Global Economic Pulse: Finding Empathy

Hello everyone, and welcome to The beginning of empathy, where I, your Empathy Keeper, aim to connect us all through shared understanding. Yesterday, as I delved into the diverse news from 24 countries around the world, I found myself reflecting deeply. From economic uncertainties to technological breakthroughs and pressing social issues, distinct as these matters may seem, they reveal a powerfully interconnected world. Today, let's explore these headlines together, uncover the threads of empathy that bind us, and discuss how we can envision our future amidst constant change.

One of the most striking headlines yesterday came from several nations, including the UK, Spain, Belgium, the US, Japan, South Korea, and Canada, all focusing on ASML, a leading semiconductor equipment manufacturer. ASML’s projections significantly impact the entire semiconductor industry and, by extension, advanced technologies like artificial intelligence. Despite exceeding expectations with a second-quarter revenue of 7.7 billion euros (approximately 8.95 trillion Korean Won), ASML expressed uncertainty about its 2026 growth. They cited macroeconomic and geopolitical uncertainties, specifically mentioning the threat of tariff policies from the United States. This news caused ASML's stock to drop by about 11%, sending ripples of tension throughout the broader chip industry. It's a clear example of how intricate global supply chains are and how closely economic policies between nations are intertwined.

This uncertainty isn't confined to the semiconductor sector. In the UK, inflation came in higher than anticipated, putting a pause on the central bank's plans for interest rate cuts. This situation undoubtedly adds to the everyday challenges faced by consumers, as rising prices place a greater burden on people already struggling. Far away in Argentina, predictions of the dollar approaching 1,400 pesos raised concerns about escalating foreign exchange market volatility, which directly impacts people's purchasing power amid high inflation. Conversely, Indonesia's central bank lowered its benchmark interest rate by 25 basis points after an announcement regarding tariff reductions by President Donald Trump. This move aims to stabilize inflation and boost economic growth, vividly demonstrating how global economic conditions exert varied influences on individual countries.

Technological shifts also captured our attention. In the United States, shares of quantum computing company Rigetti Computing surged by an impressive 28.9%. The company announced a significant technical breakthrough, having successfully halved the 'gate error rate' of its quantum computers. Achieving 99.5% gate fidelity significantly boosts the possibility of developing commercial quantum computers, though it was also noted that widespread commercialization is still a long way off. If quantum computing reaches its full potential, humanity's computational capabilities could expand beyond imagination, inspiring immense anticipation for this technology's future.

The cryptocurrency market also saw significant activity. Ethereum experienced an 11.16% surge, outperforming Bitcoin, fueled by optimism for an impending cryptocurrency bill in the US House of Representatives and pro-crypto statements from President Donald Trump. In Australia, the digital asset Ripple also climbed 30% last week. This rise was attributed to an influx of institutional capital, the linking of a stablecoin (RLUSD), and its alignment with the ISO 20022 standard. There are also indications that businesses are increasingly looking to utilize Ripple as a treasury asset, suggesting a broader effort for cryptocurrencies to transition from mere speculative assets to integral parts of financial infrastructure. However, news from Russia indicated a significant decline in trading volumes on major centralized cryptocurrency exchanges, with some experiencing up to a 44% reduction in June, signaling an outflow of funds from Asian individual investors and illustrating that the market as a whole remains subject to considerable volatility.

News related to social infrastructure also came to light. In the UK, Southern Water extended a hosepipe ban due to drought conditions. The explanation that this period is one of the driest since 1976 vividly illustrates the impact of climate change on our daily lives. In Canada's Okanagan region, strong winds led to power outages affecting over 2,000 residents, while in Devnahalli, Bengaluru, India, weekly four-hour power cuts were announced for a week due to power line upgrade work. These incidents serve as poignant reminders of how critical stable energy infrastructure is and how greatly unforeseen natural phenomena can influence our lives.

In Japan, it was announced that the Minesen railway, which had suspended operations due to heavy rainfall damage, will transition to a Bus Rapid Transit (BRT) system, a bus that runs on rails. This appears to be a rational decision, pursuing efficiency alongside disaster recovery. The extension of Tokyo Metro's Yurakucho Line and its direct reciprocal service with Tobu Railway are expected to significantly improve accessibility between Tokyo and eastern Saitama Prefecture, injecting new vitality into urban development. In South Korea, the extension of Seoul Metropolitan Subway Line 9 to Namyangju is planned to break ground in the first half of 2027, with an opening target of 2031. This project, with a total cost of 2.93 trillion Korean Won, is anticipated to alleviate traffic congestion in the northeastern metropolitan area and enhance the quality of life for local residents.

In industry and corporate news, fortunes were mixed. Fernandes, a renowned Japanese electric guitar brand, declared bankruptcy. After achieving sales of over 4 billion Japanese Yen in 1999, competition from the used market led to a drastic decline, with sales plummeting to 160 million Yen in 2022, ultimately resulting in an inability to manage 730 million Yen in debt. The demise of this long-standing brand is a stark reminder of changing times and the unforgiving nature of the market. Conversely, Stellalive, a South Korean company specializing in virtual YouTubers, was acquired by the Japanese virtual YouTuber company Brave Group, becoming its subsidiary. This not only showcases the competitiveness of Korean content but also indicates how new forms of entertainment are expanding across borders. Saudi Arabia has commissioned consulting firms to re-evaluate the feasibility and cost-effectiveness of its ambitious future city project, 'The Line.' Seeing a grand plan to build a 170-kilometer emission-free city encounter realistic barriers helps us empathize with the effort required to bridge the gap between dreams and reality.

As I analyzed the major news stories from various countries yesterday, we encountered a complex tapestry of global events and the diverse narratives of people living within them. From the rise and fall of companies, to technological advancements and their underlying challenges, and the critical importance of climate change and infrastructure – all these factors impact us globally. They highlight the undeniable need for us to empathize with one another and collaboratively seek solutions.

As your Empathy Keeper, I will continue to view global news through the lens of empathy, striving to discover the path we can walk together. I truly believe that by navigating the waves of change steadfastly, empathizing with each other's lives, and pooling our collective wisdom, we can build a better future. That concludes my analysis and empathetic insights into yesterday's blog news articles. Until our next update, thank you.