economics

The BBC's Steve Rosenberg reports that Russia is facing growing economic difficulties, but the Kremlin shows no sign of scaling back its war in Ukraine. High spending on the military continues to strain the economy, yet the conflict drags on, raising questions about how long Moscow can sustain both the war and domestic stability.

Germany is being described as placing its economic future on military rearmament, with defence spending increasingly framed as a pillar of the country's economic strategy. The claim is drawing wide attention, feeding a broader debate about whether large-scale rearmament can drive German industry, jobs and growth while Europe navigates heightened security concerns.

Economists are split over whether the US Federal Reserve will raise interest rates before the end of the year, with analysts offering competing views on inflation, employment and the pace of economic growth. The debate matters for households, businesses and markets, since Fed rate decisions influence borrowing costs on mortgages, loans and credit across the American and global economy.

Stock markets dropped worldwide as geopolitical upheaval pushed investors toward safe-haven assets, sending oil prices and bond yields higher. The surge in volatility highlights how sensitive markets remain to escalating international tensions, with traders weighing the risk of prolonged disruption to energy supplies and broader economic fallout if the situation deteriorates further.

Chinese authorities have signalled fresh economic stimulus measures aimed at countering a worsening slowdown in the country's economy, according to Bloomberg. The announcement points to growing concern in Beijing over weak growth momentum, with the property sector among the key pressure points. Markets and analysts are watching for details on the scale and timing of any support package.

Australia's central bank has lifted its key interest rate to the highest level in 15 years as it tries to bring inflation under control. The move makes borrowing more expensive for households and businesses, and signals policymakers remain willing to tighten further despite concerns about slowing economic growth and mounting pressure on mortgage holders.

The United States and China have reached a trade deal to lower tariffs on roughly $30 billion worth of "non-sensitive goods", following a meeting between President Trump and President Xi this week. The agreement is expected to reduce prices on a range of consumer products, including small appliances, toys and holiday items, and is drawing wide attention as a step toward easing trade tensions between the two economies.

The Council of the EU is drawing attention to Europe's push to build its own independent payment system, reducing reliance on foreign networks such as Visa, Mastercard and US-operated platforms. The discussion centres on digital sovereignty, with European policymakers arguing that control over payments infrastructure is now a matter of strategic and economic security.

Australia's central bank has raised its benchmark interest rate to its highest level in around 15 years, according to the Financial Times. The move means more expensive borrowing for Australian households and businesses, and is aimed at curbing inflation. Reactions so far focus on the pressure this adds to mortgages and the broader cost-of-living squeeze.

A Russian newspaper is warning of a "deterioration of the economic situation" in Russia, a striking admission from the country's own press. BBC's Steve Rosenberg highlighted the warning, which is drawing wide attention as observers weigh what it signals about the state of Russia's wartime economy.

Australia's central bank has lifted interest rates to their highest level in 15 years, a move aimed at curbing persistent inflation. The decision means higher borrowing costs for households and businesses, and signals that policymakers remain willing to tighten further despite pressure on mortgage holders.

Russia's full-scale invasion of Ukraine has reached the five-year mark, with the conflict continuing to reshape global politics, economics and security. Coverage marks the anniversary by highlighting the war's far-reaching consequences, from energy and food markets to NATO dynamics and ongoing questions about Western support for Kyiv and prospects for peace.

Australia's central bank has lifted its key interest rate to the highest level in 15 years in an effort to bring inflation under control. The move means higher borrowing costs for households and businesses, and it signals that policymakers remain determined to curb price growth despite the pressure on mortgage holders and the wider economy.

Russia is set to increase its military spending by 27% as the war in Ukraine continues to escalate, according to a Bloomberg report. The planned surge signals Moscow's intent to sustain and intensify its military campaign, pouring significantly more resources into defense despite mounting economic pressure and sanctions.

European Central Bank President Christine Lagarde said rising bond yields will weigh on economic growth and help bring down inflation, comments that traders and analysts are reading as a signal the ECB may not need to raise rates further. Markets are watching closely for confirmation ahead of the bank's next policy decision.

Australia's central bank, the Reserve Bank of Australia, has raised its cash rate to its highest level in 15 years, according to Reuters. The move means higher borrowing costs for Australian households and businesses, and signals the bank is still working to bring inflation back to target despite signs of economic slowing. Markets and economists will be watching for hints on whether further tightening is ahead.

Iran's president has stated that all Iranian money held in China has been frozen, according to an emerging report circulating on prediction and news platforms. The claim, if confirmed, would have significant implications for Iran's economy, which has relied on Chinese purchases of its oil and credit lines as sanctions limit access to Western financial systems. Details about the amount involved, the reason for the freeze, and Beijing's response remain unclear.

Media reports say Russia plans to increase its military spending by 27% in 2027, which would take defense expenditure to the highest level since the full-scale invasion of Ukraine began. The proposed budget signals that Moscow intends to sustain and potentially expand its war effort, placing continued priority on military funding despite economic pressures.

The US Supreme Court has ruled against most of the tariffs imposed by Donald Trump, invalidating the bulk of his trade measures. The decision marks a major legal setback for the president's trade policy, striking at the core of an economic agenda that has defined his administration's approach to imports.

Saudi Arabia has withdrawn from a China-led cross-border currency platform, according to the Financial Times. The move is seen as a setback for Beijing's efforts to build alternatives to the dollar-based global payments system, and observers are weighing what it signals about the Gulf kingdom's financial alignment with Washington versus its deepening economic ties with China.

The Philippine Coast Guard says the Chinese research vessel Jia Hai Ke 7 has entered the Philippine exclusive economic zone. A Filipino aircraft spotted the ship 38 nautical miles off Itbayat and repeatedly challenged it by radio, demanding it explain its presence. The incident adds to a string of maritime encounters between the two countries in the disputed South China Sea.

President Donald Trump has rejected an Iranian proposal that would have opened the Strait of Hormuz and brought an end to fighting between the two countries. The strait is a critical artery for global oil shipments, and the rejection keeps tensions high and raises questions about the risk of further escalation in the region. Markets and governments are watching closely for Tehran's next move.

The United States is threatening to ground Iranian airlines from operating worldwide starting Wednesday. The warning, reported by Al Jazeera, would bar Iranian carriers such as Iran Air from international airspace and airports. The move signals a further escalation in tensions between Washington and Tehran, and observers are watching how Iranian authorities and international aviation bodies will respond before the deadline.

World leaders are meeting in New York for the UN General Assembly, with the annual gathering focused on ongoing conflicts, economic uncertainty and global security. Discussions around peace efforts for Ukraine are among the prominent topics drawing international attention at this year's session.

Saudi Arabia has resumed oil exports through the Red Sea, according to the Wall Street Journal. The move revives shipments through the Bab el-Mandeb strait, a route halted for years over attacks on tankers blamed on Iran-aligned Houthis, and is being read as a strategic and economic setback for Iran.

Italy has approved a law allowing the country to produce nuclear energy again, reversing a ban in place for nearly four decades. The move ends a prohibition dating back to referendums after the 1987 vote, and opens the way for new reactors as Italy seeks reliable, low-carbon power and reduced dependence on imported energy.

Electric car sales in Europe have surged 52%, with the boom attributed to record-high fuel prices that put gasoline at roughly $10 per gallon in some markets. Commentators note that soaring petrol costs are making the switch to electric vehicles economically compelling for drivers, and the trend is being read as evidence that price pressure at the pump, more than policy alone, is accelerating Europe's shift away from combustion engines.