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Europe
The Guardian

Tesla sales surpass expectations for second quarter as Musk backlash seems to cool

Tesla vehicles and super chargers are shown at a Tesla dealership in Buena Park, California, on 28 January 2026. Photograph: Mike Blake/ReutersView image in fullscreenTesla vehicles and super chargers are shown at a Tesla dealership in Buena Park, California, on 28 January 2026. Photograph: Mike Blake/ReutersTeslaTesla sales surpass expectations for second quarter as Musk backlash seems to coolStrong figures suggest Tesla’s auto business is regaining momentum after two straight annual sales declines Tesla blew past ​Wall Street estimates for second-quarter deliveries on Thursday, posting a record for the period as recovering demand in Europe outweighed persistent weakness in North America. The strong figures suggest Tesla’s ⁠mainstay auto business is regaining momentum after two straight annual sales declines, providing the spending cushion needed to power its ambitions in autonomous driving and artificial intelligence – the main drivers of the company’s roughly $1.6tn valuation. Tesla expects to spend more than $25bn on capital expenditure in 2026, nearly triple the $8.5bn last year, to expand ​AI infrastructure, battery production, Cybercab manufacturing and Optimus robots. “I ‌think the huge growth in Europe ‌is the key driver for Tesla right now. US sales still appear to be down, albeit less than the broader ‌US EV decline, while China is seeing small growth,” said Seth Goldstein, senior equity analyst at Morningstar. Tesla’s recovery in Europe was aided by government EV incentives, faster electrification of corporate fleets, higher fuel prices and an easing of the consumer backlash over CEO Elon Musk’s far-right politics last year. The company delivered 480,126 vehicles in the April to June period, a record for the second quarter and up about 25% from a year earlier, easily surpassing analysts’ average estimate of 402,776 vehicles, according ‌to Visible Alpha data. Tesla produced 451,758 vehicles during the quarter. The deliveries exceeded production by more than 28,000 vehicles, leading the company to draw down inventory that it built up during the first quarter. The ​company’s China-made EV sales have risen this year, helped by production of the refreshed Model Y, despite intense competition from BYD and other domestic automakers. Earlier in the day, smaller ​rival Rivian raised its annual deliveries forecast and ​beat estimates for second-quarter deliveries. Tesla has continued to roll out its “full self-driving” (FSD) advanced driver assistance ​software in Europe, although it ‌is only available in a ​handful of countries. Analysts ​expect broader availability over the coming months to support demand. The company expanded its robotaxi operations after launching a limited commercial service in Austin in June. Musk has said the company intends to rapidly expand the service through 2026.

Tesla sales surpass expectations for second quarter as Musk backlash seems to cool
Europe
The Guardian

US employers added just 57,000 new jobs in June, lower than expected

A hiring sign for sales professionals is displayed at a store in Vernon Hills, Illinois, on 15 April 2026. Photograph: Nam Y Huh/APView image in fullscreenA hiring sign for sales professionals is displayed at a store in Vernon Hills, Illinois, on 15 April 2026. Photograph: Nam Y Huh/APUS unemployment and employment dataUS employers added just 57,000 new jobs in June, lower than expectedThe country’s unemployment rate dropped slightly to 4.2% as US job growth also slowed for the month US job growth slowed in June as employers added 57,000 new jobs – just about half of what economists had predicted – and the Bureau of Labor Statistics revised its figures from the past two months down by a total of 74,000. The country’s unemployment rate dropped slightly to 4.2%, but the number of unemployed people changed little, according to the latest data, as 720,000 people left the labor force. The bureau revised the unexpectedly high May figures from 172,000 new jobs to 129,000, and revised the April figures from 179,000 to 148,000. Though the numbers fell short of economists’s expectations, the average number of jobs added in the last three months was about 111,000, indicating a relatively strong job market despite economic uncertainty and higher inflation brought on by the war in the Middle East. The figures also remain much higher than the sluggish growth seen last fall and winter. Private employers added 98,000 jobs in June, according to data from the payroll supplier ADP, and pay was up 4.4% year-over-year for those who have stayed in their jobs for the year. Workers in finance saw the highest increase in their annual pay, at 5%. The healthcare industry, which has so far been key in driving job gains, added 22,000 jobs in June – a slower pace than its average monthly gain of 38,000. The hospitality and leisure industry unexpectedly declined by 61,000, reflecting weaker than usual seasonal hiring despite the World Cup soccer matches hosted across the US. According to data from the Bureau of Labor Statistics, also released earlier this week, the number of job openings, hires and voluntary separations all changed very little in May, indicating that the economy is still in a “low hire, low fire” mode. “The pace of hiring is telling a story of both supply and demand. We know it’s taking people longer to find work, but there also are signs of labor supply constraints in certain industries,” said Dr Nela Richardson, ADP’s chief economist. “For now, the overall effect is a slowdown in job creation.” The latest jobs numbers make it all the more likely that the US Federal Reserve will continue to focus on inflation at its next meeting in late July. Last month, the Fed’s new chair, Kevin Warsh, emphasized “price stability” in his first press conference since taking office and said the central bank will continue to pursue its longstanding goal of a 2% inflation rate. But this week, he told a conference of central bankers that “inflation risks have come down”. Since February, the war in the Middle East has rapidly pushed up inflation, reaching a three-year high of 4.2% in May. Despite the fragile peace deal reached between the US and Iran, prices at the pump remain elevated and it is unclear whether the June inflation figures, which are scheduled to be released later this month, will reflect the latest negotiations. In their June meeting, Fed officials also released projections indicating that most members believed that at least one rate hike would occur before the end of the year. The central bank has held rates steady since December.

US employers added just 57,000 new jobs in June, lower than expected
Europe
The Guardian

EU sets up three months of talks with China over €360bn trade deficit

Transport ships loaded with cars destined for overseas markets lie at berth at Taicang in China’s Jiangsu province. EU tariffs have failed to stem imports of electric vehicles. Photograph: VCG/Getty ImagesView image in fullscreenTransport ships loaded with cars destined for overseas markets lie at berth at Taicang in China’s Jiangsu province. EU tariffs have failed to stem imports of electric vehicles. Photograph: VCG/Getty ImagesEuropean UnionEU sets up three months of talks with China over €360bn trade deficitTwo sides agree to try to make bilateral relationship ‘more balanced’ after weeks of threats The EU and China have agreed to enter three months of talks to try to avoid a trade war over the bloc’s €360bn (£310bn) annual import/export imbalance. In their first joint statement in seven years, the two sides agreed in Brussels to open a formal trade consultation after weeks of threats and recriminations from China if the EU imposed any measures to stop the flood of goods and components into the bloc. The EU’s trade commissioner, Maroš Šefčovič, said he hoped the “dialogue would bring tangible results” before the next meeting in Beijing in October. He met his Chinese counterpart, the commerce minister, Wang Wentao, for talks on Monday as part of a diplomatic offensive. They said in a joint statement: “The EU and China as key trade partners, agree that the main objective of the TIC [trade and investment consultations] is to strengthen dialogue at ministerial level on trade and investment policies with the view to stabilise and make our bilateral relationship more balanced.” EU leaders met two weeks ago to discuss concerns over what is now widely being described as China Shock 2.0 – a threat to European industries and jobs that extends far beyond electric vehicles and green energy. Eurostat, the EU’s statistics agency, said on 15 June that Chinese exports to the EU outweighed imports from the bloc by €1bn a day. View image in fullscreenMaroš Šefčovič, the EU’s trade commissioner, updates reporters on Monday about talks with China. Photograph: Olivier Matthys/EPA“We simply cannot afford to continue in the unsustainable growth of the trade deficit from the European perspective,” said Šefčovič. “We just didn’t want to wait too long. You hear it from European leaders, you heard it from the president of the European Commission, that what is very important for us is engagement, it’s dialogue. But it has to bring tangible results, and we believe that we can achieve them by October.” Industry groups including the European Chambers of Commerce in China say the level of exports going to Europe is threatening to “cannibalise” EU factories heavily reliant on components from China. The two sides have agreed to enter into consultation on four areas: the rebalancing of trade and investment; export controls including those on rare earths; intellectual property rights and World Trade Organization reforms. They have also agreed to a joint monitoring mechanism going beyond the headline figures recorded by Eurostat and GACC, the Chinese customs database.

EU sets up three months of talks with China over €360bn trade deficit
Europe
BBC Business

Why the expected fight over the North American trade deal never kicked off

Image source, AFP via Getty ImagesByMichelle FleuryNew York business correspondentPublished1 hour agoFor months, policymakers, businesses and trade watchers in Washington had been bracing for a turbulent spring and summer around the future of the USMCA, the trade pact binding the United States, Canada and Mexico. But, to quote former UK Prime Minister Harold Macmillan, "Events, dear boy, events." The war with Iran has dominated Washington's attention, stripping away much of the political heat that was expected to surround the pact's renewal. Instead of a noisy fight over the agreement's future, the USMCA has slipped into the background. The Iran conflict has absorbed the White House's attention and, in practical terms, has become one of the best developments for keeping the trade pact out of the headlines. Earlier this year, there were concerns the US might use the renewal window to force a confrontation with Canada and Mexico, or even threaten withdrawal. President Trump had already cooled on the deal he once signed, raising questions about how aggressively Washington would approach the next phase. But with foreign policy dominating the administration's agenda, the US has taken a more measured approach. It has confirmed it will not extend the agreement for another 16 years, while stopping short of more dramatic action. Part of that restraint reflects a belief inside the administration that the trade relationship has already been reshaped. US Trade Representative Jamieson Greer argues the White House's tariff strategy has fundamentally altered North America's economic ties, changing the balance with Canada and Mexico in ways that make a more confrontational approach unnecessary. But if trade does become more politically driven, the US auto industry could be the biggest loser. The timing is significant. Washington's effort to recalibrate its relationship with China depends in part on closer co-operation with its two largest trading partners. Introducing uncertainty into North America's economic framework risks undermining that strategy. As Arturo Sarukhan, Mexico's former ambassador to the US, put it, in World Cup terms it would be "a huge own goal". As a result, the 1 July virtual meeting between the three countries, once seen as a potential flashpoint, proved subdued. The US has begun formal talks with Mexico and remains in contact with Canadian officials, suggesting negotiations are proceeding without the expected political drama. And with midterm elections approaching, analysts expect that calmer tone to continue. The decision not to renew the pact now starts a 10-year countdown. If no extension is agreed by then, the USMCA will expire. For now, however, annual reviews and steady diplomacy have replaced the brinkmanship many once expected.

Why the expected fight over the North American trade deal never kicked off
Europe
BBC Business

EU border delays 'not bearable' over summer, warns airport boss

Image source, Getty ImagesByKaty Austin, Transport correspondent and Dearbail Jordan, Business reporterPublished2 July 2026, 10:38 BSTUpdated 1 hour agoThe boss of Berlin Airport has said non-EU nationals arriving in the German capital are having to queue for up to two hours under a new digital border system, and warned the situation is "not bearable over the summer". Aletta von Massenbach told the BBC that at one terminal in Berlin, where Ryanair and Wizz Air operate, waiting times can run between "an hour to two hours". Under the EU's new Entry-Exit System (EES) travellers from outside the bloc must register biometric information when entering most European countries, which is checked when they leave. Airports and airlines say the system is not working. The European Commission (EC) says it is willing to offer more support. EES is meant to modernise the EU's system of border control, making it more secure and eventually making travel smoother. While the system has worked fine in some places, there have been regular reports of long waits at passport control, especially at peak times. Some passengers say they have missed flights home because they've been held up in queues. "There are so many sub-systems for each and every member state," she told the BBC's Today programme. "We see that the complexity doesn't really support smooth processing at the border." Technology issues have prevented EES from being used in the UK at the Port of Dover where French border checks take place. A new processing area has 84 kiosks to record fingerprints and photographs but currently is not being used because the technology for the kiosks - the responsibility of the French authorities – cannot be activated. Port of Dover chief executive, Doug Bannister, told MPs on Thursday "time is rapidly running out" to fix it. "We are rapidly heading towards the start of the critical summer period and are yet to receive the assurances we need to avoid what has the potential to be a very challenging six weeks," he said.

EU border delays 'not bearable' over summer, warns airport boss
Europe
BBC Business

Google must pay €4.1bn fine for using Android to 'block' rivals

Image source, iStock via Getty imagesByLaura CressPublished2 hours agoEurope's top court has ruled Google must pay a €4.1bn (£3.5bn) fine handed down for using its Android mobile operating system to block rivals. The European Commission had originally handed out a €4.3bn (then £3.9bn) fine in 2018, but this was trimmed to €4.1 bn in 2022. An appeal brought by the tech giant has now been dismissed. A Google spokesperson said the judgement "fails to recognise" the firm's "significant investment to ensure Android remains open, interoperable and free". "In any event, we adapted our agreements to comply with the initial decision back in 2018 and we remain focused on continued innovation and openness for our users, partners and developers," they continued. It was acknowledged that Google's version of Android does not prevent device owners downloading alternative web browsers or using other search engines. Google's chief executive Sundar Pichai blogged in response, external at the time to the original fine that the decision "rejects the business model that supports Android, which has created more choice for everyone, not less." This is not the first case brought against Google and its parent company Alphabet by the European Commission. In September 2024 it ruled Google must pay a €2.4bn (£2bn) fine handed down for abusing the market dominance of its shopping-comparison service. Then in September 2025, it fined the search giant €2.95bn (£2.5bn), finding it had breached competition laws by favouring its own products for displaying online ads, to the detriment of rivals. In October 2024 a charge was brought against the firm by a Russian court for restricting Russian state media channels on YouTube.

Google must pay €4.1bn fine for using Android to 'block' rivals
North America
CNBC Finance

U.S. auto industry faces increased uncertainty without extension of USMCA trade deal

The U.S. automotive industry is entering a new phase of uncertainty as the Trump administration said the USMCA trade agreement between the United States, Mexico and Canada will not be extended by Wednesday, triggering what could be a yearslong review process or an expiration of the pact if no deal is reached by 2036. The United States-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement, was established during President Donald Trump's first term in 2020, but the administration has soured on the deal that governs roughly $2 trillion annually in goods and services between the three countries. The auto industry represented about 18% of America's trading with its neighboring countries last year, according to industry data, making it one of the key sectors in the discussions. Automakers and others watching the talks are concerned that reopening the deal could create additional trade uncertainty that leads to lower investments and fewer jobs. "If we let this go on for a very long time, it's very painful for everyone," said Diego Marroquín Bitar, a fellow at the Washington, D.C.-based think tank Center for Strategic and International Studies. "That's the last thing that the region needs." There's also concern that the U.S. could pull out of the deal amid aggressive negotiation tactics by the Trump administration involving tariffs, trade and other issues. The United States, Mexico and Canada could have agreed to a 16-year extension by Wednesday but will go to an annual review process instead. U.S. Trade Representative Jamieson Greer in May said the U.S. wants to strengthen North American rules of origin "in a way that enhances U.S. content in these goods" to boost domestic manufacturing. Bitar also said the Trump administration's public discussions have been wide-ranging, touching on nontrade issues such as immigration, crime and other connections, which could make this round of talks more challenging than when USMCA was established. "Everything is on the table. Not just the trade issues," Bitar said. "The more things on the table, the longer it takes to negotiate and the more uncertainty it will generate." The U.S. automotive industry has already dealt with a lot of uncertainty this decade, from pandemic production stoppages and supply chain shortages to ongoing changes to tariffs and other regulations. Now it's bracing for the reopening of USMCA talks. It's not clear whether vehicles that meet compliance measures for the U.S. would continue to face tariffs, which Trump has used aggressively during his presidency as leverage in negotiations and to promote domestic production. "All chips are on the table," Aakash Arora, an automotive expert, partner and managing director at Boston Consulting Group, told CNBC. "But what is clear across all scenarios being discussed is No. 1: higher content from the U.S."

U.S. auto industry faces increased uncertainty without extension of USMCA trade deal
North America
CNBC Economy

World Cup could boost the June jobs report by 40,000, Goldman estimates

The June jobs report on Thursday could be more robust than expected due to a strong kick from the World Cup, according to Goldman Sachs. Nonfarm payrolls are projected to post a gain of 115,000, according to the Dow Jones consensus from economists surveyed, which would be a step down from the sturdy 172,000 growth in May. But Goldman said private data from Homebase, a small business payroll firm, suggests that the "Beautiful Game" has had at least a modest impact on hiring, contributing about 40,000 positions last month. The firm's latest report indicates that while the pace of hiring in June looks down overall, the 11 World Cup hosting cities saw a decline of 1.2% from a year ago, while other cities were off 3.5%. Moreover, Homebase's data showed hospitality hiring up 9.5%, a possible World Cup-related boost. "Our historical analysis suggests that the World Cup could boost payroll growth by 40k in June, and that its impact should be concentrated in the leisure and hospitality, professional and business services, and trade and transportation sectors," Goldman economists Ronnie Walker and Jessica Rindels said in a note. Consequently, Goldman expects total nonfarm payroll growth of 140,000, which would still fall below the pace of the prior month but significantly better than the 20,000 jobs lost in June 2025. Goldman also said the count could be higher because prior June payrolls have showed an upward bias on the first of the three estimates. The initial June count was revised lower in each of the past four years. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

World Cup could boost the June jobs report by 40,000, Goldman estimates
Europe
The Guardian

US supreme court rules Trump can fire leaders of independent agencies

Rebecca Slaughter in Washington DC on 13 July 2023. Photograph: Al Drago/Bloomberg via Getty ImagesView image in fullscreenRebecca Slaughter in Washington DC on 13 July 2023. Photograph: Al Drago/Bloomberg via Getty ImagesUS supreme courtUS supreme court rules Trump can fire leaders of independent agenciesCase focused on White House’s March 2025 firing of Federal Trade Commission member Rebecca Slaughter The US supreme court has ruled that Donald Trump can fire leaders of independent agencies or commissions, ending 90 years of court precedent that curbs executive power. The vote in the case of Trump v Slaughter is 6-3, with dissents from Justices Sonia Sotomayor, Ketanji Brown Jackson and Elena Kagan. The case was focused on the White House’s March 2025 firing of the Federal Trade Commission member Rebecca Slaughter. Trump fired Slaughter over email, telling her that keeping her as a commissioner would be “inconsistent with [the] administration’s priorities”. Upon her termination, Slaughter sued the Trump administration, saying she was fired without cause, and a lower court ruled for her reinstatement. In challenging Slaughter’s suit, the White House argued the court should overturn Humphrey’s Executor v United States, a landmark ruling from 1935 in which the supreme court ruled that the president unlawfully fired a member of the Federal Trade Commission (FTC), limiting the president’s power over independent agencies. “I think by our best count, there are about two dozen agencies with a similar structure to the FTC, multi-member bipartisan board or commission with some form of implicit or explicit removal protection, and a common thread among them is that they all have some important authority in protecting market integrity, making sure economic decisions are being made without fear or favor, and I think they are all at risk,” Slaughter said during a press call on the decision on Monday. Slaughter noted that the supreme court also ruled on Monday to block Trump’s move to fire the Federal Reserve governor Lisa Cook. Slaughter added it was “very difficult for me to reconcile Cook and Slaughter decisions in that somehow Wall Street is special and gets special treatment”. “Today, this Court undoes centuries of political practice and concludes that all three branches of Government have been acting in open defiance of the Constitution all this time. Its conclusion is wrong,” wrote Sotomayor in her dissent, joined by Kagan and Jackson. “The text of the Constitution, along with its history, the longstanding practices of the political branches, and the precedents of this Court, make clear that Congress may limit the causes for which the heads of Commissions like the FTC can be removed by the President,” they continued. “In holding otherwise, the Court gives the President a power unknown even to the English Crown against which the Founders revolted, elevating him above his once coequal branches by transforming a duty to take care that the laws be faithfully executed into a license to act in defiance of those very laws.” The FTC is tasked with enforcing consumer protection and anti-trust laws. The agency is structured with five bipartisan commissioners, and no more than three can come from the same party. Congress placed restrictions on the hiring and firing of commissioners in an effort to insulate the agency from partisan politics. The Trump administration asked the court of appeals to put the ruling on hold while it appealed, but was denied.

US supreme court rules Trump can fire leaders of independent agencies