Global Markets: Central Banks Hawkish as Oil Nears $130; Apple Reports Record Earnings; Spain's Child Poverty Crisis
Oil prices held steady on Friday, poised for a second weekly gain, after U.S. President Donald Trump insisted on maintaining a naval blockade of Iranian ports, raising fears that the vital Strait of Hormuz could remain closed for an extended period. Brent crude briefly touched $130 a barrel earlier in the week, stoking inflationary pressures worldwide.
Central Banks Turn Hawkish
As oil prices surged, central bankers in Frankfurt and London signaled a more aggressive approach to monetary policy. The European Central Bank and the Bank of England indicated they are considering interest rate hikes to combat rising inflation, a shift that sent ripples through bond markets. Investors now expect faster tightening cycles in the eurozone and the UK.
Apple Reports Record-Breaking Quarterly Results
Apple delivered blockbuster earnings, surpassing Wall Street expectations with record revenue driven by strong iPhone 16 sales and expanding services revenue. The company's wearables segment also showed robust growth. CEO Tim Cook highlighted momentum in emerging markets, despite global economic headwinds.
Spain's Child Poverty Crisis Deepens
A new report reveals that Spain has one of the highest child poverty rates in the European Union, with nearly one in three children at risk of poverty or social exclusion. The pandemic and subsequent cost-of-living crisis have exacerbated the problem, prompting calls for urgent government action. Advocacy groups are demanding increased social spending and targeted support for vulnerable families.
Other Key Developments
- UK Prime Minister Keir Starmer vowed to use "the full power of the state" to tackle antisemitism following a stabbing incident in north London, promising tougher legislation and enhanced security measures.
- Oil markets remain volatile as geopolitical tensions in the Middle East persist, with analysts warning of potential supply disruptions if the Strait of Hormuz blockade continues.
This briefing was compiled from Bloomberg sources.