttered. Same situation for the two U.S. astronauts aboard the International Space Station 254 miles (409 km) above Earth. Meanwhile, the Internal Revenue Service would continue processing tax returns that are due on April 15. It would advise taxpayers of any potential delays in refunds. At the State Department, security at embassies and other foreign offices would remain in force and passports and visas would be issued as long as there were sufficient fees to support such activities. Many other operations would cease. More

SALZBURG, Austria (Reuters) -Salzburg, the home of Mozart and “The Sound of Music”, is not a place known for radical change.The picturesque Austrian city, which draws tourists from around the world to its baroque palaces, Christmas market and summer festival of classical music and theatre, has had mayors from only two centrist parties since World War Two.But now residents’ growing exasperation at some of the highest housing costs in Austria could push them to elect a young Communist as mayor in a run-off election on Sunday.”Our key issue, affordable housing, is not just an issue for people who have to live on a very low income but rather it has become an issue for the broad majority of people who live off their work and not their wealth,” the Communist candidate, Kay-Michael Dankl, said in an interview at his party’s offices.If he wins Sunday’s run-off against Social Democratic Deputy Mayor Bernhard Auinger, Salzburg will follow Austria’s second city Graz in having a Communist mayor. The cities are rare successes for a party not even in national parliament.”Many people who have lived in the city are moving back to the countryside or going back (elsewhere) because rents are extremely expensive,” said 26-year-old social worker Michelle.That Dankl’s party, the Austrian Communist Party Plus (KPO Plus), came a close second in this month’s city council election shows that protest votes need not be the preserve of the far-right Freedom Party (FPO), which leads in national polls but came fifth in Salzburg.”Really this is an election based on personality,” said political analyst Kathrin Stainer-Haemmerle of Carintha University of Applied Sciences.Dankl, a 35-year-old historian and former leader of the Young Greens, grew his party’s share of the vote to 23.1% this month from 3.7% in 2019. Part of his success has been his personal appeal – he is a slick, calm speaker with bookish charm and an easy smile. “He really is a very good and formidable communicator,” political analyst Thomas Hofer said. “With his personality, his engaging nature, he is able to soften the harsh edges of the K in the party name.”He has also won over part of the public by keeping only 2,300 euros ($2,500) a month of his salary and donating the rest for one-off financial aid to constituents in need. Dankl hopes his dedication in addressing voters’ concerns will outweigh rivals’ calls not to vote for a Communist.”I think most people in the city of Salzburg now know what we stand for,” he said.Rattling off figures and examples, he said that on average renters in his city spend half their household income on rent and associated costs like heating.UNREALISTICSalzburg’s housing crunch is particularly down to a relative shortage of social housing, according to a report two years ago by economic think tank Wifo.Dankl wants to build 1,000 units of subsidised housing a year for 10 years, a goal his rival Auinger says is “completely unrealistic”. He has pledged 1,500 units over five years.But the plan resonates even with the wealthy.”It’s just impossible for young people to find an apartment. There just aren’t any subsidised apartments and there should be a much greater supply,” said Brigitte, 71, who rents out two apartments she owns.Tourist accommodation is also a factor. Dankl wants to restrict the use of AirBnB (NASDAQ:ABNB) to a few weeks a year per apartment. Auinger, 50, says that will do little to fix the problem.Both candidates support investigating how many apartments lie empty for much of the year and say a levy on empty apartments must be better enforced.The suspicion is that many of these empty apartments belong to wealthy absentees, particularly from nearby Germany, who mainly visit during the summer festival.”We live right over there in the old town and you can simply see how during the festival everywhere in the city the lights are on in the windows, and in winter it’s dead,” said Christian, 26, who is studying to become a teacher.Just 821 votes separated Dankl and Auinger in the first round of voting and the two say they will work together whoever wins on Sunday. ($1 = 0.9209 euros) More

According to data from LSEG, investors purchased a net $15.7 billion worth of global equity funds during the week after about $21.95 billion worth of net accumulation in the previous week.The MSCI World Stock Index hit a new record of 785.62 following the Fed’s Wednesday announcement, which reinforced its stance on reducing rates three times this year.Regionally, U.S. funds led with $14.07 billion in inflows, the highest since mid-June 2023, while Asian funds added $3.29 billion, but European funds saw outflows of $1.91 billion.The tech sector funds gained $2.12 billion in inflows during the week, the biggest amount since Feb. 14, whereas the financial sector faced sales of $1.02 billion. The metals & mining sector attracted $459 million.Bond funds extended their inflow streak to 13 weeks, attracting $4.88 billion, with corporate bonds drawing $3.17 billion and government bonds $1.3 billion. However, global short-term bonds experienced $2.12 billion in net withdrawals.Money market funds, meanwhile, witnessed outflows of about $65.9 billion, their first weekly net selling in four weeks. Among commodities, precious metal funds broke a seven-week-long selling trend with a massive $1.46 billion worth of net buying, the biggest since May 2022. Conversely, energy funds suffered $102 million worth of outflows.Data covering 29,715 emerging market funds showed equity funds lost $450 million in outflows, marking their third weekly net selling in a row. Bond funds also witnessed $933 million worth of net disposals in contrast to about $454 million worth of net purchases, a week ago. More