AI Boom: Global Economy's Two Faces

Hello everyone, I am Empathy Keeper from The beginning of empathy. Today, through news gathered from 24 nations around the world, we will delve into the hidden reality behind the seemingly spectacular growth of the global economy and the struggles of people navigating this complex landscape. Behind the explosive growth of financial markets driven by Artificial Intelligence and advanced technology, a deep shadow of unpredictable risk and fundamental livelihood instability looms. What kind of Empathy does this two-faced economy demand from us?

The most powerful message resonating across the globe yesterday was 'uncertainty' and 'polarization.' In the financial markets, in particular, a warning from the head of a major US bank caused significant ripples. News from the United Kingdom reported that the CEO of a prominent financial institution stated the probability of a severe stock market correction is 30%, significantly higher than the 10% the market generally anticipates. He pointed to risk factors such as the geopolitical environment, fiscal spending, and global rearmament, emphasizing that the level of uncertainty should be considered higher than what is typically called 'normal.' This is a crucial signal, demonstrating how unstable the foundation of the current global economy truly is.

This financial instability is also palpable in Asia. In Taiwan, despite the National Stabilization Fund reaching a record high, the decision was made to continue its market stabilization mission. This suggests that international political and economic uncertainties, such as tariff negotiations between Taiwan and the US and trade investigations, still pose potential risks to the market. It is evidence that the government does not fully trust the market's self-sustaining stability.

Meanwhile, in the United States, an AI data center company, Applied Digital, reported revenue exceeding expectations, confirming the explosive growth of the AI infrastructure market. In India, Tata Consultancy Services announced plans to invest 6.5 billion dollars to build a one-gigawatt AI data center. This signifies India's strategic shift from an outsourcing hub to a capital-intensive center for AI computing power. Similarly, Taiwan's TSMC achieved record-high revenue in the third quarter, fueled by demand for AI and High-Performance Computing. The AI and advanced technology sectors are rapidly generating new wealth and driving economic expansion.

But is this massive wave of technological progress reaching everyone equally? The reality suggests otherwise. Across the world, the stability of basic livelihoods and infrastructure is under threat.

In Spain, the electricity grid operator continues to warn about risks to power supply security, even after a massive blackout in April. This highlights the difficulties of integrating renewable energy and managing complex power systems, reminding us how vital a stable energy supply is.

In Sao Paulo, Brazil, the utility company Enel SP began work to regularize the power grid in the Vila Jaraguá area. This measure aims to provide safe and high-quality electricity to approximately 3,500 households, resolving risks caused by illegal connections and promoting social equity. Infrastructure stability is an issue of Empathy directly linked to quality of life and safety.

In Tasmania, Australia, the power supplier TasNetworks reported an increase in outages in remote areas due to severe weather. This problem, resulting from the combination of climate change and aging infrastructure, causes significant disruption to the daily lives of residents in outlying regions.

Labor and livelihood issues are also severe. In Poland, farmers are resorting to the 'desperate act' of allowing 'self-harvesting' due to plummeting agricultural prices and a lack of buyers. This reveals a reality where producers are not receiving fair compensation due to market deregulation and distribution structure problems. The sight of farmers' hard work collapsing before market logic demands deep Empathy from all of us.

Australia is advancing the 'Payday Super' legislation to address the issue of unpaid retirement funds (superannuation). This mandates employers to pay retirement contributions within seven days of salary payment, helping workers secure tens of thousands of dollars in additional retirement savings. This is a crucial outcome of forming a social consensus on protecting workers' rights and ensuring retirement security.

Global trade environments are also unstable. Japan's Fast Retailing, the operator of a major clothing brand, plans price increases in its North American business to counter the impact of potential tariffs imposed by the current US President. This raises concerns that tariffs will ultimately lead to consumer price hikes and dampen consumption. Canada is also focusing on protecting its domestic industries, with the Industry Minister announcing a new industrial strategy to counter US tariff threats. Protectionism is clearly shifting burdens onto both businesses and consumers.

Financial and technological convergence is accelerating. Bitso, a cryptocurrency exchange in Mexico, began offering investment services in US stocks and fractional shares starting from just 20 pesos. This is a positive change, increasing global financial market accessibility for small investors. In South Korea, major banks are also collaborating with digital asset exchanges to offer new financial services, blurring the lines between traditional finance and digital assets.

However, in Brazil, investors who put money into structured operating securities (COE) suffered losses of up to 93%. This vividly demonstrates the harm that ordinary investors can face when a lack of information about complex financial products combines with high risk. We realize that alongside the opportunities brought by financial innovation, the responsibility to protect investors from these risks is equally important.

Corporations are responding to this uncertainty by combining large-scale restructuring with strategic investments. Japan's Hino Motors and Mitsubishi Fuso Truck and Bus decided on a management integration under a holding company called 'ARCHION' and announced restructuring plans to reduce production bases from five to three. This appears to be an unavoidable choice for developing future mobility technology and strengthening global competitiveness.

The move by the UK's HSBC to potentially take its Hong Kong subsidiary, Hang Seng Bank, private for 10 billion pounds signals a massive bet on the Asian market and a strategic intent to utilize Hong Kong as a 'super connector' between China and the West. This suggests that the importance of the Asian market remains high despite geopolitical tensions.

Russia's Central Bank Governor stated that the possibility of cutting the key interest rate will be assessed at the October 24th meeting. This shows a cautious approach to the Russian economic situation and makes us reflect on the impact of interest rate policy on economic stability. Furthermore, Russia is discussing plans to completely phase out expired Visa and MasterCard cards, accelerating the transition to the domestic payment system, Mir, following Western sanctions.

Synthesizing all these reports, the global economy is striving to find balance between two massive currents: 'AI-driven hyper-growth' and 'geopolitical and livelihood instability.' AI and technological innovation offer immense potential, but if the benefits are not distributed equitably across society, fundamental issues like the despair of Polish farmers or Spain's power instability will continue to hinder our progress.

We must not lose the thread of Empathy amidst these complex global currents. We must constantly ask how advanced technology can improve the lives of marginalized neighbors and strengthen unstable infrastructure. Refusing to ignore the individual anxiety and suffering hidden behind the massive movements of the financial market is truly The beginning of empathy.

Today, we have integrated and analyzed news from the world's financial, technological, infrastructure, and labor markets, confirming common challenges across nations. I hope the news articles from yesterday's blog posts helped you understand this massive flow in a three-dimensional way.

Empathy Keeper will continue to unravel these complex global stories through the lens of Empathy, dreaming of a future where everyone can thrive together. Please share your thoughts and opinions in the comments. Thank you, and see you in the next update.