Are US tariffs driving stock market highs?

美国的关税是否推动股市达到新高?

World Business Report

2025-08-13

25 分钟
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单集简介 ...

Stocks continue to rally following better-than- expected US inflation data, but what is the global economic picture likely to be longer term? We hear from the US Small Business Association - and the EU’s International Trade Committee. Rare earths have been a flashpoint in US–China trade talks, with Beijing restricting global supply earlier this year. Could a project in Australia quell further disruption? And while some countries have eased back on investment in Africa, the UAE has become the continent’s largest state investor. Our correspondent in Dubai explains more.
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单集文稿 ...

  • Hello and welcome to World Business Report from the BBC World Service.

  • My name's Ed Butler.

  • On today's edition,

  • shares have hit record highs again today as companies seemingly predict a soft landing as a result of higher global tariffs.

  • Have we been too down on the global economy's prospects?

  • Also today, the Australian miners hoping to cash in on US-China tensions.

  • And why Gulf states and their businesses are betting big I'm not looking at trying to take their scarce resources or their mineral resources.

  • I'm allowing them to develop and export through my ports and airports and connections.

  • More on the investment rush into Africa from the Gulf states later in the show.

  • First, though, global stocks have continued to rally today,

  • reaching record highs following better than expected US inflation numbers this week.

  • The 2.7% inflation rate was unchanged back yesterday,

  • suggesting that the expected price rises from President Trump's tariff raising agenda have not yet been passed on to customers,

  • consumers, I should say.

  • It's also prompted investors to forecast a rate cut by the US Federal Reserve,

  • America's central bank, next month.

  • The big question we're really asking is what is happening long term in the markets and to the wider global economy.

  • So let's start with the question of the US itself.

  • Conventional economic wisdom is that the sheer scale of disruption to free trade should be bringing higher prices to every economy.

  • and that in turn would push the markets to react more negatively.