inflation eases in the us but not enough of be federal reserve two, record interest rates. with a higher cost of living not deterring australians from investing in theirfurry australians from investing in their furry friends, we will have the details ahead. hello and welcome to business today. we start with good news on the economy from the us. consumer price rises eased slightly last month arising just 3.3% but that wasn't enough to persuade the federal reserve to cut interest rates. the central bank held the cost of borrowing study at the highest rate in years. erin delmore has the details from new york. economic datasets can feel abundant,

these are two big deal events. we've only seen them happen on the same day at seven times in the same day at seven times in the last decade. to start, the consumer price index. that's the key inflation gauge that helps good news wednesday morning for american consumers and the fed. it should inflation calling site in may after she particularly hot rebels in the first few months of the year. at 3.3% the yearly price increase was slower than expected and slowly increase we saw in april. the data actually showed no change month to month between april and may. and the core inflation rate which excludes volatile food and energy prices called as well. that's the kind of news federal reserve officials are looking for. but it was enough to warrant an interest rate cut. here is federal reserve chair jerome powell. we see today's report as progress and is building confidence but we don't see ourselves as having the confidence that would

warrant beginning to loosen policy this time. the warrant beginning to loosen policy this time.— warrant beginning to loosen policy this time. the fed held stud , policy this time. the fed held study. making _ policy this time. the fed held study, making no _ policy this time. the fed held study, making no change - policy this time. the fed held study, making no change the| study, making no change the current benchmark interest rate. that stands at 5.25% — 5.5%, more than two decade high. officials consistently said they want inflation, and understandably toward 2%. this marks a seven street meetings without cutting interest rates. the summary of economic projections known colloquially as the dot plot showed that members of the fed are on average projecting one interest rate cut before the end of the year. there are only four meetings left this year which leaves questions about whether the fed will lower interest rates in september, the last chance before the us election, or it could cut in november or december at the tail end of the year. erin delmore reporting from the org. i have been speaking to hamish preston, head of us equities at index provider s&p dowager dynasty and he told me how the data

were affecting the markets. it were affecting the markets. if were affecting the markets. if we look today, us equities gained and the s&p 500 gains and closed an all—time high. 28 all—time high closing level for the index so far this year. if we look at today's market movements, contributing to that was the lower—than—expected cpi data. in the afternoon we actually saw muted reaction to the us federal reserve's policy announcement largely because the market had expected ahead of meeting for rates to remain unchanged. you said that investors had focused more on the guidance from the fed and the guidance from the fed and the dot plot to clean insights and form expectations around the future path of interest rates. and actually i think this has been a broader trend

of the past couple of years where investors have looked at data points from the macroeconomic to remarks from the fed to help them glean insights on the future path of interest rates. whether the expectations come to fruition, we'll have to wait and see, but muted reaction to the fed announcement.— muted reaction to the fed announcement. . ., , announcement. fair enough. give us a sense _ announcement. fair enough. give us a sense of— announcement. fair enough. give us a sense of whether _ announcement. fair enough. give us a sense of whether us - announcement. fair enough. give us a sense of whether us equity l us a sense of whether us equity market stand now compared to the pandemic period.— the pandemic period. what's interesting _ the pandemic period. what's interesting if _ the pandemic period. what's interesting if we _ the pandemic period. what's interesting if we look - the pandemic period. what's interesting if we look at - the pandemic period. what's interesting if we look at the | interesting if we look at the past four years or so, at various points in time the largest companies in the market have led the way, most recently that's been driven by the artificial intelligence trend with investors anticipating may be the application of ai stands to benefit certain companies compared to others. of course for a five years around the pandemic the largest companies or some of them benefited from that work from home

communicator online shopper environment we found ourselves in, so in some respects that are similar but obviously different narratives driving. hamish preston speaking to me earlier on the programme. we will have more news on elon musk staying in the headlights, his former employees of rocket company spacex are severely the billionaire and the firm. the engineers say there were illegally fired for raising concerns about gender discrimination and sexual harassment. the lawsuit was filed in los angeles. spacex has denied any wrongdoing. global economic charges are on the agenda at the g7 meeting which is set to start in the coming hours. us presidentjoe biden arrived for the meeting of heads of the world's most developed democracies. he is expected to speak out against russia over its war in ukraine and he will be increasing pressure on china for its support of moscow as well as its accessed industrial capacity. speaking of cheap

chinese goods flooding foreign markets, the european commission says it will impose duties of up to 38% on electric cars imported from china. it's less than a month after the us announced plans to quadruple duties for chinese tvs 200%. the consolation research leader told me what impact these tariffs are likely to have. the bi est tariffs are likely to have. the biggest impact _ tariffs are likely to have. the biggest impact is _ tariffs are likely to have. tue: biggest impact is really tariffs are likely to have. tte: biggest impact is really picky about what's going to happen to europeanjobs as about what's going to happen to european jobs as well as what's happening to the market for european tvs. what china is doing with these tariffs is dumping on the europeans and the americans in terms of car manufacturing, heavily subsidised batteries and plates and that's what the europeans are worried about. but the challenge is for a period manufacturers have a lot of capacity in china and so we have a situation where it can be interesting to balance of trade. over20% be interesting to balance of trade. over 20% of ev trades in europe were chinese origin and

europe were chinese origin and europe is in this market without trying to protect their audit exports but also manufacturing and exporting in china with manufacturing in china with manufacturing in china operations so it can be an interesting balance of trade argument, is it can be weak or protecting europeanjobs argument, is it can be weak or protecting european jobs versus potential china retaliation? beijing settled take measures to save those interests. what retaliation can be expected? the challenge here is what china is going to do with european production in china. will they put tariffs there, make it harder for them will they put tariffs there, make it harderfor them to do business in china, actually make it more expensive for them to acquire any of the ev technologies they need or battery technologies or even the battles? those are in nearby china is in a situation where it is trying to export its way out of the recession and world leaders all have caught on to the fact that they are dumping into markets and that's what the challenges. there should be a world trade organisation filing or complete out there but that has not been

effective in the past decade. the uk economy recorded no growth in april after wet weather dampened consumer spending. it's after the fastest growth in two years from january to march and in the recession from the final half of last year. despite cost of living pressures, it's of living pressures, its estimated that australians are spending billions of dollars each year on their pets. the bbc�*s phil mercer went to meet some very friends whitney. come through! many businesses know two about making money from dogs. from daycare to vets and grooming, australia applause pet industry that grew rapidly during the covid pandemic is worth billions of dollars. across australia there are more pets than people and dogs other nation's favourite. there is an appetite and this telemarketer have a dog in the house and are one of the things that make the house a home, it's a family member, some people's only

child or extra child physically with dogs they love. the joy is unmatched. the bond australians have with their pets are strong. despite economic uncertainty. but many animals are abandoned or taken to shelters. thejiji rescue cafe in sydney offers the unwanted a second chance. t in sydney offers the unwanted a second chance.— second chance. i don't think it is cheap and _ second chance. i don't think it is cheap and easy _ second chance. i don't think it is cheap and easy to - second chance. i don't think it is cheap and easy to have - second chance. i don't think itj is cheap and easy to have cats or dogs. first of all, it's a 20 year commitment, notjust a pretty present. the cost of pets is not sheep. if they got sick, even consultations cost a lot. ., sick, even consultations cost a lot. . , , , sick, even consultations cost a lot. . , i, ., lot. there are physical and psychological— lot. there are physical and psychological benefits - lot. there are physical and psychological benefits of l psychological benefits of having a furry friend. it is sociable and you get plenty of exercise. there is a significant economic dividend, it's significant economic dividend, its estimated that each year australians spent about $22 billion on their pets which include fish, birds and snakes. but cost of living pressures

have left their mark. many pet owners are cutting back where they can. owners are cutting back where the can. ~ ., �* owners are cutting back where the can. . �* ., . they can. what i've noticed since the — they can. what i've noticed since the third _ they can. what i've noticed since the third or _ they can. what i've noticed since the third or fourth . since the third or fourth entries in interest rates, people are taking a lot longer to come to the grooming table. whereas before they might�*ve come every six weeks, they're probably coming every eight or ten. , , ., ten. there is definitely a - itch. ten. there is definitely a pitch. despite _ ten. there is definitely a pitch. despite the - ten. there is definitely a - pitch. despite the challenges, working with dogs has its rewards. working with dogs has its rewards-— working with dogs has its rewards. ., ., ., ., ., rewards. you get to hang around with peeple _ rewards. you get to hang around with people who _ rewards. you get to hang around with people who like _ rewards. you get to hang around with people who like dogs - rewards. you get to hang around with people who like dogs like i with people who like dogs like bonnie, which gives you a challenge, but it's a great lifestyle. challenge, but it's a great lifestyle-— lifestyle. and it is a lifestyle _ lifestyle. and it is a lifestyle that - lifestyle. and it is a lifestyle that one i lifestyle. and it is a - lifestyle that one airline wants to get on board with. virgin australia has plans to become the country's first airline to let small cats and dogs fly in the cabin on some domestic flights. australia's love of pets is to hit new heights. phil mercer, bbc news, sydney. that's all for now.

stay with bbc news.

hello and welcome to sportsday. i'm marc edwards. less than 48 hours before euro 2024 kicks off in germany, we catch up with the scotland team tasked with spoiling the hosts' opening night party. india qualify for the t20 world cup super 8 but are made to work by the usa. the gold standard for keely hodgkinson. she tops the european championship 800m podium with the olympics just around the corner.