Bank of England keeps interest rates at 4.25% but hints at cuts to come

The Bank of England has left interest rates on hold at 4.25%, though it signalled further cuts in the cost of borrowing later this year after “clearer evidence” of rising unemployment amid a slowing economy.Six members of the Bank’s nine-member monetary policy committee (MPC) voted to keep rates on hold while three supported a reduction to 4%, to add to the four quarter-point cuts since last August.The Bank’s governor, Andrew Bailey, said interest rates “remain on a gradual downward path” after “seeing signs of softening in the labour market”. He cautioned, however, that the world was “highly unpredictable” and it was difficult to predict when interest rates would next be reduced

Recruiter Hays warns global slump in hirings will halve its profits

A slump in hiring activity at businesses around the world means profits will more than halve at Hays, the global recruitment company has warned, sending its shares down more than 10%.Demand for new permanent staff has fallen sharply, reflecting “low levels of client and candidate confidence as a result of macroeconomic uncertainty”, Hays told investors in an unscheduled update.The recruiter, which finds workers across the world for corporations such as Airbus and Sony, now expects its pre-exceptional operating profit to be about £45m for its current financial year, compared with City expectations of £56.4m. Last year Hays reported a profit of £105

Shell boss warns of ‘huge impact on trade’ if Israel-Iran conflict escalates

An escalation in the Middle East conflict could have a “huge impact on global trade”, the boss of the oil company Shell has warned, as Donald Trump suggested the US could enter the air war between Israel and Iran.Shell, one of the biggest traders of oil and natural gas in the world, said it had contingency plans in case the conflict disrupted flows from the region. There is a risk that a blockage in the strait of Hormuz could shock the energy market.Speaking at an energy conference in Tokyo, Wael Sawan, the chief executive of Shell, said: “If that artery is blocked, for whatever reason, it has a huge impact on global trade… We have plans in the eventuality that things deteriorate.”About a quarter of the world’s oil trade passes through the strait of Hormuz, which links the Persian Gulf to the Indian Ocean

Federal Reserve holds interest rates, defying Trump’s demand to lower them

The US Federal Reserve kept interest rates on hold, but signaled it might make two cuts this year, as Donald Trump continues to break with precedent and demand lower rates.Policymakers at the American central bank lifted their projections for inflation this year, as the US president stands by his controversial tariff plans, and downgraded their estimates for economic growth.Uncertainty has faded, they said, but remains significant. The Fed chair, Jerome Powell, cautioned that officials expect tariffs imposed by Trump to increase prices over the course of the summer.“Increases in tariffs this year are likely to push up prices and weigh on economic activity,” Powell told reporters

John Lewis tells some head office staff to work in office at least three days a week

John Lewis is asking some head office staff to spend at least three days a week in the office or out on the road in the latest shift away from working from home.The department store group said members of its commercial teams – which include those working in buying and merchandising – should work no more than two days a week from home from July. Previously they were allowed to work up to three days a week at home.The change at the employee-owned group, which is renowned for its good treatment of workers, including access to holiday homes and a generous pension scheme, comes amid a broader shift among businesses ranging from the retailer Boots to Amazon and JP Morgan, which have told staff they must return five days a week.Last month, HSBC told staff in its UK high street banks that it may cut their bonuses if they did not work in the office at least 60% of the time

What could Albanese do to improve productivity? Here is a short, non-exhaustive list | Greg Jericho

In his address last week at the National Press Club, the prime minister announced a “productivity roundtable” in concert with the Productivity Commission’s latest inquiry into the issue. I won’t be at the roundtable but I do have a few ideas.First off, remember that productivity is the amount you produce with the hours and equipment you have. Work better with what you have or (usually) get better equipment to do your work faster, and productivity increases.It is not about reducing the cost of producing things