Global Economic Uncertainty and Technological Advancements

European markets opened higher on Wednesday as investors awaited Nvidia's quarterly earnings report, a key indicator for the global technology sector and artificial intelligence boom. The French CAC 40 index rebounded after a decline on Tuesday due to political instability concerns. The pan-European Stoxx 600 index has fallen in two consecutive sessions but remains up nearly 1.5% for the month. U.S. futures rose slightly as investors reacted to President Donald Trump's move to fire Federal Reserve Governor Lisa Cook. Asia-Pacific markets were mixed, with China's industrial profits showing a recovery.

The article discusses the current political instability in France, where Prime Minister François Bayrou is facing a vote of confidence on September 8th. Bayrou's minority government is struggling to stay afloat in a deadlocked parliament, and markets are growing nervous as a result. This is the third time in little over a year that France has faced a potential change in prime minister, highlighting the country's ongoing political challenges.

France's new prime minister, François Bayrou, is attempting to form a minority government by seeking compromise with the left bloc in the deadlocked National Assembly. This move has raised concerns that it may lead to the unraveling of President Emmanuel Macron's economic policies, including a planned increase in the pension age. Bayrou's approach is seen as a gamble that could either lead to constructive compromise or undermine Macron's economic legacy.

The article discusses Friedrich Merz, the Chancellor of Germany, who is facing challenges at home despite being respected abroad. Merz was elected with a wafer-thin majority and struggles to maintain the loyalty of his coalition partners, comprising the Christian Democrats (CDU), the Christian Social Union (CSU), and the Social Democratic Party (SPD). The article highlights Merz's difficulties in maintaining stability and unity within his government, which is crucial for Germany's future, particularly in avoiding a hard-right government.

The article examines whether foreign tourists have avoided America in 2025 due to negative publicity surrounding the Trump administration's policies and actions. An analysis of available data suggests a sharp drop in international visitors compared to the previous year. The article discusses the potential impact of the administration's actions, such as slashing government departments, shaking alliances, increasing deportations, and deploying the National Guard on city streets, on the country's tourism industry.

The article discusses the recent tariff policies implemented by Donald Trump's administration, particularly the extension of the tariff truce with China and the various trade deals struck with other countries. The article highlights the complexity and unpredictability of Trump's tariff rates and their impact on different countries, including Canada, Congo, the European Union, Japan, Britain, South Korea, Vietnam, Brazil, India, and Switzerland. It also notes that some of the tariffs have been reversed or adjusted following criticism and backlash.

The article discusses the conclusion of an eight-month project by The Economist's War Room newsletter to archive events from 1945. Fraser McIlwraith, a news editor, reflects on the project. The newsletter has covered various European topics, including France's economic troubles, Ukraine's naval drones, and Trump's desire for a Nobel Prize. Other articles mentioned include analysis on Turkey's football clubs and Germany's political landscape.

The article discusses how European leaders can use Donald Trump's desire for a Nobel Peace Prize to their advantage in supporting Ukraine. Trump's aspiration for the prestigious award is influencing American diplomacy, presenting both opportunities and challenges for Europe. Ukrainian President Volodymyr Zelensky recently visited Washington and gifted Trump a golf club, following a tradition of foreign dignitaries bringing thoughtful gifts to the White House. The article suggests that Europe can exploit Trump's ambition to help Ukraine, but warns of the potential pitfalls of photo-op peacemaking.

China has successfully tested a new residual heat removal system for its next-generation nuclear power plants, which could make them more meltdown-proof. The technology is for a fourth-generation nuclear plant with a closed-loop fuel cycle that uses fast reactors, allowing for more fuel efficiency and the ability to recycle nuclear waste. The test was conducted by the China Institute of Atomic Energy and is seen as a breakthrough in the development of these advanced reactors.

The article highlights seven recent scientific developments in China, including the unveiling of China's first high-speed jet drone, a top aviation engineer leaving the US for China, and a new see-through brain technique. The high-speed jet drone is a significant breakthrough in aviation technology, allowing warships to launch aircraft without runways. The engineer, Zhou Ming, was involved in designing Boeing 787 and Airbus A380 planes and has returned to China after leaving his role at Altair. Chinese scientists have also developed a technique to make biological tissues transparent, allowing for a clear view of their inner workings.

Cambricon Technologies, a Beijing-based chipmaker, has reported a record revenue surge of 4,348% in the first half of 2025, driven by the growing demand for AI applications. The company's revenue reached 2.88 billion yuan (US$403.8 million), a record high since its IPO in 2020. The surge in revenue is attributed to Cambricon's continued market expansion and active support for AI applications. The company's shares have also seen a significant increase, surging 6% on Wednesday morning to trade at 1,408.9 yuan per share. The stock has more than doubled over the past month, leading an AI-driven stock market frenzy. The growth is further boosted by Chinese start-up DeepSeek's breakthrough AI models, which are compatible with home-grown chips.

China's Zijin Mining Group, the world's third-largest metals miner, reported a record quarterly profit but warned of unprecedented geopolitical risks affecting its overseas projects. The company cited global uncertainties and competition for critical minerals among major powers as potential challenges to its revenue and new projects. Zijin Mining's net income jumped 54% to 23.3 billion yuan due to higher output and prices. The company has grown rapidly, particularly in Africa, and focuses on copper and gold. The US, under President Donald Trump, has been pushing to secure control of resources worldwide, potentially impacting China's dominance.

China's property market is showing signs of recovery as developers China Resources Land and Sunac post stronger earnings and reduced losses. China Resources Land's net profit rose 16.2% to 11.9 billion yuan, while Sunac's loss narrowed by 14.4% to 12.8 billion yuan. The improvement is attributed to government stimulus measures and recovering consumption. China Resources Land's earnings growth was driven by a 25.8% rise in property development revenue and a 5.5% increase in revenue from investment properties. The company's retail sales from its malls surged 20.2% to 110.2 billion yuan, outpacing the national total retail sales. The recovery in mainland China's retail consumption and government support have begun to sow the seeds of recovery in the property industry.

South Korea's investments in the US shipbuilding sector are expected to have a modest impact on China's dominant shipbuilding industry, according to analysts. While the investments may test Chinese shipmakers in the long run, China's cost advantages and global market presence are likely to mitigate the effects. Analysts believe that China's shipbuilding sector will continue to thrive due to its competitive labor and steel costs, making its vessels attractive to buyers in emerging economies.

China is set to showcase its military progress on September 3, marking the 80th anniversary of its victory over Japan in World War II, as part of its goal to become a world-class military by 2027. The upcoming Victory Day parade will display the People's Liberation Army's (PLA) strength and solidarity, but recent corruption scandals within the military have raised concerns about its readiness. The removal of former navy chief of staff Li Hanjun on suspicion of corruption highlights the ongoing anti-corruption campaign within the PLA. Despite these challenges, the parade is expected to demonstrate China's military modernization and its determination to create a fighting force capable of winning wars.

US President Donald Trump held a record-breaking 3 hour and 16 minute Cabinet meeting, during which he freewheeled through his favourite topics and made several controversial comments. The meeting was attended by his top officials, who took turns praising him as the 'greatest president' in history. Trump discussed various issues, including crime, trade, and foreign policy, and made comments that were likely to keep foreign diplomats busy figuring out his stance.