logo
The next British boom could be in the offing – if Starmer abandons net zero

The next British boom could be in the offing – if Starmer abandons net zero

Yahoo16-02-2025

Back in mid-January, as the full impact of Rachel Reeves's tax-raising October Budget began to hit home, consumer and business sentiment plunged.
Keir Starmer badly needed a new growth narrative to try to convince voters and investors the UK economy, having shrunk in two of the previous three months, would soon bounce back.
The Prime Minister reached for artificial intelligence (AI) before his Chancellor, even more desperate for a growth-boosting story, unleashed that hardy political perennial a fortnight later: 'the Government backs a new third runway at Heathrow'.
The expansion of our leading airport won't happen for at least a decade. The only people Reeves's Heathrow announcement will enrich before the next election, amid renewed courtroom battles, are Starmer's legal chums.
But AI is different. The rapid development of generative AI, sometimes referred as 'the fifth industrial revolution', will profoundly impact the world.
The first three 'revolutions' took 250 years – steam power and mechanisation from the 1750s, followed by steelmaking and electrification then widespread computation by the end of the 20th century.
Industrial Revolution 4.0 was the first two decades of this century – the spread of internet connectivity and 'mass data-fication', with much of what has ever been written now instantly and widely accessible.
And since around 2020, the AI revolution – increasingly powerful computers 'leveraging' or making more use of that connectivity and information access – has been in full swing.
In manufacturing, AI is already boosting efficiency by optimising production processes and facilitating 'predictive maintenance' – so machinery can be fixed before it breaks down.
Across many sectors, AI is automating design processes, improving supply-chain management and quality control.
AI-driven chatbots are now widely used by firms to field customer enquiries – they're still quite clunky, and sometimes annoying, but rapidly improving.
That's the 'generative' bit – AI allows machines to 'learn', as large language models rapidly trawl ever-expanding reams of available text and data, absorbing increasingly complex trends and patterns, allowing computers to 'think'.
AI-driven robots and machines will be able to – already can – make decisions and change behaviour on their own. And their very operation means they can handle increasingly complex tasks and adapt to changing circumstances, making them more flexible and efficient across a huge variety of tasks.
What we're seeing now is a multibillion-dollar race, not least between US and Chinese firms, to dominate the AI market. At stake is enormous power over access to information and the processes that will increasingly dominate consumer, business and indeed government behaviour across the world.
Part of Starmer's recent pledge to 'turbocharge AI' involved 'the public sector spending less time doing administration'. So why is the payroll of our already bloated Civil Service still rapidly expanding?
Of all the applications of AI, the one that excites me least – and will do little to boost the economy – relates to the UK's state apparatus.
Our public sector is often terrible at adopting new technology. Years after the NHS spent endless billions of pounds on a new IT system, basic information sharing across a sprawling organisation, even among qualified professionals, remains ghastly.
And as for 'joined-up government' malarkey – well, good luck with that. Whitehall departments detest sharing data, most of all with other departments. Changing that culture will take decades, whatever the technology.
In the real world, though, for consumers and businesses alike, the potential benefits of AI are nothing short of mind-blowing. But so are the potential pitfalls – in terms of the jobs, privacy and even safety of pretty much the entire human race.
In Paris last week, JD Vance made his first major policy speech since becoming US vice president last month, framing AI as an economic turning point while issuing a note of caution. 'It will never come to pass,' he said, 'if overregulation deters innovators from taking the risks necessary to advance the ball'.
Vance was taking aim at the European Union, which produced a document amounting to the first international effort to regulate AI, pledging to ensure 'AI is open, inclusive, transparent, ethical, safe, secure, and trustworthy.'
While signed by scores of countries, including China, both the US and the UK refused. Regulating AI is, at best, going to be extremely tough, on a global basis surely impossible.
The UK has huge talent in this area. British whizz kids created DeepMind – a firm which made major breakthroughs in machine learning, advanced algorithms and systems neuroscience. But a lack of smart, British-based capital saw the company gobbled up by US giant Google back in 2014, although DeepMind's HQ remains in the UK.
The House of Lords Communications and Digital Select Committee this month rightly warned Britain could become merely an 'incubator' of AI firms, without the capital and infrastructure to help our promising minnows to 'scale up'.
The UK certainly need the growth-boosting impact of this AI revolution. GDP grew a paltry 0.1pc during the final quarter of last year, as Britain flirts with recession.
But amid all the questions swirling around the UK's part in this fifth industrial revolution, another looms large – namely power supplies.
The mass of computers packed in the data centres that drive AI generative systems demand huge amounts of energy. AI-related activities used 3.6 terawatt-hours (TWh) of electricity in 2020. If this sector expands 20-fold over the next five years, as per the government's target, that implies 72 TWh by 2030 – a quarter of the UK's current total consumption.
National Grid bosses have long been warning our electricity system is 'constrained', with 'bold action' needed to cope with 'dramatically' growing demand.
So here's a prediction. Starmer will need to choose between his 'AI revolution' and Ed Miliband's mad-cap net zero scheme to 'decarbonise the National Grid'.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Reeves takes gamble on patience in an era of impatience
Reeves takes gamble on patience in an era of impatience

Yahoo

time41 minutes ago

  • Yahoo

Reeves takes gamble on patience in an era of impatience

The hours, days, weeks and even months after a Spending Review can feel like peeling away the layers of an onion. First, there is the speech from the chancellor in the Commons: the political rhetoric and the numbers often designed to sound big but which are often incomprehensible. Then there are accompanying documents - in this instance in particular a blue-covered, 128-page tome crammed with words, numbers and graphs. The work of months, much of it conducted privately with intermittent blasts of authorised and unauthorised briefing, talking up and grumbling, then suddenly bursts out in public demanding digestion. But that takes time. And as the detail is pored over, elements that were not put up in lights by the chancellor become clearer. A good example is the expectation many, many people in England and Wales will be paying higher council tax to help fund the police - something not set out explicitly by Rachel Reeves at the dispatch box. More details on what is planned are expected in the coming weeks - with the government's infrastructure plans due to be set out shortly. But other elements could take much longer to play out: for example, an obscure budget in a particular department that was culled, only for an outcry in six months time. Or, conversely, a budget that hasn't been culled but is later determined to be a waste of money. Seven ways the Spending Review affects you Winners and losers: Who got what in the review? What has the chancellor has announced? The key points Watch: Where the money is being spent The government is seeking to badge this moment as a turning point. The prime minister told the Cabinet and has now written in the Guardian that "this week we bettered a new stage in the mission for national renewal. Last autumn we fixed the foundations. Today we showed Britain we will rebuild." Let's see. The curiosity here is the standard critique of political leaders is turned on its head with much of this Spending Review. So often the grumble is one of short-termism, the quick win, the lack of strategic long term thought. And yet the gamble the government has taken is a willingness for patience in an era of impatience. Long term, so called capital spending, can - the argument goes - transform the public realm and in so doing transform economic potential. But it doesn't happen quickly and day-to-day spending is limited, even cut in places. And this at a time of volatile politics and a restlessness among an electorate, many of whom feel squeezed and have done for years and years. The Chancellor Rachel Reeves acknowledged to me there was an impatience for change - the very thing Labour promised - and pointed to an expansion of entitlement to free school meals and breakfast clubs in England, for instance. The big bet though remains on economic growth - finding it and sustaining it. The lack of it is the shackle on so much within government and beyond: the national mood, taxes, you name it. And yes the prospect of more tax rises in the autumn will hang in the air all summer. But the big test of this Spending Review is the contribution it can make to delivering growth - and when. Key points at a glance from the Spending Review Reeves boosts NHS and housing as some budgets squeezed

Chinese fighter jets flew unusually close to Japanese patrol planes
Chinese fighter jets flew unusually close to Japanese patrol planes

Yahoo

time41 minutes ago

  • Yahoo

Chinese fighter jets flew unusually close to Japanese patrol planes

(Corrects the date of the Japan defence ministry announcement to Wednesday, not Thursday, in paragraph 1) By Kantaro Komiya and Nobuhiro Kubo TOKYO (Reuters) -Chinese fighter jets flew unusually close to Japanese military patrol planes over the weekend as two Chinese aircraft carriers operated in the Pacific Ocean for the first time, Japan's defence ministry said late on Wednesday. On Saturday, a Chinese J-15 jet from the aircraft carrier Shandong chased a Japanese P-3C patrol aircraft for about 40 minutes, the ministry said. On Sunday, a J-15 chased a P-3C for 80 minutes, crossing in front of the Japanese aircraft at a distance of only 900 meters (2,950 feet), it said. At one point on both days, a Chinese J-15 flew as close as 45 meters to a Japanese aircraft, the ministry said. The P-3C aircraft, belonging to Japan's Maritime Self-Defense Force based in the island of Okinawa, were conducting surveillance over international waters in the Pacific, the ministry said. "Such abnormal approaches by Chinese military aircraft could potentially cause accidental collisions, and we have expressed serious concern and strongly requested prevention of recurrence," the ministry said, attaching close-up images of the J-15 jet it took on Sunday. Earlier this week, Tokyo said the Shandong and another Chinese carrier the Liaoning were conducting simultaneous operations in the Pacific for the first time, describing it as a move signifying Beijing's intention to further widen its capabilities beyond its borders. Beijing on Tuesday said the operations were a "routine training" exercise that did not target specific countries. In 2014, Tokyo said it spotted Chinese military aircraft flying as close as 30 metres to its military aircraft over the East China Sea and protested to Beijing.

Trump tariffs live updates: Trump says he will set unilateral tariff rates within weeks
Trump tariffs live updates: Trump says he will set unilateral tariff rates within weeks

Yahoo

timean hour ago

  • Yahoo

Trump tariffs live updates: Trump says he will set unilateral tariff rates within weeks

President Donald Trump told reporters on Wednesday that he would send letters to trading partners in the next week or two setting unilateral tariff rates. 'At a certain point, we're just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it,' the president said at the Kennedy Center in Washington. Soon after introducing steep new tariffs that roiled markets, Trump instituted a pause on his most punishing duties that expires July 9. His latest comment, however, only muddies the waters about what could happen next as the deadline approaches. Earlier on Wednesday, Treasury Secretary Scott Bessent told Congress that it is "highly likely" that the tariff pause would be extended for countries that are negotiating with the administration "in good faith." "There are 18 important trading partners — we are working toward deals on those — and it is highly likely that those countries that are ... negotiating in good faith, we will roll the date forward," Bessent said during testimony before the House Ways and Means Committee. On Tuesday, the US and China agreed to a framework and implementation plan to ease tariff and trade tensions. Trump signaled his approval, saying the deal was "done" pending sign-off from him and Chinese President Xi Jinping. Trump and other US officials indicated the deal should resolve issues between the two countries on rare earths and magnets, though reports later indicated China would only loosen restrictions on rare earth mineral exports for a six-month period. Trump also said the US will allow Chinese students in US colleges, a sticking point that had emerged in the weeks following the countries' mid-May deal in Geneva. Trump said the US would impose a total of 55% tariffs on Chinese goods. Yahoo Finance's Ben Werschkul reports, citing a White House official, that Trump arrived at that figure by adding together an array of preexisting duties and not any new tariffs. Meanwhile, though Trump's most sweeping tariffs continue to face legal uncertainty, on Tuesday, the president received a favorable update. A federal appeals court held a decision saying his tariffs can temporarily stay in effect. The US Court of International Trade had blocked their implementation last month, deeming the method used to enact them "unlawful." Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Treasury Secretary Scott Bessent told House lawmakers on Wednesday that the Trump administration may extend the 90-day tariff pause on some countries in order to continue trade negotiations. When asked if Americans should prepare for another "Liberation Day" on July 9, when the tariff pause ends for most countries, Bessent said that the administration may choose to move the deadline on 18 of the most important trading partners, so long as they make an effort to come to the negotiating table. "We are working toward deals on those, and it is highly likely that [for] those countries — or trading blocs, in the case of the EU — who are negotiating in good faith, we will roll the day forward to continue good faith negotiations," Bessent said (see video below). "If someone is not negotiating, then we will not." A recent report on the drastic decline of US ocean imports serves as an example of how President Trump's increased tariffs on China affected supply chains and several industries as ttalks continue. Reuters reports: Read more here. The Treasury Department says that the US government is successfully using tariffs to decrease the budget deficit by more than $30 billion, largely due to increased customs receipts. Reuters reports: Read more here. China will ease curbs on exports of rare earth minerals for six months as part of a new trade understanding with the US, according to The Wall Street Journal. The move could add more uncertainty for American manufacturers, particularly the auto industry, which has been pushing for easier access. The Journal notes that the move gives China leverage down the line if tensions ratchet back up. From the report: In celebrating the agreement early Wednesday, President Trump noted "any necessary rare earths will be supplied, up front, by China." He did not mention any time limit on loosening those restrictions. Treasury Secretary Scott Bessent, in testimony before Congress on Wednesday, painted Wednesday's agreement as an incremental step on the longer road to a more comprehensive trade deal. "A trade deal today or last night was for a specific goal, and it will be a much longer process," he told a House committee. When asked if current US tariff levels on Chinese imports would not change again, Commerce Secretary Howard Lutnick told CNBC, "You can definitely say that." "We're in a great place with China," Lutnick said Wednesday. While the US-China truce framework is awaiting final word from US President Trump and Chinese President Xi Jinping, Lutnick added, "Both sides are really positive." The agreement is largely viewed as reestablishing the "handshake" that US and Chinese officials reached in Geneva last month, as details on a larger trade pact remain scant. Trump posted on social media this morning that the US has imposed 55% tariffs on China, a number that does not include any new tariffs but instead comprises some preexisting tariffs, Trump's fentanyl tariffs, and 10% "Liberation Day" tariffs. Lutnick touted that, as a result of the two-day talks, the US will gain access to rare earths and magnets, while the Chinese delegation sought to remove the US's export controls. He added that the trade deficit remains an ongoing issue, stating, "We're going to examine how China can do more business with us." May's Consumer Price Index (CPI) report showed inflation pressures eased on a monthly basis despite investor concerns that President Trump's tariffs would accelerate the pace of price increases. The Consumer Price Index (CPI) increased 0.1% on a monthly basis in May and 2.4% on an annual basis, a slight uptick from April's 2.3% gain. Yahoo Finance's Allie Canal reports: Read more here. I would keep an eye on consumer names off the news of a trade deal with China floated by President Trump this morning (see our prior post below). Seeing upticks premarket in heavily China-exposed retailers such as Nike (NKE), Walmart (WMT), Target (TGT), and Abercrombie & Fitch (ANF). The premarket gains here aren't mind-blowing in part because tariffs appear to still be in place. Trump posted on Truth Social: OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!" A variety of market observers quickly weighed in hours after Tuesday evening's unveiling to suggest that the deal may not have a lot of meat on the bones — but at least relations are no longer moving in the wrong direction. The talks perhaps underscored how unlikely a comprehensive trade deal is anytime soon, noted AGF Investments Greg Valliere, "but at least relations may not worsen as talks continue throughout the summer." Both sides promised additional talks in the weeks or months ahead, but none have yet been scheduled. Veronique de Rugy, a professor at the Mercatus Center at George Mason University, suggested the talks continued to show China's leverage. "China is hurting, yes—but they still hold the upper hand on critical resources, and they know how to use them." Any lessening of tensions — and freer flow — of these mineral resources in China would be a significant boost to the global economy with China holding outsized leverage in both the reserves and processing capacity of these key building blocks for everything from computers to electric vehicle batteries to medical devices. Likewise, the US offering concessions on export controls would be a significant move after years where successive US administrations have wielded these controls — especially around the design and manufacture of semiconductors — by saying they need to be tight on China for national security reasons. Read more here. May's Consumer Price Index (CPI) report will be released on Wednesday and its expected to show that prices rose a bit faster than in April. Yahoo Finance's Allie Canal breaks down what to look out for and how President Trump's tariffs are impacting what consumers are now paying for goods and services. Read more here. Now that the US-China trade truce is back on track, both sides are keen to ensure it stays that way. China's Vice Premier He Lifeng said both sides need to now 'show the spirit of good faith in abiding by their commitments and jointly safeguard the hard-won results of the dialogue.' Bloomberg News reports: Read more here. Reuters reports: Read more here. Despite the US-China trade truce resuming the pain from President Trump's tariffs remains in China, especially among small exporters. Reuters reports: Read more here. Japan warned Wednesday that tariffs threaten its economic growth, the government said in a monthly report. Reuters reports: Read more here. Reuters reports: Read more here. Reuters reports: Read more here. A federal appeals could said on Tuesday that President Trump's sweeping tariffs can continue for now. This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 'Now we can go forward to try to do positive trade, growing trade,' he said. As part of the deal, Beijing has promised to speed up shipments of rare earth metals, a crucial component for global auto and defense industries. Washington will ease export controls. This marks the first sign of movement on key issues. The proposal will now be presented to President Trump and China's Xi. Still, the discussions also did little to resolve a long-standing issue: China's trade surplus with the US. 'Markets will likely welcome the shift from confrontation to coordination,' said Charu Chanana, chief investment strategist at Saxo Markets. 'We're not out of the woods yet — it's up to Trump and Xi to approve and enforce the deal.' The meeting was set up after a phone call between the two leaders, following weeks of each side accusing the other of breaking the Geneva commitments. Both countries had used chips, rare earths, student visas and ethane as bargaining tools. Josef Gregory Mahoney, a professor at East China Normal University, said trust, not money, has been the biggest casualty of the trade war. 'We've heard a lot about frameworks,' he said. 'But the fundamental issue remains: Chips versus rare earths. Everything else is a peacock dance.' Bloomberg reports: Read more here. Treasury Secretary Scott Bessent told House lawmakers on Wednesday that the Trump administration may extend the 90-day tariff pause on some countries in order to continue trade negotiations. When asked if Americans should prepare for another "Liberation Day" on July 9, when the tariff pause ends for most countries, Bessent said that the administration may choose to move the deadline on 18 of the most important trading partners, so long as they make an effort to come to the negotiating table. "We are working toward deals on those, and it is highly likely that [for] those countries — or trading blocs, in the case of the EU — who are negotiating in good faith, we will roll the day forward to continue good faith negotiations," Bessent said (see video below). "If someone is not negotiating, then we will not." A recent report on the drastic decline of US ocean imports serves as an example of how President Trump's increased tariffs on China affected supply chains and several industries as ttalks continue. Reuters reports: Read more here. The Treasury Department says that the US government is successfully using tariffs to decrease the budget deficit by more than $30 billion, largely due to increased customs receipts. Reuters reports: Read more here. China will ease curbs on exports of rare earth minerals for six months as part of a new trade understanding with the US, according to The Wall Street Journal. The move could add more uncertainty for American manufacturers, particularly the auto industry, which has been pushing for easier access. The Journal notes that the move gives China leverage down the line if tensions ratchet back up. From the report: In celebrating the agreement early Wednesday, President Trump noted "any necessary rare earths will be supplied, up front, by China." He did not mention any time limit on loosening those restrictions. Treasury Secretary Scott Bessent, in testimony before Congress on Wednesday, painted Wednesday's agreement as an incremental step on the longer road to a more comprehensive trade deal. "A trade deal today or last night was for a specific goal, and it will be a much longer process," he told a House committee. When asked if current US tariff levels on Chinese imports would not change again, Commerce Secretary Howard Lutnick told CNBC, "You can definitely say that." "We're in a great place with China," Lutnick said Wednesday. While the US-China truce framework is awaiting final word from US President Trump and Chinese President Xi Jinping, Lutnick added, "Both sides are really positive." The agreement is largely viewed as reestablishing the "handshake" that US and Chinese officials reached in Geneva last month, as details on a larger trade pact remain scant. Trump posted on social media this morning that the US has imposed 55% tariffs on China, a number that does not include any new tariffs but instead comprises some preexisting tariffs, Trump's fentanyl tariffs, and 10% "Liberation Day" tariffs. Lutnick touted that, as a result of the two-day talks, the US will gain access to rare earths and magnets, while the Chinese delegation sought to remove the US's export controls. He added that the trade deficit remains an ongoing issue, stating, "We're going to examine how China can do more business with us." May's Consumer Price Index (CPI) report showed inflation pressures eased on a monthly basis despite investor concerns that President Trump's tariffs would accelerate the pace of price increases. The Consumer Price Index (CPI) increased 0.1% on a monthly basis in May and 2.4% on an annual basis, a slight uptick from April's 2.3% gain. Yahoo Finance's Allie Canal reports: Read more here. I would keep an eye on consumer names off the news of a trade deal with China floated by President Trump this morning (see our prior post below). Seeing upticks premarket in heavily China-exposed retailers such as Nike (NKE), Walmart (WMT), Target (TGT), and Abercrombie & Fitch (ANF). The premarket gains here aren't mind-blowing in part because tariffs appear to still be in place. Trump posted on Truth Social: OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!" A variety of market observers quickly weighed in hours after Tuesday evening's unveiling to suggest that the deal may not have a lot of meat on the bones — but at least relations are no longer moving in the wrong direction. The talks perhaps underscored how unlikely a comprehensive trade deal is anytime soon, noted AGF Investments Greg Valliere, "but at least relations may not worsen as talks continue throughout the summer." Both sides promised additional talks in the weeks or months ahead, but none have yet been scheduled. Veronique de Rugy, a professor at the Mercatus Center at George Mason University, suggested the talks continued to show China's leverage. "China is hurting, yes—but they still hold the upper hand on critical resources, and they know how to use them." Any lessening of tensions — and freer flow — of these mineral resources in China would be a significant boost to the global economy with China holding outsized leverage in both the reserves and processing capacity of these key building blocks for everything from computers to electric vehicle batteries to medical devices. Likewise, the US offering concessions on export controls would be a significant move after years where successive US administrations have wielded these controls — especially around the design and manufacture of semiconductors — by saying they need to be tight on China for national security reasons. Read more here. May's Consumer Price Index (CPI) report will be released on Wednesday and its expected to show that prices rose a bit faster than in April. Yahoo Finance's Allie Canal breaks down what to look out for and how President Trump's tariffs are impacting what consumers are now paying for goods and services. Read more here. Now that the US-China trade truce is back on track, both sides are keen to ensure it stays that way. China's Vice Premier He Lifeng said both sides need to now 'show the spirit of good faith in abiding by their commitments and jointly safeguard the hard-won results of the dialogue.' Bloomberg News reports: Read more here. Reuters reports: Read more here. Despite the US-China trade truce resuming the pain from President Trump's tariffs remains in China, especially among small exporters. Reuters reports: Read more here. Japan warned Wednesday that tariffs threaten its economic growth, the government said in a monthly report. Reuters reports: Read more here. Reuters reports: Read more here. Reuters reports: Read more here. A federal appeals could said on Tuesday that President Trump's sweeping tariffs can continue for now. This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 'Now we can go forward to try to do positive trade, growing trade,' he said. As part of the deal, Beijing has promised to speed up shipments of rare earth metals, a crucial component for global auto and defense industries. Washington will ease export controls. This marks the first sign of movement on key issues. The proposal will now be presented to President Trump and China's Xi. Still, the discussions also did little to resolve a long-standing issue: China's trade surplus with the US. 'Markets will likely welcome the shift from confrontation to coordination,' said Charu Chanana, chief investment strategist at Saxo Markets. 'We're not out of the woods yet — it's up to Trump and Xi to approve and enforce the deal.' The meeting was set up after a phone call between the two leaders, following weeks of each side accusing the other of breaking the Geneva commitments. Both countries had used chips, rare earths, student visas and ethane as bargaining tools. Josef Gregory Mahoney, a professor at East China Normal University, said trust, not money, has been the biggest casualty of the trade war. 'We've heard a lot about frameworks,' he said. 'But the fundamental issue remains: Chips versus rare earths. Everything else is a peacock dance.' Bloomberg reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store