AI, Water, & Wealth: The Global Triple Threat

Hello everyone, and welcome back to The beginning of empathy. I am your Empathy Keeper, here to provide an integrated analysis of news from 24 nations as of October 28, 2025.

Looking across the vast landscape of global events this past week, a striking pattern emerges. Regardless of geographical location or economic size, every nation is grappling with three monumental waves: the technological revolution driven by Artificial Intelligence, the essential resource and infrastructure crisis fueled by climate change and aging systems, and persistent financial instability.

These three forces are not isolated; they are deeply intertwined, fundamentally reshaping our daily lives and the blueprint of the future economy. For instance, the excitement surrounding AI technology boosts stock markets, yet water shortages can halt production, delivering a devastating blow to local economies. Furthermore, government fiscal policies directly impact the lives of citizens, such as those in Russia desperately needing heating as winter approaches.

In this complex global current, what common ground can we find, and what differences must we understand? Most importantly, what is the core message of Empathy these stories convey? Join me now as we delve into major economic trends spanning the globe—from the drought in Spain to the IPO frenzy in India, and the labor disputes in Canada—to predict the future.

Our shared exploration of these stories is more than just gathering information; it is a crucial first step toward forming a deeper understanding and Empathy for one another's lives.

Part 1: The AI Revolution – Global Workforce Restructuring

The most frequently discussed and significant topic this past week was undoubtedly Artificial Intelligence. AI is transcending a mere technological trend; it is a powerful engine restructuring corporate frameworks and labor markets worldwide.

We see massive investments driving this change. In the United States, news broke that a leading chip maker is accelerating the construction of AI data centers through a potential hundred-billion-dollar investment in a pioneering AI model developer. This highlights the powerful synergy between hardware leadership and innovative AI development.

Meanwhile, corporate giants are adapting their strategies. Japan’s Sony Group is strengthening its intellectual property acquisition strategy in the entertainment sector, aiming to transform into a comprehensive entertainment trading company. This move reflects the growing prediction that content and IP value will soar in the AI era.

However, the rise of AI has immediate consequences for the labor market. Global consulting firms, including one major player, are conducting workforce restructuring and retraining across multiple countries, including India, France, and Saudi Arabia. They are facilitating the departure of employees deemed unable to adapt quickly to AI, while simultaneously retraining hundreds of thousands of staff in generative AI fundamentals. This signals that AI is not just replacing jobs, but making the ability to acquire new skills and adapt to change the core competency of the future workforce.

The ripple effects are broad. In Taiwan’s stock market, capital is circulating not only to AI leaders but also to second and third-tier suppliers, leading to price increases across a wide range of industries, from fiberglass copper foil upstream of printed circuit boards to the memory sector. Conversely, traditional industries are struggling. In Spain, a major automotive group temporarily suspended factory production in response to slowing market demand, illustrating the difficulties faced by companies that fail to rapidly integrate AI innovation.

Part 2: Essential Resources and Infrastructure – The Double Burden

Even amidst the rapid advancement of high-tech like AI, the stability of the most basic resources and infrastructure—such as water and electricity—has become a global concern. Climate change combined with aging infrastructure is directly impacting citizens' daily lives.

Water scarcity is a stark reality. In the Adra municipality of Almería, Southern Spain, drought necessitated nighttime water rationing. This is a tangible example of climate change’s immediate impact. Türkiye’s capital, Ankara, also experienced a massive water outage due to pump failures and distribution network issues, causing significant inconvenience and potential economic damage.

Power system instability is another major issue. In southeastern Mexico, a large-scale power outage affected approximately 2.3 million residents due to an interconnected line failure. Argentina is also anticipating rail delays and power outages due to infrastructure problems, demonstrating how the stability of basic public services dictates the quality of life.

In Hong Kong, plans for new subway stations intended to support large-scale housing projects are being delayed due to cost issues, highlighting the complexity of urban infrastructure investment. And as winter approaches, citizens in Russia are voicing frustration. Despite forecasts of sub-zero temperatures, the official start of the heating season is delayed due to government regulations, leaving residents suffering from cold and dampness. This is a prime example of how the gap between administrative procedure and reality severely impacts essential public services.

Part 3: Financial Instability – Inflation and Investment Duality

The global economy remains shadowed by inflationary pressure, interest rate volatility, and investment uncertainty.

Inflationary pressures are mounting. In Australia, strong inflation data has raised the possibility of an interest rate hike by the Reserve Bank. Russia’s Ministry of Finance proposed raising the general Value Added Tax rate from 20% to 22% starting in 2026 to secure defense and security funding, a move that could exacerbate price increases. Argentina continues to tighten dollar controls to counter exchange rate instability, yet the gap with the unofficial exchange rate still signals economic fragility.

Amidst this instability, governments are striving to stabilize livelihoods. Indonesia’s government decided to freeze electricity tariffs for the fourth quarter of 2025 to protect citizens' purchasing power. The Australian government implemented a policy to forgive 20% of student debt, easing the financial burden on younger generations. Saudi Arabia is lowering the monthly deduction rate for housing and personal loans to enhance the financial sustainability of middle and lower-income citizens. These policies play a vital role in fostering social Empathy and maintaining economic vitality during difficult times.

Investment markets show both vigor and risk. The Initial Public Offering market is active in India, with numerous companies, including a major financial services firm, entering the capital market. Hong Kong also saw significant attention with the listing news of a major mining company. However, vigilance against investment risks is high. In the US, founders of an e-commerce venture were indicted on charges related to a hundred-twelve-million-dollar Ponzi scheme. Furthermore, a cryptocurrency project in Indonesia suffered a massive asset theft due to a hacking attack, underscoring the critical importance of digital asset security.

Part 4: Empathic Insight – Challenges and Opportunities in a Connected World

Analyzing this week's global news reveals crucial commonalities and unique regional characteristics.

The most repeated news topic was AI-related workforce restructuring and investment. This signifies that AI is a massive socio-economic transformation affecting all industries and workers. While companies seek efficiency through AI, the resulting layoffs and retraining needs are a shared concern for workers worldwide.

Global trends like AI and financial instability affect all nations, but the responses reflect regional specifics. The European Central Bank’s advice to 'calmly hold cash' in preparation for digital system failures is unique to Europe's advanced digitalization. Conversely, Argentina’s dollar controls or Russia’s heating issues reflect persistent regional economic and climate challenges.

Economical news is ultimately tied to people's quality of life. The case of a Belgian Israeli-cuisine restaurant facing closure due to hate comments stemming from geopolitical conflict and financial issues shows how distant international disputes can have a devastating impact on the lives of ordinary small business owners. Similarly, the Italian railway strike, framed as a protest against the conflict in the Gaza region, illustrates how social solidarity and international Empathy directly influence domestic economic activity. We must recognize that social responsibility and ethical values are as crucial as economic efficiency in corporate and national governance.

Part 5: Future Economic Shifts

Based on this week's analysis, we predict the following shifts in the future economy:

First, deepening polarization between AI and infrastructure: Nations that successfully lead AI technology and integrate it into national infrastructure (such as the US, Japan, and Taiwan) will experience high productivity growth. Conversely, countries failing to resolve aging infrastructure issues (water, electricity, transport) and remaining vulnerable to climate change will see their economic growth hampered. Future competitiveness hinges on both advanced technology and basic infrastructure stability.

Second, strengthening consumer rights and safety: As seen in the class-action lawsuit against a large energy company in the Netherlands or the food recall news in Belgium, consumers will increasingly voice concerns over unfair corporate practices and safety issues. Governments and corporations must enhance transparency and ethical management to maintain market trust.

Third, increased importance of resource security: The surge in stock prices for a major lithium company in Canada and the current US President Donald Trump's policy of imposing tariffs on pharmaceutical companies highlight that securing key resources and supply chains domestically is becoming central to national security. Global competition for strategic resources like lithium, semiconductors, and pharmaceuticals will intensify.

We have analyzed the major global news of the past week, sharing the common challenges, opportunities, and human insights embedded within them. As your Empathy Keeper, I believe that in this complex world, understanding each other's perspectives, empathizing with suffering, and collaboratively seeking better solutions is paramount. The AI revolution, the climate crisis—these are all issues connected to all our lives. I hope this analysis has planted a small seed of insight and Empathy in your day.

Thank you, and I look forward to connecting with you in our next update.