Starmer Says US Not Targeting Steel Ownership in Trade Talks
By and Ellen Milligan
Updated on
Save
The UK does not need to push out British Steel's Chinese owners in order to cut a deal to reduce US tariffs on steel, Prime Minister Keir Starmer said.
Speaking to journalists at the G7 summit in Canada, Starmer said there was 'further work to do in relation to steel' in negotiations with President Donald Trump but that 'doesn't require us to change the ownership of British Steel.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Nervy markets await Fed as Mideast conflict rages on
By Rae Wee SINGAPORE (Reuters) -Concerns over escalating hostilities in the Middle East stayed front and centre in markets on Wednesday, sending oil prices higher and investors rushing for the safety of U.S. Treasuries and the dollar while dumping stocks. Investors have grown increasingly nervous over the possibility of a more direct U.S. military involvement as the Israel-Iran air war entered a sixth day, with President Donald Trump calling for Iran's unconditional surrender and warning U.S. patience was wearing thin. "Clearly the Middle East issues have not been solved, and comments by President Trump just mean that things could get more dangerous in that part of the world," said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia (CBA). "The markets are trying to figure out that risk of a big U.S. military intervention. It's hard to say exactly what the market is thinking, but judging by the oil price and currencies, they're certainly pricing in at least some risk that something goes very bad there." Oil prices extended their climb on Wednesday, with Brent crude futures up 0.33% to $76.70 per barrel while U.S. crude rose 0.45% to $75.18 a barrel. Both had jumped more than 4% in the previous session. The broad risk-off moves across markets also continued to gather pace. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.26% as did EUROSTOXX 50 futures, which declined 0.4%. U.S. stock futures were little changed after the cash session on Wall Street ended in the red overnight. In currencies, the dollar firmed at a one-week high of 145.445 yen and held to most of its gains against other peers. The euro struggled to recover from its 0.7% fall on Tuesday, and last bought $1.1487. Sterling edged slightly higher to $1.3435, having slid 1.1% in the previous session. The spike in oil prices is a negative for the yen and euro at the margin as both Japan and the EU are major importers of energy, while the United States is an exporter. "The war has demonstrated that the U.S. dollar still retains a bit of haven status in certain situations, such as when the war is seen to raise the risk of disrupting global oil supply, and when the war diverts traders' attention away from those risks that are U.S.-centric," said Thierry Wizman, global FX and rates strategist at Macquarie Group. FED OUTCOME The conflict in the Middle East, combined with prolonged uncertainty over Trump's tariffs and signs of fragility in the U.S. economy, make for a challenging backdrop ahead of the Federal Reserve's policy decision later on Wednesday. U.S. retail sales fell by a more-than-expected 0.9% in May, data showed on Tuesday, marking the biggest drop in four months. Expectations are for the Fed to stand pat on rates, though focus will also be on the central bank's updated projections for the economy and the benchmark interest rate. "We do not anticipate much novelty from the Fed," said Erik Weisman, chief economist at MFS Investment Management. "The only area of interest may come from the new set of forecasts under the Summary of Economic Projections, which may point to slightly slower growth, combined with slightly higher inflation." U.S. Treasury yields were steady in Asia after falling on Tuesday, as investors scooped up the safe-haven bonds in the wake of latest developments in the Israel-Iran conflict. Bond yields move inversely to prices. The benchmark 10-year yield was last at 4.4027%, having fallen roughly 6 basis points in the previous session. The two-year yield stood at 3.9581%. [US/] Elsewhere, spot gold eased 0.12% to $3,384.73 an ounce. [GOL/] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 minutes ago
- Yahoo
US Fed set to hold rates steady as it guards against inflation
The US central bank is expected to hold interest rates steady Wednesday after its key policy meeting, as officials gauge the impact of tariffs on inflation -- and despite President Donald Trump's calls for rate cuts. The Federal Reserve has kept the benchmark lending rate unchanged this year at a range between 4.25 percent and 4.50 percent, and analysts expect policymakers will remain on the sidelines until price increases cool sustainably. While Trump has imposed a 10 percent tariff on most US trading partners and steeper levies on imports of steel, aluminum and autos in recent months, these have not triggered a price surge so far. This is partly because Trump has backed off or postponed some of his most punishing salvos, while businesses in turn have relied on existing inventory to avoid hiking consumer costs immediately. In May, the consumer price index edged up to 2.4 percent on-year from 2.3 percent in April, underscoring the limited effect of levies for now. But economists expect it will take several months for tariffs to flow into consumer prices, and the Fed is proceeding cautiously with interest rate adjustments. "The Fed would no doubt be cutting again by now if not for the uncertainty regarding tariffs and a recent escalation of tensions in the Middle East," said KPMG senior economist Benjamin Shoesmith. The prospect of higher inflation will probably keep the central bank in "wait-and-see mode for much of this year," he added in a note. Officials will want to see "if those factors trigger more than a transitory increase in prices," he said. Beyond inflation data, policymakers are also trying to keep expectations "anchored," a state in which consumers expect price increases to remain low and steady. If there are widespread expectations of price hikes, inflation could rise as businesses increase customer costs and workers seek higher wages. On Wednesday, the Fed is also due to release its latest economic projections on growth, unemployment and inflation. Analysts will monitor if the Fed still expects to make two more rate cuts this year as well. - 'Saber-rattling' - For his part, Trump has repeatedly urged the independent central bank to slash rates, calling Fed Chair Jerome Powell "too late" in doing so and "a fool" for holding off further cuts at the bank's May meeting. Trump has pointed to benign US inflation in arguing for interest rate cuts. More recently, he also cast such a move as a way for the country to "pay much less interest on debt coming due," overlooking the fact that lower interest rates usually raise consumer prices. Powell however has maintained that the Fed's rate-setting committee would make its decisions based solely on objective and non-political analysis, the Fed previously said. The Fed chair has also defended US central bank independence over rates in his recent meeting with Trump. Despite Trump's pressure, Allianz Trade North America senior economist Dan North expects Powell will not be too shaken by "saber-rattling." "Consumers are still spending, labor markets still creating jobs, although it is in fact slowing a little bit," North told AFP. "Certainly, the health of the economy doesn't beg for the Fed to cut rates," he added. "So we think they're on hold till the end of the year." myl-bys/dw Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 minutes ago
- Yahoo
UK inflation set to cool as prices settle following April bill rises
UK inflation is set to have slowed last month as prices settled following 'awful April' bill rises, economists have suggested. The rate of Consumer Prices Index (CPI) inflation is expected to have fallen to 3.3% in May, from 3.5% in April, according to a consensus of analysts. Since releasing the data, the Office for National Statistics (ONS) said that an error in vehicle tax data collected meant April's CPI rate should have been 3.4% – but that it was not revising the official figure. A decline would mean prices were still rising in May, but at a slower rate than in April when a raft of bills increased for households up and down the country. The energy price cap, set by regulator Ofgem, rose by 6.4% in April, resulting in bills for a typical household rising by £9.25 a month. Steep increases to water charges, and rises for council tax, mobile and broadband tariffs, and TV licences were among those to take effect. This means that economists are expecting price rises to have settled in May, resulting in a slowdown in the overall inflation rate. Meanwhile, Sanjay Raja, senior economist for Deutsche Bank, said he was expecting inflation across transport services to have eased last month following a jump during the Easter holidays in April. He forecast a fall in the price of airfares in May, compared with April, as well as some train and coach travel costs, while package holiday prices are also set to retreat following a monthly rise. On the other hand, Mr Sanjay said food inflation is set to 'pick up steam' in May, particularly due to rising fresh food prices, while he is also anticipating increases to clothing and furniture prices following Easter sales. Meanwhile, oil prices have been rising in recent days since Israel launched an attack on Iran's nuclear programme, raising concerns that the supply of crude from the Middle East could be disrupted. Rising oil prices could threaten to push up inflation in the UK. Energy costs coming down has been one of the biggest contributors to overall inflation falling from the peaks hit during the cost-of-living crisis. The ONS will publish its latest inflation data on Wednesday.
