Economy

The proposal includes raises of 30 percent over the four-year contract, up from a 25 percent offer, but it’s unclear whether it will satisfy workers.Boeing on Monday made what it described as its “best and final” contract offer to more than 33,000 striking union employees.The proposal offers benefits beyond those in a tentative contract that the employees, who are represented by the International Association of Machinists and Aerospace Workers, resoundingly rejected less than two weeks earlier. Boeing gave the workers, most of whom work in commercial aircraft production in the Seattle area, until the end of Friday to accept the offer.Boeing and the union restarted negotiations last week with the help of a federal mediator. The talks ended on Wednesday with no further negotiation dates scheduled, the union said at the time.Brian Bryant, the international president of the union, said in a statement on Monday that the organization was reviewing the offer.“Employees knew Boeing executives could do better, and this shows the workers were right all along,” he said. “The proposal will be analyzed to see if it’s up to the task of helping workers gain adequate ground on prior sacrifices.”The new proposal includes raises of 30 percent over the four-year term of the contract, up from the previous 25 percent offer. Boeing said it would give each worker $6,000 for approving the deal, double a previous offer. It would also reinstate performance bonuses that were set to be cut and increase a company match for employee 401(k) contributions. The rest is the same as the previous offer.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

Here’s what the main political parties propose on the economic front:FREEDOM PARTY – FPOThe far-right FPO, which narrowly leads opinion polls, wants deregulation and lower taxes, including:- Cutting corporation tax on small businesses from 23% to 10%- Scrapping a tax on carbon emissions introduced in 2022- Price controls during times of severe inflation on food, rent and energy as well as reducing sales tax on essentials- Expanding renewable energy while saying Russian gas will continue to be required- Greater annual pension increases particularly of small and minimum state pensionsAUSTRIAN PEOPLE’S PARTY – OVP Second behind the FPO in polls, the ruling conservatives also want lower taxes and lighter regulation, including:- Progressively cutting employment taxes- Making corporation tax at least 0.5% lower than the average rate among EU member states- Gradually cutting tax take as a percentage of GDP to 40% from 43.1% in 2022, according to OECD data- Putting automatic expiry dates on laws that introduce new regulations so they are only renewed if necessary- Removing two regulations for each new one introduced- Self-sufficient energy supply based on renewables, without mentioning a timeframeSOCIAL DEMOCRATS – SPO Polling around 20% of support, the leftist SPO calls for a shift in the tax burden from income to assets, saying this will allow them to cut taxes for 98% of taxpayers.They propose:- Bringing corporation tax back to 25% from the 23% which the OVP-Greens coalition reduced it to – Special levies on energy companies and banks that have profited from rising energy prices and higher interest rates- Gradually turning state holding company OBAG into the main vehicle for promoting renewable energy and the green transition, including using dividends paid to it by companies like oil and gas firm OMV and A1 Telekom Austria (OTC:TKAGY) to fund it- Quickly reducing dependence on Russian gas- Testing a four-day working week with companies and unionsNEW AUSTRIA – NEOSThe liberal party is polling about 10% and calls for:- Reducing employment taxes so workers take home more pay- Abolishing capital gains tax for long-term stock market investments to boost savers’ returns and domestic investment- Funding more apprenticeships and supporting vocational education to ensure it is seen as the equal of academic qualifications- Moving away from fossil fuels and Russian gas, setting up “one stop shops” to expedite approval of infrastructure needed for the green transition- Raising the retirement age to reflect greater life expectancyTHE GREENSIn coalition with the OVP since 2020 and polling about 8%, the left-wing Greens want a more active industrial policy and greater taxation of wealth instead of income.They propose:- Cutting subsidies for environmentally-damaging businesses to help fund infrastructure for the green transition- Expanding a carbon emission tax introduced in 2022, and the “climate bonus” paid out to Austrians from the proceeds- Abolishing licences for about half the jobs which today require them, such as travel agents, cooks and goldsmiths- Making Austria draw all its power from renewable sources by 2030, with a law mandating a move away from Russian gas- Progressively cutting the work week to 35 hours once skilled worker shortages have been addressed More

The median estimate from 11 analysts forecast the overall consumer price index (CPI) would fall to 4.73%, which would be its fourth consecutive fortnight of decline, though it would still be above the official target of 3%, plus or minus a percentage point.The core inflation index, which excludes products with high volatility to better gauge price trends, is projected to decrease to 3.97%, which would be its lowest level since February 2021.In the first 15 days of September, prices were estimated to have increased by 0.15% compared to the previous two weeks, with core prices up by 0.23%, according to the Reuters poll.The central bank’s board cut its benchmark interest rate by 25 basis points in early August in a divided vote. The board anticipated that the inflationary environment would allow it to discuss greater monetary easing.The Bank of Mexico’s next monetary policy decision will be announced on Thursday, just over a week after the Federal Reserve began a process of easing its monetary policy with an aggressive half-percentage-point rate cut, paving the way for the Mexican central bank to lower interest rates again.The National Statistics Institute, INEGI, will release on Tuesday the consumer price data for the first half of September. More

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“The balance of risks has shifted away from higher inflation and toward the risk of a further weakening of the labor market, warranting a lower federal funds rate,” Kashkari said in an essay, referring to the bank-to-bank overnight lending rate that is the Fed’s main policy lever. “Even after that cut, the overall stance of policy remains tight.”Last week the Fed cut its target range for its policy rate by a half-of-a-percentage point, to 4.75%-5.00%, a bigger-than-usual move that caught many analysts by surprise.Kashkari is not among the Fed’s 12 voting rate-setters this year, so his view on the recent decision was not previously known. He had until recently been among the more hawkish of Fed policymakers, arguing that Fed policy will likely need to stay tighter for longer to bring down inflation.In August he had said he was open to a rate cut, but indicated his preference for a smaller rate cut unless there was a quick deterioration in the labor market.Monday’s essay shows his views are now in synch with the bulk of his fellow Fed policymakers, and includes a chart that indicates he, like them, feels they will probably need to reduce the policy rate by another half-of-a-percentage point over the central bank’s final two meetings of the year. The chart also indicates he projects a further full percentage point reduction in the policy rate over the course of next year, to 3.4%.That would put the policy rate just a half-a-percentage point above what he now sees as the “neutral” rate at which borrowing costs neither bolster nor brake a healthy economy. The actual path, though, he said will depend on the incoming data. Inflation by the Fed’s preferred measure has dropped to 2.5%, a level that does not indicate victory in the inflation fight but does mark substantial progress, he said. The trend in recent months show “the disinflationary process appears to be on track,” he said, with little evidence inflation could surprise to the upside ahead. The labor market meanwhile has softened, he said, with the unemployment rate at a still-low 4.2% but up from last year, and other data on labor conditions showing a slowdown. Even so, he said, consumer spending and economic growth has been surprisingly resilient, a “confusing” mix of data that he said does not suggest recessionary pressures are building. More

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The US central bank cut its target range for its policy rate by 50 basis points to 4.75%-5.00% last week, after leaving borrowing costs at a more than two-decade high for over a year. This was the first reduction since March 2020, and the decision wasn’t unanimous as Fed Governor Michelle Bowman preferred to lower rates by just 25 basis points.”The balance of risks has shifted away from higher inflation and toward the risk of a further weakening of the labor market, warranting a lower federal funds rate,” Kashkari said in an essay, referring to the bank-to-bank overnight lending rate that is the Fed’s main policy lever. “Even after that cut, the overall stance of policy remains tight.”Kashkari is not among the Fed’s 12 voting rate-setters this year, but until recently had been seen as being among the more hawkish of Fed policymakers.In August he had said he was open to a rate cut, but indicated his preference for a smaller rate cut unless there was a quick deterioration in the labor market.There are more Fed speakers due this week, including Atlanta Fed President Raphael Bostic on Monday, ahead of Fed Chair Jerome Powell on Thursday at the 10th annual US Treasury Market Conference. More

The ruling Labour government has faced criticism for generating an atmosphere of doom over the state of the public finances.
Prime Minister Keir Starmer has warned of “painful” decisions after the party rallied to victory in the July general election.

Britain’s Chancellor of the Exchequer Rachel Reeves speaks on the second day of the annual Labour Party conference in Liverpool, north-west England, on September 23, 2024. 
Paul Ellis | Afp | Getty Images

Liverpool, ENGLAND — U.K. Finance Minister Rachel Reeves vowed on Monday that Britain will not return to austerity, but said she would make hard choices as she lays out budget proposals next month.
“It will be a budget with real ambition … a budget to deliver the change we promised. A budget to rebuild Britain,” she told a crowd of Labour party delegates Monday. “There will be no return to austerity.”

Her keynote speech, briefly interrupted by heckles from a pro-Palestinian protester in the crowd, came as Labour kicked off its annual party conference on Monday — its first in power for 15 years.
The ruling Labour government has faced criticism for generating an atmosphere of doom over the state of the public finances, with Prime Minister Keir Starmer warning of “painful” decisions after the party rallied to victory in the July general election.
Reeves has suggested that taxes are likely to rise at her upcoming Oct. 30 Autumn budget after discovering a £22 billion ($29 billion) “black hole” in the public finances. Her predecessor Jeremy Hunt, from the rival Conservative Party, has denied the claims as “fictitious.”
“I know that you are impatient for change. But because of that legacy inherited by the Conservatives, the road ahead is steeper and harder than we expected,” she told the audience Monday.

Reeves defended a divisive move earlier this month to cut winter fuel allowances for millions of pensioners as the “right decision in the circumstances we inherited.”

However, she reiterated that the government would not raise income tax, the National Insurance social security payments, value-added tax (a sales levy) and corporation tax
Instead, she vowed to raise additional revenues by eradicating the U.K.’s non-dom tax concession and clamping down on forms of tax avoidance and tax evasion.
“This government will not sit back and indulge those who do not pay the taxes they owe,” she said.
Reeves also restated the government’s position as “proudly pro-business,” referencing plans next month to host a business summit and announce proposals for a new national industrial strategy. That, she said, would include measures for Britain to reach its net zero and clean energy goals by 2030.
Additionally, she said that the government would continue to pursue trade deals to “open up new markets,” as negotiations currently remain underway with major partners such as India.

“After years of instability and uncertainty, Britain is open for business once again,” she said.
Half of Britons, including a quarter of Labour voters (26%), are disappointed with the government’s achievements so far, Ipsos opinion polling showed Friday. Gideon Skinner, Ipsos’ senior director of U.K. politics, said the findings were an indication that the government’s “honeymoon period” was over.
“There’s a seeping back of pessimism and concern following a few months of hope after the election,” Skinner said earlier Monday at the Labour party conference. More