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Inflation in the UK rose to 3.4% in December, exceeding forecasts and marking the first increase in five months. The Bank of England attributed part of the surprise jump to one-off factors and acknowledged its earlier forecasts had underestimated the slow pace of wage growth. Despite the uptick, analysts generally do not expect it to prevent interest rate cuts later in the year, particularly as weaker jobs data may help ease future inflationary pressures. Separately, several unrelated pressures on London emerged, with Mayor Sadiq Khan warning that artificial intelligence could cause mass unemployment in the city without proper government controls. The London Metal Exchange also experienced a brief trading pause due to a technical issue, while a report suggested around one million London properties could be at risk from ground subsidence by 2030.
Prime Minister Keir Starmer traveled to Beijing with a large business delegation to reset economic relations with China. During the visit, which included a meeting with Xi Jinping, both sides agreed to deepen economic ties and revive a high-level 'Golden Era' business dialogue. AstraZeneca announced a $15 billion investment in China through 2030 during the trip. Concurrently, the UK faces a significant trade challenge as the United States announced a 10% tariff on goods from the UK, France, and Denmark, set to begin February 1. Starmer and other UK leaders called the tariffs "completely wrong" and counterproductive, stating the UK would not be blackmailed but is attempting negotiations without ruling out retaliation. In other developments, Chinalco and Rio Tinto agreed to acquire a controlling stake in Brazilian aluminum producer CBA for approximately $904 million, and Pakistan International Airlines announced it will restart direct flights between Lahore and London in March after a six-year hiatus.
2 topics | 93 sources
Inflation in the UK rose to 3.4% in December, which was higher than economists had expected. This was the first increase in five months, though officials pointed to one-off factors as the cause. The Bank of England said its previous inflation forecasts were too high partly because it overestimated wage growth. Despite the surprise jump, analysts do not think it will stop the central bank from cutting interest rates later this year, especially as weaker jobs data might help ease price pressures.
Sadiq Khan, the Mayor of London, is warning that artificial intelligence could lead to mass unemployment in the city if it is not properly controlled. He plans to urge government ministers to take action to manage what he calls the 'colossal' potential impact of AI on jobs. Separately, the London Metal Exchange resumed trading after experiencing a technical glitch that temporarily halted its operations.
4 topics | 106 sources
Jan 30
UK PM Starmer visits China to reset economic ties as Chinese-Australian mining deal proceedsUK Prime Minister Keir Starmer traveled to Beijing to reset the UK's economic relationship with China, encouraging British businesses to engage more with the country. Meanwhile, Chinalco, a Chinese state-owned aluminum company, and Rio Tinto, an Australian mining giant, have agreed to buy a controlling stake in Brazilian aluminum maker CBA in a deal valued at about $904 million. These developments highlight ongoing economic engagement between Western-aligned countries and China in the resources and trade sectors.