Global Economy: Empathy's Future?

Hello everyone! This is Empathy Keeper from 'The beginning of empathy,' dreaming of a world where everyone can empathize. Today, Tuesday, August 5th, 2025, we're going to take a deep dive into the economic news that has reached us over the past week from 24 countries around the world.

As we look at the diverse stories unfolding globally, what common threads can we discover, and what unique situations should we pay attention to? I believe that true understanding begins not merely with numbers and indicators, but by empathizing with the lives, hopes, and concerns of the people behind them.

This past week, the global economy navigated significant waves, including the brilliant growth of technological innovation, an unstable international political climate, and the rising cost of living that directly affects daily lives. While new opportunities opened wide in some areas, unexpected challenges emerged in others. In this constantly shifting tide of change, what kind of future can we envision together?

Based on the news articles from my weekly blog posts yesterday, I aim to analyze the complex currents of the global economy with you today, seeking points where we can all empathize. Are you ready?

Then, let's take a moment to feel the pulse of the global economy together!

The most prominent trend sweeping across the world economy this week was undoubtedly 'Artificial Intelligence and the Technology Revolution.' The news of Figma's highly anticipated public offering served as a powerful signal for this transformation. In countries like the UK, the United States, Taiwan, Belgium, Hong Kong, the Netherlands, Italy, and Canada, Figma's listing topped Google Trends searches, proving intense public interest. Despite Adobe's unsuccessful acquisition attempt, Figma successfully debuted on the New York Stock Exchange with a valuation nearing 68 billion dollars, injecting new vitality into Silicon Valley. This stands as an emblematic example of how innovative ideas and technological prowess can create immense business opportunities.

Figma's success also highlighted the critical importance of the 'AI talent competition.' Major tech giants such as Microsoft, Meta, Amazon, and Google plan to pour a staggering 364 billion dollars into AI-related infrastructure investments for the 2025 fiscal year alone. Mark Zuckerberg, CEO of Meta, unveiled his vision for 'personal superintelligence,' aiming to fill users' leisure time with AI-powered entertainment and lifestyle experiences. Microsoft, propelled by the remarkable growth of its AI products and services, achieved an astounding 4 trillion dollar valuation, once again affirming its position as a global leader in the technology market. This achievement resonated strongly in Brazil. Tesla also demonstrated its commitment to securing AI talent by granting its CEO, Elon Musk, stock valued at approximately 29 billion dollars. These developments indicate that AI is no longer a distant future technology but a tangible force with the potential to completely reshape the industrial landscape and serve as a core competitive advantage for businesses.

However, the rapid advancement of technology also cast a shadow. Atlassian, an Australian tech company, laid off 150 employees as it moved to adopt AI-powered customer support solutions. This illustrates how AI can boost productivity while simultaneously leading to the disappearance of certain job roles, intensifying global discussions about the future of employment in the age of AI. Companies facing these changes must deeply consider how to uphold social responsibility and foster empathy with their employees during this transition. While the spread of AI is an inevitable trend, establishing social safety nets and retraining programs to ensure no one is left behind is emerging as a crucial task.

The second major trend was the 'Surge in Cost of Living and Inflation.' Throughout the world, increasing price pressures directly impacting the lives of ordinary citizens were evident. In Türkiye, concerns about rising gasoline and diesel prices grew, while Mexico abolished its full fiscal incentive for fuel taxes, increasing the burden on drivers. Even with a drop in international oil prices, the rising domestic fuel tax burden in these countries highlighted the gap between government fiscal policies and citizens' daily lives. Indonesia saw a reduction in non-subsidized fuel prices, but diesel prices actually rose, showing a complex scenario.

Concerns about inflation also continued across Europe. Poland's statistical office was preparing to release July Consumer Price Index (CPI) and Producer Price Index (PPI) data, with inflation reportedly holding at around 3.1 percent. In Spain, there was significant interest in Argentina's inflation news, demonstrating how price increases in distant nations can evoke shared concerns about domestic inflation. In Germany, issues of electricity and gas overcharging came to light, attributed to high network usage fees, taxes, and surcharges. The burden of energy costs has become a common global concern. In France, changes to tax deductions for elderly retirees are anticipated, with analyses suggesting that at least 1.4 million retirees could face disadvantages, showing how tax policy changes directly impact people's lives.

The third trend was 'Global Monetary Policy and Market Volatility.' The weaker-than-expected US employment figures led to current US President Donald Trump announcing the dismissal of the statistical chief, sparking controversy over the reliability of employment data. This affected not only the US stock market but also France's CAC 40 index, as expectations for interest rate cuts and policy uncertainties intertwined, contributing to unstable market conditions. The Bank of Canada kept its benchmark interest rate unchanged, citing uncertainties arising from current US President Donald Trump's trade policies, clearly illustrating the influence of international relations on a nation's monetary policy. The Central Bank of Russia, on the other hand, lowered its key interest rate by 2 percentage points to 18 percent annually, a move seemingly aimed at boosting domestic demand and supporting business activities.

The Swiss market reacted more calmly than expected to the threat of 39 percent tariffs from the United States. Analysis suggested that most Swiss-listed companies are global enterprises with significant local production in the US, making them less directly affected by tariffs. This indicates that a company's global strategy can serve as a shield against external shocks. Meanwhile, Berkshire Hathaway, led by legendary investor Warren Buffett, also strongly warned about the potential 'negative impact' of current US President Donald Trump's tariff policies on various businesses, maintaining high cash reserves and reflecting a cautious market sentiment.

The fourth trend involved 'Trade Barriers and Geopolitical Tensions.' Current US President Donald Trump's tariff policies caused significant repercussions not only for domestic US companies but also for trading partners worldwide. Taiwan was on high alert following the announcement of a potential 20 percent reciprocal tariff increase, expressing particular concern about the practical impact of 'Section 232 semiconductor tariffs' on its economy. Global sportswear brands like Adidas also announced that US tariff increases would force them to raise consumer prices in the United States, demonstrating how trade conflicts ultimately lead to higher consumer costs worldwide. In Saudi Arabia, news of the discovery of the world's largest oil field in China garnered significant attention. This discovery, valued at approximately 400 billion dollars, could reshape the global energy market and necessitate new strategic planning for major oil-producing nations like Saudi Arabia. This development also re-emphasizes the importance of energy security and global supply chains.

Finally, we observed 'Industrial Restructuring and New Opportunities.' India's capital market was ablaze with initial public offerings from companies like NSDL, Sri Lotus Developers, and Aditya Infotech. This phenomenon reflects deep confidence in India's overall economic growth potential. The large-scale recruitment announcement for office staff by the Institute of Banking Personnel Selection (IBPS) offered hope for the Indian employment market, highlighting how its young, massive population serves as a powerful foundation for domestic demand. News of HCLTech's CEO salary underscored the global standing and growth trajectory of India's IT industry. The surge in delivery service stock prices vividly illustrated the growth of India's e-commerce market and logistics sector, emphasizing that the expansion and efficiency of logistics networks are key drivers for corporate growth.

Meanwhile, traditional industries experienced mixed fortunes. The news that Italian truck manufacturer Iveco would be sold to India's Tata Motors sparked deep concerns about industrial hollowing-out in Italy. A former Iveco CEO criticized this sale as 'the most serious and dramatic industrial divestment,' raising fundamental questions about the future of young Italians. However, at the same time, Ferrari, an iconic Italian luxury car brand, performed well, with net profit increasing by 9 percent despite trade barriers. In South Korea's shipbuilding sector, Daehan Shipbuilding, a mid-sized shipbuilder, saw its stock price surge 85 percent above its offering price on its listing day, reflecting significant market expectations. This was largely influenced by the official launch of the 'MASGA' project, a Korea-US shipbuilding cooperation package. Such international collaboration and exchange can have positive effects on our economy.

The pharmaceutical industry also saw winds of change. Danish pharmaceutical company Novo Nordisk faced difficulties, with its stock price plummeting and profit forecasts lowered due to intensifying competition for its obesity drug Wegovy and the emergence of generic versions. News regarding Novo Nordisk garnered significant interest in several countries, including Belgium, Switzerland, Germany, and the Netherlands. This case powerfully illustrates how the performance of a single company can have a substantial impact on an entire nation's economy. This competition also offers a glimpse into the relentless efforts to improve human health.

In analyzing these major global news stories from the past week, it became clear that technological innovation is the most powerful growth driver worldwide, and the resulting industrial restructuring and job changes are challenges that everyone must acknowledge and prepare for together. Simultaneously, inflation, trade disputes, and policy changes by various governments are directly and indirectly impacting all our lives, increasing unpredictability. While financial market volatility remains high, new asset categories like cryptocurrency are establishing themselves as 'serious investment categories,' indicating new opportunities. Central banks and governments worldwide are grappling with these complex situations, striving for both stability and growth. Investment in social infrastructure is recognized as a crucial factor in improving the quality of life for citizens and contributing to economic revitalization.

All these stories are not just tales from distant lands; they are 'Empathy' stories intimately connected to our lives. Amidst the currents of change, I believe it's essential to understand and consider each other, pooling our wisdom to build a better future. Empathy Keeper will continue to share news from various countries, contemplating and communicating with all of you.

See you in the next update. Thank you.