Automotive Electronics Deal: Varroc Engineering and TOLYY signed a strategic pact to localise and supply digital cockpit display modules, with TOLYY providing integrated screen modules (panels, backlights, touch, enclosures, control units) and Varroc handling integration, validation and manufacturing for passenger and commercial programmes across India, Europe and North America. Industrial Investment in France: Stellantis confirmed a €1bn investment in France to develop a new platform and build three new electric or hybrid Peugeot models at Mulhouse, aiming to cut costs by 20% and strengthen competitiveness versus Chinese rivals. Services Pressure in Italy & France: Italy’s services input costs hit a 40-month high in May as Middle East conflict pressures feed into inflation, while France’s services sector contracted at the fastest pace since late 2020, with weaker demand and rising costs pushing composite activity to its lowest in 28 months. Trade & Tariffs Shock: The US proposed new forced-labour tariffs—10% on 16 partners (including the EU, UK, Canada and Mexico) and 12.5% on others—raising the stakes for European manufacturers exposed to US supply chains. Energy & Supply Chain Risk: EBRD cut Türkiye’s growth forecast for 2026/27, citing higher energy import costs, inflation and Middle East-linked disruptions to tourism and manufacturing value chains. Digital Sovereignty vs Power Demand: The EU’s draft “Cloud and AI Development Act” faces NGO pushback over data-centre electricity and water use, as Europe tries to scale AI infrastructure. Manufacturing Tech Push: Quobly raised €115m Series A to industrialise silicon-based quantum computers, targeting a first commercial system via cloud by end-2026.