Israel’s election ends in a deadlock, leaving coalition math to decide power
Early projections after polls closed showed no clear winner between Prime Minister Benjamin Netanjahu and challenger Gadi Eisenkot, according to ZDF. Netanjahu says he still expects to govern and is pressing for a strong right-wing government. A deadlock moves power to the smaller parties, whose votes decide who forms a coalition. Their price is usually ministries and budget lines, so bargaining over those could last weeks.
Energy costs are now reaching shop prices, and ifo expects inflation above 3%
The ifo institute, a Munich-based economic research body, reports that its price-expectations index (the share of firms planning price rises, balanced against cuts) rose to 22.7 in September from 21.4 in August. Its economist Timo Wollmershäuser expects inflation to climb above 3% in the coming months. Fuel and heating oil have already risen. Utilities are expected to raise power and gas prices in winter. Crude prices rose again after the blockade of the Bab al-Mandab strait. Gas and electricity prices hit their highest level since late 2022 in mid-September (ifo). Firms with pricing power pass costs on, while households and energy-intensive manufacturers absorb them. A rise like this also complicates any ECB (European Central Bank) case for lower rates.
Merz travels to Asia to cut reliance on Chinese raw materials
Chancellor Friedrich Merz is touring Asia to find new supply partners. Politico describes the trip as a possible template for reducing dependence on Chinese raw materials. Politico also says the trip may speed up deliveries of Japanese Patriot missiles to Ukraine. German industry stands to gain from supply deals that diversify sourcing.
US–Canada trade talks speed up, with no concessions yet
Washington and Ottawa have stepped up talks over the past week, but neither has offered concessions, Politico reports. Frequent meetings alone don’t signal a deal.
Researchers call for climate change to be declared a global health emergency
Nearly 150 researchers from more than 30 countries want the declaration, DW reports. They cite more than half a million heat deaths in 2023 alone. A formal emergency label could shift health-budget priorities toward heat and drought preparedness.
Non-obvious angle: EU prosecutors still have questions on Pfizer vaccine talks
Politico reports little visible progress in the European Public Prosecutor’s Office (EPPO) probe into von der Leyen’s Covid vaccine negotiations with Pfizer’s chief executive, Albert Bourla. The open file keeps pressure on how Brussels runs future joint health purchases.
Catch the next Gist for the continent’s moving pieces.
