US-China Trade Talks Continue in London; UK Labor Market Plunges
Key Takeaways
- US and China continued trade negotiations in London on June 10, 2025.
- UK lost 276,000 jobs; May payroll declined 109,000, the largest drop since May 2020.
- Norway’s inflation declined more than expected, increasing the likelihood of rate cuts.
- Bank of Spain lowered 2025 GDP growth forecast to 2.4% from 2.7% due to US trade policies.
- World Bank approved a $1.5 billion loan to South Africa for infrastructure reforms.
Top Stories
US and China hold trade talks in London
On June 10, 2025, the US and China continued trade negotiations in London. The goal is to reach an agreement on exports of key tech and industrial goods to de-escalate their trade war, with financial markets watching closely.
UK labor market deteriorates; pound falls
On June 10, 2025, the pound weakened and UK bonds rallied as traders anticipated interest-rate cuts from the Bank of England, following data indicating a sharp deterioration in the labor market. UK employment plunged with 276,000 jobs lost, including a 109,000 decline in payroll in May, the largest since May 2020; pay growth slowed to 5.2%.
Norway's inflation declines, rate cut more likely
On June 10, 2025, reports indicated that Norway’s underlying inflation rate declined slightly more than expected in May. This strengthens the case for Norges Bank to begin cutting interest rates in the coming months.
Bank of Spain lowers Spain's GDP growth forecast
On June 10, 2025, the Bank of Spain forecasted Spain’s GDP to grow by 0.5%-0.6%, the slowest quarterly growth in almost two years. Led by Jose Luis Escriva, the Bank also lowered its 2025 growth forecast for Spain to 2.4% from 2.7% in March, citing economic uncertainty due to US trade policies.
World Bank approves $1.5B loan to South Africa
On June 9, 2025, the World Bank approved a $1.5 billion loan to South Africa. The loan aims to support structural reforms designed to boost the country's infrastructure.
Business News
UK invests £14.2B in Sizewell C nuclear project
On June 10, 2025, it was reported that the UK will invest 14.2 billion pounds in the Sizewell C nuclear project.
Starbucks cutting prices in China amid sales slump
Australian regulator trialing faster IPO process
On June 9, 2025, it was reported that the Australian regulator is testing a faster IPO process because listings have hit a decade low.
Kering acquires sun lens maker Lenti from Safilo
On June 10, 2025, it was reported that French luxury group Kering acquired sun lens maker Lenti from Italy's Safilo.
Financial Health
Deutsche Bank: US corporate defaults to increase
On June 9, 2025, Deutsche Bank reported that US corporate defaults are expected to rise due to persistently high funding costs.
Paragon Bank reports 7.3% SME lending growth
Saputo's UK operations aid margins
On June 9, 2025, it was reported that Saputo’s UK operations are contributing to margins, but the outlook for Europe is tempered.