Global Pulse: Economy, AI, Space

Hello everyone, and welcome to 'The beginning of Empathy' with your Empathy Keeper! I'm so glad you're joining me today as we dive deep into the diverse news from 24 countries around the world. Over the past week, our global village has seen a whirlwind of stories, from anticipation of interest rate cuts to the future of artificial intelligence, and humanity's relentless pursuit of space. Aren't you curious how these seemingly distant events connect to our own lives?

The world is constantly in a state of unpredictable change. Sometimes it's a small issue threatening the safety of our dinner tables, other times it's a monumental policy decision shaping national economies. This past week, remarks from the US Federal Reserve hinted at potential interest rate reductions, sending ripples across global financial markets. Meanwhile, SpaceX's Starship test flight ignited our dreams of space while also presenting the challenge of environmental responsibility. The growth of digital platforms like Roblox offers insights into future generations' consumption patterns, and various social welfare policies directly impact citizens' lives.

In this complex world, how can we truly understand each other and build a better future together? That's the very question Empathy Keeper sought to answer by meticulously analyzing major news from 24 countries over the last week. We've strived to respect each nation's unique circumstances and cultural context, while also uncovering universal human insights hidden within. Building on the weekly blog posts I shared yesterday, today we'll integrate and analyze all these stories, identifying commonalities and differences, and forecasting future economic shifts.

So, let's embark on this journey with Empathy Keeper to explore a tumultuous week through the lens of Empathy. I hope these stories resonate with your thoughts and spark new perspectives.

The most significant economic topic globally last week was undoubtedly the speech by US Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium. His 'dovish' remarks, hinting at a possible interest rate cut in September, sent a wave of excitement through global financial markets. US stock markets reached record highs, and cryptocurrencies like Ethereum saw sharp increases. This anticipation of rate cuts is expected to revitalize real estate and construction sectors and generally improve investor sentiment towards riskier assets.

However, it's crucial to note that Chair Powell's statements don't guarantee an immediate or extensive series of cuts. He also cautioned about the impact of tariffs on consumer prices and the persistent risk of inflation. With differing opinions within the Federal Open Market Committee, or FOMC, regarding the number of potential rate cuts, it suggests that even if a cut occurs in September, subsequent actions will depend on incoming data. This uncertainty means investors are likely to maintain a cautious approach.

Central banks worldwide also grappled with these global trends. The Bank Indonesia cut its benchmark interest rate for the second consecutive month, aiming to support domestic economic recovery. The Central Bank of Türkiye also reduced its policy rate to 43%, demonstrating a flexible approach. In contrast, Bank of Japan Governor Kazuo Ueda expressed the view that 'wage growth pressure will continue' for Japanese workers, maintaining a monetary policy stance different from the US. The Russian Central Bank, considering inflation risks, adopted a cautious stance on a September rate cut. Each nation is thus weighing its unique economic situation against global trends to determine its monetary policy, a critical matter that directly affects all our lives.

The digital economy and Artificial Intelligence, or AI, were among the most frequently mentioned keywords in global news this week. The online gaming platform Roblox, in particular, garnered significant attention across almost all countries, including Spain, Brazil, Poland, Belgium, the US, Australia, Taiwan, South Korea, Hong Kong, Russia, Saudi Arabia, Türkiye, Canada, Italy, France, and the Netherlands. The fact that approximately 40% of Roblox's daily active users are under 13 years old leads to analyses predicting their continued loyalty and substantial in-game spending as they grow. This serves as a vital indicator for forecasting future generations' digital lifestyles and consumption patterns, illustrating how digital platforms are constantly evolving to foster Empathy and communication.

In the AI sector, Nvidia CEO Jensen Huang visited Taiwan, solidifying his company's leadership in the global AI semiconductor market by entrusting the new Rubin platform chipset to TSMC. Oracle announced plans to invest over a billion dollars annually to build gas-powered data centers in West Texas. South Korea's CLIKA successfully closed seed funding for its AI model compression and deployment technology. In Russia, Yandex launched 'BuddyGPT,' a smart children's watch powered by AI, showcasing active efforts in AI commercialization. IBM and NASA unveiled 'Surya,' an AI model for predicting solar flares, demonstrating AI's role as a new driver for scientific discovery.

However, the debate over an AI 'bubble' also intensified. AI researcher Gary Marcus warned that AI companies' valuations might be inflated, and even OpenAI CEO Sam Altman used the term 'bubble.' A surprising MIT survey revealed that 95% of corporate generative AI pilot projects failed. This suggests that even with innovative technology, realistic application and valuation are crucial, and deep consideration is needed to uncover AI's true value.

News of SpaceX's Starship rocket test flights captured significant interest in countries like the US, Australia, Canada, Italy, France, Germany, and the Netherlands. Starship, humanity's most powerful launch vehicle, aims for lunar and Martian exploration. However, a series of explosion failures and environmental pollution concerns from debris left on Mexican beaches compel us to reflect on the flip side of technological advancement. The Mexican government threatened legal action, and the UK government stated it was working closely with the US government to protect the safety of its overseas territories. Environmental activists' concerns about potential harm to endangered sea turtles amplify calls for tech companies to uphold their social responsibilities.

While SpaceX demonstrates continuous learning and development through its failures, it reminds us that space development transcends a single nation's technological achievement, demanding global responsibility. Finding a balance between human progress and sustainability is paramount, and we can all agree on the need for a responsible approach to safety issues and environmental impact.

Social welfare policies and labor market changes in various countries directly impact citizens' lives and garnered much Empathy. Spain introduced the 'Automatic Minimum Living Income,' or IMV, system to prevent income disruption for vulnerable groups after unemployment benefits end. Brazil's 'Bolsa Família' is a key social welfare program for low-income families, encouraging school attendance for children and prenatal care for pregnant women, fostering long-term self-sufficiency. In Poland, news of the '14th pension' payment was expected to contribute to the financial stability of the elderly. Italy and Germany also saw pension system changes; notably, Germany's 'severe disability pension system' changes raised concerns about exacerbating poverty among the elderly with disabilities, highlighting the difficult challenge of balancing welfare benefits with national fiscal health. The Mexican government also supports vulnerable groups through various social welfare programs, including the 'Well-being Pension.'

In the labor market, various conflicts emerged, such as a strike by Argentine air traffic controllers, delays in public sector wage increases in Germany, and the potential withdrawal of the Dutch online grocery delivery service Picnic. The Picnic case, in particular, clearly illustrates the conflict between 'gig economy' companies' worker rights and the application of traditional labor laws. It suggests that when innovative business models clash with existing regulations, societal consensus is needed on whether corporate survival or worker rights should take precedence. South Korea's economic growth strategy also highlighted overseas examples emphasizing the need for painful reforms like labor market flexibility and industrial restructuring, underscoring the importance of fundamental structural reforms to ease regulations and boost corporate investment.

Efforts towards energy transition and infrastructure investment for climate change response and sustainable development were also active globally. Oman successfully concluded a green hydrogen roadshow in South Korea, solidifying its position as a global clean energy hub. The Central Java provincial government in Indonesia was recognized as the 'Best Green Industry Implementing Provincial Government,' focusing on attracting eco-friendly industries. Indonesia also plans to develop agro-industrial regions combining agriculture and industrial activities. In Germany, railway infrastructure repair work was completed as scheduled, improving regional transportation infrastructure, and France's Eiffage secured a large infrastructure contract in Germany, indicating active infrastructure investment within Europe.

However, not all eco-friendly industries sailed smoothly. The decision by the US administration under President Trump to halt the construction of Danish state-owned energy company Orsted's offshore wind farm, citing 'national security concerns,' illustrated the impact of political decisions on renewable energy expansion. Switzerland's solar company Mons Solar filed for bankruptcy, revealing the realistic challenges of the solar market. This suggests that to achieve a sustainable energy transition, it's crucial to mitigate market volatility and establish stable support policies.

The complexity of global supply chains and the importance of food safety were also highlighted in several news stories this week. The US Food and Drug Administration, or FDA, recommended against consuming, selling, or providing frozen shrimp imported from an Indonesian company after radioactive Cesium-137 was detected. This news was reported not only in the US but also in Japan and Canada, once again raising awareness about safety issues in the global food supply chain. The safety of the food we eat daily is a concern for everyone across borders, and we can all agree on how vital transparent information sharing and swift responses are.

In Russia, a severe 'delivery service crisis' occurred at the major online marketplace Ozon due to significant labor shortages, leading to delivery delays and a surge in customer complaints. This was analyzed as a complex result of the overall economic situation, the outflow of illegal residents, and poor working conditions. Such inefficiencies in the logistics system can negatively impact not only consumer convenience but also the national economy as a whole.

In a rapidly changing market environment, companies are exploring various strategies for survival and growth. Brumby's Bakery, a popular Australian bakery chain, faced difficulties as its parent company sought a sale. Hong Kong's DFI Retail Group initiated workforce reductions to adapt to high operating costs and changing consumer trends. Germany's automotive parts supplier ae group faced bankruptcy, putting 600 employees' jobs at risk, illustrating a broader industry crisis.

Conversely, in the Canadian energy industry, Cenovus Energy completed a large-scale merger by acquiring MEG Energy for 7.9 billion dollars, anticipating synergy effects. In the Italian financial market, Monte dei Paschi di Siena pursued the acquisition of Mediobanca, hinting at the potential creation of a 'third domestic banking holding company.' In the Netherlands, Keurig Dr Pepper of the US announced plans to acquire JDE Peet's and split it into two independent companies, signaling a shift in the global coffee market landscape. Such large-scale mergers and acquisitions go beyond mere corporate changes, significantly impacting the livelihoods of numerous employees, the stability of national economies, and the fate of products consumers love.

The cryptocurrency market continued to attract intense interest this week. Ethereum surged to an all-time high, showing a dominant performance attributed to several factors: its close relationship with stablecoins, an improving regulatory environment, large-scale institutional purchases, and the potential for earning through staking. The official announcement by US securities authorities that they do not consider liquid staking as a security was also a significant positive catalyst. Bitcoin also reflected institutional investor interest, with Michael Saylor's Strategy consistently making purchases. The total value locked, or TVL, on BNB Chain reached 13.4 billion dollars, its highest since 2022, indicating accelerating institutional adoption.

However, the cryptocurrency market still exhibits high volatility. In India, the government's passage of the 'Online Gaming Bill 2025,' banning all real-money online games, caused related stocks to plummet, demonstrating the ripple effect of regulatory changes on the market. In Türkiye, Binance launched new futures trading products offering up to 75x leverage, showcasing market dynamism, but high leverage entails significant risks alongside potential high returns. In these market trends, investors need a cautious approach and sufficient information gathering, balancing the opportunities and risks brought by technological innovation.

Beyond economic news, there were intriguing stories offering glimpses into cultural diversity and social debates across various nations. In Torrevieja, Spain, a 'flock of chickens incident' highlighted the practical challenges of animal protection laws. In Japan, the infidelity scandal involving famous chef Shusaku Toba affected the closure of his restaurant, sparking debate on the impact of celebrity private lives on the public sphere. In Italy, counterfeit 'Lafufu' dolls, capitalizing on the popularity of the cute monster doll 'Labubu,' underscored the importance of intellectual property rights protection. Russian MP Tatiana Butskaya's statement that 'Russians' genes are adapted to fruits and vegetables grown in their own country, not bananas or mangoes,' sparked a social discourse on national agricultural consumption and cultural identity beyond health and dietary habits. India showcased its cultural diversity with varying bank holidays across states due to numerous regional cultural and religious observances.

Integrating and analyzing the major news from 24 countries over the past week reveals that the global economy is in a complex situation, balancing expectations of interest rate cuts with inflation concerns. Artificial Intelligence and digital assets are emerging as key drivers of the future economy, yet they also face challenges like 'bubble' debates and regulatory changes. Space exploration fulfills humanity's dreams but demands deep consideration of environmental responsibility and safety issues. Social welfare policies in various countries demonstrate efforts to improve citizens' quality of life, but they also grapple with labor market conflicts and the challenge of ensuring fiscal health. Furthermore, global supply chain stability and food safety have emerged as critical issues directly linked to our collective well-being.

Amidst these changes, we can predict several significant future economic shifts. First, if the US Federal Reserve's interest rate cuts materialize, global liquidity will increase, and investor sentiment towards riskier assets will further improve. This will positively impact stock and cryptocurrency markets, but inflationary pressures and geopolitical risks will remain variables. Second, AI technology will accelerate innovation across industries and create new business models. However, ethical issues, energy consumption, and a realistic approach to the 'bubble' debate are necessary, and efficient AI deployment and utilization technologies will become even more crucial. Third, digital entertainment platforms, especially metaverse platforms like Roblox, will become central to future generations' consumption and economic activities. With their growth, the digital content and service market is expected to expand further. Fourth, efforts for energy transition to combat climate change will continue, but finding a balance between political decisions and economic feasibility will be a crucial challenge. Green hydrogen, offshore wind, and solar power industries have significant growth potential, but market volatility and the stability of government support policies are vital.

In these complex circumstances, we find hope in the people who are doing their best in their respective roles and striving for a better future. Sharing common interests and concerns, and building a future together across different cultures and environments, is precisely the value that 'The beginning of Empathy' pursues. I hope the stories Empathy Keeper shared today have resonated with your thoughts.

See you in the next update. Thank you.