US consumer spending slowed in December, retail sales were flat, and Egypt's parliament approved a cabinet reshuffle focused on economic recovery, while political tensions rose as Donald Trump threatened Iran and a key border bridge. These developments occurred amid severe weather impacting Spain and Portugal.
Retail sales in the US remained unchanged during the December holiday season, according to a report released Tuesday by the Commerce Department, signaling a potential economic slowdown. This followed relatively robust spending in previous months, even as economic sentiment had dimmed, according to BBC Business. The flat sales figures were attributed to a faltering labor market, persistent inflation, and cooling wage growth.
Meanwhile, Egypt's House of Representatives approved a cabinet reshuffle proposed by President Abdel Fattah el-Sisi, as reported by Al Jazeera. The reshuffle, announced on Tuesday, introduced 13 new ministers, including those overseeing key economic portfolios such as housing, higher education, planning, investment, and foreign trade. A new deputy prime minister in charge of economic affairs was also created.
On the international front, tensions escalated as Donald Trump threatened Iran with possible military attacks if Tehran did not meet US demands on nuclear enrichment and ballistic missiles, according to Al Jazeera. In comments to the Israeli outlet Channel 12, Trump hinted at aggressive actions if a deal with Iran was not reached.
Also, Trump threatened to block the Gordie Howe International Bridge between Detroit and Windsor, Ontario, despite Canada having paid for the structure, according to The Guardian. Mark Carney, in response, reminded Trump that Canada paid for the bridge and that the US shares ownership.
Adding to the global news, Spain and Portugal were hit by a third deadly storm in two weeks, as reported by The Guardian. Storm Marta swept across the Iberian peninsula, following the damage and flooding caused by Storms Kristin and Leonardo.
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