The Economy Markets

Bessent Moves to Halt Yen Slide, Issues Public Warning to Speculators Scale and Staying Power of Intervention Questioned Despite U.S.-Japan Policy Coordination Repricing of Fiscal Risks Could Spread Shocks Across Financial Markets and Real Economy

Heatwaves are becoming a recurring driver of inflation Harvest damage transmits heat into measurable food-price shocks Central banks are building tools to track this pattern On June 21, France issue

Weak yen is suppressing Japanese outbound travel Stronger purchasing power historically increased overseas travel Lower passport fees cannot offset stagnant household incomes In 2025, Japan welcomed 42.7 million visitors,

Europe seeks to supply Ukraine with Patriot missiles through PURL Ukraine, battered by Russian offensives, also appeals to South Korea and Japan for support U.S.

Yen rally pushes currency above $0.0065 BOJ tightening cycle accelerates, signaling yen carry trade unwind Trump presses Fed for rate cuts despite narrowing U.S.–Japan rate gap The yen has begun tracing a pronounced upward trajectory.

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U.S.

Lower-Income Spending Accelerates as Affluent Consumption Holds Steady Wage Recovery, Family Support and AI Employment Effects Converge ‘C-Shaped’ and ‘G-Shaped’ Diagnoses Gain Traction as the ‘K-Shaped’ Divide Narrows

Norwegian data show portfolio adjustment takes years, not months Slow adjustment turns dangerous when equity premium shifts are abrupt Policy and portfolio implications diverge based on shock type When Norway aboli

Pension funds are shifting fast from defined benefit to defined contribution Netherlands offers the clearest real-time test of the transition Falling long-term bond demand may be pushing US Treasury yields up <

Fed signals possibility of further tightening after holding rates steady in July Global financial markets treat ECB and BOJ rate hikes as virtually certain Heat waves, drought and military conflicts compound inflationary pressures worldwide

U.S.-China technology rivalry continues as AI emerges as a core summit agenda item China protests semiconductor export controls; U.S.

LVMH’s market capitalization plunges amid weakening Asian demand and higher retail prices Fallout from price hikes spreads across Europe’s luxury goods and high-end automotive markets Shifting economic fortunes in Europe and Asia erode the “symbolic premium” of European products

Generative AI absorbs document drafting, data analysis and basic coding Entry-level hiring freezes as demand for electricians, plumbers and welders surges Occupational polarization accelerates, eroding the college-degree premium

Meta's two-hour limit counts accounts, not people Fake profiles and borrowed accounts already defeat similar bans No country agrees on the correct age or hour In Australia, where the ban on social media accounts for under-16s

EU steps up efforts to build an independent space ecosystem and support European companies White House pressures U.S.

ICBC, Agricultural Bank of China, and insurers among eight firms to raise $50.2 billion in capital Expanded bank lending capacity aimed at reviving investment and consumption Weak household borrowing and concentration of corporate lending constrain spillover to domestic demand

U.S. Expands Naval MRO Cooperation with Asian Partners Including South Korea, Japan, and the Philippines Overloaded U.S. Navy Maintenance System Beset by Breakdowns and Prolonged Deployments U.S.

Rising U.S.

Poland deliveries feed through in earnest, sending Hanwha’s defense revenue soaring Production footholds in Europe and the US overcome the limits of finished-system exports Preserving manufacturing efficiency and completing localization key to further growth