The Global Economic News

  Without a new budget, the country is facing a deficit of up to 6.6% of the GDP in 2025, more than double the European Union's standard.   No matter what the French government had warned about, neither domestic nor international turmoil followed immediately after Prime Minister Barnier's cabinet's downfall and his resignation. But without a valid budget, the public deficit may rise further, as well as the uncertainty that is pushing up the refinancing costs of the country's already enormous debt.   President Macron will now need to appoint a new Prime Minister, who will be tasked with forming a new government. But the chances of adopting a new budget before the year's end are very slim.   If no budget is voted on by December 20, one of the possibilities is to extend the 2024 budget to 2025. "A rollover of the 2024 budget to the entire 2025 fiscal year would likely deliver a government budget deficit of c.6.3-6.6% of GDP, up from an estimated 6.1% of GD...

Although manufacturing growth in Spain rose at a slower rate in November because of flooding, it was still above the key 50 level. Turkish manufacturing demand inched up but German and French figures failed to offer seasonal cheer. Spain's manufacturing figures showed a slight fall in November, according to the HCOB manufacturing Purchasing Managers' Index (PMI), coming in at 53.1 and down from 54.5 in October. That was less than analyst forecasts of 53.5. Output and news orders were lower, partly due to the heavy flooding in the eastern region of Valencia which caused widespread disruption across parts of Spain from the end of October, S&P Global reported. Even though growth was slower, it was still the 10th month in a row that Spain experienced manufacturing growth, bucking the general trend across Europe.  New export orders rose at their highest rate since September 2021, with international sales also up. Purchasing and employment activity also rose although at a slower ...

KEY POINTS Genetics testing companies, like Veritas Genetics, Ancestry and 23andMe, are providing consumers with an unprecedented level of access to their personal genome. Privacy risks are not well understood by consumers. Law enforcement and the federal government can pressure these companies to share your DNA.

KEY POINTS OpenAI is allowing employees to sell about $1.5 billion worth of shares in a new tender offer to SoftBank, CNBC has learned. SoftBank’s latest investment adds to OpenAI’s recent $6.6 billion funding round at a $157 billion valuation. The deal was spurred by SoftBank billionaire founder and CEO Masayoshi Son, who was persistent in asking for a larger stake in the company, a person familiar with the matter said. OpenAI is allowing employees to sell about $1.5 billion worth of shares in a new tender offer to SoftBank, CNBC has learned.   The new financing will allow the Japanese tech conglomerate to get an even larger slice of the AI startup and allow current and former OpenAI employees to cash out their shares, two people familiar with the matter told CNBC.   Employees will have until Dec. 24 to decide if they want to participate in the new tender offer, which has not previously been reported, one of the people said. The deal was spurred by SoftBank billionair...

  London CNN  The chief executive of the company behind Ikea furniture stores says tariffs make it more difficult to keep its prices low, joining a growing chorus of business leaders in warning of a potential hit to people’s wallets from Donald Trump’s planned import levies. “In general, we don’t believe tariffs will support international companies and international trade. At the end of the day, that risks ending up on the bills of customers,” Jesper Brodin, Ingka Group CEO, told CNN Wednesday when asked about Trump’s tariffs. He was speaking ahead of the opening of Ikea’s pop-up store on London’s Oxford Street Thursday. “Tariffs make it more difficult for us to maintain the low prices and be affordable for many people, which in the end is our goal,” he added. “We have never experienced a period of benefit when we had high tariffs,” he said, referring both to Ikea and the global economy. “But it’s beyond our control. We will need to understand and adapt.” On Mo...

  The UN climate change conference ended on 24 November with a pledge from developed nations to contribute at least $300 billion annually to support adaptation.  After two weeks of intense negotiations, delegates at COP29, formally the 29th Conference of Parties to the UN Framework Convention on Climate Change (UNFCCC), agreed to provide this funding annually, with an overall climate financing target to reach “at least $1.3 trillion by 2035”. This summit had been dubbed the ‘climate finance COP’, and representatives from all countries were seeking to establish a new, higher climate finance goal.  The target, or new collective quantified goal (NCQG), will replace the existing $100 billion goal that is due to expire in 2025. Reacting to the outcome, UN Secretary-General António Guterres said that while an agreement at COP29 was absolutely essential to keep the 1.5-degree limit alive, “I had hoped for a more ambitious outcome – on b...

  The German government has said that it would be investing billions into the country’s domestic semiconductor sector, in an attempt to strengthen Germany’s global competitiveness, and reduce dependence on countries such as China and the US. Germany has revealed that it is planning to invest approximately €2bn in the country’s semiconductor sector, in the form of subsidies, according to Bloomberg. However, further details have not been revealed. This is expected to go a long way in helping semiconductor companies significantly upgrade their current production facilities.  Earlier this month, Germany’s economic ministry asked semiconductor firms to put forward their subsidy applications. However, the exact amount available as subsidies is still to be determined. This will likely be decided following the country’s next election, which is expected to take place in February 2025. 

  Carrefour SA's chief executive officer (CEO), Alexandre Bompard, has said that he will be issuing a public apology to Brazil's government to smooth over a controversy sparked by the supermarket after it said that it would not be supplying South American beef to its French customers. Alexandre Bompard, Carrefour SA's CEO, has agreed to issue a public apology to Brazil's government, hoping to wrap up the controversy created by the supermarket chain committing to not sell South American beef in France, according to Bloomberg. French ambassador Emmanuel Lenain is reportedly trying to arrange a meeting with Carlos Favaro, the Brazilian Agriculture Minister, to issue this apology. The former is also expected to reemphasise the quality of Brazilian meat during this meeting. Following this, Carrefour is also expected to issue a statement in both Brazil and France, with the justification that it has always only sold French meat in France. This follows Carrefour’s suppo...

    Once online in 2030, it will make modern speeds feel like dial-up   Japan is officially starting work on the world’s first ‘zeta-class’ supercomputer. When completed, the machine should run at least a full 1,000 times faster than the world’s current fastest supercomputer. The computer is expected to go online in 2030 and will cost the Japanese government an estimated $775 million.   Supercomputers  have unequivocally changed our world. They’ve solved complex math problems, simulated massive physical systems, enabled breakthroughs in biology and medicine—name a scientific field, and it’s probably been impacted by supercomputing. And these massive bastions of computing power have only gotten better over time. The faster a supercomputer can work through  calculations  and analyses, the more uniquely helpful it can be to the people using it as a research tool. The speeds of computers are measured in floating-point ope...

Officials hope the new gadget and app will allow thousands of patients to be given the all-clear from the disease much faster – while also helping to detect cases early. The NHS has begun trialling a new iPhone adapter which can check whether someone has throat cancer. It is hoped the device will allow thousands of patients to be given the all-clear from the disease within hours – rather than days or weeks - as well as helping to detect cases early. People suspected of having throat  cancer  are usually given an endoscopy, which involves a long, thin tube with a camera inside being passed through their mouth or nose to look inside their body. The endoscope-i adapter, which can be attached to one of  Apple's smart phones , includes a 32mm lens endoscope eyepiece and an accompanying app. It allows nurses to capture endoscopy footage in high definition before sharing it with specialists who can report back to patients directly. The NHS said an initial pilot by th...

There will be no exemptions for children who have parental consent, or who already have accounts.   Australia's government has pledged to introduce what it described as "world-leading" legislation to ban children under the age of 16 from social media. "Social media is doing harm to our kids and I'm calling time on it," Australian Prime Minister Anthony Albanese said. "I've spoken to thousands of parents, grandparents, aunties and uncles. They, like me, are worried sick about the safety of our kids online." The legislation will be introduced in the country's parliament during its final two weeks in session this year, beginning on 18 November. Mr Albanese said the age limit would take effect a year after the law is passed - with platforms including  Facebook ,  Instagram ,  Elon Musk 's X and Bytedance's  TikTok  using those 12 months to work on how to exclude Australian children under 16. Alphabet's  YouTube  would ...

The Commission and national consumer authorities have found that Temu engages in illegal practices like fake discounts and misleading reviews. Already under DSA investigation, Temu has one month to respond to these accusations. The European Commission has warned Chinese retail giant Temu to fix deceptive commercial practices or face potential fines in a report following a probe by the Consumer Protection Cooperation Network, led by Belgium, Germany, and Ireland.  The report finds that Temu engages in hard selling by offering bogus discounts and hyped reviews. The company issues misleading information, including exaggerating the availability of items and fostering sales urgency with deadlines, it found. Authorities stressed that Temu fails to properly inform users of their right to return products and does not provide clear contact details for complaints.  Additionally, consumer authorities criticised Temu’s use of a “spin the fortune wheel” game, where no clear informati...

  Aerospace and engineering group Rolls-Royce has shut down plans for an electric flying taxi business almost three years after the Spirit of Innovation broke the electric air speed record by recording a 345.4mph flight. The news was announced in a trading update on Thursday, with a comment saying: "In September, we made the decision to close Rolls-Royce Electrical's Advanced Air Mobility activities." That was in contrast to Rolls-Royce's enthusiastic launch of the project when it declared: "The Electrical power and propulsion systems will lead the way for Advanced Air Mobility (AAM), enabling silent short and vertical take-off and landing capabilities while lowering emissions and reducing fuel consumption."

Nissan has said it will lay off thousands of workers as it slashes global production to tackle a drop in sales in China and the US . The Japanese car making giant says it will cut 9,000 jobs around the world in a cost saving effort that will see its global production reduced by a fifth. Nissan did not immediately respond to a request from BBC News for details on where the job cuts will be made. The company employs more than 6,000 people at its manufacturing plant in Sunderland, North East England. The company also cut its operating profit forecasts for 2024 by 70%. It was the second time this year that the firm has lowered its outlook. “These turnaround measures do not imply that the company is shrinking," said Nissan's chief executive Makoto Uchida. "Nissan will restructure its business to become leaner and more resilient." The company said Mr Uchida's monthly salary is being cut by half and that other senior executives will also take pay cuts. Nissan's shar...

China has unveiled new measures aimed at boosting its flagging economy, as it braces for a second Donald Trump presidency. The country plans to tackle tens of billions of dollars of local government debt to prevent it being a drag on growth. Trump won the US election on a platform that promised steep import taxes, including tariffs as high as 60% on Chinese-made goods. His victory is now likely to hinder Xi Jinping’s plans to transform the country into a technology powerhouse – and further strain relations between the world’s two biggest economies. A property slump, rising government debt and unemployment, and low consumption have slowed down Chinese growth since the pandemic. So the stakes are higher than ever for the latest announcement from the Standing Committee of the National People’s Congress (NPC), the executive body of China's legislature. During his first term in office Trump hit Chinese goods with tariffs of as much as 25%. China analyst Bill Bishop says Trump should be ...

This giant solar heating system will help keep the Magna Carta at the perfect temperature. Home to the Magna Carta and a collection of handwritten Beatles lyrics, the British Library is a treasure trove of historic artefacts - but that doesn’t mean it’s stuck in the past. The UK institution recently installed the country’s largest solar heat installation in a bid to keep bookworms cosy while slashing carbon emissions. Spanning more than 712 square metres, the installation is made up of 950 solar collectors tucked away on the library’s roof. It is expected to reduce the London building’s CO2 emissions by 55 tonnes a year. Simultaneously, it will generate 216 MWh of energy annually - enough to power and heat a community centre or swimming pool for a year.

  Vertical solar panels are proving to be a new solution for northern regions, yielding 20 per cent more energy than traditional panels. Norway’s national football stadium carries a lesser-known star attraction: 1,242 solar panels stretching across the roof. These are not traditional flat roof panels. The mini, square-shaped solar panels have two key features that distinguish them from those typically seen on buildings: they are bifacial, meaning they have two active sides, and they are installed vertically. In June 2024, Ullevaal Stadium in Oslo became home to the world’s largest vertical solar panel installation on a roof, placing the stadium at the forefront of renewable energy innovation. At first glance, the panels look fragile, and one might worry about stepping on them. But during a visit to the stadium, we quickly learn that they are incredibly efficient in generating solar power.  Ullevaal Stadium has an ambitious goal of generating at least 250,000 kilowatt-hour...

Chinese online marketplace Temu will have until 21 October to answer European Commission questions on illegal products under the Digital Services Act (DSA). Chinese online marketplace Temu was asked on Friday to provide more information on the measures it has taken against traders selling illegal products on its platform under the EU’s online platform rules, the European Commission announced today. The company will also need to give additional data and information on the measures it has adopted to mitigate the risk of the spread of illegal products, as well as risks related to consumer protection, public health and users’ wellbeing, the statement said. Temu, which was founded by PDD Holdings in 2022, will also have to provide information on recommender systems and the risk to the protection of users’ personal data.  In May, the Commission designated Temu as a Very Large Online Platform under the Digital Services Act (DSA), as it exceeds the threshold of 45 million monthly average u...

  Vegan diets can contain more UPFs on average – but this might not be a problem.   For most people living in industrialised societies, it's difficult to avoid ultra-processed foods altogether. My cereal is ultra-processed. So is the whiskey in my cabinet, the hot sauce in my fridge and the crisps in my backpack.   The term "ultra-processed" is poorly understood and inconsistently used, even sometimes by scientists. While in some circles it has become a catch-all term for foods with little nutritional benefit, a wide variety of foods fall under this umbrella.   Ultra-processed foods are popular with consumers for their convenience (frozen pizza), taste (wrapped cookies), and durability (sandwich bread). These elements, plus the relatively low cost of ingredients, make them profitable for manufacturers.   But recently another motivation for ultra-processed foods has emerged: to replace meat or dairy among those attempting to eat a more plant-based diet. With this...