The White House is warning of severe economic consequences if Congress fails to pass a funding bill by an October 1 deadline. Far-right House Republicans are demanding deep spending cuts that are almost certain to be rejected by the Democratic-controlled Senate. Also in this edition: France asks its energy firms to sell fuel at cost, and Germany looks to semiconductor production to revive its flagging industrial sector.

There was gridlock in Washington this week as US Republican Kevin McCarthy failed to become House speaker on the first ballot, something that hasn’t happened for a century. It was supposed to be an easy win for the Republican favourite, but he was blocked three times in one day by a small group of rebels from within his own party.