Reuters Daily Briefing

"How will Trump's actions reshape NATO?"

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Daily Briefing

By Kate Turton

Hello. Yemenis take to boats to flee as the Middle East war spreads, Trump says EU pitch to Canada would be a 'hostile act', and in Silicon Valley an AI data center boom meets local resistance. Plus, Trump’s pressure on NATO is reshaping Europe’s defenses. Will it break the alliance?

Today's Top News   People fleeing from clashes between Houthi fighters and Saudi-backed Yemeni government forces. International Organization for Migration/Handout via REUTERS Middle East Yemenis took to boats in the Red Sea to escape fighting between Iran-backed Houthi fighters and Saudi-backed forces, as the spreading Middle East war created new threats to global oil supplies. A UN fact-finding mission on Iran said it had reasonable grounds to believe the US was behind two military strikes on a school and sports facility in Iran in February, and that ‌these constituted war crimes. In other news Trump has threatened to take action against the EU if it moves forward with a proposal for Canada and Europe to forge a new alliance. Julia Payne breaks down the Canadian pivot to Europe on the Reuters World News podcast.  European Commission President Ursula von der Leyen proposed ‌a social media ban for children under 13 and restricted access for those between 13 and ⁠15 as she warned about the dangers of online services to minors. Britain's King Charles will urge leading artificial intelligence executives to ensure the technology remains "firmly in the service of humanity" when he meets them in Scotland, as warnings ‌mount about AI's potential risks. The US Congress should pass legislation by the year-end setting AI safety standards, as an immediate first step toward broad guardrails for an industry whose rapid development has alarmed tech CEOs and the public alike, US Senator Mark Warner told Reuters in an interview. When the far-right anti-immigrant Sweden Democrats won a record one-fifth of the vote in a 2022 election, Viking rock player and party leader Jimmie Akesson led supporters in an impromptu celebratory conga. On Sunday, the dance floor was largely empty.

Business & Markets   A creation by Pharrell Williams for fashion house Louis Vuitton during Men's Fashion Week in Paris, France. REUTERS/Gonzalo Fuentes/File Photo In a June court filing, luxury-goods giant LVMH forcefully denied it had ever tried to acquire shares in rival Hermès from that company’s founding-family heir Nicolas Puech, who alleges he was fleeced of his 6% stake – now worth billions – through schemes involving his late wealth manager. Investors are gaining more confidence in the Federal Reserve's inflation-fighting backbone, but uncertainty about how far it will raise interest rates to keep prices in check is likely to cause volatility for stocks and bonds in the weeks ahead. Trump lashed out after his newly appointed Fed chief Kevin Warsh backed a rate hike. In Silicon Valley's biggest city, residents and environmental groups are organizing against a wave of proposed data center projects. San Jose officials had courted the projects in the hopes of  positioning the city as a hub for AI infrastructure. Huawei's Eric Xu said Chinese ‌AI developers may not yet be advanced enough to experience the safety risks reported by leading US firms, arguing they should continue developing more powerful models while balancing innovation against risk. Brent crude is soaring above $100 a barrel, but countries and companies look surprisingly resilient. In this Viewsroom podcast, Breakingviews columnists debate whether the calm can hold, if pipeline workarounds will work and why this particular shock may be different.

Will Trump's pressure on NATO break the alliance?   At the NATO summit in Ankara in July, Trump praised the “tremendous love” of allies – after criticizing them for months. REUTERS/Jonathan Ernst US President Donald Trump's confrontation with NATO hasn’t led to a major US withdrawal yet. But a big troop cut remains an option, Pentagon sources say, and allies are preparing for a future less dependent on Washington. Read our special report

And Finally... A map of estimated nerve-fiber pathways in the brain of an experimental "xenocortical" mouse. Sergiu Pasca Lab/Stanford University/Handout via REUTERS  Scientists have transplanted laboratory-grown human brain tissue into bioengineered mice in what they call an important advance for studying human brain development that may speed research into the causes and mechanisms of devastating disorders such as profound autism, epilepsy, cerebral palsy and schizophrenia. Read more

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