Global Shifts: Economy & Empathy

Hello everyone, this is Empathy Keeper from 'The beginning of empathy'. What stories did the world fill itself with yesterday? At first glance, news from various countries around the globe might seem distant, but it's often surprising to realize how deeply connected it is to all our lives. Today, I'd like us to take some time to deeply empathize with the flow of the global economy and the stories of the people living within it, through the key news that emerged yesterday.

Undoubtedly, the most striking news yesterday was about the United States' new trade policy. The current US President announced that a tariff of approximately 100 percent would be imposed on all semiconductors produced outside the United States. This was a strong message, stating that exceptions would be made for companies that commit to or are already in the process of production within the U.S. This news immediately sent ripples across global markets, particularly affecting major semiconductor-producing nations like South Korea, Taiwan, and China. Indeed, South Korea's Samsung Electronics is planning to produce Apple's next-generation semiconductors at its US foundry plant, and Apple has announced an investment of 600 billion dollars in the U.S. over the next four years. These actions are seen as moves to mitigate the impact of tariffs and increase domestic production in the United States.

Such actions by the U.S. also influence the responses of other nations. Chinese media analyzed the negative impacts of the U.S. administration's tariff policies on the US economy, pointing out potential reductions in consumer spending and increased price pressures on businesses. Furthermore, news emerged from Switzerland that last-minute negotiations to prevent US tariffs were unsuccessful, and a 39 percent tariff ultimately came into effect. Canada also expressed concerns about the US tariff policies, particularly noting their potential impact on key sectors such as the automotive industry.

These shifts in trade policy are not merely issues between nations; they directly affect individuals' daily lives. For example, in Australia, heavy rainfall caused crop damage, leading to a blueberry shortage, which could result in increased consumer prices. In Spain, electricity bills have soared, burdening household budgets, and in Curitiba, Brazil, citizens experienced inconveniences due to planned power outages by the power supply company, Copel. In Türkiye, fluctuations in oil prices once again brought fuel costs into discussion. Such news illustrates how changes in the international trade environment impact even the closest aspects of our lives, such as grocery prices and utility bills.

Economic indicators and corporate earnings reports also presented a diverse picture. In the United Kingdom, anticipation of an interest rate cut from the Bank of England is growing, with markets watching to see if it will inject vitality. In Spain, Banco Sabadell's decision to sell TSB to Santander Bank and pay a 2.5 billion Euro dividend was positive news for shareholders. In Brazil, RD Saúde reported a 13 percent increase in second-quarter net profit, and Itaú Unibanco also announced better-than-expected results, indicating continued strength in the financial sector. However, Prio's performance was sluggish due to temporary production disruptions. In the United States, IT companies like Uber, AppLovin, Shopify, and DoorDash announced second-quarter results that surpassed expectations, drawing market attention. Shopify, in particular, saw its stock price surge after providing strong revenue growth guidance. Conversely, AMD's stock price declined due to concerns about slowing data center revenue, and Disney's stock also fell sharply due to a significant decline in its linear TV segment.

In Europe, German insurer Allianz and defense company Rheinmetall reported better-than-expected results, reassuring investors. On the other hand, pharmaceutical company Eli Lilly saw its stock price decline as clinical data for its new obesity drug fell short of expectations. This highlights how high market expectations can be and how challenging innovation truly is.

Alongside these economic news items, there were also updates regarding social welfare and working conditions. In Poland, good news arrived for over 100,000 pensioners who retired between 2009 and June 2019: they will receive increased pensions of up to 180 Zloty per month, approximately 60,000 Korean Won. This is a crucial step towards correcting past unfairly calculated pensions and rectifying an injustice. Conversely, in Germany, news that pension statements for 22 million pensioners were incorrectly calculated caused concern among citizens. In the UK, a complex economic situation is significantly influencing individual choices, with some employees even declining salary increases due to the loss of childcare support for those earning over 100,000 pounds and increased tax burdens.

We cannot overlook the impact of technological advancements on our lives. In Japan, Microsoft's survey results revealed job categories highly likely to be replaced by Artificial Intelligence, drawing significant public interest. Notably, knowledge-based professions such as translators, interpreters, and historians were ranked high, prompting reflection on job changes in the AI era. In Brazil, the Ministry of Education has launched a capacity-building program for school administrators, emphasizing the educational leadership needed for the AI era. In China, the 12th Chengdu World Games are about to commence, providing an opportunity to showcase China's technological prowess and organizational capabilities to the world. China is also accelerating its development of eco-friendly technologies by pushing for the construction of zero-carbon industrial parks.

There was also news from the service sector, which enhances our daily convenience. In the United States, Uber announced increased revenue and approved a 20 billion dollar share repurchase, while DoorDash reported better-than-expected results with a 20 percent increase in orders. However, United Airlines experienced flight disruptions in North America, including the U.S., Mexico, and Canada, due to technical issues. In Saudi Arabia, Starbucks announced the closure of its 'pickup' stores and a reevaluation of its store atmosphere, demonstrating a commitment to enhancing the customer experience.

Looking at the news from around the world yesterday, we are once again reminded that we are all part of a huge wave of economic and social change. As trade conflicts intensify and technological innovation accelerates, the interconnectedness between nations becomes even more crucial. Within these changes, individual anxieties exist alongside new opportunities. As Empathy Keeper, I aim to understand all these trends objectively, while also listening attentively to the stories of the people living through them. I hope that 'The beginning of empathy' can be a place where we look at the complex problems facing our society through the lens of empathy and gather wisdom to collectively build a better future.

We've discussed a global news analysis from yesterday and my empathetic perspective. This was all based on the news articles from my blog posts yesterday. I believe that understanding the common challenges and hopes we share, even amidst different cultures and environments, is truly The beginning of empathy. See you in the next update. Thank you.