07/08/2025 News
07/08/2025 News
Hello everyone. This blog is about news that I find out that happen today, that I find myself pretty interesting, and I will report every so often on the blogs I create. I get news off Google and Bing news when I through my usual daily news check. Keep in mind that most information I may gather may not be true and that I'm just summarizing what I find online off Google and Bing.
Bank of England cuts interest rates as it warns food costs could push inflation to 4%: Thursday's cut is the fifth in a year and takes borrowing costs to the lowest level since March 2023.
The Bank of England has warned that rising food prices could drive the inflation up to 4$ as it voted for a fifth cu tin interest rates in a year, amid the mounting concerns about the strength of the UK economy. In one of the closest decisions since its independence more than 25 years ago, the Bank's monetary policy committee ( MPC ) voted by 5-4 to cut its key base by a quarter point to 4%.
The cut, taking borrowing costs to the lowest level since March 2023, was widely expected in financial markets. However, the decision was a close call, with the rate setting panel for the first time in history holding two votes before reaching its verdict.
The Bank's governor, Andrew Bailey, has said that; " We've cut interest rates today, but it was a finely balanced decision. Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully. "
" City investors reacted to the decision by sending the pound higher on foreign exchanges, after Bailey had warned that mounting inflation risks can delay further rate cuts. " , " I do think the path continues to be down... But the path has become more uncertain because of what we're seeing, " he said.
The chancellor, Rachel Reeves, welcomed the cut, which will ease some of the financial pressure on borrowers. Well its not just that, but there has also been some pressure that's been mounting on the government over its management of the economy, and speculation is swirling about tax rises in her autumn budget. Ministers have also sought to claim credit for the Bank's rate cuts since it's first reduction since August, with borrowing costs now down from a peak of 5.25%.
" The stability we have brought to the public finances through our plan for change has helped make this ( rate cut ) possible, " Reese said on Thursday.
However, critics say the chancellor's tax raising Autumn budget has also added to the pressure on businesses and households amid global uncertainty from Donald Trump's trade war.
In a blow to the government, Threadneedle Street said that the tax rises were contributing to rising inflation and unemployment as it sounded the alarm over the country's weak growth prospect. Publishing updated forecasts, the MPH singled out the fast rising food prices as it warned that the food prices inflation was on track to reach 5.5% before the end of the year. It attributed much of the rise to global factors, including increasingly extreme weather events hitting cocoa and coffee harvests, highlighting the dangers from the climate emergency.
However, it also pointed to the " material " rises in employment costs and new charges for the recycling packaging, which both are driven by the government, that were being passed on to the shoppers by the UK supermarkets.
" In addition to that, the global agricultural commodity prices, domestic labour costs are currently an important driver of food price inflation, " the Bank said.
Business leaders have also warned that Reeve's £25 billion increase in employer national insurance contributions ( NICS ) and a 6.7% rise in the " national living age " from April would force them to cut jobs and put up prices. Official figures show that unemployment has crept higher in the recent months, while the economy has shrank in April and May. Inflation has also risen by more than expected, reaching 3.6% in June.
Facing double sided risks to the UK economy from weak growth and yet a mounting inflationary pressures, the split MPC decision in favour of cutting rates was swung by the external economist Alan Taylor. The independent MPC member, who has repeatedly backed deeper cuts in borrowing costs, had first voted for a half point reduction before joining the narrow majority - including Bailey - supporting a quarter point cut.
Exposing tensions at the heart of Threadneedle street, the four other members - including the Bank's chief economist, Huw Pill, and one of its deputy governors, Clare Lombardelli - had voted to keep the rates unchanged.
Inflation has also fallen back substantially in the past two and a half years from a peak of more than 11% during the late 2022, after Russia's invasion onto Ukraine. That progress has allowed the Bank to cut rates. However it is said that the lingering inflationary pressures could delay future rate cuts. " The MPC judges that the upside risks around medium term inflationary pressures have moved slightly higher since May, " it said.
US trade war: The state of play as Trump's country-specific tariffs take effect: Very few US trading partners have done a "deal" to avert the worst of what was threatened, and it looks like there is worse to come as Donald Trump eyes sectoral tariffs on semiconductors and pharmaceuticals.
Currently, Donald Trump's trade war has been difficult to keep up with. For all the threats and bluster of the US election campaign last year to the on off implementation of trade tariffs - and more threats - since he returned to the White House in January, the president's protectionist agenda has been haphazard. Trading partners, exported focused firms, customs agents and even his own trade team have had a lot on their plants as deadlines were imposed - and then they were retracted - in which the tariff numbers have been tinkered with.
While the UK was the first country to secure a truce of sorts, described as a " deal ", the vast majority of nations have failed to secure any agreement. But still, either deal or no deal, no country is on better trading terms with the United States than it was when Trump 2.0 began. As here we will examine what nations and blocks are on the hook for, and the potential consequences, as Donald Trump's suspended " reciprocal " tariffs take effect.
But firstly, we need to understand how we got to this point. To understand, we must go back to early April. During April, Donald Trump proudly showed off a board in the White House Rose Garden containing a list of countries and the tariffs that he announced that would immediately face in retaliation for the rates they impose on US made goods. He called it " liberation day. " The tariff numbers were big and financial markets too fright.
Just days later after he made that announcement and appearance, the president, Donald Trump, announced a 90 day pause in those rates for all countries except for China, to allow for negotiations. The initial deadline of 9th of July was then extended again to the 1st of August. Late on the 31st of July, Donald Trump then signed the executive order but said that the tariff rates would not kick in for an additional seven days to allow for the orders to be fully communicated. Since April, only eight countries or the trading blocs have actually agreed " deals " to limit the reciprocal tariffs and - in some cases - sectoral tariffs already in place.
As of right now, where does the UK currently stand? So far, we've already mentioned that the UK was the first to avert the worst of what was threatened. While a 10% baseline tariff covers the vast majority of the goods we send to the US, aerospace products are exempt. Our steel sector has not been subjected to Trumps insane 50% tariffs and has been facing down to a still high 25% rate. The government announced on Thursday that it would not apply under the terms of a quota system. UK car exports were on a 25% rate until the end of June when the deal agreed in May took that down to 10% under a similar quota arrangement that exempts the first 100,000 cars from a levy.
We've talked about those who have done the deal, now who hasn't done a deal yet? Canada is among one of the big names facing a 35% baseline tariff rate. That is up from 25% and that covers all the goods not subject to a US - Mexico - Canada trade agreement that involves rules of origin. America is its biggest export market, and it has long been in Trump's sights. Mexico is another country that is deeply ingrained in the US supply chain, as it is facing a 30% rate but has been given an extra 90 days to secure a deal. Switzerland has a 39% rate, while Brazil has a crazy 50% rate. For India, it is also 50% . It had been up 25% until this week, but that number was doubled by Donald Trump because India buys Russian Oil on the cheap, helping to fun Vladimir Putin's war machine in Ukraine.
Now is there more to come? Certainly there are additional threats that are set to come. Donald Trump has already said that he wants to impose a 100% tariff rate on all semiconductors and hips made outside the US in a bid to bring production back to America. That risks price hikes to electronics, from laptops to cars. In an interview done with Sky's US partner CNBC, he has also said that the pharmaceutical products made outside the US could ultimately end up facing a tariff rate of up to 250%. Again we have no date for when any of these duties on those duties could take effect.
What are the consequences of these tariff hikes? This is where it all gets a bit clueless - for good reasons. The trade war is unprecedented in scale, given the global nature of the modern business. It takes time for the official statistics to catch up, especially when tariff rates chop and change so much. Any duties on exports to the United States are a threat to company sales and economic growth alike - in both the US and the rest of the world. Many carmakers, for example, have refused to offer guidance on their outlooks for revenue and profits. Apple has warned that last month, US tariffs would add an additional $1.1 billion dollars of costs in the three months to September alone. It has since announce a $100 billion dollar ( £75 billion pounds ) investment in US manufacturing. Barriers to businesses are never good, but the International Monetary Fund has raised it forecasts for global economic growth this year from 2.8% to 3%.
Some of that increase can be explained by the deals involving major economies, including Japan, the EU and the UK. US growth figures have been skewed by the rush to beat import tariffs, but the most recent employment data has signaled significant slowdown in hiring, with a tick upwards in the jobless rate.
While these tariffs take place, are there big risks ahead on every country economies? It's the prospect of another self inflicted wound. The elephant in the room is inflation. Countries imposing duties on their imports force the recipient of those goods to foot the additional bill. Do the buyers swallow it or pass it on? The latest US data contained strong evidence that the tariff charges were now making their way down the country's supply chains, threatening to squeeze American consumers in the months ahead.
It's why the US central bank has been refusing demands from Donald Trump to cut the interest rates. You don't slow the pace of price rises by making the cost of borrowing money cheaper. A prolonged period of higher inflation would not go down well with US businesses or voters. It's why the financial markets have followed a recent trend known as TACO, helping the stock markets remain at record levels. The belief is that " Trump Always Chickens Out, " as he may have to back down if inflation takes off.
However, financial markets now see the prospect of an interest rate cut ahead in September after July's US employment data came in much weaker than expected. It may be that Donald Trump gets his wish for a rate cut after all, due to the effects of his tariffs are having on business confidence. Inflation figures due next week could be crucial in determining the outcome.
Trump announces yet more tariffs and praises 'significant step' from Apple: The US president - who memorably once referred to Tim Cook as Tim Apple - has previously criticised the tech boss and his company after it attempted to avoid his China tariffs by shifting iPhone production to India.
Donald Trump has announced 100% tariffs on computer chips and semiconductors made outside the US.
The move threatens to increase the cost of electronics made outside the US, which covers everything from TVs and video game consoles to kitchen appliances and cars.
No date has been set for when they might come into force. A previously announced hike of tariff rates on a range of global trading partners, ranging from 10% up to beyond 40%, comes into effect today.
Here are Donald Trumps most latest Tariffs:
Afghanistan: 15% Algeria: 30% Angola: 15% Bangladesh: 20% Bolivia: 15%
Bosnia and Herzegovina: 30% Botswana: 15% Brazil: 10% Brunei: 25%
Cambodia: 19% Cameroon: 15% Chad: 15% Costa Rica: 15% Côte d`Ivoire: 15%
Democratic Republic of the Congo: 15% Ecuador: 15% Equatorial Guinea: 15%
European Union: Goods with Column 1 Duty Rate[1] > 15%: 0%
European Union: Goods with Column 1 Duty Rate < 15%: 15% minus Column 1 Duty Rate
Falkland Islands: 10% Fiji: 15% Ghana: 15% Guyana: 15% Iceland: 15% India: 25%
Indonesia: 19% Iraq: 35% Israel: 15% Japan: 15% Jordan: 15% Kazakhstan: 25%
Laos: 40% Lesotho: 15% Libya: 30% Liechtenstein: 15% Madagascar: 15% Malawi: 15%
Malaysia: 19% Mauritius: 15% Moldova: 25% Mozambique: 15% Myanmar (Burma): 40%
Namibia: 15% Nauru: 15% New Zealand: 15% Nicaragua: 18% Nigeria: 15%
North Macedonia: 15% Norway: 15% Pakistan: 19% Papua New Guinea: 15%
Philippines: 19% Serbia: 35% South Africa: 30% South Korea: 15% Sri Lanka: 20%
Switzerland: 39% Syria: 41% Taiwan: 20% Thailand: 19% Trinidad and Tobago: 15%
Tunisia: 25% Turkey: 15% Uganda: 15% United Kingdom: 10% Vanuatu: 15%
Venezuela: 15% Vietnam: 20% Zambia: 15% Zimbabwe: 15%
The announcement of tech tariffs came as Apple chief executive Tim Cook said his company would invest an extra $100 billion dollars ( £74.9 billion pounds ) in US manufacturing. Soon, all smartwatch and iPhone glass around the world will be made in Kentucky, according to Mr Cook, speaking from the Oval Office on Wednesday.
"This is a significant step toward the ultimate goal of ensuring that iPhone's sold in the United States of America are also made in America," said Mr Trump.
Mr Cook also presented the president with a one-of-a-kind trophy made by Apple in the US.
Trump's tariffs hit India hard
Mr Trump has previously criticised Mr Cook and Apple after the company attempted to avoid his tariffs by shifting iPhone production from China to India. The president said he had a "little problem" with Apple and said he'd told Mr Cook: "I don't want you building in India."
India itself felt Mr Trump's wrath on Wednesday, as he issued an executive order hitting the country with an additional 25% tariff for its continued purchasing of Russian oil.
Indian imports into the US will face a 50% tariff from 27 August as a result of the move, as the president seeks to increase the pressure on Russia to end the war in Ukraine.
Speaking in New Delhi hours after the announcement, Narendra Modi, the Indian prime minister, said: "I will have to pay a heavy price for this, but I am ready."
Mr Trump told reporters at the White House he "could" also hit China with more tariffs. The two powers have been in negotiations about extending a pause due to expire next week.
Apple's 'olive branch'
Apple, meanwhile, plans to hire 20,000 people in the US to support its extra manufacturing in the country, which will total $600 billion dollars ( around £449 billion pounds worth of investment over four years. )
The "vast majority" of those jobs will be focused on a new end-to-end US silicon production line, research and development, software development, and artificial intelligence, according to the company.
Apple's investment in the US caused the company's stock price to hike by nearly 6% in Wednesday's midday trading.
The rise may reflect relief by investors that Mr Cook "is extending an olive branch" to Mr Trump, said Nancy Tengler, chief executive of money manager Laffer Tengler Investments, which owns Apple stock.
Those are some news that I found interesting today throughout Bing and Google. These news mainly prioritized on the current economic stance in our modern world. I hope over time I should be able to adapt and learn to make these more shorter, summarized and hopefully, more informative. Thank you for reading.
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