The Economy Markets

Europe’s productivity lags mainly because high labour costs push firms to scale elsewhere Silent process innovations thrive, yet much value escapes when production is off-shored Cutting the domestic cost of work is the decisive step for renewed European growth

CBDC neutrality feeds outgoing funds straight back to banks, keeping the system calm Automatic, wide-access backstops can avert SVB-style stampedes in sovereign digital money We must lock neutrality into courses, drills, and law before the next flash run arrives

Gold is rising, but the dollar still anchors the system Reserve currencies change only when power shifts run deep Today’s trend is diversification, not real displacement The US dollar’s role as the main global reserve currency is w

Rapid ageing is shattering Asia’s cherished iron rice bowl security Japan, South Korea and China each face pension gaps despite different fiscal strengths Embedding lifelong learning into work policies is the region’s best path to sustainable pensions

Widening gap between early mass-production expectations and realityReliance on external suppliers for key components, including AI chips

Vulnerabilities in responding to individual warheads repeatedly exposedGrowing anti-war sentiment undermines the rationale for war

The U.S.

Infrastructure race to address power shortages intensifiesSignificant technical hurdles remain in launch and operations

Samsung Electronics, the “front-runner in HBM4,” makes an AI semiconductor push with a $73.1 billion investment Secures Nvidia, AMD, and OpenAI as customers, sharply expanding its market clout SK Hynix, the incumbent HBM powerhouse, faces mounting pressure to overhaul its technology strategy

Caught in a Bind Amid Chinese Competition Limits to Recovery Even After Sweeping Voluntary Retirements Accelerating Business Overhaul Through Physical AI Ryu Jae-cheol, chief executive officer of LG Electronics, is explainin

Uncertainty over loan repayments for some companies comes into focusQuarterly redemptions intensify internal liquidity pressure

Semaglutide patents expire in China and India A stream of generic drugs priced at one-eighth of the list price stands ready Broader access to obesity drugs begins in earnest Wegovy/Photo=Novo Nordisk

Digital markets are moving from dynamic pricing to personalized pricing That shift lets firms charge people based on data, not just supply and demand Consumer protection now needs a right to a fair, impersonal price 93% of onli

Korea faces an energy shock, not an imminent semiconductor blackout Oil dependence matters, but Korea’s power grid is stronger than alarmist headlines suggest The real lesson is to upgrade energy resilience, not confuse vulnerability with collapse

Supply chain risk goes far beyond rare earths Hormuz now matters for tech inputs, not just energy Resilience needs diversification and better risk mapping In 2024, the Strait of Hormuz facilitated over one-quarter of global sea

Japan cannot base China policy on dislike alone China’s innovation scale makes selective engagement necessary Japan needs pragmatic China literacy, not emotional distance In 2024, China submitted 70,160 international patent app

Japan proves China dependence is hard to replace, even after years of effort The real task is de-risking, not full decoupling That means coordination, processing capacity, and skilled labor Fifteen years after

Urban density reduces the cost of accessing jobs, education, and daily services When supported by housing and transport, concentration increases efficiency and opportunity The real risk is not density, but scarcity that turns access into exclusion

Europe’s energy shock did not end in 2022 Poor households cut other essentials before they cut heat or power That is why targeted energy subsidies now matter for both welfare and education Targeted energy subs

Rising fears of collapsing Treasury demand heighten market anxietyOil-driven inflation pressures raise prospects of rate hikes