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FOX Business White House correspondent Edward Lawrence reports the details of President Donald Trump's pharmaceutical deal with the U.K. on 'Varney & Co.'

European equities eked out a modest gain on Thursday, with the pan-European Stoxx 600 reversing early losses to finish 0.12% higher as investors assessed a shifting global economic landscape, incoming corporate news, and rising expectations of US monetary easing. Germany's DAX led the region's major indices, advancing 0.22% to end the day at 23,777.

The plan presented by the chancellor of the Exchequer, Rachel Reeves, called for spending increases and higher taxes on the wealthy and the middle class.

Finance minister Rachel Reeves said the leak by the government spending watchdog was "deeply disappointing" and a "serious error."

UK October CPI inflation slowed to 3.6% YoY, signaling a peak and supporting expectations for continued disinflation into 2026. Housing & household services, especially energy, drove the deceleration, while food prices rose more than expected, warranting close monitoring.

The mood of British consumers dampened a little this month, with expectations of a slowing economy and the potential for tax increases later this year threatening an even greater downturn.

The Bank of England held its Bank Rate at 4.00% in September, reflecting a more unified and cautious stance amid persistent inflation risks. MPC members overwhelmingly supported maintaining rates and continuing quantitative tightening, reducing gilt holdings by £70 billion over the next year.

UK inflation remained stable in August, with headline and core CPI readings aligning with expectations and showing only modest shifts in goods and services. Energy and food prices continue to exert upward pressure, but underlying measures, especially in services, suggest some easing in inflationary trends.

UK July CPI surprised to the upside, driven by volatile components like energy and airfares, but underlying inflation pressures remain nuanced. Core and services inflation are still firm, but much of the persistence is due to one-off or volatile factors rather than broad-based demand.

The Bank of England paused rate cuts at 4.25%, reflecting caution amid weakening UK growth and labor market data. Recent inflation data aligns with BoE forecasts, but risks remain two-sided.