International News 02 July 2026
-
Germany’s Manufacturing Activity Improves in June as New Orders Return to Growth
Germany’s manufacturing sector recorded modest growth in June, supported by a slight increase in production and a recovery in new orders. According to final data compiled by S&P Global, the country's Manufacturing Purchasing Managers’ Index (PMI) rose to 50.3 in June from 50.1 in May, slightly exceeding the preliminary estimate of 50.0. A reading above 50 indicates that manufacturing activity is expanding. Phil Smith said many German manufacturers continue to rely on backlogged orders to sustain production, although this source of demand is unlikely to support growth over the long term. Encouragingly, he noted that new orders returned to growth in June, albeit at a modest pace, suggesting that underlying demand may be beginning to recover and providing cautious optimism for the sector's outlook.
Microsoft Reportedly Plans New Round of Layoffs as AI Spending Reshapes Priorities
Microsoft is reportedly preparing another round of layoffs affecting fewer than 2.5% of its global workforce, with the announcement expected as early as next week. According to a Business Insider report cited by Reuters, the job cuts could impact thousands of employees across multiple divisions, including sales, consulting, and the Xbox gaming business. Reuters noted that it was unable to independently verify the report, while Microsoft declined to comment outside normal business hours. Based on the company's latest filing with the U.S. Securities and Exchange Commission, Microsoft employed approximately 228,000 full-time workers as of June 30, 2025, meaning a reduction of less than 2.5% could affect more than 5,000 employees. The reported restructuring comes as major technology companies continue to reduce operating costs while investing heavily in artificial intelligence infrastructure. Earlier, Bloomberg News reported that Microsoft's Xbox division was also planning significant workforce reductions alongside cuts to marketing budgets and other expenses, following recent global price increases for Xbox consoles.
Ukraine Strikes Russian Oil Refinery and Missile Facility in Long-Range Offensive
Ukrainian President Volodymyr Zelenskyy said Ukrainian forces had carried out long-range strikes on a Russian oil refinery in Ufa and a strategic military-industrial facility in the Penza region. The refinery, located more than 1,300 kilometers from the front line, was reportedly hit for the second time as part of Kyiv’s strategy to target critical Russian infrastructure deep inside the country. In a post on X, Zelensky described the attacks as a "fair response" to Russia’s continued military actions against Ukraine. Zelensky also said Ukrainian forces struck a defense manufacturing facility in Penza, approximately 600 kilometers from the battlefield. According to Ukraine’s General Staff, the facility is part of Roscosmos and produces sensors for cruise and ballistic missiles, avionics for fighter aircraft, and equipment for reconnaissance satellites. In addition to the strikes on industrial targets, Ukrainian forces reported attacks on two bridges in the Russian-controlled regions of Donetsk and Luhansk, as well as a key logistics route in Donetsk, in an effort to disrupt Russia’s military supply lines.