Amid heightened scrutiny of US labour statistics, a political clash has intensified over whether slowing wage growth disproportionately harms lower-paid workers, with economists warning that opaque data risks masking widening inequality and eroding confidence in policymaking.
The Federal Reserve kept its benchmark rate unchanged despite overt pressure from President Trump, exposing an historic split among policymakers over how to navigate slowing growth, trade uncertainty and subdued inflation.
European shares slipped and the euro weakened as Berlin and Paris signalled reluctance over a proposed US trade accord, stoking investor jitters particularly in the car sector and prompting concerns about the bloc’s growth outlook.
Brussels has agreed to accept 15% US tariffs on a swathe of imports in return for a wider accord that will see the EU purchase more American arms and energy, a move hailed by Washington as redressing long-standing trade imbalances and easing transatlantic tensions.
Tesla shares fell sharply after Elon Musk warned that Donald Trump’s anti-electric vehicle policies would squeeze profits amid expiring emissions credits and rising competition.
Conservative leadership contender Kemi Badenoch has declared she will mirror Argentina’s austerity-focused president by slashing state spending, reducing taxes and scaling back regulations, arguing that such a free-market stance is essential to counter anticipated Labour tax rises and revive growth.
