Grows

Consumer spending remained resilient even as policymakers kept interest rates on holdThe US economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth. But consumer spending rose. And the Federal Reserve’s favored measure of inflation grew more slowly last month, but remained above the central bank’s 2% target.The commerce department reported on Thursday that growth in US gross domestic product (GDP) – the nation’s output of goods and services – decelerated from 2.1% in the first three months of 2026 and came in below economists’ expectations. Continue reading...

• The euro zone economy grew faster than anticipated in the last quarter, driven by increased investment in artificial intelligence, robust government spending, and confident consumers. • Key regional performers included Spain, which grew by 0.7% (beating the 0.6% forecast), and the Netherlands, which expanded by 0.4%, double the expected rate. • Major economies including Germany, France, and Italy each recorded a quarterly growth rate of 0.2%.

• The Federal Reserve maintained interest rates at their current levels during the July FOMC meeting, marking the second hold under Chair Kevin Warsh. • The decision comes amid growing dissent within the committee and concerns from economists, such as NerdWallet's Elizabeth Renter, regarding economic unpredictability and affordability challenges. • The move is significant as businesses and consumers seek explicit reassurance from the Fed that inflation will remain controlled despite Chair Warsh's more subtle communication style.

King’s Fund report finds men and women live, on average, for 80 years and nearly 84 years, but gains are in southThe north-south divide in life expectancy in England has grown over the past decade, with people in northern regions facing more illnesses such as heart disease and cancer, but also suicides and deaths related to alcohol and drug misuse.Provisional figures show life expectancy reached an all-time high in 2025, with men and women in England living, on average, for 80 years and nearly 84 years respectively, but the gains were overwhelmingly in the south, the King’s Fund said. Continue reading...

• US threats to sanction Chinese AI developers for alleged intellectual property theft and export-control violations are straining bilateral relations between the two superpowers. • This diplomatic feud risks dismantling collaborative efforts to establish a shared dialogue on AI safety and security. • The urgency of these safety talks is highlighted by a recent security incident at Hugging Face, demonstrating the risks posed by powerful frontier models.

• Protests led by the Citizens for Justice and Peace (CJP) have intensified at Jantar Mantar, putting increased pressure on Prime Minister Narendra Modi's government. • The movement received a significant boost on Tuesday as the opposition Congress party held a demonstration outside the Prime Minister's official residence. • These actions highlight growing political tension and public dissatisfaction regarding government policies and judicial issues in India.

• Former Chief Minister B.S. Yediyurappa joined protests at Freedom Park in central Bengaluru on Friday to oppose the Bidadi Township Project. • The event marks a significant political shift, as Yediyurappa has not publicly participated in an agitation of this scale since retiring from electoral politics in 2022. • The growing opposition highlights intensifying local resistance against the project's implementation and land use.

Worse-than-expected expansion of 4.3% in three months to June comes amid concerns over lopsided economyBusiness live – latest updatesChina has posted worse-than-expected growth figures for the three months to June, with the economy expanding just 4.3% – one of its lowest quarterly readings on record.The rate, which came in under the government’s target of 4.5-5%, was one of the weakest since reporting on official quarterly GDP figures began in the early 1990s. Continue reading...

Threat of social unrest rises as public indignation at lack of disaster aid comes on top of fallout from US military intervention• A revolution in ruins: fury amid the rubble of a housing project in quake-hit VenezuelaPublic anger at what many perceive as the Venezuelan government’s botched response to twin earthquakes that killed nearly 4,500 people is growing, with one grieving mother caught on camera berating the son of former president Nicolás Maduro.Maduro’s politician son received a hostile reception while visiting a semi-destroyed social housing project named after his father’s late mentor Hugo Chávez. Continue reading...

John Thune says he spoke to McConnell on phone as secrecy over 84-year-old’s health prompts Maga backlashRepublican leaders have moved to quash speculation about Mitch McConnell, the former Republican leader in the US Senate, amid a growing revolt over the lack of transparency around his health.The 84-year-old Kentucky politician, who led Senate Republicans for longer than anyone in history before stepping down last year, was admitted to hospital on 14 June but his office declined to say what he was being treated for. Continue reading...

• South Korean lawmakers and investors are expressing growing unease over leveraged ETFs, which are criticized for potentially amplifying market volatility. • Policymakers are now demanding regulatory fixes to address the risks associated with these high-risk financial instruments. • The issue matters as these products can lead to significant losses for retail investors during sharp market swings, threatening overall financial stability.

The Australian government says there was ‘insufficient notice’ as details of missile path are released by Taiwan government China’s missile test in the Pacific did not comply with international law and was conducted with “insufficient notice” to nearby countries, according to the US and Australia as international condemnation grows.But a Chinese government spokesperson claimed the test was “safe” and part of “routine” military training, telling critics to “not over-interpret it.” Continue reading...

• The July 4, 2026, science roundup highlights three major discoveries: the James Webb Space Telescope's identification of a previously unknown substance, the rapid growth of China's "Great Green Wall," and the resolution of a Medici family murder mystery. • The report emphasizes the telescope's role in expanding astronomical knowledge and the environmental impact of China's accelerated reforestation efforts. • These findings matter as they bridge the gap between cutting-edge astrophysics, global climate mitigation, and historical forensic analysis.

New report details slew of ventures between private equity and nonprofits and calls for greater government oversight A watchdog group is calling for greater government oversight of joint ventures between private equity firms and non-profit healthcare providers, arguing that the arrangements could present “risks” to “patients, payers and employees”.In a new report, Private Equity Stakeholder Project (PESP), a vocal critic of the industry, detailed more than 500 joint ventures between private equity and nonprofit healthcare providers – ranging from rural hospitals to major religiously affiliated health systems to hospice care providers. The group argued those risks could include extraction of profit and a decline in quality of care. Continue reading...

• South Korea was eliminated early from the 2026 FIFA World Cup after failing to reach the Round of 32. • Head coach Hong Myung-bo is facing intense domestic backlash despite the team securing an initial victory against the Czech Republic. • The controversy has intensified following the team's poor performance, prompting Hong to fly to America amid the growing criticism.

• South Korea coach Hong Myung-bo has traveled to the United States following the national team's early exit from the 2026 FIFA World Cup. • The departure comes amid growing domestic backlash and controversy regarding the team's poor performance and the coach's leadership. • This situation highlights the intense pressure and high expectations placed on the national team by South Korean supporters.

• The FDA updated a Salmonella outbreak warning on June 30, 2026, reporting 119 illnesses across 36 states, including 32 hospitalizations. • The expanded recall now includes products from TNVitamins, Live it Up, Doctor's Pride, and Why Not Natural. • This escalation highlights significant public health risks associated with contaminated moringa supplements.

• The Supreme Court has issued several rulings that broaden presidential power, despite some setbacks regarding tariffs and birthright citizenship. • The court upheld the ability of immigration agents to turn asylum seekers away before they reach U.S. soil, effectively bypassing laws that allow individuals to apply for safety. • In a separate decision, the court sided with Vice President JD Vance and other Republicans to remove restrictions on electoral spending, permitting unlimited donations from wealthy donors to political parties.

• China's manufacturing Purchasing Managers' Index (PMI) grew in June, though the growth rate fell slightly below market expectations. • The data indicates a slower-than-anticipated expansion in the industrial sector, reflecting potential headwinds in production and demand. • This trend is significant as it suggests a cooling of manufacturing momentum, which could impact China's broader economic recovery and global trade.

• Japan's manufacturing sector expanded for the sixth consecutive month in June, according to the latest S&P Global Purchasing Managers’ Index (PMI). • The PMI rose to 54.8 in June from 54.5 in May, aligning with previous preliminary flash estimates. • This growth is significant as any reading above the 50.0 threshold indicates sector expansion, while readings below signal contraction.

• Germany is integrating artificial intelligence into its economy to combat a growing shortage of skilled workers. • Economists estimate that this strategic AI adoption could increase the nation's economic output by up to €323 billion over the next decade. • The move is critical as the country seeks to maintain industrial productivity and competitiveness despite a shrinking labor force.

• OpenAI has postponed the rollout of its GPT 5.6 AI model following a request from the US government to limit the initial launch to trusted partners. • The delay stems from government anxiety over AI risks and uncertainty regarding which officials should be briefed and what technical data must be shared prior to releases. • This tension highlights the growing need for standardized oversight of frontier AI models to balance innovation with national security.

• A recent CIO survey conducted by RBC reveals a significant surge in enterprise spending on artificial intelligence, with OpenAI emerging as a primary leader in the space. • The findings contradict fears of a "SaaSpocalypse" or a "token panic," suggesting that businesses are integrating AI tools more stably than critics predicted. • This trend is critical as it indicates sustained corporate investment in generative AI and large language models despite broader economic uncertainties.

• International pressure is intensifying as the UN and foreign governments warn of an expanding conflict and deteriorating humanitarian conditions in Sudan. • Particular concern is mounting over the city of El Obeid, the capital of North Kordofan, where fears of escalation are rising. • This escalation threatens to further destabilize the region and exacerbate an already severe humanitarian crisis for the civilian population.

Many of France’s buildings are not designed for hot weather – and low-income housing estates are suffering the worstLiving in a sweltering, seventh-floor flat on a concrete housing estate south of Paris, Samira said she was feeling desperate as France experienced its highest temperatures on record this week. “Yesterday I sat down and cried, I thought I’m going to die,” said the 35-year-old single parent and former building caretaker.Her flat in Ris-Orangis in Essonne is, like millions of apartments in France, poorly insulated and lacking in outside window shutters. “Blazing sun hits my windows all day – I can’t breathe, I feel dizzy, there is no air,” she said. Continue reading...

Ministers say PM faces being forced out by party if he does not act, with one calling his departure inevitableCabinet loyalists tell Starmer he has the weekend to set out timetable for exit‘Within 10 mins, he’d nicked it’: illustrator on his ubiquitous image of BurnhamKeir Starmer faces pressure from cabinet ministers and MPs to avoid a bruising leadership battle and instead set a timetable to hand power to Andy Burnham, who won a resounding majority in the Makerfield byelection.The prime minister pledged to fight to keep his job, but ministers loyal to Starmer have urged him to set out plans to step down over the weekend.Starmer called members of the cabinet on Friday afternoon to set out his determination to fight on. The transport secretary, Heidi Alexander, is said by sources to be among those who expressed concerns in a call on Friday.At least two ministers, Ed Miliband and Shabana Mahmood, have previously suggested to Starmer that he should set out a timetable for his departure. Continue reading...

• BTS is expected to perform at the halftime show for the 2026 FIFA World Cup final, held at MetLife Stadium. • Fans are generating significant social media hype, predicting the performance will be a career-defining moment for the group. • The event is viewed as a strategic opportunity for BTS to expand their global reach and introduce their music to an even wider international audience.

Republicans question details of deal set to be signed later in the week as European leaders seek to join talks. Plus: can we refreeze the Arctic?Good morning.Donald Trump, facing severe criticism from some domestic supporters for conducting a war against Iran that has met hardly any of its original objectives, has backed a joint G7 leaders’ statement that welcomes his proposed peace deal.What is the domestic criticism of the deal? Many Senate Republicans said there were still unanswered questions and they needed thorough briefings before it was finalized. Senator Lindsey Graham, a close ally of Trump and a longtime hawk on Iran, said: “The way Iran describes it, it’s awful. The way we describe it, it makes sense to me. Let’s look at it and see what it actually is.”How do people in Iran feel about the deal? The Guardian’s Deepa Parent found a shared sense of exhaustion, and anger that nothing has really changed.What does the deal mean for US-Israeli relations? The strategic interests of the US and Israel appear to be diverging and Benjamin Netanyahu has been left in a political bind, facing an election having led Israel in three wars – in Gaza, Lebanon and Iran – without a clear victory in any of them.How are authorities cracking down on protests against ICE? Fifteen people in Minnesota have been charged with conspiracy to impede or injure federal officers over their response to a deadly immigration enforcement crackdown in the state earlier this year. The prosecutors allege the defendants were part of two Minneapolis-based “antifa” groups that “violently oppose immigration law enforcement”. Continue reading...