Economy inflation, Euros deflation ⚽

Thursday 20th saw the longest day of the year pass, not least because of Gareth Southgate’s cautious approach at the Euros. Some England fans testify that the 1-1 draw vs Denmark was the longest day of the decade, with 90 minutes managing to feel like three weeks of Mondays.

Football aside, the longest day marked the official start of summer. The summer solstice celebrations at Stone Henge were marred as Just Stop Oil campaigners seized their chance to stop oil by spraying orange custard powder on the great stones.

Presumably, if custard can save a cake, it can save a planet!

MARKETS

Data: Google Finance, 7-day Market Close

📈📉

PROJECT WATCH

🌊 Memorandum of understanding (MoU) signed to deliver a 4.9 MW tidal stream energy project in Wales. Read more

🔍 Sellafield has pled guilty to cybersecurity failings from 2019 to 2023, with sentencing scheduled for 8 August. Read more 

💼 Thames Water selects Barhale for a £36m refurbishment of the Northern Outfall Sewer, aiming to enhance sewage flow. Read more

ECONOMY & FINANCE

Has the inflation bubble burst?
UK inflation has finally dropped to the Bank of England's 2% target for the first time in nearly three years, setting the stage for possible interest rate cuts in the coming months. And let's be honest, it's about time!

The Consumer Prices Index (CPI) for May, confirmed by the Office for National Statistics, indicated that prices are still rising but at their slowest pace since July 2021. While the cost of food has fallen, motor fuel prices have seen a slight increase, just in case you thought you might catch a break at the petrol station.

Core inflation, excluding volatile elements like food and energy, fell to 3.5% in May, which is in line with expectations. But before you pop the champagne, services inflation – covering critical sectors like hospitality – only nudged down from 5.9% in April to 5.7% in May, making analysts slightly cautious.

As excitement builds towards the general election next month, Prime Minister Rishi Sunak hailed the drop in inflation as "great news," crediting it to his "bold action" and "clear plan". Cue the eye-rolls from Labour.

So surely interest rates dropped too..?
Nope.

With the UK gearing up for another bout of high-stakes democracy, the Bank of England has decided to keep interest rates anchored at 5.25%. This sixteenth-year high remains unchanged despite inflation finally hitting the BoE’s 2% target. Consider this the seventh consecutive meeting where the Monetary Policy Committee has collectively decided that the economy needs a bit of tough love.

Patchy price hikes in services – because who doesn’t love a rollercoaster? – are keeping rates in a headlock. And for those mortgage holders already feeling the pinch, it’s like having salt rubbed into financial wounds. Swati Dhingra and Dave Ramsden, the committee’s outliers, had the gall to suggest a reduction, but the popular vote was clearly against such optimism.

In conclusion, savers might find solace in this quagmire, but for borrowers, it's a story tinged with frustration and the sweet, sweet irony of record bank profits. Alas, the BoE meet again on August 1st, leaving us to watch the financial pantomime unfold. Pass the popcorn.

Today’s Sponsor

Have a peek to help us keep the lights (and the kettle) on

Don’t just Copy, Create your Strategy

Unlock hedge fund-level strategies with Surmount's platform. Craft, analyze, execute instantly. Full Code or No-code builders, advanced analytics elevate your portfolio precision. Experience the future: advanced tools, comprehensive data for market conquest.

Start elevating your trading today!

ACROSS THE POND

Donald’s £111m windfall beats Biden
Donald Trump's presidential campaign pocketed a staggering £111m last month, £44m more than Joe Biden's efforts. Interestingly, Trump's contributions surged particularly after his conviction for falsifying business records, with one billionaire coughing up £39.5m post-verdict. Who knew a scandal could be so profitable?

A New York jury found Trump guilty of masking a "hush money" payment to adult film star Stormy Daniels. Unsurprisingly, Trump’s campaign remains tight-lipped about their bank balance, fuelling speculation the funds are vanishing into a black hole of legal fees. Ah, politics.

By comparison, Biden's camp raised a modest £67m in May and currently sits on a £167m pile of campaign cash. "We're investing in voters, unlike Trump's theatrical sideshows," said Julie Chavez Rodriguez, Biden's campaign manager. It reminds us of the difference between a blockbuster movie and a dodgy soap opera…

Trump triggers crypto chaos
The notorious former U.S. president appears to be making a bold move into the realms of bitcoin, further complicating his already tumultuous relationship with financial sanity. Following a massive Bitcoin rally and whispers of a new cryptocurrency allegedly tied to Trump, the resulting chaos has sent ripples through the market.

Trump's newfound affinity for Bitcoin has thrown the Biden administration a crypto curveball, forcing a potential policy pivot. With bitcoin’s price soaring since the FTX collapse in late 2022, speculators believed Trump backing a viral cryptocurrency, "trumpcoin" (DJT), would send crypto enthusiasts into a frenzy. Unfortunately, reality dealt a different hand.

Mark monoliths off your 2024 bingo card
The plot thickens as yet another mysterious monolith has been found jutting out from the rocks of Gass Peak, part of the vast Desert National Wildlife Refuge near Las Vegas. Authorities swiftly dismantled the gleaming, 6-foot-4 prism, leaving us all wondering how it got there in the first place. Spoiler: it wasn't aliens.

Reviving memories from the pandemic era, the appearance and rapid removal of these monoliths evoke the iconic movie "2001: A Space Odyssey". This curious artefact follows in the footsteps of its predecessors, which started materialising in 2020 in the most remote corners of the world. Incidentally, it seems as though 2024 is continuing the trend started by 2020—we're just glad it wasn’t Murder Hornets this time.

TECH

In London, a cyber gang named Qilin has disrupted the NHS by releasing 400GB of sensitive patient data stolen from Synnovis. This breach, one of the most harmful cyber attacks in the UK, affected thousands of hospital operations.

Meanwhile, in the US, TikTok is battling to avoid a nationwide ban by offering the government a "kill switch" to shut down the platform if it shares user data with China. Despite this, President Biden's legislation demands ByteDance divest its US assets by January or face a ban, citing unresolved national security risks.

In schools, the ubiquitous smartphone is both a lifeline and a distraction. Governors Gavin Newsom of California and Kathy Hochul of New York are pushing to ban smartphones in classrooms, amid growing concerns over youth mental health and social media addiction. How would that ban go down here?

British inventor Patrick Racz is embroiled in a nearly two-decade patent battle with Apple, claiming the company stole his Smartflash technology, which underpins iTunes. Despite winning a $533m jury award, it was overturned on appeal. Racz’s struggle highlights the fraught relationship between innovation and intellectual property in the tech industry.

Concrete on going green, MIT has invented a new type of concrete that is also a supercapacitor by integrating carbon black and cement. This innovation promises to turn buildings into giant batteries, storing renewable energy and potentially powering homes, offering a glimpse into a sustainable future and cementing their reputation in materials research.

POLITICS

Nigel Farage's deepfake Minecraft antics – "blowing up" Rishi Sunak’s virtual house – had everyone chuckling. Of course, it was fake, but hilariously so. Deepfakes haven’t disrupted the election much, mainly serving as obvious memes.

Farage doubled down on saying the West provoked Russia's invasion of Ukraine, despite Sunak and Starmer’s outrage. He claims he's no Putin apologist but insists the West gave Putin an excuse. Critics called his views "pub bore" material.

Keir Starmer firmly ruled out rejoining the EU, single market, or customs union, aiming to avoid Brexit-induced chaos. Responding to Kemi Badenoch’s claim that Labour would reverse Brexit, Starmer stressed economic stability and growth while seeking a better deal with Brussels without reopening old wounds.

Rishi Sunak floated penalties like driving license restrictions for 18-year-olds who refuse compulsory national service, causing a stir during a BBC Question Time special. He faced tough questions about the Conservative party’s chaotic record.

A think tank revealed a £4bn hole in social care plans across all main parties in England. The initial reform funds were spent elsewhere, leaving councils facing tough budget choices. The Conservatives, Labour, and Lib Dems pledged reforms but must bridge this financial gap.

Speaking of cash, labour massively outpaced the Tories in large donations during the campaign's second week: £4.4m vs. £292,500. Significant donations from wealthy individuals underscore Labour’s funding shift. Despite higher funding limits, the Conservatives’ fundraising falls short, spotlighting financial disparities in the campaign.

The Gambling Commission is investigating suspicious election betting, with a surge in bets on a July election before the official announcement, raising questions about insider knowledge. This betting scandal adds another twist to an already dramatic election season, who’s your bet on? Better call your solicitor.

WORLD

In Namibia, a landmark ruling declared the ban on gay sex unconstitutional, heralding a new era for LGBTQ rights. Meanwhile, Michael Usi, a comedian-turned-politician, has been sworn in as Malawi's vice president, sparking a mix of scepticism and support among citizens.

In North Korea, satellite images reveal the construction of what appears to be a border wall near South Korea, stirring tensions. North Korea has just waved goodbye to the Russian side from the North Korean tarmac. Over in India, Kannada film superstar Darshan Thoogudeepa has been arrested in connection with the murder of a fan, with the case unfolding like a movie plot.

@metrouk

Vladimir Putin has left North Korea after a two-day state visit with Kim Jong-Un. They’ve signed a pact agreeing to support each other if ... See more

Pope Francis found himself in hot water after a Filipino student criticised him for using anti-LGBTQ language.

Taiwan is bracing for protests over a controversial "contempt of parliament" bill that has polarised its citizens. The US has accused a Chinese underground banking network of aiding Mexico's Sinaloa cartel in money laundering, showcasing the complex international web of crime.

From a whiteout to a blackout, Ecuador experienced a nationwide power cut, attributed to a lack of investment in electrical systems, leaving millions in the dark and prompting calls for urgent infrastructural upgrades.

Cuppa Chat Cheat Sheet

🌟👗 Celebrities, supermodels, and athletes graced Paris's Place Vendôme for Vogue World's runway show, celebrating 100 years of French fashion. Highlights included Serena Williams in custom Off-White and Sabrina Carpenter in retro swimwear.

🧠⚕️ A UK boy with severe epilepsy became the first to receive a neurostimulator device in his skull, significantly reducing his seizures. The groundbreaking trial at Great Ormond Street Hospital aims to improve quality of life for children with treatment-resistant epilepsy.

🎤🆚 Sheryl Crow criticises the use of AI to resurrect deceased artists, calling it a betrayal of humanity. She voices concerns about AI's impact on music and society while promoting her new album, "Evolution."

🌕⏳ The Moon is slowly drifting away from Earth, causing our days to lengthen slightly. This process, driven by tidal forces, has been ongoing since the Moon's formation and will continue to impact Earth's rotation over time.

🚴‍♂️🌊 Poland's Velo Baltica cycling route offers a scenic 230km journey along the Baltic Coast, featuring dunes, windmills, and historic towns. The family-friendly trail is perfect for slow tourism and nature enthusiasts.

🎸💜 Minneapolis celebrates the 40th anniversary of "Purple Rain" with a four-day festival honouring Prince. Events include concerts by The Revolution, panel discussions, and tours of iconic Prince landmarks.

🏹⛰️ Avebury, a solstice site older and larger than Stonehenge, offers a more intimate experience with its ancient stones. Visitors can freely explore the henge, which encircles a village and is ideal for solstice celebrations.

⚽💥 Scotland's Euro 2024 hopes were dashed by Hungary's 100th-minute goal. Controversial refereeing decisions and missed opportunities led to a heart-wrenching exit for the Scots.

🏏🌟 Afghanistan secured a historic 21-run win over Australia in the T20 World Cup, keeping their semi-final hopes alive. Gulbadin Naib's standout performance was crucial in Afghanistan's first-ever victory against Australia in any format.

QUIZ TIME

There’s still tea in the pot...

Get your team together for The Teapot weekly quiz!