The Economy Markets

"Pause Rather Than Hike" Narrative Gains Momentum Following U.S.-Iran Peace MOU Bond Markets and Crude Prices React Immediately, Though Timing of Disinflation Remains Uncertain Japan Struggles Under Inflation and Yen Weakness as Even a 1% Policy Rate May Offer Limited Relief

Key agenda items at the G7 summit include the Middle East conflict, support for Ukraine, and AI governance Chinese state media lash out at the G7, calling for a more “open and inclusive” approach The Shanghai Cooperation Organisation (SCO) stages its own event in parallel with the opening of the G7 summit

Memory Industry Reshaped Around HBM Simultaneous Expansion of Oversupply Risks and Demand Concentration AI Supercycle Debate Echoes the New Economy Narrative A growing number of analysts argue that the “death cycle” that has long weighed on t

China begins sea trials of extra-large unmanned submarines Expansion of “unmanned force”–centered intelligent warfare doctrine The United States also develops unmanned undersea capabilities and deploys them in actual operations

Retail sales decline in May for the first time since December 2022 Industrial output remains resilient, but domestic demand weakness persists Property downturn remains the root cause, making prolonged deflation increasingly likely

The Gulf oil shock is no longer only an energy-price shock Low-income workers feel the first damage through earnings and job-finding losses Gulf economies now face a deeper test of fiscal strength, investor trust, and capital stability

Mainstream media status no longer guarantees public trust Trusted information must be proven through visible evidence and repeated scrutiny AI makes misinformation cheaper, so truth must become easier to test Today, a new warnin

Japan’s weak yen is making economic security more expensive Cheap Chinese imports now help Japan contain inflation Only productivity growth can weaken the yen dependency trap This yen story has a number that explain

India’s size gives it influence, but not yet great-power depth India middle power realism is not a weakness; it is the path to durable power Asian middle powers need practical coalitions, not another great-power patron

Sweden’s state-owned Vattenfall to source SMRs from the U.K.’s Rolls-Royce GE Vernova entered the competition as an established operator with extensive experience and technological capabilities Rolls-Royce, despite lacking commercial operating experience, benefits from Europe-first momentum

Low-cost Chinese AI targets corporate demand for cost savings in the B2B market ChatGPT maintains a dominant position in the B2C segment, while Chinese models continue to struggle for influence Government controls raise concerns over talent flight, while AI-driven economic spillover effects remain limited

Boeing withdraws after Lockheed Martin from U.S.

Japan Turns to Korea to Rebuild LNG Carrier Industry Rare Earth Supply Race With the U.S.

BOJ Moves Back Toward Tightening, Highest Interest Rate in 31 Years Within Reach Expectations for Sustained U.S.-Japan Rate Differential Drive Record Yen Short Positions Stabilizing Oil Prices Amid Hopes for an End to the War Add Uncertainty to Tightening Path

Launch of discussions on the first accession chapter Breakthrough enabled by Hungary’s change in government Potential reshaping of Europe’s postwar security architecture The European Union (EU) has formally launched the accession process for U

NPEs Under Fortress Umbrella File Complaint With U.S. ITC Republican Lawmakers Join Calls for Action TSMC’s Critical Role in Semiconductor Supply Chains Raises Odds of Settlement Taiwan Semiconductor Manufacturing Co.

Trump speaks with Putin for nearly an hour, stressing the need to halt the war Also discusses battlefield conditions and peace proposals with Zelenskyy Diplomatic push on Ukraine resumes following efforts to contain the Middle East conflict <

U.S.

Unemployment alone can hide a weak labour market Payrolls, participation and hours reveal the real bottleneck Policy must treat labour supply as a moving target Back in June 2022, the U.S.

U.S.