Good morning. The EU is preparing for a no-deal scenario with the US. Home sellers in the UK are cutting prices at a record pace. And Microsoft’s server software comes under widespread cyberattack. Listen to the day’s top stories.
Trade latest: European Union envoys are set to meet as early as this week to formulate a response to a possible no-deal scenario with Donald Trump, whose tariff negotiating position is seen to have stiffened ahead of an Aug. 1 deadline.
Trump’s tariff onslaught will probably force further measured easing in coming months by most of the 23 central banks featured in this quarterly guide. Policymakers at the European Central Bank may hold rates steady this week before cutting later in the year. And read about the ECB’s newest rate setter, who has seen his fair share of upheaval.
Britain and Germany are set to pledge new air defense systems for Ukraine as the UK government pushes for a “50-day drive” to arm Kyiv and bring Vladimir Putin to the negotiating table. Volodymyr Zelenskiy proposed new talks with Moscow. Russia unleashed a drone and missile attack on Ukraine’s central and western regions.
Corporate roundup: Microsoft’s server software was attacked by unidentified hackers, with cybersecurity analysts warning of widespread security breaches across the globe. Alaska Air sought a temporary grounding of all planes for its main brand and Horizon Air unit, citing an IT outage. And Ryanair's profit more than doubled, with the budget airline seeing strong travel demand across its network for summer.
A supermarket in Barcelona. Photographer: Angel Garcia/Bloomberg
A 300% spike in Australian lettuce prices. A 50% rise for European olive oil and 80% for US vegetables. Researchers from the Barcelona Supercomputing Center and the ECB have traced back those price jumps to extreme weather they say is linked to climate change.
Sixteen weather events aroundthe world between 2022 and 2024 were analyzed by the group, with many so unusual that a given region had experienced nothing like it prior to 2020.
Consumers globally say they are feeling the effects of climate change on their grocery bills, making food unaffordable for some andposing a challenge for central bankers trying to tame inflation.
British households’ food bill was £361 more in 2022 and 2023 due to climate change, according to estimates by the nonprofit Energy and Climate Intelligence Unit.
Winter is coming for oil—and not in a good way, writes Javier Blas. Shifting seasonality means global demand will be lower in the fourth quarter than the third.
When Apple introduces its first foldable iPhone at the end of next year, it will be entering a product category that’s already seven years old. But with its brand power, marketing muscle and engineering refinements, Apple could turn a niche product into a global hit.
