The latest figures from the Office for National Statistics showed that energy continues to dictate the pace of UK inflation and is likely to remain the key driver in the months ahead.

Headline CPI rose 2.6% y/y in June, a tenth below expectations and the lowest annual rate since December 2024, easing from 2.8% in May. On a monthly basis, consumer prices increased 0.1%, in line with forecasts and down from the 0.2% rise recorded the previous month.

(Continue Reading – LS)

The dark cloud of Middle East war is once again looming over financial markets. While the shock of the initial U.S.-Israeli strikes on Iran is unlikely to be replicated, barring an alarming twist like a U.S. ground invasion, geopolitical risk is back on investors' radar.

Relief from falling ​oil prices and easing inflation pressures following the US-Iran ceasefire struck in April has evaporated. As flimsy as that ceasefire was, investors took it as a green light to ‌rebuild exposure to risk assets and position for renewed economic growth. Now, Washington and Tehran are attacking each other with increasing ferocity, the conflict risks spreading across the region, and the prospects of either side backing down seem limited.

(Continue Reading – RTRS)

Extraordinary claims require extraordinary evidence. On that score, Prime Minister Sanae Takaichi's 370 trillion yen ($2.3 trillion) investment plan, unveiled in Tuesday's economic ​and fiscal roadmap, falls woefully short. It singularly fails to provide any substantive detail about how the ‌scheme would work. She'd be better off ditching it in favour of a smarter, more flexible alternative.

Translated literally as "big-boned policy", the honebuto envisages injecting the cash into 17 sectors over the next 14-plus years to more than double Japan’s economic growth to over 1%. It’s a sharp ​break with previous leaders’ sober policy blueprints and is in some respects reminiscent of Beijing's Five-Year Plans, which set ​national growth targets and direct industrial policy.

(Continue Reading – RTRS)

A federal judge on Monday paused Paramount Skydance’s acquisition of Warner Bros. Discovery while she considers antitrust claims by Democratic Attorneys General. Like the deal’s opponents, the judge focuses on the Big Screen and ignores the bigger market picture.

Twelve states have challenged Paramount’s $110 billion deal to buy Warner Bros. under the Clayton Act. Their claims of competitive harm are as sprawling as Hollywood mogul estates, including that the deal will reduce diversity in viewpoints. But their main argument is that the combination of two large film studios will reduce competition in theatrical releases.

(Continue Reading – WSJ)