Mōrena and welcome to your Friday recap of the top international business and political news.
First up, the United States will not increase tariffs on Mexico from the August 1 deadline, after US President Donald Trump spoke to counterpart Claudia Sheinbaum, Al Jazeera reported.
Trump said the decision was a diplomatic breakthrough.
“The complexities of a deal with Mexico are somewhat different than other nations because of both the problems, and assets, of the border.”
He said the pair agreed to keep US tariffs at current rates for 90 days. Earlier this month, Trump had threatened to raise tariffs on Mexico to 30%.
Canada's plan to recognise a Palestinian state would make it "very hard" for a trade deal to be agreed with the US, Trump warned.
Prime Minister Mark Carney announced the move, which followed similar declarations from the UK and France.
Israeli Prime Minister Benjamin Netanyahu.
The Israeli Foreign Ministry said the move was a "reward for Hamas". Trump criticised Canada's decision and placed the blame for the ongoing conflict in Gaza on Hamas, the ABC reported.
"The fastest way to end the Humanitarian Crises in Gaza is for Hamas to SURRENDER AND RELEASE THE HOSTAGES!!!" he said.
US Treasury Secretary Scott Bessent expressed confidence that the US and China would reach a trade deal as the tariff deadline approached, CNBC reported.
“There are still a few technical details to be worked out on the Chinese side between us. I’m confident that it will be done, but it’s not 100% done.”
“The Chinese are tough negotiators. We’re tough, too,” he said.
The US was concerned about China purchasing Iranian oil and supplying Russia with technology.
Meanwhile, US special envoy Steve Witkoff arrived in Israel to discuss ways to end the conflict in Gaza, the ABC reported.
Witkoff met Prime Minister Benjamin Netanyahu to talk about humanitarian aid and the "next steps" for Gaza.
In Ukraine, Russia launched new waves of missiles and drones on Kyiv, killing 12 people and wounding 135 others, Reuters reported.
Ukrainian President Volodymyr Zelensky said Russia launched more than 300 drones and eight missiles. "Today the world has once again seen Russia's response to our desire for peace ... Therefore, peace without strength is impossible," he said.
Russian officials said it targeted and hit Ukrainian military airfields and ammunition depots, along with businesses.
Bank of England Governor Andrew Bailey blocked a meeting that UK Chancellor Rachel Reeves tried to secure with watchdogs and Revolut, after concerns Reeves crossed a line in an independent process over the fintech’s banking licence, the Guardian reported.
Bailey intervened over concerns that the central bank’s regulatory decisions should be independent from government interventions and influence.
Revolut secured a limited banking licence last year after a three-year wait. The company was granted a restricted licence and had yet to have its application fully authorised, the Guardian said.
In earnings news, oil company Shell reported adjusted earnings of US$4.3 billion in the June quarter, ahead of expectations, while lower than US$6.3b a year ago, the Guardian reported.
And, jet engine manufacturer Rolls-Royce said its underlying operating profit rose 50% to £1.7b in the first half of the year, with a profit margin of 19.1%.
The company raised its profit forecast for the year from a range of £2.7b-£2.9b to £3.1b-£3.2b.
