Tech market sell-off deepens amid fears over US inflation and AI debt

Chip makers and tech investors such as Samsung and SoftBank plunge as potential interest rate hikes spook markets

An accelerating sell-off of AI-linked shares has hit global markets, as fears over rising inflation and future interest rate hikes spooked traders already wary of the heavily indebted sector.

South Korea’s benchmark Kospi 200 index, which is heavily skewed towards the companies that make memory chips, fell more than 8% overnight to a six-month closing low, triggering circuit breakers that brought trading to a halt at various points.

Continue reading...

Trump’s deal with Putin will have little impact on US diesel prices, experts say

Analysts say fuel will take weeks to ship and quantity is too small to affect prices, while full deal is unlikely to be met given damage to Russian refineries

Donald Trump’s deal with Vladimir Putin to temporarily lift sanctions on US imports of Russian diesel will have little “meaningful” effect on motorists and businesses in the US and overseas, energy and foreign policy analysts have predicted.

The US president infuriated Volodymyr Zelenskyy when he announced the deal on Friday, writing on Truth Social that the agreement with his Russia counterpart to supply millions of tonnes of diesel was essential to reduce fuel prices in the US, which have soared after his decision to go to war against Iran.

Continue reading...

UK car industry faces ‘difficult trade-off’ between Chinese and EU markets

Britain under pressure to put tariffs on cheap Chinese vehicle imports ahead of protectionist trade measures

Britain’s car industry is grappling with a “difficult trade-off” between China and Europe, as manufacturers struggle to balance the benefits of both markets ahead of looming trade measures that could restrict UK exports to the EU.

The UK is an outlier in choosing not to put import taxes on Chinese vehicles, even as the US has shut them out almost entirely, and the EU imposes duties of up to 45%.

Continue reading...

Britain in talks with European allies over release of emergency diesel stockpiles amid Trump pressure

Ministers discuss drawing down EU countries’ reserves after Donald Trump threatens to cut off US supplies

Britain is in talks with European allies over releasing emergency diesel stockpiles after Donald Trump threatened to cut off US supplies of the fuel.

Ministers held calls with counterparts from the European Commission (EC), Germany, France, Italy and Ireland on Thursday to discuss whether to draw down reserves after the Trump administration told Germany and France to release their stockpiles to help ease soaring global energy prices or face a US export ban.

Continue reading...

UK losing up to £6.5bn a year in EU trade due to mismatched product rules

IPPR finds failure to align testing standards has forced companies to abandon exporting to EU and is costing costing 0.18% of national income

The UK is losing out on annual exports to the EU that could be worth as much as £6.5bn without a deal with Brussels that allows manufacturers to jettison duplicate product testing.

In the latest attempt to calculate the loss of trade with the EU after Brexit, the IPPR thinktank said many companies have given up selling goods to the EU or set up subsidiaries inside the trade bloc after successive governments failed to secure a mutual recognition agreement that would avoid the extra administration costs.

Motor vehicle and part exports would have been between £2.48bn and £3.42bn higher each year.

Electronic exports could have been between £1.17bn and £1.67bn higher.

Pharmaceutical exports would have had an estimated annual uplift of between £740m and £820m.

Continue reading...

George Osborne calls for UK to rejoin EU customs union and boost trade

Ex-Tory chancellor says economy has ‘fallen off a cliff’ since Brexit but rejoining union could be ‘quite simple’

The former chancellor George Osborne said Britain’s economy had “fallen off a cliff” since Brexit and that rejoining the European Union’s customs union would be the fastest route to recovery.

Osborne, who was sacked as chancellor by Theresa May after being part of David Cameron’s cabinet at the time of the referendum, said it was important to rebuild links with the EU.

Continue reading...

Deadly escalation in Black Sea attacks prompts fears of even higher food prices

Russian and Ukrainian strikes in July killed more crew than in whole war to that month, preventing grain exports

A summer of hostilities in the Black Sea proved deadly for seafarers, as Russia and Ukraine attacked each other’s ships and port infrastructure, preventing vital grain exports and prompting concerns that the conflict will push global food prices even higher.

More crew were killed in the Black Sea in July than during the entirety of the war before that month as the conflict has intensified, making the body of water the most dangerous in the world for commercial shipping. This is despite the conflict between the US and Iran, with vessels still being targeted in the strait of Hormuz, Red Sea and Gulf of Aden.

Continue reading...

Iran vows to retaliate against countries that cooperate with fresh US sanctions

Test of US rhetoric will rest on whether nations such as India, China and Russia view economic threats as credible

Tehran has vowed to retaliate against any country that cooperates with the US attempt to impose fresh sanctions against Iran in what the Treasury secretary, Scott Bessent, has billed as “the single greatest financial offensive ever marshalled against an adversary”.

In advance of the US announcement, the United Arab Emirates, Iran’s single biggest trading partner in the Middle East, announced it was ending all trade with Iran, a move Tehran believes was coordinated between Washington and the UAE.

Continue reading...

‘Mamma mia!’: Trump tariffs refund ignites 53% profit spike at Nintendo

Profit jump fuelled largely by unknown US refund amount as Japanese video game firm records quarterly sales drop

Nintendo has reported a jump in profits, as the Japanese game maker’s earnings were buoyed up by a long-awaited refund on Donald Trump’s tariffs.

The company said profits surged 53.5% to ¥147.4bn (£694m) over the three months to June, substantially beating expert forecasts for ¥77.8bn.

Continue reading...

China’s economy grows at 4.3%, one of its lowest rates on record

Worse-than-expected figures for three months to June come amid concerns over lopsided economy

China has posted worse-than-expected growth figures for the three months to June as its economy expanded by just 4.3% – one of its lowest quarterly readings on record.

The rate, which came in under the government’s target of 4.5% to 5%, was one of the weakest since reporting on official quarterly GDP figures began in the early 1990s.

Continue reading...

Developing countries spend more repaying foreign debt than on education, UN reveals

Unesco report shows children lost out to servicing debt in 113 countries, with 18 spending five times more on loans

Most developing countries spent less on education than they did repaying debt last year, according to the UN, at the same time as global aid to education is predicted to decline by up to 30%.

More was spent on servicing foreign debt than on education in 113 developing countries in 2025, according to research by the UN’s culture and education agency, Unesco. In sub-Saharan Africa, countries spent 3.6 times more on debt than education.

Continue reading...

Oil price falls to pre-Iran war levels as more tankers exit strait of Hormuz

Stock markets on both sides of Atlantic up as concerns ease over prospect of another inflationary shock

Oil prices have fallen to pre-Iran war levels as more oil tankers exited the strait of Hormuz.

Brent crude, the global benchmark, fell to a low of $72.24 a barrel on Thursday, slightly lower than the day before the US and Israel launched missile attacks on Tehran on 28 February. Prices have fallen more than 20% this month.

Continue reading...

Oil and gas unlikely to return to prewar prices for months even if Hormuz reopens

Markets welcome US-Iran peace deal but prices may stay high as buyers race to refill depleted emergency crude stockpiles

After more than 100 days of the greatest recorded disruption to the world’s energy supplies, the global oil and gas markets have breathed a sigh of relief.

Hours after Donald Trump confirmed that a US-Iran peace deal would lead to the reopening of the strait of Hormuz for tankers carrying millions of barrels of oil and gas, the price of Brent crude tumbled to lows of $82 a barrel. Wholesale gas prices fell about 6%.

Continue reading...

‘Immediate national priority’: ministers accused of complacency over UK food supply

Cold storage and logistics body warns food supplies at risk from fuel shortages, cyber attacks and extreme weather

Ministers have been accused of being complacent about the risks to vital supplies of food into the UK amid concerns over fuel shortages, cyber attacks and extreme weather.

The trade body for cold storage and logistics has urged the government to make potential disruption to the UK’s food system an “immediate national priority”.

Continue reading...

With oil markets nearing the danger zone, a US-Iran deal can’t come soon enough | Heather Stewart

Global prices are approaching a tipping point that could trigger inflation, shortages and, over time, recession

If a US-Iran deal is about to be reached, three months on from the launch of Donald Trump’s Operation Epic Fury, it will not be a day too soon for oil markets, which are approaching a dangerous tipping point.

The cost of a barrel of crude on the spot market – for immediate purchase, effectively – has bounced about $100 since Iran predictably responded to the onslaught from the US and Israel by closing the strait of Hormuz.

Continue reading...

‘Inevitable’ jet fuel shortages will drive up air fares this summer, says Willie Walsh

Impact of disruption from Iran war may be felt into 2027 even if strait of Hormuz reopens, says aviation body boss

Increases in air fares for travellers in Europe are “inevitable” over the peak summer period because of the high cost of jet fuel, according to the head of the international aviation body.

While some airlines faced with weak demand have reduced their European fares recently, Willie Walsh, the former British Airways boss who leads the International Air Transport Association, said there was no way carriers could absorb the extra costs in the long run.

Continue reading...

Carney names broad team to advise on tense US-Canada trade talks

Conservatives and former provincial premiers among those PM names to advisory committee on economic relations

Canada’s prime minister, Mark Carney, says his new advisory committee on economic relations with the United States will draw on the “best advice and the broadest perspectives” as the country braces for what many expect will be tense trade negotiations with its southern neighbour.

The 24-member advisory committee, announced on Tuesday, shows the prime minister’s eagerness to reach across the political spectrum to ensure Canada is “well positioned to advance its interests” at the looming trade talks.

Continue reading...

Hedge fund borrowing exposes emerging markets to greater Iran war risk, says IMF

Analysis shows developing economies more likely to experience higher interest rates and currency shocks

Emerging economies are at greater risk of higher interest rates and currency shocks resulting from the Iran war because of increased reliance on market investors such as hedge funds, the International Monetary Fund has warned.

The IMF’s analysis shows that a cumulative $4tn flowed into emerging markets last year from outside the formal banking sector – including from hedge funds and investment funds.

Continue reading...

‘The stakes are enormous’: how a prolonged Iran war could shock the global economy

Donald Trump’s ‘little excursion’ is likely to have long-term effects, from oil prices to inflation to growth, say experts

In the days after the US and Israel first bombed Iran, financial markets bet the economic fallout from Donald Trump’s “little excursion” in the Middle East would be short-lived.

“There are risks from higher oil prices longer term. But this is a tail risk,” one US-based fund manger said after the airstrike killing Iran’s supreme leader, Ayatollah Ali Khamenei. “History has shown time and time again that geopolitical flare-ups like this tend to be short-lived. This one should prove to be no exception.’’

Continue reading...

Africa particularly vulnerable as Iran conflict disrupts supply chains, say experts

Food production in many African countries depends heavily on fertiliser imported from the Gulf through the strait of Hormuz

Countries in Africa, where farmers depend heavily on imported fertiliser and a large share of household income goes on food, are particularly vulnerable to supply chain disruptions caused by the war in the Middle East, experts have said.

The conflict has drastically disrupted trade through the strait of Hormuz, a vital shipping lane not just for oil and gas but also for fertiliser, which is produced in vast quantities in the Gulf.

Continue reading...