Economy
China’s consumer, producer prices accelerate in August
China’s consumer and producer prices accelerated slightly in August but remained subdued, official data showed on Wednesday, as the world’s second-largest economy grapples with weak domestic demand.
The consumer price index (CPI), a key measure of inflation, came in at 0.8% in August, according to the National Bureau of Statistics (NBS). The figure was up from 0.5% in July and in line with a forecast from a Bloomberg survey of economists.
Beijing has battled a persistent slump in domestic spending since the end of the COVID-19 pandemic.
The CPI has remained below the current target of 2% for more than three years, slipping into negative territory several times during that period.
The sluggish activity has presented challenges to leaders aiming to maintain growth momentum, even as exports and various high-tech sectors perform strongly.
Prices paid at the factory gate also picked up in August, the NBS figures showed, expanding 3.8% year-over-year.
That was faster than July’s 3.5% and topped the 3.6% forecast in the Bloomberg survey.
The readings come a day after data showed China’s imports and exports surged last month.
Overseas shipments have been boosted this year by heightened global demand for technology products amid the artificial intelligence boom.
Beijing is targeting economic growth of 4.5% to 5% this year, a pace that would outstrip most developed economies but rank among the lowest in decades for China.
The economy expanded just 4.3% in the second quarter, missing forecasts and marking its weakest pace in more than three years.
Flights from British airports resumed early Wednesday following a major air traffic control failure, but operators warned a full return to normal operations would take time as scrutiny of the reliability of Britain’s aviation systems intensified.
The hours-long outage Tuesday, which resulted in the cancelation of more than 1,000 flights and left hundreds of thousands of passengers stranded, has ramped up pressure on air traffic control provider NATS and its boss Martin Rolfe.
Transport Minister Heidi Alexander will later Wednesday hear from Rolfe after she summoned him to explain what happened, amid concerns that the infrastructure and technology are not up to scratch.
The shutdown comes three years after the last system meltdown in August 2023, when canceled flights on one of the busiest travel days of the year cost airlines 100 million pounds ($135 million).
A radar-related technical issue also disrupted flights in July 2025, affecting major airports including Britain’s largest, Heathrow.
“I am seeking assurances that lessons will be learned and systems that support aviation are up to the job,” Alexander said on the social media platform X.
NATS boss under pressure
Ryanair, Europe’s biggest airline, has been calling for Rolfe to resign since 2023, while Wizz Air’s U.K. managing director also said he should consider his position.
Ryanair said Britain’s airspace underperformed other countries.
“We’ve had minor issues in other places, but nothing at the scale that we see, and consistently see, in the U.K.,” Ryanair’s chief operating officer Neal McMahon told the BBC.
Rolfe, who apologised to those affected by the issue, denied that Britain was worse than other countries and said the country’s air traffic service was well regarded from a safety and resilience perspective.
“We have, at this point, ruled out cyber(attacks),” Rolfe told the BBC when asked about the cause, adding he believed it would be different to previous outages.
As operations restarted, Heathrow said passengers should check with their airline before heading to the airport as schedules would have changed due to the problems on Tuesday.
“We are expecting knock-on impacts as aircraft and crew reposition,” the U.K.’s busiest hub said in a statement.
“We… are working closely with our local NATS team and airline partners to recover normal operations as quickly as possible.”
London Gatwick, Britain’s second busiest airport, and the city’s Luton and Stansted also said they were operating but told passengers to check with their airline first.
Ryanair said around 150,000 of its passengers had been affected Tuesday and it canceled more than 200 flights, while British Airways said it had canceled or diverted 100 flights with tens of thousands impacted.
NATS is a public-private partnership which is partially owned by airlines including British Airways and easyJet, pension funds and the government.
Criticizing the 175 million pounds of dividends NATS paid to its owners last year, Ryanair’s McMahon said NATS should reinvest its profits into technology and boost its staff numbers.
Singapore’s political leaders are getting a raise for the first time in 15 years, Prime Minister Lawrence Wong said Tuesday, adding more than 60% to what are already the world’s highest ministerial salaries.
Singapore has justified high-end salaries for its political leaders, arguing they attract talent and deter graft, but the issue is thorny in the city-state, where the median wage worker made 5,775 Singapore dollars ($4,558) a month in 2025.
Wong told Parliament that under a revised salary framework, the benchmark annual pay for a minister at the lowest grade will rise to 1.8 million Singapore dollars ($1.42 million), from 1.1 million Singapore dollars ($868,330).
The prime minister’s benchmark salary will jump to 3.6 million Singapore dollars ($2.8 million) from 2.2 million Singapore dollars ($1.7 million), he said.
The government ministers who will receive raises are elected lawmakers who lead ministries and help make national policies, while allowances for other lawmakers will also increase.
But Wong said ministers and other political officeholders will not immediately move to the new salary benchmark. Instead, they will get a one-time adjustment up to 9% beginning Oct. 15, with the increase depending on performance and responsibilities.
Wong expects most ministers at the lowest grade to earn about 1.35 million Singapore dollars ($1.06 million) by the end of the current term. Salaries thereafter will vary by performance and responsibilities, rather than automatically reaching the benchmark of 1.8 million Singapore dollars, he said.
He didn’t say how much his salary would be, although a 9% adjustment would raise it to 2.4 million Singapore dollars ($1.89 million).
Political pay is a sensitive issue in Singapore as ministers earn far more than most citizens and the prime minister’s salary is among the highest for national leaders worldwide.
In comparison, the British prime minister makes $230,000 while U.S. President Donald Trump earns $400,000, according to data from non-profit PoliticalSalaries.com, which ranks the Singapore prime minister as the highest-paid world leader.
The data set shows the Hong Kong chief executive is the second-highest earner globally with $719,000 annually, followed by the Swiss president at $606,000.
“The sums involved are more than what most citizens earn, so I understand why Singaporeans scrutinize them closely and why many feel strongly about the matter,” Wong said, adding that he would donate his increment to charity for the next five years.
The government has defended the system as necessary to attract capable people from the private sector and public service and to maintain a clean government.
Singapore chose to deal with political remuneration openly, with no hidden salary components or perks outside the published framework, Wong said.
“Good government did not come naturally to Singapore. It was built deliberately over many years. And there is nothing automatic about sustaining this,” he said.
Wong said the pay issue could not be avoided simply because it was uncomfortable. Ministerial salaries had increasingly fallen behind comparable earnings in the private sector and civil service, making a review necessary, he noted.
The salary framework uses the median income of Singapore’s top 1,000 citizen earners as a reference point, with a 40% discount applied to reflect the nature of political service.
The new salary scheme would give Wong and future prime ministers “a better chance of persuading capable Singaporeans to step forward, and of building the strongest possible team for Singapore,” he said.
The new framework will be reviewed every five years, the government said.
Lawmakers will debate the issue in Parliament on Thursday.
The current political salary framework was established following a 2011 review and debated in Parliament in 2012. Salaries were cut by about 36% under that review as the public expressed concern over political pay.
Wong said it was “easier politically” for him to leave things as they were but that “would not be the right thing to do” as salaries in the private sector, civil service, judicial service and public sector had moved higher since 2012.
A subsequent review in 2017 recommended adjustments, but the government decided not to implement them. A second review due in 2023 was deferred until now because of economic uncertainty.
Referring to the top earners’ benchmark, Chong Ja Ian, a political scientist at the National University of Singapore, said: “Given rising income disparity, this could mean that ministers associate more with the very rich rather than the experiences of ordinary Singaporeans.”
Many people were too frightened to speak publicly about Elon Musk, director Alex Gibney said on Tuesday, as he unveiled his marathon documentary about the billionaire entrepreneur at the Venice Film Festival.
Gibney has made films about powerful people, corporations and organizations before: Enron, Elizabeth Holmes, Scientology and the U.S. military’s abuses at Bagram and Abu Ghraib are just a few. And yet, he said, nothing compares to the scope of power held by his latest subject.
With a nearly four-hour runtime, “Musk” is having its world premiere this week at the Venice Film Festival. It’s one of the most hotly anticipated of the festival and the year – Bleecker Street is releasing it in theaters in October.
The movie charts Musk’s rise from the dotcom era to become one of the world’s most influential figures, questioning how an unelected tech titan came to wield such sway over politics and public debate.
“There was a tremendous sense of fear of talking, really almost existential fear, both among people who were his critics, people who were his business colleagues and people who are his friends,” Gibney told Reuters.
“I talked to many, many, many, many people who, except for some of the brave people who are here, declined to speak.”
The Tesla and SpaceX chief has dismissed the film, writing on his social media platform X this month that Gibney was biased and was “obviously going to make the most convincingly terrible hit piece on me that he can possibly think of.”
Hooking up with Trump
Joined by journalist Zoe Schiffer and Ashley St. Clair, Musk’s former partner and the mother of one of his many children, Gibney said he began work on the project in 2023 and had originally planned a less ambitious movie.
“We intended to make a shorter film before Elon Musk became wrapped in the career of Donald Trump and the presidency of the United States,” Gibney said. He added that the first thing he did was to contact Musk, who declined to be interviewed.
Gibney, whose previous subjects have included the collapse of energy firm Enron and Scientology, said Musk’s ascent was “the story of the confidence man” whose empire was built on an ability to sell inflated visions and hyped-up promises.
Without necessarily presenting any new bombshells, the film links Musk’s takeover of Twitter, his government cost-cutting drive and his reliance on federal contracts to the creation of unprecedented power and wealth in the hands of just one man.
Global political agenda
The documentary uses an AI-generated version of Musk that speaks words he has uttered over the years. Asked whether he expected legal challenges, Gibney said: “We consulted our lawyers, and they gave us a sign-off to go forward.”
After embracing Trump’s MAGA movement, the film shows Musk’s growing support for far-right political causes internationally, including the surging Alternative for Germany (AfD) party.
“I think he’s pursuing a global right-wing agenda, both for ideological and for very practical and monetary reasons,” said Gibney, adding that Musk was “extremely” dangerous to world democracy.
He also offered an unflattering assessment of the billionaire’s character. “I would say he has a very difficult time with empathy,” the director said.
St. Clair, who revealed in the documentary that she had turned down a $40 million non-disclosure agreement after her relationship with Musk ended, echoed the criticism.
“His most complicated relationship is with the truth,” she said. In the film, she says simply: “Elon is a nuke.”
“Musk” is being shown out of competition at the Venice festival, which runs until Sept. 12.
Eleven European countries and Canada announced plans Tuesday to impose national restrictions on trade in goods with illegal Israeli settlements, French Foreign Minister Jean-Noel Barrot said, stepping up economic pressure over Israel’s unlawful settlement expansion.
“Today, France, the United Kingdom, Canada, Denmark, Spain, Finland, Ireland, Iceland, Norway, Poland, Portugal and Sweden confirm their intention to impose national restrictions on trade in goods with settlements that are illegal under international law and/or to support European restrictions to this effect,” said a joint declaration issued by Barrot.
The statement reaffirmed that the 12 countries are “seriously considering” adopting such restrictions or other measures in accordance with their national procedures.
“In this regard, France, the United Kingdom and Canada welcome the significant measures already taken by Ireland, Spain, the Netherlands, Norway and Belgium, and will propose national measures to prohibit trade in goods originating from settlements,” it added.
The declaration decried actions taken by the Israeli government in the West Bank that undermine the possibility of a two-state solution.
“The situation is rapidly deteriorating as settler violence and settlement expansion have reached unprecedented levels, including the unacceptable decision to issue tenders for the E1 settlement project,” it underscored.
They also stressed the need for protecting the possibility of a two-state solution and vowed their determination to work for a just and lasting peace.
“We firmly oppose any action resulting in the annexation of Palestinian land and the forced displacement of Palestinian populations,” the declaration said.
It further urged Israel to immediately halt the expansion of illegal settlements and civilian administrative powers while ensuring that settlers responsible for violence are held accountable for their actions and investigating allegations involving Israeli forces.
Britain, French and Canadian leaders said Tuesday that sanctions mark a “further turning” point in their approach to protecting the two-state solution, following penalties on illegal Israeli settlers in the occupied West Bank.
Andy Burnham, Emmanuel Macron and Mark Carney said in a joint statement that a two-state solution to the Israeli-Palestinian conflict is “critical” for peace, stability and security in the Middle East and beyond.
They noted that it is a “fundamental national interest” for the U.K., France and Canada to protect and secure that outcome.
“Systematic settlement expansion in the West Bank, including the Government of Israel’s latest decision to progress the E1 settlement, as well as the dramatic increase in settler violence, pose a direct and urgent threat to that vision for peace,” it said,
Noting that they recognized the state of Palestine one year ago, the leaders said the time has come to take further action to uphold their commitment to protect the two-state solution, their interests and to stand up for their values, “before it is too late.”
“Settlements are illegal under international law. The U.K., France and Canada will therefore take steps to ban the importation of goods from settlements and enforce targeted measures against settlements and those who facilitate them or profit from them.”
Referring to the move to impose a trade ban targeting illegal settlements in the occupied West Bank, the statement said Tuesday marks a “further turning point” in their approach to protecting the two-state solution.
“We will co-chair a meeting at the United Nations General Assembly later this month to advance our efforts and pursue peace,” it added.
Economic policymakers aim to continue implementing policies aimed at reducing the attractiveness of foreign-currency deposits, while increasing the share of Turkish lira and extending their maturities during the new Medium-Term Program (MTP) period.
Turkish officials unveiled on Sunday the new economic program covering the 2027-2029 period, seeking to curb inflation and ensure sustainable growth, while also supporting manufacturing, local agricultural development and boosting high-tech exports.
At the same time, the officials aim to maintain the attractiveness of the Turkish lira.
According to the MTP, Turkish-lira-denominated investment instruments will be encouraged, policies aligned with monetary policy regarding credit growth will be maintained and financing conditions for investment- and export-oriented activities will be improved, a report by Anadolu Agency (AA) indicated on Tuesday.
In 2026, when international financial markets experienced periods of excessive volatility due to global uncertainty and geopolitical risks, the Central Bank of the Republic of Türkiye (CBRT) encouraged a shift toward the Turkish lira through macroprudential policy measures used as a tool supporting the disinflation process and monetary policy, while ensuring that credit growth remained at levels consistent with inflation.
Within this framework, in January, the growth limit on FX loans was tightened, while a growth limit was also introduced for the limits on consumer overdraft accounts (KMH).
In March, the scope of loans exempted from the reserve requirement framework based on credit growth was narrowed. Moreover, at the end of May, growth limits were reduced for consumer loans and vehicle loans extended to individuals, KMH limits, and Turkish-lira commercial loans.
As a result of the reduction in the growth limit for FX loans, the annualized increase in FX commercial loans, adjusted for exchange-rate effects, declined to 11.2% as of Aug. 28.
In addition, in January, reserve requirement ratios were increased for funds obtained through Turkish-lira-denominated repo transactions with nonresidents and for loans obtained from abroad.
Macroprudential regulations also helped balance household indebtedness, while growth in individual credit cards and KMH slowed.
Accordingly, Turkish lira deposits became more prominent among household assets, while the rapid increase in precious metal prices led to a higher share of precious metal accounts within FX deposits.
At the same time, the banking sector’s nonperforming loan ratio rose from 2.2% to 2.9% as of July 2026 compared with the same period of the previous year, but it continued to remain below its historical average. The increase was driven by higher outstanding balances on loans to small and medium-sized enterprises (SMEs), consumer loans, and individual credit cards.
The banking sector’s stable profitability structure continued to be the most important factor supporting capital adequacy, while temporary flexibilities used in calculating the Capital Adequacy Ratio (CAR) were phased out as of 2026.
As part of the exit strategy from the KKM scheme, the opening and renewal of accounts for individuals were terminated as of Aug. 23, 2025. Following the decision, the balance of KKM accounts held by individuals, which stood at $9.6 billion, was completely eliminated by August 2026.
Within this framework, as the KKM balance – which had reached a 26.2% share of total deposits in August 2023 – was phased out, the share of Turkish lira deposits in total deposits increased to 61.5% as of Aug. 28, 2026.
On Sunday, Vice President Cevdet Yılmaz also pointed to the increase in Turkish lira deposits.
“Within the framework of the policies we have implemented, confidence in the Turkish lira has continued to increase,” he suggested.
“The rise in the share of TL deposits in total deposits from 31.6% to 61.5% as of Aug. 28 has been a concrete indication that the policies we have been pursuing are right,” he noted.
Türkiye’s national flag carrier announced Tuesday that it would become Liverpool’s main club partner starting next season, in a record deal reportedly worth more than $400 million.
Turkish Airlines (THY) will replace Standard Chartered, the Premier League club’s main club partner for about 17 years, on the front of men’s, women’s and academy match shirts from the start of the 2027-28 season, the sides said.
“From June 2027, Turkish Airlines will become Liverpool FC’s main club partner, bringing together two organizations with a shared international reach and a commitment to connecting people around the world,” the club said.
“LFC’s supporter base spans every continent, while Turkish Airlines connects east and west through the world’s most extensive international flight network, flying to more countries than any other airline from its Istanbul hub.”
The five-year agreement is worth more than 300 million pounds ($405 million), or over 60 million pounds per season, according to reports. That’s higher than the current deal with Standard Chartered said to be worth around 50 million pounds per season.
British media, including the BBC and the Guardian, said the agreement would be the most valuable front-of-shirt-only commercial deal in Premier League history.
“This is a milestone announcement for us and we are delighted to welcome Turkish Airlines as our main club partner from June 2027,” Liverpool Chief Commercial Officer Ben Latty said.
The club said the new partnership will also mark a significant moment in the history of the LFC shirt.
“The front of the shirt is one of the most recognizable positions in world sport and one that the club has historically reserved for long-term and meaningful partnerships,” said the statement.
Latty described Turkish Airlines as a globally recognized organization with an extensive international network, and said they “look forward to beginning our partnership and building a strong relationship together, with already strong foundations built from those special memories back in 2005.”
He was referring to Liverpool’s memorable UEFA Champions League triumph over AC Milan in Istanbul.
Turkish Airlines CEO Ahmet Olmuştur described Liverpool as “one of the world’s most recognized and respected football clubs, with an exceptional heritage and a truly global community of supporters.”
“We are very pleased that Turkish Airlines will become the club’s main club partner and that our name will take its place on one of the most iconic shirts in world sport,” he added.
Standard Chartered, Liverpool’s main club partner since 2010, will retain its current role through the 2026-27 season, and then move into a global partnership role the next year, the club said.
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