US President Donald Trump’s administration sent a new proposal to the EU, Bloomberg learned, for implementing “reciprocal, fair and balanced” trade. It is not known what the specifics of the US demands are but the administration had been seeking to discuss the bloc’s legislation including its digital and technology rules as well as corporate compliance and climate-related regulations.
The new demands come as officials prepare to negotiate the next steps of the trade deal reached in Scotland in July, which set a 15% tariff on most EU goods entering the US.
The EU has repeatedly said that maintaining regulatory autonomy is a red line, but that it will consult with the US on each subject.
It is understood that EU officials will seek political guidance from member states on the US proposal and how to handle next steps in the negotiations. — Jennifer Duggan
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Outgoing French Prime Minister Sebastien Lecornu has expressed optimism on solving the country’s political crisis. Lecornu said he believes an agreement can be reached to allow the formation of a new government without fully endorsing a new proposal to rethink a controversial pension law that was demanded by the Socialists. President Emmanuel Macron asked Lecornu to have one last attempt to bring together opposing parties to give France “stability” as a budget is urgently needed to curb a growing debt burden and reassure investors.
Saudi Arabia is in talks to raise as much as $10 billion in a rare loan deal. It is part of the kingdom’s efforts to line up financing for Crown Prince Mohammed bin Salman’s diversification plan. The finance ministry is understood to be speaking with banks including large Wall Street lenders for the loan. Saudi Arabia has so far primarily focused on raising funds through bond sales.
Germany will see a small expansion of 0.2% this year before growth strengthens to 1.3% in 2026, according to revised government projections. Next year’s expansion is supported by tens of billions of euros in fiscal stimulus. The latest twice-yearly forecasts published today are slightly more optimistic than April’s projections by the previous government. The ruling coalition is trying to restore meaningful growth to Europe’s biggest economy after several years of stagnation.
A slew of approvals by China for imports of agricultural imports from African countries highlights the opportunities Trump’s trade war is creating for African economies. In recent months, Beijing has approved imports of blueberries from Zimbabwe, Gambian groundnuts and cashews and Ethiopian soybean meal. These seemingly minor bureaucratic decisions highlight how African agriculture is rapidly becoming a proving ground for global investment. For China and other nations whose US trade has been disrupted, Africa offers a chance to diversify away from politically risky agricultural imports.
Workers fill sacks with cashew nuts at a factory in Tanji, Gambia. Photographer: MUHAMADOU BITTAYE
Cautious positivity has been voiced by both Hamas and Israel as senior negotiations arrive in Egypt to join a third day of negotiations on Trump’s peace plan. Details on the exchange of hostages for prisoners and the withdrawal of Israeli troops are being discussed, said Taher Al-Nounou, a member of the Hamas delegation. Hamas has offered to free the last of the hostages it holds from the Oct. 7, 2023 raid on southern Israel, which triggered the war in Gaza, a conflict that’s devastated the Palestinian territory and destabilized much of the Middle East.
The Bank of England has warned that stretched valuations for artificial intelligence companies and challenges to the Federal Reserve’s independence have fueled the risks of a “sharp market correction.” In its quarterly financial stability update, the UK central bank said asset valuations had continued to rise and credit spreads tightened since its June review. This is despite “persistent material uncertainty around the global macroeconomic outlook.” Worries about a potential AI bubble have grown as a record-breaking rally in US stocks has lifted valuations.
The Nobel Prize in chemistry was awarded to scientists from Japan, the UK and Jordan for creating molecular constructions with potential to help combat climate change. Susumu Kitagawa, Richard Robson and Omar M. Yaghi will share 11 million kronor ($1.2 million) for creating molecular constructions with large spaces through which gases and other chemicals can flow, the Royal Swedish Academy of Sciences in Stockholm said today. Applications for the so-called metal-organic frameworks include capturing carbon dioxide and harvesting water from desert air.
The 2025 Nobel Prize in chemistry was awarded to Susumu Kitagawa, Richard Robson and Omar M. Yaghi. Source: Nobel Prize
