logo
Trump calls for 'food and safety' in Gaza as he hosts Starmer

Trump calls for 'food and safety' in Gaza as he hosts Starmer

The National28-07-2025
Donald Trump and Keir Starmer discussed Gaza at a series of meetings at the US leader's golf resorts in Scotland on Monday.
The US leader said food and safety must now be the priority as the conflict drags on with ceasefire talks at an impasse.
The crisis in Gaza is a key subject for the two leaders with talks also expected to include the bilateral trade deal and the efforts to end the Ukraine war.
The American president said he told Israeli Prime Minster Benjamin Netanyahu that the fight in Gaza against the Hamas militant group would have to conducted in a different way after talks on a ceasefire and hostage release fell apart last week.
UK officials said Mr Starmer had developed a plan for peace in Gaza that prioritised deliveries immediate humanitarian aid shipments into the war zone as well as charting a path to a two-state solution.
Mr Starmer hopes to promote a UK-led plan 'in the coming days' with his cabinet and with other international allies, including Arab states.
The prime minister's spokesman added that it was a matter of 'when, not if' the UK recognises Palestine as a state, but that it must be one of the steps along a pathway to peace.
The pair met at Mr Trump's luxury golf resort in Turnberry, on Scotland's west coast, before travelling on together later to a second championship estate owned by Trump in the east, near Aberdeen.
Hundreds of police officers were guarding the perimeter of the Turnberry course and the beach that flanks it, with a helicopter hovering overhead, although there was no sign of protesters outside the course.
President Trump, riding high after announcing a huge trade agreement with the European Union late on Sunday, said he expected Starmer would also be pleased with the US-EU agreement. "The prime minister of the UK, while he's not involved in this, will be very happy because you know, there's a certain unity that's been brought there, too," Mr Trump said. "He's going to be very happy to see what we did."
Mr Starmer had hoped to negotiate a drop in U.S. steel and aluminium tariffs as part of the talks, but Trump on Sunday ruled out any changes in the 50 per cent steel and aluminium duties for the EU, and has said the trade deal with Britain is "concluded" though British officials are pressing for more access to those US markets.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump may look like he's winning the trade war, but hurdles remain
Trump may look like he's winning the trade war, but hurdles remain

Khaleej Times

timean hour ago

  • Khaleej Times

Trump may look like he's winning the trade war, but hurdles remain

At a glance, U.S. President Donald Trump appears to be winning the trade war he unleashed after returning to the White House in January, bending major trading partners to his will, imposing double-digit tariff rates on nearly all imports, narrowing the trade deficit, and raking in tens of billions of dollars a month in much-needed cash for federal government coffers. Significant hurdles remain, however, including whether U.S. trading partners will make good on investment and goods-purchase commitments, how much tariffs will drive up inflation or stymie demand and growth, and whether the courts allow many of his ad-hoc levies to stand. On inauguration day, the effective U.S. tariff rate was about 2.5%. It has since jumped to somewhere between 17% and 19%, according to a range of estimates. The Atlantic Council estimates it will edge closer to 20%, the highest in a century, with higher duties taking effect on Thursday. Trading partners have largely refrained from retaliatory tariffs, sparing the global economy from a more painful tit-for-tat trade war. Data on Tuesday showed a 16% narrowing of the U.S. trade deficit in June, while the U.S. trade gap with China shrank to its smallest in more than 21 years. American consumers have shown themselves to be more resilient than expected, but some recent data indicate the tariffs are already affecting jobs, growth and inflation. "The question is, what does winning mean?" said Josh Lipsky, who heads economic studies at the Atlantic Council. "He's raising tariffs on the rest of the world and avoiding a retaliatory trade war far easier than even he anticipated, but the bigger question is what effect does that have on the U.S. economy." Michael Strain, head of economic policy studies at the conservative American Enterprise Institute, said Trump's geopolitical victories could prove hollow. "In a geopolitical sense, Trump's obviously getting tons of concessions from other countries, but in an economic sense, he's not winning the trade war," he said. "What we're seeing is that he is more willing to inflict economic harm on Americans than other countries are willing to inflict on their nations. And I think of that as losing." Kelly Ann Shaw, a White House trade adviser during Trump's first term who is now a partner at Akin Gump Strauss Hauer Feld, said a still-strong economy and near-record-high stock prices "support a more aggressive tariff strategy." But Trump's tariffs, tax cuts, deregulation and policies to boost energy production would take time to play out. "I think history will judge these policies, but he is the first president in my lifetime to make major changes to the global trading system," she added. Deals so far Trump has concluded eight framework agreements with the European Union, Japan, Britain, South Korea, Vietnam, Indonesia, Pakistan and the Philippines that impose tariffs on their goods ranging from 10% to 20%. That's well short of the "90 deals in 90 days" administration officials had touted in April, but they account for some 40% of U.S. trade flows. Adding in China, currently saddled with a 30% levy on its goods but likely to win another reprieve from even higher tariffs before an August 12 deadline, would raise that to nearly 54%. Deals aside, many of Trump's tariff actions have been mercurial. On Wednesday he ratcheted up pressure on India, doubling new tariffs on goods from there to 50% from 25% because of its imports of oil from Russia. The same rate is in store for goods from Brazil, after Trump complained about its prosecution of former leader Jair Bolsonaro, a Trump ally. And Switzerland, which Trump had previously praised, is facing 39% tariffs after a conversation between its leader and Trump derailed a deal. Ryan Majerus, a trade lawyer who worked in both the first Trump administration and the Biden government, said what's been announced so far fails to address "longstanding, politically entrenched trade issues" that have bothered U.S. policymakers for decades, and getting there would likely take "months, if not years." He also noted they lack specific enforcement mechanisms for the big investments announced, including $550 billion for Japan and $600 billion for the EU. Promises and risks Critics lit into European Commission President Ursula von der Leyen after she agreed to a 15% tariff during a surprise meeting with Trump during his trip to Scotland last month, while gaining little in return. The deal frustrated winemakers and farmers, who had sought a zero-for-zero tariff. Francois-Xavier Huard, head of France's FNIL national dairy sector federation, said 15% was better than the threatened 30%, but would still cost dairy farmers millions of euros. European experts say von der Leyen's move did avert higher tariffs, calmed tensions with Trump, averting potentially higher duties on semiconductors, pharmaceuticals and cars, while making largely symbolic pledges to buy $750 billion of U.S. strategic goods and invest over $600 billion. Meeting those pledges will fall to individual EU members and companies, and cannot be mandated by Brussels, trade experts and analysts note. U.S. officials insist Trump can re-impose higher tariffs if he believes the EU, Japan or others are not honoring their commitments. But it remains unclear how that would be policed. And history offers a caution. China, with its state-run economy, never met its modest purchase agreements under Trump's Phase 1 U.S.-China trade deal. Holding it to account proved difficult for the subsequent Biden administration. "All of it is untested. The EU, Japan and South Korea are going to have to figure out how to operationalize this," Shaw said. "It's not just government purchases. It's getting the private sector motivated to either make investments or back loans, or to purchase certain commodities." And lastly, the main premise for the tariffs Trump has imposed unilaterally faces legal challenges. His legal team met with stiff questioning during appellate court oral arguments over his novel use of the 1977 International Emergency Economic Powers Act, historically used for sanctioning enemies or freezing their assets, to justify his tariffs. A ruling could come any time and regardless of the outcome seems destined to be settled ultimately by the Supreme Court.

Bank of England cuts rates to 4% after narrow 5-4 vote
Bank of England cuts rates to 4% after narrow 5-4 vote

Zawya

timean hour ago

  • Zawya

Bank of England cuts rates to 4% after narrow 5-4 vote

The Bank of England cut interest rates on Thursday but four of its nine policymakers - worried about high inflation - sought to keep borrowing costs on hold, suggesting the BoE's run of rate cuts might be nearing an end. The contrasting views of the BoE's top officials meant the Monetary Policy Committee held two votes for the first time since it was created in 1997 in order to reach a decision. With the MPC facing the conflicting risks posed by an inflation rate that the BoE forecasts will soon be double its 2% target and a worsening of job losses, Governor Andrew Bailey and four colleagues backed lowering Bank Rate to 4% from 4.25%. But that was only after a first round of voting ended in a 4-4-1 split, with external MPC member Alan Taylor initially backing a half-point cut. "It remains important that we do not cut Bank Rate too quickly or by too much," Bailey told a press conference after the decision, highlighting that the rise in inflation was expected to be short-lived. "We stand ready to adjust our course if we see shifts in the balance of risk to the medium-term outlook for inflation." The four members of the MPC who backed keeping rates on hold included Clare Lombardelli, the deputy governor for monetary policy, who broke from the majority for the first time. Chief Economist Huw Pill also voted to keep Bank Rate at 4.25%. British short-term government bond yields rose sharply and stocks fell after the announcement. Sterling jumped by about half a cent against the U.S. dollar. Investors trimmed their bets on the possibility of another BoE rate cut by the end of 2025 and were only fully pricing in a cut to 3.75% in February next year, according to data from LSEG. "The close vote split and the minutes of the meeting underscore the division on the MPC," KPMG UK's chief economist Yael Selfin said. "The division reflects the two-sided risks to the inflation outlook and the uncertainty under which policymakers are operating." Selfin said she expected one final BoE rate cut in November. The central bank repeated its guidance about "a gradual and careful approach" to further cuts in borrowing costs but added a new line to its message on the outlook. "The restrictiveness of monetary policy had fallen as Bank Rate had been reduced," it said. It repeated that there was no pre-set path for borrowing costs. A halt to the process of cutting rates would be a blow for finance minister Rachel Reeves and Prime Minister Keir Starmer, who have struggled to meet their promise to voters to speed up Britain's slow economic growth. Bailey said rates were still on a downward path but added there was "genuine uncertainty now about the course of that direction of rates ... I think that the path has become more uncertain." James Smith, an economist with ING, said he still thought the next rate cut would come in November. "But were the next couple of inflation reports to surprise to the upside, or if the recent falls in private-sector employment start to ease off, then we'll be rethinking," he added. CONFLICTING RISKS The BoE is being pulled in different directions, leaving analysts as well as its own policymakers divided on its most likely moves in the coming months. Britain's jobs market has weakened in recent months, in part due to a tax hike by Reeves on employers and U.S. President Donald Trump's trade war. But inflation is rising. The BoE revised up its forecast for a peak in inflation to 4% in September from 3.7% and said it would remain alert to the risk that rising prices - especially for food - could push up wage deals and longer-term price pressures. "Overall, the MPC judges that the upside risks around medium-term inflationary pressures have moved slightly higher since May," the summary of the meeting said. The BoE said it expected inflation to return to its 2% target only in the second quarter of 2027, three months later than its previous forecast. By contrast, the European Central Bank expects inflation in the euro zone to hold below 2%. It has cut borrowing costs eight times since June of last year, three more reductions than those of the BoE. Inflation has been above the BoE's 2% target almost constantly since May 2021. It said on Thursday that it expected economic growth of 0.3% in the July-to-September period, up from 0.1% in the second quarter. Longer-term growth forecasts were little changed from its report in May, with annual growth of just over 1% expected in the coming years. (Writing by William Schomberg; Editing by Catherine Evans)

Bank of England cuts rates to 4% after narrow 5-4 vote
Bank of England cuts rates to 4% after narrow 5-4 vote

Khaleej Times

timean hour ago

  • Khaleej Times

Bank of England cuts rates to 4% after narrow 5-4 vote

The Bank of England cut interest rates on Thursday but four of its nine policymakers - worried about high inflation - sought to keep borrowing costs on hold, suggesting the BoE's run of rate cuts might be nearing an end. The contrasting views of the BoE's top officials meant the Monetary Policy Committee held two votes for the first time since it was created in 1997 in order to reach a decision. With the MPC facing the conflicting risks posed by an inflation rate that the BoE forecasts will soon be double its 2% target and a worsening of job losses, Governor Andrew Bailey and four colleagues backed lowering Bank Rate to 4% from 4.25%. But that was only after a first round of voting ended in a 4-4-1 split, with external MPC member Alan Taylor initially backing a half-point cut. "It remains important that we do not cut Bank Rate too quickly or by too much," Bailey told a press conference after the decision, highlighting that the rise in inflation was expected to be short-lived. "We stand ready to adjust our course if we see shifts in the balance of risk to the medium-term outlook for inflation." The four members of the MPC who backed keeping rates on hold included Clare Lombardelli, the deputy governor for monetary policy, who broke from the majority for the first time. Chief Economist Huw Pill also voted to keep Bank Rate at 4.25%. British short-term government bond yields rose sharply and stocks fell after the announcement. Sterling jumped by about half a cent against the U.S. dollar. Investors trimmed their bets on the possibility of another BoE rate cut by the end of 2025 and were only fully pricing in a cut to 3.75% in February next year, according to data from LSEG. "The close vote split and the minutes of the meeting underscore the division on the MPC," KPMG UK's chief economist Yael Selfin said. "The division reflects the two-sided risks to the inflation outlook and the uncertainty under which policymakers are operating." Selfin said she expected one final BoE rate cut in November. The central bank repeated its guidance about "a gradual and careful approach" to further cuts in borrowing costs but added a new line to its message on the outlook. "The restrictiveness of monetary policy had fallen as Bank Rate had been reduced," it said. It repeated that there was no pre-set path for borrowing costs. A halt to the process of cutting rates would be a blow for finance minister Rachel Reeves and Prime Minister Keir Starmer, who have struggled to meet their promise to voters to speed up Britain's slow economic growth. Bailey said rates were still on a downward path but added there was "genuine uncertainty now about the course of that direction of rates ... I think that the path has become more uncertain." James Smith, an economist with ING, said he still thought the next rate cut would come in November. "But were the next couple of inflation reports to surprise to the upside, or if the recent falls in private-sector employment start to ease off, then we'll be rethinking," he added. Conflicting risks The BoE is being pulled in different directions, leaving analysts as well as its own policymakers divided on its most likely moves in the coming months. Britain's jobs market has weakened in recent months, in part due to a tax hike by Reeves on employers and U.S. President Donald Trump's trade war. But inflation is rising. The BoE revised up its forecast for a peak in inflation to 4% in September from 3.7% and said it would remain alert to the risk that rising prices - especially for food - could push up wage deals and longer-term price pressures. "Overall, the MPC judges that the upside risks around medium-term inflationary pressures have moved slightly higher since May," the summary of the meeting said. The BoE said it expected inflation to return to its 2% target only in the second quarter of 2027, three months later than its previous forecast. By contrast, the European Central Bank expects inflation in the euro zone to hold below 2%. It has cut borrowing costs eight times since June of last year, three more reductions than those of the BoE. Inflation has been above the BoE's 2% target almost constantly since May 2021. It said on Thursday that it expected economic growth of 0.3% in the July-to-September period, up from 0.1% in the second quarter. Longer-term growth forecasts were little changed from its report in May, with annual growth of just over 1% expected in the coming years.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store