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Extreme heat and drought across Europe could remove about 1% from European Union economic output in 2026, according to an assessment by Triodos Bank. The estimated loss equals roughly €180 billion and comes during an already weak growth year. The European Commission forecast in May that EU gross domestic product would expand 1.1% in 2026. That baseline leaves little distance between projected growth and the economic damage estimated from this summer’s severe weather. Record summer heat is weighing on European productivity, agriculture, energy and transport. (AI-generated image)

Fresh vegetable costs are climbing as extreme heat affects South Korea’s food sector. The Ministry of Agriculture, Food and Rural Affairs stated that prolonged periods of high heat have led to diminished supplies of crops sensitive to temperature. Vegetables like spinach, cucumbers, and zucchini are especially at risk when high temperatures persist for extended durations. This summer has also set new national temperature records, with Yangsan reaching 42.5 degrees Celsius on Aug. 2, marking the highest temperature recorded in South Korea since nationwide observations started in 1904. Livestock farms have also suffered heavy losses due to the heat. As of Aug. 7, South Korea reported 901,602 animal deaths, with chickens and ducks accounting for approximately 95% of the total. These losses are roughly 55% of what was reported during the same period last year. Despite this, retail prices for broiler chickens remained relatively stable, standing at 5,925 won per kilogram on Aug. 7, which is below 6,000 won for the first time since February. Farms and Fish Stocks Confront Extreme Heat Effects The warming coastal waters have also caused extensive damage to aquaculture operations. Fish farms reported 864,497 fish deaths through Aug. 7, intensifying pressure on the local seafood market. During July 27 to Aug. 1, flounder averaged 22,300 won per kilogram at auction, reflecting a 2.29% increase from the previous week

On Friday, a significant step was taken to enhance Europe’s leading satellite communications system, as the European space authorities finalized a major expansion of the bloc’s flagship orbital network following extensive multilateral negotiations in Brussels. Confirming the development, the European Commission announced the signing of a contract to broaden IRIS2 satellite constellation through a binding implementation agreement with the SpaceRISE industrial consortium. This formal agreement marks the end of detailed technical and financial discussions that began in January 2026, transitioning the Infrastructure for Resilience, Interconnectivity and Security by Satellite program from planning to full industrial deployment.

The trade balance of South Korea experienced a historic surge in June, reaching a record $49.73 billion, driven by a significant rise in semiconductor exports. The Bank of Korea indicated a sharp increase from the previous high of $38.61 billion recorded in May. This month also marked the 38th consecutive month of persistent current account surpluses for the country. A major factor behind this growth was robust goods exports, with technology shipments playing a leading role in expanding the country’s overseas sales.

Eurozone Manufacturing Gains Momentum in July Amid Weakening Export Orders LONDON / RankWire.AI / – The eurozone’s manufacturing sector experienced growth in July, with factory output reaching its quickest rate in nearly four and a half years. The S&P Global manufacturing PMI increased to 51.9 from 51.4 in June. A figure above 50 indicates expansion. The final data was slightly below the initial estimate of 52.0. Production levels picked up at the start of the third quarter, yet demand indicators pointed to an uneven recovery across the currency bloc.

The European Union has officially introduced the Scaleup Europe Fund, aiming to gather €5 billion in funding. The European Commission finalized the necessary legal procedures on August 4. Operating within the framework of the European Innovation Council Fund, the fund’s focus is on strategic technology enterprises. EQT has been appointed as the investment manager and will evaluate deals on commercial terms. The Commission anticipates the first investments will be made within a few weeks. Efforts to raise additional funds will persist as EQT seeks further commitments from both public and private sector investors.

The OECD’s annual inflation rate slowed to 4.2% in June 2026 from 4.6% in May, marking the end of a three-month streak of rising headline inflation. Lower energy inflation helped reduce price growth across OECD, G7 and G20 economies. Yearly energy inflation dropped by four percentage points to 11.7%, down from 15.8% in May. Food prices and core inflation also saw decreases during the month. Energy slowdown influences G7 inflation rates, with every G7 country except Japan experiencing a fall in inflation rates. In the US, inflation decreased to 3.5% in June from 4.2% in May. The Euro area’s inflation fell to 2.8% in June from 3.2% in May, mainly supported by lower energy inflation. Across the G20, inflation eased to 4.1% in June from 4.3% in May.

The UK economy continues to grow, avoiding recession, but a slowdown in investment and job creation has heightened concerns about its future expansion. EY projects the gross domestic product to increase by 0.9% in 2026, revising its May forecast upward by 0.1 percentage points. The company also anticipates a 1.2% growth rate in 2027. Their central outlook considers the Strait of Hormuz reopening by September, while shipping volumes stay below usual levels. Currently, energy prices are at the forefront of economic discussions in the UK.

U.S. equities surged on Monday, with technology shares leading gains and crude oil prices declining. The Dow Jones Industrial Average soared 693.38 points, or 1.32%, reaching an all-time high of 53,178.41. The S&P 500 increased by 1.48% to close at 7,600.50, nearly touching its record peak. Meanwhile, the Nasdaq Composite rose 2.13% and finished at 25,913.90. Broad buying activity was evident across major sectors, including many smaller U.S. companies.

By the end of June 2026, the UK’s solar power capacity reached 22.8 gigawatts, reflecting a continued upward trend in the country’s renewable energy deployment. The Department for Energy Security and Net Zero reported approximately 2.076 million installations nationwide. During June alone, households and businesses added 27,391 systems, which contributed 132 megawatts of new capacity. These figures are provisional and may be updated as officials receive additional project data.