Here are five things you need to know this morning
Iran: Major progress in talks with U.S.
Iran says there has been “major progress” with the U.S. at a first round of talks in Switzerland. Iran’s Foreign Minister says mediators, Qatar and Pakistan, managed to ease some of the tensions over Lebanon and have agreed to a road map towards a final deal on ending their war in two months. The two sides have also opened a communications line to help ensure safe passage for commercial ships through the Strait of Hormuz. Iran is also ramping up oil exports due to the U.S. lifting a naval blockade. Negotiations are set to continue throughout the week.
Canada May inflation rises to 3.2% Y/Y
Canada’s inflation rate increased to its highest level in two years. Data from Statistics Canada shows the Consumer Price Index rose to 3.2 per cent in May on a yearly basis. Higher gasoline prices continued to drive the acceleration in inflation, surging 33.2 per cent during the month. It marks the highest since June 2022 and was fueled by uncertainty from the war in Iran. Meanwhile, the pressure on prices remain for groceries, with food inflation rising 3.8 per cent. The cost of computer equipment and software and supplies also saw the first yearly increase since 2020, driven by higher costs for memory and solid-state drives.
Canada buying Australian radar system for US$1.8B
Canada is buying Australia’s Over the Horizon Radar system for US$1.8 billion. The system will provide early warning radar coverage and track potential threats entering Canadian airspace in the North. The deal is Australia’s largest-ever defence export contract. Australian Prime Minister Anthony Albanese, says the relationship with Canada is grounded in decades of operational cooperation and shared strategic interest. Delivery is to begin on July first.
Ottawa imposing 10% tariff on some canned vegetables
Ottawa is imposing a 10 per cent tariff on some imports of canned vegetables. The surtax came into effect on Friday and will last for a maximum of 200 days. Ottawa says the move is to protect domestic processors who claim they are threatened by a surge of cheap overseas goods. The surcharge will not apply to products from the U.S., Mexico, Israel, Chile and developing countries. It comes months after the Canadian International Trade Tribunal launched a rare safeguarding investigation into a surge in imports of canned and frozen vegetables. Finance Minister François-Philippe Champagne says “unforeseen developments in global trade” may have contributed to a damaging surge in imports.
U.K. Prime Minister Keir Starmer to resign
British Prime Minister Keir Starmer has announced that he will resign by September. The decision comes after mounting pressure from Labour MPs and sets the United Kingdom up for its seventh prime minister in a decade. Starmer’s announcement clears the way for Greater Manchester Mayor Andy Burnham to launch a long-expected bid for the party’s leadership. Starmer says he will remain in office until the process of selecting a new leader is done and ensure an “orderly handover of power”.
