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Good morning. Foreign Secretary Liz Truss, frontrunner in the race to become Britain’s next prime minister, said she would try to change the Bank of England’s mandate to ensure it could get inflation under control.
At a meeting of Conservative party members in Cardiff yesterday, Truss argued that inflation had been caused by “massive” supply-side shocks after the pandemic and the war in Ukraine, adding that they would override the mandate of the central bank, which target of 2 percent inflation.
BoE policymakers are meeting today to discuss increasing the pace of monetary tightening to curb rising prices. Governor Andrew Bailey has said a 0.5 percentage point increase will be “one of the choices on the table.” In June, UK consumer price inflation was at a 40-year high of 9.4%.
“The best way to deal with inflation is monetary policy. . . I want to change the mandate of the Bank of England to make sure it matches some of the most effective central banks in the world in controlling inflation in the future” – Liz Truss
Truss, who bills himself as the low-tax, high-growth candidate, has pledged to cut the planned surge in national insurance and introduce low-tax investment zones to revive the economy.
With ballots landing on the doormats of 150,000 party members, Truss and Sunak will take part in another televised debate on Sky News tonight at 8pm BST.
Thank you to everyone who took part in yesterday’s poll. Forty-four percent of respondents said they thought Truss would win the leadership race, while 39 percent said they thought Sunak would win. Here’s the rest of the day’s news — Jennifer
Table of Contents
Five more stories in the news
1. SoftBank Raises $22 Billion in Actions to Sell Alibaba Stake Japanese tech investor led by billionaire Masayoshi Son has raised $22 billion in cash from deals that would sharply reduce its stake in Alibaba in response to a market downturn that has devastated its technology portfolio.
2. BP and UK supermarkets push for petrol price cuts Motoring organizations yesterday called on the oil company and the four major supermarkets – Asda, Wm Morrison, Tesco and J Sainsbury – to lend support to Britons struggling with the cost of living, accusing them of charging “what they can get away with.” come”.
3. Gerhard Schröder Says Russia Wants Negotiations to End War in Ukraine Germany’s former chancellor, the Kremlin, is open to talks to end the war in Ukraine after visiting Vladimir Putin in Moscow last week. Schröder has been harshly criticized for his ties to Putin, a close friend, but claims he “condemned the war many times”.
4. Nancy Pelosi pledges US support to Taiwan The Speaker of the US House of Representatives yesterday pledged a “cast-iron” commitment to the country during a historic visit that infuriated China and warned that Beijing’s military response could amount to a blockade. For Pelosi, the trip was the latest salvo in a career of standing up to China over human rights issues.
5. Elon Musk Sues Goldman Sachs And JPMorgan In Twitter Battle The Tesla chief is seeking information on how the two Wall Street banks advised Twitter on its proposed $44 billion acquisition of the social media company, which he now plans to shut down. Musk and Twitter are preparing to begin the trial in October.
the next day
Operating income Alibaba, Bayer, ConocoPhillips, Eli Lilly, Kellogg, Next, Lyft, Paramount, Pirelli and Rolls-Royce are among those reporting – see our full list here. Investec and Tesla hold annual meetings.
Economic data The European Central Bank publishes its economic bulletin monthly. New weekly jobless claims are expected in the US cases, while the trade deficit is expected to narrow for a third month in June. (FT, WSJ)
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What else do we read
The Women Who Call Apple In interviews with the Financial Times, more than a dozen former and current employees accused Apple’s HR team of putting the Silicon Valley giant’s reputation above the well-being of its employees. Inspired by the #MeToo movement, more women are sharing accusations of apathy and retaliation in the face of wrongdoing.
The Black Gold of the Taliban Business is thriving in Afghan coal mines, thanks to a global surge in commodity prices after the war in Ukraine and Covid-related disruptions. The fossil fuel provides the militant group with a crucial revenue stream after it took power a year ago, triggering international sanctions that crippled the country’s economy.
Why don’t we still punish bosses for failures? Last week, Britain’s financial watchdog fined three former executives of bankrupt construction company Carillion in an unusual case of driver penalties. More companies are applying malus and clawback provisions, but Cat Rutter Pooley says they are not yet credible.
Heathrow’s fraught post-Covid labor relations Staff at the UK’s largest airport – which is also the largest workplace in Europe – are struggling to cope with the impact of canceled flights and manage long queues at terminals after Covid-19 layoffs made employers struggle to re-enlisting to meet the rising demand for travel.
The genius of the uncool holiday After a rough start to the year, Imogen Western Knights decided she needed a vacation. Namely an all-inclusive package holiday. It wasn’t original, and it didn’t improve her mind or broaden her horizons—but it was just what she needed.
Carbonated water has enchanted people since ancient times, writes Alice Lascelles, who rates the best H2O with bubbles for HTSI.
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