Europe bulletin: Google bets £5B on UK AI, Thyssenkrupp weighs Jindal bid

A day dominated by economic manoeuvres, industrial shakeups, and geopolitical calculations saw Google commit billions to Britain’s AI future, UK labour market data hold steady, Germany’s Thyssenkrupp entertain a takeover bid from India’s Jindal, and Brussels postpone its next round of sanctions on Russia amid US pressure.

Google to invest £5 billion in UK AI economy

Alphabet-owned Google said it will invest £5 billion ($6.8 billion) over two years to bolster Britain’s artificial intelligence infrastructure and research ecosystem.

The announcement, made on Tuesday, underscores the UK’s positioning as a hub for advanced AI development through projects spanning health care, science and Google’s DeepMind unit in London.

The investment comes just ahead of US President Donald Trump’s state visit to Britain, where he is expected to announce a swathe of economic deals.

Trump will be joined by US tech leaders, including Nvidia’s Jensen Huang and OpenAI’s Sam Altman.

For Prime Minister Keir Starmer’s Labour government, the announcement offers a timely boost to its economic agenda, which has put AI services and data centres at the heart of its growth strategy.

But critics argue that tax policies still hamper homegrown firms from scaling up.

UK unemployment steady, wage growth eases

The UK unemployment rate held at 4.7% in the three months to July, according to data from the Office for National Statistics.

The figure was unchanged from the prior period and in line with expectations.

Wage growth showed signs of cooling. Average earnings excluding bonuses rose 4.8%, down from 5% previously.

Total earnings growth, including bonuses, came in at 4.7%, also matching forecasts.

The labour market softened further in August, with payroll employment down 127,000 from a year earlier and vacancies slipping by 10,000 to 728,000.

Economists said the figures reflect a gradual slowdown in hiring as businesses adjust to tighter financial conditions.

Thyssenkrupp receives Jindal bid for steel division

In Germany, Thyssenkrupp AG confirmed it had received a takeover approach from India’s Jindal Group for its struggling steel division.

The non-binding offer will be carefully assessed, the company said, with attention to long-term viability, jobs and the green transition.

The steel unit, once a symbol of German industrial power, has been weighed down by high energy bills, pension liabilities and persistently weak steel prices.

Previous suitors have floated “negative bids” to reflect the scale of obligations.

Shares in Thyssenkrupp surged as much as 7.9% on the news. The stock has tripled this year, fuelled by hopes of restructuring gains and Europe’s booming defence sector.

EU delays Russia sanctions after US push

The European Union has reportedly postponed its 19th package of sanctions against Russia, originally due on September 17, after pressure from Washington to tighten the measures further.

Bloomberg and Politico reported that the Trump administration wants European partners to fully cease Russian oil purchases before unveiling its own sanctions.

The US is also said to have urged G7 members to impose tariffs of 50–100% on Chinese and Indian imports of Russian oil.

EU officials are now working with G7 counterparts to align positions, with a fresh sanctions package expected within weeks.

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