EU Officials to Visit Beijing to Discuss EV Tariffs

Good morning. The European Union will send officials to Beijing to discuss EV tariffs. Take a deep dive into the aftermath of Rachel Reeves’ first UK budget. And see why Swiss watchmakers are listening to social media influencers. Listen to the day’s top stories.

The EU will send officials to Beijing to hold more talks aimed at finding an alternative to tariffs on EVs from China, people familiar said. The two sides have been exploring whether an agreement can be reached on so-called price undertakings—a complex mechanism to control prices and volumes of exports, used to avoid tariffs. European automakers, including Volkswagen, are looking for ways to save costs as they struggle with poor demand and intensifying competition from China.

Central Banks: The Bank of Japan kept its benchmark rate unchanged at 0.25% as Japan’s political instability raised uncertainty. The yen strengthened after the central bank raised its growth forecast. The European Central Bank should take a careful approach to lowering rates and not rush further cuts, Governing Council member Joachim Nagel said. Czech National Bank Vice Governor Eva Zamrazilova said that the Czech economy is faced with inflationary risks that warrant a consideration of pausing interest rate cuts.