Kia ora and welcome to your Monday summary of global business and political news.
First to developing news, and the United States and European Union have reached a trade deal in the past several hours ahead of the August 1 deadline, the BBC reported.
US President Donald Trump and European Commission President Ursula von der Leyen held talks in Scotland that involved "tough negotiations". The European Union faced a 30% tariff from August, but von der Leyen confirmed that had dropped to 15% across the board.
"We have reached a deal. It's a good deal for everybody," Trump said overnight.
"It's going to bring us closer together ... it's a partnership in a sense."
Von der Leyen said it was a "huge deal" following careful and tough negotiations.
Meanwhile, Trump does not expect to reach a deal with Canada, after hard balling on both sides to carve out an agreement, the BBC said.
Canadian Prime Minister Mark Carney said his country would not accept a “bad deal” or rush into an agreement.
Canadian Prime Minister Mark Carney.
In China, industrial profits fell for a second consecutive month, amid competition and US tariffs, Bloomberg reported.
Profits fell 4.3% last month, compared with a year earlier, after a 9.1% fall in May.
Exports to the US fell, which squeezed profit margins for Chinese manufacturers. That also risked a decline in business confidence and flow through to lower investment and jobs.
In the Middle East, Israel started a “tactical pause” in fighting in three areas of Gaza to address the declining humanitarian situation, Al Jazeera reported.
The suspension of military operations from 10am to 8pm local time every day was until further notice. The military also said it would designate secure routes to help aid agencies deliver food and other supplies.
Aid airdrops into Gaza, including packages of flour, sugar, and canned food, were delivered over the weekend.
French President Emmanual Macron said his country would formally recognise a Palestinian state in September, at the annual UN General Assembly.
BBC correspondent Lyse Doucet said that recognition was largely symbolic and profoundly political. The US and Israel condemned the move.
Palestinians welcomed the pledge by France and urged other countries to do the same, Al Jazeera reported.
“We hope it will be implemented, and we hope that most or all countries around the world will follow France’s lead in recognising the Palestinian people’s right to an independent state,” Nabil Abdel Razek, a resident of Ramallah in the occupied West Bank, told AFP.
Gaza kids charity organisation distributes food.
In other news, Intel planned to proceed with plans to cut 15% of its global workforce, as the chipmaker attempts a turnaround, CNN reported.
CEO Lip-Bu Tan said that turnaround would take time, but there were “clear opportunities” to improve its performance.
Intel said the staff cuts were “designed to create a faster-moving, flatter and more agile organisation”. The company also said it's scrapping projects in Germany and Poland as part of its cost cutting measures.
Airline manufacturer Boeing faced the risk of strike action after union workers rejected an offer that would boost their salaries by 20% over four years, Bloomberg reported.
The International Association of Machinists and Aerospace Workers voted overwhelmingly against the new terms. The proposal “fell short of addressing the priorities and sacrifices” of the company’s skilled workforce, the union said.
“Our members are standing together to demand a contract that respects their work and ensures a secure future.”
Finally, Meta CEO Mark Zuckerberg announced Shengjia Zhao, the co-creator of OpenAI’s ChatGPT, was appointed as chief scientist of Meta Superintelligence Labs, CNBC reported.
Zuckerberg announced the Meta Superintelligence Labs initiative in June. Zhao will work directly with Zuckerberg.
“Shengjia has already pioneered several breakthroughs including a new scaling paradigm and distinguished himself as a leader in the field,” Zuckerberg said.
“I’m looking forward to working closely with him to advance his scientific vision.”
