World Street | UK inflation at 2%, Kim-Putin military pact, PBoC caution and more

World Street offers sneak peak into top global news

In top global headlines, inflation in UK has eased to Bank of England's target, and North Korea and Russia have signed a mutual defence pact. Take a look at the June 20 World Street edition.

UK tames inflation

Inflation in the UK returned to the Bank of England's target rate of 2 percent for the first time in nearly three years. The Office for National Statistics reported that inflation, as measured by the consumer prices index, fell to 2 percent in the year to May from 2.3 percent the previous month, with food prices providing the biggest downward contribution.

IPO delayed

Italian sportswear brand Golden Goose has postponed its Milan IPO citing "significant deterioration" in market conditions due to elections for the European Parliament and in France. Golden Goose, famous for its distressed-look trainers popularised by celebrities like Taylor Swift was aiming for a market capitalisation of up to $2 billion.

No rate cuts in China in 2024?

China left benchmark lending rates unchanged on June 20 at a monthly meeting, in line with market expectations. Ratings agency Fitch no longer expects China to cut its policy rate this year, postponing its expectations for a reduction to next year as the U.S. Federal Reserve maintains high interest rates. Fitch now predicts China will keep its one-year medium-term lending facility unchanged at 2.5 percent this year and reduce it to 2.25 percent next year. In March, the agency had forecasted one cut for 2024.

Fiery friendship

On June 19, Russia and North Korea signed a "comprehensive strategic partnership" deal, which includes a mutual defence pact, during President Vladimir Putin’s first state visit to North Korea in 24 years. North Korean leader Kim Jong Un warmly welcomed Putin and expressed full support for Russia, including its actions in Ukraine.

All-out-war incoming?

Israel’s army has approved an offensive against Lebanon following a surge in cross-border fire, raising concerns that the Gaza conflict might spread to the broader Middle East. Since October, Israel and Hezbollah, which controls much of Lebanon, have been exchanging fire alongside Israel's war campaign against the Palestinian militant group Hamas in the Gaza Strip.

Oil on the boil

Brent crude futures edged up in early trade this morning as Israeli tanks advanced into Gaza. Brent crude rose to $85.15 a barrel, whereas US WTI fell 0.3 percent to $81.30 per barrel. Israeli troops, supported by tanks, warplanes, and drones, advanced deeper into the Gaza Strip city of Rafah, resulting in the deaths of 8 individuals.

Sweden slaps penalty on Nasdaq

Sweden's financial supervisory authority has fined Nasdaq Stockholm $9.59 million for failing to comply with exchange rules on multiple occasions in recent years. The regulator stated, "Investigations reveal that during four company events, Nasdaq Stockholm exhibited shortcomings in its trading surveillance, which is meant to prevent, detect, and report insider trading."

(with inputs from Reuters and other agencies)