Headlines

Inflation unexpectedly rose in the U.K., likely keeping policymakers at the Bank of England cautious despite a limping economy, the Wall Street Journal reported. The rate of annual inflation was 3.6% in June, up from 3.4% in May, figures from the Office for National Statistics showed Wednesday. The uptick echoes the situation in the U.S., where inflation picked up pace to 2.7% last month from 2.4% in May as prices rose among items sensitive to President Trump’s trade tariffs, such as toys and clothes.

Thousands of UK companies have been removed from the Companies House register over the last year, following a crackdown coordinated by the National Economic Crime Centre, according to a press release. These companies were not compliant with Registered Office requirements under the Companies Act 2006. The project was designed to identify and enable enforcement action against high-risk company incorporation locations and corporate entities believed to be enabling criminality in the UK and overseas.

Indonesia’s central bank resumed its interest rate-cutting cycle, as cooling inflation provides ample room to support the economy, the Wall Street Journal reported. Bank Indonesia’s decision to cut its benchmark seven-day reverse repo rate by 25 basis points to 5.25% comes amid news of a trade deal with the U.S. that could ease the tariff overhang on the economy. Wednesday’s decision had been expected to be a close one, with domestic conditions and rupiah stability conducive to a cut but external uncertainties backing the case for caution.

World Trade Organization members are seeking to break years of paralysis in international trade negotiations, which have been sidelined by the Trump administration and risk becoming irrelevant, internal WTO documents seen by Reuters show. Trump's sweeping tariffs have forced countries to line up to negotiate bilateral trade deals with Washington, bypassing the multilateral framework. WTO members had already struggled to reach deals due to a consensus requirement among all 166 members. Preventing members from blocking decisions is now the top priority in reform talks, diplomats told Reuters.

President Donald Trump said on Wednesday the U.S. will probably "live by the letter" on tariffs with Japan and may have another trade deal coming up with India, following his announcement of an accord with Indonesia on Tuesday, Reuters reported. "We have some pretty good deals to announce," Trump told reporters at the start of a meeting with Bahrain's Crown Prince Salman bin Hamad Al Khalifa at the White House. He said he would also discuss trade issues with the Bahraini leader.

Europe’s exports to the U.S. fell for the second consecutive month in May after a first-quarter boom, but remained higher than a year earlier, a sign of resilience that will be tested as higher tariffs look set to become a settled feature of trans-Atlantic trade, the Wall Street Journal reported. Exports to the U.S. from the European Union edged down to 46.2 billion euros, or around $53.6 billion, in May from 47.7 billion euros a month earlier, statistics agency Eurostat said Wednesday. Overall exports fell 0.8%, with the EU’s overall trade surplus rising to 13.4 billion euros.

Prime Minister Mark Carney on Wednesday said Canada will introduce a tariff rate quota for countries with which it has free trade agreements, excluding the United States, to protect the domestic steel industry, Reuters reported. A 50% tariff will apply to imports from these countries that surpass the 2024 volumes, though Canada will honor existing arrangements with its United States-Mexico-Canada Agreement trade partners, Carney said. Canada will implement additional tariffs of 25% on steel imports from all countries containing steel melted and poured in China before the end of July.

Mexican President Claudia Sheinbaum said on Wednesday that she had spoken with Canadian Prime Minister Mark Carney and that the two had agreed to strengthen trade collaboration, particularly in light of the tariffs from U.S. President Donald Trump set to go in effect on August 1, Reuters reported. "We both agreed that the (U.S.-Canada-Mexico) trade agreement needed to be respected, and we shared our experiences about the letter than we received from President Trump," Sheinbaum said in her daily morning press conference.

U.S. President Donald Trump's tariffs on South Africa could cause around 100,000 job losses, with the agriculture and automotive sectors hardest-hit, central bank governor Lesetja Kganyago said on Wednesday, Reuters reported. Kganyago told local radio station 702 that the impact of the 30% tariff, which Africa's biggest economy faces from August 1, could cause significant damage to specific industries.

Indonesia’s president, Prabowo Subianto, confirmed on Wednesday the broad outlines of a trade agreement with the United States that was reached after what he called “tough negotiations” with Washington, the New York Times reported. Under the terms, which President Trump on Tuesday called a “great deal for everybody,” U.S. exports to Indonesia would face no tariffs, while Indonesian goods would be charged a tariff of 19 percent in the United States. Mr. Prabowo confirmed in brief remarks in Jakarta that the two nations had “finally” reached an agreement.