The Bank of Japan headquarters in Tokyo on May 30, 2024.<\/p>\n
Kazuhiro Nogi | Afp | Getty Images<\/p>\n
Hello, this is Katie Foley writing to you from London. I spend my mornings leading the London TV teams as we prepare to take Europe Early Edition and Squawk Box Europe to air. <\/p>\n
Over the last two months I can count on the fingers of one hand the days we haven’t topped the shows with Iran – today is one of them.<\/p>\n
What you need to know today<\/p>\n The Bank of Japan kicked off the week’s central bank action with a hawkish hold<\/a>, with three of the nine-member board dissenting, calling for a rate hike. The move pulled the Nikkei<\/a> back from a record high. The Fed, Bank of England and European Central Bank are all expected to stand pat this week, but markets are ramping up bets on higher rates ahead.<\/p>\n Geopolitics also taking a back seat to earnings. The latest to hit the tape this morning is Novartis<\/a>, with the Swiss pharma giant missing quarterly profit forecasts, but still backing its full year outlook. Tune in to Squawk Box Europe at 07:30 BST for our interview with CEO Vas Narasimhan, live from Basel.<\/p>\n Global stocks are holding near record high levels<\/a> while in Asia, the Kospi’s blistering run continues<\/a> with South Korea overtaking the UK in total market cap, pushing U.K. stocks down into ninth place.<\/p>\n The Iran war hits the two-mark month today, with White House press secretary Karoline Leavitt confirming President Donald Trump and his national security team on Monday discussed Iran’s proposal to reopen the Strait of Hormuz<\/a> if the U.S. lifts its blockade and the war ends. German Chancellor Friedrich Merz didn’t mince words, telling students in Marsberg that the U.S. is being “humiliated” by Tehran’s leadership.<\/a><\/p>\n In slightly more diplomatic news, the U.K.’s King Charles and Queen Camilla arrive in the U.S. today, hoping to prop up the beleaguered Special Relationship<\/a> with U.S. President always partial to bit of pomp and ceremony. The King addresses joint meeting of U.S. Congress later today, before a banquet at the White House tonight.<\/p>\n But back in Britain, Prime Minister Keir Starmer is still in hot water, facing a vote today over a possible inquiry on if he misled the House of Commons<\/a> over the appointment of former U.S. ambassador Peter Mandelson.<\/p>\n \u2014 Katie Foley<\/p>\n And finally…<\/p>\n BYD draws EU scrutiny over labor abuse allegations at Hungary factory<\/strong><\/a><\/p>\n Electric car giant BYD has become the first Chinese business to be raised in the European Parliament over allegations of labor abuses in Hungary, CNBC has learned, following a watchdog’s investigation into working conditions at the site.<\/p>\n Contractors hired to build BYD’s factory in Hungary allegedly kept thousands of employees working seven days a week, with shifts lasting more than 12 hours a day, according to a\u00a0report<\/a>\u00a0published on April 14 by New York-based watchdog China Labor Watch (CLW). The group said it interviewed 50 workers and visited the factory site three times since October 2025.<\/p>\n \u2014 Evelyn Cheng, Matthew Chin<\/p>\n