Good morning. The Bank of England is expected to keep its benchmark rate unchanged today. UK taxpayers lose £400 million on a startup fund launched by former PM Rishi Sunak. And Meta unveils Ray-Bans with a built-in screen. Listen to the day’s top stories.
— Teo Chian Wei
The Bank of England is seen keeping the benchmark rate at 4% today. It is also expected to slow its quantitative tightening program to £70 billion a year from £100 billion, amid concerns about bond market volatility. By contrast, the US Federal Reserve lowered rates overnight for the first time this year and penciled in two more reductions this year. Check out our Markets Today live blog for all the latest news and analysis relevant to UK assets.
French unions are leadingwidespread anti-austerity protests today, raising pressure on newly appointed Prime Minister Sebastien Lecornu as he struggles to find allies to piece together a budget. All of the major labor organizations called on their members to join marches as a show of force against spending cuts proposed in July that they say amount to “unprecedented brutality.”
Donald Trump's state visit to the UK now turns to tougher diplomatic talks on trade and foreign policy with Keir Starmer. The leaders will announce a British-American tech partnership but private discussions are likely to delve into thornier matters, including trade and Russia’s war on Ukraine. Last night’s lavish state dinner at Windsor Castle featured a mix of flattery and discussions on economic deals, while protesters gathered outside to voice opposition.
UK taxpayers have lost £400 million on a startup investment rescue fund launched by former PM Rishi Sunak during the pandemic. The Future Fund's value has plummeted as 334 companies went bust, raising questions about its effectiveness and Sunak's judgment.
Iron Beam Laser Weapon System, right, on the Rafael stand in the Israeli pavilion at the Paris Air Show on June 17. Photographer: Thibault Camus/AP Photo
Israel has developed a 100-kilowatt laser weapon called Iron Beam to intercept drones, rockets and missiles, which is set to be operational by the end of 2025. It will be integrated into the Iron Dome missile defense shield in the coming months, offering another layer of protection.
Too many of Europe’s leaders just can’t get stuff done anymore. From the UK to Poland, the continent faces a crisis of governance, with far-right parties gaining momentum and the specter of political instability looming over upcoming elections in Germany, France and the UK.
Much of the continent is now plagued by a pernicious combination of overburdened budgets, glacial administration, parliamentary fragmentation, energized opposition from extremes of the political spectrum, and discord that often spills onto the streets.
For European governments clinging to a shrinking center ground, the pretense of business as usual is giving way to an implicit admission that some paralysis and turmoil are probably here to stay.
That may turn to panic before long as they contemplate the possibility that a far-right win could be just one election away.
The UK has a moral obligation and an economic interest in safeguarding the path to citizenship for migrants from the territory it formerly ruled, Matthew Brooker writes. The government should confirm that it will exempt BNO visa holders from its proposed immigration policy changes. They should never have been included.
The Meta Ray-Ban Display glasses. Photographer: David Paul Morris/Bloomberg
Meta unveiled its $799 Ray-Ban Display smart glasses with a built-in screen. The glasses can display text messages, turn-by-turn directions in maps and visual results from queries to Meta’s AI service.
