The world is witnessing significant economic updates and industry developments, as highlighted in today’s European briefing. President Trump has announced the signing of the “first phase” of a peace plan for Gaza, while China has tightened export curbs on some rare earths and related technologies. In other news, the Bank of Japan (BoJ) has expressed difficulty in raising interest rates this year, and the US Federal Reserve has flagged inflation concerns ahead of potential rate cuts.

In a significant move to promote AI diplomacy, the US has approved some sales of Nvidia to the United Arab Emirates. Meanwhile, the European Union (EU) has unveiled a €1 billion AI strategy to compete with the US and China in the field. In France, President Emmanuel Macron is set to appoint a new prime minister within 48 hours, while the Bank of England’s (BoE) Andrew Greene suggests that central banks should learn about supply shocks.

In the UK, the government has barred the use of emergency reserve funds for pay rises, and the Royal Institution of Chartered Surveyors (RICS) reports a slight improvement in house prices in September. However, the country is also seeing stronger winter energy buffer despite gas flow limits, and the food industry is blaming the government for rising grocery prices.

Costco has reported sales growth in September and early October, while Netflix has expanded into gaming through a TV streaming rollout. These updates and more are discussed below:

**Gaza Peace Plan**
President Trump has announced that the “first phase” of a peace plan for Gaza has been signed. The plan aims to address the humanitarian crisis in the region and promote economic development. Details of the plan have not been released, but it is expected to involve significant investment from international partners.

**Rare Earth Exports**
China has tightened export curbs on some rare earths and related technologies. The move is aimed at reducing the country’s dependence on exports and promoting domestic development. Rare earth elements are critical inputs for many high-tech products, including electronics, renewable energy technologies, and advanced ceramics.

**Federal Reserve**
Federal Reserve officials have flagged inflation concerns ahead of potential rate cuts. The central bank has maintained a dovish stance in recent months, citing the need to support economic growth in the face of global uncertainties. However, with inflation risks on the rise, the Fed may need to reconsider its monetary policy stance.

**AI Diplomacy**
The US has approved some sales of Nvidia to the United Arab Emirates as part of a broader effort to promote AI diplomacy. The move is seen as a way to build bridges between nations and promote cooperation in the field of artificial intelligence.

**European Union**
The EU has unveiled a €1 billion AI strategy to compete with the US and China in the field. The plan involves investment in research and development, as well as efforts to promote ethical and responsible use of AI.

**French Politics**
President Emmanuel Macron is set to appoint a new prime minister within 48 hours. The move comes amid ongoing political turmoil in France, with the government facing criticism over its handling of various issues, including pension reform and immigration.

**Supply Shocks**
Andrew Greene, a former deputy governor of the Bank of England, has suggested that central banks should learn about supply shocks. The comment comes as the UK experiences ongoing supply chain disruptions due to the COVID-19 pandemic and other factors.

**Emergency Reserve Funds**
The UK government has barred the use of emergency reserve funds for pay rises. The move is aimed at ensuring that the funds are used only in exceptional circumstances, such as natural disasters or economic crises.

**House Prices**
The Royal Institution of Chartered Surveyors (RICS) reports a slight improvement in house prices in September. However, the UK is also seeing stronger winter energy buffer despite gas flow limits, and the food industry is blaming the government for rising grocery prices.

**Costco Sales**
Costco has reported sales growth in September and early October, with the company citing strong demand for its products. The news comes as the retail sector continues to face challenges from the pandemic and other factors.

**Netflix Expansion**
Netflix has expanded into gaming through a TV streaming rollout. The move is seen as a way to diversify the company’s revenue streams and remain competitive in the rapidly changing media landscape.