
The UK's Great Water Experiment Has Failed
Jon Cunliffe, former deputy governor of the Bank of England, seems to agree. A key recommendation of the Independent Water Commission that he chairs is to give a future combined industry regulator the power to block changes of ownership, set leverage levels and, in some circumstances, to give direction to the ultimate controller of the company. Such powers are 'necessary guardrails' in water, he said this week, presenting the conclusions of the commission's 464-page final report. For some critics, its proposed overhaul doesn't go far enough; all the same, the significance of the shift in regulatory philosophy shouldn't be underestimated.
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Yahoo
an hour ago
- Yahoo
US and China to talk in Stockholm on trade with eye on Trump-Xi summit later this year
WASHINGTON (AP) — When top U.S. and Chinese officials meet in Stockholm, they are almost certain to agree to at least leaving tariffs at the current levels while working toward a meeting between their presidents later this year for a more lasting trade deal between the world's two largest economies, analysts say. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to hold talks for the third time this year — this round in the Swedish capital, nearly four months after President Donald Trump upset global trade with his sweeping tariff proposal, including an import tax that shot up to 145% on Chinese goods. 'We have the confines of a deal with China,' Trump said Friday before leaving for Scotland. Bessent told MSNBC on Wednesday that the two countries after talks in Geneva and London have reached a 'status quo,' with the U.S. taxing imported goods from China at 30% and China responding with a 10% tariff, on top of tariffs prior to the start of Trump's second term. 'Now we can move on to discussing other matters in terms of bringing the economic relationship into balance,' Bessent said. He was referring to the U.S. running a $295.5 billion trade deficit last year. The U.S. seeks an agreement that would enable it to export more to China and shift the Chinese economy more toward domestic consumer spending. The Chinese embassy in Washington said Beijing hopes 'there will be more consensus and cooperation and less misperception' coming out of the talks. With an eye on a possible leaders' summit, Stockholm could provide some answers as to the timeline and viability of that particular goal ahead of a possible meeting between Trump and Chinese leader Xi Jinping. 'The meeting will be important in starting to set the stage for a fall meeting between Trump and Xi,' said Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute. 'Beijing will likely insist on detailed preparations before they agree to a leaders' meeting.' In Stockholm, the two sides are likely to focus on commercial announcements to be made at a leaders' summit as well as agreements to address 'major irritants,' such as China's industrial overcapacity and its lack of control over chemicals used to make fentanyl, also to be announced when Xi and Trump should meet, Cutler said. Sean Stein, president of the U.S.-China Business Council, said Stockholm could be the first real opportunity for the two governments to address structural reform issues including market access in China for U.S. companies. What businesses will be seeking coming out of Stockholm would largely be 'the atmosphere' — how the two sides characterize the discussions. They will also look for clues about a possible leaders' summit because any real deal will hinge on the two presidents meeting each other, he said. Fentanyl-related tariffs are likely a focus for China In Stockholm, Beijing will likely demand the removal of the 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. This round of the U.S.-China trade dispute began with fentanyl, when Trump in February imposed a 10% tariff on Chinese goods, citing that China failed to curb the outflow of the chemicals used to make the drug. The following month, Trump added another 10% tax for the same reason. Beijing retaliated with extra duties on some U.S. goods, including coal, liquefied natural gas, and farm products such as beef, chicken, pork and soy. In Geneva, both sides climbed down from three-digit tariffs rolled out following Trump's 'Liberation Day' tariffs in April, but the U.S. kept the 20% 'fentanyl' tariffs, in addition to the 10% baseline rate — to which China responded by keeping the same 10% rate on U.S. products. These across-the-board duties were unchanged when the two sides met in London a month later to negotiate over non-tariff measures such as export controls on critical products. The Chinese government has long protested that American politicians blame China for the fentanyl crisis in the U.S. but argued the root problem lies with the U.S. itself. Washington says Beijing is not doing enough to regulate precursor chemicals that flow out of China into the hands of drug dealers. In July, China placed two fentanyl ingredients under enhanced control, a move seen as in response to U.S. pressure and signaling goodwill. Gabriel Wildau, managing director at the consultancy Teneo, said he doesn't expect any tariff to go away in Stockholm but that tariff relief could be part of a final trade deal. 'It's possible that Trump would cancel the 20% tariff that he has explicitly linked with fentanyl, but I would expect the final tariff level on China to be at least as high as the 15-20% rate contained in the recent deals with Japan, Indonesia, Vietnam,' Wildau said. US wants China to dump less, buy less oil from Russia and Iran China's industrial overcapacity is as much a headache for the United States as it is for the European Union. Even Beijing has acknowledged the problem but suggested it might be difficult to address. America's trade imbalance with China has decreased from a peak of $418 billion in 2018, according to the Census Bureau. But China has found new markets for its goods and as the world's dominant manufacturer ran a global trade surplus approaching $1 trillion last year — somewhat larger than the size of the U.S. overall trade deficit in 2024. And China's emergence as a manufacturer of electric vehicles and other emerging technologies has suddenly made it more of a financial and geopolitical threat for those same industries based in the U.S., Europe, Japan and South Korea. 'Some enterprises, especially manufacturing enterprises, feel more deeply that China's manufacturing capabilities are too strong, and Chinese people are too hardworking. Factories run 24 hours a day,' Chinese Premier Li Qiang said on Thursday when hosting European Commission President Ursula von der Leyen in Beijing. 'Some people think this will cause some new problems in the balance of supply and demand in world production.' 'We see this problem too,' Li said. Bessent also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil. However, Wildau of Teneo said China could demand some U.S. security concessions in exchange, such as a reduced U.S. military presence in East Asia and scaled-back diplomatic support for Taiwan and the Philippines. This would likely face political pushback in Washington. The Stockholm talks will be 'geared towards building a trade agreement based around Chinese purchase commitments and pledges of investment in the U.S. in exchange for partial relief from U.S. tariffs and export controls,' Wildau said. He doubts there will be a grand deal. Instead, he predicts 'a more limited agreement based around fentanyl.' 'That,' he said, 'is probably the preferred outcome for China hawks in the Trump administration, who worry that an overeager Trump might offer too much to Xi.' ___ Associated Press writer Paul Wiseman contributed to this report Sign in to access your portfolio


Bloomberg
an hour ago
- Bloomberg
Oil Steadies as EU Agrees to US Trade Deal Ahead of Deadline
Oil steadied after the US and European Union agreed on a trade deal ahead of President Donald Trump's tariff deadline of Aug. 1. Brent was above $68 a barrel after closing 1.1% lower on Friday, and West Texas Intermediate traded near $65. The bloc faces 15% levies on most of its exports, although Trump and European Commission President Ursula von der Leyen appeared to differ on some key details of the agreement.
Yahoo
an hour ago
- Yahoo
Serious concerns raised over how Welsh Government bought £4.25m farm
Serious concerns have been raised about how the Welsh Government bought a piece of land which has dropped in value by half a million pounds. The government bought Gilestone Farm in Powys in 2022 as part of a deal with Green Man Festival for it to be a base for its operations. However, in 2023 protected species - a pair of ospreys - were seen on the land. A 750-metre restriction zone around their nest was set up to protect the birds, who have since returned and laid an egg, with an admission made that 'the presence of the ospreys on the site inevitably brings some uncertainty." The land was purchased in 2022 for £4.25m, and earlier this year the Welsh Government confirmed that its valuation had dropped to £3.75m. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here. READ MORE: I abandoned my life in London for Wales. I thought I was living the dream but was totally burnt-out READ MORE: Welsh pub can't find a new landlord so it's being turned into flats A 2023 Audit Wales review looking at the farm purchase found ministers acted with "avoidable haste" as an underspend fuelled a rush to make a decision on the £4.25m purchase before the financial year's end. Now, the Senedd's Public Accounts and Public Administration Committee has published a report which claims the purchase of Gilestone Farm was 'rushed due to end-of-year budget pressures'. The report, published on Monday, July 28, says lessons must be learned from the purchase and that there is a need for 'urgent improvements and better governance for acquisition practices'. Significant failings have been identified with regards to the handling of the acquisition, raising broader concerns about governance, due diligence, and community engagement. 'The committee is deeply concerned by the Welsh Government's handling of the purchase of Gilestone Farm,' said Mark Isherwood MS, the committee's chair. 'While we recognise the importance of acting swiftly to support the creative sector, this decision was taken with avoidable haste and without the thorough due diligence that the public rightly expects. It raises serious questions about internal processes and the robustness of governance structures. 'Furthermore, the Welsh Government must do more to ensure that communities are not only consulted but genuinely listened to. Engagement must be meaningful, inclusive, and consistent. 'The significant loss in the value of the property is particularly notable in the current financial climate, and we expect the Welsh Government to clarify its future intentions for the site and to set out how it will mitigate the financial loss to the public purse. 'To ensure lessons are learned, the committee will want to carry out further work looking at the Welsh Government's approach to property investments, to assess whether current processes are sufficiently rigorous and fit for purpose.' The Welsh Government was asked to comment by WalesOnline on the issues raised above. It said it will respond fully after reading the committee's report. A spokeswoman said: 'Gilestone Farm was acquired in 2022, following proper processes and in keeping with market values at the time, in order to support the growth of the creative sector in Wales and a stronger mid Wales economy. 'We were delighted to learn in August 2023 of the arrival of the pair of mating ospreys, which returned in 2024, and again this year. Their first egg hatched in early June 2025. This is believed to be a first for the Usk Valley in at least 250 years and marks an important milestone in the protection of this important species. 'The arrival of the ospreys necessarily impacted on the planned use of the farm, and the original project had to be stopped. Gilestone remains one of the Welsh Government's property assets, and is being managed on our behalf as a working farm. We continue to explore potential opportunities for its future use, in keeping with our commitment to seek a sustainable outcome that helps local communities thrive. 'We will read the Committee's report with interest, and respond in due course.'