Economic forecasts, political confrontations, market momentum, and climate research shaped the global news cycle Tuesday.
The OECD warned the UK is set to post the highest inflation among G7 nations, President Donald Trump used his United Nations address to deliver sharp criticism of Europe and global institutions, European stocks gained on optimism from Nvidia’s major investment in OpenAI, and new research highlighted a stark death toll from extreme heat across Europe.
OECD predicts UK will lead the G7 in Inflation in 2025
The UK is expected to face the highest inflation among the G7 countries in 2025, the Organisation for Economic Co-operation and Development (OECD) said in its latest outlook.
Driven in part by resurgent food prices and higher business costs, inflation is forecast to average 3.5% this year, well above the 2.7% predicted for the US.
The OECD also projected UK inflation will ease to 2.7% in 2026, still above the Bank of England’s 2% target.
The projections suggest that Britain, despite recent efforts to stabilise its economy, will continue to grapple with stubbornly high price growth compared with its peers.
Trump launches broadside at UN and Europe
US President Donald Trump returned to the United Nations General Assembly on Tuesday with a forceful speech that targeted Europe, the UN, and other global powers.
In his first address to the body since his political comeback, Trump claimed Europe was “going to hell because of migration” and accused the UN of “funding an assault on the West.”
He demanded that European nations halt imports of Russian oil and also criticised India and China.
Turning to domestic themes, Trump highlighted his administration’s record, saying inflation had been lowered, wages boosted, and the US was now the “hottest country in the world.”
European markets gain on Wall Street momentum
European stocks closed higher Tuesday, tracking gains on Wall Street after Nvidia announced plans to invest up to $100 billion in OpenAI to build new data centres.
The pan-European Stoxx 600 provisionally finished 0.4% higher, with technology shares among the leaders.
Nvidia rose 3.9% in US trading on Monday following the announcement, helping all three major US indexes close at record highs.
European chipmakers rallied in response, with Be Semiconductor up 3.3%, Infineon gaining 2.4%, and STMicroelectronics rising 2.7%.
Equipment supplier ASML added 1.1% after reversing earlier declines.
The surge underscored investor enthusiasm for AI-driven projects, with Nvidia’s CEO Jensen Huang calling the partnership with OpenAI “a giant project.”
Heat-related deaths surged across Europe in 2024
Extreme summer heat claimed more than 62,700 lives across Europe in 2024, according to research published in Nature Medicine.
The study, led by the Barcelona Institute for Global Health (ISGlobal), analysed daily mortality data from 32 countries.
Researchers found that between June and September 2024, heat-related deaths increased 23% compared with the same period in 2023, though slightly below the record 67,900 deaths recorded in 2022.
The Copernicus Climate Change Service confirmed 2024 as the hottest summer on record in Europe.
Southern Europe accounted for the majority of fatalities, with Italy — home to one of the continent’s oldest populations and repeated heatwaves — recording the highest death toll in each of the three summers studied.
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