A new strike in the U.K.
British railway system employees held a new round of strikes, and some areas were completely shut down. On May 31, local time, the British Train Drivers Union held a new round of strikes due to the unresolved long-term disputes with train operators and the government over wages and other aspects. The strike will affect 16 railway companies. In addition to May 31, the British Train Drivers Union also held a strike on June 3. Only about 40% of trains run during the strike, with some areas completely out of service. In addition, the National Union of British Rail, Maritime and Transport Workers went on strike on June 2. About 50% of the rail lines were closed during the strike.
According to British media, the high inflation rate is one of the important reasons for this round of strikes. This is a way for employees to protest the soaring cost of living, especially in the public service, where wages are far behind high inflation. At the same time, the government’s economic and social policies have not been implemented continuously and steadily. A few months ago, the staff of the British railway system held a large-scale strike. Nearly four-fifths of the railway services were suspended, and railway services in most parts of Scotland and Wales were paralyzed.
The strike will have a serious impact on the travel of people traveling abroad during the summer holiday. In addition, the strike will have a serious impact on the travel of the audience. Mick Whelan said that the development of the railway system is related to the future of the country. The railway staff do not want to cause inconvenience to passengers because of the strike, but the negotiations have reached an impasse and an agreement cannot be reached, so they have to consider taking actions such as strikes.
UK manufacturing PMI continues to shrink
An industry survey released on June 1 showed that British manufacturing output continued to shrink in May, falling for the third consecutive month. The final value of the British Manufacturing Purchasing Managers Index released by S&P Global on the same day was 47.1%, lower than the 47.8% in April, and further below the 50% threshold for distinguishing between growth and contraction. PMI is a barometer of macroeconomic changes and plays an important role in monitoring, forecasting and early warning of national economic activities. S&P Global noted that the decline in May partly reflected weakness in new orders and fewer working days due to increased public holidays.
Britain’s economy has performed better than expected so far this year, defying many recession forecasts, but it remains one of the slowest advanced economies to recover from the hit from the Covid-19. S&P Global said UK overseas orders fell sequentially as demand fell in the US and continental Europe. In April, orders from overseas markets for British manufacturing fell sharply. In May, new orders fell at the fastest pace in four months. Some analysts also said that in response to the uncertainty of customers, British manufacturers have taken measures to destock and tighten cost control, resulting in a contraction in manufacturing output and new orders, a reduction in jobs, and an inevitable downturn in market sentiment. The sluggish state is expected to continue further.
Free trade agreement between UK, Australia and New Zealand
The free trade agreement signed by the UK with Australia and New Zealand came into effect on June 1. This is the first trade agreement signed by the UK since Brexit. Under the terms of the trade agreement, UK tariffs on all goods exported from Australia and New Zealand will be removed, as will access to these markets for services trade, and procedures for digital trade and work visas will be slashed. According to the forecast of the British government, the free trade agreement will promote bilateral trade with Australia to increase by 53%, and bilateral trade with New Zealand by 59%, thereby promoting economic development.
It is a historic moment that Britain’s first free trade agreement after Brexit came into effect. British businesses and residents will benefit from this, and imports from Australia and New Zealand will also ease the price problem in the UK. Wilson, chief executive of DHL Express UK, said the new free trade agreement provides a great opportunity for businesses, which will help customers achieve greater growth in international trade.
The Reserve Bank of Australia just announced that it will raise the benchmark interest rate to 4.1%
On June 6, the Reserve Bank of Australia raised the benchmark interest rate by 25 basis points to 4.1%. Nationally, commodity prices rose an average 6.8% in the year to April, up from the year to March. The purpose of the RBA raising interest rates is to reduce household spending and thus reduce inflation. If more people spend less, there will be less consumer demand for goods and services, and prices will fall accordingly.
