Business

French Prime Minister Sébastien Lecornu has tried to calm both student protesters and jittery bond markets. In an address to the nation, Lecornu stressed that the education ministry had not seen any cuts in last week's budget proposal, but insisted the government must cut its public deficit to 5 percent. There are growing concerns about France's spending and debt, with the IMF urging the country to "get your house in order." Lecornu also confirmed the release of 10 million barrels of diesel fuel. 

After shrinking briefly in the aftermath of the October 7, 2023 attacks, Israel's GDP is predicted to grow by 4 percent this year. The country's tech sector – specifically its defence startups – has played a big part in this performance but challenges, notably demographic ones, are on the horizon. Meanwhile, the destruction caused by Israel's war in Gaza has reduced GDP per capita in the Palestinian enclave by 83 percent and reconstruction plans there have yet to begin.

Protests have been gripping France, with students demanding better learning conditions and more equal opportunities. The education ministry is among the few ministries that have been granted an increase in next year's draft budget, but critics say it still doesn't catch up with inflation. We take a closer look. Plus, OpenAI has apologised to Australia over its handling of government website hacks by a rogue AI agent in June. 

In August, US employment in roles most exposed to AI for people aged between 22 and 25 shrank by 4.4 percent year-on-year. This means there's been a contraction every single month since October 2023, about a year after ChatGPT was first released. The high impact of AI on younger workers is one of the key trends emerging from the Canaries Dashboard, a project led by the Stanford Digital Economy Lab and ADP Research. We spoke to ADP Research's Chief Economist Nela Richardson in our Business segment.

The euro has stumbled to a 17-month low against the US dollar on concerns about France's ability to bring its public finances in order. The currency has dropped nearly 7 percent from its peak in late January. Meanwhile, global oil prices have fallen despite ongoing tensions around the Arabian Peninsula, after the G7 agreed to release up to 100 million barrels from strategic reserves and oil flows from the Persian Gulf returned to pre-war levels. 

US President Donald Trump has named his National Intelligence Director Jay Clayton as America's "Super Intelligence" czar, as fears over AI grow. Also, oil markets react to Houthi attacks as well as export data, and France's fiscal woes drive the euro to a 17-month low. 

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.