Business

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.

French fishermen have agreed to lift their blockades at fuel depots and ports, including Nice, after talks with the government over financial aid. They say soaring fuel prices since the start of the war with Iran are pushing them to the brink. Also in the segment: India could be hit by fresh US tariffs if it keeps buying Russian oil. US lawmakers approved a new sanctions package that ratchets up the economic pressure on Moscow and its trading partners.  

The US central bank raised its benchmark rate by .25 percent, with new Fed Chair Kevin Warsh defying President Donald Trump's desire for lower rates. Consumer banks and bond markets react. Also, OpenAI reveals new incidents of AI misconduct as fears grow that the technology could escape human control.

The US Federal Reserve has raised its key interest rates for the first time in three years, as it seeks to bring down high inflation. The policy decision sets up a potential confrontation between Chairman Kevin Warsh and President Donald Trump, who has repeatedly called on the central bank to cut interest rates. Also in this segment: France extends fuel subsidies as fishermen’s protests gather momentum, and Hong Kong seeks to fall in line with Beijing's economic vision. 

People in the single-currency Eurozone have been invited to vote on the designs of upcoming euro bank bills. Proposed designs include historic figures like Marie Curie and Leonardo da Vinci, as well as a vertical format. They are expected to enter circulation around 2030. But first, as higher fuel prices stemming from the Iran war hurt consumers, fishermen in southern France scuffled with police as they tried to blockade an oil depot.