Business
China to ease chip export ban in new trade deal, White House says
China will begin easing an export ban on automotive computer chips vital to production of cars across the world as part of a trade deal struck between the US and China, the White House has said.
The White House confirmed details of the deal in a new fact sheet after Xi Jinping and Donald Trump met in South Korea this week.
The nations also reached agreements on US soybean exports, the supply of rare earth minerals, and the materials used in production of the drug fentanyl.
The deal de-escalates a trade war between the world’s two largest economies after Trump hit China with tariffs after he entered office this year, leading to rounds of retaliatory tariffs and global business uncertainty.
Chinese Embassy in Washington spokesman Liu Pengyu told the BBC in a statement that details of the agreements reached had been shared by “competent authorities”.
“China-US economic and trade relations are mutually beneficial in nature,” he said.
“As President Xi Jinping noted, the business relationship should continue to serve as the anchor and driving force for China-US relations, not a stumbling block or a point of friction.”
Speaking on Sunday following the release of the deal details, Treasury Secretary Scott Bessent told CNN: “We don’t want to decouple from China… (But) they’ve shown themselves to be an unreliable partner.”
Much of what is in Saturday’s fact sheet was announced by Trump and other officials following the meeting between the two leaders.
Trump had described the talks, held in South Korea, as “amazing”, while Beijing had said they had reached a consensus to resolve “major trade issues”.
One of the issues addressed in the deal was the export of automotive computer chips. There had been concern that a lack of chips from Nexperia, which has production facilities in China, could create global supply chain issues.
Nexperia is a Chinese-owned company, but is based in the Netherlands. About 70% of Nexperia chips made in Europe are sent to China to be completed and re-exported to other countries.
The fact sheet states that China will “take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China, allowing production of critical legacy chips to flow to the rest of the world”.
It follows Beijing saying on Saturday that it was considering exempting some firms from the ban.
Last month, the likes of Volvo Cars and Volkswagen warned a chip shortage could lead to temporary shutdowns at their plants, and Jaguar Land Rover said the lack of chips posed a threat to their business.
On other key issues, Beijing will now pause export controls it brought in last month on rare earth minerals – vital in the production of cars, planes and weapons – for a year.
The White House also said it would lower tariffs brought in to curb the import of fentanyl into the US, with China agreeing to take “significant measures” to deal with the issue.
Fentanyl is a synthetic drug manufactured from a combination of chemicals, and while it is approved for medical use in the US, the powerful and highly-addictive substance has since become the main drug responsible for opioid overdose deaths in the US.
The chemicals used in its manufacturing, some of which have legitimate uses, are mostly sourced from China.
On soybeans, China has committed to buying 12 million tonnes of US soybeans in the last two months of 2025, and 25 million metric tonnes in each of the following three years – which is roughly the level they were previously at.
China’s decision to stop purchasing soybeans from the US earlier this year denied American farmers access to their largest export market.
In response, Trump revived a bailout for farmers which was in place during his first term in office.
Business
Consumer healthcare mega merger: Kimberly-Clark to acquire Tylenol maker Kenvue in $48.7 billion cash and stock deal; $1.9 billion cost savings targeted post-merger – The Times of India
Kimberly-Clark is set to acquire Tylenol maker Kenvue in a cash-and-stock transaction valued at approximately $48.7 billion, creating one of the world’s largest consumer health goods companies, AP reported.Under the terms of the agreement, Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing. Based on Kimberly-Clark’s closing share price on Friday, the deal values Kenvue stock at $21.01 per share.Following the merger, Kimberly-Clark shareholders will own around 54% of the combined entity, while Kenvue shareholders will hold about 46%. The companies said the merger is expected to generate annual net revenues of approximately $32 billion in 2025. They also identified an estimated $1.9 billion in cost savings to be realised within the first three years after the deal closes.“With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life,” said Kimberly-Clark Chairman and CEO Mike Hsu in a statement.Hsu will lead the merged company as chairman and CEO, while three members of Kenvue’s board will join Kimberly-Clark’s board upon closing. The combined company will retain Kimberly-Clark’s headquarters in Irving, Texas, and maintain a significant presence at Kenvue’s existing locations.The acquisition is expected to close in the second half of next year, pending approval from shareholders of both companies.In early trading, Kimberly-Clark shares dropped more than 15% before the market open, while Kenvue’s stock surged over 20%.
Business
Business news live – Banks bet on interest rate cut and UK bills rise 8% in a year
Interest rates: five steady cuts after sharp correction up
It’s sometimes hard to keep pace with everything around interest rates, how much it has all changed and the wider impact it has.
This chart helps display the rate of change, at least: post-Covid we had basically a zero rate for a long period, but the cost of living crisis across 2022 and 2023 saw interest rates shoot higher in quick succession as the BoE tried to stem inflation, which hit 11%.
Since last year the base rate began to decline, we’ve had five cuts in total.
Three this year came in February, May and August.
Karl Matchett3 November 2025 09:20
Economics expert explains why BoE may wait for Budget
Thomas Pugh, chief economist at tax firm RSM UK, is one of those who thinks the MPC will remain prudent for now.
“Financial markets have gone from pricing in less than a 25% chance of another rate cut by the end of the year to a two-thirds chance now, due to a lower inflation peak and rumours of a less-inflationary budget,” he explained.
“We doubt this will be enough to tempt the Monetary Policy Committee (MPC) into a rate cut next week. We expect a 3-6 vote for a hold. But it throws the door wide open to a rate cut in December, especially if the budget is deflationary.”
Karl Matchett3 November 2025 09:00
‘Odds 50-50’ on a December rate cut
Not everyone is immediately convinced, of course.
Plenty still think it’s more likely that the BoE will persist with their cautious approach so far and at least wait for one more monthly set of data to be taken in before opting to cut.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, points to the money market still being split on December at the moment.
“London stocks have a touch higher this morning as investors brace for a pivotal week at the Bank of England. Rates are widely expected to stay at 4% on Thursday, but the real debate is whether policymakers deliver a cut in December, with odds hovering near 50-50. With stubborn inflation and slowing growth, expectations for the year ahead are in the balance.
Karl Matchett3 November 2025 08:40
Barclays join calls for interest rates cut
Last week Goldman Sachs said they think a rate cut is in the offing, and now Barclays have joined them.
Noting that “shop price data point to further disinflation in October”, Barclays analysts have suggested the Bank of England’s MPC members will provide a split vote – they predict 5-4 – but the ultimate outcome will be a cut.
“We acknowledge the decision remains finely balanced, but expect the recent downside inflation and labour market news to tip the vote to a cut,” read the analysis note, from Jack Meaning and Silvia Ardagna.
Food inflation is a key tipping point in the vote, they predict, and it appears to be on the way down (disinflation).
Karl Matchett3 November 2025 08:20
Inflation data behind change of heart on interest rate cuts
Rewind the tape a few weeks and banks, economists and analysts were unified in their belief: no interest rate cut pre-Budget, quite possibly none for the rest of 2025.
However, inflation data for September changed all that.
We didn’t hit 4% as expected, and now the worst is expected to have passed.
On the back of that, jobs data came in weaker again too as companies continued to reign in the hiring and vacancies were down to a multi-year low.
Now, more than one bank has changed its tune.
Karl Matchett3 November 2025 08:14
Business
Rail security to be reviewed after train stabbings, says minister
Jennifer MeierhansBusiness reporter
PA MediaThere will be a review of rail security in the UK following a mass stabbing on a train, Transport Secretary Heidi Alexander has said.
A man has been charged with 10 counts of attempted murder after the knife attack on a Doncaster to London service on Saturday night.
Alexander told the BBC the government would “review security arrangements” and respond “swiftly and in a proportionate way”.
But she did not think airport scanning technology “is the right solution for stations in the UK”.
Questions about passenger safety on the UK’s rail network have been raised after a a black British national, who boarded a train at Peterborough station, attacked passengers with a knife.
Eleven people were treated in hospital including a member of train staff who is said to be in a “critical but stable condition”.
Anthony Williams, 32, from Peterborough has been charged with 10 counts of attempted murder, one count of actual bodily harm and one count of possession of a bladed article, British Transport Police (BTP) said on Monday morning.
Alexander told BBC Breakfast that BTP officers would increase visible patrols at mainline stations over the coming days “because I do understand that people will want to feel reassured following what happened”.
“Thankfully incidents like this on the public transport network are very, very rare,” she added.
She said the rail network in the UK was a “low crime environment” and for every one million passenger journeys only 27 crimes were committed.
Asked what steps the government would take to improve security on trains, she said: “We are investing in improved CCTV in stations and the Home Office will soon be launching a consultation on more facial recognition technology which could be deployed in stations as well.”
Asked about luggage scanners similar to those used in some major train stations abroad she said: “At the moment that type of airport scanning technology I don’t think is the right solution for stations in the UK.”
Andy Trotter, former British Transport Police Chief Constable told BBC Breakfast Saturday’s attack illustrates “people’s real concerns about being trapped with an offender or with someone causing disorder”.
“I hope this results in a broader review of security, the need for more British Transport Police, the need for more security from the rail companies themselves.”
Senior Reform UK politician Zia Yusuf on Sunday said he would not like to see increased security at train stations.
He told the BBC’s Sunday With Laura Kuenssberg programme it would impose “enormous friction” on the lives of law-abiding people “as a result of the actions of a tiny minority”.
He argued for a significant increase in the use of stop-and-search powers “to saturation”, saying this would remove deadly weapons from circulation.
Official figures released last month show knife crime has fallen in the past year, while NHS admissions for assaults with a sharp object are down 10% compared with 2024.
Overall violent crime showed “no statistically significant change” from 2024, but remains a third lower than it was a decade ago and 75% down on its peak in 1995, while homicides have reached their lowest point since at least 2003.
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