The French government is seeking €54 billion in savings in its 2027 budget proposal, as it faces pressure over its ballooning public debt. But it's likely to face opposition, especially on proposals that would cap pension increases. Meanwhile, protests by high school students over resources and conditions in classrooms have spread across the country, with the budget likely to further inflame tensions. 

US President Donald Trump discussed AI development with dozens of tech bosses at the White House on Tuesday. Ahead of his "super intelligence" luncheon, Trump launched a new AI-powered website for government services, vowing not to stifle the technology's growth. He also said he didn't want to work with Chinese President Xi Jinping on AI oversight. Plus, dozens of dogs are rescued from a breeding farm in South Korea as the country prepares for a complete phaseout of the dog meat industry. 

OpenAI, the company behind ChatGPT, has decided to cancel the release of its latest agentic model Astra 6.1 because it did not meet safety standards. Rival AI firm Anthropic, meanwhile, is dedicating a large majority of its IPO prospectus to laying out the risk factors associated with AI, according to Reuters. Also in this edition: Russia adds another layer of secrecy to its energy sector and NASA reboots Boeing's struggling Starliner rocket programme.

Trade unions in France have called on public sector workers – from train drivers to teachers, health workers and police officers – to stop work and protest at the government's plan to freeze the public sector's pay index, just days before the government is set to unveil its draft budget for 2027. Plus, as Paris Fashion Week kicks off, we speak with an expert on what the struggling luxury sector needs to do towards a more sustainable future. 

Flights between Iran and the United Arab Emirates have been suspended, following tighter US sanctions on Iran's aviation industry. The move effectively cuts Tehran off from Dubai, one of the region's most important commercial hubs. There are also huge backups near Iran's border with Turkey, as overland shipping routes struggle to fill the gaps. Also in this edition: Donald Trump and Xi Jinping hail strong ties between the US and China as they discuss AI, trade and energy. 

The Trump administration's suggestion that it could ban or limit diesel exports has sparked a furious backlash from the American oil industry. Politicians are trying to bring down soaring energy prices ahead of the midterm elections in November, but critics say a ban would cause supply problems and higher prices both at home and abroad. Also in this edition: the OECD says the global economy is withstanding the energy shock better than expected, partly thanks to AI investment. 

Under pressure to help businesses and workers cope with soaring fuel prices, the French government has announced it will expand targeted energy relief for those most affected. The new measures will cost €450 million, bringing the total so far to €1.4 billion. Meanwhile, as French President Emmanuel Macron calls for allowing more biofuels to be added to diesel, we speak to an expert about the potential environmental impact of a rapid ramp-up in biofuel use. 

Dependence on consulting firms is a growing trend among governments globally. Left unchecked, it can have a negative impact due to high costs or transparency issues. Such dependence came to the fore in France a few years ago, when the Macron government was criticised for its close ties with US consulting giant McKinsey. UNESCO's Inclusive Policy Lab, headed by Iulia Sevciuc, has established a new blueprint to tackle this problem. She spoke to us in Business.

Paramount Skydance has settled a lawsuit with a dozen US states that sought to block its acquisition of Warner Brothers, as well as with the Writers Guild of America. 
California's attorney general said that while the settlement addressed concerns over competition and protection, it did not mean a vote of support for the deal.

US and Chinese delegations held "succesful" and "constructive" talks in New York on Sunday on Artificial Intelligence and trade, ahead of Chinese President Xi Jinping's visit to Washington later this week. The two countries discussed setting up a dialogue mechanism as fears over AI security keep rising, and prepared to ease trade tensions as a truce deal is set to expire in November. Also in this edition, France and Canada seek to deepen ties on critical minerals and energy.