Damned If I Do, Damned If I Don’t!                       28 August 2026

The latest Cushman & Wakefield Core’s H1 2026 report shows that the residential market is set to post high figures, that were last seen eighteen years ago in 2008, (at the time of the GFC); in Q2, 13.22k residential units were handed over. The leading locations for handovers were:

• Apartments
  • Crest Grande                                       Sobha Hartland                      965 units
• • Skyhills Residences 1                         Dubai Science Park                 635 units
  • City Tower                                          Sheikh Zayed Road                 608 units
• Villas
  • Malta 1                                              Damac Lagoons                      760 units
• • Townhouses – phases 1 – 3              Jebel Ali Village                      614 units
• • Costa Brava 1                                     Damac Lagoons                     555 units
  • Elora at The Valley                             Emaar Properties                   430 units

With just over 10k units handed over in the three months to March 2026, along with Q2’s 13.22k and an estimated 32k expected to be handed over in H2, total 2026 deliveries could top 55.6k. Although it is expected that there will be 60k units handed over in 2027, the three caveats – supply chain constraints, contractor capacity pressures and softer market conditions – may slow deliveries down. Furthermore, the largest commercial real estate brokerage in the country has indicated that although there is a massive pipeline, to cover the next four years, only 35.4%, (186k), of the scheduled 525k target, have exceeded 20% construction headway. The study talks about actual completions falling well short of scheduled targets, and if this were to occur, the arrival of new supply will be staggered, causing a more balanced market and healthier future absorption levels going forward.

Indeed, the report noted that residential launches slowed markedly in H1, with apartment launches down by 58% and villa launches by a high 78%. Even before the regional crisis started on 29 February, launch activity had dipped, with the market entering a more measured phase but gained some pace in Q2 with a number of developers deciding to defer further plans. However, those projects that did come to the market in Q2 were largely focussed on the mid-market and end-user segments, with the supply curve more in tune with underlying demand, reflecting what the report described as a more disciplined approach to aligning new supply with underlying demand, as pricing held largely steady. No launches indicate no inventory entering the supply chain in 2029 and beyond so any slowdown will impact on future off-plan transaction volumes in the near term.

According to Bayut, there has been a movement in how and where the emirate’s wealthier homebuyers want to buy their deluxe residences. It appears that they are focussing on factors such as privacy, limited inventory, exclusivity, waterfront living, community, wellness amenities and long-term value.  Dubai’s leading property website sees Palm Jumeirah remaining among the most searched communities for ultra luxury apartments and villas, along with Bluewaters Island, Emirates Hills, District One, Jumeirah Bay Island and Al Barari. Although the likes of Emirates Hills are still seen as trophy assets, where selectivity has become increasingly important, particularly in communities where future supply is limited. There is stronger interest in locations where the properties are ready to move in or off plan which can be handed over within six months. There is a marked increase in buyers looking for the overall lifestyle of a property, rather than just one standout feature.

According to Colliers, Dubai homebuyers and tenants saw some relief in Q2, as property prices and rents eased on the quarter, a sure sign of a market shift towards a more balanced market after several years of robust growth; prices for all types of residential units were, on average 3% lower with apartment rents down 4% and villas/townhouses – 2%. Colliers’ view of the market is that affordability is increasingly influencing where people choose to live, and that a continued shift from renting to homeownership and rising rental inventory are also moderating tenant demand. Another factor driving the retail market is the Dubai Land Development’s recent introduction of Flexi Rent initiative, allowing participating landlords to offer monthly, quarterly and semi-annual rental payment plans. Colliers sees 2026 deliveries to reach 68.25k by the year end after only 11.65k units (9.20k apartments/2.45k villas – a 79:21 ratio). That means, another 56.60k residential units are scheduled for completion by the end of 2026. (This is almost in line with the Cushman & Wakefield Core forecast of 55.6k mentioned above).

Dubai’s property market opened Friday with two large villa transactions, in the Burj Khalifa area, worth a combined US$ 326 million – a sale valued at US$ 198 million, and the other US$ 128 million. The first sale was a villa of 379k sq ft, equating to US$ 522 per sq ft, and the other 379k sq ft, equating to US$ 339 per sq ft. Early Friday trading saw Dubai property sales reaching US$ 354 million, across one hundred and eighty-five transactions. Together, the two deals accounted for some of the largest transactions recorded at the start of Friday’s trading, while mortgage deals totalled US$ 186 million from forty-four transactions. Gift transactions were valued at US$ 5 million across thirteen deals.

SKY LEVEL 1, by Object 1 is located in District 11 of Jumeirah Village Circle and comprises four hundred and twenty units, and located two minutes from Circle Mall and within reach of leading schools, retail destinations and lifestyle landmarks, including Dubai Hills Mall, Mall of the Emirates and Palm Jumeirah. The development features a striking structure composed of two basement levels, ground floor, five podium levels, office floors, and thirty-five residential floors, creating a dynamic mixed-use environment. SKY LEVEL 1 integrates smart features into daily residential life, with a lifestyle deck featuring a Sky Infinity Pool, a panoramic sky deck with sun loungers and a Sky Observation Deck equipped with digital telescopes. The development also sees an AI-powered Smart Wellness Zone, where an intelligent Smart Mirror provides personalised fitness experiences through real-time movement analysis, and a dedicated children’s amenities, including a Digital Colouring Wall that transforms children’s drawings into interactive digital experiences. Completion is slated for Q2 2029.

A three-company consortium – Japan’s Mitsubishi Heavy Industries, its Dubai-based subsidiary MHI Mobility Engineering Services, and Indian conglomerate Larsen and Toubro Limited – has been awarded a contract by Dubai Aviation City Corporation. Mitsubishi Heavy and its subsidiary will handle the design, procurement and testing of the system’s one hundred and sixty-five vehicles and its signalling technology, along with overall system integration, while L&T will be responsible for designing, procuring, testing and constructing the remaining subsystems on site. The agreement is for an automated people mover system for the first phase of Al Maktoum International Airport’s development – spanning fifty km, and connecting nine stations, making it the world’s largest airport transit system; the current leaders are the eight km APM Skylink system at Dallas Fort Worth International Airport and The Plane Train at Hartsfield-Jackson Atlanta International Airport, carrying around ninety-one million passengers annually. Completion is scheduled for December 2031.

Emirates airline is revamping its frequent flyer programme, Skywards Miles, from next year, which will introduce, inter alia, Skywards Miles remaining valid for three years from the date they were earned and will only apply to Miles earned from 01 June 2027 onwards. The programme, one of the largest in the world, has more than thirty-eight million members, with 78k being added every week. Since its inception in 2000, more than four hundred and fifty billion Miles have been redeemed for flight rewards and upgrades. The member thresholds are:

• Silver                                25k Tier Miles or twenty-five qualifying flights
• Gold                                  50k Tier Miles or fifty qualifying flights
• Platinum                           150k Tier Miles, with at least one flight in First or Business Class

(Under a temporary promotion, ending this Monday, members can retain their current membership by reaching just 80 per cent of the usual Tier Miles or qualifying flights requirement).

Following one of its “most challenging operating environments”, in H1, Dubai International welcomed 31.5 million guests; in Q2, the numbers totalled thirteen million – 31.3% lower, compared to the same period in 2025. However, by June, traffic at five million was quickly returning to normality being 42.9% higher than April’s 3.5 million guests – an indicator that operations were picking up. It is reported that local airlines, Emirates and flydubai, are now at 90% capacity. H1 aircraft movement was 32.1% lower, on the year, at 150.60k, (Q1 – 88.10k and Q2 62.5k). For cargo, H1 volumes were 751.34k, down 28.7% on the year; Q1 cargo reached 399.62k and Q2 351.72k.

In H1, the Dubai Chamber of Commerce registered 7.58K new Indian companies – a 15% hike in numbers to 85.84k active Indian companies. A split of the total sees the three main sectors being trade & service, real estate/leasing/business services and construction accounting for 45.0%, 27.3% and 19.0% of the total respectively. India is the UAE’s second largest trading partner, with 2025 non-oil bilateral trade coming in on US$ 60.63 billion, 15.0% higher on the year. In the decade to 2025, the emirate attracted Indian investments of around US$ 8.80 billion, including US$ 2.29 billion in foreign direct investment last year. In comparison, Dubai-based companies invested US$ 9.29 billion across one hundred and forty-seven projects in India, creating 55.27k jobs in the ten-year period. At a recent meeting in India, the President and CEO of Dubai Chambers Mohammad, Ali Rashed Lootah, underlined the importance of the UAE-India Comprehensive Economic Partnership Agreement (CEPA), which came into effect four years ago in May 2022.

Abdulla bin Touq Al Marri, Minister of Economy and Tourism, chaired a meeting with BRICS members adopting the Jaipur Declaration on tourism cooperation whilst backing. plans to strengthen tourism cooperation between members. The declaration focused on four key areas – AI, skills development, sustainable/responsible tourism, and making travel between member countries easier. The UAE will also support the proposed BRICS Tourism Solutions Exchange Platform, designed to allow member states to share expertise, technology solutions, training opportunities and successful tourism initiatives. The UAE Minister also added that tourism plays an important role in attracting investment, supporting economic growth and creating jobs, as well as strengthening links between countries and communities.

An agreement signed by Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, and Maxim Reshetnikov, Russian Minister of Economic Development, and aiming to boost bilateral trade in services and investment, has officially come into force. The Trade in Services and Investment Agreement has the triple aims to:

• expand market access for services
• strengthen protections for investors
• create new opportunities for businesses in both countries

This agreement, signed in August 2025 by President His Highness Sheikh Mohamed bin Zayed, when visiting Russia, covers high-growth sectors including fintech, healthcare, transport, logistics and professional services, and aims to reduce barriers to market entry and facilitate the movement of professionals. Non-oil bilateral trade between the UAE and Russia topped US$ 20.4 billion in 2025 – 77.7% higher on the year.

Issued by the Telecommunications and Digital Government Regulatory Authority, a ten-year licence has been granted to Elon Musk’s Starlink company to provide internet services in the UAE. It authorises Starlink to establish, operate and manage a public satellite telecommunications network, alongside the provision of satellite broadband internet services in the UAE. Services will cover individuals, businesses and government entities, as well as satellite connectivity for the maritime and aviation sectors. It adds a satellite layer to the UAE’s national digital infrastructure ecosystem, complementing terrestrial fibre-optic and 5G networks.

Global Financial Centres Index 39, published in March 2026 by Z/Yen Group, has seen Dubai climb four places to seventh in its ranking, as it attracted a record US$ 48.31 billion in foreign direct investment last year. The UN Trade and Development World Investment Report 2026, posted FDI inflows into the UAE increasing by 6.0%, making it the world’s ninth-largest recipient of foreign investment, with the emirate still second globally when it comes to greenfield FDI projects, with 1.56k announced projects.

Industry executives say the investment surge reflects broader structural changes in the UAE economy. Dubai’s financial sector has expanded in tandem with rising investment flows; this is illustrated by the fact the Dubai International Financial Centre posted a 30% surge in H1 registered companies to 10.02, including:

• regulated financial firms               up 16.0% to 1.13k
• emerging sectors                          up 39.0% to 1.93k across AI, fintech and innovation

Last year, there were fifty-eight insurance companies operating in the UAE in 2025, including;

• twenty-two national traditional insurers
• ten national takaful companies
• twenty-six foreign insurance branches

Total profits in 2025 were 53.8% higher at US$ 1.09 billion, with the Central Bank attributing much of the increase to higher net investment income. There was also a jump in invested assets to US$ 26.27 billion, with securities/debt instruments accounting for US$ 11.91 billion of the total and cash/deposits US$ 7.36 billion. Driven by an uptick in higher health, property and liability insurance business, the UAE insurance sector posted a 14.9% jump in gross written premiums to US$ 20.38 billion.  There was double digit growth in premiums of:

• property and liability insurance                                up        14.1 %            to US$ 9.92 billion
• health insurance                                                        up        16.3%             to US$ 8.17 billion     
• life insurance and fund accumulation                       up        12.1%             to US$ 2.29 billion                                                     

The main driver behind the growth was the January 2025 introduction of mandatory basic health insurance for private-sector employees and domestic workers across the emirates. Insurers also increased their invested assets by 13.5 % to US$ 26.27 billion, equivalent to 58.4% of their total assets. Securities and debt instruments accounted for US$ 11.91 billion of invested assets, while cash and deposits reached US$ 7.36 billion. The number of licensed insurance-related professions rose 4.0%, to five hundred and fifteen. The total number of insurance policies nudged 0.6% higher to 17.3 million in 2025, whilst The Central Bank indicated that health insurance policies rose by 26.1%, offsetting declines in some other insurance categories. There was an 11.0% rise in payment claims, at US$ 12.59 billion, along with health, property/liability, marine and fire all rising by 15.1%, 13.8%, 34.7% and 27.4%.

The DFM opened the week on Monday 24 August on 5,856 points, and having gained two hundred and seventy-nine points (5.0%), the previous four weeks, gained seventeen points, (0.4%), to close the shortened week yesterday, (because of the Prophet Muhammad’s Birthday), on 5,883 points. Emaar Properties, US$ 0.14 lower the previous fortnight, nudged up US$ 0.01 to close on US$ 3.00 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.74, US$ 8.41, US$ 2.02 and US$ 0.38 and closed on 27 August at US$ 0.74, US$ 8.45, US$ 1.99 and US$ 0.38. On 27 August, trading was at one hundred and fifty-five million shares, with a value of US$ one hundred and thirty million dollars, compared to one hundred and eighty million shares, with a value of US$ one hundred and fifty-five million dollars, on 21 August. 

By 4pm GMT 28 August 2026, Brent, US$ 19.35 (25.8%) higher the previous three weeks, shed US$ 5.01 (5.3%), to close the week on US$ 89.38. Gold, US$ 558 (13.8%) higher the previous three weeks, gained US$ 19 (0.4%), to end the week’s trading at US$ 4,626 on 28 August. Silver was trading at US$ 68.95 on 21 August – and closed today, 28 August, US$ 0.77 (1.1%) higher on the week at US$ 69.72.

Last Tuesday, and after hitting its highest level in three months, gold prices retreated down 0.2% to US$ 4,640. Among other ​metals, spot silver, platinum and palladium all dipped by 1.3% to US$ 68, by 1.2% to US$ 1,836 and by 1.0% to US$ 1,345.

February 2019 was the last time that Venezuelan oil production topped 1.23 mbd – the level reached this week.  The country’s interim president, Delcy Rodriguez, noted that, “in the midst of the emergency, our oil production has not stopped​​​”.

A federal trial over allegations Meta’s products harmed children has ended with the tech company having to pay up to US$ 18 billion, (equating to almost four months of its profits), over the next decade, and to strictly limit how teenagers use Facebook and Instagram. The settlement, under an agreement, with nearly all US states, to resolve claims it designed those social media platforms to addict children. Meta agreed to make maximum payments of about US$ 16.7 billion to forty-seven US states, Washington, DC, Puerto Rico, American Samoa and the Northern Mariana Islands, with California and Texas receiving US$ 2.2 billion and New York US$ 1.1 billion; in a separate settlement, Texas is expected to receive a US$ 1.0 million payout. Meta agreed over the next decade to restrict teenagers’ use of Facebook and Instagram to two hours a day and block all usage from midnight to 6 am, absent parental consent. These limits could be tightened if the social media platforms Snapchat, TikTok and YouTube adopt similar terms. Meta will also disable most push notifications to teenage users during school hours of 8 am to 3 pm and enhance measures to prevent children from accessing age-restricted content. Meta denied wrongdoing in agreeing to settle.

In China’s largest-ever automotive recall campaign, eleven carmakers – including Tesla, (who would recall 2.98 million imported and China-made Model 3, Model Y, Model S and Model X vehicles from 25 September),  Xiaomi, Leapmotor, Xpeng, Zeekr and Lynk & Co – launched software updates and vehicle recalls last Friday as regulators start tightening scrutiny of emergency door-release systems in EVs. Most of the actions, classified as product recalls under Chinese regulations, address concerns that emergency mechanical door release handles may be difficult to locate or operate during emergencies. Nine of the eleven members will install warning labels free of charge to identify the handles, while most will also deploy over-the-air software updates. China is set to ban concealed or ‘hidden’ door handles from 2027, becoming the first country to phase out a design popularised by Tesla and widely adopted by domestic EV makers.

Tesla is recalling 2.74 millionChina-built Model 3 and Model Y vehicles after regulators concluded that detecting a driver’s hands on the steering wheel is not enough to ensure they are watching the road and have therefore introduced the use of the in-cabin cameras to further enhance the driver-monitoring process. The recall, which involves Models 3 and Models Y, built in China between 04 March 2019 and 07 December 2025, becomes effective immediately, will be resolved by a free over-the-air software update.  In 2020, the US posted that its vehicles had previously faced scrutiny in China over in-car cameras and data security. In 2021, the company said China-market vehicles had not activated cabin cameras, amid concerns about how vehicle data could be collected, stored and used. Five years later, it seems that the Chinese regulators are finally tightening up on their advanced driver-assistance systems and began using camera-based supervision in China this year. The US were ahead of China when a December 2023 recall, involving roughly two million Tesla vehicles, saw the company having to enhance safeguards so that drivers remained engaged while using Autopilot. The message is that all Tesla divers will be pushed to be visible, alert and responsive to act

In June, SpaceX, having raised US$ 85.7 billion, in which became the largest initial public offering in history, valuing Elon Musk’s space company at US$ 1.77 trillion. History is about to repeat itself, with Anthropic expected to match or beat the size of that deal, with estimates that it could seek to raise “more than US$ 100 billion” in its IPO; that being the case, the company could be valued at over US$ 2.0 trillion. Amazingly, (and maybe worryingly), that would mean that it would have more than doubled since its US$ 965 billion valuation from its June funding. Founded in 2021 by Dario and Daniela Amodei and other former executives at OpenAI, Anthropic has projected annual revenue of US$ 47 billion but has suffered from difficulties in meeting demand for computing power, amid a shortage of chips and servers. It has also had problems with the Trump administration which broke off its contracts with the firm and designated it a supply chain risk after it refused to grant the military unfettered access to its AI models.

Nvidia’s Q2 revenue surged to US$ 96.0 billion – more than double the Q2 2025; revenue forecast for Q3 was 12.5% higher at US$ 108.0 billion. CEO Jensen Huang commented that “AI has reached its inflection point” and described the infrastructure buildout as going “at full steam.” Q2 revenue beat market expectations and perhaps this is why its share value jumped 4.7% on the news, in after-hours trading. The company’s data centre division accounted for US$ 89.0 billion, (92.3%) of the total – 117% higher on the year. All the major tech giants – including Amazon, Google, Meta and Microsoft – use Nvidia chips to build AI tools and infrastructure. Because of its financial strength in the market, Nvidia has also become a financial backer of all the major tech companies building AI tools and infrastructure, including Amazon, Google, Meta and Microsoft.

However, with around 40% of the US stock market concentrated in ten companies heavily invested in AI Nvidia’s fortunes matter far beyond Silicon Valley. Such an extreme situation on the ten companies owning 40% of the index, and operating mainly in the same sector, does not bode well. Ther contagion of one of these companies performing badly will have a knock-on effect, not only on the other nine but  would surely confirm such market concentration is a danger to the long-term viability of the whole exchange – and perhaps the global economy.

So, it will be in a position to finance its “full stack” AI capabilities, which includes chips, infrastructure and the development and deployment of AI models, Alibaba plans to sell US$ 10.2 billion in a share placement on the Hong Kong exchange. It seems that the sale will comprise seven hundred and ten million ordinary shares at US$ 112.70 a share, equating to a 3.6% discount on its latest market price, and would mark the largest-ever primary follow-on offering by a Hong Kong-listed company. This would also rank as the world’s third-largest primary follow-on share sale this year after offerings from Alphabet and Intel. Its latest financials indicate that Alibaba’s quarterly net profit fell 75%, from a year earlier, as it ramped up its AI-related capital expenditure. Over the past five years, the global AI boom has fuelled staggering capital outlays on infrastructure and data centres, including in the U.S. and China, where the four mega conglomerates – Alphabet, Amazon, Meta and Microsoft – are expected to spend roughly US$ 725 billion in capex this year. Last week, Alibaba reported its Q2 results, noting that almost 50% of its three-year capex had already been spent; it also is expecting payback on AI-related investments within three years.

Shein’s long-awaited Hong Kong IPO should have come a lot earlier, with the news that fast-fashion retailer is going to the market to raise US$ 1.77 billion – some 70% lower than its private-market peak four years ago, with a slower growth outlook set to weigh on investor demand. The company, that sells cheap fashion across one hundred and eighty countries, had been looking at using New York and London for their IPO but its labour problems, intense political opposition and tougher regulation made Hong Kong the natural choice. It will sell two hundred and eighty million shares at between US$ 6.07 and US$ 6.31 per share, valuing it at close to US$ 27 billion at the top of that range. It had been worth US$ 100 billion in 2022 but valued a lot less in the ensuing two years at US$ 64 billion but this significant devaluation came about because of increased tariffs, intensifying competition, increased regulatory compliance and rising costs. It is patently obvious that investor interest has waned, especially in the US and Europe, as the retailer has been badly hit by slowing revenue growth, weaker core earnings and shrinking margins. The final IPO price will be declared this Monday, 31 August, and reports show that three existing shareholders – Boyu, Tiger Global and General Atlantic – are in the game for US$ 383 million worth of shares, equating to 21.6% of the total. Shein has confirmed that about 80% of proceeds will be used to improve its technology and increase its brand and global presence, and that co-founders Sky Yangtian Xu, Maggie ⁠Gu, Molly Miao and Tony Ren will control 90% of Shein’s voting rights.

Another name has been added to the list of parties that could be interested in acquiring Poundland, (a former sister company to Dealz Poland). Indicators show that Modella Capital, part of Hay Wan Group, and owned by Jamie Constable, is being sounded out about its interest. Even though the private equity firm was only founded in 2022, it already has history. In February 2025, it acquired The Original Factory Shop, followed, in June, purchasing the WH Smith high street business, with four hundred and eighty stores and changed its name to TGJones. Three months later, it dived in to get the Irish and UK business of US retailer, Claires, and a month later began a venture with The Entertainer, with it supplying its toys in Hobbycraft and TG Jones stores. In December, it acquired Wynsors. At the start of 2026, both The Original Factory Shop and the UK and Irish sectors of Claires went into administration. Last May, it acquired Flying Tiger Copenhagen and a month later Dealz Poland from Pepco Group, with stores in the Isle of Man and Ireland remaining with the seller, Gordon Brothers.

Plans of the new Hungarian government to clean up the budget and cut its deficit have been thwarted by a combination of the summer weather – and the accompanying drought conditions – along with the ongoing energy crisis. Péter Magyar’s new administration, which had taken over from the sixteen-year contentious rule of Viktor Orbán in May 2026, has confirmed that it would be sticking to this year’s deficit target at 7.5% of GDP. The Finance Ministry added that “the economic situation we inherited, and the costs of the drought and the energy crisis, make it impossible to cut the target any further”.

According to Eurostat, the EU posted a Q2 trade deficit of US$ 25.38 billion – the difference between the import figure of US$ 817.20 billion and the export total of US$ 791.82 – according to figures released by Eurostat; this was the first quarterly trade deficit since Q2 2023. On the quarter, exports increased by 5.4% (US$ 40.64 billion) and imports by 9.9% (US$ 73.83 billion), compared with the previous quarter, largely attributable to tariff tensions. The main drivers behind the quarterly trade results were increases, on the quarter, in the deficit on:

• on energy products                                         US$ 34.70 billion  -US$ 83.03 billion   -US$ 117.73 billion
• raw materials                                                  US$ 1.75 billion     -US$ 9.20 billion     -US$ 10.95 billion
• other manufactured goods                              US$ 0.93 billion     -US$ 9.67 billion      -US$ 10.60 billion
• and reductions in the surplus of:
• machinery and vehicles                                  US$ 1.98 billion          US$ 29.00 billion  US$ 27.02 billion
• other goods                                                     US$ 3.14 billion          US$ 13.51 billion US$ 10.60 billion

On the other hand, there were surplus increases for:

• chemicals                                                     US$ 8.03 billion         US$ 54.85 billion   US$ 62.88 billion 
• food and drinks                                            US$ 0.93 billion          US$ 12.46 billion   US$ 13.39 billion

Overall, exports increased by 5.4% (US$ 40.43 billion) and imports by 9.9% (US$ 73.45 billion) compared with the previous quarter. Exports and imports had been declining since Q2 2025, a trend that halted in Q1. Those declines had been partly attributed to tariff tensions.

There are green shoots pointing to a recovery in the German economy, as its business morale grew more ​than expected in August, at 88.8, 1.1 higher than a month earlier. The Ifo Institute’s Clemen Fuest commented that “despite the renewed rise in energy prices, the ​German economy is recovering”. The country’s Q2 GDP grew by 0.3% on the quarter. On top of that, there had been a stronger return with exports ⁠and industrial production beating expectations in June and expectations in the Ifo ​survey jumping 2.3, on the month, to 89.1 in August.

With the likes of the probability of low storage values ahead of winter, continuing supply disruptions and ongoing maintenance work on Norwegian pipelines, European gas prices rose by more than 4% to US$ 79.84 per MWh. It is estimated that European gas storage facilities are currently at their lowest level in seventeen years being 72% full. The major concern would be for Germany, the continent’s biggest energy consumer, where storage levels are at around 50%.

Reports indicate that three UK airports have been hit by a ‘cyber security incident’ that has impacted up to 8.7 million passengers. The three airports – Manchester, East Midlands and London Stansted – are owned by Manchester Airports Group airports and have witnessed criminal hackers accessing passengers’ contact details, vehicle registrations and postcodes. A ransom, for an unknown fee, has been demanded for the return of the data but this was refused by MAG which posted “at no point has passenger safety or aviation security been compromised” and that the system hacked did not hold customers’ bank or payment details. It also added that the identity of the hackers was known, and the relevant authorities had been informed.

In a belated attempt to improve the UK housing crisis, Andy Burnham has announced a US$ 13.65 billion investment to build seventy thousand social and affordable homes in England over the next decade. Initially, funding has been granted to Greater Manchester, the West Midlands, West Yorkshire, South Yorkshire, North East England, and Liverpool; an additional US$ 8.19 billion was previously announced for London. This is phase 1 of his plan to build three hundred thousand housing units, under the government’s US$ 53.24 billion social housebuilding programme. 60% of these new homes would be for ‘social rent’ – a low-cost government-subsidised rental housing option managed by local councils or non-profit housing associations; it also includes low-cost home ownership. The next tranche of funding would be more focused on council houses – which are usually also classed as homes for social rent. Since Labour returned to power in 2024, homeless figures have continued to rise to record levels, with estimates that some 177.53k children were homeless in temporary accommodation.

Three of the opposition parties – the Conservatives, the Liberal Democrats and the Greens – have come out to criticise the Prime Minister on backing down on a pledge to invest in building council houses; this was after he unveiled the government’s US$ 52.96 billion Social and Affordable Homes Programme to be spent over the next decade. On the campaign trail, earlier in the year, for the Makerfield by-election, Andy Burnham had said, “there’s GBP 39 billion, (US$ 52.79 billion), allocated over a ten-year period [in the Social and Affordable Homes Programme]… I’m saying that should be dedicated to council homes. Let’s not be coy anymore”. To date, his government has so far only announced how some 25% of that money will be spent.

Further disturbing news for Andy Burnham, as he tries to get his feet under the desk at No 10. Jobs website Adzuna has noted that the number of jobs for graduates had, last month, declined by 45.6% to 8.38k, and that competition for jobs had risen, with an average of 2.14 job seekers per vacancy, cf 1.93 in July 2025. It does seem that an increasing number of companies are cutting entry-level roles in favour of AI and trying to reduce rising operational costs. It is no secret that many businesses have still to recover, (and sometimes to ponder), about the national insurance and minimum wage hikes introduced by the former Chancellor, Rachel Reeves. Adzuna had started recording graduate vacancy details in 2016 and, the following year, it had more than 55.8k listed on its website. Its latest data shows vacancies for jobs in travel, teaching and construction in recently moving higher weeks, whilst there were fewer vacancies in the healthcare, nursing, hospitality and logistics sectors.

On top of that, official figures put the UK’s Q1 youth unemployment rate – which covers sixteen-to-twenty-four-year-olds – at 16.2%, with the number of young people not in education, employment or training (Neets) having topped one million. A former government minister, Alan Milburn,, is leading a major review of the youth unemployment crisis, and he had already noted that both the number of entry-level jobs, and the number of part-time jobs traditionally filled by teenagers and students were dwindling. The Prime Minister has already amended the rules on public contracts ensuring that companies, bidding for company work, have to show how they will create jobs and training opportunities. The government had noted that there were more than two hundred and fifty-three thousand more in work, compared to a year ago, and the unemployment level continued to head south. A government spokesperson commented that “we are determined to go further to restore opportunity for young people through our GBP 2.5 billion, (US$ 3.40 billion), youth employment package which will deliver almost one million opportunities to earn or learn.”

On his first overseas trip as Prime Minister, Andy Burnham visited the Ukraine and faced journalists seemingly more concerned about his domestic policies, rather than the Ukraine war with Russia. After he took over the role from the seemingly lethargic and ineffective Keir Starmer, the new incumbent said he would take a “careful approach” to the economy, whilst defending his previously announced cost of living pledges, as funded spending commitments. He has also promised that he would give people breathing space and help with the cost of living, but questions remain over how major policies, such as social care reforms, will be funded, with the government coffers threadbare; indeed, he has little room to manoeuvre come the 28 October budget. To date, he has managed to cap bus fares at US$ 2.72, (GBP 2.00), and cut VAT on electricity, (but not gas), bills by 5% to zero from 01 October 2026. These cuts will be financed by the fact that he has put Digital ID on the backburner, thus saving US$ 2.45 billion (GBP 1.8 billion).

More interesting is that he has refused to rule out any tax increases in the October budget, adding that he “won’t be unrealistic” about the “challenging” state of public finances. When asked if he would raise taxes, he added that he wouldn’t take risks with people’s jobs or their livelihoods or their family finances, and that “I will try to help them in whatever way I can, I have already done some things that will help them”. He was still adamant that the budget would be fully funded, (as per Labour’s 2024 manifesto), and stick to the fiscal rules set by Rachel Reeves. This would mean that to bankroll any new initiative; he would have to find ways to raise taxes or cut spending because in the current environment, there is no room to initiate more borrowing, even though July saw not only a surprise rise in inflation to 2.9%, and a hike in government borrowing. No wonder that Andy Burnham will be thinking Damned If I Do, Damned If I Don’t!