Just as the Federal Reserve feels confident enough to pause interest rates, even if temporarily, its counterpart across the pond decides shock therapy is in order.<\/p>\n
The Bank of England delivered a half-point hike on Thursday, double the quarter-point that was expected, to bring its benchmark to the highest since 2008. The decision was the biggest monetary-policy surprise in years.<\/p>\n
The reason\u2014U.K. inflation is still north of 8% and doesn\u2019t look like it will come down as swiftly as hoped. The Fed is in a much different situation, with U.S. inflation having dropped to about 4%.<\/p>\n
But a closer inspection suggests the two countries aren\u2019t that different. There\u2019s plenty of blame to go around for the U.K.\u2019s dire predicament\u2014BOE Governor Andrew Bailey is getting roundly criticized\u2014but a lot of the country\u2019s excess inflation compared with peers comes down to the timing of energy subsidies that dragged out the hit from spiking natural-gas prices. A few months from now, U.S. and U.K. inflation rates should look a lot more similar.<\/p>\n
Both the U.S. and U.K. have seen the drivers shift to wages and the services sector\u2014areas where it\u2019s trickier to break the spiral of ever-increasing prices. Once the dampening effects of higher energy prices last year drop out of inflation rates, the U.S. headline rate could suddenly stop falling\u2014and that could happen well above the Fed\u2019s target.<\/p>\n
If that\u2019s what happens, Fed Chairman Jerome Powell could find himself in Bailey\u2019s shoes\u2014and may also reach for the big guns of jumbo rate increases to get out of the jam.<\/p>\n
Global stocks are headed for their worst week since March. That suggests investors are getting nervous\u2014and maybe they should be.<\/p>\n
\u2014Brian Swint<\/em><\/p>\n *** Join Mansion Global\u2019s Leslie Hendrickson today at noon when she leads a discussion with Brad Hintze, executive vice president for global marketing at Crestron; India Stoughton, freelance reporter; and JC Murphy, president of Savanton about demand for smart-home technology, concerns about privacy and the different ways artificial intelligence is making everyday tasks more convenient. Sign up here.<\/em><\/p>\n Try your hand at the Barron\u2019s crossword puzzle and sudoku games, now running daily along with a weekly digital jigsaw based on the week\u2019s cover story. To see all puzzles, click here. <\/em><\/p>\n TikTok\u2019s chief operating officer and top U.S. executive V. Pappas is leaving the company after nearly five years, to focus on unspecified entrepreneurial passions. The departure marks a key U.S. leadership transition at the China-based video-sharing company amid high-profile challenges in its largest market.<\/p>\n What\u2019s Next:<\/strong> Pappas will remain a strategic advisor to the company, he told employees along with TikTok CEO Shou Chew. \u2014Janet H. Cho and Eric J. Savitz<\/em><\/em><\/p>\n Five adventurers died in a catastrophic implosion of their submersible ocean vessel as they were voyaging to the deep Atlantic resting place of the shipwrecked ocean liner Titanic, a tragic ending to an urgent rescue effort that has been playing out for days.<\/p>\n What\u2019s Next:<\/strong> Investigations of the ocean floor using remote-operated vehicles would continue, Coast Guard Rear Adm. John Mauger said, but he didn\u2019t give a time frame for when they would conclude. <\/p>\n \u2014Liz Moyer<\/em><\/em><\/em><\/em><\/p>\n Tensions between What\u2019s Next:<\/strong> If the cage fight actually does happen, it could be a dose of publicity for UFC, which is merging with \u2014Janet H. Cho and Al Root<\/em><\/em><\/em><\/p>\n Job seekers hoping for a remote or hybrid work schedule should try to get hired soon, because the work-from-home winds are shifting. The share of U.S. jobs offering the option to work remotely at least one day has declined to 12.19% in April, from 13.08% in October, researchers discovered.<\/p>\n Apple,<\/span><\/p>\n Goldman Sachs,<\/span> What\u2019s Next:<\/strong> U.S. survey data suggests that going forward, workers will spend one quarter of their work days working remotely, five times the prepandemic rate, the report said. Professional, scientific, and computer-related occupations are more likely than others to offer hybrid or fully remote work, compared with 2019.<\/p>\n \u2014Janet H. Cho<\/em><\/em><\/p>\n Do you remember this week\u2019s news? Take our quiz below to test your knowledge. Tell us how you did in an email to thebarronsdaily@barrons.com.<\/em><\/p>\n 1. The People\u2019s Bank of China cut its benchmark lending rates for the first time in 10 months in its latest attempt to boost the economy. China\u2019s one-year loan prime rate is now:<\/p>\n a. 3.55%<\/p>\n b. 3.65%<\/p>\n c. 3.75%<\/p>\n d. 3.85%<\/p>\n 2. a. 3. Tesla has an agreement from this auto maker to adopt its charging technology, bringing it another step closer to becoming the industry standard after also signing on a. d. 4. The Agriculture Department approved a new product by food start-ups Eat Just and Upside Foods, which will soon introduce it in restaurants in Washington, D.C., and San Francisco. What is it?<\/p>\n a. Genetically modified lamb<\/p>\n b. Cultivated chicken<\/p>\n c. Plant-based bison burgers<\/p>\n d. None of the above<\/p>\n 5. The number of homes for sale fell in May to their lowest point since real estate firm a. 1.4 million<\/p>\n b. 2.0 million<\/p>\n c. 2.4 million<\/p>\n d. 3.0 million<\/p>\n Answers: 1(a); 2(d); 3(c); 4(b); 5(a)<\/p>\n<\/h4>\n
***<\/h4>\n
TikTok\u2019s COO Departure Sets Up Leadership Shuffle<\/h2>\n
\n
\n Walt Disney
\n veteran Zenia Mucha will become TikTok\u2019s new chief brand and communications officer, and Adam Presser, Chew\u2019s chief of staff, will become the platform\u2019s head of operations.<\/p>\n***<\/h4>\n
Five Titanic Explorers Dead in Submersible\u2019s Catastrophic Implosion<\/h2>\n
\n
\n Virgin Galactic Holdings
\n are doing in selling short trips to space. <\/p>\n<\/li>\n***<\/h4>\n
Elon Musk and Mark Zuckerberg Call for Cage Fight<\/h2>\n
\n Tesla
\n CEO Elon Musk and
\n Meta Platforms
\n CEO Mark Zuckerberg have been growing since Zuckerberg pledged to create a rival to Musk\u2019s social media platform Twitter. Now that rivalry has reached its climax: The two men have challenged each other to a cage fight. <\/p>\n\n
\n Southwest Airlines
\n and Steven Aviations resolved a trademark dispute with an arm-wrestling competition that was called \u201cMalice in Dallas.\u201d The Southwest guy lost.<\/p>\n<\/li>\n<\/ul>\n
\n WWE
\n in a deal headed for completion in the second half of this year. The merged company is to be called TKO Group Holdings.<\/p>\n***<\/h4>\n
Job Vacancies Offering Remote Work Are Shrinking<\/h2>\n
\n
\n Amazon,<\/span><\/p>\n
\n Twitter, and Tesla, telling everyone to come back. In San Francisco, the share of jobs postings offering remote work dropped to 27% in April, from 31.9% in October.<\/p>\n<\/li>\n
\n Boeing
\n and
\n Lockheed Martin
\n allow hybrid or fully-remote work in more than 50% of their management job postings, while
\n Northrop Grumman
\n allows less than 25%, and SpaceX allows almost none.<\/p>\n<\/li>\n<\/ul>\n***<\/h4>\n
\n Airbus
\n announced the biggest plane order in history, for 500 narrow-body jets, at this week\u2019s Paris Air Show. Which of these carriers placed the order?<\/p>\n
\n Air China
\n
b.
\n Cathay Pacific
\n
c.
\n Qantas
\n
d. IndiGo<\/p>\n
\n Ford Motor
\n and
\n General Motors
\n :<\/p>\n
\n Stellantis
\n
b.
\n Toyota
\n
c. Rivian<\/p>\n
\n BMW\n <\/p>\n
\n Redfin
\n started tracking the data in 2012. What was the inventory of homes for sale?<\/p>\n