The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...

  The European Commission has confirmed that it will continue with its plan to impose tariffs on electric cars exported between the UK and EU starting next year. This is due to the "rules of origin" requirement that mandates EVs traded across the English Channel to have 60% of their battery and 45% of their parts sourced from the EU or UK or face a 10% tariff. A senior Commission official, Richard Szostak, recently informed parliamentarians from the UK and EU that the bloc's battery investment has significantly declined, making the tariffs necessary to encourage domestic production. In 2022, the EU's share of global investment in battery production shrank from 41% to only 2% after the US offered substantial subsidies through its Inflation Reduction Act. Starting in 2024, car manufacturers in the UK will need to have 22% of their sales come from zero-emission vehicles, which means they may need to import EVs from the continent to meet this requirement. If EU carmakers ...

  According to India's top trade official, talks with the UK regarding a trade agreement are progressing well, despite obstacles related to temporary work visas and the opening up industries like automotive and spirits. The Commerce and Industry Minister, Piyush Goyal, explained that India is seeking transition periods or greater market access in specific sectors due to its economy, which is slightly larger than the UK's and expected to outgrow it in the coming decades. If a trade deal is reached, it would be one of the most significant agreements for Britain since leaving the EU, and it would also be necessary for India, which surpassed the UK as the fifth-largest economy last year. Goyal stated that India aims to increase its economy from $3.5tn to $35tn by 2047, the country's centenary of independence. According to officials and diplomats in India, talks about a proposed trade deal may be finished by early September, just in time for the G20 summit in New Delhi. Nigel Hu...

  According to anonymous sources, the Bank of England is considering reforming its deposit guarantee scheme. The move comes in response to concerns that the current system may not be sufficient to protect customers in case of a bank failure. The Financial Services Compensation Scheme guarantees deposits up to £85,000 per person per institution. However, some experts have raised concerns that this may not be enough to prevent a run on banks in a significant financial crisis. As a result, the Bank of England is reportedly considering several options for reforming the scheme, including increasing protection and introducing more stringent bank regulations. A final decision on any changes will be made later this year. One option the Bank of England considers is increasing the protection offered by the deposit guarantee scheme. This could involve raising the maximum amount guaranteed per person or extending coverage to more types of deposits. Another possibility is to introduce more stri...

Germany has taken a bold step towards renewable energy by shutting down its last nuclear power plant. The decision was met with objections from Bayern, but the German government remained firm. This move is part of Germany's commitment to transitioning to sustainable energy sources and reducing its carbon footprint. While some argue that nuclear energy is a cleaner alternative to fossil fuels, the potential risks associated with it far outweigh any benefits. Germany prioritises the safety and well-being of its citizens and the environment by eliminating nuclear power plants. The country has already made significant progress in developing renewable energy sources such as wind and solar power, and this latest action only reinforces its dedication to a sustainable future. In addition to shutting down nuclear power plants, Germany has implemented several policies and initiatives to promote renewable energy. One such policy is the Renewable Energy Sources Act (EEG), which was first intro...

  Patrick Racz, the inventor known as "Tap Man," is seeking damages from Apple, Alphabet, Samsung, and Amazon for using his patented file-sharing and payment technology without permission. Racz claims that these companies have profited from his invention without appropriately compensating him. The lawsuit seeks billions of dollars in damages and could have significant implications for the tech industry. If Racz succeeds in his case, it could set a precedent for other inventors to seek compensation from large tech companies for using their patented technologies without permission. However, if he fails, it could reinforce the idea that patent litigation is often costly and challenging to win against powerful corporations. The lawsuit filed by Racz highlights the ongoing debate over patent laws and their impact on innovation in the tech industry. Some argue that patents are necessary to protect inventors' intellectual property and encourage innovation, while others claim tha...

Kun­shan, a county 50km from Shang­hai in China’s Jiangsu province, used to boast wages up to 30 per cent higher than in less-developed interior areas, thanks to the thou­sands of con­tract man­u­fac­tur­ers that assembled crit­ical com­pon­ents there. With almost 1mn people, Kun­shan has 1,529 export-focused man­u­fac­tur­ers from Taiwan alone and is known as China’s wealthiest county. Kun­shan’s mal­aise reflects the chal­lenges faced by China’s export-led eco­nomy as it emerges from three years of pan­demic restric­tions and as poli­cy­makers struggle to find another growth engine to off­set a decline in for­eign trade. The Biden admin­is­tra­tion has sought to secure sup­ply chains of crit­ical elec­tron­ics, such as those assembled in Kun­shan, on national secur­ity grounds, press­ing Amer­ican com­pan­ies and those of its allies to reshore oper­a­tions and restrict trade with China. «Kun­shan owes its rise to prom­in­ence to the influx of Taiwanese man­u­fac­tur­ers,» said Dan Wa...

  The news of Dr Martens' third profit warning in five months sent shockwaves through the fashion industry. The British bootmaker has long been revered for its high-quality, durable footwear, but this latest setback has left many wondering if the company can recover. The operational blunder at one of its distribution centres has affected the company's bottom line, and investors are understandably concerned. However, despite this setback, there is reason to believe that Dr Martens can bounce back. Its brand recognition and loyal customer base are still strong, and with the right strategy, the company can regain its footing. However, only time will tell if Dr Martens can overcome this latest challenge and thrive in an ever-changing market. One potential strategy for Dr Martens to recover from its recent setbacks is expanding its product line. While the company is known for its iconic boots, there may be opportunities to introduce new styles or products that appeal to a broader au...

  Intel's proposed €17bn chip factory in Europe has come under scrutiny from the German government, which has urged the company to expand its plans. The Berlin government has also floated the idea of higher subsidies for the project, as there are concerns that investment is drifting towards the US. The European Union is worried that Intel may not follow through with its plans due to pressure from shareholders and competition from other countries. The EU has called on Intel to prioritize Europe as a critical location for investment in the semiconductor industry, citing the need for secure supply chains and technological sovereignty. Overall, Intel's decision on whether or not to invest further in Europe will have significant implications for the region's economic future. Intel's proposed chip factory in Europe can create thousands of jobs and boost the region's economy. The factory would produce advanced semiconductors used in a wide range of products, including smar...

  The recent political deadlock in Washington over the debt ceiling has caused an increase in the cost of credit default swaps for the United States. This is due to fears that the government may not be able to meet its financial obligations, which would result in a default on its debt. Credit default swaps are insurance policies against such defaults. As the likelihood of a default increases, so does the cost of these swaps.  The impasse has also raised concerns about the US economy's stability and its reputation as a haven for investors. If the government were to default on its debt, it could have significant ripple effects throughout global financial markets.  Many experts are calling for a resolution to this issue to avoid further damage to the US economy and its standing worldwide. However, with both sides seemingly unwilling to compromise, it remains to be seen how this situation will ultimately be resolved. In addition to the impact on credit default swaps, the poli...

  Ernst and Young has warned its UK branch of fresh cutbacks after the firm failed to split into two separate entities. The move is part of a broader effort to streamline operations and improve organisational efficiency. While the specifics of the cutbacks have not been disclosed, sources suggest that they will likely include reductions in staffing levels and changes to operational processes. The news will surely be a blow to Ernst and Young's UK branch employees, many of whom are already facing uncertainty due to the ongoing economic downturn. However, analysts say the move is necessary if the firm remains competitive in an increasingly challenging market. Ernst and Young's decision to implement cutbacks in its UK branch is not an isolated incident. Many companies across various industries have been forced to make similar moves due to the economic downturn caused by the COVID-19 pandemic. The aviation, hospitality, and retail sectors have been hit particularly hard, with many ...

  Credit Suisse recently received a bailout from the Swiss government, but it has yet to be without opposition. Parliament passed a symbolic vote against the deal, highlighting concerns over the bank's stability and ability to manage risk. While this setback is undoubtedly concerning for Credit Suisse, the bank remains confident in its ability to weather the current economic storm and emerge more vital than ever.  To ensure long-term success, Credit Suisse has implemented several measures to reduce costs, improve efficiency and strengthen its balance sheet. These efforts include streamlining operations and cutting unnecessary expenses wherever possible. Additionally, they have focused on diversifying their portfolio to minimize risk exposure while providing clients with top-notch services.  Despite these challenges, Credit Suisse has been committed to serving its clients and contributing positively to Switzerland's economy for years. They are optimistic that their efforts...

  Smaller banks in the UK may soon receive higher deposit guarantees due to a move by the Bank of England. The central bank is considering granting "earmarked" status to smaller banks, allowing them to offer their customers more excellent protection on deposits. This change could be a boon for smaller banks, which often need help competing with larger institutions to attract new customers. With increased deposit protection, these banks may gain a competitive edge and expand their customer base. However, some critics have expressed concerns that this move could lead to moral hazard, as smaller banks may take on more risk knowing that their customers are better protected. Ultimately, it remains to be seen how this change will play out in the UK banking sector. The Bank of England's potential move to grant "earmarked" status to smaller banks is not without precedent. Several other countries already have similar programs in place. For example, the United States has ...

SoftBank's CEO, Masayoshi Son, is reportedly set to approve the Nasdaq listing for Arm. This move comes after SoftBank acquired Arm in 2016 for $32 billion. The listing is expected to take place later this year and could raise billions of dollars in funds for the Japanese conglomerate. It is also seen as a way for SoftBank to monetize its investment in Arm, which has grown significantly since the acquisition. The move could also provide Arm with more independence from SoftBank, allowing it to pursue its own growth strategies and potentially expand into new markets. The potential Nasdaq listing for Arm is not without its challenges, however. The ongoing US-China trade tensions could impact the success of the listing, as Arm has significant business dealings in China. Additionally, there are concerns that a public listing could lead to increased pressure on Arm to deliver short-term results rather than focusing on long-term growth strategies. Despite these challenges, many experts be...

  The demand for critical minerals has skyrocketed as the world becomes increasingly reliant on technology. However, some countries are tightening their grip on these resources by implementing export restrictions. Beijing has been leading this trend with its recent moves to limit exports of rare earth elements.  These restrictions have caused concern among many countries that rely on these minerals for their tech industries. Some have even called for alternative sources to be found to reduce dependence on China.  Despite the controversy surrounding these export restrictions, Beijing shows no signs of backing down. So, as the world continues to develop and innovate, it remains to be seen how this issue will play out and what impact it will have on global trade relations. One potential solution to reduce dependence on China for critical minerals is to increase recycling efforts. Many of these minerals can be found in electronic waste, and extracting them through recycling c...

  The International Monetary Fund (IMF) has released a report stating that the UK economy is expected to fall behind its peers in the coming years. The IMF predicts slower growth for the UK than other advanced economies, including Germany and France. The report cites uncertainty surrounding Brexit negotiations as a significant factor contributing to the UK's economic lag. Despite this forecast, the IMF does predict modest growth for the UK economy in the short term, with a projected growth rate of 1.5% for 2018. However, this growth rate is lower than previous estimates made by the organization earlier this year. The report also emphasizes the importance of continued trade relationships between the UK and EU, warning that any disruption could negatively impact both sides. The IMF report also highlights the issue of income inequality in the UK. The organization notes that while overall economic growth has been modest, there are significant disparities in income and wealth distributi...

  Eli Lilly's CEO, David Ricks, has spoken out against the EU's plans to reduce pharmaceutical patent protection. Ricks argues that this move would harm innovation and could lead to fewer new treatments being developed. He also warned that it could result in job losses and hinder economic growth. The EU is considering reducing the time drugmakers can hold patents on their products from 20 years to just 10 to increase competition and reduce healthcare costs. However, critics argue that this would discourage investment in research and development, as companies would be less likely to invest in expensive trials if their products were only protected for a shorter period. Ricks urged policymakers to consider the long-term consequences of such a move before making any decisions. In response to Ricks' comments, some experts have pointed out that reducing patent protection could lead to more innovation in the long run. They argue that by making it easier for generic drug manufactur...

  The yen hit today as the new Bank of Japan Chief, Haruhiko Kuroda, announced that he would continue with the ultra-loose monetary policy put in place by his predecessor. The policy has been credited with boosting Japan's economy and ending years of deflation but has also weakened the yen significantly. Analysts had expected Kuroda to take a more hawkish stance on monetary policy, so his announcement surprised many. As a result, the yen fell against most major currencies, including the dollar and the euro. Investors are now closely watching for any signs of change in the BoJ's policy under Kuroda's leadership, but ultra-loose monetary policy is here to stay. In addition to Kuroda's announcement, other factors contributed to the yen's decline. One of these was a rise in U.S. Treasury yields, which made the dollar more attractive to investors seeking higher returns. Another factor was concerns over geopolitical tensions in the Middle East, which led some investors to...

  The Croatian National Bank has rejected complaints from citizens regarding the country's adoption of the euro. The group had argued that the government needed to properly inform citizens about the potential drawbacks of joining the eurozone and that the decision should have been put to a referendum. However, before the decision, the central bank stated that all legal requirements had been met, including thorough analysis and public debate. The bank also emphasized that adopting the euro would bring numerous benefits to Croatia, such as increased trade and investment opportunities. Despite these assurances, some citizens remain sceptical about the move, citing concerns over losing control of their currency and potentially facing economic instability in the future. The decision to adopt the euro has been controversial in Croatia, with both supporters and opponents voicing their opinions. Proponents argue that joining the eurozone will provide stability and security for the country...

  India has announced a significant investment increase for villages along the border with China. The move comes as tensions between the two countries continue to escalate, with both sides increasing their military presence in the region. The investment will focus on improving infrastructure, such as roads and bridges, and providing basic amenities like electricity and water supply. This initiative aims to boost the economy of these remote areas and improve the lives of the villagers there. The decision has been welcomed by local leaders and residents alike, who hope this investment will bring much-needed development to their communities. However, some have raised concerns about potential environmental impacts and displacement of indigenous populations. Despite these challenges, India remains committed to investing in its border regions to ensure security and prosperity for all its citizens. In addition to the investment in border villages, India has announced plans to increase its...