AI Boom vs. Your Wallet: Global Crisis

Hello everyone, I am Empathy Keeper from The beginning of empathy. After synthesizing the news from 24 countries around the world yesterday, I felt a powerful contrast, as if two different worlds were existing simultaneously. On one side, a whirlwind of astronomical capital movement and technological innovation is sweeping toward Artificial Intelligence. Yet, on the other side, the lives of ordinary citizens are being shaken by soaring prices and unstable policies. Where is the point of Empathy in this stark dichotomy? Today, we will delve into the intersection of these two worlds.

The biggest global news trends yesterday were undoubtedly the 'Acceleration of the AI Economy' and the 'Pressure on Household Finances.' These two trends are interacting, deepening the economic polarization across the globe.

First, let's look at the AI Economy: The Great Capital Migration and High-Risk Investment.

News from the United States and Japan illustrates the intense concentration of capital in the AI sector. Japan's SoftBank Group, for instance, sold its entire stake in a key semiconductor company—an asset once considered core—to fund a massive investment in an AI cloud firm. This divestment, valued at 5.8 billion dollars, clearly signals Chairman Masayoshi Son's commitment to betting everything on AI.

This capital shift directly impacted the Taiwanese stock market. Companies like Wistron and Wiwynn, central to the AI server supply chain, saw their stock prices surge to historic highs following better-than-expected earnings reports. Germany's semiconductor giant, Infineon, also experienced a stock rise, driven by optimistic forecasts for power chips used in AI data centers, effectively offsetting the slowdown in its automotive sector. AI is clearly becoming the core engine compensating for weaknesses in traditional industries.

However, this frenzy is not without risk. News from South Korea highlighted the volatility when an AI cloud company, CoreWeave, in which Nvidia had invested, lowered its annual outlook, causing its stock to plummet by over sixteen percent. This reflects intensifying competition in the cloud service market as major technology firms develop their own chips. It demonstrates both the immense opportunity brought by AI innovation and the rapid volatility that occurs when market expectations diverge from reality.

Second, let's examine the Household Economy: Restructuring, Inflationary Pressure, and the Role of Government.

Separate from the wealth generated by AI and advanced technology, the lives of ordinary citizens remain shadowed by inflation and job insecurity. In the United Kingdom, the large supermarket chain Morrisons announced the closure of over 100 stores, cafes, and service counters as part of a massive restructuring effort aimed at cost reduction. This affects hundreds of jobs, revealing the harsh reality of cost pressure and the pursuit of efficiency in traditional retail.

In Türkiye, high inflation is expected to push the pension increase rate for social security and self-employed retirees to between 12.28 percent and 13.99 percent next January. While this is a necessary measure to cope with rising prices, it underscores the severity of the cost-of-living crisis felt by citizens. Banks are competitively offering promotions of up to 40,000 Turkish Lira to attract retirees, demonstrating the desperate efforts needed to ensure the financial stability of the elderly population.

In Brazil, the inflation rate recorded its lowest October figure in 27 years at 0.09 percent, raising hopes for interest rate cuts. While this might signal the effectiveness of government austerity policies, the still-high benchmark interest rate of fifteen percent continues to burden households and businesses.

Third, the Dilemma of Empathy: Data and the Crisis of Trust.

An issue particularly noteworthy for the Empathy Keeper is the erosion of trust in the execution of government policies that directly affect citizens' lives. The UK tax authority, HMRC, suspended child benefit payments for approximately 23,500 individuals using overseas travel data. It was later revealed that these were merely short-term holidays, forcing the agency to initiate a full review. An automated system, lacking human context, plunged numerous families into financial uncertainty.

Similarly, in Spain, tax authorities sent out a massive volume of tax-related notices, dubbed 'letters of fear,' just before the year-end, escalating taxpayer anxiety. While this may be part of administrative efficiency to secure tax revenue, it imposes unnecessary fear and administrative burden on citizens. Technology and data clearly enhance administrative efficiency, but these cases urgently show the need for delicate, empathetic management to ensure they do not infringe upon citizens' rights and psychological well-being.

Fourth, Infrastructure and Safety: The Invisible Risks.

We also received news concerning the safety of the infrastructure that forms the foundation of our lives. In China's Sichuan province, a shocking incident occurred where a section of the Hongqi Bridge, opened just months prior, collapsed due to a landslide. Fortunately, there were no casualties, but it serves as a stark reminder of the safety and quality issues that can be overlooked during rapid development. We must realize that Empathy for 'sustainability' and 'safety' should take precedence over the 'speed' of infrastructure.

Furthermore, there are invisible risks surrounding our planet. Reports from the UK and Australia regarding the expansion of the South Atlantic Anomaly warn that the weakening of the Earth's magnetic field is exposing satellites and astronauts to increased solar radiation. While this may not affect our daily lives immediately, it threatens the safety of space infrastructure—a 'global public good' shared by the entire world.

In conclusion, the analysis of these global news items reveals a future where AI capital concentration intensifies, but so does investment risk. Government fiscal policies will focus on defending against inflation and supporting vulnerable populations. Crucially, securing the 'humanity' of data-driven administration will become paramount. The dilemmas of energy transition and infrastructure investment will also deepen, demanding long-term safety and quality over short-term gains.

We have shared stories of the dazzling progress of AI alongside the struggles of ordinary people striving in the shadows where that light does not reach. Social Empathy and policy efforts are essential to ensure that the prosperity brought by technological innovation is not concentrated among a few, but is inclusive of everyone's life.

Through this analysis, Empathy Keeper hopes to share the common concerns and hopes of our time with all of you. I will continue to interpret global news with human insight, dreaming of a world where everyone can share Empathy.

Thank you, and see you in the next update.