Category: 3. Business

Prices in the UK rose by 3.8% in the year to July, driven mainly by a jump in the price of air fares coinciding with the school summer holidays.

That means inflation is at its highest level for 18 months and still far above the Bank of England’s target of 2%.

A rise in the cost of eating out, as well as food and non-alcoholic beverages more generally, also helped to push up prices.

The Bank’s latest forecast expects inflation to peak at 4% in September.

ONS Chief Economist Grant Fitzner said the “hefty” increase in air fares was the “largest July rise since collection of air fares changed from quarterly to monthly in 2001”. He said the jump was “likely due to the timing of this year’s school holidays”.

“The price of petrol and diesel also increased this month, compared with a drop this time last year. Food price inflation continues to climb, with items such as coffee, fresh orange juice, meat and chocolate seeing the biggest rises,” he added.

Alibaba’s Qwen research group has released Qwen-Image-Edit, an open-source model designed to carry out image edits through text prompts. The system expands the Qwen-Image foundation model, a 20-billion parameter network introduced earlier in the month, and adapts its strengths in text rendering to cover a wider range of editing tasks.

Dual Encoding Design

At the core of the system is a dual pipeline. One part, Qwen2.5-VL, interprets the meaning of a scene, while another, a variational autoencoder, reconstructs its visual detail. This arrangement allows the model to handle two levels of control. Semantic edits can restructure or restyle an image, while appearance edits focus on local, precise changes.

The Qwen team describes semantic edits as higher-level modifications. A portrait can be reimagined in a Studio Ghibli style. A street scene can be reskinned to resemble a Lego model. Objects can be rotated to show angles not visible in the original, including full 180-degree views. These are broad transformations that shift the scene but keep its identity intact.

Appearance edits, on the other hand, address smaller details. A strand of hair can be erased, a single letter recolored, or a signboard added with a reflection generated in the water beside it. These edits leave most of the original unchanged, touching only the requested regions.

Text Editing Features

Another significant part of the model is its ability to work with text in images. It can add, remove, or correct writing in both English and Chinese. The edits preserve font, size, and layout. This feature has been used on posters, signage, and calligraphy.

In one demonstration, errors in a generated calligraphy piece were corrected step by step. The model adjusted characters through bounding-box instructions until the final version matched the intended classical form. This chained editing method gives users control over high-stakes cases where accuracy cannot be compromised.

Range of Uses

The demonstrations published so far cover both creative and practical applications. In one case, Qwen-Image-Edit was used to refine a wedding photograph, adding graffiti to an archway for one version and removing it for another. In another, the system generated a series of MBTI-themed emoji packs based on Qwen’s capybara mascot. A different example showed how the model could reskin a Manhattan cityscape to resemble a miniature Lego set.

Potential uses extend from advertising and design to casual personal edits. Designers could adjust logos or signage, while individuals could change backgrounds, modify clothing, or clean up portraits. The team has also pointed to cultural preservation, where the model has been applied to correcting classical Chinese calligraphy for archiving purposes.

Benchmarks and Performance

The developers report that Qwen-Image-Edit delivers state-of-the-art performance across public benchmarks. Specific scores for editing tasks were not released, but Qwen-Image itself has ranked among the strongest systems for image generation and text rendering in independent evaluations such as AI Arena. Human raters in those tests favored its outputs in many cases against competing models.

Access and Licensing

The model is available under an Apache 2.0 license. Developers can download and run it locally, deploy it on cloud infrastructure, or integrate it into applications. Access is also possible through Qwen Chat, Hugging Face, ModelScope, and GitHub.

For enterprises, Alibaba Cloud provides an API through its Model Studio platform. The service is priced at $0.045 per image after an initial quota of 100 free images valid for 180 days. The current deployment is in the Singapore region, with five requests per second allowed and two concurrent tasks per account. Supported image resolutions range from 512 to 4,096 pixels, with file sizes up to 10 MB. Outputs are stored temporarily on Alibaba Cloud Object Storage for download.

Industry Context

Qwen-Image-Edit reflects a broader shift in generative AI tools. Early systems were focused on single-purpose generation. Newer releases, including this one, are moving toward a combination of creation and correction, allowing more practical use in production settings.

By offering fine-grained editing, bilingual text support, and open licensing, the system lowers barriers for professional users while also remaining approachable for casual experimentation. Whether for advertising design, cultural preservation, or individual photo edits, the tool adds another option in a growing field of AI-driven image software.

Notes: This post was created using GenAI tools.

Read next: Poll: Most Americans Fear AI’s Impact on Politics, Jobs

Inflation rose again last month to a higher than expected 3.8% amid higher food and fuel prices, adding to fears that the Bank of England will delay further interest rate cuts.

Figures showed the annual rate as measured by the consumer price index (CPI) climbed from June’s 3.6% reading, sitting above the central bank’s 2% target for the 10th consecutive month.

That overshot financial market forecasts of a 3.7% figure for July and all but rules out another reduction in the cost of borrowing this year, with financial markets not fully pricing in the chance of a fresh quarter-point cut until April 2026.

The data also suggests rail fares are on track to rise by 5.8% next year. Increases in regulated train ticket prices are usually calculated by adding one percentage point to July’s inflation reading as measured by the retail prices index, which was 4.8%.

The Office for National Statistics said a jump in airfares was behind much of the increase in average prices. Petrol prices nudged prices higher after a comparison with last year, when prices at the pumps were falling.

Food and non-alcoholic beverages were up 4.9% year on year in July, an increase from 4.5% in the 12 months to June.

Droughts in Spain, Italy and Portugal, where the UK sources much of its fresh fruit and vegetables have pushed up prices this summer at a time when prices would usually fall.

The Bank of England trimmed interest rates to 4% earlier this month in line with projections of falling inflation over the next two years. However, several MPC members voted to hold interest rates until the trend became clearer and July’s jump in CPI is likely to push the timing of future cuts deeper into 2026.

Companies have blamed employment tax rises and the uncertainty caused Donald Trump’s tariff war for an increase in domestic prices, while droughts in Spain have pushed up the cost of food.

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Cornwall Insight, the energy consultancy, said on Tuesday that it expected the energy price cap covering domestic electricity and gas would go up by £17 or 1% in October, adding to domestic fuel costs.

Editor(s): Giulia Carbone, Nature for Climate Director at WBCSD; Madeline Ojakovoh, Manager for Climate Adaptation at WBCSD; Johan Lammerant, Global Technical Director Nature and Biodiversity at Arcadis; Daisy Hessenberger, Global Subject Matter Expert – Nature & Biodiversity at Arcadis 

Managing the rising risks of natural hazards in a changing climate 

The recent news landscape has made the growing impacts of natural disasters more apparent than ever. In the summer months of 2025 alone, historic floods swept through Texas, claiming over 130 lives; Southern Europe endured blistering heatwaves with temperatures surpassing 42°C; and wildfires tore across Turkey, displacing more than 50,000 people. These crises underscore a pivotal shift: businesses can no longer view the risks of natural disasters as distant or external – they can occur without warning and demand urgent, proactive approaches. Catastrophic events like these also have huge implications for business. In 2024, the world experienced 58 natural disasters (such as floods, wildfires, droughts, heatwaves, and storms), that caused over USD $1 billion in damages each. At the same time, Swiss Re estimates that insurance losses from natural disasters are rising at 5–7% annually, reaching USD $145 billion by the end of this year.  

In particular, commercial buildings and infrastructure, ranging from office buildings to production facilities, warehouses, roads and power grids, face increasing exposure to the growing risk of natural hazards. For businesses, this requires shifting from reactive recovery efforts towards proactive prevention strategies. It also demands looking beyond the factory gate to recognize how land-use changes in the broader landscape can affect site-level vulnerability to natural hazards (and therefore threaten business continuity). 

The business case for investing in Nature-based Solutions for adaptation 

As the cost of inaction continues to grow, the economic case for investing in Nature-based Solutions (NbS) as a form of climate adaptation becomes more compelling. The World Economic Forum’s Alliance of CEO Climate Leaders highlights that every dollar invested in climate adaptation and resilience can generate between USD $2 to USD $19 in avoided losses. The United Nations Environment Programme estimates that achieving sustainable development goals will require rapidly scaling investments in nature-based solutions to USD $384 billion per year by the end of this year – presenting a significant opportunity for businesses to invest. Meanwhile, research from the World Resources Institute highlights that adaptation investments yield financial returns even in the absence of disasters, thanks to broader economic, environmental, and social benefits. 

From nature risk to nature opportunity 

Natural ecosystems, such as wetlands, forests, and mangroves, have been shown to play a critical role in shielding communities and infrastructure from climate-related hazards. Wetlands absorb floodwaters, coastal mangroves protect infrastructure from storm surges, and urban greenery combats the heat island effect in cities. However, while the societal benefits of NbS for nature, climate, and people are well-documented and understood, the business benefits are often underappreciated or entirely omitted from project valuations. These business benefits can include, for example, enhanced supply chain resilience against climate hazards (and as such reduced risk on property damage and disruption of business continuity), increased asset value, reputational gains related to increased biodiversity value and benefits for local communities, and potentially lower insurance premiums. 

At WBCSD, we are working to fill this gap by showcasing real-world examples of how companies are applying NbS to safeguard commercial assets from natural hazards, highlighting the tangible benefits to businesses associated with this solution. This work is based on the Nature-based Blueprint and Map that we published in 2024, supporting members in applying NbS to address core business challenges – thereby generating the business case for NbS. It is also strongly connected to WBCSD’s Business Leaders Guide to Climate Adaptation & Resilience, which helps business leaders build or adjust their approach to managing risk, access practical frameworks for building resilience, and take immediate next steps for their organization’s adaptation journey. Finally, as NbS are very effective in reducing physical risk in companies’ value chains, this work is closely related to the WBCSD’s upcoming CEO Handbook on physical risk and resilience in value chains, which offers CEOs and Executives step-by-step guidance on identifying, assessing and managing physical risks in value chains.  

How to implement Nature-based Solutions effectively 

Based on the guidance and experience from leading organizations such as the International Union for Conservation of Nature (IUCN), the World Resources Institute (WRI), and Arcadis, several key success factors have been identified for the effective implementation of Nature-based Solutions from a corporate point of view: 

1. Nature-based Solutions must explicitly address a business challenge. In order to scale up investment in and deployment of NbS, companies must see them as part of their business solutions toolkit. For example, NbS used for climate adaptation provide measurable resilience benefits for the implementing business.
2. Nature-based Solutions offer opportunities for achieving joint climate, biodiversity, and societal benefits. Since budgets for sustainability initiatives are limited, companies need to prioritize projects that generate multiple benefits, making NbS an attractive option as they inherently deliver biodiversity gains while often providing societal benefits through ecosystem services and contributing to climate mitigation through carbon sequestration. 
3. Nature-based Solutions are more effective and cost-efficient if implemented at the landscape-level. To unlock their full potential, NbS should be implemented using a landscape-level approach. For NbS as adaptation solutions, implementation at the landscape-level can result in collective resilience that protects a broad range of actors in the same landscape from natural hazards, such as wildfires and floods. 
4. The benefits of Nature-based Solutions should be accurately valued. Accurate valuation of NbS must capture the full spectrum of benefits, including avoided losses, operational savings, and enhanced asset value. This strengthens the case for private investment and ensures that the NbS stays operational over longer periods. 
5. Nature-based Solutions must leverage technical and local expertise. The effective implementation of NbS depends on access to technical know-how, careful planning, and an in-depth understanding of the local environmental conditions. Businesses working at a landscape-level in a multistakeholder context should leverage the technical knowledge and potential fundings support of partners, keeping in mind that long lead times and landscape-specific challenges can be mitigated through strong project management and frequent stakeholder coordination.

These factors provide a robust foundation for businesses considering NbS as part of their adaptation strategy. For real-world examples, explore Arcadis’ case studies in Rotterdam and New York to see how they have been applied in practice. 

Conclusion 

As natural hazards grow in frequency and severity, businesses must move from reactive recovery to proactive adaptation. At scale, Nature-based Solutions can significantly reduce risks to commercial buildings and infrastructure while delivering measurable business benefits – even when disasters do not occur. They also unlock opportunities to jointly advance climate, biodiversity, and societal goals, making them a strategic asset in any sustainability portfolio. By embedding NbS into core strategies now, companies can protect their physical infrastructure, enhance supply chain resilience, and create value that extends well beyond risk reduction – all before the next natural hazard strikes.  

If your organization would like to learn more about WBCSD’s work on Nature-based Solutions, please do not hesitate to reach out to nature@wbcsd.org.  

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The New Zealand dollar slumped to a four-month low after the country’s central bank lowered interest rates and signalled further cuts to combat a weak domestic economy and global uncertainty over Donald Trump’s tariffs.

The Reserve Bank of New Zealand cut interest rates by a quarter of a percentage point to 3 per cent, as expected, but revealed that two of the six members of its Monetary Policy Committee voted for a bigger cut of half a percentage point. 

Economists at RBC Capital Markets said the outlook represented a “big shift in tone” from the July meeting, when the central bank held interest rates amid concerns over inflation.

ANZ, the Australian bank, said it now expected two further interest rate cuts after the dovish pivot.

The New Zealand dollar fell 1.1 per cent against the US dollar to a four-month low.

New Zealand was one of the first countries to raise interest rates after the pandemic to deal with rampant inflation, but has steadily cut in recent quarters from a peak of 5.5 per cent. The 3 per cent rate is the lowest in three years.

The bank said New Zealand’s economic recovery had stalled in the second quarter of the year, with household and business spending constrained by global economic uncertainty and exacerbated by higher unemployment and declining house prices.

The unemployment rate hit 5.2 per cent in June, the highest for five years.

The central bank also said tariffs and uncertainty around economic policy had damped the global economic outlook. New Zealand was hit with a 15 per cent tariff as part of the Trump administration’s revised regime last month, higher than the initial 10 per cent levied.

“Some firms and industries may experience more challenging export conditions as a result,” the RBNZ said. 

Sharon Zoller, chief economist for New Zealand at ANZ, said the pointers to further cuts were a sign that the central bank had responded to the more downbeat economic data.

“We suspect we are around peak pessimism currently, but the economy nonetheless looks like it needs more support. And today it got it, with a recalibration of market expectations for where the [interest rate] will be over coming months feeding straight into lower wholesale rates and a weaker currency. That will help underpin the economic recovery,” she said.

While New Zealand is often a leading indicator of global macroeconomic trends, the signals from the central bank were more related to domestic rather than external factors, ANZ said.

“The fall in the New Zealand dollar today is not an imminent signal of US dollar resurgence,” it said.

UK inflation expected to rise slightlypublished at 06:11 British Summer Time

06:11 BST

Rachel Clun
Business reporter

Good morning from the London newsroom.

Today we’ll get the latest data on UK inflation – it’s expected to rise slightly, from 3.6% in the year to June, to 3.7% in the year to July.

Economists expect high grocery prices and travel costs to have added to the upcoming inflation figures.

The Office for National Statistics will publish the latest data at 07:00BST, and we’ll bring you updates as well as analysis from our correspondents as soon as we have it.

United States President Donald Trump has threatened to impose tariffs of up to 300 percent on semiconductor imports, with exemptions for foreign companies that commit to manufacturing in the US.

Trump has cast the proposed tariff as a way to drive investment to the US, but experts say it could also disrupt global supply chains and even penalise companies already making chips in the US.

What are the details of Trump’s plan?

Few details have been released since Trump announced plans for a 100 percent tariff at a White House event on August 7.

The US president said exemptions would be given to companies that build research or manufacturing facilities in the US, but tariffs could be applied retroactively if they failed to follow through on their planned investments.

“If, for some reason, you say you’re building, and you don’t build, then we go back, and we add it up, it accumulates, and we charge you at a later date, you have to pay, and that’s a guarantee,” Trump told reporters.

On Friday, Trump told reporters on board Air Force One that more details would be announced soon and that the tariff could be much higher than previously suggested.

“I’ll be setting tariffs next week and the week after, on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after,” Trump said en route to Alaska to meet with Russian President Vladimir Putin.

“I’m going to have a rate that is going to be 200 percent, 300 percent,” he added.

Why does Trump want to impose tariffs on chip imports?

Trump wants to impose a tariff on chips for several reasons, but the main one is to re-shore investment and manufacturing to the US, said G Dan Hutcheson, the vice chair of Canada’s TechInsights.

“The primary goal is to reverse the cost disadvantage of manufacturing in the US and turn it into an advantage. It’s mainly focused on companies that are not investing in the US,” Hutcheson told Al Jazeera.

“Exclusions are negotiable for entities that align with his goal of bringing manufacturing back to the US.”

More broadly, the tariff is also intended to address the US dependence on imported semiconductors and buttress Washington’s position in its ongoing rivalry with China, another chip-making powerhouse.

Both issues are bipartisan concerns in the US.

The Trump administration earlier this year launched a Section 301 investigation into alleged unfair trade practices in China’s semiconductor industry, and a Section 232 investigation into the national security implications of US reliance on chip imports and finished products that use foreign chips.

Who will be impacted by the tariff?

Foreign tech giants that have already invested in the US, including the Taiwan Semiconductor Manufacturing Company (TSMC) and South Korea’s Samsung, would likely not be affected by the tariff.

It is less clear how the measure could affect other companies, including chip makers in China, where companies face barriers to US investment from both US and Chinese regulators.

Yongwook Ryu, an assistant professor at the Lee Kuan Yew School of Public Policy in Singapore, said the tariff could be used as leverage by the US as it negotiates the rate of its so-called “reciprocal tariffs” on China.

The US has imposed blanket tariffs of 10-40 percent on most trade partners since August 7, but negotiators are still hammering out a comprehensive trade deal with Beijing.

“My view is that while the reciprocal tariffs are generally aimed more at addressing the US trade deficit problem and re-shoring manufacturing back to the US, product-specific or sectoral tariffs [like semiconductors] are aimed at serving the strategic goal of strengthening US technological hegemony and containing China,” Ryu told Al Jazeera.

What is the value of US chip imports each year?

The US imported about $40bn in chips in 2024, according to a report by the American Enterprise Institute, citing United Nations trade data.

Imports mainly came from Taiwan, Malaysia, Israel, South Korea, Ireland, Vietnam, Costa Rica, Mexico and China, but experts say this data does not capture the full picture of chip flows in and out of the US.

Chips can cross borders multiple times as they are manufactured, packaged, or added to finished goods.

Chris Miller, the author of Chip War: The Fight for the World’s Most Critical Technology, estimates that another $50bn worth of chips entered the US in 2024 via products like smartphones, auto parts and home appliances from countries like China and Vietnam.

Miller also estimates that a “substantial portion” of US chip imports are manufactured in the US before being sent overseas for packaging – a labour-intensive process – and then re-imported.

“Many of the chips imported from key trading partners like Mexico, Malaysia and Costa Rica are likely actually manufactured by US firms like Texas Instruments and Intel, which have manufacturing in the US but often have their test and assembly facilities abroad,” Miller told Al Jazeera.

Why is the tariff a concern for the global chip industry?

Trump’s tariff plans have injected further uncertainty into an industry already grappling with his administration’s sweeping efforts to reorder global trade.

“It’s unclear whether the US government has the capacity to effectively enforce this and… there’s not really any guidance in terms of what these tariffs are actually going to look like,” Nick Marro, the lead analyst for global trade at the Economist Intelligence Unit, told Al Jazeera.

The White House has yet to provide details on whether the tariff will apply to chips originally made in the US and chips contained in finished products.

If the latter were included in the tariff plans, the fallout would extend to industries like electronics, home appliances, automobiles and auto parts. 

Miller said that it would be consumers in the US and elsewhere who would be among those most affected by the tariff. 

“Initially, it appears that most costs would be paid by companies via lower profit margins, though in the long run, consumers will pay the majority of the cost,” he said.

BBC

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