Global Pulse: Tech, Tariffs, & Empathy

Hello everyone, this is Empathy Keeper from 'The Beginning of Empathy' blog. Yesterday, we witnessed a captivating cross-section of our complex yet fascinating world, brought to us through news from every corner of the globe. Today, I'd like us to dive deeper into these global happenings, to uncover the major trends shaping our lives, and to find where we can truly connect through empathy.

The global economy currently navigates a dual current: the powerful winds of technological innovation on one side, and the strong headwinds of protectionism on the other. A significant force in this dynamic is President Donald Trump's new tariff policies, which are profoundly impacting the international trade landscape. Yesterday’s news highlighted how these tariffs became a central issue in various nations. For instance, Taiwan completed 'technology negotiations' with the United States, yet the uncertainty surrounding tariffs set to be imposed from August 1st led to a sharp drop in Taiwan's stock market during after-hours trading. France’s CAC 40 index also saw a significant decline, swayed by the news of President Trump's tariff announcements. Switzerland, facing a substantial 39% tariff rate from the United States, expressed growing concerns for its core export industries. German stock markets, too, experienced a downturn, grappling with interest rate hike anxieties and tariff uncertainties. These developments vividly illustrate how closely intertwined global economies are, and how one nation's policy decisions can create immediate ripple effects across borders.

Amidst these economic uncertainties, the activities of technology companies stood out prominently. Design software company Figma, in particular, garnered significant attention yesterday across multiple countries, including the United States, the United Kingdom, Belgium, Australia, Taiwan, Japan, South Korea, Switzerland, Germany, Canada, and Mexico. Figma's initial public offering (IPO) saw its stock price surge far beyond its public offering price, injecting new vitality into the tech startup market. On its first day of trading on the New York Stock Exchange, Figma's shares climbed over 250%, briefly pushing its market valuation past 50 billion dollars. This success is widely anticipated to be a positive catalyst for the tech IPO market, which had seen some stagnation since the pandemic. Likewise, Meta recorded strong second-quarter earnings, leading to a surge in its stock price in regions such as the United Kingdom, Spain, Belgium, and the United States. CEO Mark Zuckerberg expressed strong confidence in the company’s AI strategy, further fueling investor expectations.

However, not all tech news was rosy. Despite exceeding expected second-quarter results, Amazon saw its stock price decline in the United States, Australia, South Korea, and Canada. This was due to conservative guidance on future profit forecasts, suggesting that massive investments in AI might weigh on short-term profitability. Similarly, Coinbase experienced a drop in its stock price in the United States and the United Kingdom, as its adjusted net profit for the second quarter decreased, likely linked to a slowdown in cryptocurrency trading activity. This demonstrates that while tech stocks can invigorate the market, they also exhibit unpredictable volatility in a rapidly changing environment.

Let's delve deeper into economic news from various nations. In Spain, BBVA bank’s stock price hit an all-time high, driven by strong performance in both the Spanish and Mexican markets. The bank also committed to returning 36 billion euros to shareholders between 2025 and 2028, solidifying investor trust. In contrast, Brazil’s Bradesco bank reported better-than-expected second-quarter earnings, but Ambev reported an 8.9% decrease in domestic beer sales due to market weakening and price competition. Brazil’s central bank, meanwhile, froze its benchmark interest rate, known as Selic, at 15%, temporarily halting its tightening cycle and indicating a cautious approach to the future economic situation.

Argentina continues to face an unstable economic climate, particularly concerning its dollar exchange rate. News also emerged that July rents increased beyond inflation, intensifying the housing cost burden for ordinary citizens. Furthermore, the International Monetary Fund (IMF) voiced concerns over Argentina's fiscal deficit, pointing out that near-zero foreign exchange reserves and escalating national debt significantly constrain the government's economic plans. Amidst these economic hardships, the confirmation of a 70,000-peso bonus for pensioners starting in August highlights the government's efforts to ensure a basic level of financial stability.

In Poland, news of Dino Polska's stock split raised expectations for increased market liquidity. There was also welcome news that a 14th pension payment might be disbursed early in September, with some pensioners potentially receiving additional amounts by submitting specific documents. July's inflation rate stood at 3.1%, signaling a continued disinflationary trend. Meanwhile, the mayor of Kleczew demonstrated a genuine effort to engage citizens by personally entering a trash bin to highlight the severity of waste segregation issues. This act aimed to raise environmental awareness and underscored the importance of leadership in driving community change.

News from Asian countries was equally compelling. In Japan, the JR Musashino Line experienced service suspensions due to signal confirmation issues, inconveniencing many commuters. Tokyo Electron revised down its earnings forecast, reflecting a downturn in the semiconductor equipment industry. The real estate investment fund 'Minna no Oya-san' delaying customer dividend payments served as another reminder of risks in the investment market. Conversely, ANA Airlines brought good news to travelers by launching special domestic flight ticket sales. China shared a touching story of a centenarian reuniting with her family after 70 years, and it was impressive to learn about their unique 'Seaside Court' system effectively resolving maritime and fishing disputes. Additionally, news that Chinese companies, led by ByteDance and Kuaishou, are accelerating the development of AI-driven video generation tools to target the global market showcased the rapid progress and commercial potential of AI technology.

In Indonesia, major gas stations, including the state-owned oil company Pertamina, adjusted fuel prices from August 1st. This is a crucial piece of everyday news directly impacting consumers, prompting reflection on how fuel price changes affect household economies. The Indonesian stock exchange (IHSG) shifted to a strong start, influenced by large-cap stocks, signaling a positive market sentiment. In India, the IBPS Clerk 2025 recruitment announcement commenced, offering opportunities for many young people aspiring to public banking clerical positions. The successful IPOs of real estate developers Sri Lotus Developers and Aditya Infotech, marked by high subscription rates, also demonstrated the vibrancy of India's investment market.

In Russia, Visa and Mastercard reported better-than-expected third-quarter results, affirming robust consumer spending. This is an important indicator of global consumer market resilience. However, the ruble is forecast to weaken against the dollar in August, and the central bank’s interest rate cut is expected to influence lending and deposit rates. News that the removal of melted fuel debris from the Fukushima nuclear power plant will be delayed until the late 2030s serves as a stark reminder that past disasters continue to impact the present and future.

In the Middle East, Saudi Arabia's General Authority of Civil Aviation announced a 4% improvement in airport service quality for 2024 compared to the previous year. This indicates the nation's ongoing investment in infrastructure and service enhancement. According to the Ministry of Finance's second-quarter budget report, public debt increased to 1.38 trillion riyals, but non-oil revenue comprised 49.7%, showcasing successful efforts in economic diversification. Meanwhile, the Indian IT company TCS announced layoffs of 2% of its global workforce, citing advancements in AI technology and a skill imbalance among employees. This news, highlighting the impact of technological progress on the job market, resonated with many.

In Gabon, the government announced a ban on single-use plastic bags in large stores starting September 23rd. This proactive environmental policy aligns Gabon with global efforts toward a sustainable future. In Canada, the possibility of a strike by Air Canada flight attendants raised concerns about potential flight delays and cancellations from mid-August. This news could significantly affect many planning summer vacations. In Mexico, COX Energy announced its acquisition of assets from Iberdrola Mexico and plans to invest 10.7 billion dollars in the future, signaling growth in the renewable energy sector. Additionally, Mexico's Tax Administration Service (SAT) is advancing administrative digitalization by mandating DIOT tax declarations through a new digital platform from August 1st.

In Italy, Poste Italiane launched a 'Super App' for its nine million customers, integrating financial, postal, and payment services to enhance user convenience. This aligns with the global trend of digital transformation. Interestingly, Ferrari’s stock price plummeted by nearly 10% despite an increase in first-half net profit, likely reflecting market concerns over tariff impacts. Meanwhile, news emerged of additional funding to prevent the spread of 'blue crabs' in northern Italy, illustrating the impact of invasive species on ecosystems and economies, and the government's efforts to address such issues.

In Switzerland, the SMI index of the Swiss stock market declined following news of the 39% US tariff. The Swiss National Bank (SNB) also reported a loss of 15.3 billion francs in the first half of the year due to the strong Swiss franc, making future dividend payments uncertain. This demonstrates how a strong Swiss franc can affect not only export companies but also the central bank's asset values. In Germany, the DAX index rose following news of a US-EU trade agreement, while Bayer's stock strengthened despite ongoing Monsanto-related litigation risks, as the company upgraded its earnings outlook. This illustrates how companies continuously devise strategies for survival and growth even in challenging environments.

Observing news from such diverse nations truly makes us realize that the entire world is interconnected, like one vast organism. Technological innovation transforms our lives and fuels economic growth, but it also creates new challenges and societal debates. The spread of protectionism underscores the importance of global cooperation, and governments and businesses worldwide are seeking various strategies for survival and growth in an uncertain future. If we approach these changes with a mindset of understanding and empathy for each other's situations, I believe we can collectively build a better future.

We’ve just analyzed key global news from an empathetic perspective. The news articles we explored today are a compilation of widely discussed events from around the world yesterday. Through this post, I aimed to foster a sense of shared understanding with you, my readers, by balancing objective facts with personal insights. I hope this discussion offered a moment for you to pause from your busy routines, pay attention to the changes around us, and reflect together. Thank you for joining me. Until our next update, goodbye!