The Bank of England governor warns of increased consumer costs due to the Middle East conflict, despite falling oil prices post-US-Iran peace deal. Interest rates remain at 3.75% as the MPC balances inflation risks with economic slowdown fears.
The US Federal Reserve decided to maintain interest rates at 3.5-3.75% due to persistent inflation, driven by energy prices and Middle East conflict. Despite expectations, future rate hikes are possible by late 2027.
BMW AG anticipates a substantial decline in pre-tax profit due to weakening demand in China and the impact of the Middle East crisis. The company has lowered its profitability targets and plans to accelerate cost-cutting measures.
UK inflation remained unexpectedly at 2.8% in May, with higher transport and fuel costs offset by slower food price rises, according to the ONS. Economists had forecast a rise to 3%, but the flatlining figure defied expectations.
UK inflation remained unexpectedly at 2.8% in May, defying economists' forecasts of a rise to 3%. The flatlining figure, following April's decline, comes despite the Middle East conflict driving up energy prices. The Bank of England is expected to hold interest rates steady.
UK inflation remained unexpectedly at 2.8% in May, defying economists' forecasts of a rise to 3%. Higher transport and fuel costs were offset by slower food price rises, according to the ONS.
UK inflation remained unexpectedly at 2.8% in May, with higher transport and fuel costs offset by slower food price rises. The ONS figure defied economists' forecasts of a rise to 3% and comes as the Bank of England prepares to set interest rates.
A new peace deal may lower European energy costs by removing threats to shipping and infrastructure. However, concerns over the Strait of Hormuz, natural gas competition, and infrastructure repair linger, with analysts cautioning against over-optimism.
A war launched by Donald Trump against Iran in late February, aiming for regime change and military destruction, has concluded with a deal to reopen the Strait of Hormuz. Despite initial ambitious goals, Iran withstood intense bombing, emerging with greater leverage. The agreement, a 60-day ceasefire extension, defers complex issues like Iran's nuclear program and sanctions relief to future negotiations.
A war launched by Donald Trump against Iran in late February, with goals of regime change and military destruction, has concluded with a deal reopening the Strait of Hormuz. Despite initial ambitions, Iran withstood intense bombing, emerging with greater leverage. The agreement, a 60-day ceasefire extension, defers complex issues like nuclear program limitations and sanctions relief to future negotiations.
Falling global energy prices, potentially due to a US-Iran agreement, could offer relief to Indian refiners and gas consumers. Brent crude has dropped to nearly $83/barrel, impacting India's 88% crude import dependence. LNG prices, though moderated, remain elevated.
UK manufacturers face a "heavy drag" on competitiveness due to the highest electricity prices in the G7. Make UK and TUC call for expanded government relief, costing £3bn, to cover all manufacturers, as current schemes are too narrow.
Global markets surged Monday following a framework agreement between the US and Iran to end their conflict, leading to a fall in oil prices and the US dollar. The reopening of the Strait of Hormuz was announced, boosting investor confidence in riskier assets.
Thousands of UK companies risk bankruptcy due to soaring energy costs, which are double those in continental Europe. A survey by Make UK reveals a quarter of manufacturers are moving production overseas, and one in 10 fear insolvency within a year.
Slovak Prime Minister Robert Fico criticized the EU's approach to the Ukraine conflict, stating it's a 'war-until-the-last-Ukrainian' and 'until the last euro.' He urged EU leaders to prioritize declining competitiveness and high energy prices, and plans to seek EU compensation for military aid to Ukraine.
A US official, Wright, discussed rising energy prices, the blurry state of US-Iran relations, and potential economic measures like a gas-tax holiday. He stated the administration's goals of controlling energy prices and preventing Iran from obtaining nuclear weapons, while acknowledging trade-offs and the overriding objective of lowering costs for Americans.
The UK economy shrank by 0.1% in April, official figures show, as rising energy prices due to the Iran war and the closure of the Strait of Hormuz impacted growth. Services output declined, while construction saw a slight rise.
The World Bank has warned that the Middle East conflict could slow global economic growth to 2.5% in 2026, down from 2.9%, due to surging energy prices and inflation. Developing countries are particularly at risk, with the bank pledging up to $100bn in support.
The World Bank has reduced its 2026 global growth forecast to 2.5%, citing Middle East conflict, rising energy prices, and market uncertainty. India remains the fastest-growing major economy, projected at 6.6% for FY26-27.
OpenAI reported that China-linked accounts used ChatGPT to generate content opposing US data centers, blaming them for rising electricity prices. The company banned these accounts, stating they aimed to manipulate public debate, though OpenAI found no meaningful influence.
US consumer prices rose 4.2% in May, the highest in over three years, driven by energy costs linked to the Iran war. Tariffs and AI spending also contribute to inflation, complicating the Federal Reserve's interest rate decisions.
US consumer inflation reached a three-year high in May, rising 4.2% year-on-year, driven largely by a more than 60% increase in energy prices. President Trump expressed satisfaction with the report, linking inflation to energy costs and the ongoing conflict with Iran.
US President Donald Trump downplayed a surge in consumer inflation to a three-year high, calling the May CPI data "great." The inflation, driven by soaring energy prices from the US-Israel war in Iran, presents a challenge for Republicans before midterm elections.
Donald Trump stated he "loves the inflation" as it hit a 3-year high of 4.2% in May, driven by energy prices. He linked this to US actions against Iran, despite concerns from the Federal Reserve and financial institutions about potential rate hikes.
