higherfor even longer. the us federal reserve predicts it'll cut the cost of borrowing just once this year despite signs of progress in the battle to control inflation. there has been modest further progress towards our inflation objective. we will need to see more good data to bolster confidence that inflation is moving sustainably towards 2%. that didn't stop the s&p 500 and nasdaq from closing at new record highs for the third day in a row. i for the third day in a row. think the market is happ lot i think the market is happy. a lot of people suddenly say no rate cuts. they will take the one. also coming up, how much is too much? tesla's board wants to give elon musk a pay deal worth $56 billion — the biggest in corporate history. early indications are most

shareholders are in favour. welcome to business today. i'm sally bundock. we start in the us where the cost of borrowing will be staying higher for a while longer. the us federal reserve left its key interest rate unchanged on wednesday at its highest in more than two—decades and signalled it only expects to make one cut this year. the fed though is predicting four more cuts in 2025. the decision came just hours after some encouraging news on its battle to control inflation. america's official consumer price index showed prices rising at an annual rate of 3.3% in may. that was down 0.1% on april's rate and was lower than expected. but it's still way above the fed's inflation target of 2%. erin delmore in new york

has all the details. economic datasets can feel abundant, these are two big deal events. we've only seen them happen on the same day seven times in the last decade. to start, the consumer price index. that's the key inflation gauge that held good news wednesday morning for american consumers and the fed. it showed inflation cooling slightly in may after a few particularly hot read—outs in the first few months of the year. at 3.3% the yearly price increase was lower than expected and slower than the 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 cooled as well. that's the kind of news federal reserve officials are looking for. but it was not enough to warrant an interest rate cut. here is federal reserve chairjerome 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 at this time. the fed held steady, making no change to the current benchmark interest rate. that stands at 5.25% to 5.5%, more than two decade high. officials consistently said they want inflation down sustainably toward the 2% target. this marks a seven straight meeting 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 new york.

dr sean snaith is director of the institute for economic forecasting at the university of central florida. good to have you with us. what did you make of whatjerome powell was saying following on from their meeting this week? i think the fed has been a bit polyamorous when it comes to interest rate cuts. in the december meeting, those dot plots adjusting a large majority of the committee thought they would be free interest rate cuts this year. here we are injune and there has not been one. i think the challenges the progress towards the 2% inflation target has really slowed to a crawl this year. i think it is unlikely they will be able to cut rates this year nor do i think they should. we don't have the data to support that and we are two

plus years into this battle against inflation. the central banks credibility is going to come under strain if they are not able to make progress faster. it not able to make progress faster. , , , ., faster. it is interesting you sa that faster. it is interesting you say that because _ faster. it is interesting you say that because jerome . faster. it is interesting you - say that because jerome powell say that because jerome powell is teeing up that there will be one cut this year presumably and possibly for next year. i spoke to some economists that say that interest rates might have to go up in the us. that is back on — have to go up in the us. that is back on the _ have to go up in the us. that is back on the table. - have to go up in the us. that is back on the table. i - have to go up in the us. twat is back on the table. i think there is feeling sometimes among central banks that they can definitely navigate these soft landings but monetary policy is more complex and nuanced than that. that is on the table. certainly they don't want to talk about it too loudly at the fed, there were comments byjerome powell that sort of cracked the door at that they might need to do more to bring inflation down. the

problem here in the us is it is taking so long to get to be target expectations about inflation are starting to drift off. people expecting inflation to remain high, which in turn makes the fed'sjob more difficult and bring it down. the federal reserve is completely dependent on government, there is an election, president biden would love a few interest rate cuts before then.— before then. certainly financial _ before then. certainly financial markets - before then. certainly i financial markets would before then. certainly - financial markets would and thatis financial markets would and that is where you would see the immediate effects. there are lags for interest rate cuts to the economy but it would be something that would be favourable to debate and administration but as you say, the fed should not be considering these things. it should be data driven, focused on maintaining their credibility because this is

more precious than any gold reserves the central bank can hold. if they don't get inflation down within the next six or nine months, i think the problem gets even more difficult for them to solve. thank you for your analysis. let's stay in the us because the outlook from the federal reserve has done nothing to derail this weeks rally on wall street. the s&p 500 and the nasdaq both closed at new record highs for the third day in a row, led by the technology giants. apple stock doing really well again, some 6%. let's just show you those closing numbers in the us and how all that is playing out in asia.

age are reacting to all of the news coming from the federal reserve as well as with the bit of a more muted picture in asia. so why is the prospect of only one interest rate cut this year being taken so well by the markets? here's what one wall street investor had to say. we have had an overheated cba for a bunch of months and it was nice to see what i call a benign cba. and the market has responded accordingly, stocks are a big, that is all good. in terms of the fed policy, i don't think there is a surprise. three rate cuts is out, gone. the economy has been too strong. one rate cut makes sense. if the market is upset about one rate, we would be selling off but we are rolling back so the market is happy and

a lot of people suddenly saying no rate cuts. they will take the one. let's speak to fiona cincotta from city index. good morning. give us your reaction to all of this. i mentioned the fact apple shares did really well two days in a row. when apple moves upwards, the whole market is taken with it. ., the whole market is taken with it. . , , , ., it. that is bright. first of all, it. that is bright. first of all. we _ it. that is bright. first of all, we are _ it. that is bright. first of all, we are expecting - it. that is bright. first of all, we are expecting a l all, we are expecting a volatile day, having the inflation data and federal reserve interest rate decision on the same day. the markets certainly did not disappoint for that wall street did what wall street does best, fresh all—time highs. big tech did really well. the apple story, not on the is it boosted by the prospect of low interest rates that actually helped the technology sector, which is particularly sensitive to interest rates are also apple

with its new ai strategy that really helped boost the apple share price. more all—time highs on wall street. we had a really strong rally. since november the only month we have not seen gains of the s&p 500 was april. this is a really impressive rally. on expectations the fed will start cutting rates at some point. interestingly, despite everything the federal reserve cho said in that slightly hawkish meeting, the markets still seem to be counting on to rate cuts busier which i think is still a little bit optimistic. is still a little bit otimistic. . ~' , ., how much is too much? today the board of tesla are asking shareholders to give ceo elon musk the biggest pay deal in corporate history. it would award elon musk around 300 million shares in tesla —

equivalent to 10% of the company. that is worth some $56 billion, hundreds of times more than any boss in america made last year. ajudge in delaware blocked the original pay—out injanuary saying the decision to award it was deeply flawed. but rather than back down, tesla's board will put a similar deal to a shareholder vote later today. they also want to move the firm's legal base away from delaware to texas. early indications are that they may win both votes on x mr musk is claiming that they are winning by a wide margin a source quoted by reuters appears to back that up.

this is what elon musk is saying. thank both tesla shareholder resolutions are currently passing by a wide margin, thanks for your support. joe mccabe is president & ceo at autoforecast solutions which looks at trends in the global car industry. this has got everybody�*s attention. we're all going to be watching this very closely. you think they have got it over the bar? . ~ you think they have got it over the bar? ., ~ , ., ., ., the bar? thank you for having me. we the bar? thank you for having me- we look _ the bar? thank you for having me. we look at _ the bar? thank you for having me. we look at passlow, - the bar? thank you for having me. we look at passlow, we | the bar? thank you for having i me. we look at passlow, we are not financial advisors but we are looking at it from the internal and external pressures from its production outlet to the end of the decade and we think tesla is in every breath phase. a lot of language internally talking about how they want to use existing capacity, not invest in growth. you want things it is still attacked company and tesla is a car company, they have done this for over a decade and will

play by legacy bills. more competitive pressures coming potentially lose leadership position to try and push against chinese factors and europe. and in china with companies like byd. there are a lot of headwinds with the organisation that they need to really retool at the second. i think investors are looking at this idea of double—digit growth. the tesla, how they were before, it might be a mistake, we are seeing a levelling off of the product because of a shift in the market and be highly competitive space they are competing in.— competitive space they are competing in. elon musk has been clear— competing in. elon musk has been clear on _ competing in. elon musk has been clear on that. - competing in. elon musk has been clear on that. when - competing in. elon musk has. been clear on that. when they have a list of results, he has been open about the challenges and high interest rates and how thatis and high interest rates and how that is deterrent spending on expensive vehicles like tesla cars. the question now is shareholders, it would seem, if he is right and have voted overwhelmingly in favour, believe he is worth $56 billion and it should still be at the helm of the ceo. he

and it should still be at the helm of the ceo.— helm of the ceo. he is the figurehead _ helm of the ceo. he is the figurehead of _ helm of the ceo. he is the figurehead of that - helm of the ceo. he is the | figurehead of that company helm of the ceo. he is the - figurehead of that company he drives and says something on acts and the stock price can move regardless of what the action is. the dull back of production footprint in mexico. there was going to be a gigantic plant within is that they were going to mop taxes. i think he the next borate in autonomous and ai is a big space. apple making huge headwinds on their announcements and elon musk to be the next player in the ai space and i think you will parlay that deeper with his tesla and x and everything going on. it won'tjust be because, it is all the parts around it that shareholders are going to be seen here are ways you can take things to the next innovation level.— around the world and across the uk. this is bbc news.

let's return to the car industry now because the european union says it will impose import taxes or tariffs of up to 38% on chinese electric cars from july. european car makers are being challenged by an influx of cheaper electric vehicles from china — brussels claims chinese firms are being unfairly subsidized. but the situation is complicated. european firms don't want to upset china where they sell a lot of cars. and some, like bmw, make cars in china to export to europe. well, china has been responding. our asia business correspondent nick marsh is on this for us. nick, what are they saying? i'm going to shock you. the chinese response has been one thatis chinese response has been one that is not very happy with

these latest tariffs. yesterday these latest tariffs. yesterday the chinese foreign ministry said what the eu was doing was a typical case of protectionism. today the tone slightly softer in—state media. there was a piece that said was hoping the you would reconsider the tariffs and set in light of the tariffs and set in light of the sheer size, china and the eu are best served by teaming up eu are best served by teaming up on major economic and trade issues. basically why can't we just be friends? we will see what happens now and onjuly four when the tariffs are expected to come into effect. it is not great news for the european carmakers who have vested interests in china, if you want to sell to china or aren't like bmw and want to manufacture in china. the chinese authorities can very easily make life difficult for these european companies. it is a complex picture. something

that made it even more complex, something i saw this morning was share price of chinese evs have gone up today for the it might seem weird but it might be a case of these tariffs are not as bad as first feared. maximum of 30%, nothing close to be 100% the us have been putting in on chinese evs. it could be the classic thing where you sell on the perimeter and buy on the better news. thank you very much. to australia now — which has one of the highest rates of pet ownership in the world. australians are now spending more than $20 billion a year on their pets — in a huge industry that has grown rapidly since the pandemic. in reponse — virgin australia plans to allow dogs and cats to travel with their owners in aircraft cabins this year after rolling out the service in the us. from sydney, phil mercer reports come through! many businesses know

a trick or two about making money from dogs. from daycare to vets and grooming, australia's pet industry that grew rapidly during the covid pandemic is worth billions of dollars. across australia there are more pets than people, and dogs are the nation's favourite. there is an appetite in the australian market to have a dog in the house and it's one of the things that make the house a home, it's a family member, some people's only child or extra child, particularly with dogs, the love and fun they give you and the the joy is unmatched. the bond australians have with their pets is strong, despite economic uncertainty. but many animals are abandoned or taken to shelters. thejiji rescue cat cafe in sydney offers the unwanted a second chance. i don't think it 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 cheap. if they got sick, even consultations cost a lot. there are physical and psychological benefits of having a furry friend. it is sociable and you get plenty of exercise. there is a significant economic dividend — its estimated that each year australians spend 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. what i've noticed since the third or fourth increase 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. there is definitely a pinch. despite the challenges, working with dogs has its rewards. you get to hang around with people who like dogs like bonnie, which gives

you a challenge, but it's a great 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. there you go. would you fly with your pad? do tell. i am on x. with your pad? do tell. i am on x_ __ with your pad? do tell. i am on x. —— pets. finally, it's been called the super bowl of the art world. artworks from 285 galleries and a0 countries are up for sale this week in basel, switzerland — at one of the world's most important art fairs. art basel has been running every year for more than half a century, it opens to the public today. high interest rates

and political and economic uncertainty though, could mean a tougher market this year. we have seen a bit of a slowdown. that is actually in line with broader economic trends. consumers are spending a little bit less this year, at least spending less aggressively to be more accurate. that has come through into the art market. be high end of the art market has a bit more of a slowdown where more midpriced items and art market terms have been a bit more sustained. it is not dramatic. we are not seeing our sales plant of the edge of a cliff or anything like that, it is a reasonable market for the people are attending galleries and events and so on, the outbursts are still attracting people. cooling is probably the right way to think about what is happening.

noah horowitz is ceo of art basel. he joins us from basel switzerland. a very big day for you and time ahead is busy.— ahead is busy. talk us through what will happen _ ahead is busy. talk us through what will happen this - ahead is busy. talk us through what will happen this week. i ahead is busy. talk us through i what will happen this week. who is going to grab everybody�*s attention? which exhibitors? thank you so much for having me. we are here in basel, affair that has been around since the 1970s. a tremendous bear this year. a lot of talk. on tuesday there are vips and today to the public. some extraordinary works are in unlimited which is a sector for large—scale artworks and installations. there was an extraordinary presentation of robert frank the americans, the iconic photography book that really defined mid century america and all 80 for works

coming directly from the artist. on the three full additions ever made. that is one of the things basel can bring to audiences. also an enormous keep going freeze that was initially installed in new york in 1980 for. it is a football field long, absolutely magnificent and really caught people �*s attention. magnificent and really caught people 's attention.— magnificent and really caught people 's attention. there is a hu . e people 's attention. there is a huge spectrum _ people 's attention. there is a huge spectrum from - people 's attention. there is a huge spectrum from the - people 's attention. there is a - huge spectrum from the emerging to be established artists on display. what do you make of the comments we heard earlier that actually it is quite a tricky market at the moment, because of high interest rates, cost of living pressures, etc? we are very cognizant that we are operating in a tricky environment today, a high interest rate environment, multiple elections that have starkly capped some collectors on the sidelines. at the same time, it is a very human thing.

we have seen resounding energy and interest in the fairer this year. visitor numbers are up year. visitor numbers are up year on year collectors all over the road pouring into the halls. we are seeing positive early indications, extremely strong scales at the high end of the market and also from some of the youngest of names that are true discoveries to audiences which is something that is one of the strengths, urging artists and galleries from all over the world and giving platforms, notjust to be most famous iconic masterworks and household names but younger artists. ., ~' , ., household names but younger artists. ., ~ , ., ., household names but younger artists. . ~' , ., ., ., artists. thank you for “oining us on such a i artists. thank you for “oining us on such a busy _ artists. thank you forjoining us on such a busy day. -

artists. thank you forjoining i us on such a busy day. bringing to an end business today. i will see you soon. hello there. it's turning more unsettled across the uk for the end of the week. we're picking up low pressure off the atlantic. that's going to bring wind and rain increasingly so across the country during thursday. although we start the day chilly and bright like we have the last few mornings. however, we cut off that arctic airflow, the blue colours, then replace it with something milder for the end of the week. however, that comes with wind and rain all tied in with this frontal system linked to low pressure. before it moves in, though, it's going to be another chilly start to thursday up and down the country. these are towns and city values could be low single digits. again, ruralspots. so plenty of sunshine around. chilly. one or two mist patches. rain already getting into northern ireland will spread across the irish sea through the morning, reaching western britain around lunchtime. some of this rain will be quite heavy at times. the winds picking up too, eventually reaching

eastern areas. all but north—east scotland and east and south—east england. here it'll stay dry until after dark. 17 or 18 degrees will be the high. that's pretty decent considering the fact there'll be a lack of sunshine. now through thursday night the heavier the rain pushes northwards across scotland and the northern isles. elsewhere, it's going to be clearspells, patchy cloud and a few showers. but look at these temperatures. vastly different how it's been the last few nights. a mild one to come with temperatures in double figures, low teens celsius pretty much across the board. for friday, low pressure sits across the uk, bringing showers or longer spells of rain. longer spells of rain will be affecting the northern half of scotland without weather fronts. elsewhere, it's sunny spells, scattered showers. some of these will be heavy and thundering places, particularly central, southern and western areas. but in between, some good spells of sunshine and that'll lift temperatures up 18 to 20 degrees in the warmest spots. friday night will be very mild again. and as we head into saturday, low pressures withers again, showers or longer spells of rain. some good sunny spells in between, though.

if you avoid the showers and stay dry all day, it could be quite pleasant. again, those temperatures into the high teens, closer to the mid—teens across scotland where we have more cloud and rain. our area of low pressure just hang around, though, for part two of the weekend, even into the start of next week. but it could be that southern parts of britain on sunday could see drier, sunnier weather at time with the rain across the north. but there'll be further showers as we head into the start of the new week as well. take care.

good morning, welcome to breakfast with charlie stayt and naga munchetty. our headlines today. labour promises to make wealth creation its number—one priority as it launches its general election manifesto. the conservatives say the party is being dishonest. a warning that long waiting times for cancer care have become routine, as specialist centres say they're experiencing severe delays for treatment. it is one a since nottingham university students barnaby webb and and grace o'malley—kumar and caretaker ian coates were killed. here in nottingham their lives will be remembered later today.

as many of us look forward to a summer holiday,