Ata mārie and welcome to your Friday recap of international business and political news from overnight.
First up, the Bank of England has cut its benchmark interest rate to 4%, the lowest level in more than two years, after policymakers voted twice to reach a decision.
The unprecedented second vote suggested further interest rate cuts could be finely balanced amid concerns over rising prices and inflation, the BBC said. Inflation could now peak at 4% in September, the BoE said. Governor Andrew Bailey said the decision to cut interest rates was "finely balanced".
"Interest rates are still on a downward path. Any future rate cuts will need to be made gradually and carefully."
Federal Reserve Governor Christopher Waller has emerged as a top candidate to replace chair Jerome Powell next year, as US President Donald Trump’s advisers look for a replacement, Bloomberg reported.
Kevin Warsh, a former Fed official, and Kevin Hassett, currently Trump’s National Economic Council director, also were in contention for the job, according to sources. Powell’s tenure as chair ends in May next year.
“President Trump will continue to nominate the most competent and experienced individuals,” White House spokesperson Kush Desai said. “Unless it comes from President Trump himself, however, any discussion about personnel decisions should be regarded as pure speculation.”
Federal Reserve chair Jerome Powell.
United Arab Emirates President Mohammed bin Zayed al Nahyan met with Russian President Vladimir Putin in Moscow overnight, promising to double Russia-UAE trade in the next five years, CNBC reported. The visit comes ahead of a planned meeting between Putin and Trump, possibly next week.
The UAE is a longtime close ally of the United States and a major military and intelligence partner. It is also Russia’s most important economic partner in the Middle East, CNBC said. Trade turnover between Russia and the UAE had reached US$11.5 billion.
“We would like this figure to be doubled both at the bilateral level and with Eurasian countries during the next five years,” adding that relations between the two countries “are developing at an accelerated pace”, the UAE leader said. About 4000 Russian businesses operate in the UAE, and foreign direct investment between the two has steadily increased.
Israeli Prime Minister Benjamin Netanyahu said his country intended to take military control of Gaza and then hand it over to Arab forces, the ABC reported.
Netanyahu made the comments during an interview on Fox News. When asked if Israel wanted to take control of all of the 42-kilometre strip, he said: "We intend to". He said Israel had no intention of governing Gaza and instead wanted a security perimeter.
Hamas condemned his remarks and said “what the war criminal Netanyahu is planning is to continue his approach of genocide and displacement” against Palestinians, Al Jazeera reported.
“Netanyahu’s statements represent a clear reversal of the course of negotiations and clearly reveal the true motives behind his withdrawal from the final round, despite our close proximity to a final agreement,” the group said.
Meanwhile, the Israeli military issued fresh evacuation notices to Palestinians in parts of the Daraj and Tuffah areas in Gaza City. It said it was operating “with great force” in those areas.
Israeli Prime Minister Benjamin Netanyahu.
In the US, Trump’s new tariffs officially took hold overnight after months of to-and-fro negotiations, Bloomberg reported.
Higher rates for almost all US trading partners began just after midnight local time in New York. Trump officially signed the directive a week ago but had to allow time for US Customs and Border Protection to make necessary changes.
Trump promised the tariffs would slash trade deficits and force companies to move manufacturing back to the US. Critics said the tariffs could cause inflation and higher prices for consumers.
Elsewhere, Trump said the head of US chipmaker Intel should resign "immediately", accusing him of having problematic ties to China, the BBC reported. He said the firm’s chief executive Lip-Bu Tan was "highly conflicted", referring to Tan's alleged investments in companies that the US said were linked with the Chinese military.
