AI Bubble vs. Infrastructure Decay

Hello everyone, I am Empathy Keeper, bringing you the latest insights from The beginning of empathy. This is our segment, 'Understanding for Empathy,' where we integrate and analyze news from 24 nations around the globe. What was the most significant issue that swept across the world yesterday? It was the stark contrast between 'extreme market volatility' and 'instability in daily life.' On one hand, the explosive growth of Artificial Intelligence technology shook the financial markets. On the other, the fragility of basic public services and infrastructure threatened the everyday lives of citizens. What common anxiety can we read into these two extreme phenomena?

First, let's look at the AI Revolution and the Market's Fear: Is it a 'Bubble' or a 'New Era'?

Yesterday, global financial markets rode a rollercoaster following the earnings announcement from a leading AI chip manufacturer. In countries like the United Kingdom, Spain, Argentina, Poland, Belgium, the United States, Australia, Taiwan, South Korea, and Hong Kong, this company's performance and stock fluctuations dominated the news. The company reported third-quarter revenue of 57 billion dollars, exceeding market expectations. Its CEO dismissed the AI bubble debate, stating that the sales of their new chip were 'off the charts.' He emphasized that the AI ecosystem is rapidly expanding and that AI is doing everything, everywhere, all at once.

Despite this optimistic outlook, the market reaction was complex. The stock initially surged but ultimately closed down more than three percent. This suggests that while investors acknowledge the explosive growth of AI, they cannot shake off fundamental doubts about whether the current high valuation is excessive. News from Taiwan and South Korea reported a sharp drop in the Philadelphia Semiconductor Index and a more than ten percent plunge in memory chip companies, signaling widespread caution regarding AI-related stocks.

This risk-aversion sentiment quickly spread to the cryptocurrency market. Reports from the US, Japan, Hong Kong, Türkiye, Indonesia, and Switzerland showed Bitcoin prices plummeting to the 86,000 dollar range, a seven-month low. This represents a drop of over thirty percent from its peak last October. Investors began pulling funds from high-risk assets amid growing speculation that the US Federal Reserve might postpone further interest rate cuts in December. The decisive factor was the stronger-than-expected US September non-farm payroll report, which further dampened rate cut expectations. The market's 'Fear and Greed Index' dropping to its lowest level clearly illustrates this widespread anxiety.

Now, let's turn to the second major theme: The Collapse of the Everyday – Threats from Aging Infrastructure and Public Services.

In stark contrast to the speed of technological advancement, the vulnerability of the basic infrastructure that sustains citizens' daily lives emerged as a common global problem. In the UK, there was news that the rescue plan for Thames Water, the country's largest water company, was facing criticism from potential bidders. The company, burdened with 20 billion pounds in debt and facing bankruptcy, highlights the social cost incurred by the privatization and mismanagement of public services. Furthermore, severe train disruptions at Glasgow Central Station due to damaged overhead power lines reminded commuters of the critical importance of stable basic transportation systems.

In Brazil, a gas pipeline was punctured during construction in the Bauru industrial district of São Paulo, causing the evacuation of nearby businesses. Fortunately, there were no casualties, but it serves as a warning that infrastructure management negligence can lead to large-scale safety issues. In Italy, news that safety reinforcement work on a bridge structurally similar to the collapsed 'Morandi Bridge' was nearing completion shows that anxiety over aging infrastructure persists even after past major disasters.

Governments worldwide are implementing various policies to address this economic and social instability. The Spanish government proposed raising civil servant wages by eleven percent until 2028, but unions rejected the offer as 'insufficient,' arguing it still fails to keep pace with inflation. This illustrates the gap between government efforts to ensure the financial stability of public sector workers and the reality of rising living costs.

In India, reforms to the 'Prime Minister's Crop Insurance Scheme' were announced, expanding compensation coverage to include damage from wildlife attacks and flooding due to heavy rain. This is a crucial step in strengthening the social safety net to protect farmers facing new risks from climate change and escalating human-wildlife conflict. Russia passed a law imposing a 'technical fee' on the import and production of electronic component-based products starting in September 2026. This is a clear national strategy to support the development of its domestic electronics industry and strengthen 'technological sovereignty,' demonstrating how nations are actively pursuing self-reliance amid global supply chain instability.

Our Empathy Insight: Finding 'True Value' Amid Instability.

The common sentiment running through global news yesterday is 'uncertainty' and the resulting 'anxiety.' The advancement of AI promises immense wealth and efficiency, but simultaneously breeds the fear that its valuation might be a bubble. The sharp drop in Bitcoin shows how fragile investment sentiment is toward high-risk assets, deeply connected to macro factors like the US Federal Reserve's interest rate policy.

Conversely, the infrastructure issues in the UK and Brazil remind us how easily the 'stability of the everyday'—which we take for granted—can crumble. Even if advanced technology changes the world, the quality of life cannot be maintained if basic needs like clean water, safe transportation, and stable energy supply are not met. News of large-scale layoffs at companies like Bell in Canada highlights the human cost incurred as corporations pursue AI and efficiency, amplifying the fear that the benefits of technological progress may not be shared equally.

Ultimately, the anxiety shared by citizens worldwide boils down to the question: 'Will the value I hold be sustainable?' Investors worry about the value of AI stocks, civil servants worry about the real purchasing power of their wages, farmers worry about climate damage, and ordinary citizens worry about the stability of their water and transport systems. To alleviate this anxiety, we need more than just technological development or monetary stimulus; we need efforts to restore social Empathy and trust across society.

We are currently navigating the massive wave of AI in an old, patched ship—our infrastructure. To seize this wave as an opportunity, we must strengthen the ship's foundation, ensure that the navigators, the policymakers, operate fairly and transparently, and that all passengers, the citizens, empathize with each other's anxieties and cooperate. Otherwise, the prosperity brought by AI will only benefit a few, leaving the majority adrift in an unstable daily life.

Today, we have seen both the light of advanced technology and the shadow of aging infrastructure through global news. In this contrasting reality, Empathy Keeper is once again prompted to consider what values we should pursue. I hope this time has allowed you, our readers, to deeply understand how the individual news stories we covered yesterday form one massive global trend. Dreaming of a world where everyone can empathize, I will see you in the next update. Thank you.