Cover Story
Issue 01A U.S. official said Washington and Tehran agreed to halt attacks and continue technical talks under a June 17 memorandum of understanding after several days of strikes following an incident in the Strait of Hormuz. Iran had not confirmed a final decision, and the report did not indicate Iranian official confirmation of the pause.
Moody’s said India’s investment-grade rating and stable outlook are not at risk if the fiscal deficit for the year ending March 2027 rises to about 4.8% of GDP from the budgeted 4.3%, citing temporary energy-price pressure, 6% growth expectations and post-pandemic fiscal consolidation, while noting elevated debt-service costs.
ECB Governing Council member Martins Kazaks said there is no near-term need for the central bank to deliver several rate increases in quick succession. Reported comments indicated he prefers a patient meeting-by-meeting approach as new data arrive, following the ECB’s June 25 basis-point rate increase amid elevated uncertainty.
Airbus will receive a €3 billion European Investment Bank financing package for research, development and innovation projects in France, Germany and Spain covering commercial and defence aviation. The first €1 billion tranche was signed in Brussels on Monday, and the EIB said the commitment is its largest financing package for a corporate borrower.
Brazil’s official forecasters and NOAA see a high probability of El Niño developing in the second half of 2026, a pattern linked to wetter conditions in the South. Rio Grande do Sul, which produces about 70% of Brazil’s rice, is still dealing with 2024 flood losses, silo damage and production costs that exceeded May 2025 paddy prices.
Bank of England data for May 2024 showed net approvals for house purchase fell to 60,000 from 60,800 and remortgaging approvals to 29,600 from 29,900. Net mortgage borrowing by households slowed to £1.2 billion from £2.2 billion, while the effective rate on new secured loans rose to 4.79% from 4.74%.
Spain’s Economy Ministry increased its 2026 growth forecast to 2.6% from 2.2% and said output should remain above 2% through 2029 in an updated macro framework required for the 2027 budget. June inflation was reported at 3.2%, with higher electricity and gas prices offset by lower motor fuel prices.
Bridgepoint said it will pay $759 million in cash and about 189 million new shares for the Florida-based business, with further payments tied to performance. The deal adds a real estate arm to Bridgepoint’s platform and would lift assets under management to about $117 billion, subject to approvals and fund consents.
The court is hearing Apple’s challenge to a 2025 ruling that set FRAND terms for an Optis portfolio of standard-essential 4G patents at $0.15 per device, producing a $502 million lump sum plus interest. The appeal also covers royalties on past sales and treatment of related foreign patent cases.
Virgin Media O2 said the consumer fixed market remained under competitive pressure in Q1 2026, with ARPU pressure and a £468.3 million adjusted free cash flow outflow. The planned £2 billion nexfibre acquisition of Substantial would add wholesale access commitments for Virgin Media O2 and remains subject to regulatory approvals.
Reuters reported on June 26 that Volkswagen is considering closing or winding down production at four German sites and raising planned job reductions to as many as 100,000, with the proposal due for discussion on July 9. Industry surveys show German suppliers are also cutting hiring and delaying investment amid weaker demand, tariffs and competition from Chinese automakers.
Reuters and industry groups said shipping through the Strait is unlikely to normalize immediately after any political reopening because mines still need to be located and cleared, routes and naval procedures coordinated, and insurers, charterers and shipowners satisfied on residual risk before regular oil transit resumes.
The companies said their international enterprise operations will be combined in a 50:50 venture expected to generate about $4 billion in annual revenue and serve more than 3,000 customers in over 180 countries. Closing is targeted for 2027 pending approvals, and BT will report its International division as a discontinued operation until completion.
Via Yuyuantantian, a CCTV-affiliated account, China said it could withstand a further worsening or even a freeze in EU trade ties if Brussels keeps tightening restrictions while treating talks as a formality. The signal came before a June 29 meeting as the EU pursues negotiations while preparing additional trade and supply-chain measures.
China’s commerce ministry said 20 Japanese entities were placed on an export control list, barring exports and third-country transfers of China-origin dual-use items, while another 20 were added to a watch list subject to stricter licensing and end-user checks. The measures took effect on June 29.
The program announced on June 29 includes two fabrication sites each for Samsung Electronics and SK Hynix in the southwest, plus 81 trillion won for a packaging cluster in Chungcheong. Company and government disclosures indicate site selection and infrastructure needs, including power, water and labor, are still being worked through.
A U.S. official said Washington and Tehran agreed to halt attacks and continue technical talks under a June 17 memorandum of understanding after several days of strikes following an incident in the Strait of Hormuz. Iran had not confirmed a final decision, and the report did not indicate Iranian official confirmation of the pause.