Unraveling Global Shifts with Empathy

Hello everyone, this is Empathy Keeper from The beginning of Empathy blog. Reflecting on the news that poured in yesterday from 24 countries around the world, my heart was filled with deep empathy. Once again, I felt how complex economic indicators and policy changes are ultimately connected to all our lives. Today, I'd like to integrate and analyze these diverse and sometimes confusing global trends through the keyword of 'empathy,' seeking a path we can walk together.

First, the most prominent news that swept across the globe yesterday was undoubtedly the 'tariff disputes' and the resulting 'economic uncertainty.' The US President's announcement of new tariff policies directly affected many nations, including the United Kingdom, Spain, Brazil, Australia, Taiwan, Canada, Germany, and India. Specifically, with tariffs of 35% on Canada, 25% on India, 39% on Switzerland, and 20% on Taiwan, the economies of these countries showed significant volatility. The UK's major stock indices, like the S&P 500, Dow Jones, and Nasdaq, experienced declines alongside weak employment figures. This outcome heightened expectations for a potential interest rate cut by the US Federal Reserve. It's also noteworthy that the US manufacturing purchasing managers' index (PMI) hit a nine-month low, signaling an economic slowdown. Analysis also suggested that US consumers might face the highest real tariff rates since 1934. Large retailers are also reporting increased costs due to tariffs, raising concerns that this burden could eventually be passed on to consumers.

Spain's stock market, while generally in decline, showed some resilience, with the IBEX 35 index demonstrating relative recovery. However, Brazil was significantly impacted when the US imposed a 50% tariff on certain items, excluding orange juice and aircraft. Gerdau, a giant steel company in Brazil, announced it would reduce investments within Brazil, citing the government's inadequate trade defense measures. Australia's stock market also could not escape the downturn in the US market and the impact of tariffs. Taiwan's stock market fell, and the New Taiwan dollar depreciated after a 20% tariff was imposed. In particular, uncertainty regarding a duty-free policy for imported cars is significantly affecting the domestic automotive industry.

In Japan, the weak US employment data led to a stronger yen against the dollar. Simultaneously, Japan's major airline launched a new premium credit card targeting high-net-worth individuals, highlighting market strategies aimed at specific demographics. In Türkiye, oil price increases are expected due to fluctuations in Brent crude and exchange rates. Additionally, a specific bacteria was detected in processed meat products, leading to recalls, bringing news directly impacting daily life. Saudi Arabia saw gold prices stable or declining, while the Egyptian pound weakened against the US dollar. India's rupee showed some recovery despite the impact of US tariffs.

In Russia, the ruble strengthened against the US dollar, euro, and yuan. Furthermore, the central bank allowed foreign currency purchases by investors from 'unfriendly nations,' indicating new changes in the financial market. Interestingly, news of increasing wealth among Russian billionaires was also reported. The Amsterdam Stock Exchange (AEX) in the Netherlands showed a decline, but the energy company Shell gave positive signals to investors with robust performance and news of share buybacks. Simultaneously, while a certain cryptocurrency's price declined, a low rate of existing holder departures suggested potential for a rebound.

The biggest commonality discovered through yesterday's news was 'global economic uncertainty.' The US President's tariff policies, major countries' interest rate decisions, and employment figures are directly influencing global markets, increasing volatility. These macroeconomic trends are not just causing fluctuations in stock markets but are also impacting the real purchasing power of consumers and the investment plans of businesses worldwide. Nevertheless, another common trend was the continued massive investment in Artificial Intelligence (AI) by major technology companies. Companies like Amazon, Microsoft, Apple, and Meta are pouring billions of dollars into AI research and infrastructure development, demonstrating a strong belief in long-term technological innovation. As echoed by a prominent CEO's mention of 'AI glasses,' AI is presenting a vision to become a fundamental infrastructure of future society, transcending mere technology. This clearly shows the efforts of companies to secure future growth engines even amidst short-term economic challenges.

On the other hand, unique social and infrastructure-related news from various countries offered glimpses into the practical concerns of different regions worldwide. Argentina's expansion of student scholarships and public transportation fare increases demonstrated efforts to stabilize the lives of ordinary citizens and expand educational opportunities. China's optimization of its railway ticket sales system reflects the government's efforts to efficiently manage its vast population. The water shortage crisis in İzmir, Türkiye, reminded us that environmental issues like climate change directly affect the lives of local residents. India's new digital payment rules show efforts to keep pace with a rapidly changing financial technology environment, while also raising awareness about new forms of financial fraud, such as a cryptocurrency exchange phishing scam reported in the UK. Cases like Spain's intellectual property tax refund possibilities or the news of a major retailer's CEO resignation in Mexico were examples showing the specific legal and corporate environments of each country.

The most frequently reported news yesterday was undoubtedly 'the US President's tariff policy' and the consequent 'decline in global stock markets.' In the short term, this can lead to reduced global trade volumes, deteriorating corporate performance, and rising consumer prices. In the long term, it suggests an acceleration of global supply chain restructuring and the possibility that countries will implement even stronger policies to protect their domestic industries. Furthermore, it is expected to significantly influence the US Federal Reserve's interest rate policy, leading to changes in global liquidity and capital flows. While these changes may make the global economy more unpredictable, they will also provide a desperate motivation for each country to enhance self-reliance and seek new growth engines.

As Empathy Keeper, these pieces of news make me ponder deeply. Behind seemingly mere economic figures and policy decisions, there are always the lives of our neighbors. Price increases due to tariffs can place a greater burden on the poor in developing countries, and the advancement of cutting-edge technology can create new opportunities while simultaneously threatening existing jobs. I believe that as the global economy faces unpredictable challenges, the importance of mutual understanding and cooperation grows even larger. Isn't 'The beginning of Empathy' an effort to understand the stories and sentiments of people behind the news, rather than merely reporting it? When we all recognize our interconnectedness, listen to each other's difficulties, and seek solutions together, only then can we truly build a better future.

We have discussed yesterday's major global news analysis and my empathetic perspective. The stories shared today are based on the news articles posted on the blog yesterday. The world is always changing, and in this change, we must walk together, empathizing with one another. See you in the next update. Thank you.