heading in the right direction — the european central bank warns it's in no hurry to keep lowering interest rates, ahead of the latest inflation numbers. boeing announces it will buy one of its biggest suppliers, spirit aerosystems, in a bid to improve the safety of its planes. and an english summer garden. we find out how to create a beautiful space on a budget at one of the world's biggest flower shows here in london. welcome to business today. i'm sally bundock. we start in portugal, where some of the world's most influential central bankers are gathering to discuss what's been called an era of transformation for the global economy.

hosted by the european central bank, the us fed chairjerome powell is there, along with the governor of the bank of england and a host of other leaders. the hot topic of the day is of course rising prices — inflation — and its management, as central banks use interest rates to head towards their 2% inflation targets. for the eurozone, inflation sat at 2.6% in may, which was up slightly from the month before, but significantly under half the level seen at the same time last year, a direction of travel that saw the ecb as one of the first to drop its main interest rate last month to 3.75%, a move the ecb's president christine lagarde has warned they are in no hurry to repeat as they wait

for more information, the latest of which is due out later today, with inflation numbers forjune. joining me now is andrzej szczepaniak, senior european economist at nomura. 0 good morning to you. hey. good morning. _ 0 good morning to you. hey. good morning. if— 0 good morning to you. hey. good morning. if we - 0 good morning to you. hey. good morning. if we just - 0 good morning to you. hey. good morning. if we just get| good morning. if we “ust get the data out i good morning. if we “ust get the data out oft good morning. if we “ust get the data out of the h good morning. if we just get the data out of the way - good morning. if we just get the data out of the way to i the data out of the way to begin with, what are we expecting? we expect the headline to come - expecting? we expect the headline to come down i expecting? we expect the - headline to come down more. we're forecasting 2.5% for the onnual rate. in terms of core inflation, we're forecasting that to print at 2.8%. that's broadly in line with consensus. it's important to bear in mind we have about 83% of country—level data to undercould or that. in terms of the breakdown for core inflation, services should be still quite high. we're forecasting 4.i%. others remain weak, actually! when it comes to what the ecb will do next, laggard is at pains to prepare everyone for the fact that rates won't actually come down necessarily at the next meeting. exactly. in terms of

our forecast, meeting. exactly. in terms of ourforecast, we meeting. exactly. in terms of our forecast, we expect the ecb to cut again in september and again in december this year, twice more this year. that's because services inflation and domestic inflationary pressures remain fairly elevated. laggard recently said that services inflation remains the ecb's weak spot. if we like at firm pricing power, manufacturing firms can't pay on too many price rises as a result of weak demand. services demand remains fairly resilient allowing services firms to carry on passing on wage growth to consumers. in passing on wage growth to consumers.— passing on wage growth to consumers. ., ., �* consumers. in portugal, we've mentioned — consumers. in portugal, we've mentioned that _ consumers. in portugal, we've mentioned that jerome - consumers. in portugal, we'vel mentioned that jerome powell, andrew mentioned thatjerome powell, andrew bailey, christine laggards and other big leaders are meeting in terms of central bankers. what do you think they'll be saying to one another about the current political scene? christine laggard knows french policy well. we've got upheaval in france, an election in the uk —— in the united kingdom and later in the year in the us.

your thoughts?— later in the year in the us. your thoughts? central banks have been — your thoughts? central banks have been fairly _ your thoughts? central banks have been fairly concerned i have been fairly concerned about the extent to which government and fiscal policy has been adding to inflation concerns, the idea being when central banks try to tighten monetary policy, to some extent, governments were obviously fairly loose with fiscal policy and obviously that can, in some senses, create a challenge for central banks, the idea being that government and policy is working against what central banks are trying to do which is obviously to tame inflation. 0k. it's obviously to tame inflation. ok. it's interesting and very quickly before we let you go, what's your prediction on when the us and uk will start to cut rates? in the us and uk will start to cut rates? , ., ., rates? in terms of our expectations, - rates? in terms of our expectations, august | rates? in terms of our. expectations, august for rates? in terms of our- expectations, august for the bank of england. we think they'll cut then. we think the fed will begin cutting in september.— fed will begin cutting in setember. ,, , ., ., september. super. thanks for our september. super. thanks for your time- _ september. super. thanks for your time. good _ september. super. thanks for your time. good to _ september. super. thanks for your time. good to get - september. super. thanks for your time. good to get your . your time. good to get your take on what's happening. thank ou. to the us now, for the latest move from the embattled plane—making giant boeing. around two decades ago, boeing changed the way it was doing business, and began outsourcing production of some of the major components of its biggest—selling planes. now, it's reversing course

and bringing one of its biggest suppliers — spirit aerosystems — in house. the plane—maker announced a deal to buy spirit after months of talks. our north america business correspondent erin delmore has the details. the move comes after months of renewed scrutiny on the aerospace giant after a door plug blew off a boeing jet mid—flight injanuary. that followed two fatal crashes in 2018 and 2019, which killed 346 people. since then, congress, the department ofjustice, regulators, airlines and customers have demanded boeing raise its standards on safety and quality control. the change will allow boeing to have greater oversight and influence over yet aerosystems, which has been criticised for its own share of quality problems, including ill—fitting panels and improperly drilled holes. the stock was valued at $8.3 billion including debt. now it

goes to shareholders and regulators for approval. more now on france, which is in the middle of an important election. but aside from the politics there's another huge event on the horizon — the olympics. paris 2024 will draw in competitors and fans from around the world, which should act as something of a boon for all those involved. but apparently not, according to the main airline air france—klm. it's warning of a drop in ticket sales as people are staying away from paris. so what's going on? will walker—arnott is from the wealth managers charles stanley. will, good morning to you. yes, booking trips to paris have gone down significantly. what's happening here?— gone down significantly. what's happening here? yeah, morning, sall . it happening here? yeah, morning, sally. it seems _ happening here? yeah, morning, sally. it seems rather— sally. it seems rather counter—intuitive, doesn't it? you'd expect bookings go to go up you'd expect bookings go to go up during the olympics. but it seems that tourists don't want

the romance of paris to be diluted by hoards of sports fans, so they're staying away. air france—klm announced yesterday that would result in a hit to its revenues of about 160 million euros to 180 million euros. this was during a bounce in french markets yesterday as investors diluted the results of the first round of parliamentary elections. you were talking about boeing just now in your previous piece but air france has also been under pressure and their shares are down 40% in the year to date. which is not good at all for air france—klm. but also it's what we're hearing from hoteliers and those who run hospitality venues in paris, etc. this is a huge hit for paris, isn't it? it's such a key part of their economy, the tourism. ., key part of their economy, the tourism. . ., , ., tourism. yeah. i mean before the olympics. _ tourism. yeah. i mean before the olympics, the _ tourism. yeah. i mean before the olympics, the result i tourism. yeah. i mean before the olympics, the result was | the olympics, the result was announced, the organisers said the overall benefits to the

parisian economy would be about 11 billion euros over the long term. if you sort of digest that and look into the constitute parts, firstly the service economy will benefit because obviously you've got sort of 50 million visitors coming in and that will benefit hotels and restaurants. but actually one of the key corporate sponsors, airbnb, is saying that actually the price of their lettings is going down considerably, mainly because there's been a glut of people putting their properties onto the market. the other area you'd expect to boost is construction but this will be the greenest olympics we've had to date and there hasn't been construction of many new venues. only one new venue has been built and that's the aquatic centre. and finally the french economy is not in the strongest position at the moment. there's a large deficit. a large amount of debt to gdp. they're trying to keep to gdp. they're trying to keep to budgets. remember that london went over budget. they're inviting a lot of corporate sponsors nlvmh and

carref ur have provided funds but they've put ticket prices up but they've put ticket prices up and that's caused aggravation that it's not the most successful games to date. add to that political turmoil and who knows what we'll be talking about next week. thank you. let's head to china, the world's largest producer of electric vehicles. recently, the european union and the united states announced a series of tariffs on evs made in china. chinese ev makers such as byd and geely could face tariffs as high as 48% in the eu when they come into effect on thursday. china is still negotiating. in the meantime if you've been watching the football, those brands are making themselves known. here's more from nick marsh. before the euros started, many people in europe had never even heard of byd and now you can't miss their adverts plastered around the side of every pitch in germany. interestingly,

though, volkswagen was supposed to be sponsoring this tournament, but they pulled out in their home country in order to try and save money. mercedes, another german car—maker also turned down the opportunity. and analysts are saying that's kind of emblematic of the wider picture. emblematic of the wider icture. �* , ., emblematic of the wider icture. �*, ., , . , ., picture. there's a perception that german _ picture. there's a perception that german brands - picture. there's a perception that german brands have, i picture. there's a perception i that german brands have, you know, suffered the consequences of the emissions scandal, covid and also slow ev sales and there's a perception that companies like byd have stolen a bit of a march on them in terms of their ability to develop affordable, high—quality electric and hybrid vehicles. now, the european union is worried about this. chinese electric vehicles are cheap, you see, nearly half the price of what a european—made ev costs. the eu says that these cars will flood the market and european car—makers, well, they won't be able to compete, which ultimately means that european

jobs will be lost. the eu says these vehicles are cheap because the chinese government is subsidising car—makers unfairly. so tariffs on imported chinese evs are meant to level the playing field. that is how brussels sees it anyway. beijing is clearly not happy and with good reason, because chinese companies need the european market quite a lot right now. the us has become a dead end because the biden administration has put on 100% tariffs. domestically, demand for evs in china seems to be slowing down a bit so europe has become especially important as a potential market. and it's notjust as a potential market. and it's not just china as a potential market. and it's notjust china that's unhappy y happ ' un hina thats ' tc tjus no by notjust china that's unhappy by the way. big german car—makers, who sell to and manufacture in china, they hate the idea of starting a fight with beijing, because, well, they fear the blowback. in any case, chinese companies will be in this for the long haul regardless. byd, for example, is building the first ever chinese car factories in chinese carfactories in europe, which will be in hungary. and that is exactly

the kind of thing the eu wants to see more of. let's get some of the day's other news now. here in the uk, prices in shops rose at the slowest pace in almost three years last month, as inflation continues to cool. annual shop price inflation slowed to 0.2% injune, down from 0.6% in may, according to the british retail consortium. falls in prices of non—food goods were apparently helped by promotions on tv sets ahead of the euros football tournament. the samsung electronics workers union in south korea have announced it will launch a general strike until demands for better pay and time off are met. the national samsung electronics union comprises 28,000 members, which is roughly a fifth of the tech giant's workforce. the strike is set to begin on the 8th ofjuly. the japanese finance minister, shun—ichi suzuki, has said authorities will remain vigilant to currency market moves, as the yen continued its downturn to new 38—year lows.

the yen sank to its weakest level since 1986, keeping markets on heightened alert for any signs of yen—buying operations from tokyo to prop up the currency. coming up in the programme, we take a look at the growing garden business at one of the world's biggest shows here in london. around the world and across the uk, this is bbc news.

is expected to make a special statement to parliament today to sri lanka now, where the president ranil wickremesinghe is expected to make a special statement to parliament today on the country's troubling debt battles. last week, sri lanka reached a deal with some of its major creditors, seen as a key step in the country's economic recovery after defaulting

on its debts in 2022. sri lanka is under an international monetary fund bailout programme, after declaring bankruptcy and defaulting on some $83 billion worth of loans. to talk us through what's at stake, i'm joined by dr ganeshan wignaraja, advisor to the sri lankan president on trade policy. welcome to bbc news. so what are we expecting the president to say today? i are we expecting the president to say today?— to say today? i think this deal is cuite to say today? i think this deal is quite big — to say today? i think this deal is quite big news _ to say today? i think this deal is quite big news for- to say today? i think this deal is quite big news for sri i is quite big news for sri lanka, because it's restructured about $10 billion official creditor debt. and it will help put sri lanka on the road to recovery and it was quite done with remarkable speed of 18 months of talks, which reflects a lot of very good coordination byjapan as well as france and sri lanka's better understanding of these

assurances that need to be given. and it involved china as well as japan, india given. and it involved china as well asjapan, india and given. and it involved china as well as japan, india and other official creditors, but china was perhaps a bit slow to come to the table, even though it was a major creditor for infrastructure in sri lanka. 50 infrastructure in sri lanka. so the infrastructure in sri lanka. 50 the president will stress this is good news. this is another step in the right direction. of course, meeting, iwould imagine, requirements from the international monetary fund and others. there is still a race on, though, isn't there, to restructure a further $13 billion of external dealt owed to bond—holders? is that not the case? to bond-holders? is that not the case?— to bond-holders? is that not the case? , �*, ., ., the case? yes. it's a two-part sto . the case? yes. it's a two-part story- the _ the case? yes. it's a two-part story. the official— the case? yes. it's a two-part story. the official creditor i story. the official creditor part is done and then the private creditors is to come. and that's also expected fairly seen and with that, sri lanka would have done quite a bit of its debt. and this, of course, has to be approved by the international monetary fund and be within the framework of the $3 billion imf programme. and

also its a feather in the cap for president wickremesinghe, as he goes on the campaign trail. he's running for president again, we think, in october 2024, and his campaign slowlyian is that he rescued the island from debt distress and bankruptcy and he's the only one that can be trusted on the economy. only one that can be trusted on the economy-— the economy. ok. but the question _ the economy. ok. but the question is _ the economy. ok. but the question is will _ the economy. ok. but the question is will sri - the economy. ok. but the| question is will sri lankans agree with him? as you say, there's elections later this yearin there's elections later this year in sri lanka and we all remember very well the images we saw beaming live here on bbc news in 2022, where the people of sri lanka made it very clear they were unhappy with the economic crisis. so do it's economic crisis. so do its people of sri lanka feel better off yet? or not? the people of sri lanka feel better off yet? or not?— off yet? or not? the fly in the ointment _ off yet? or not? the fly in the ointment is — off yet? or not? the fly in the ointment is really _ off yet? or not? the fly in the ointment is really a _ off yet? or not? the fly in the ointment is really a very i off yet? or not? the fly in the ointment is really a very high | ointment is really a very high poverty level in sri lanka due to the economic crisis and also covid. some half the population of sri lanka of 22 million is

economically deprived, according to a unvp study. and this means there are social tensions and also children who are malnourished and this creates some political uncertainty. on the other hand, you know, the president has taken sri lanka on the road to moving out of debt towards recovery and i think this deal is certainly a good move. and we'll have to see what happens, but i think sri lanka is in the right place right now! the problem is, suspect it, with these scenarios, when —— isn't it, with these scenarios, when you're in such an economic crisis that sri lanka was in, and is still in, you don't see and is still in, you don't see a quick relief for people on the streets really. in day—to—day life, it takes a very long time for people to see recovery and feel better off, and yet they're going to the polls this year. yes. one aspect of this is very high umdfimkbmwmw food aspect of this is very high food prices due to inflation of

some 70% in october 2022. this has since come down, meaning the rate of increase of prices is under 10% now. but the level is under 10% now. but the level is high. and that's one problem. so there is a problem of food security, which is one aspect people are worried about. a _ aspect people are worried about. fiic a second aspect of about. ok. a second aspect of this is the _ about. ok. a second aspect of this is the high poverty level that continues to be there and i think social protection is going to be very important. cash transfers across the population to those who need it is very important as well. fiic is very important as well. ok. thank you _ is very important as well. ok. thank you very _ is very important as well. ok. thank you very much - is very important as well. ok. thank you very much for your time. thank you. to india now, where the manufacturing sector saw a rebound last month as prime minister narendra modi reclaimed the topjob. june saw the fastest rise in manufacturing hirings in nearly 20 years. but is the job growth sustainable? here's our india business correspondent archana shukla. it's enormous demand of good

across sectors and more export orders that have driven manufacturing growth across factories in india in the last four months, and june has seen another uptick. now, if you have to manufacture more, you need more people on the shop floor. and that is reflected in the hiring trends. much of this increase in manufacturing jobs would be contractual and in engineering—driven sectors like automobiles, electronics and capital goods, and this would give some respite to prime minister modi's government as creating jobs is the biggest challenge he's facing in his third term as prime minister. he has long positioned india's factories to fuel growth but, despite india being the fastest—growing major economy in the world, this growth has largely come from government—sector spending in infrastructure development. and the growth has also paralleled a sharp rise in unemployment in the last two years especially post covid, more workers have moved out of factoryjobs and have gone back to agriculture. more manufacturing jobs to sustainably rise, economists

say hundreds of new factories need to come up and for that private sector investments that have lagged for years now need to be revived. a government policy to push for that would be imperative. to the great outdoors now. what does your outside space look like? whether it be a garden orjust a windowbox, gardening is a hobby some 20 odd million brits practise. but it's notjust our own green spaces we love. we also love to visit a country garden and in the uk we have plenty of those. and if you mix that with a royal palace you're onto a winner, which is the hope at the hampton court garden festival, which starts today. so what can we expect? joining me now is helena pettit from the royal horticultural society at the festival in hampton court. good morning to you. thank you for getting up so early on what's an extremely busy time

for you. so tell us what's on. so this year, at the hampton court palace garden festival, we've got over 100 growers in our nursery, we've got resilient pocket planting, which is new this year. we've got show gardens. we've got feature gardens. we've got allotments. we've got a load of trade there, a lot of horticultural trade. we have a lot of different areas. we've got the rose garden. we've got the rose cafe. we've also got the rose cafe. we've also got the indoor house plant cafe as well. so actually we've got an enormous amount for people to see and do at the show. and see and do at the show. and it's a huge — see and do at the show. and it's a huge job _ see and do at the show. and it's a huge job putting this it's a hugejob putting this on, a job that you do take on yourself. one thing you cannot organise is the weather. so what's it looking like? the weather is _ what's it looking like? the weather is looking - what's it looking like? iie: weather is looking perfect what's it looking like? ti;e: weather is looking perfect show weather is looking perfect show weather this week. perfect show weather this week. perfect show weather is 20 to 21 degrees, slightly overcast. so i think the weather is in our favour for this week.— for this week. brilliant. so let's hope _ for this week. brilliant. so let's hope that _ for this week. brilliant. so let's hope that doesn't i for this week. brilliant. so i let's hope that doesn't change. you know how it is. but how

many visitors are you expecting? and talk us through how important this is in the overall picture when it comes to what you do. 50 overall picture when it comes to what you do.— overall picture when it comes to what you do. so for the rhs, for our overall— to what you do. so for the rhs, for our overall picture, - to what you do. so for the rhs, for our overall picture, it's i for our overall picture, it's really about getting everyone out there and understanding gardening. there's 30 million people within the uk that are interested in gardening and we're there if you want to grow in your garden, make your garden look fabulous, large space, small space, garden look fabulous, large space, smallspace, if garden look fabulous, large space, small space, if you want to learn to grow your own. so it's really important for the are. hs and the charitable work we do through our education and communities and groups as well. but it's actually bringing in people together and actually giving them a are the fabulous opportunity on how to design your garden. bud opportunity on how to design your garden-— your garden. and are there competitions _ your garden. and are there competitions on _ your garden. and are there competitions on as - your garden. and are there competitions on as well? l your garden. and are there i competitions on as well? there are always _ competitions on as well? there are always competitions - competitions on as well? there are always competitions on. i competitions on as well? there | are always competitions on. we have from bronze to gold, so bronze, silver, silver—gilt and gold within ourfloral bronze, silver, silver—gilt and gold within our floral marquee and also our gardens, which are seen as high accolades in the horticultural worlds. we also have trade stands. we do judge our trade stands as well and we also have best show garden,

best floristry, best construction and we also have the best, which is new this year, environmental innovation award to support those that have been really sustainable in how they've developed their gardens. how they've developed their aardens. ~ .. how they've developed their aardens. ~ ., . gardens. would you say that reall is gardens. would you say that really is the _ gardens. would you say that really is the key _ gardens. would you say that really is the key theme i gardens. would you say that really is the key theme this | really is the key theme this year? and when it comes to trends, is it all about that sustainability, thinking differently about how you garden, because of the changing weather conditions? it garden, because of the changing weather conditions?— weather conditions? it is. i mean we've _ weather conditions? it is. i mean we've got _ weather conditions? it is. i mean we've got our- weather conditions? it is. i| mean we've got our feature gardens this year, which are peat—free. we also had the money—saving gardens so you can actually really look at how you can get the most out of your planting within your garden as well. but climate and planting, gardening for a changing climate, is really important and really you can get some really great tips and advice on how you work with your stall and how you work with the climate to ensure your garden is looking fabulous, but you're not having to water it with mains water and that you can really look after it yourself. and there's all sorts of campaigns, like don't mow in may for those who have grass,

hug a slug, all these kinds of things that you guys push at rhs. that will all be going on, i assume? rhs. that will all be going on, i assume?— i assume? we have all of that and also the _ i assume? we have all of that and also the bees _ i assume? we have all of that and also the bees because i i assume? we have all of that i and also the bees because bees are really important, so how you can plant for pollinators and really make sure your garden attracts as much wildlife as possible. indeed. mine certainly _ wildlife as possible. indeed. mine certainly does, - wildlife as possible. indeed. mine certainly does, that's i wildlife as possible. indeed. i mine certainly does, that's for sure. thank you for being on the programme and good luck with it all. i do hope the weather remains perfect, as is forecast. . ~ weather remains perfect, as is forecast. . ,, , ., weather remains perfect, as is forecast. . , forecast. thank you, sally. thank you- _ forecast. thank you, sally. thank you. thank - forecast. thank you, sally. thank you. thank you i forecast. thank you, sally. thank you. thank you too. | forecast. thank you, sally. i thank you. thank you too. and we'll have _ thank you. thank you too. and we'll have the _ thank you. thank you too. and we'll have the weather - thank you. thank you too. and we'll have the weather for i thank you. thank you too. and we'll have the weather for you | we'll have the weather for you very, very soon here on bbc. let's take a look at the markets. they're like the weather, changing all the time and we try to track what is going on. stay with us here on bbc news.

hello there. not much change to the weather as we move into tuesday. in fact, the upcoming week will remain pretty unsettled, i think, with low pressure always nearby. it will be breezy, even turning windier across northern areas by the end of the week. some rain at times, mainly in the north and the west, and it will remain on the cool side for earlyjuly. this ridge of high pressure, though, bringing quite a bit of dry weather, i think, on tuesday. we'll start off with quite a bit of sunshine around in northern, central and western areas. more cloud for eastern england, a few spots of rain — that rain will tend to ease down. and then as we head into the afternoon, skies will turn cloudy again as the temperatures rise a little bit, and we'll see some patchy rain pushing into western scotland, mainly through the afternoon. again, disappointing temperatures, 13 to maybe 19 or 20 degrees across the south. so i think it should stay mostly dry for wimbledon on tuesday — temperatures

around 20 degrees — but with low pressure moving in on wednesday, i think there's a greater chance of seeing some disruption to play with temperatures also at around 18 degrees. so as you move out of tuesday into tuesday night, we start to see this low—pressure system moving in, bringing thicker cloud, outbreaks of rain and stronger winds. i think the far southeast will stay dry until we reach the morning period, but because of the cloud, the rain, and southwesterly winds, i think it'll be a slightly milder night for all. so wednesday, we have this area of low pressure and its weather front crossing the country. it'll be a breezy day for most and a cloudy one. i think cloudy from the word go, outbreaks of rain splashing their way from west to east. i think it stays quite wet across northern and western scotland through the day. we could see something a little bit drier perhaps into the afternoon across eastern areas, maybe skies brightening up out west, certainly for northern ireland, but a breezy, even blustery day to come for all areas — these are mean wind speeds. temperatures disappointing for earlyjuly at 12 to 17 or 18 degrees across the south. so that's wednesday out.

as we move through thursday, this area of low pressure will bring even stronger northwesterly winds to the country, most of the rain across the north. and then for friday into the start of the weekend, could see another area of low pressure hurtling across the uk to bring another spell of wet and windy weather. so, yes, an unsettled outlook for the end of the week. most of the rain in the north and the west. there will be a little bit of sunshine at times in the south and the east.

good morning, welcome to breakfast with ben thompson and sally nugent. our headlines today. two days until polling stations open — rishi sunak warns of a labour supermajority, while sir keir starmer says a strong mandate is what's best for britain. setting a dangerous precedent — joe biden condemns a ruling giving donald trump partial immunity from criminal prosecution. hurricane beryl churns over the caribbean, gaining strength on a path forjamaica after making landfall in grenada. good morning from the queue outside wimbledon, where the tents are being packed away ahead of a really big one for the break —— brakes. fans on

tenterhooks waiting to hear if andy murray has decided to