The Weekend: Food inflation dampens hopes of a rate cut as tariff twists and turns continue
The twists and turns in the tariffs saga just kept coming this week. Things started on a positive note when president Trump said he would delay imposing a 50% tariff on goods from the European Union, extending trade negotiations with the bloc.
Then on Wednesday came the shock news that a US trade court had declared most of his import duties on international trade partners illegal. The Manhattan-based court ruled that the law Trump's team had used to unilaterally impose the wide-ranging levies did not in fact give him licence to do so.
The ruling did not include sectoral levies, such as those on steel and aluminium, and by the end of the week the US president had vowed to double these to an eye-watering 50%.
Nvidia (NVDA) became the world's most valuable listed company again this week as insatiable demand for its world-leading AI semiconductors pushed its share price clear of Apple's (AAPL) and Microsoft's (MSFT). The chip maker's stock got a boost when quarterly revenues surged almost 70% to just over $44 billion, ahead of estimates.
That performance was particularly impressive in light of Donald Trump's restrictions on Nvidia's exports to the Chinese market, which cost the company $4.5 billion in the three-month period.
On this side of the Atlantic, there was some bad news for chancellor Rachel Reeves and the Bank of England as May's food inflation reading came in higher than expected at 2.8%.
Let's look at some of these and other events that moved markets in the lest few days.
The duties that may be affected by the US trade court's tariff block
A stunning decision on Wednesday from the US Court of International Trade appeared to put at least a temporary pause on many of President Trump's wide-ranging tariffs.
Many of the his actions exceeded his authority under the International Emergency Economic Powers Act (IEEPA) to regulate importation by means of tariffs," the three-judge panel ruled.
Under appeal, the matter is likely to head to the US Court of Appeals before making its way to the Supreme Court.
Our US team explained the scope of the court's ruling.
Odds of more BoE interest rate cuts fall as food inflation rises
The central bank's job got a little more complicated this week when food inflation came in at the highest in a year after a fourth monthly consecutive increase in May. Fresh foods and red meats were among the main drivers of the 2.8% annual gain in prices – up from 2.6% a month earlier.
'The UK environment is more inflationary than before the pandemic. Only one more rate cut this year looks fair,' said Robert Wood and Elliott Jordan-Doak at Pantheon Macroeconomics.
Tesla stock higher as robotaxi 'golden age' dawns, Musk officially departs D.C.
Tesla (TSLA) stock got a brief boost after two big pieces of news: a reported start date for robotaxi testing and CEO Elon Musk's official departure from government.
The electric carmaker reportedly brought forward the launch of its robotaxi service in Austin, Texas to 12 June.
Musk and Tesla have bet the future of the company on self-driving and the ability for its cars to perform robotaxi services. Tesla's dedicated robotaxi — the Cybercab — is slated for a 2026 launch as well.
In a post on X on Wednesday night, Musk revealed that his time in Washington was coming to an end, delighting investors whom he had already promised his return to a 24/7 commitment to his businesses.
Government 'megafund' pension plans could give £6k boost to savers
Under reforms set to be introduced through the Pension Schemes Bill, the UK government said multi-employer defined contribution and local government schemes will pool to operate at megafund level, managing at least £25bn in assets by 2030.
Based on the experiences of Australia and Canada, this would help drive more than £50bn in investment for UK infrastructure, new homes and fast-growing businesses, the government said.
According to the Treasury, these schemes could save £1bn a year by 2030 through economies of scale and improved investment strategies, handing the average earner a £6,000 boost to their defined contribution pension pot.
Turning to all things personal finance, now.
Your 70s are your new 50s, according to the IMF, which put forward the case for people to extend their careers. Better mental agility and physical fitness levels mean older employees are in a good position to work longer to build up their pension pots and help address a growing imbalance between the number of workers and retirees. Our columnist Sarah Coles delved into this contentious issue: Should people keep working until later in life?
With the average price of a summer holiday soaring, more and more people are opting to take their kids out of school for a term-time break overseas. The number of fines issued for these 'unauthorised absences' are at an all-time high, but for some struggling families it's worth the hit because the saving on peak-rate travel costs outweighs the penalty: Real cost of a 2025 summer holiday as families priced out or fined
Find more personal finance gems here: Money Matters
Tariffs remain in focus as earnings season continues to wind down, but there are still a number of key companies due to report in the coming week.
On the back of a strong set of results from chipmaking giant Nvidia (NVDA), attention will now turn to rival Broadcom (AVGO), which is due to report on Thursday.
Athletics wear company Lululemon (LULU) is also due to report on Thursday, with focus on its outlook for the current year, after guidance offered at the end of the last financial year failed to impress investors.
In London, investors will want to see if British American Tobacco (BATS.L) has continued to generate sales growth from its new categories business, which includes vapes and heated products.
Investors will also be keen to see how Dr Martens (DOCS.L) turnaround efforts are progressing when the iconic bootmaker reports its full-year results on Thursday.
Read more: Stocks to watch next week
Turning to economic data now. The UK's property market will come into focus on Monday with data on mortgage approvals and the Nationwide house price index slated for release. Look out for eurozone inflation numbers on Tuesday.
Thursday sees important releases from the US, including import and export figures and jobless claims.
On Friday, there's another gauge of UK property prices, this time courtesy of Halifax, then a slew of closely watched eurozone indicators: retail sales, employment and GDP growth.
And finally, archeologists in Egypt have me contemplating humankind's innate desire to leave a mark on this world. The three entombed men discovered this week in Luxor each held important roles in ancient Egypt's temples and grain silos.
This news also threw me back to this slightly less ancient Frank Ocean classic from 2012. Hope it kick-starts your weekend too.
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For some small businesses, the last week brought even more twists and turns to the past two months of President Donald Trump's chaotic tariffs. The situation was already confusing, with stops and starts of tariffs at different levels. Then on Wednesday, a US court said Trump overstepped his authority in imposing most of those import levies – only for an appeals court on Thursday to pause the previous court's ruling. The confusion has made it challenging for some small companies to plan, business owners told CNN. In certain cases, they have had to consider changing their product strategy, looking into shifting their supply chains, reducing staff hours or delaying products. 'My fear is, if this continues, there's going to be like the mass extinction of small businesses,' Julie Robbins, CEO of Ohio-based guitar pedal maker EarthQuaker Devices, told CNN. Trump announced blanket tariffs across the globe on April 2, and since then, his plans have changed on a regular basis. 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The National Federation of Independent Business Small Business Optimism Index fell by 1.6 points in April, dipping below the 51-year average for the second consecutive month. The organization's chief economist, Bill Dunkelberg, cited uncertainty as a 'major impediment' for small business owners in a press release. 'It's the sort of more smaller, kind of more niche… brands that are going to really, really get hit by this,' Jack Leathem, an analyst at market research firm Canalys, told CNN in April. Some small business owners have had to make difficult decisions as they've grappled with the impact of tariffs. EveAnna Manley, whose company Manley Labs makes high-end electronics for recording studios, has had to cut her employees' hours by 25%. The reciprocal tariffs that China imposed on the US have been particularly challenging, she says, since China has become a major market for her business. Manley says it took 'decades' for her to 'get the best Chinese importers.' 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