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Bank of England holds main interest rate at 3.75% as inflation steadies

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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.

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Warsh takes the helm: What to watch as the Fed weighs its rate decision

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The era of Chair Warsh begins in earnest this Wednesday, as US President Donald Trump’s pick to run the Fed presides over his debut rate decision and steps before the cameras for his first press conference in the role.


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Few economists anticipate dramatic action on day one, but the meeting carries unusual weight for what it might reveal about the months ahead.

Policymakers are expected to hold the benchmark rate steady at a target range of 3.50% to 3.75%, which would mark the fourth consecutive meeting without a move. The committee cut 25 basis points in December 2025.

The bigger question is the language, with officials potentially revising their post-meeting statement to drop any hint that the next step will be a reduction, signalling instead that rates may stay elevated for some time, or even rise should inflation prove sticky.

Warsh inherits a far less accommodating picture than the one he faced when he was widely seen as campaigning for the job last year.

At that time, he argued forcefully for lower rates, echoing US President Donald Trump’s demands, and pointed to AI as a force that could expand the economy’s productive capacity and tame prices over time.

Many economists doubted that thesis even then, noting that the surge of investment in semiconductors and computing equipment was adding to inflationary pressure rather than easing it.

A changed economic backdrop

Inflation has indeed accelerated since the outbreak of the Iran war in late February, climbing to a three-year high of 4.2%, driven largely by costlier petrol.

US President Donald Trump has announced a framework for a peace deal that could end the conflict, but it is unclear whether the truce will hold, and prices for fuel, groceries and airfares could take months to cool even if Middle Eastern oil flows freely again.

By the Fed’s preferred gauge, inflation has now run above its 2% target for more than five years. Hiring, meanwhile, has remained resilient.

May brought 172,000 new jobs, a third straight month of solid gains, removing much of the rationale for the two rate cuts the Fed had pencilled into its January projections.

Because the rate itself looks settled, attention turns to the Fed’s updated Summary of Economic Projections and its closely watched “dot plot”, the quarterly projection of future interest rates.

According to Bank of America economist Aditya Bhave, the new dot plot could show the Fed keeping rates on hold for the rest of 2026, with at least three of the committee’s 12 voting members potentially pencilling in rate hikes this year.

Communication is the other wildcard. Warsh has argued that the central bank should speak less often and keep a lower profile, on the view that publicly stated positions can trap policymakers into defending them well past their usefulness.

One option would be to thin out the calendar of press conferences, reverting to the every-other-meeting rhythm favoured by Ben Bernanke, who chaired the Fed from 2006 to 2014, when the format was introduced. Leaner guidance, however, risks unsettling markets long accustomed to clear direction.

Adding intrigue, predecessor Jerome Powell remains on the board as a governor, a seat he can hold until January 2028, and is expected to vote on Wednesday’s decision, denying the Trump administration an additional vacancy to fill.

Additional sources • AP

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Bank of Japan raises its key interest rate to a three-decade high

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The central bank’s increase in the uncollateralised overnight rate, by a quarter of a percentage point from 0.75%, puts it at a three-decade high.


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The Bank of Japan has been trying to normalise monetary policy lately after decades of keeping interest rates near or below zero. It adopted ultralow rates to try to encourage more borrowing and spending to counter deflation and pull the economy out of the doldrums.

Inflationary pressures because of the war in Iran, which has sent oil prices soaring in recent months, have hit Japan hard since it imports almost all its oil and gas.

Low interest rates had added to pressures on the Japanese yen, which has fallen lately to about 160 yen to the US dollar.

BOJ Gov. Kazuo Ueda, who has been hospitalised recently, did not attend Tuesday’s policy board meeting. Deputy Gov. Shinichi Uchida was expected to take his place at the news conference set for later in the day.

Before the BOJ decision, Tokyo’s benchmark Nikkei 225 index briefly topped 70,000 early Tuesday before giving up some of those early gains.

Additional sources • AP

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European markets open cautiously ahead of ECB rate decision

Investors are bracing for an ECB rate hike on Thursday. Markets expect the European Central Bank to raise rates by 25 basis points, which could weigh on growth and corporate earnings. Investors are also awaiting guidance on whether further hikes will follow.


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ING said in an analysis on Thursday morning that: “We expect the ECB to hike by 25 basis points from 2.0% to 2.25%, supported by a hawkish tone, but the bar has risen to surprise markets. Despite oil prices testing new lows earlier this week, the EUR curve is increasingly set on three rate hikes.”

Stock markets across Europe opened in positive territory despite the drop in Asian shares following another sell-off in AI-related stocks on Wall Street on Wednesday.

The Euro Stoxx 50 opened 1.2% higher but the broader pan-European Stoxx 600 rose was flat in early trading.

Germany’s Dax and France’s CAC 40 were both up by 1%, while the UK’s FTSE 100 led with a 1.2% gain. Meanwhile, Italy’s FTSE MIB rose by 0.7%.

In other dealings, Asian shares mostly fell on Thursday after another sell-off in artificial intelligence stocks weighed on Wall Street, while oil prices rose.

Japan’s Nikkei 225 lost 0.5%, South Korea’s Kospi fell 0.2%, and Australia’s S&P/ASX 200 slipped 0.2%. Taiwan’s Taiex declined 0.4%.

Hong Kong’s Hang Seng index edged 0.2% higher, while Shanghai’s Composite index dropped 0.2%.

On Wall Street, on Wednesday, the S&P 500 fell 1.6%, marking its first consecutive decline in three weeks. The Dow Jones Industrial Average dropped 1.9%, while the Nasdaq Composite lost 2%.

Wall Street has been unsettled since last week, when AI stocks reversed course after hitting record highs. Investors are weighing whether the recent pullback has eased concerns over excessive optimism or signals the beginning of a more prolonged downturn.

Super Micro Computer, which sells AI servers, plunged 28% after announcing late on Tuesday plans to raise $7 billion through sales of common stock and convertible preferred shares. Companies often seek to raise capital when share prices are elevated, though such moves can dilute existing shareholders’ stakes.

Micron Technology swung between gains and losses before ending down 4.7%. The stock has experienced sharp volatility in recent sessions, having fallen 7.7% last Thursday, dropped a further 13.3% on Friday and then rallied 9.9% on Monday. Despite the swings, its shares remain up 212.5% so far this year.

Nvidia, the chipmaker that has grown into a nearly $4.9 trillion company on the back of the AI boom, was the biggest drag on the S&P 500 after falling 3.7%. Broadcom, another major AI beneficiary, lost 5.1%.

Some pressure on AI-related shares may also be linked to investors raising cash ahead of several high-profile stock market debuts in the United States. SpaceX’s initial public offering could take place later this week.

Weakening stocks for companies with big fuel bills also pulled the market lower. United Airlines sank 6.2%, and cruise operator Carnival fell 6.3% after oil prices rose due to the latest fighting in the war with Iran.

Oil prices and US inflation

Brent crude rose 1.8% to $93.10 a barrel on Wednesday after President Donald Trump warned that Iran would “pay the price” for stalled negotiations between the two sides over the conflict. The war has effectively closed the Strait of Hormuz to oil tankers, disrupting crude shipments from the Persian Gulf to customers worldwide.

Higher oil prices have added to inflationary pressures. A report released on Wednesday showed US consumer prices rose in May at the fastest annual pace in three years.

Traders are increasingly betting that the Federal Reserve will need to raise its benchmark interest rate at least once this year in response to persistent inflation and a resilient labour market.

Higher yields can slow economic growth and weigh on a range of investments, including stocks and cryptocurrencies. They tend to hit the most highly valued assets hardest, and some critics argue that enthusiasm around AI has inflated a market bubble.

In early European trading, Brent crude was up by 0.5% at $93.60 a barrel, while US benchmark crude gained 0.7% to $90.70.

The US dollar traded at 160.58 Japanese yen in the morning. The euro rose slightly to $1.1542, and the UK pound cost $1.3377.

The gold prices dipped by 0.6% to $4,109.60 an ounce.

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Venezuela: Monthly Inflation Hits 18-Month Low, Exchange Rate Gap Persists

The USD-bolívar exchange rate has nearly doubled in 2026. (EFE)

Caracas, June 9, 2026 (venezuelanalysis.com) – Venezuela has registered the lowest month-to-month inflation figure since October 2024.

According to the Venezuelan Central Bank (BCV), consumer prices went up by 6.3 percent in May. Inflation has fallen for four consecutive months after hitting 32.6 percent in January, following the US military attack and kidnapping of President Nicolás Maduro.

Overall, prices have more than doubled in the first five months of 2026, and accumulated 12-month inflation currently stands at 525 percent. 

Despite the widespread use of the US dollar in cost structures, prices have likewise gone up by 12.5 percent over the last year when measured in USD, meaning a loss of purchasing power even for those with incomes pegged to the official exchange rate.

Venezuela’s inflation remains heavily correlated with currency instability. Despite the Central Bank devaluing the USD-bolívar exchange rate by more than 30 percent since March and providing significantly increased volumes offoreign currency to the private sector, a 30-40 percent gap remains between the official and parallel market rates.

Since January, the BCV has directed over US $5.5 billion in foreign currency via bank-run exchange tables, at more than double the rate of 2025, according to figures from Banca y Negocios. However, the chasmbetween official and parallel rates has persisted.

Many economists have identified the stabilization of the foreign exchange market as a necessary step for macroeconomic recovery, but critics have pointed to a lack of regulation and accountability in forex allocation as fueling currency speculation.

Caracas’ monetary and fiscal policy is presently subject to US control. Since January, the Trump administration has mandated that Venezuelan export revenues, principally oil sales, be deposited in US Treasury accounts. Washington returns an undisclosed portion of the proceeds at a time of its choosing.

The White House has likewise imposed that disbursed funds be channeled directly to the private sector via foreign exchange auctions, as well as outside auditing of Central Bank accounts by consulting giant Deloitte. Secretary of State Marco Rubio indicated in January that the Venezuelan government headed by Acting President Delcy Rodríguez would need to submit a “budget request” before accessing its own resources.

For its part, the Rodríguez administration has fast-tracked a series of pro-business reforms tailored to attract foreign investment, including in the oil, mining, and electricity sectors. 

As part of efforts to court US investors, Economic Vice President Calixto Ortega reportedly took part in a closed-door meeting with US officials and corporate representatives hosted by the Atlantic Council, a hawkish Washington-based think tank funded by the US government, its allies, and major corporations.

The opening to foreign investment has seen Western business executives flock to Caracas in recent weeks, often escorted by White House officials, to explore opportunities. Pro-Trump tech billionaires such as Fred Ehrsam have made repeated visits, while Peter Thiel’s Erebor Bank struck a corresponding banking agreement with Venezuela’s largest public bank.

Javier Kulesz, a strategist from investment bank Jefferies, relayed optimism after a visit to the South American country and forecast an imminent “stream of announcements” related to the country’s debt restructuring and investments in key economic sectors.

Edited by Lucas Koerner in Caracas.

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India’s fertility rate falls below replacement level: Why it matters | Demographics News

India’s fertility rate has for the first time fallen below the level needed to stop the population from shrinking, raising concerns about future labour shortages and an ageing society.

For decades, India has seen rapid population growth. According to government statistics, including the Sample Registration System (SRS) Statistical Report — the country’s largest demographic survey — India has had a falling fertility rate for some years, but the reproduction rate remained high enough to keep the population growing.

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The latest SRS report, released last month by India’s Office of the Registrar General and Census Commissioner, said that India’s Total Fertility Rate (TFR) had dropped to 1.9 children per woman – lower than the benchmark level of 2.1 needed to keep the population stable in the long run. TFR is the average number of children that a woman is expected to have in her lifetime. In the 2000s, India’s TFR was around 3.3 births per woman.

So, what is behind reduced fertility? Why does it matter and what are the consequences?

Here’s what we know:

What has led to the falling fertility rate ?

For decades starting in the 1970s, Indian governments and policymakers have tried to battle what they argued was overpopulation — too many people, and too few resources to manage for what was then a relatively poor nation.

Many top-down government initiatives — including a brief controversial effort to forcibly sterilise people in the 1970s — aimed to control India’s population.

Despite that, by 2019, India’s Prime Minister Narendra Modi was still warning of a “population explosion”.

But by 2022, the first signs that India was about to tip over into uncharted territory: The National Family Health Survey released data suggesting that India’s TFR was falling fast, across communities. Yet a year later, India surpassed China to become the world’s most populous nation — and the trend of a declining fertility rate was swamped by the headlines of a 1.5 billion population.

Now, latest survey suggests that the prospect of a shrinking population might be more imminent than policymakers had planned for.

Experts say better access to education and contraceptives are among key factors behind the falling fertility rate — along with the increased costs of bringing up children.

“Total fertility rate often drops when more women in society have access to education, contraceptives and more agency in decision-making in households,”  Dipa Sinha, a development economist who works on social policy in India, told Al Jazeera. “It also drops when the economy becomes expensive so raising children also becomes expensive.”

She said there’s another reason too.

As infant mortality reduces, the desire to have more children also decreases. According to the latest SRS report, India has recorded a significant decline in infant deaths from 30 per 1,000 live births in 2019 to 24 deaths per 1,000 live births in 2024.

These factors also correlate almost perfectly with the differential levels of fertility rates across the country.

According to the May demographic survey report, India’s poorest states, such as Bihar in northern India with the lowest levels of education and high infant mortality rates, also recorded the highest fertility rate in the country at 2.9, followed by 2.6 in Uttar Pradesh.

By contrast, India’s capital New Delhi — with among the highest levels of education and lowest infant mortality rates — registered the lowest fertility rate, with an average of 1.2 births per woman. Southern states such as Tamil Nadu and Kerala, with among the best health and education systems in India, recorded a rate of 1.3.

“A lot of studies on regional development in India from the early 80s have revealed that states in the South have developed faster with respect to both the economy and women’s status in society. So these reasons have contributed to the lower fertility rate,” Sinha said.

What are the consequences of a falling fertility rate?

In 2005, India’s population entered a stage called ‘demographic dividend’, a phase when the proportion of a country’s working age population (15-64 years) is higher than the number of old people and children who are not in the labour force. According to the UNFPA, India’s demographic dividend is expected to last until 2055.

Japan, Singapore and Hong Kong entered this phase in the 1960s and rapidly became developed economies. China entered this phase in the 1980s and — coupled with economic reforms — rapidly rose as an economy. Today it’s the world’s second-largest economy.

In India too, the demographic dividend has helped propel the economy. But millions remain unemployed and — as with China — India is far from a developed economy.

Now, with a declining fertility rate, India might not be able to reap the benefits of a demographic dividend, experts are cautioning, because of a shrinking workforce and a rapidly ageing population.

“If there are fewer children born, then in about 30 to 40 years, India will have more older people who cannot participate in the labour force as much, posing a challenge to the country’s workforce,”  Sinha said.

What is the politics behind India’s population data?

The widely varying fertility rates in different parts of the country mean that northern states — which already have higher populations — will in coming years be home to an ever-increasing share of India’s population.

Southern states have already in recent years been complaining that the Indian federal government — especially under Modi — are being “punished” with fewer funds, Sinha said. Modi’s Bharatiya Janata Party (BJP) has historically struggled to make major political inroads in southern India, though it has made gains in recent years.

Now, “the distribution of financial resources by the country’s government to state governments” could become an even bigger political flashpoint, she suggested. Later this year, India’s government will introduce a policy in parliament called “delimitation”, which will assign seats to each state according to population figures based on the subcontinent’s new census that began earlier this year and conclude in 2027.

“When delimitation comes into effect, there is a fear that the share of southern seats in the Parliament will reduce,” Sinha added.

Moreover, India’s ruling BJP has long stirred the stereotype that Muslims in India are producing more children than Hindus — fanning fears among Hindus that Muslims might some day overtake them as the majority faith in India. The Hindu far-right has been urging Hindus to have more kids. In February, Rashtriya Swayamsevak Sangh (RSS) chief, Mohan Bhagwat, urged Hindu couples to have at least three to four children to prevent the community’s long-term societal decline.

In reality, the Muslim population of India was 13 percent in the last census in 2011. Government data shows that the Muslim fertility rate has been falling faster than in any other religious group, India, including Hindus. The fertility rate among Muslims fell from 4.41 to 2.36 between 1992 and 2021, while it dropped from 3.3 to 1.94 for Hindus.

The latest survey further suggests that India’s fertility rate is falling sharply across faiths.

Is India responding to its declining fertility rate?

While the Indian government has not yet announced a nationwide policy to tackle its falling fertility rate, individual states have been trying to encourage people to have more children.

Last month, the southern Indian state of Andhra Pradesh said families will receive 30,000 rupees ($314) for the birth of a third child and 40,000 for a fourth child ($418). According to the SRS data, Andhra Pradesh’s total fertility rate is 1.4.

States such as Goa in the west and Karnataka and Telangana in the south have introduced state-funded IVF centres for first-time parents, encouraging people to have more children.

Sinha said the Indian government should respect people’s individual reproductive choices and support them.

“It is important for countries like India to develop a public policy based on its demographic structure and future needs. So if we are going to be an ageing population, then we have to be ready to help a lot of old people,” she said. The country needs “a policy now which guarantees that they have better healthcare, pensions and social security in old age”.

Which other countries in Asia have seen dramatic fertility rate declines?

Other Asian countries such as China, Taiwan and South Korea are also experiencing fast-falling fertility rates.

According to the World Bank, China’s 1.0 fertility rate is well below the 2.1 replacement level.

Taiwan’s interior ministry said earlier this year that its total fertility rate is around 0.86 and likely to fall below that.

The United Nations says South Korea’s rate is approximately 0.75 children per woman – the lowest worldwide.

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KOSPI crashes over 8 pct on tech hemorrhage, U.S. rate woes; won rises after verbal intervention

This photo, taken Monday, shows the trading room of Hana Bank in Seoul as South Korean stocks dropped more than 8 percent on concerns over AI profitability and fears over a possible rate hike by the U.S. Fed. Photo by Yonhap

South Korean stocks nosedived more than 8 percent Monday, extending their losing streak to a third consecutive session, as investors dumped market heavyweights on renewed woes over artificial intelligence (AI) profitability and concerns over a possible hawkish pivot of the U.S. Federal Reserve.

The local currency rose against the U.S. dollar after opening at a 17-year low, in the face of verbal intervention by financial authorities.

The benchmark Korea Composite Stock Price Index (KOSPI) plunged 676.18 points, or 8.29 percent, to close at 7,484.41, after falling as low as 7,442.73. The secondary KOSDAQ index sank more than 9 percent to end at 911.39.

The KOSPI’s trade volume was heavy at 448.3 million shares worth 47.8 trillion won (US$31.2 billion), with losers sharply outnumbering winners 873 to 42. Foreigners and institutions dumped local shares worth 355.5 billion won and 1.6 trillion won, respectively, while retail investors scooped up 1.76 trillion won.

The Monday crash was largely anticipated on sharp losses on Wall Street last week, fueled by semiconductor shares’ biggest daily percentage drop since March 2020 and fears over a possible rate hike by the Fed sparked by a hotter-than-expected U.S. jobs report for May.

The Dow Jones Industrial Average closed 1.35 percent lower Friday (local time), while the S&P 500 dipped 2.64 percent and the tech-heavy Nasdaq composite slid 4.18 percent.

Major U.S. chip shares sharply lost ground, with Nvidia slumping 6.2 percent, Broadcom contracting 7.92 percent and Micron shooting down 13.25 percent.

The Korea Exchange (KRX) had activated a circuit breaker for the KOSPI about three minutes after opening, halting trading for 20 minutes, and implemented a consecutive sell-side sidecar at around 9:34 a.m.

The KRX had also issued a sell-side sidecar for the secondary KOSDAQ market about six minutes after opening, suspending trading for five minutes, and activated a circuit breaker for the index later in the day after the KOSDAQ fell by more than 8 percent.

“Today’s pullback appears to be driven not by the weakening of market fundamentals, but by profit-taking sentiment among investors, mainly targeted at the semiconductor sector, as the market reacted more sensitively to negative developments after an extended rally of chip shares,” a report by Samsung Securities said.

The KOSPI has been one of the best performing stock indexes across the world in recent months, surging to near the unprecedented 9,000-point mark on Tuesday last week from the 5,000-point level earlier this year, mainly driven by major semiconductor shares, including Samsung Electronics and SK hynix.

“There is a lot at stake in this week’s financial market, with U.S. inflation data, treasury yields and the ongoing debate over the sustainability of AI-related investment all unfolding simultaneously,” said Seo Sang-young, an analyst at Mirae Asset Securities.

Han Ji-young, a researcher at Kiwoom Securities, also anticipated a “challenging” week for the KOSPI, noting that the release of the U.S. Consumer Price Index for May, the SpaceX listing and Oracle’s earnings results planned for this week may weigh on the market.

Market analysts also said news that Iran and Israel traded strikes dampened investors’ risk appetite, dimming hopes for peace in the Middle East.

Market top-cap Samsung Electronics slid 10.18 percent to 295,500 won, while its chipmaking rival SK hynix dipped 7.68 percent to 1.91 million won.

AI investment firm SK Square nosedived 11.13 percent to 1.12 million won.

Samsung Life Insurance lost 8.97 percent to 375,500 won, and Samsung C&T plunged 11.29 percent to 408,500 won.

Top automaker Hyundai Motor plummeted 8.71 percent to 639,000 won, and its auto parts making affiliate Hyundai Mobis shot down 12.2 percent to 612,000 won.

Leading battery maker LG Energy Solution pulled back 6.16 percent, and its smaller rival Samsung SDI sank 11.44 percent.

Home appliances maker LG Electronics slipped 11.55 percent to 268,000 won, while power plant manufacturer Doosan Enerbility shed 10.25 percent to 85,800 won.

Internet portal operator Naver was among the few winners, jumping 9.2 percent on news that the company is conducting a joint project with U.S. AI chip giant Nvidia to build a massive global AI factory and the nomination of Han Seong-sook, former chief executive officer (CEO) of Naver and incumbent minister of small and medium-sized enterprises (SMEs), as South Korea’s new prime minister.

SK Networks surged 30 percent to 14,170 won on SK Group and Nvidia’s announcement of a broader partnership for AI infrastructure.

The Korean won was quoted at 1,535.0 won against the U.S. dollar at 3:30 p.m., up 4.1 won from the previous session, after opening at 1,555.2 won, the lowest mark since March 6, 2009, when the global markets were in a financial crisis.

The local currency turned higher after financial authorities vowed stern action against excessive volatility and one-sided movements in the foreign exchange market.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 5.8 basis points to 3.940 percent, and the return on the benchmark five-year government bonds gained 7 basis points to 4.190 percent.

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.

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With Highway 1 open, Big Sur braces for its busiest summer in years

On a 75-mile cliff-hugging stretch of highway in California, traffic is way up, despite soaring gas prices. And locals expect the busiest summer in years.

The road is Highway 1 in Big Sur, which reopened in January after three years of repair and reconstruction following a pair of landslides. Drivers can once again embark on the state’s most famous road trip, covering the 100 miles between Cambria to the south and Carmel to the north without leaving the two-lane coastal highway. And they’re heading out in big numbers.

Caltrans estimates that as of May, Big Sur restaurant and retailer guest counts are up 40% from last year, and that northbound traffic at Ragged Point, the southern gateway to Big Sur, has risen 900% year-over-year.

People pose for photos near Bixby Bridge.

People pose for photos near Bixby Bridge. Monterey County’s Board of Supervisors voted to explore a 12-month ban on parking around the bridge.

Safety cones prevent parking along Coast Road near the Bixby Bridge.

Safety cones prevent parking along Coast Road near the Bixby Bridge.

“Take your time,” said Kirk Gafill, co-owner of the popular Nepenthe restaurant and president of the Big Sur Chamber of Commerce, offering advice to travelers. “You’re going to be sharing the road with a number of people.”

As travelers rediscover the road, the cost of driving has been shooting skyward. California’s average gas price ($6.11 per gallon as of May 26) is up 26% from the year before. In early April, rates hit $9.99 at the isolated gas station in the Big Sur community of Gorda.

For spring and summer travelers, these numbers would seem to pose a stark question: Stay home and save money, or head for the coast because the road is finally open and it’s still cheaper than flying?

So far, the latter answer is winning big.

Fog lingers off the coast of Highway 1.

Fog lingers off the coast of Highway 1.

“We are definitely seeing a huge uptick in our reservations,” said Megan Handy, assistant general manager at the upscale Treebones resort. She estimated that bookings are 30% or more ahead of last year, and rates are unchanged since then. But “it’s still not feeling super crowded, which is nice. Everything still feels kind of calm.”

But added traffic has raised some anxiety. On May 19, Monterey County’s Board of Supervisors voted to explore a 12-month ban on parking at Bixby Bridge, one of the region’s top photo spots.

Over the years, the number of cars parking near the bridge — often illegally, sometimes impeding emergency vehicles — has risen. The proposed parking moratorium won’t take effect until the supervisors discuss it further.

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Busy as things are, several business owners pointed out that many international travelers have not yet returned — perhaps because most make their plans more than six months ahead, perhaps because of global politics, perhaps a little of each.

The biggest challenge for businesses during this resurgence? “Restaffing and retaining,” said Handy at Treetops.

At Nepenthe, Gafill said his business has seen a 45% boost in guest volume since the road’s reopening. Gafill said he would have expected a 35% pickup, “simply by virtue of reopening the highway.” The additional 10%, he said, might be “all that pent-up demand,” aided by “a very beautiful and very dry winter,” followed by a mild spring.

A lunch crowd dines at popular restaurant Nepenthe.

A lunch crowd dines at popular restaurant Nepenthe.

Another possible factor: Nobody can be sure how long the road will remain open.

To cope with the influx of people, Gafill said, “everybody is trying to recruit and retain their existing staff.”

At the Ragged Point Inn, where rates dropped as low as $149 nightly last fall, rates are back over $200 and staffers are suggesting that customers book at least six months ahead. The inn has reopened its snack bar for the first time since early 2023, and management is investing in capital upgrades and staging live music on weekends throughout the summer.

Business “is up over 100%,” said Diane Ramey, whose family owns the inn. “I know not all of our neighbors are having the same lift, but everybody is doing better.”

Traffic approaching Bixby Bridge.

A visitor poses in an oversized chair at Big Sur River Inn.

A visitor poses in an oversized chair at Big Sur River Inn.

Even at the New Camaldoli Hermitage, a Benedictine monastery above Lucia, the road’s reopening and coming summer season have made a difference. Bookings are up an estimated 30% at the hermitage, which rent rooms and cottages (for two nights or more) to visitors who agree to its requirement of silence.

Big Sur business owners advise visitors to travel on weekdays for less traffic and the best hotel rates, and to get on the road as early as possible.

Since its opening in 1937, the highway has been vulnerable to landslides and shifting ground, operating on a longstanding cycle of landslide, closure, repair, reopening and then another landslide, or sometimes a fire. The U.S. Geological Survey has identified the Big Sur coastline as one of the most landslide-prone areas in the western United States. The 2023-2026 closure was the longest in the highway’s history.

Over time, road crews have used increasingly sophisticated strategies. In the most recent efforts, Caltrans said, it used drones to help survey the slopes and remotely operated bulldozers and excavators to reduce risks to workers.

During the closure, no traffic was allowed on 6.8-mile span from just north of Lucia until about a mile south of the Esalen Institute. Drivers detoured inland by way of U.S. 101.

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Chile’s birth rate falls to historic low, raising concerns

The average number of children per woman in Chile last year fell to 0.99 live births, a 59.4% decrease from 1993, according to government statistics. File Photo by Alberto Valdes/EPA

SANTIAGO, Chile, June 2 (UPI) — Chile has recorded a historic decline in births, with the birth rate falling 46.9% over the past 32 years and the total fertility rate dropping below one child per woman for the first time, raising concerns about long-term population replacement.

According to the National Statistics Institute, or INE, report “Demographic Overview of Chile,” the number of births declined to 146,446 in 2025 from 275,916 in 1993. The average number of children per woman last year fell to 0.99 live births, a 59.4% decrease from 1993.

At the same time, the share of births to foreign mothers has increased significantly. Between 2017 and 2025, the proportion nearly tripled, rising to 19.7% of live births from 6.9%.

“These are concerning figures. Chile is the most aged country in Latin America, with one of the region’s highest life expectancies at 81.5 years, comparable to Canada,” public health specialist Claudia Rodriguez, head of the Public Health Department at the University of the Andes, told UPI.

“As a result, Chile is beginning to display the demographic characteristics of a developed country without being one, and the country could soon reach a point where deaths outnumber births,” she said.

Sara Parada, director of obstetrics at Andres Bello University, said the decline reflects a combination of social, economic, cultural and institutional changes.

“Women are making reproductive decisions in a more informed environment. Greater female participation in higher education and the labor market has contributed to delaying motherhood,” she told UPI.

She said additional factors include the high cost of raising children, uncertain or unstable employment conditions, and limited support from partners in caregiving responsibilities.

“There has been a significant cultural shift. Motherhood is no longer viewed as an obligatory path for all women, but as an autonomous and informed decision that coexists with other life goals,” Parada said.

“That in itself is not negative. The problem arises when people who do want children do not find the material, labor, family or institutional conditions needed to have them.”

Parada noted that Chile’s situation is not unique and reflects a broader trend across Latin America and the Caribbean.

“Fertility has been steadily declining across the region. According to the Economic Commission for Latin America and the Caribbean, fertility reached 1.8 children per woman in 2024 and has remained below the replacement level of 2.1 children per woman since 2015,” she said.

“In 2024, 76% of countries and territories in the region recorded fertility rates below that threshold.”

She said Costa Rica registered 1.32 children per woman, Uruguay 1.40 and Argentina 1.50.

Uruguay’s birth rate continues to decline. The country recorded about 50,000 births in 2016, but the figure fell to 29,000 within a decade. The National Institute for Educational Evaluation estimates the number of students will decline by 25% by 2045.

“In less than 10 years, Argentina’s birth rate has fallen 40%. The countries facing the most severe fertility crises in the region are Uruguay, followed by Chile and then Argentina,” family specialist Lorena Bolzon told Argentine newspaper La Nacion.

Parada said Chile stands out not only for having one of the region’s lowest fertility rates, but also for the speed of the decline.

Analysts warn that a sustained drop in births could have significant long-term consequences by reducing the future working-age population, potentially affecting labor availability, productivity and economic growth unless accompanied by adaptation policies.

“It also increases the proportion of older adults relative to the active population, placing greater pressure on pension systems, healthcare spending and long-term care services,” Parada said.

She said governments should not focus solely on encouraging births, but instead adopt comprehensive measures that support families, including access to child care, work schedules compatible with family life and financial assistance for raising children.

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About 8% of the country lacked health insurance in 2025, new data shows. That could rise next year

The proportion of Americans without health insurance held steady at around 8% of the population in 2025, according to new findings from the U.S. Centers for Disease Control and Prevention.

The national survey results, released Thursday, show the all-ages uninsured rate has stayed significantly down from where it was several years ago, but the ranks of the uninsured could soon expand as the Trump administration’s sweeping changes to the health landscape begin to take hold.

Massive changes to Medicaid, the government’s safety-net health program for low-income Americans, passed into law last year could result in 10 million more uninsured individuals over a decade, according to Congressional Budget Office estimates.

And the expiration this year of certain Affordable Care Act subsidies — which had offset premium costs — is also contributing to reduced participation in marketplace health programs. Around 5 million fewer people are expected to enroll in those plans in 2026 compared with 2025, according to the healthcare research nonprofit KFF.

The government has multiple programs for tracking Americans’ insurance status, which can give different numbers depending on factors like timing and question wording. Many researchers consider the U.S. Census Bureau to be “the official scorekeeper,” said David Howard, an Emory University health policy and management professor.

But the CDC survey results tracks closely with that, and they offer the first complete data for all of 2025 — the first year of President Trump’s second term in office.

The Trump administration has sought to expand access to low-premium catastrophic health insurance plans and lower drug prices for Americans who don’t have health insurance. It has also suggested that projected insurance enrollment declines indicate a drop-off of fraudulent and ineligible enrollees, rather than eligible Americans.

Although the share of insured and uninsured stayed roughly the same in 2025 as the year before, the number of uninsured grew by about 800,000 — 300,000 of them children. The growth of the overall U.S. population helps explain that.

The survey results also suggest a possible increased insured rate among Hispanic Americans. But that may in part reflect the effects of the Trump administration’s immigration crackdown, if uninsured members of that group left the country, Howard said.

Most Americans 65 and older have health insurance through the federal Medicare program. It’s different for younger Americans, many of whom are covered through a patchwork of public and private insurance programs.

The percentage of Americans under 65 who were uninsured rose in the 1980s, 1990s and early 2000s — from 12% in 1980 to more than 18% in 2010. It fell following passage of the Affordable Care Act in 2010, which expanded Medicaid programs and enacted measures to make affordable health insurance available to more people.

By 2016 it dropped nearly to 10%, before rising to 11 to 12% during Trump’s first administration, according to historical survey data from the CDC’s National Center for Health Statistics.

The COVID-19 pandemic saw the rate of uninsured fall again, as a result of government policies put in place to preserve coverage as people faced disruptions related to the pandemic. The rate hit an all-time low in 2023, falling below 9%.

It’s not clear yet how big the increase in uninsured Americans will be this year, but experts agree it will likely rise in the coming years as a result of changes to the Affordable Care Act and Medicaid.

“The decisions being made now — in Congress, state legislatures and state Medicaid agencies — will determine what happens next,” Nancy Brown, chief executive officer of the American Heart Association, said in a statement Thursday.

“Policymakers should act immediately to protect and expand access to affordable coverage, strengthen Medicaid and maintain pathways that make coverage and care accessible,” she said. “Without deliberate action, including reversing dramatic cuts to coverage, uninsured rates will continue to rise, putting quality health care further out of reach.”

Stobbe and Swenson write for the Associated Press.

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ICE detainees are dying by suicide at an ‘alarming’ rate, an AP investigation finds

Brayan Rayo Garzon was distraught. Detained by Immigration and Customs Enforcement, he was on his fourth day of isolation in a Missouri jail as he battled the fevers and chills of COVID-19.

His request for mental health treatment had been put off, records show, and staff had forbidden Rayo from making his nightly call to his mother as a precaution intended to prevent the spread of illness.

He pleaded with his jailers in handwritten notes to arrange a conversation with her. “I feel in my heart that she’s very worried about me,” he wrote in Spanish.

A guard collected the note and walked away. Within an hour, jail records show, he was found unconscious in his cell. An autopsy determined he killed himself.

Rayo’s April 2025 death was the first suicide in a spike among ICE detainees that has alarmed public health officials and jail experts. They said the unprecedented number of suicide deaths is an indication that authorities are failing to properly oversee the detention of tens of thousands of immigrants swept up in the Trump administration’s aggressive deportation strategy.

An Associated Press investigation found that at least 10 detainees, all men, have died by suicide since President Trump took office in January 2025, a pace that far exceeds the growth in the detainee population, according to a review of ICE data, autopsy reports, coroners’ rulings and police records. Since October, seven deaths have been classified as suicides, a number that is already the most for any fiscal year in the agency’s history. ICE has usually recorded one or no such deaths annually.

“Something is going profoundly wrong from any kind of public health or mental health perspective,” said Dr. Sanjay Basu, a University of California-San Francisco epidemiologist who cowrote a study documenting the increase in mortality and suicide rates among ICE detainees. “This is one of those alarming, sudden increases.”

Nine of the deaths were of Hispanic men who had arrived in the U.S. from four countries, the AP found. One man was a Chinese citizen. Their average age was 32. While Trump has characterized those facing deportation as the “worst of the worst,” seven of the 10 had no record of violent crimes in the U.S.

The suicides account for nearly a fifth of the 51 deaths in ICE custody since January 2025. The majority of those deaths were from natural causes and experts say many of them would have been preventable with timely medical care.

Department of Homeland Security acting assistant secretary Lauren Bis said suicide deaths in ICE custody remain “extremely rare.”

Bis said detention staff follow protocols to protect detainees who show signs of self-harming and that ICE requires annual suicide prevention training. She said detainees receive comprehensive healthcare, including mental health services.

Reacting to AP’s investigation, Colombian President Gustavo Petro wrote Wednesday in a post on X that the country’s foreign ministry should issue a formal protest regarding Rayo’s death and that the U.S. government should “reflect on how its immigration policy is killing Americans and Latin Americans.”

Investigation finds violations of ICE detention standards

The reasons behind any suicide are complex, and each death often has multiple contributing factors, according to experts. ICE detainees report intense stress after being detained, fear of being returned to countries where their safety may be jeopardized, and frustration and loneliness over the inability to communicate due to language barriers.

Detainees can also feel helplessness because of the complexity surrounding immigration law. Unlike those in the criminal justice system, most detainees do not have lawyers and their detention on immigration violations is not meant to be punitive.

ICE becomes responsible for their well-being when they enter detention, and experts say well-run lockups should have few, if any, suicides. That’s because staff can take steps to mitigate the chances that detainees harm themselves by identifying those at risk, getting them care and monitoring them closely, the experts said.

AP’s investigation found that ICE detention centers have repeatedly fallen short in ways that violate ICE’s own standards.

An examination of the 10 suicide deaths found the men died across ICE’s detention network, including at centers long run by private contractors and county jails that recently became ICE partners. The AP found that staff in the facilities ignored signs of distress, delayed mental health treatment and failed to monitor detainees who were already deemed at risk. They also permitted detainees to have access to materials that could be used for self-harm, according to AP’s review of ICE inspection reports and death records.

In some cases, they jailed distressed detainees in isolation, which can exacerbate feelings of humiliation and helplessness, according to experts.

ICE has repeatedly asserted that it screens detainees within 12 hours of arrival for medical, dental and mental health conditions.

At least three of the nine facilities where ICE detainees died by suicide have struggled to meet that standard, according to ICE inspection reports and jail records.

Dr. Homer Venters, former chief medical officer of New York City jails who previously consulted with ICE on preventing detainee deaths, called the rise in suicides terrifying.

The increase “reflects failures in how the system’s being operated, and particularly failures in how the first stages of coming into detention are happening so that people aren’t being assessed adequately,” Venters said. “And then if that receiving screening picks up red flags, they’re not acted on in a way that reduces the risk of them having preventable death.”

From border crossing to detention

Among those who took their own lives was a 19-year-old from Mexico who had been detained following a misdemeanor traffic stop while riding his scooter.

Another was a 36-year-old restaurant worker who lost contact with his relatives in Nicaragua after ICE detained him in Minnesota and sent him to a crowded camp in Texas. A third was a 45-year-old who had repeatedly crossed the U.S.-Mexico border illegally and had a long criminal record.

Rayo, who took his own life after pleading to talk to his mother, was a veteran of the Colombian military who had worked as a street vendor in his home country. A week after he turned 26 in 2023, his family crossed the U.S. border in California. He was detained for three months before being permitted to settle with family in St. Louis, records and interviews show.

His mother, Adriana Garzon, said Rayo caught on quickly to life in the U.S., making friends easily and working as a housepainter and food delivery driver. He wanted to save money to hire a lawyer to help him stay in the country after a judge in 2024 ordered that he be sent back to Colombia, she said.

He was arrested in March 2025 by St. Louis police after being caught using a stolen credit card, which he had obtained from a friend, at a vape shop, court records show. ICE then took him into custody. An ICE record obtained by AP classified Rayo as a laborer who was a low risk to public safety.

ICE placed Rayo in the Phelps County jail in Rolla, Mo., about 100 miles from St. Louis.

Suicides reveal shortcomings across ICE’s detention network

The deaths have revealed holes in treatment and oversight across ICE’s system, where the detained population has spiked by 50% to 60,000 during Trump’s second term.

Five died in centers run by longtime ICE detention partners CoreCivic and the GEO Group. A sixth died at a camp operated by an inexperienced contractor that ICE has since replaced. Three died in jails run by sheriffs, and one at a federal prison.

“We are deeply saddened by and take very seriously the passing of any individual in our care,” CoreCivic spokesperson Brian Todd said.

GEO Group spokesperson Christopher Ferreira said the company trains staff on suicide prevention and seeks “to maintain a safe and secure environment in compliance with the standards and requirements set by the federal government.” Officials at the three jails either declined comment or didn’t return messages.

Leo Cruz Silva, a 34-year-old who had repeatedly illegally entered the country from Mexico, suffered an acute mental health crisis following his detention after an arrest for public intoxication last fall in a St. Louis suburb, records show.

For two nights in Missouri’s Ste. Genevieve County Jail, Cruz screamed, hid under his bed and reported hallucinations, according to an ICE report on his death. Yet he did not get help quickly.

A nurse ordered antipsychotic medications and planned to get him treatment the next week, the ICE report said.

On the third day, he was found dead in his cell.

Chaofeng Ge arrived in ICE custody last summer at a Pennsylvania facility run by the GEO Group in mental distress, having pleaded guilty to a minor gift card fraud and attempted suicide in state custody, said David Rankin, an attorney representing Ge’s family.

In five days at the facility, he did not get mental health treatment and was unable to communicate because no one spoke Mandarin, Rankin said. Ultimately, Ge went unmonitored before he was found hanged in a shower stall.

“It’s clear that ICE has taken very few steps to ensure the safety of these people,” Rankin said. “They appear to want to make this process as cruel and inhuman as possible. It’s completely unacceptable.”

At Camp East Montana in El Paso, Texas, 36-year-old Victor Diaz died by suicide in a medical holding room in January, according to an ICE report. He had been moved into isolation after reporting harassment by fellow detainees, the report said.

Days earlier at the same facility, Geraldo Lunas Campos died of asphyxia after ICE said guards restrained him following a suicide attempt. His death was ruled a homicide by a medical examiner and Trump administration officials said the FBI was investigating its circumstances.

ICE inspectors visited the facility in February, documenting 49 violations of detention standards at what was then ICE’s largest detention facility, according to their report.

The report found that staff did not record “required checks to prevent significant self-harm and suicide” while inspectors found tools and equipment unsecured and unaccounted for throughout the facility that could be used for harm. Calls to 911 show several other detainees had attempted suicide there.

At the time of the deaths and inspections, Acquisition Logistics was the contractor running the facility. ICE has since replaced Acquisition Logistics with another contractor. Acquisition Logistics did not return messages seeking comment.

Detainee spent final days sick and isolated

The Phelps County Jail had started taking ICE detainees a month before Rayo’s arrival. Sheriff Michael Kirn, a Republican in a county where voters overwhelmingly supported Trump’s reelection, told commissioners his department’s budget was hurting and partnering with ICE could generate millions in revenue.

Records show Rayo’s trouble started immediately. It took the jail 35 hours to conduct the initial medical screening ICE promises within 12 hours, according to jail records obtained by the AP under the open records law.

Rayo exhibited labored breathing and told a nurse he was anxious and wanted mental health treatment.

A nurse who didn’t speak Spanish used a “handheld translator” to assess Rayo, concluding he denied thoughts of suicide and depression, according to the documents compiled by the Missouri State Highway Patrol during an investigation into Rayo’s death.

She recommended him for the general population, listing his physical and mental condition as stable, records show. And she referred him for a routine mental health appointment.

Two days later, he reported head pain and body aches. Staff learned he was positive for exposure to tuberculosis bacteria. He was sent to a hospital, where he was diagnosed with COVID-19. He was returned to jail the following day.

The mental health appointment was scheduled but canceled due to “mental health clinic time and staff,” a jail record shows. Two days later, they again canceled his appointment, this time citing his coronavirus infection.

The delays violated an ICE standard requiring mental health treatment within a week of a referral.

Bis, the DHS spokesperson, said Rayo received “high-quality medical care during his time in ICE custody.”

To ease his anxiety, Rayo called his mother before bed to share a Catholic blessing. “I gave him strength,” said Garzon, whose first name, Adriana, was tattooed on her son’s arm.

As Rayo grew sicker with nausea, chills and aches, staff moved him into a cinderblock isolation cell with a surveillance camera overhead for closer monitoring and to prevent the spread of disease. He was not allowed to call his mother.

On his fourth day of isolation, Rayo passed two notes under his door, begging guards to let him talk to his mom. In one, which was reviewed by AP, he appealed to the guard’s humanity. “I know you have family, and you know that they worry about us,” he wrote in Spanish. “God bless you.”

The English-speaking guard used a colleague’s phone to translate the notes and wrote in a report that he planned to follow up.

Within an hour, guards found Rayo unconscious on his bed with a sheet around his neck.

Emergency responders tried to revive him, transporting him to a hospital. That’s when an official called Rayo’s mother — to let her know her son was in very bad shape and would be flown to a St. Louis medical center. At the hospital, a doctor gave her the devastating news: Her son was dead.

Foley, Biesecker and Lee write for the Associated Press.

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Martin Lewis explains how to get ‘near-perfect rate’ on your holiday spending

Martin Lewis set out some of his top picks

Consumer expert Martin Lewis has shared some tips for your holiday spending while you are abroad. He shared the key advice during his BBC podcast.

During a question and answer edition of the podcast, a query came in from a mum whose 18-year-old son is heading off on a lads’ holiday. She asked what the best spending card would be for him to take along, or whether she should simply give him cash instead. She explained that she was reluctant to give him a credit card as she wasn’t confident he would use it responsibly. However, the accommodation where he was staying required a £300 credit card deposit.

Top recommendation

In response, Mr Lewis said his top recommendation for cards she could consider was Chase. He explained: “Technically you have to open a bank account to get it, but you don’t need to switch bank account.

State Pensioners to face major tax change

“The Chase bank account is available for anyone aged 18 or older. It’s openable via an app. So effectively you can open this up, you put money in it that you want to spend and it gives you the same near-perfect rate that the bank gets when you spend, because it doesn’t add a non-sterling exchange rate fee.

“So I think that’s a really simple option. It’s a debit card, it doesn’t have an overdraft facility. It doesn’t do a hard credit check, it just does an ID check and it doesn’t affect his credit-worthiness.”

Another card he recommended was the Revolut pre-payment card, where you load the card with the amount you wish to spend. Regarding the credit card deposit for accommodation, Mr Lewis said this is a common requirement, frequently being necessary when hiring a car abroad too.

He explained that if a deposit needs to be paid on a credit card, this could prove tricky for an 18 year old as they may not pass the credit check. Mr Lewis suggested that perhaps the mum could contact the company and pay the deposit on her son’s behalf.

Big danger

Mr Lewis issued an additional warning for young holidaymakers. He said: “One of the biggest dangers for finances and young people is drinking. The problem when we drink is we lose all our sense of control.

“So it’s very difficult what you advise young people. Do you tell them take cash out so you’ve only got the amount you can spend on that day. That keeps you to a budget.

“But then it does wrong, they haven’t got any money left and they can’t get back to where they need to go, which can be dangerous.

“Or do you have a card that has an unlimited spending facility on it. It’s quite a difficult one at that age. The best thing is to be sensible and not drink too much.”

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Fed rate hikes could be coming, making bank stocks attractive – Regan Capital CIO (KBE:NYSEARCA)

May 14, 2026, 3:29 PM ETState Street SPDR S&P Bank ETF (KBE), KBWB, FTXO, , , , , , , , By: Max Gottlich, SA News Editor

Bank building

ultramarine5/iStock via Getty Images

Despite U.S. President Donald Trump’s public expectations that incoming Federal Reserve Chair Kevin Warsh will cut interest rates, one investment expert believes the central bank may actually be forced to move in the opposite direction.

Skyler Weinand, Chief Investment Officer at

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South Korea employment rate falls for first time in 16 months

Bin Hyun-joon, chief of the social statistics bureau at the Ministry of Data and Statistics, holds a press conference at the government complex in Sejong, South Korea. Photo by YONHAP / EPA

May 13 (Asia Today) — South Korea’s employment rate fell for the first time in 16 months in April as hiring growth slowed amid higher oil prices, weaker consumer sentiment and continued external uncertainty tied to the Middle East war.

The number of employed people aged 15 and older stood at 28.96 million in April, up 74,000 from a year earlier, according to employment data released Wednesday by Statistics Korea.

The increase was the smallest since December 2024 and the first time this year that job growth fell below 100,000.

The employment rate fell 0.2 percentage point from a year earlier to 63.0%, marking its first decline in 16 months.

Youth employment remained weak. The number of employed people aged 15 to 29 fell by 194,000 from a year earlier to 3.42 million, extending its decline for a 42nd consecutive month since November 2022.

The youth employment rate dropped 1.6 percentage points from a year earlier, marking its 24th straight month of decline.

By industry, wholesale and retail jobs fell by 52,000 from a year earlier, while accommodation and food service jobs declined by 29,000. Manufacturing employment dropped by 55,000.

Officials attributed the slowdown to weaker consumer sentiment and continued external uncertainty related to the prolonged Middle East war. Transportation and warehousing jobs, which are sensitive to oil prices, rose by 18,000, but the pace of growth slowed.

Agriculture, forestry and fisheries employment fell by 92,000 amid population aging, while professional, scientific and technical services dropped by 115,000 because of a high base from last year.

Health and social welfare service jobs increased by 261,000, supported by rising care demand and government-backed direct job programs for older people.

“Employment gains were led by health and welfare services, arts, sports and leisure, and real estate,” said Bin Hyun-joon, head of social statistics at Statistics Korea. “By age group, employment increased among people aged 60 and older and those in their 30s, but the pace of growth slowed from the previous month.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260513010003376

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Senate confirms Trump pick Warsh as chairman of the Federal Reserve

The Senate confirmed President Trump’s nominee to lead the Federal Reserve, Kevin Warsh, bringing new leadership to the world’s most powerful central bank at a fraught moment for the global economy.

Warsh was confirmed Wednesday in a largely party-line vote. His nomination had been thrown into doubt in recent months after Republican Sen. Thom Tillis of North Carolina said he would block the nomination while the Justice Department investigated Fed Chair Jerome H. Powell. The Powell inquiry was dropped in April, clearing the way for the Senate to confirm Warsh.

Senate Majority Leader John Thune (R-S.D.) urged colleagues to support Warsh during a floor speech Wednesday morning, saying it’s crucial that a Fed chair “understand not only the macro” but also “appreciate the microeconomy: and that’s the hardworking Americans, their jobs and their livelihoods.”

“Kevin Warsh is just such a person,” Thune said.

Warsh, 56, a former top Fed official, will become chair at an unusually difficult time for the independent agency.

Inflation has topped the Fed’s 2% target for five years and is now rising faster because of surging gas prices. The Fed’s interest rate-setting committee is divided and saw the most dissenting votes in more than three decades last month. And Powell, after years of personal attacks from the Republican president and an unprecedented legal investigation by the Justice Department, plans to stay on the Fed’s board even after his term as chair ends, potentially creating a competing power center.

Trump has demanded change at the Federal Reserve

The Fed has faced numerous threats to its independence from Trump, who has repeatedly attacked Powell for not cutting interest rates. Trump also sought to fire Fed Gov. Lisa Cook and launched an investigation into brief Senate testimony by Powell on a building renovation.

Kevin Hassett, director of the White House’s National Economic Council, said in a Fox News interview on Sunday that he believes the markets are relieved that Warsh “is going to help lower interest rates over time.”

“Obviously, data driven,” said Hassett. “I’m not putting any pressure on Kevin Warsh.”

In December, Trump said on his social media platform that he wanted a Fed chair who would cut interest rates when the stock market rose — the opposite of what traditional economics would prescribe — and added, “Anyone that disagrees with me will never be the Fed chairman!”

Trump’s comments have fueled concerns over whether Warsh will set rates based on economic conditions or seek to cut rates to appease Trump, even if doing so could worsen inflation. At Warsh’s confirmation hearing last month, Sen. Elizabeth Warren, a Democrat from Massachusetts, derided him as a “sock puppet” for Trump. Warsh declined to say that Democrat Joe Biden had won the 2020 election against Trump, who has falsely claimed that voter fraud cost him reelection.

Still, Warsh denied at the hearing that Trump had pressured him to reduce the Fed’s key rate.

“The president never once asked me to commit to any particular interest rate decision, period,” Warsh said then. “Nor would I ever agree to do so if he had. … I will be an independent actor if confirmed as chair of the Federal Reserve.”

A critic of the Fed’s leadership in the past

Warsh has been highly critical of the Fed’s recent track record, particularly the inflation spike in 2021-22, the worst in four decades, and has called for “regime change.” Yet he has provided only broad outlines of what that change would involve.

He has called for limiting the Fed’s communications, which would be a sharp shift after decades of increasing transparency. He has argued that some of its communications tools, such as quarterly forecasts of where its key rate may head, have made it harder for officials to switch gears.

Senate Democrats also have condemned Warsh for not fully divulging the details of his extensive wealth, which disclosures show amounts to at least $100 million. His investments include stakes in Polymarket and SpaceX, but he hasn’t revealed how large those holdings are. He promised to sell all such assets within 90 days of being sworn in.

“He will be the wealthiest Fed chair in history, but he refuses to provide transparency to the American people about who he is entangled with,” Warren said.

Warsh faces difficult economic conditions

The Fed is still grappling with how to respond to the 50% jump in gas prices from the Iran war. The increase has boosted inflation, which reached 3.8% in April.

The Fed is tasked by Congress with keeping prices stable, which it seeks to do by raising its short-term rate to make borrowing and spending more expensive, cooling growth and inflation.

The Fed typically looks past temporary price increases that stem from supply disruptions, such as the war’s cutoff of oil through the Strait of Hormuz, because those prices typically level off — or even fall back down — once the supply is restored.

But the Fed also followed that approach after the COVID-19 pandemic snarled global supply chains for goods, lifting prices for things such as cars, furniture and electronics. Inflation turned out to last longer than expected, and Powell and other Fed officials have acknowledged they waited too long to raise rates. Inflation surged to 9.1% by June 2022.

The Fed’s rate-setting committee has kept rates unchanged for three straight meetings as it evaluates the effect of the gas price spike. At its most recent meeting last month, three members of the committee objected to language that suggested its next move would be a rate cut. They preferred more neutral language that would allow for a hike. Many Fed watchers saw those dissents as a warning shot to Warsh that he won’t be able to easily engineer rate reductions.

A fourth member of the 12-member committee, Stephen Miran, dissented in favor of a rate cut, as he has at every meeting since Trump appointed him to the Fed’s board last September. Miran is serving until a replacement is named, and Warsh will take his spot.

Powell, meanwhile, said at a news conference April 29 that he would remain as a Fed governor until the Justice Department closes its investigation into the Fed’s building project, the first time a chair may stay on the board for an extended period since 1948. His term as a governor lasts until January 2028.

U.S. Atty. Jeanine Pirro has dropped the government’s investigation, but she has said it could be reopened if the Fed’s inspector general office, which has looked into the renovation project since last July, finds evidence of criminal activity.

Rugaber and Cappelletti write for the Associated Press.

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Gas prices, wildfire, insurance, climate – what each candidate said last night

Wildfire and insurance — issues amped by climate change — along with the price of gas, took center stage at the California governor’s debate on Tuesday night.

Here are some of the candidates’ defining statements, starting left of the stage:

Tony Thurmond

The Democratic State Superintendent of Public Instruction addressed the state’s wildfire insurance crisis, where private insurers have been dropping policies as climate changes fuels more frequent catastrophic fire. The state has allowed insurers to raise rates in return for writing more policies, but so far its backup FAIR Plan, meant to provide coverage when other companies will not, continues to grow.

Thurmond said he would withhold tax credits, subsidies and benefits from non-cooperative insurers, although moderators and other candidates raised questions about the legality of this strategy.

“The governor can certainly work with the Insurance Commissioner to say there should be no rate increase unless the insurance industry is actually writing policies. They have failed California in our greatest need. They’ve taken the money for premiums and then when people needed to have support to rebuild their homes, they said, ‘whoops, we’re not going to help you.’ Then they got a rate increase. I’m sorry, where I come from, when you do a bad job, you don’t get a raise.”

Chad Bianco

The Republican Riverside County Sheriff said insurers aren’t leaving California because of climate change, but because the state has failed to pass and enforce vegetation management and defensible space policies that would reduce wildfire risk.

“It wasn’t global warming, stop believing that. It was a failed environmental policy that doesn’t allow fire departments to prevent defensible space around our homes or clear out the brush for 30 years that are building in our mountains and in our hills that took out a city. [Insurers] specifically said we were going to lose a city, and our governor said ‘we don’t care.’ And so the insurance companies left.”

Inadequate brush clearance has contributed to other fires in the state, although it’s not a factor experts cite in the Los Angeles fires specifically.

Tom Steyer

The Democratic billionaire hedge fund founder who is positioning himself as the climate candidate in the race, touted his drive to make oil companies pay for damages from climate change, including rising insurance rates and homes lost to wildfires.

“In environmentalism, I have three real rules. Number one is polluter pays. It’s absolutely critical that if people are going to pollute and damage the environment and cause harm to their neighbors, they pay. Two, we have to include environmental justice in every single environmental rule. And third is we need to start to deploy all of the clean energy stuff that’s cheaper now and get us back to the front of the world in leading it.

“There is one person that the corporations are going after, including Big Oil, who is spending millions of dollars to stop me. The electric monopolies, PG&E, millions of dollars to stop me, because I’m the person on this stage who’s the change agent.”

Steve Hilton

The former Republican Fox News commentator said insurers should be allowed to raise rates consistent with actual wildfire risk. He also advocated for “modern forest management,” removing fuel from forests, as a way to protect against wildfires, reduce carbon emissions from fire, and revive the state’s timber industry.

“We can create jobs and opportunity in rural California and reduce carbon emissions in the process, because we won’t have the mega wildfires.”

Asked if he supports the transition to electrification, he promoted natural gas: “Yes, but let’s be sensible about electric. Right now, we have a fleet of gas fired power stations generating electricity that are running at 10 to 15% of their capacity, even though we have abundant natural gas in California that we could be using to generate affordable, reliable electricity that would lower the cost of electric bills for consumers and businesses.”

According to the U.S Energy Information Administration, California’s natural gas production provides less than one tenth of what the state consumes.

Xavier Becerra

The former Health and Human Services Secretary said he would call a state of emergency as governor to require wildfire insurers to freeze rates and come to the table.

“This affordability crisis is hitting every family, and we have to act as if this were a break glass moment … Rate payers have to understand what their risk is, so they understand why they are going to pay for what they’re going to pay for their home insurance. But an insurance company has to be open and transparent about how its pricing its policies so people can afford it.”

Moderator Julie Watts noted that California home insurance rates are below the national average and questioned the legality of a freeze.

Katie Porter

The former Democratic Orange County Congresswoman was asked whether California should keep its refineries. Two of them closed in the past year, reducing the state’s refining capacity by 20 percent and causing California to lean more heavily on imports.

She said the state should keep the remaining refineries open, but also rapidly scale up green energy to meet the state’s growing electricity demand: “Right now we need to keep all of our energy sources online. That’s just the reality that we’re in. … Right now those refineries, they’re up, they’re running, they’re creating good jobs. Let’s keep them there. But I want to be really clear … The people who work at those refineries, and the people who live in Kern County also face some of the worst pollution and lower life expectancies. Green energy gets us out of that.”

She also backed an idea to have state dollars cover insurance for insurers, known as reinsurance.

Matt Mahan

Democratic San Jose Mayor called to suspend the state’s 61 cent-per-gallon gas tax, used to fund road repairs, bridges, and public transport. The state is looking at a $216.4 billion revenue shortfall over the next decade due to increasing fuel economy and electric vehicles. The other Democratic candidates support keeping the tax; Mahan has instead proposed a flat fee on all vehicles.

He said: “I’m the only candidate on this stage who has pledged to suspend and then reform the gas tax. It is the most regressive tax in California. Working people, rural people, are spending three times as much maintaining our roads as wealthier EV owners.”

On the wildfire insurance crisis he said: “The government in Sacramento created so many restrictions, including taking over a year to approve any rate changes, prohibiting insurance companies from using climate data to project future costs, that they stopped writing new policies. The answer is bring them back, force them to compete, allow them to appropriately price risk, and then hold government accountable for maintaining our wildland, reducing all that vegetation and wildfire risk so that we don’t have these catastrophic fires.”

Antonio Villaraigosa

The former Democratic L.A. mayor expressed his concerns with the readiness of the state’s infrastructure to support a transition to electric vehicles.

“We need an all of the above strategy that understands we’ve got to transition from oil and gas to renewables. But here’s an example: the 2035 mandate [to ban gas-powered car sales]. We built 167,000 charging stations in the last 10 years. We need 2 million more to get to that mandate, and if we build them, we don’t have a grid. So we ought to build the grid instead of arguing about whether or not we need an all-of-the-above policy.”

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Warsh says he got no pressure from Trump to cut rates even as president publicly pushes for them

President Trump’s nominee to chair the Federal Reserve said Tuesday that he never promised the White House that he would cut interest rates, even as the president renewed his calls for the central bank to do so.

“The president never once asked me to commit to any particular interest rate decision, period,” Kevin Warsh, a former top Fed official, said under questioning by the Senate Banking Committee. “Nor would I ever agree to do so if he had. … I will be an independent actor if confirmed as chair of the Federal Reserve.”

Warsh’s comments came just hours after Trump, in an interview on CNBC, was asked if he would be disappointed if Warsh didn’t immediately cut rates and responded, “I would.”

The comments underscore the challenge faced by Warsh, 56, a financier and former member of the Fed’s board of governors whom Trump named in January to replace the current Fed chair, Jerome H. Powell. Democrats on the committee accused Warsh of flip-flopping on interest rates over the years, supporting higher interest rates under Democratic presidents and advocating rate cuts during Trump’s time in office. Investors are watching the hearing closely to see how Warsh balances Trump’s demands with worsening inflation, as the war in Iran pushes up the price of gasoline.

Higher inflation typically leads the Fed to raise rates, or at least keep them unchanged, rather than cut them. When the Fed changes its key rate, it can affect mortgages, auto loans and business borrowing.

Yet Warsh’s account was challenged by Sen. Ruben Gallego, an Arizona Democrat, who said that Wall Street Journal reporting last year found that Trump had urged Warsh to reduce borrowing costs.

“Who’s lying here? Is it you or the president?” Gallego asked.

“I think those reporters need better sources,” Warsh responded.

For all the back and forth, the hearing didn’t appear to advance Warsh’s nomination, which has been delayed by a Justice Department investigation into the Fed and Powell, over brief testimony Powell gave last June before the same panel about a building renovation.

Sen. Thom Tillis, a North Carolina Republican on the committee, reiterated Tuesday he wouldn’t vote for Warsh until the investigation is dropped. With the committee closely divided and all Democrats opposed to his nomination, Tillis’ opposition is enough to bottle it up in committee.

“We have got to get rid of this investigation,” Tillis said, “so I can support your nomination.”

Tillis has previously said that all seven Republicans on the committee have signed a letter stating that Powell did not commit a crime when he testified before the panel last June. Federal prosecutors, led by U.S. Atty. Jeanine Pirro, are investigating his testimony for potential perjury, though a judge said last month they offered no evidence to support the charge when he threw out subpoenas Pirro had issued.

Prosecutors from her office as recently as last week sought access to the Fed’s building project but were turned away, revealing that the Trump administration has not reversed course despite opposition from members of his own party that are essential to Warsh’s confirmation.

In his opening remarks, Warsh told the Senate Banking Committee that one of his top goals would be to fight inflation, which remains elevated at 3.3% annually.

“Congress tasked the Fed with the mission to ensure price stability, without excuse or equivocation, argument or anguish,” Warsh said. “Inflation is a choice, and the Fed must take responsibility for it.”

Warsh would be in a tough spot if confirmed. Inflation is worsening, making it much harder for the Fed to implement the interest rate cuts Trump so desperately seeks. The conflict could also slow the economy, as well as hiring. And if Warsh ultimately becomes chair, he may very well find his predecessor, Powell, still sitting on the Fed’s governing board, an uncomfortable arrangement that hasn’t occurred since the late 1940s.

Warsh said the Fed’s political independence is “essential,” and that the central bank wasn’t threatened when “elected officials — presidents, senators, or members of the House — state their views on interest rates.” Trump has repeatedly urged Powell to cut the Fed’s key rate from its current level of about 3.6% to as low as 1%, a view almost no economist shares.

Sen. Elizabeth Warren, a Massachusetts Democrat, said that Trump has not just stated his opinions on rates, but has sought to fire a Fed governor and is investigating Powell.

“The Senate should not be aiding and abetting Donald Trump’s illegal takeover of the Fed by installing his chosen sock puppet as chair,” she said Tuesday.

Warren also noted that Warsh has not disclosed all of his financial holdings, which include investments in startups and private companies, or the size of those financial stakes. For example, Warsh has said he has holdings in SpaceX and Polymarket, but has not said how large those investments are.

Warren charged that Warsh is not in compliance with ethics requirements. Warsh argued that the Office of Government Ethics has signed off on his plan to sell all his assets within 90 days of his confirmation.

The turmoil could make a potential transition from Powell to Warsh an unusually turbulent one for the world’s most pivotal central bank, which has historically experienced smooth transfers of power. Should the change in leadership prove particularly bumpy, it could unnerve markets and lift longer-term interest rates.

Powell’s term as chair ends May 15. He said last month that he would remain as chair until a successor is named. Powell also is serving a separate term as a member of the Fed’s governing board that lasts until January 2028. Fed chairs typically leave the board when their terms as chair end, but Powell said last month he would remain on the board, even if a new chair is approved, until the investigation is dropped.

Trump said he would fire Powell if he attempted to remain at the Fed. Yet Trump’s previous attempt to remove a Fed governor, Lisa Cook, has been tied up in court. During oral arguments in January, a majority of justices on the Supreme Court appeared to lean toward leaving Cook at the Fed.

Rugaber writes for the Associated Press.

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