Finance and Economy Background

Global Economy,
Curated & Summarized.

The most critical economic and financial news from around the world. From Wall Street to Tokyo, expert sources delivered to you instantly.

Read Latest NewsExplore Markets

Latest Developments

North America
CNBC Economy

Friday's CPI inflation report is even more important than usual. Here's what to expect

A report due out Friday morning will be the last piece of the inflation puzzle the Federal Reserve will get before making its decision on interest rates next week. The Bureau of Labor Statistics will release the August consumer price index report at 8:30 a.m. If the Dow Jones consensus is correct, the report will show that costs for all measured goods and services rose 0.4% last month, putting the annual inflation rate at 3.4%. However, excluding food and energy prices, the respective outlooks for core inflation are 0.2% and 2.4%. Combined with Thursday's producer price index data — a measure of wholesale inflation — the CPI will help tell Fed officials what their primary inflation gauge, the personal consumption expenditures price index, will show when it is released at the end of September. The information also is expected to figure heavily into the Federal Open Market Committee's interest rate call next Wednesday, with a percentage point either way possibly meaning the difference between a hold and a hike. "The September FOMC decision ultimately hinges on the CPI data ... since a majority of PCE components are derived from CPI," Nomura economists said in a note. "Currently, we maintain our Fed call of no rate hike at the September FOMC meeting. However, if August CPI data, especially PCE-relevant components, surprises to the upside, that would significantly increase the likelihood of policy firming next week." Following Thursday's PPI release, traders raised the odds for a quarter percentage point increase to more than 73%, according to the CME Group's FedWatch gauge of futures prices. However, expectations have been volatile and highly dependent on data as well as fluctuating energy prices, making the stakes for Friday's release even higher. Fed Chair Kevin Warsh has indicated a reliance on market indicators for direction on monetary policy. "The September Fed decision looked finely balanced at the turn of the month. September's surge in energy prices will likely tip the balance towards a hike when the Fed meets next week," said Bill Adams, chief U.S. economist at Fifth Third Commercial Bank. "A big surprise from the August CPI report's release tomorrow or a last-minute deal with Iran could still influence the decision." Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Friday's CPI inflation report is even more important than usual. Here's what to expect
Europe
BBC Business

Are interest rates on the way up again?

Image source, Getty ImagesByMichael RaceBusiness reporter, Reporting fromNew YorkPublished4 hours agoThere's nothing like talk of energy prices and potential higher borrowing costs to remind us that the summer holidays are well and truly over. Surging oil prices have been pushing up what drivers pay at the fuel pumps and eating away at household budgets for months, and concerns remain over whether the economic impact of the US-Iran war will drive the cost of living higher. Citing the Middle East conflict and warning inflation was "set to remain well above" its 2% target for some time, the European Central Bank recently raised interest rates to 2.5%. Other central banks are also responding, with the US and the UK poised to make interest-rate decisions next week. Up first on Wednesday is the US Federal Reserve, which has held rates steady between 3.5% and 3.75% for five meetings in a row. It last made a change - a rate cut - in December. But a strong jobs market and President Donald Trump saying he does not think oil prices will come down until the Iran war ends, which he expects to happen after November's elections, has led many on Wall Street to bet on a rate hike this month. Newly-appointed Fed Chair Kevin Warsh has remained tight-lipped on where he sees interest rates going, but his repeated comments that the central bank's focus should be on slowing price rises has further fuelled expectations of an increase. Economists at Deutsche Bank said recently that a rate hike is "the most likely policy outcome", noting comments from Warsh and other members of the Fed. Views differ somewhat, with Grace Zwemmer, US economist at Oxford Economics, expecting rates to remain unchanged, but almost universally a rate cut appears to be off the table. "The Fed Board, with its great new leader, must get smart - BE PATRIOTS for a change," he posted on social media last week. The US-Iran war and resulting higher global oil and gas prices are stoking the inflation fears. Shipments through the Strait of Hormuz waterway, one of the world's busiest oil and gas routes, have been restricted due to the war and a barrel of Brent crude is now around $105 (£78), approaching levels last seen at the outbreak of the conflict. Along with directly driving up costs for homes and businesses, higher energy prices can also make transporting goods more expensive and those extra costs can be passed down to consumers through steeper prices for the likes of food and other staples.

Are interest rates on the way up again?
Europe
The Guardian

Global bond sell-off resumes as surging oil prices stoke fears about inflation

Surging oil prices caused by intensifying tensions in the Middle East have fuelled inflation concerns across markets including South Korea. Photograph: YONHAP/EPAView image in fullscreenSurging oil prices caused by intensifying tensions in the Middle East have fuelled inflation concerns across markets including South Korea. Photograph: YONHAP/EPABondsGlobal bond sell-off resumes as surging oil prices stoke fears about inflationCrude jumps above $107 a barrel amid concerns over Middle East conflict and out-of-control government borrowing Nervous investors across big economies have been dumping government bonds, driving up the cost of borrowing, as surging oil prices amplified fears about rising inflation. The cost of a barrel of oil jumped 6% to above $107 on Thursday amid concerns that advances by Houthi rebels along the Red Sea coast in Yemen could choke off Saudi crude exports. The global bond sell-off that has rocked markets in recent weeks resumed in response to the news from the Middle East – which came against a backdrop of escalating concern about out-of-control government borrowing. Higher oil prices, which had already climbed since hostilities resumed in the Iran war, are expected to drive up inflation, prompting central banks to raise interest rates and putting the brakes on economic growth. Donald Trump suggested on Wednesday that the conflict with Iran could continue until “immediately after” November’s US midterm elections, at which point he claimed oil prices would be “tumbling downward”. The European Central Bank (ECB) raised its main interest rate to 2.5% on Thursday, with its president, Christine Lagarde, saying: “We believe inflation will be longer lasting than we had anticipated.” “The conflict in the Middle ​East continues ​to ⁠generate inflation pressures, and inflation is set to ​remain well above target for ​an ⁠extended period,” she added. View image in fullscreenThe ECB president, Christine Lagarde, said eurozone inflation would remain above the central bank’s target for longer than expected. Photograph: Filip Singer/EPAAs Thursday’s sell-off gathered pace in London, the yield, or interest rate, on 10-year UK government bonds surged above 5.37% – the highest cost of borrowing since 2007 – creating a fresh headache for the new chancellor, John Healey. With less than seven weeks to go until Healey’s first budget on 28 October, higher interest rates on the UK’s debt-pile will raise the cost of future investment projects and eat into the Treasury’s fiscal headroom. At the same time, the prospect of higher energy bills as oil and gas prices rise is likely to intensify pressure on the government to help consumers to weather the winter. Unleaded petrol prices have already risen by 6p a litre since the start of September, according to the motoring organisation the RAC, while the prospect of higher inflation has prompted some banks to raise their mortgage rates.

Global bond sell-off resumes as surging oil prices stoke fears about inflation
Europe
BBC Business

Can Europe recharge its battery industry?

Europe has taken some big swings in the battery industry in recent years and has made a couple of high-profile misses. Both Sweden's Northvolt, external and Norway's Morrow, external filed for bankruptcy and there are fears in Europe that the continent has missed another technology shift. With more transport and industry switching from fossil fuels to electricity, batteries are likely to be a growth business. But the length of time required to bring new products to market, coupled with brutal competition, especially from China, means taking a substantial risk. Could the answer lie at an almost unimaginably small scale? An increasing number of investors and researchers think so. A single nanometre is one-billionth of a metre, but it's at that level that some of the most consequential work is being done. "If you can make this work, it touches so many industries [but] it's a risky business," says Christian Rood, chief executive of Dutch tech firm LeydenJar. Named after a 18th century precursor to electric cells, LeydenJar uses a technique known as plasma deposition to make a lighter, more efficient anode – an essential component of all batteries. Silicon is a highly effective and cheap material to use in anodes, but pure silicon expands and contracts as the battery operates and is recharged, which causes it to crack. However, using plasma deposition, LeydenJar can - layer by tiny layer - make an ultra-thin pure silicon foil which resists cracking, allowing a significant increase in battery life, charging speed, and energy density (up to 50%, according to LeydenJar). "Where normally a pure silicon anode would fall apart, [this] remains stable, so it was a very wonderful invention," says Rood. Commercial-scale production will start at the end of 2026, but it has taken 10 years to get to this point – the very definition of the time and investment required for so-called Deep Tech innovations.

Can Europe recharge its battery industry?
North America
CNBC Finance

25 years after 9/11, the U.S. starts rolling back travel restrictions, from liquids to gate access

The Sept. 11, 2001, terror attacks reshaped how we travel, from how we pack our toiletries to what we wear when we fly. Airport checkpoints for almost a quarter century for most travelers have meant shoes off. Limitations on liquids. And no tearful, cinematic gateside farewells or joyful welcomes. But 25 years later, the U.S. government is starting to ease some of the restrictions, which include measures that were tied to other attacks attempted in the months after 9/11. Last year, the Department of Homeland Security, which was formed after the attacks, said flyers can leave their shoes on at airports, a major change for travelers going through regular security. That rule was introduced after Richard Reid, who became known as the "shoe bomber," tried and failed to ignite explosive material in his shoe on a Paris-to-Miami flight in December 2001. Rules for liquids are officially unchanged. Those regulations for liquids in carry-ons stem from 2006, when British officials foiled a plot to bring liquid explosives on flights. New scanners installed at some airport checkpoints allow travelers to leave liquids in their bags before going through screening, though availability varies by airport and checkpoint. Limits on liquid container size remain in effect. "The technologies today are better than they were a long time ago and some of the technology that's been deployed is better than it was five years ago," said Jeff Price, a professor at the Metropolitan State University of Denver's Department of Aviation and Aerospace Science and an airport management consultant. Another change since that era is the number of options customers have for airport screening. The Transportation Security Administration, for $76.75 covering five years, offers PreCheck, in which travelers undergo prescreening services and can use expedited screening lanes. "If you've got a few bucks, yeah, you can reduce the amount of screening and jump the line," Price said. "The other side of that is when you do become a member of PreCheck, you give up a lot more of your personal data to the government, and that's the trade-off." There's also a private option with Clear, with a shorter identification check line, in exchange for prescreened biometric data. TSA this week launched a free program allowing eligible trusted travelers, including TSA PreCheck members, to apply for access to secure gate areas without a boarding pass. The program is called "Gateside," and the agency has rolled it out at 13 U.S. airports, including Dallas Fort Worth International Airport, Los Angeles International Airport, Detroit Metropolitan Wayne County Airport and Salt Lake City International Airport.

25 years after 9/11, the U.S. starts rolling back travel restrictions, from liquids to gate access
Europe
BBC Business

AI boom helps drive surprise UK growth in July

Image source, Getty ImagesByEmer MoreauBusiness reporterPublished11 September 2026, 07:13 BSTUpdated 1 hour agoThe UK's economy grew faster than expected in July partly helped by businesses using artificial intelligence (AI). The economy expanded by 0.4%, the Office for National Statistics (ONS) said, whereas analysts had predicted no growth. Growth in July was helped by a strong performance from the services sector, and particularly computer programming. Experts said the figure showed the UK economy was proving resilient in the face of shocks such as the war in Iran, but they expect growth to slow in the months ahead as high energy prices affect households. According to the ONS director of economic statistics, Liz McKeown, there was evidence that businesses involved with AI and related technologies helped to boost the sector, not just in July but in May and June as well. The ONS said many of the IT businesses reporting the largest turnover "appear to be involved with AI", though it said it is difficult to quantify the exact impact of AI. McKeown also said some businesses had said that the warm weather and football world cup had affected activity in July, although she said the effects "differed across industries, benefitting some businesses while creating challenges for others". The ONS said that in the three months to July, which gives a better underlying picture, the economy grew by 0.4% compared with the previous three months. Rob Arnold, co-founder of Ascendea, an AI firm which employs nine people, believes the UK hasn't seen the real economic growth potential from the technology yet. He says his company is able to develop apps for other businesses "100 times quicker at a 50th of the cost" because of AI, but that the UK government needs to do more to invest in the sector as there are currently better opportunities in the US. He knows a few small UK-based AI firms that have either moved to the US or are thinking of doing so due to a lack of UK government support. Alongside grants and funding, he says the government also needs to invest in training companies on how to use AI as it can be dangerous if not understood properly. "It's like playing with a weapon," he says.

AI boom helps drive surprise UK growth in July
North America
CNBC Finance

Ford announces $1 billion investment at Kentucky plant following DOT criticism on China

DETROIT — Ford Motor on Thursday announced a $1 billion investment to build a new paint shop at its crucial Kentucky Truck Plant. The facility, which Ford has called its most important and profitable plant globally, produces the automaker's large F-250 to F-550 Super Duty trucks as well as the Ford Expedition and Lincoln Navigator SUVs. The announcement comes two days after Transportation Secretary Sean Duffy expressed "profound concern" about the automaker's U.S. "manufacturing integrity" and ties to Chinese companies that the Trump administration believed could be detrimental to the Detroit carmaker and U.S. automotive industry. Ford, which regularly touts its position as the top-producing automaker in the U.S., called the comments a "wrongheaded attempt to capture headlines." Paint shops are a critical and costly part of a vehicle assembly plant. The new facility for Ford is expected to replace the plant's "existing paint shop and further [modernize] one of Ford's most important manufacturing operations," the company said in a press release Thursday. The Detroit automaker said it would break ground on the facility later this year. A Ford spokesperson declined to disclose when the company expects to complete the new paint shop. Ford noted the investment is the latest following roughly $4 billion in announcements for its Kentucky facilities in recent years. "These investments demonstrate our confidence in Kentucky's workforce, our commitment to American manufacturing, and our belief that the future of mobility and energy will be built right here in the United States," Ford CEO Jim Farley said in the release. Duffy's criticism was addressed to Farley in a letter released by the Trump administration Tuesday. Following a lengthy response from Ford, the White House's Rapid Response account on X released a positive statement Wednesday, calling Ford "a GREAT American company." Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Ford announces $1 billion investment at Kentucky plant following DOT criticism on China
North America
CNBC Finance

OpenAI targets work of Wall Street junior bankers with new ChatGPT for Financial Services

OpenAI is taking aim at some of Wall Street's most labor-intensive tasks with a new version of ChatGPT designed to research companies, analyze financial data and generate the presentations that investment bankers rely on. The product unveiled Thursday, called ChatGPT for Financial Services, is a tailored version of its enterprise product, ChatGPT Work, that was made with "design partners" Morgan Stanley and Evercore, according to OpenAI's vice president of product, Nick Turley. It uses the artificial intelligence company's latest and most advanced model, GPT-6 Astra. The rollout puts OpenAI deeper into territory traditionally occupied by Wall Street's entry-level bankers, the recent college graduates called analysts and associates that the industry has employed for decades to research deals and create pitchbooks. It also showcases the company's continued push into enterprise offerings as it gears up for what is widely expected to be a blockbuster initial public offering. "We're effectively teaching ChatGPT to research like an analyst and back up its conclusions like an analyst as well," Turley said during a briefing announcing the new product. OpenAI has spent much of the last year racing to win over business customers in the fiercely competitive enterprise market, where it's working to fend off rivals including Anthropic and Google. Anthropic announced its own tailored solution for Wall Street, Claude for Financial Services, last year. Sarah Friar, OpenAI's finance chief, told investors in August that the company's enterprise business accounted for more revenue than its consumer business, which took off following the launch of ChatGPT in 2022. Turley told reporters during the briefing OpenAI plans to release tailored solutions for "a number of sectors" beyond financial services. In a live demonstration of the new offering, Turley showed the platform analyzing a potential M&A target, pulling financial figures from industry-standard data sources and creating a formatted PowerPoint deck based on a bank's preformatted style guide. "It's very easy to make slides that look good, but it's much harder to make slides [that] actually make sense," Turley said. "To get here, ChatGPT had to choose the relevant peers. It had to pull the prices into a spreadsheet. It had to check the chart against the data, and it had to explain the sell-off and the rebound." What separates this version from the product it's based on, ChatGPT Work, is native data access from LSEG, Daloopa and PitchBook that furnishes the system with things like financial statements and earnings transcripts as well as automated access to users' existing data subscriptions. Other features tailor-built for finance include citations that allow users to trace data back to source filings and audit charts as well as administrative controls for sensitive deal materials. While Turley said that there was "a ton of demand" for this version of ChatGPT, which is initially geared toward investment banking and equity research, he declined to name banks that have signed on for it.

OpenAI targets work of Wall Street junior bankers with new ChatGPT for Financial Services
Europe
BBC Business

Alstom to build new battery-electric train fleet

Work to create the UK's first battery-electric trains for long-distance main line services is set to begin in 2028, the Department for Transport (DfT) has announced. The 29 new Adessia Stream trains are expected to enter service in 2034 and will be built at Alstom's Litchurch Lane factory in Derby. The government said the investment of almost £1bn would help support more than 350 jobs at Alstom and a further 6,000 jobs across the UK supply chain. Prime Minister Andy Burnham said the new trains would deliver "faster, more reliable journeys to the north and thousands of British jobs for the next generation". He added: "I've lost count of the number of times someone has stopped me to tell me about the train that never came. "And when that happens, it means missed shifts, missed appointments, and missed opportunities. Today, that starts to change." The DfT said the trains would help deliver the TransPennine Route Upgrade's aim to boost capacity by 30%, with thousands of additional seats a day across the Pennines by the early to mid-2030s. They will run between key destinations across the north including Liverpool Lime Street and Scarborough, Manchester Airport and Saltburn, and Manchester Piccadilly and Hull. On sections of the railway that are not electrified, where trains currently use diesel engines, the new electric models would be able to run without emissions, the government said. The DfT added journey times would be cut by up to 10 minutes between Manchester and Leeds, and up to 14 minutes between Manchester and York. The trains will be bought by rolling stock company Rock Rail and leased to TransPennine Express, the government added. Alstom, which boasts the largest rolling stock train manufacturing site outside of China, secured a £370m contract in 2024 to produce 10 new London Elizabeth line trains.

Alstom to build new battery-electric train fleet