interest

Liverpool’s Dutch forward Gakpo is a transfer target for Premier League rivals Manchester City.

Virgil van Dijk is hoping Liverpool hang on to Cody Gakpo, with Manchester City reportedly closing in on the Dutch international before Tuesday’s Premier League transfer deadline.

Gakpo looks set to be pushed down the pecking order at Anfield by the arrival of Bradley Barcola from Paris Saint-Germain for a fee that could rise to $166m, making the Frenchman the second-most expensive player in Premier League history.

In three and a half years at Liverpool, Gakpo has scored 51 goals and played a major role in the club’s 20th English top-flight title in the 2024–25 campaign.

The 27-year-old has made a bright start to this season, scoring one goal and providing an assist as Liverpool have drawn their opening two games 2-2 against Newcastle and Nottingham Forest under Andoni Iraola.

But Liverpool appear open to cashing in on Gakpo, with City reportedly set to pay 75 million pounds ($101.6m).

“He’s a quality player, and I think we should keep quality players, but let’s see what the next three days bring,” said Van Dijk.

“Obviously, it’s pretty clear that I want him to stay, not only because he is the quality player that he is, but also [because] he’s a friend of mine, and I think he will be very important for us.”

Barcola has been tempted to England by the European champions despite a difficult time for the Reds, who finished fifth in the Premier League last season.

But Van Dijk is confident Liverpool will always remain a popular destination for the world’s top players.

“I think Liverpool are still one of the biggest clubs in the world. Obviously, we all know that we’re going through a transition, and you either want to be part of it, or you don’t. I’m part of it now,” he added.

“He’s [Barcola] a very good player. If he comes, he’ll be welcomed with open arms, but until it’s there, there’s no point speaking about it now.”

Iraola has had an early awakening as to why he was given the chance to replace the sacked Arne Slot, as Liverpool’s defensive issues have been exposed by Newcastle and Forest.

But in both games, Liverpool have twice come back from behind to salvage a point.

“It takes some time, but obviously we all want it to work as soon as possible and for 90 minutes,” said Van Dijk.

“That’s now two games in a row we’ve had to fight back. Obviously, it’s a good sign that we fight back, but I think we can still do much better than what we have been showing.

“We have to score more; we have to concede less. Nottingham Forest came here three times in the last three seasons and came away unbeaten, and that shouldn’t happen.”

The Trump administration is considering trading a parcel of Yosemite National Park to a private commercial developer, according to administration officials, members of Congress and documents reviewed by The Times.

The proposed deal would allow the developer to build a road connecting adjacent property it already owns in the Stanislaus National Forest to a service road within Yosemite, providing any future development on that property with unique access to the famed public wilderness, documents show.

According to a Friday report by the news outlet NOTUS, Trump administration officials have been quietly pressuring the National Park Service to approve the deal for the land despite such pressure being highly unusual and previous proposals for the land being repeatedly denied under the Bush and Obama administrations and in court.

The Department of the Interior, which includes the National Park Service, acknowledged in a statement to The Times on Friday that a land deal is under consideration, but denied any inappropriate influence from the White House.

It said negotiations for the land will comply with all federal rules for federal lands, and that “no final decisions have been made.”

An attorney for the private developer said the deal has nothing to do with politics and is in fact an “environmentally friendly” solution, in that it would dramatically cut down on the amount of driving the future upscale development’s residents would have to do to access the park.

President Trump speaks to astronauts aboard the International Space Station as he visits NASA’s Mission Control Center on Aug. in Houston, Texas.

(Win McNamee / Getty Images)

Congressional Democrats — including Sens. Alex Padilla and Adam Schiff of California — are trying to block the deal, after being informed of it earlier this year by the Land and Water Conservation Fund. The fund was created by Congress in 1964 to safeguard natural areas and public lands, and often works to acquire lands to add to national parks.

A fact sheet on the project reviewed by The Times identified the parcel by a former name, the “Hazel Green Ranch,” and said the landowner is seeking to acquire an “interest” in land within the park in order to build a new road connecting “a planned commercial development” to Big Oak Flat Road, an existing federally owned road that “provides access to the park and is a major route to Yosemite Valley.”

The fact sheet said the National Park Service does not have the authority to grant that interest, but has been working with the landowner to facilitate an “exchange” of the land for some other, unidentified parcel of land that is beneficial to the U.S., as allowed under law for federal land swaps.

The project has been identified to lawmakers, without explanation, as a “priority.” Both Padilla and Schiff have objected to it, and Padilla’s office said it is working with Senate Appropriations Committee staff to block the deal.

“The Land and Water Conservation Fund exists to acquire land and interests in land in order to safeguard natural areas, water resources, and cultural heritage — and to provide recreation opportunities for all Americans,” Padilla said in a statement to The Times. “Projects should be chosen on merit, not on an applicant’s connections to high-ranking Trump administration officials.”

Schiff, in his own statement, said Yosemite is “one of California’s natural wonders, and must be protected from further development.”

He said the Trump administration “appears hellbent on moving forward in the face of opposition from the public, Congress and the courts,” and that “the only thing the administration cares about is whether there is money involved.”

The company behind the private development is Nevada-based real estate developer and investment firm Kingsbarn Realty Capital. According to Federal Election Commission records, Kingsbarn CEO Jeff Pori is a donor to Trump, the Republican National Committee and other Republican groups.

Lanny Davis, a former special counsel to President Clinton, represents Kingsbarn, and said the notion the project is moving forward due to Trump administration pressure and Pori’s political contributions despite being environmentally detrimental is false.

He said Kingsbarn wants to build “upscale, single-family houses” on its property, but hasn’t so far because residents would have to drive 28 miles using current roads to reach the park.

To cut that distance down and make the development more feasible, it asked the National Park Service to purchase an 11-mile strip of land within Yosemite to build a shorter, more direct access road, Davis said.

The Park Service responded by saying the company could not purchase park land directly, but could purchase other nearby land of equal or greater value, and then swap it for the park land, Davis said.

It is now working with the Interior Department to identify such land, and is “very close” to doing so, Davis said — calling it a “pro environmental solution” that follows federal law and has “nothing to do” with Pori’s politics.

The White House referred questions about the proposed deal to the Interior Department.

In its statement to The Times, the Interior Department said the NOTUS story “relies on anonymous allegations to manufacture a political narrative that simply is not true. There has been no political pressure to reach a predetermined outcome, and claims suggesting the Department is secretly working to hand over National Park Service land to a private developer are false.”

If a proposal does advance, the statement said, the department will follow established procedures with “transparency and public involvement consistent with federal law. Anonymous speculation does not change those facts.”

The department did not respond to a request for more details as to the proposal.

The land in question represents a tiny portion of the sprawling Yosemite National Park, which is nearly 750,000 acres in total — or roughly the size of Rhode Island. Still, slicing off any piece of the California wilderness — considered a crown jewel in the national park system — runs counter to promises from Trump and Interior Secretary Doug Burgum.

“My Administration is committed to protecting every acre of our lands and preserving the cleanest air and water in the world,” Trump said in a presidential message on Monday.

Ceding federal lands is also anathema to land preservation groups, which expressed dismay at the idea that any piece of Yosemite might be lost, no matter how small.

Aaron Weiss, executive director of the Center for Western Priorities, said that the NOTUS reporting was “consistent” with what his organization has been hearing “for several months” — and would be inconsistent with public desires for national park lands.

“The American people have consistently said that our public lands, especially our national parks, are not for sale,” he said. “If Secretary Burgum spent more time listening to Americans instead of indulging President Trump’s whims on the National Mall, he’d understand what a terrible idea this is.”

Jayson O’Neill, a spokesman for the group Save Our Parks, said the proposed deal as described by NOTUS represented the latest attempt by the Trump administration and Burgum to gut the Park Service and “then quietly cede treasured park land to private developers, thinking nobody’s watching.”

“National parks belong to the American people, not monied developers who are part of Trump’s donor class,” O’Neill said.

Mark Rose, senior Sierra Nevada program manager for the National Parks Conservation Assn., slammed the proposed land swap as a “secretive, backroom deal” and “an attack on the American people that own this national park.”

He said Yosemite is already facing overcrowding due to “run-away lodging” development outside its borders and the Trump administration’s decision to do away with the park’s reservation system, and a new development would “exacerbate the chaos.”

“The National Park Service needs to get back to prioritizing conservation, not helping bulldoze land, cut down towering trees and construct a luxury development that will harm Yosemite’s wildlife and increase wildfire risks,” Rose said.

TWG Global — the holding company of Dodgers owner Mark Walter — rejected allegations of financial impropriety in the purchase and operation of the Dodgers and reiterated the team is not for sale.

At a time insurance regulators and federal investigators are looking into allegations that insurance companies under Walter’s umbrella did not properly disclose and conduct transactions between other companies he controls, and after Walter sold his controlling interest in the Lakers at a record $12.5 billion valuation, potential bidders have monitored whether the Dodgers might be sold as well.

In a statement Tuesday, TWG Global decried “multipronged attacks against TWG … by unnamed sources with self-serving interests” and said no insurance policyholder has been hurt as a result of the company’s financial transactions.

“There is no victim here,” the statement said. “No one has been harmed, and no one has claimed they were harmed.”

In 2012, when Walter and his partners bought the Dodgers for $2 billion, The Times reported the use of $1.2 million from Guggenheim Partners insurance funds into the deal. At the time, rival bidders expressed concern over the unusual financing, but state insurance regulators cleared the deal and Major League Baseball approved it.

“The transaction was subject to a full investigation conducted by an outside law firm on behalf of insurance regulators from multiple states,” the statement said, “which identified no irregularities and resulted in no further action.”

Even with the Dodgers issuing over a billion dollars in deferred contracts and amid whatever transactions might have been conducted between TWG-related insurance companies and the Dodgers’ affiliates — including ones that hold the team’s television rights and ticket revenues — the Dodgers’ ability to fund player contracts is not at risk, according to the statement.

“The Dodgers have the highest revenue in baseball, and it significantly exceeds the team’s obligations to its players,” the statement said.

The statement reiterated that, as Dodgers president Stan Kasten has said, “the team is not being sold and no sale process has been initiated.”

The Dodgers, if sold, could likely command a price in the range of $10 million to $13 million, industry analysts have told The Times.

The Lakers sold at a record price for a North American sports franchise, although industry analysts have said a competitive bidding process likely would have resulted in an even higher sale price.

Said the statement: “Mr. Walter was approached by Josh Kushner and his team about this transaction and the agreement represents a 25% premium to the price paid by Mr. Walter less than a year ago (and an even higher premium to the $5.0 billion valuation Mr. Walter paid in 2021) — hardly a ‘fire sale.’”

The statement added: “TWG is not looking to sell its sports assets at ‘fire sale’ prices to raise capital for its insurance operations.”

TWG said it is “working cooperatively and in partnership with the Delaware Department of Insurance” to resolve the regulatory issues and “is committed to working with the U.S. Department of Justice and the Securities and Exchange Commission to resolve their inquiries.”

“TWG stands firmly behind the integrity of its business,” the statement read. “Despite what has been reported, there has been no fraud.”

As the Buss siblings battle each other for the right to sell their minority stake in the Lakers, at least one of the other minority shareholder is sticking with the team.

Patrick Soon-Shiong, the owner of the Los Angeles Times, is not selling his stake in the Lakers.

Soon-Shiong bought a 4% stake in the team from Magic Johnson in 2010. His family attorney, Chuck Kenworthy, said that Soon-Shiong has no interest in selling his stake amid a high-stakes ownership transition.

“We love the Lakers,” Kenworthy told The Times. “We believe in the Lakers. We believe in the future of the Lakers and the championship years they are going to have. And we believe they are still undervalued.”

A group led by former Disney chief Bob Iger and venture capitalist Joshua Kushner agreed last week to buy controlling interest in the Lakers from Mark Walter at a $12.5-billion valuation — a record price for an American sports team. The sale is still pending approval by the NBA board of governors. Walter, who owns a majority stake in the Dodgers, is the subject of multiple federal investigations.

Jeanie Buss, whom Walter had agreed could remain as the Lakers’ governor for five years, is challenging her siblings’ decision to sell the family’s 17.8% stake in the team.

Real estate developer Edward P. Roski, one of the Lakers’ other known minority owners, has not disclosed whether he intends to sell his 3% stake in the team. He has owned a stake in the team since 1998. Todd Boehly purchased a minority stake in the Lakers in 2021, but it’s unclear whether all his shares folded into business partner Walter’s majority stake.

WASHINGTON — Federal regulators have given preliminary approval for a cryptocurrency venture tied to President Trump and his family to operate a digital-asset bank, a decision that has drawn immediate condemnation from Senate Democrats who are now pushing legislation to bar such an action.

Sen. Elizabeth Warren (D-Mass.), the top Democrat on the Senate Banking Committee, and nine other Senate Democrats introduced a bill Saturday that would bar the president, the vice president, their immediate family members and other senior government officials from owning or controlling banks.

The measure was proposed a day after the Office of the Comptroller of the Currency — which is part of the Trump administration — granted conditional approval for World Liberty Trust Co. to become a trust bank. The firm was founded in 2024 by two of Trump’s sons and the sons of Steve Witkoff, the Trump administration’s special envoy to the Middle East.

If the firm gets final approval, it would not act like a conventional bank and take deposits or make loans. Instead, the chartered bank would be able to issue and manage cryptocurrencies and digital assets. But the move would grant new financial powers to the Trump family’s crypto business, which has already shown to be profitable for the president in his first year back in the White House.

Trump’s financial disclosures show the president has earned more than $1.2 billion from crypto-related projects as he has pushed to deregulate the digital-asset industry. He hauled in more than $500 million from his World Liberty Financial business selling new crypto products and is a significant owner of the firm through an entity called DT Marks DEFI LLC, which holds about a 38% stake.

Aside from World Liberty Financial, Trump last year took in more than $600 million from sales of souvenir-type “meme” coins stamped with his likeness.

Trump’s crypto windfall has lately fueled Democrats’ argument that the president stands to personally gain from the same regulatory apparatus he oversees, and has led to acrimonious negotiations in Capitol Hill over how to regulate the industry.

The White House said Tuesday “there are no conflicts of interest.” But the recent decision by federal regulators in relation to World Liberty Financial is now giving more ammunition to Democrats, who have pushed for more ethical guardrails to crack down on the Trump family’s crypto ventures.

“This is the most brazen act of self-dealing our financial system has ever seen — and Congress cannot allow it to stand,” Warren said in a statement. “The Ending Presidential Corruption in Banking Act will close the door on this kind of unprecedented corruption.”

Sen. Angela Alsobrooks (D-Md.) said the decision to allow a Trump-linked crypto firm to charter its own bank is “injecting risk into our financial system and fueling the Trump family’s business endeavors.”

“It is Congress’ responsibility and duty now to rein in this corruption and ensure that bank charters, deposit insurance, and other banking licenses cannot be handed out to entities influenced or controlled by any President’s family,” Alsobrooks said in a statement.

David Wachsman, a spokesperson for World Liberty Financial, disputed the criticism, saying the preliminary approval is “great news for consumer and investor protection advocates and for the American financial services industry.”

“Critics are missing the point: World Liberty Financial is running towards regulation and continuous oversight, not away from it,” Wachsman said in a statement. “World Liberty Trust Company’s national charter will ensure robust and permanent regulatory supervision from the OCC, a federal banking regulator, that will outlast the Trump administration.”

Wachsman said World Liberty will be required to provide weekly reports about its operations that will be subject to independent reviews. He added that federal banking laws such as anti-money-laundering rules and consumer protection statutes will be “directly applicable and enforceable.”

The White House did not comment directly about the administration’s involvement with the World Liberty application to charter a bank. But in a statement, the White House disputed claims that the president’s decisions in office have financially benefited him and his allies.

“All of President Trump’s investment holdings are in held in fully discretionary accounts managed by independent third-party financial institutions,” Anna Kelly, a White House spokesperson, said in a statement. “The President only acts in the best interests of the American public — which is why they overwhelmingly re-elected him to this office, despite years of lies and false accusations against him and his businesses from the fake news media.”

Kelly added: “There are no conflicts of interest.”

Last month, Atletico filed a complaint to FIFA over Barcelona allegedly tapping up the 26-year-old forward.

Atletico Madrid will not allow forward Julian Alvarez to leave the club during the current transfer window despite interest from Barcelona, coach Diego Simeone has said.

Last month, Atletico filed a complaint to FIFA over Barcelona allegedly tapping up Alvarez.

The Argentina international has also been linked with a possible move to Premier League champions Arsenal and was the subject of a rejected 150-million-euro ($173.4m) bid from Real Madrid in June.

“I think the situation is very clear. The club has made a decision that (CEO) Miguel Angel (Gil Marin) has explained very well,” Simeone told reporters on Saturday before a preseason friendly against Manchester City in Seoul.

“From a sporting perspective, we’re very happy to have a footballer like Julian…

“We will help him continue to grow, continue to improve and continue delivering the best – which has been a tremendous amount – that he has given us over the last two years.”

Alvarez is due to rejoin the Atletico squad in two days after taking a break following Argentina’s World Cup final loss to Spain.

While on World Cup duty, the 26-year-old said he “believed a transfer is best for everyone”, but did not confirm his preferred destination.

Alvarez has scored 49 goals for Atletico since signing from Manchester City two years ago.

“We don’t want to transfer him. We didn’t accept the 100-million-euro offer, nor will we accept one for 150 million or 200 million,” Gil Marin told the club’s in-house media channel.

“I have no doubt that Atletico is the right place for Julian and that Julian is the centre-forward for Atletico Madrid. We want to keep him.”

When asked about how Alvarez might be received by Atletico fans following the transfer speculation, Simeone pointed to Antoine Griezmann.

The Frenchman made a big-money move to Barcelona before returning to Atletico.

He was initially met with some hostility, but won the supporters back over and departed last season a club legend.

“We went through a period with Antoine in recent years where he had to leave, come back, and prove his quality and stature on the pitch,” said Simeone.

“I see no other path than focusing on the sporting side of things, doing our part and helping him [Alvarez], just as we have done over the last few years.”

Atletico get their La Liga campaign under way on August 19 with a home match against newly-promoted Malaga.

The capital club finished fourth last season, 25 points adrift of champions Barcelona.

The federal law enforcement probe into the financial affairs of the Dodgers’ controlling owner, Mark Walter, seems to focus on what looks like an obscure financial maneuver: related-party transactions.

They are deals between entities with business or personal ties, including loans, sales and other transactions, that can have legitimate reasons but pose potential conflicts of interest and typically require extra scrutiny.

Walter tapped insurers he controlled to provide most of the financing for the $2.15-billion acquisition of the Dodgers in 2012, The Times has reported — a deal later vetted by state insurance regulators.

Now, regulators reportedly are investigating whether billions of dollars’ worth of similar loans made by Walter’s companies were properly disclosed.

There are examples in which related-party transactions led to trouble, including the 2001 bankruptcy of Enron Corp., the largest at the time in Wall Street history. Bernie Madoff profited from his Ponzi scheme through related-party loans.

At issue with Walter is $21 billion in loans not disclosed to state insurance regulators that were made by two Delaware insurers he owns, according to ratings agency Fitch. The loans reportedly were made to companies with ties to Walter or his TWG Global holdings company.

The seriousness of the investigation has been highlighted by subpoenas served on the insurers and the reported seizure of Walter’s cellphone and laptop by federal authorities. Still, investigations by prosecutors and securities regulators can result in no action.

Here are more details on the risk presented by related-party transactions and why they require disclosure and extra regulatory scrutiny.

What do the investigations mean for his ownership of his sport teams?

The 66-year-old billionaire also took a majority stake in the Los Angeles Lakers last year and owns the Chelsea soccer team in the English Premier League. There is no indication yet that any of this has affected his ownership stakes, but the probe has yet to be completed.

What is the problem with related-party transactions?

Bruce Dubinsky, a forensic accountant who worked on the Enron and Madoff cases, says the issue comes down to the motivation of the parties and can be explained through an analogy.

Sell a car to a stranger and you both research its worth and come to an agreed “fair market value,” he said. Sell it to your brother, you might cut the price to “give him a deal,” and later even forgive the payments.

“That’s why, from an audit standpoint, there should be more scrutiny if you’re doing business with the left hand and the right hand, because it’s easier to manipulate things,” Dubinsky said. “Repayments can be delayed indefinitely. They are always more suspect to fraud.”

How does that play out in the insurance industry?

Insurance is one of the most regulated industries, since the companies hold premium dollars from policyholders for future claims payouts — and regulators want to ensure the money is there when it’s needed. Related-party transactions can threaten that.

“There is a conflict of interest between the policyholders’ interest in the company being profitable and the owner’s interest in getting the least expensive financing that is available,” said Jim Donelon, who served as Louisiana insurance commissioner for 18 years before stepping down in 2024.

“It potentially threatens the solvency of the company, which then threatens the welfare of the policyholders,” Donelon said.

The National Assn. of Insurance Commissioners, for whom Donelon served as president, provides guidance to regulators on how to review related-party transactions.

What are some of the most notable examples of related-party transactions turning into financial disasters?

The failure of Enron was a prime lesson in how related-party transactions can lead to a company’s downfall.

As the Houston energy trader struggled and racked up $30 billion in debt, chief financial officer Andrew Fastow thought he found a way to keep it off Enron’s books. He created off-balance sheet entities to unload the debt and took personal stakes in them, allowing him to sit on both sides of the negotiation and pocket millions.

They were “transactions with related parties that were not at arm’s length,” Dubinsky said.

The debacle was a driving force in the passage of the Sarbanes-Oxley Act of 2002, which tightened regulations over governance, accounting and related-party transactions.

What about the Madoff fraud?

The Madoff scandal, in which investors lost $17.5 billion in invested principal, operated like a typical Ponzi scheme with returns to older investors paid by money from new investors.

However, related-party transactions were key too, and some literally involved family members. Madoff’s brother, Peter, pleaded guilty to receiving $15.7 million in sham loans and giving $9.9 million in sham loans to family members. What’s more, the auditor was a related party.

“In Madoff, what were called ‘related‑party loans’ were just sham transactions — there was no real economic substance. It was simply Madoff taking money out of his own firm,” said Dubinsky, an expert witness for the government.

Is there anything comparable with the Walter probe?

The three situations appear entirely different, but the investigation into the related-party loans made by Walter’s Delaware Life and its affiliate, Clear Spring Life and Annuity, involves vast sums of money.

After receiving the subpoenas, the firms conducted internal investigations. They had reported having $1 billion in related-party loans but, after the review, they reclassified $21 billion worth of loans as related, including $4.6 billion held by Clear Spring, said Fitch analyst Jamie Tucker, senior director of North American insurance ratings.

Executives said they were unaware the loans were going to an affiliated company.

Is there any indication what the money was used for?

“Unclear at this stage,” Tucker said. “This a developing situation with ongoing investigations.”

One clue may be a report that Walter tapped insurers to fund more deals than the Dodgers acquisition. The Wall Street Journal said five insurers had provided more than $10 billion in deal funding since Walter’s financial services company, Guggenheim Partners, got into the insurance business after the 2008 financial crisis.

What have been the implications for the insurers owned by Walters?

Fitch said the financial restatement increased the two insurers’ related-party loans from 2% to 40% of their portfolios, the highest exposure among life insurers it rates in North America.

Fitch, A.M. Best and S&P Global also downgraded Delaware Life’s outlook to negative, though they said the insurer maintain a high level of financial strength.

“Our capital position and liquidity remain strong, and our financial strength ratings are unchanged,” said Group 1001, the insurers’ parent company, in a statement.

What has Walter had to say about all this?

He has not publicly commented, but a TWG spokesperson stated that, “Mark Walter and TWG have always acted in good faith, and those who have done business with Mark know him as honest and straightforward. Nothing about these transactions was any different.”

The United States Federal Reserve is set to hold interest rates steady as inflationary pressures mount, driven by heightened fuel prices as tensions between the US and Iran continue.

The central bank said on Wednesday that it will maintain rates at 350-375 basis points during the second monetary policy decision under new Chairman Kevin Warsh.

“Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability,” the central bank said in a statement upon the release of its decision.

CME FedWatch, which tracks the likelihood of monetary policy decisions, forecast a 66.3 percent chance of maintaining rates, while there was a 33.7 percent chance that rates would increase to 375-400 basis points.

Of the 12, three members, Beth M Hammack, Neel Kashkari, and Lorie K Logan, voted to raise rates by 25 basis points.

“My colleagues and I considered the economic shocks of recent years, strained supply chains arising from the pandemic, military conflicts, energy supply disruptions, substantial increases in tariff rates, and yes, the surge in AI-related investment,” Warsh told reporters.

“We are not relying on any one individual piece of data as cover or as an excuse, or as validation. What I care about and what I think the Committee cares about is trends on the data.”

Monetary policy decisions have become more uncertain as Warsh has scrapped forward guidance, which typically helps financial institutions and journalists better understand upcoming policy choices.

Flying blind

That is putting pressure on analysts.

“With little guidance on the reaction function under the new chairman, markets are filling the void with speculation that Warsh may be eyeing a surprise hike to reinforce anti-inflation credibility,” Barclays economists said in a note.

Citadel Securities earlier this week forecast a rate hike. Meanwhile, analysts at S&P Global forecast that rates would hold steady.

At the last meeting, the central bank’s governors were evenly split on whether to raise interest rates this year, as the central bank maintained rates during its first meeting under Warsh.

Warsh had previously said that there was “no tolerance” for inflation as the central bank pushes to reach the Fed’s 2 percent target.

Market shifts

Financial pressures on the broader market eased last month, with consumer inflation moderating. The Consumer Price Index report released in July for the month of June by the US Labor Department’s Bureau of Labor Statistics showed a 0.4 percent decline in consumer inflation, marking the first monthly decline since April 2020 in the early days of the COVID-19 pandemic. However, that was a correction from the previous month, when the CPI rose by 0.5 percent.

The CPI remains elevated at 3.5 percent on an annual basis, according to the report, though that is still a slowdown from 4.2 percent in May. However, consumers are still feeling the pinch, especially at the petrol pump.

Prices are on the upswing. The average price for a gallon of petrol is $4.09 ($1.08 per litre), up 3 cents from this time last week, and up from $3.86 ($1.02 per litre) this time last month, according to the American Automobile Association (AAA), which tracks daily petrol prices. By comparison, daily petrol prices were $2.98 ($0.78 per litre) when the US and Israel first struck Iran on February 28.

Those pressures are echoed by a slump in consumer confidence for the third straight month, according to The Conference Board, which released its report on Tuesday.

“Consumers anticipate little improvement in business conditions over the next six months,” Dana M Peterson, chief economist at The Conference Board, said upon the report’s release.

Political flashpoint

The decision is overshadowed by pressure from the White House. Interest rates have been a point of contention between Trump and the central bank. Trump has long pushed the Fed to cut rates, putting former Chair Jerome Powell in the crosshairs and making him the subject of investigations by the US Department of Justice.

But Warsh has yet to become a target of Trump’s scorn. “Kevin is fantastic,” he told reporters on Monday on board Air Force One. “He’s got a board, and the board members are very political.”

Trump made those claims despite the central bank’s longstanding commitment to maintaining its independence from political pressure.

Singapore has started exploring whether to become involved in the Global Combat Air Program (GCAP), a new report suggests. While it doesn’t state that Singapore has decided to join or purchase the Tempest fighter at the center of that program, it is in line with the country’s approach to buying the F-35. At the very least, it would seem to indicate that Singapore is starting to look at the sixth-generation combat aircraft technologies that could follow the Joint Strike Fighter.

According to Janes, Singapore has begun early, informal discussions about possible participation in GCAP. These are described as exploratory, meaning Singapore is gathering information rather than negotiating membership of the program.

The report explicitly states that the Singapore government has not made any decision to become a participant in the program, which makes sense considering that the Republic of Singapore Air Force (RSAF) is still waiting to receive its first F-35s.

GCAP is a joint next-generation air combat program led by the United Kingdom, Japan, and Italy, aiming to field the Tempest sixth-generation combat jet and wider air combat system by around 2035. With the demise of the pan-European Future Combat Air System (FCAS), GCAP is the preeminent Western sixth-generation fighter effort outside of the United States.

GCAP is intended to include not only the Tempest crewed fighter but also an integrated ecosystem of AI-enabled systems, advanced sensors, networking, air-launched weapons, and autonomous ‘loyal wingman’ aircraft.

As for the RSAF, this is a notably modern and capable force, benefitting from considerable investment throughout the years.

It is currently spearheaded by a combat fleet of 40 F-15SGs, plus 49 F-16C/Ds, a combination of Block 52 and Block 52+ jets.

Next, the RSAF will receive eight conventional takeoff and landing (CTOL) F-35As and 12 short takeoff and vertical landing (STOVL) F-35B fighters. The F-35Bs will be the first to arrive, with deliveries due to start before the end of this year. These will initially be based at Ebbing Air National Guard Base in Arkansas for training, with the first F-35Bs scheduled to be stationed in Singapore from 2029.

In total, Singapore covers an area of less than 280 square miles, putting unique strains on the RSAF.

In preparation for the F-35B, the RSAF is extending the runway at Pulau Sudong, an offshore location, which will reduce the noise burden on more populated areas. The existing runway will be extended from around 6,500 feet to approximately 9,800 feet, with work to be completed by 2028. The growing demand for training capacity is something that has previously led the RSAF to look at having a detachment in Guam, but the reworked Pulau Sudong should help address the issue.

The RSAF has traditionally acquired the best available Western-made equipment to meet its combat aircraft needs. Looking at what is currently the only sixth-generation combat jet that is likely to be available to Singapore for the foreseeable future makes sense. However, as Roy Choo, a defense journalist and TWZ contributor, noted, deeper involvement in GCAP would be years away.

“From this news, it appears they may have identified a future requirement for a sixth-generation fighter, although this is unlikely to transition into a program of record for at least another two decades,” Choo explained. “As with most operators, Singapore engages with industry to stay informed about available market offerings all the time.”

In the next decade or so, the RSAF will likely remain focused on its F-35A/B program and on bringing these aircraft up to full operational capability.

Another upcoming program will be a midlife upgrade for the F-15SG, deliveries of which first began in 2008. Choo expects work on this to begin once the ongoing F-16 upgrade is finished. The F-16s are set to remain in service into the mid-2030s, according to Singapore Chief of Air Force Maj. General Kelvin Fan. The F-15SG will be around longer, giving considerable lead time for it to be replaced by a sixth-generation platform.

When it comes to a path to a potential Singapore Tempest acquisition, it is worth looking at the approach taken with the F-35.

Singapore joined the F-35 program as a Security Cooperative Participant (SCP) in 2003 when it identified the fifth-generation fighter as a potential replacement for its F-16s. At that time, Choo notes, Singapore was still receiving its F-16s and was yet to select a contender for its Next Fighter Replacement Program (NFRP) — it eventually chose the F-15SG in 2005.

Singapore placed an initial order for four F-35B in 2020, a full 17 years after joining the program as an SCP. This is very much an indication of the long-term view Singapore takes in its defense procurement.

If Singapore were to join GCAP, it would likely be part of a long-term view toward acquiring a sixth-generation fighter capability.

While Singapore has maintained generally good relations with Beijing, it is acutely aware of its economic vulnerability in the face of rising tensions in the South China Sea as China makes increasingly forceful moves to assert its claims in the region. With China preparing for potential contingencies in the South China Sea through the continued expansion of its anti-access and area-denial (A2/AD) capabilities in the region, the People’s Liberation Army Air Force — busy working on its own sixth-generation platforms — is very much the pacing threat.

Given Singapore’s prudent approach to defense procurement, it is unlikely to commit large sums of money to a program at such an early stage of development.

If pursued, a likely option would be for Singapore to join GCAP with observer status, something that Canada (another F-35 customer) recently signed up to do. “This would give greater visibility of GCAP’s governance and capabilities,” Choo added. “After all, Singapore doesn’t have the deep technological know-how as the other full-tier partners.”

“An observer status would fit with its cautious and non-committal approach to the program just as it did with the F-35 SCP membership.”

Potentially, GCAP could provide a platform for Singapore to build future relationships with other partners and secure a workshare arrangement involving supply chain and maintenance work. That would all be a long way off, however.

Logically speaking, the RSAF’s next procurement project will likely involve a collaborative combat aircraft (CCA) to build combat mass.

Interestingly, earlier this week, Singapore and Australia signed the Industrial Base Resiliency Arrangement (IBRA), which establishes a practical framework for closer defence industrial cooperation between the two nations.

The IBRA “allows both countries to engage in cross-sustainment of common defense platforms, examine priority delivery requests for defence orders, streamline equipment transfers, foster defence industry partnerships, and facilitate information exchanges to mitigate supply chain risk.”

When it comes to common defense platforms, it’s not hard to imagine that the MQ-28 Ghost Bat could be in the RSAF’s thoughts. At the same time, the F-35A and the P-8A maritime patrol aircraft will also offer commonality with Australia once they arrive in RSAF service.

Singapore has a history of studying major defense programs years before making procurement decisions. Whether it intends to buy the Tempest in the future or not, the report is the first known indication that Singapore is formally examining possible links to GCAP, and looking at sixth-generation combat aircraft more generally.

Contact the author: thomas@thewarzone.com

July 29 (UPI) — The stock market opened with the Dow falling 400 points on Wednesday ahead of the Federal Open Market Committee’s latest interest rate decision.

The committee will announce its decision on Wednesday afternoon with Federal Reserve Chairman Kevin Warsh making his second address since being appointed. Economic indicators point to the Fed holding interest rates at a target range of 3.5% to 3.75%.

“My colleagues and I recognize that high inflation has been an undue burden on American households and businesses,” Warsh said during a Senate Banking Committee hearing earlier this month. “The members of our committee have no tolerance for persistently elevated inflation and we share a resolute commitment to restore price stability.”

The war in Iran has increased economic pressure, driven by rising fuel costs as the United States and Iran use the crucial Strait of Hormuz as a point of negotiation. The annual inflation rate rose to 4.2% in May on the back of rising gas prices.

The Federal Reserve has maintained a target goal of 2% annual inflation rate.

The average fuel price in the United States is $4.09 per gallon for regular grade gasoline on Wednesday, AAA reports.

The Federal Reserve will announce its interest rate decision at 2 p.m. EDT, followed by an address by Warsh at 2:30 p.m. EDT.

President Trump’s $1.4-billion crypto windfall has become the biggest obstacle to passing his sweeping digital-asset legislation as Democrats demand tougher language to prevent the president from profiting off an industry his administration regulates.

Senate Republicans released a proposal this week intended to break a months-long impasse over the bill, known as the Clarity Act. But Democrats and consumer watchdog groups dismissed the terms almost immediately, complaining the bill would not stop Trump or his family from continuing to profit from his meme coin and other crypto ventures.

Trump needs the support of at least seven Senate Democrats to pass the legislation, which would set rules for digital assets. Ethics has emerged as the biggest, though not the only, sticking point.

“It’s the linchpin,” said Sen. Angela Alsobrooks, a Maryland Democrat and key negotiator who has been supportive of the crypto industry.

A spokesperson for the White House didn’t immediately respond to a request for comment. The White House has consistently asserted Trump is not involved in managing the family’s crypto ventures and has denied conflicts of interest.

Democrats have specifically taken issue with a provision that would leave Trump’s Justice Department as the primary enforcer of the new ethics regulations, preventing state attorneys general from acting as an independent check.

Another Democratic negotiator, Sen. Ruben Gallego of Arizona, and Republican Sen. Thom Tillis of North Carolina said they’re working on a compromise ethics proposal to send to the White House but didn’t provide details.

Senators in both parties said they see the negotiations in the coming week as key to whether a bill reaches Trump’s desk this year. But after the chilly initial reception to the latest White House offer, Senate Majority Leader John Thune (R-S.C.) said he didn’t think the Clarity Act would pass the chamber before the month-long August recess.

“We’ll see where the votes are,” Thune said.

Alsobrooks, Gallego and other crypto-friendly Democrats are demanding changes to other pieces of the massive bill, including consumer protection and illicit finance measures.

The bill has other issues, including opposition from banks intent on tightening restrictions on stablecoin rewards. Tillis and several other Republicans said they are considering backing changes to reflect banks’ concerns that their deposits could shift to stablecoin accounts, crimping their profits and customers’ access to credit.

Tillis has floated adding “circuit-breaker” language empowering the Federal Deposit Insurance Corp. or other regulators to step in if bank deposits drop — an idea opposed by GOP Sen. Cynthia Lummis of Wyoming, the crypto industry’s biggest backer in the chamber.

Porous provisions

Critics said the draft’s ethics protections are porous. It would let Trump divest a large stake in his crypto venture or move it into a blind trust for the rest of his term, but stops short of requiring him to sell.

“It’s going to allow him to keep making money the way he has in the past,” said Scott Greytak, deputy executive director of Transparency International US, an anti-corruption advocacy group.

The restrictions also hinge on whether an official has a “direct interest” in a crypto asset — a threshold that may not apply to Trump.

The president is a significant owner of World Liberty Financial, the Trump family’s crypto venture, through an entity called DT Marks DEFI LLC, which holds about a 38% stake. Whether that counts as a direct interest “isn’t clear,” said Zach Everson, research director for Public Citizen’s Trump Accountability Project. “Does direct interest describe how he holds the crypto?”

Because the bill wouldn’t apply to the children of government officials, Donald Trump Jr. and Eric Trump could continue their own crypto business interests. And much of the family’s fortune has already been made: Trump and his affiliates have earned a huge windfall from meme coin and token ventures, income the legislation would not claw back.

Critics also decried a provision that would sunset the ethics requirements on Jan. 20, 2029, the day Trump’s successor would be inaugurated. That could prevent the next administration from holding Trump accountable.

The White House and Republicans argued that Trump had gone further in backing ethics restrictions in law than any previous president.

“History will remember this as the moment a president chose a higher standard of ethics than the law required of him,” Lummis, a key architect of the bill, said on X.

Democrats were skeptical even before the language was released. “Any meaningful ethics provision would be shot down by the White House,” Sen. Chris Murphy of Connecticut said.

The politics of crypto have long divided Democrats, and a bipartisan deal on the legislation risks provoking a backlash from progressives. Failure to reach a deal, however, could make the party the target of a torrent of crypto campaign cash.

Crypto group Fairshake and its two affiliated super PACs have raised $164 million for the midterm elections, Federal Election Commission filings show, and have spent $66.6 million so far.

It’s the kind of political arsenal that Senate Democratic leader Chuck Schumer of New York can ill afford to have aimed at his candidates as the party seeks to regain Senate control.

But others, like Murphy, have warned that blessing Trump’s big crypto bill would undermine Democrats’ midterm message.

A potential presidential candidate, Murphy said Wednesday while addressing the left-leaning Center for American Progress that the bill is before the Senate “because the industry paid for it” and urged Democrats to instead turn fighting crypto corruption into a potent campaign issue this fall.

Markets have grown less convinced a deal gets done. On Polymarket, the odds of the Clarity Act passing this year fell to about 1 chance in 3 earlier this week after Republicans released the new draft.

That’s about half the odds the prediction market gave passage after the Senate Banking Committee backed an earlier version of the bill on May 14.

Dennis and Patterson write for Bloomberg. Bloomberg writers Yash Roy, Lydia Beyoud, Aidan Williams, Bill Allison and Olga Kharif contributed to this report.

Israeli Finance Minister Bezalel Smotrich says Israel has “no interest” in joining the renewed US military campaign against Iran, arguing the current US-Iran conflict and sustained economic pressure on Tehran benefits Israel.

RICHARD Gere is spotted getting close with his 28-year-old co-star on the set of controversial romance movie.

The esteemed actor, 76, is currently in New York City and was seen filming scenes with the actress in a park.

The actor is back doing what he does best, and is gearing up for his new flick Asymmetry, which is adapted from Lisa Halliday’s same named novel. 

The film centres around an intense love affair between author Ezra (Gere) who is in his seventies and an aspiring writer called Alice.

The book itself had sparked massive controversy due to the character’s shocking more than four decade age-gap.

As filming began in New York City, Gere and actress Diana Silvers were snapped getting cosy on set.

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The Hollywood star embraced and held hands with his much younger co-star, with the two keeping things strictly professional off-screen.

The pair shot scenes on a bench in Central Park, which is a crucial scene where the two characters meet, before beginning a steamy romance.

The actor can be seen in a white shirt and jeans as he sits alongside Diana who’s styled in a floral mid length dress. 

Both stars were also seen walking around the park laughing and smiling together.

Oscar-winning producer Edward Zwick is directing and writing the film.

He said to People: “It’s about two people who discover that what the world calls asymmetry can in fact have another name: love.”

Pretty woman actor Gere, is happily married within his own age-gap marriage to his 43-year-old wife Alejandra Silva.

The couple have two children together, welcoming their latest baby on April 23, 2020.

He was previously married to Carey Lowell with whom he has a son, Homer – the pair split in 2013 after 11 years of marriage. 

From 1991-1995 he was also married to supermodel Cindy Crawford.

The star has starred in many blockbuster hits, but when he was 41 he was cast in Pretty Woman.

The film, which came out in 1990, saw him star alongside Julia Roberts – and told the story of a romance between a wealthy businessman and a Sunset Boulevard prostitute.

At the time he was already a famous face in Hollywood after the huge success of An Officer and a Gentleman in 1982.

In 2002 he appeared in the film version of the musical Chicago which won six Academy Awards including Best Picture in 2003.

July 8 (UPI) — New York Federal Judge Lewis Kaplan ordered that writer E. Jean Carrol be paid $5 million plus interest in damages owed to her after President Donald Trump was found liable for sexual abuse and defamation.

But Trump’s attorneys have already filed an appeal of Kaplan’s order with the 2nd Circuit U.S. Court of Appeals.

“The American People stand with President Trump as they demand an immediate end to all of the Witch Hunts, including the Democrat-funded travesty of the Carroll Hoaxes. President Trump will keep winning against Liberal Lawfare, as he continues to focus on his mission to Make America Great Again,” a spokesperson from the legal team told CNBC.

Trump and his attorneys filed a motion Tuesday to pause the payout, arguing there was still a case pending before the U.S. Supreme Court. They were arguing against Carrol’s motion to disburse the money from escrow filed on June 30.

Trump’s attorneys had argued that a “timely petition for rehearing remains pending before the Supreme Court.”

“Collection cannot begin while proceedings remain pending before the Supreme Court, which is currently the case,” lawyers Josh Halpern and Michael Madaio wrote in their response to Carroll’s petition.

In his order, Kaplan mentioned an agreement between Carroll and Trump that called for the money to be given to her if the Supreme Court denied his appeal.

The Court declined to hear Trump’s case on June 29. That means the verdict finding him liable stands.

Kaplan didn’t agree with lawyers’ arguments about the Supreme Court because Trump’s petition for reconsideration isn’t likely to succeed. The Court rarely grants those requests, CNBC reported.

Carroll was awarded the damages by a jury in 2023 after finding him liable for sexual abuse in a department store dressing room in the 1990s and for defaming her in 2019 after she came forward with the allegations. Trump denies the allegations.

In the defamation case, Carroll was awarded $83.3 million in damages.

“Surprisingly, the Supreme Court declined to ‘review’ a Fake Case brought against me by a woman I never met (Decades old celebrity photo line, standing with her husband, does not count!),” Trump wrote on Truth Social in late June. “I will continue the fight against this Weaponization and Lawfare Case against me, including the ridiculous claim of Defamation, with all of my power and strength.”

Trump’s lawyers claim that a petition for rehearing is “pending” before the Supreme Court, but records show it wasn’t accepted for filing this week, The Hill reported.

In the petition, the lawyers argue that Trump would have “unrecoverable loss” if the money were disbursed then overturned on appeal because Carroll has said she would donate all the money from the defamation suit.

“Plaintiff has repeatedly stated that she intends to give away all funds that she collects from him, and once those funds are distributed to third parties, they likely cannot be recovered,” lawyers Josh Halpern and Michael Madaio wrote in the filing.

Carroll’s attorneys argued that Trump is trying to unjustly delay the payment.

“This is the end of the line,” they wrote in a June 30 filing. “After four years of litigation across every level of the federal court system, it is time for this case to end.”

Bournemouth have rejected an enquiry from Arsenal for Alex Scott and say the midfielder is not for sale this summer.

The Premier League champions want to sign a new central midfielder, with the 22-year-old understood to be one of their targets.

Scott is also attracting serious interest from other Premier League clubs, including Manchester City, Manchester United, Tottenham and Chelsea.

But Bournemouth have communicated their intention to keep the former Bristol City player and are keen to agree an extension to his current contract, which has two years left to run.

Scott was selected in his first England squad last November and was then called up into Thomas Tuchel’s extended pre-World Cup training camp in Florida, though he did not make an appearance.

Arsenal have also explored moves for Newcastle pair Bruno Guimaraes and Sandro Tonali in their search for a new midfielder.

A move for Guimaraes is currently rated more likely with Tonali’s price believed to be a stumbling block.

North London rivals Tottenham are advancing in their efforts for a move for Tonali and are growing in confidence of securing a move for the Italy midfielder.

West Ham‘s Mateus Fernandes and Lille’s Ayyoub Bouaddi have also been monitored by Arsenal.

In the latest twist in Canada’s long-running saga to field a new fighter, the country’s defense minister has said that Ottawa is “interested in learning more about” the Global Combat Air Program (GCAP) next-generation fighter. GCAP is currently a trinational effort, led by the United Kingdom and involving Italy and Japan. Its centerpiece is the Tempest crewed fighter. A demonstrator for this jet is currently taking shape with BAE Systems in the United Kingdom.

David McGuinty, the Minister of National Defense of Canada, made the remarks after a meeting in Tokyo with his Japanese counterpart, Shinjiro Koizumi. Breaking Defense reports that McGuinty confirmed he had spoken with Koizumi about the GCAP, which the Canadian official described as a “promising initiative.”

“We are interested in learning more about it. I’ll take it back to my team and see what it looks ‌like,” McGuinty told Reuters.

Until now, no senior Canadian official appears to have spoken publicly about interest in GCAP. However, the development comes as Ottawa weighs up the option of a split fighter buy, which would involve acquiring the U.S.-made F-35 and one other type. This thinking has been driven by a growing rift between Ottawa and Washington.

However, the possibility of Canada coming on board GCAP as an ‘observer’ had been raised in March of this year. According to The Asahi Shimbun, a Japanese daily newspaper, unnamed Japanese officials disclosed that, during a previous meeting, McGuinty and Koizumi discussed such an arrangement.

Canada’s joining GCAP with observer status would provide it access to information on the program and could be a stepping-stone to deeper involvement.

Earlier this week, Italian Defense Minister Guido Crosetto raised the possibility of other nations joining GCAP, noting that, were that to happen, “we would be completely willing, because the more there are, the greater the chances of creating something and bringing down costs.”

Crosetto then identified Canada as “the country most interested [in GCAP] at the moment.” He said he would be “fully open” to Canada joining as an observer.

For Canada, however, GCAP would require a rethink of Canada’s potential pursuit of a split-buy approach to its new fighter.

Until now, the Saab Gripen E had been identified as the most likely candidate to be bought alongside the F-35.

Sweden has made a strong push to sell Gripen to Ottawa, and Saab offered to build the jet in Canada, in an effort to secure support for its previous bid, which it lost to Lockheed Martin. Since then, Saab has also emerged as the preferred candidate to supply Canada with its future airborne early warning and control (AEW&C) via its GlobalEye.

In April of this year, McGuinty confirmed that Ottawa was still reviewing its earlier plan to buy 88 F-35s.

“The review of the purchase of the F-35s is continuing… We are taking the necessary time to study very, very closely the question of the fighter fleet,” McGuinty told the Senate’s defense committee.

The split-buy option emerged since Canada has already made a firm commitment to buy 16 F-35As to start replacing its aging CF-18 Hornets. Canada’s industry also has a significant degree of involvement in the Joint Strike Fighter program.

Canada currently has around 75 CF-18A/B+ jets and has also added 18 upgraded former Royal Australian Air Force (RAAF) F/A-18A/Bs, plus seven more as spares, to help bolster its fleet.

Of Canada’s first 16 F-35s, four have already been paid for in full, while parts for eight others have also been purchased. The first Canadian F-35s were expected to be delivered for training at Luke Air Force Base, Arizona, in 2026.

Back in 2023, Canada’s Liberal government announced plans to buy 88 F-35s, a decision that appeared to bring closure to what had already been a very protracted process. You can read about this here.

However, amid growing trade tensions and a war of words with the United States, Liberal Prime Minister Mark Carney launched a review of the F-35 program shortly after taking office in the spring of 2025.

There are other arguments for a split buy, too. Back in 2019, the cost of buying the planned 88 F-35s was put at $19 billion. Now it has rocketed to $27.7 billion, not including weapons and infrastructure.

Bill Blair, who was Canada’s defense minister when the review of the F-35 buy was launched last year, pointed to the advantages of a mixed fleet, saying it would give the RCAF more options to handle different types of threats.

“What happens if you have to persist in that space for months and months and years? The tool that you use, is it the right tool to do that job?” Blair said. “We need to have a whole wide range of capability sets to deal with all the eventualities that we could face.”

Were Canada to procure the Tempest, it would surely have to wait longer than 2035 — the prospect of GCAP’s fighter entering service at this date, as planned, is highly unlikely. Canada would be fourth in line behind the three core partners. Ottawa would need to buy more F-35s, perhaps around two thirds of its original intended number, or around 60 aircraft, and also keep the best of its CF-18s in service for longer, if that’s even possible. The Hornets are getting very old and disappearing from service abroad. Supporting them will become increasingly problematic. When the Tempest finally arrived, it would provide a flipped high-low fighter mix. This is essentially the same approach that the United Kingdom, Italy, and Japan — all current F-35 operators — are taking.

However, the Tempest does appear to be especially well-suited to Canada’s fighter requirement.

The design of the jet will stress extreme range and a large payload — roughly twice that of the F-35A. Senior GCAP officials have said the jet could potentially carry enough internal fuel to fly across the Atlantic without refueling.

While these attributes are optimized for a future conflict in the Indo-Pacific region, they are equally applicable to dealing with the ‘tyranny of distance’ and the increasing Russian threat posed around Canada’s enormous land mass, which extends far into the highly strategic Arctic region.

“Both China and Russia have fifth-generation fighter aircraft and fifth-generation missiles that are able to go at much greater speeds and with much more that are holding Western allies at risk at this moment in time,” the commander of the Royal Canadian Air Force (RCAF), Lt. Gen. Jamie Speiser-Blanchet, said in the past.

Plans to arm the Tempest with larger air-to-air missiles offering a longer range than those currently used by any of the three GCAP partner countries have also been revealed, as you can read about here.

If Canada decides it wants a sixth-generation combat aircraft to tackle current and emerging threats from China and Russia, the GCAP might be the only realistic choice. The rival pan-European Future Combat Air System (FCAS) has collapsed, and there is little chance of Canada getting its hand on the Boeing F-47.

But any kind of split buy “would duplicate a certain amount of infrastructure and training,” Speiser-Blanchet admitted.

In some cases, however, there could be cost-benefit arguments in having a mixed fighter fleet, as well as the important factor of not relying entirely upon one source of this type of combat equipment.

There is also the question of how feasible it would be for Canada to join GCAP at this point, at least in terms of industrial participation and steering requirements. The latter point seems next to impossible, with national requirements already set, and most of the workshare agreement has also been divided up between the three partners.

The same applies to India, which has also looked at joining GCAP in the past.

There has been talk of Saudi Arabia possibly joining GCAP in some capacity, and, more recently, Poland has been reported as being interested in buying the aircraft, too.

With that in mind, Canada’s best shot might be to buy the jet ‘off the shelf,’ rather than hope for industrial windfalls.

At the same time, Canada and the United Kingdom are partners on some other key military programs, including the Royal Canadian Navy’s future River class Canadian Surface Combatants, derived from BAE Systems’ Type 26 design for the U.K. Royal Navy. 

Meet The River-Class Destroyer – State-of-the-art WARSHIP!

Returning to the Tempest, the broader GCAP program still has to survive considerable challenges, both technical and political, that lie ahead.

As we have explained many times in the past, the process of creating an all-new fighter, especially one incorporating stealth technologies, brings very lengthy development times and high costs.

At this point, BAE Systems is in the process of building a demonstrator as part of the GCAP program, with a first flight planned by the end of 2027.

The latest rendering of that demonstrator appears at the top of the story. Notably, it retains the Typhoon’s EJ200 turbofan engines, with non-stealthy nozzles. The Tempest will have an all-new powerplant.

As we have argued in the past, the more time that passes, and the more deeply intertwined with the F-35 Canada becomes, the arguments in favor of a split fighter buy become harder to justify. Buying the Tempest would certainly not be the cheapest option, and would force a rethink of timelines, but it does underscore the fact that Canadian officials are casting their net wider, looking at very high-end capabilities, and seeking to build deeper strategic relationships outside of the United States.

Contact the author: thomas@thewarzone.com

Published on 18/06/2026 – 13:20 GMT+2•Updated
13:35

The Bank of England left its benchmark interest rate unchanged at 3.75% on Thursday, extending a pause that began in December 2025, as policymakers weighed the inflationary fallout from the Iran war against signs of resilience elsewhere in the economy.

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Governor Andrew Bailey and fellow Monetary Policy Committee members were widely expected to keep rates on hold and maintain a broadly neutral stance on future policy moves.

The decision came a day after official figures showed UK inflation holding steady. Consumer prices rose 2.8% year-on-year in May, unchanged from April and below economists’ expectations of 3.0%, leaving the headline rate at its lowest level since early 2025.

However, the stable reading masked diverging trends beneath the surface. Transport costs accelerated sharply to 6.8%, driven by higher fuel prices and rising air fares, while food inflation eased to 2.2% and housing costs continued to moderate.

Though inflation remains above the bank’s target of 2%, the figure raised hopes that the upward pressure on prices emanating from the spike in oil and gas prices after the start of the Iran war on 28 February may have been less than anticipated.

Andrew Bailey, the bank’s governor, said the recent fall in oil prices has been “encouraging” while noting they are still higher than before the war.

“Whatever happens in the future, the higher energy prices of the past four months mean there’s already some inflationary pressure in the pipeline,” he said. “The Bank’s job is to make sure that doesn’t turn into sustained inflation above our 2% target.”

Analysts also cautioned that inflation could still accelerate later this year, as higher household energy bills feed through to prices. Lindsay James, investment strategist at Quilter, said: “Whilst inflation was below expectations in May and currently under 3%, it is still likely to jump closer to 4% later in the year due to the coming impact of a higher energy price cap.”

James added that while oil prices have retreated from recent highs, they remain above last year’s levels, suggesting underlying inflation pressures have not fully disappeared.

The decision to hold the key interest rate was not unanimous, with two of the nine Monetary Policy Committee members voting for a quarter-point rate increase, reflecting concerns that higher energy costs could still feed through into broader inflation pressures.

A labour market losing momentum

Thursday’s labour market release painted a mixed picture.

The unemployment rate dipped unexpectedly to 4.9% in the three months to April, down from 5.0% in the first quarter, yet payrolled employee numbers fell over the period, pointing to an underlying loss of momentum even as the headline jobless rate improved.

Wage growth, a metric the Bank of England watches closely for signs of persistent price pressure, held firm, with regular pay excluding bonuses rising 3.4% on the year.

“The labour market is still continuing to lose momentum, with the latest figures showing a further cooling,” stated Richard Carter, head of fixed interest research at Quilter Cheviot.

Sanjay Raja, chief UK economist at Deutsche Bank, struck a similar note, cautioning that “it’s clear that the labour market is not out of the woods yet,” though he added that the mixed data buys the committee more time to wait and see how the economy evolves.

The combination of cooling headline inflation, a softening jobs market and still-robust pay growth underscores the bind facing the committee. Strong earnings keep alive the risk of so-called second-round effects, where higher wages feed back into prices, even as hiring loses steam.