ECB keeps rates steady as it awaits clarity over trade
Financial markets scaled back bets on future easing, however as ECB President Christine Lagarde delivered what was viewed as an overall upbeat assessment of the region's economic outlook.
The ECB cut its policy rate to 2 per cent last month, half its level of a year earlier, after taming a surge in prices that followed the end of the Covid pandemic and Russia's full-scale invasion of Ukraine in 2022.
With inflation now back at the ECB's 2 per cent goal and expected to stay there, policymakers chose to stay put on Thursday, just as trade talks between the European Union and United States appeared to be in their final stretch. Reports have suggested a possible deal based on a 15 per cent tariff on US imports of EU goods.
'We are attentive to where the negotiations are heading (but) we take the news one day at a time,' Lagarde told a press conference.
'The sooner this trade uncertainty is resolved, the less uncertainty we will have to deal with and that will be welcomed by many economic actors including ourselves.'
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
While the White House has dismissed the reports as speculation, 15 per cent tariffs would be roughly halfway between the ECB's baseline and severe scenarios for the eurozone economy, presented last month, but milder than Trump's threatened 30 per cent.
The ECB's June estimate showed that higher US tariffs would result in lower growth and – depending on any EU retaliation – lower medium-term inflation in the eurozone.
Even the ECB's baseline projection from June, which incorporates 10 per cent tariffs from the United States, saw price growth below 2 per cent over the next 18 months.
Lagarde acknowledged that scenario did include the possibility of a temporary undershooting of the inflation target but said it was not a cause for concern.
'We are in a good place because our projections point to inflation stabilising at targets in the medium term,' she said, noting that supply bottlenecks and trade disruption caused by tariffs could also emerge as inflationary.
That upbeat assessment pushed short-dated German bond yields to their largest daily rise in two months as traders took it as a signal that another series of rate cuts next year might be unlikely.
Underlining the uncertainty, economists commenting on the meeting's outcome offered markedly divergent views on the way forward, with some seeing scope for further cuts and others suggesting the ECB's next move could even be a hike.
The eurozone economy is showing some tentative signs of acceleration, but growth remains modest. Companies, while still optimistic about an upturn ahead, report starting to feel the pinch from tariffs on their profits.
On the bright side, eurozone banks have seen rising loan demand and policy uncertainty has not yet translated into an economic or market downturn.
After a short-lived selloff in April, investors have taken the trade turmoil in their stride, with European equity indices close to new highs, thanks also to Germany's newly found appetite for spending.
In fact, erratic policy-making in the United States, including Trump's relentless criticism of Federal Reserve Chair Jerome Powell, has lured foreign investors to eurozone assets. That briefly pushed the euro to its highest level against the dollar since September 2021 – US$1.1829 – earlier this month.
ECB board member and outspoken hawk Isabel Schnabel has even said the central bank should watch out for price hikes caused by tariffs and that the bar for further cuts was 'very high'.
But the euro's appreciation has unnerved other policymakers, who fear a stronger currency would make European exports less competitive and contribute to pushing down inflation.
Lagarde on Thursday repeated the ECB's official line that it monitors the exchange rate closely but does not target a level for the euro. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
6 hours ago
- Straits Times
SG60 F&B icons: Honouring 14 heritage brands that have never lost their charm
Find out what's new on ST website and app. Brothers Alvin (left) and Allan Choo are the fifth generation of Choos to run Kwong Cheong Thye. SINGAPORE – The nation may be celebrating its 60th anniversary in 2025 , but there are some home-grown brands which are even older than it. Trusted kitchen staple SCS Butter turns 120, while Singapore Zam Zam, one of the oldest restaurants in Singapore , marks 117 years. Familiar household names such as Lam Soon, Old Chang Kee, Samy's Curry and Yeo's have stood the test of time to become heritage brands. In this third instalment of ST Food's four-part SG60 weekly series, The Straits Times shines the spotlight on 14 of them . Find out how these brands, trendsetters in their own ways, continue to thrive and stay relevant in the F&B landscape. The series kicked off on July 13 with 20 beloved dishes and drinks, followed by 14 laudable food and beverage brands last week. Next week, it culminates with 12 key people and events that have played a significant role in the Republic's vibrant food culture. Komala Vilas Then Prime Minister Lee Hsien Loong with Indian Prime Minister Narendra Modi at Komala Vilas restaurant in 2015. PHOTO: KOMALA VILAS Established in 1947, Komala Vilas restaurant has been a reliable go-to for authentic Indian vegetarian cuisine. Top stories Swipe. Select. Stay informed. Singapore Almost half of planned 30,000 flats in Tengah to be completed by end-2025: Chee Hong Tat Asia Cambodia calls for ceasefire with Thailand after deadly clashes Asia Behind deadly Thai-Cambodian clashes, a bitter spat between two dynastic leaders Multimedia Lights dimmed at South-east Asia's scam hub but 'pig butchering' continues Singapore Black belt in taekwondo, grade 8 in piano: S'pore teen excels despite condition that limits movements Business How parents can prevent disputes over their properties Sport Mikkel Lee gets back up to speed as Singapore swimmers eye 2028 Olympics spots Business Banking and finance jobs will change but won't disappear as AI becomes the new normal: Accenture Its flagship is at 76 to 78 Serangoon Road, while its adjacent sweet shop is a stone's throw away in Upper Dickson Road . Its other outlet, which opened in 2024, is at 291 Serangoon Road. The extensive menu – with dishes traditionally served on banana leaves – includes dosai, idly, tantalising thali meals and tandoori specials. Komala Vilas' rice meal. PHOTO: LIANHE ZAOBAO FILE In 2015, it made history with a visit from Indian Prime Minister Narendra Modi, who savoured idly, vadai and dosai there with Singapore's then Prime Minister Lee Hsien Loong and his wife Ho Ching. It weathered the Covid-19 pandemic, but shuttered a few outlets over the past few years because of manpower shortages. However, it remains poised to continue the family legacy, with third-generation owner Rajakumar Gunasekaran fronting the business. Kwong Cheong Thye Kwong Cheong Thye's soya sauces. PHOTO: KWONG CHEONG THYE Chefs swear by its soya sauce. Peek into the kitchens of Singapore's top hotels and restaurants – including Peach Blossoms at Parkroyal Collection Marina Bay and Summer Pavilion at The Ritz-Carlton, Millenia Singapore – and, chances are, they are using Kwong Cheong Thye's sauces. This home-grown Singapore brand got its start in 1892. Founder Choo Cheong Chan left Jiangmen in Guangdong province, China, and came here for better opportunities. He set up Kwong Cheong Thye in Jalan Sultan, making soya sauce for food suppliers. Today, the sauce, which is fermented for six months, is brewed in its factory in Senoko Avenue. Mr Alvin Choo, 31, and Mr Allan Choo, 30, are the fifth generation of Choos running the business. Brothers Allan (left) and Alvin Choo are the fifth generation of Choos to run Kwong Cheong Thye. PHOTO: ST FILE They are growing it. Soon, a facility in Senoko Crescent will open and it will be used to make just soya sauce. The current factory will produce the brand's other sauces, including oyster, chicken rice, chilli crab and black pepper crab sauces. Some 80 per cent of its business is supplying to trade – top hotels and restaurants here and abroad use its products. About half its sauces are exported overseas to Australia, China, Japan, the United Arab Emirates, Britain and countries in this region. Kwong Cheong Thye, which has retail shops in Geylang and at Jewel Changi Airport, also produces fresh and dried noodles under its My Noodle brand, and makes mooncake paste. Lam Soon Knife cooking oil is produced by Singapore brand Lam Soon. ST PHOTO: KUA CHEE SIONG You will not have to look hard in your home to find a Lam Soon product. Knife and Naturel cooking oil, UFC Refresh Coconut Water, UFC canned pineapple, bio-home laundry detergent, and NooTrees toilet paper and tissues are all produced by this Singapore brand. Founder Ng Keng Soon came to Singapore from Xiamen, China, and started Lam Soon Cannery in 1929. He named the company Lam Soon, using the Hokkien word for 'south' – as Singapore was then considered part of the Southern Seas – and part of his name. He started off producing soya sauce, and after World War II, expanded the range of products to include canned food, cooking oil, coffee and laundry soap. The company operates in Singapore, Malaysia, Thailand and Vietnam, and exports its wares to more than 50 countries. Over the decades, it has kept up with consumer needs and preferences. When people became more health-conscious, it introduced the Naturel brand of organic olive oil from Spain. It also sources products from overseas, such as organic pasta from Italy, organic brown and red rice from Thailand, and sesame oil from Japan, and markets them under its brands. Lana Cakes Chocolate fudge cake from Lana Cakes. PHOTO: ST FILE Many Singaporeans have grown up with one default birthday cake – Lana Cake. You know, the chocolate sponge cake covered with shiny chocolate fudge? Yes, that's the one. Mrs Violet Kwan, 97, started baking her famous cakes in 1964. Her sister-in-law Lani was visiting from Hawaii and taught her to make blueberry, orange and chocolate cakes. Mrs Kwan's friends loved them and she started a home business. In 1975, she opened her shop in Greenwood Avenue, where it still stands. Her son Jason Kwan, 59, gave up his job as a banker in Tokyo to run the business and preserve her legacy. Lana Cakes founder Violet Kwan and her son Jason Kwan, who now runs the business. PHOTO: ST FILE What makes that cake so special? Why do long queues form just to order it? Why is the kitchen run off its feet during festive seasons? The secret might lie in the lightness of the sponge cake and the jelly-like texture of its chocolate fudge frosting. Each cake is baked from scratch and frosted by hand in a not-very-big kitchen. Of course, Lana sells more than just chocolate fudge cake. Some popular creations include Yuzu Indulge, a chiffon cake made with yuzu juice from Kochi prefecture in Japan; Blueberry Cake ; and Coconut Dream, featuring hand-squeezed coconut cream in the chiffon cake, with buttercream and gula melaka cream in the middle. Lana Cakes' Lana-To-Go is its famous chocolate fudge cake packed into a jar, with even more fudge. PHOTO: ST FILE Lana is not stuck in time. In January , Mr Kwan introduced Lana-To-Go, which comes in plastic jars. That same chocolate sponge cake, but with more fudge – 70 per cent of the jar is fudge. After six decades, Lana still knows the way to a Singaporean's heart. Old Chang Kee Old Chang Kee's Chilli Crab'O puff and Soft Shell Crab Tempura with Mantous. PHOTO: OLD CHANG KEE From its humble beginnings as a small stall near the then Rex Cinema in Mackenzie Road in 1956, Old Chang Kee has grown into a mighty empire of convenient snacking on the go. The halal-certified chain's snacks include fishballs, chicken wings, carrot cake and nuggets. And, particularly with its iconic curry puff, the brand has always stayed on trend. It has featured bold flavours from nasi lemak to durian to its recent chicken rendang-filled Camo Puff, wrapped in a striking camouflage-patterned pastry in celebration of SAF Day. Now, in honour of SG60, its popular Chilli Crab'O puff returns – complete with red and white hued pastry and actual crab meat. Adding to the occasion is Soft Shell Crab Tempura with Mantous in a cup. Both are available till Aug 10. The listed company – which marks its 70th anniversary in 2026 – runs more than 70 outlets islandwide and more than 100 outlets globally, with branches in Malaysia, Indonesia and Britain. It also operates casual chain Curry Times, as well as a catering arm and food truck for events. Want Old Chang Kee even closer to home? It sells its local food pastes – curry, laksa and chilli crab – at selected Curry Times and Old Chang Kee outlets. Phoon Huat Phoon Huat is a go-to for baking ingredients and tools. ST PHOTO: TAN HSUEH YUN Phoon Huat's 20 shops, many located in Housing Board estates, are places people go to to buy baking ingredients and tools. Just before the Mid-Autumn Festival, there is always a rush for mooncake paste and moulds. But it was the Covid-19 pandemic that showed just how important Phoon Huat is to Singapore. Sequestered at home, people turned to baking. They queued to get into its stores to stock up on supplies. Those queues ran long – the number of people in them and the need for social distancing meant people waited for hours in line. Cue temper tantrums and tears. Who knew flour, sugar, cream cheese and chocolate could cause consumer meltdowns? Founder Wong Tai Fuang probably did not, when he came to Singapore from Hainan, China, and opened a small shop in Middle Road in 1947. He made deliveries on his bicycle. In 1958, he launched the RedMan brand, which is still around . Products started rolling out – RedMan rose and orange concentrates in the 1960s and double action baking powder in the 1970s. In the 1980s, it launched Emulco, a concentrated liquid that provides flavouring and colour to baked goods and desserts. Phoon Huat sells bread and other types of flour from Japan, gluten-free options , high-end vanilla and Japanese salt. Other than baking supplies, it also carries frozen seafood, beef and meat alternatives. Prima Taste Prima Taste's Singapore Laksa Wholegrain LaMian. PHOTO: PRIMA TASTE No instant noodle has put Singapore on the global map quite like Prima Taste's Laksa LaMian and Wholegrain LaMian. The Wholegrain LaMian version has reigned supreme in The Ramen Rater's Top Ten Instant Noodles Of All Time for 10 years, all the way to the recent 2025 edition. It hit the top spot for its 'thick, chewy noodle with an artisan feel' and an 'out of this world' broth. Not to be outdone, the normal Laksa LaMian version was declared a top pick in a list of best instant noodles as well, published in December 2024 by Wirecutter, The New York Times' product review section. The review also lauded the chewy noodles, as well as the heady mix of pungent fermented shrimp for a 'transportive' bowl. The versatile non-fried Plain LaMian and Wholegrain LaMian are hits as well. Other LaMian flavours include curry, prawn soup and chilli crab. Since 1998, home-grown company Prima Taste – available in more than 30 markets – has stuck to its mission of preserving heritage dishes such as laksa, prawn noodles and fish head curry, by making them easily replicable at home via its sauce kits and instant noodle packets. They are lifesavers for amateur cooks, and offer a taste of home to Singaporeans overseas. Samy's Curry Samy's Curry restaurant in Dempsey Road. PHOTO: ST FILE For people who fear heat and humidity, there is an air-conditioned dining area. But really, a meal of fish head curry at Samy's Curry is best enjoyed under the whirring fans in the main dining hall, set amid the lush greenery in Dempsey Road. Founder M. Veerasamy moved his restaurant there in the 1970s, long before it became a gourmet enclave. He was from South India and came to Singapore to work as a cook for a group of Indian merchants. In his free time, he experimented with recipes, asking neighbours to try his dishes. They became so popular, he started his own business. That was in the 1960s in Tank Road. As his food became more popular, he moved to Pearl's Hill and then to Dempsey Road. The family is still running the restaurant. Samy's Curry is famous for its masala chicken and fish head curry. PHOTO: ST FILE Masala chicken, fish head curry, fish cutlet and Mysore mutton are the signature offerings Samy's is known for. And, of course, eating everything with rice piled on banana leaves never loses its charm. SCS Butter SCS Butter's 120th-anniversary cooler bag. PHOTO: SCS BUTTER A pioneer in the butter category since 1905, SCS Butter made the product accessible at a time when cold-chain distribution was a luxury. Made with 100 per cent grass-fed cow's milk, the kitchen staple – whether as a block or in smaller portions – is suitable for baking, cooking and spreading on bread. It remains a fixture on supermarket shelves and online platforms, easily recognised for its iconic SCS star logo. And it continues to innovate. The latest addition to the SCS range, Garlic & Herb Spreadable Butter , is available at all supermarkets and online platforms. With a minimum purchase of $12 on any SCS products, customers will receive a limited-edition 120th-anniversary cooler bag, while stocks last. SCS Butter's new Garlic & Herb Spreadable Butter. PHOTO: SCS BUTTER Its milestone celebrations, in line with SG60, will showcase recipes for in-store sampling, of dishes such as butter corn and butter rice with corn and tuna. SCS, which stands for Singapore Cold Storage, was started by home-grown supermarket company Cold Storage. Zurich-headquartered DKSH, a leading market expansion service provider across Asia and beyond, acquired the SCS brand in 2019, through its purchase of investment holding company Auric Pacific's distribution business. Singapore Zam Zam Restaurant Singapore Zam Zam in North Bridge Road is one of Singapore's oldest restaurants. PHOTO: BT FILE One of Singapore's oldest restaurants is Singapore Zam Zam in North Bridge Road. Mr Abdul Kadir, an Indian Muslim from Kerala, opened it, and the two-storey restaurant is still slinging its signature murtabak, briyani and teh tarik to this day. The restaurant is named after the Zamzam Well in Mecca, which contains holy water. Murtabak, for the uninitiated, is prata dough stuffed with meat, onions and spices and fried till crisp . The restaurant offers mutton, beef, chicken and sardine versions. It also serves dum briyani, where the rice and meat are cooked together in a pot. Diners have a choice of mutton, beef, chicken, fish, prawn, egg and even venison. Zam Zam, which marks 117 years in 2025, has attracted controversy over the years. Its rivalry with neighbouring restaurant Victory boiled over in 2015, when former Zam Zam director Zackeer Abbass Khan masterminded a plot to slash a Victory supervisor in the face. He was convicted in 2020 and sentenced to six years' jail and six strokes of the cane. Sunshine Bakeries Sunshine Bakeries' Dark Rye Komugi Loaf. PHOTO: SUNSHINE BAKERIES Before Singapore became flooded with bakeries galore, there was Sunshine Bakeries – founded in 1930 as a small family-run outfit in Geylang. Known as the nation's first commercial bakery, it remains a leading manufacturer for baked products. Besides the classic white loaves, its offerings have evolved to include wholemeal loaves for the health-conscious, and convenient options such as wholemeal cream buns. In 2016, it launched its Smart-Carb Low GI (glycaemic index) 37 Bread, followed by Hokkaido Milk Toast the following year. More recently, it debuted a premium Shokupan Gold series, which includes a Butter Shokupan Loaf and Purple Sweet Potato Shokupan Loaf. On July 21, it rolled out premium wholemeal loaf range Komugi Gold, with its Dark Rye Komugi Loaf. The loaf is blended with six grains and seeds – oats, barley, dark rye, flax seeds, chia seeds and sunflower seeds – and offers a healthy, crunchy alternative to white bread. Tiger Beer Tiger Beer is one of Singapore's most recognisable exports. PHOTO: ST FILE It is one of Singapore's most notable exports and, besides the Singapore Sling, the most sought-after local drink for visitors here. So, it is only fitting that Raffles Hotel – synonymous with the Singapore Sling – is said to be the birthplace of Tiger Beer. ST's recent deep dive into Tiger Beer's story highlighted the hotel's Bar & Billiard Room's interesting connection to the tiger: One was shot and put down in the bar in 1902 after it escaped from a nearby circus. In 1932, the beer debuted with the slogan 'Time for a Tiger'. A print advertisement for Tiger Beer in the 1930s. PHOTO: ST FILE In recent years, it brewed newer flavours such as the Tiger Soju Infused Lager – Gutsy Grape and Tiger Radler in Lemon, Grapefruit and White Grape flavours. Today, it is the nation's roaring success in more than 60 markets worldwide. It marks SG60 with a special collaboration with iconic game brand Monopoly. To play, buy Tiger Beer products from participating supermarkets, convenience stores or e-commerce platforms to receive digital Property Cards till Oct 5. Collect all properties of a single colour and stand a chance to win prizes such as a BYD Seal Dynamic car or a 16-inch Apple MacBook Pro. Or you can get physical Property Cards from participating coffee shops till Aug 31 and stand a chance to win 100g or 50g gold bars. Tiong Hoe Specialty Coffee Tiong Hoe Specialty Coffee dates back to the 1960s. PHOTO: LIANHE ZAOBAO FILE Few coffee sellers have bridged the gap between traditional local kopi and third-wave coffee quite like Tiong Hoe Specialty Coffee. The home-grown brand dates back to the 1960s, when Mr Tan Tiong Hoe started work as an apprentice in a Dutch coffee company called Mirandolle Voute & Co. In 1975, he launched Tiong Hoe Gim Kee Trading Company, which became known for its traditional Hainanese-style coffee roasted with sugar and butter. His son Jacob built on his legacy and established the business as Tiong Hoe Specialty Coffee in 2014 – right when Singapore's third-wave coffee scene was taking off. More than just a coffee wholesaler and supplier, it also showcases coffee machines and equipment, and offers workshops and mobile coffee carts for events. Tiong Hoe Specialty Coffee at VivoCity. PHOTO: LIANHE ZAOBAO FILE Besides the flagship cafe in Stirling Road, Tiong Hoe Specialty Coffee has nine other outlets, including four inside FairPrice supermarkets at VivoCity, The Woodleigh Mall, Balmoral Plaza and Parkway Parade. Its latest branch launched in April at One Raffles Place and serves a trendy yuzu coffee soda, packed with a strong double shot of ristretto. Yeo's Yeo's is known for its Asian drinks, including (from left) lemon barley, bandung and wintermelon. ST PHOTO: KUA CHEE SIONG People of a certain age know the brand by its full name – Yeo Hiap Seng. Now a zippier Yeo's, the brand is still going strong. It is known for Asian drinks and canned chicken curry. But founder Yeo Keng Lian started out making soya sauce. It was 1900 and he had a shop in Zhangzhou in Fujian province . He uprooted his family and came to Singapore in the 1930s, making and selling soya sauce. It became popular and he diversified his product range. The brand is the first in the world to put Asian drinks into Tetra Pak cartons and can chicken curry. Drinks such as chrysanthemum tea, wintermelon, lemon barley, bandung and grass jelly position it firmly as an Asian brand, as does its canned chicken curry, chicken rendang, sardines, and prawn and anchovy sambals. It also puts out instant noodles, kaya, and laksa and rendang pastes, among other offerings. With people wanting to eat and drink more healthily, its drinks also come in less sugar and sugar-free versions. To celebrate SG60, the brand has come up with a limited-edition Orchid Chrysanthemum Tea, which has orchid extract added to tea brewed with hang bai ju chrysanthemum flowers.
Business Times
7 hours ago
- Business Times
Trump arrives in Scotland for golf and bilateral talks as EU trade deal nears
[EDINBURGH/LONDON] US President Donald Trump, dogged by questions about his ties to disgraced financier and sex offender Jeffrey Epstein, arrived in Scotland on Friday (Jul 25) for some golf and bilateral talks that could yield a trade deal with the European Union. Trump told reporters upon his arrival that he will visit his two golf properties in Scotland and meet with British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen, whom he called a 'highly respected woman'. As hundreds of onlookers cheered his arrival, Trump repeated his earlier comment about a 50-50 chance of securing a deal with the EU, adding it would be his administration's biggest trade agreement thus far, if it came together. However, he said there were still 'sticking points' with Brussels on 'maybe 20 different things'. Trump said his meeting with Starmer would be more of a celebration of the trade deal already reached than continued work on it, adding: 'It's a great deal for both.' Before he left Washington, Trump said his administration was working hard on a possible trade deal with the EU, and Brussels was keen to make a deal. Von der Leyen said later she would meet Trump in Scotland on Sunday. EU diplomats say a deal could result in a 15 per cent tariff on EU goods, mirroring a framework accord with Japan reached this week and half of the 30 per cent Trump is threatening to impose by Aug 1. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump has sought to reorder the global economy after imposing a 10 per cent tariff on nearly all trading partners in April and threatening sharply higher rates for many countries to kick in a week from now. Trump says the moves will reduce the US trade deficit and bring in extra revenue, but economists warn the new trade policies could drive up inflation. 'Don't talk about Trump' Trump, facing the biggest domestic political crisis of his second term, expressed frustration about ongoing questions about his administration's handling of investigative files related to Epstein's criminal charges and his 2019 death in prison. 'You make it a very big thing over something that's not a big thing,' Trump told reporters in Scotland, urging them to focus on other prominent Americans with ties to Epstein, including former president Bill Clinton. 'Talk about Clinton. Talk about the former president of Harvard. Talk about all of his friends. Talk about the hedge fund guys that were with him all the time. Don't talk about Trump,' he said. 'What you should be talking about is the fact that we have the greatest six months in the history of a presidency.' The Epstein issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos polling. White House officials are hoping the controversy dies down while Trump is abroad, two sources familiar with the matter said. Deepen ties Trump will stay at his Turnberry property on Scotland's west coast this weekend, before travelling on Monday to a golf property in Aberdeen, where he will open a second 18-hole course named in honour of his mother, Mary Anne MacLeod. MacLeod was born and raised on a Scottish island before emigrating to the US. As he left the White House, Trump said he looked forward to meeting both Starmer and Scottish leader John Swinney, who had publicly backed Democratic candidate Kamala Harris in the 2024 US presidential election. The trip gives Trump and Starmer a chance to deepen their already warm ties, with key issues on the agenda to include ending Russia's war in Ukraine, British and US sources said. The deteriorating situation in Gaza is also likely to come up. Starmer on Thursday said he would hold an emergency call with France and Germany over what he called the 'unspeakable and indefensible' suffering and starvation being reported there, and called on Israel to allow aid to enter the Palestinian enclave. Gaza health authorities say more than 100 people have died from starvation, most in recent weeks. Human rights groups have said mass starvation is spreading even as tons of food and other supplies sit untouched just outside the territory. Since being elected last year, Starmer has prioritised good relations with Trump, stressing the importance of Britain's defence and security alliance with the US, while working to clinch the first tariff-reduction deal with the US in May. The framework agreement reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the UK's aerospace sector, but left steel tariffs in place. Starmer is expected to press for lower steel tariffs, but sources close to the matter said it was unclear if any breakthrough was possible during Trump's visit. Trump has described Scotland as a 'very special place' and made a similar trip there in 2016 during his earlier run for the presidency, but he will not necessarily get a warm welcome. About 70 per cent of Scots have an unfavourable opinion of Trump, while 18 per cent have a favourable opinion, an Ipsos poll in March found. Scottish police are girding for protests on Saturday in both Aberdeen and in Edinburgh, the country's capital. Trump will return to Britain from Sep 17 to 19 for a state visit hosted by King Charles. It will make Trump the first world leader in modern times to undertake two state visits to Britain. The late Queen Elizabeth hosted him at Buckingham Palace for a three-day state visit in June 2019. REUTERS
Business Times
8 hours ago
- Business Times
HSBC cuts equities team in Germany as CEO Georges Elhedery continues revamp
[LONDON] HSBC Holdings is planning to let go of several staff in its Germany-based equities team as it continues to pare the investment banking division outside Asia and the Middle East. The London-headquartered lender is preparing to cut equities sales and trading jobs in the Dusseldorf office, according to sources familiar with the matter. The move is part of chief executive officer Georges Elhedery's effort to revamp the investment bank, the sources said, asking not to be identified discussing private information. Europe's largest financial institution has already culled dozens of analysts in its investment bank in the last couple of months and it has shut down its US, UK and European equity capital markets and M&A units. 'Equities sales and trading supports the growth of our Prime and Wealth businesses, facilitates equities distribution to the market and supports our global clients investing in equities in both developed markets and emerging markets,' an HSBC spokesperson said in response to questions about the cuts at the German unit. Since taking over as CEO last September, Elhedery has instituted a widespread overhaul of the bank that has involved creating four new divisions under what he has called his 'simplification' plan. He has also combined HSBC's commercial and investment banking units, while making operations in the UK and Hong Kong standalone businesses. BLOOMBERG
