Act

• China's manufacturing Purchasing Managers' Index (PMI) grew in June, though the growth rate fell slightly below market expectations. • The data indicates a slower-than-anticipated expansion in the industrial sector, reflecting potential headwinds in production and demand. • This trend is significant as it suggests a cooling of manufacturing momentum, which could impact China's broader economic recovery and global trade.

• Japan's final Manufacturing PMI for June was reported at 54.8, slightly lower than the preliminary 54.9 but higher than the previous 54.5. • Japanese factories are experiencing their strongest quarter in over a decade, driven in part by global stockpiling efforts linked to ongoing war conflicts. • Regional economic trends show South Korean exports growing at a decades-high pace due to record chip sales, while the Japanese Yen has dropped to its weakest level since 1986.

• Japan's Jibun Bank Manufacturing PMI for June was reported at 54.8, slightly missing the forecasted value of 54.9. • The reading indicates continued expansion in the manufacturing sector, as any figure above 50.0 signals growth. • This data is critical for economists and FX experts to gauge the health of Japan's industrial output and potential monetary policy shifts.

• Thailand's manufacturing sector experienced a rebound in June, with the Purchasing Managers' Index (PMI) indicating growth in the goods-producing sector. • New business inflows rose for the 14th consecutive month, fueled by new client acquisitions, effective marketing, and large orders from existing customers. • The recovery is significant as it demonstrates a sustained upward trend in industrial demand and operational expansion.

• Japan's manufacturing sector expanded for the sixth consecutive month in June, according to the latest S&P Global Purchasing Managers’ Index (PMI). • The PMI rose to 54.8 in June from 54.5 in May, aligning with previous preliminary flash estimates. • This growth is significant as any reading above the 50.0 threshold indicates sector expansion, while readings below signal contraction.

• The UN Independent International Scientific Panel on Artificial Intelligence released a preliminary report on Wednesday warning that AI is advancing faster than government regulatory frameworks. • The report highlights that while AI can drive transformative breakthroughs in healthcare, education, agriculture, and scientific research, it requires responsible implementation to be effective. • This development is critical because the window to establish a cohesive global governance system is closing, risking a lack of oversight for a powerful technology.

• Indian equities rebounded after two days of losses, with the Sensex gaining 444 points and the Nifty reclaiming the 24,000 level. • Market sentiment was bolstered by easing geopolitical tensions, optimism regarding trade deals, and a decline in global oil prices. • Analysts from LKP Securities note that while the Nifty remains range-bound and lacks strong directional momentum, the short-term trend remains positive.

Trump and US officials opted to keep USMCA alive on short leash of annual reviews rather than longer term renewalDonald Trump has refused to renew the North American trade pact he once championed as his signature deal, opting instead to keep it alive on a short leash of annual reviews rather than committing to another 16 years.Wednesday was the deadline built into the United States-Mexico-Canada Agreement (USMCA) for the three countries to jointly decide its fate, which is set to expire in 2036. Continue reading...

EU urged to make UK exempt from rules that risk becoming the most damaging consequence of Brexit yetThe EU’s car industry has called for the UK to be fully included in new “Made in Europe” rules that threaten to shut out British manufacturers from their biggest export market.The European Automobile Manufacturers Association (Acea) on Wednesday urged Brussels to give the UK, Turkey and Morocco “justified, targeted exemptions” to the rules, which will require cars and parts to be made within the EU to qualify for subsidies or public procurement. Continue reading...

• ISC2 announced the introduction of interactive AI Incident Rooms for its 2026 Security Congress, scheduled for October 24-28 in Denver. • These new learning formats are designed to provide cybersecurity professionals with hands-on exercises to simulate and manage AI-related security incidents. • The initiative matters as it addresses the growing need for practical, real-world training to combat evolving threats powered by artificial intelligence.

Unions reject proposed below-inflation increase which comes as corporation prepares to cut thousands of jobsBBC staff fear a strike is on the horizon at the broadcaster after anger over a below-inflation pay rise offer made amid plans to cut thousands of jobs.There is widespread consternation among staff at the offer of a 1% increase, seen as derisory given that inflation is running at almost three times that level. It also comes with staff across the BBC worried about their jobs, as the corporation is in the process of rolling out cuts and redundancies that could result in as many as 2,000 people leaving over the next three years. Continue reading...

• Indian markets are trading in positive territory, with the Nifty Pharma index emerging as a top gainer due to strong export demand and stable earnings expectations. • Overall gains are being restricted by geopolitical instability, specifically reports that Iran has rejected diplomatic discussions with visiting US envoys. • Investors are avoiding aggressive risk-taking as uncertainty grows regarding the sustainability of the recent ceasefire between the US and Iran.

• The Supreme Court concluded its term with a 6-3 majority ruling that struck down specific restrictions on political speech, which Justice Brett Kavanaugh described as a "severe infringement" on First Amendment rights. • The decision aligns with the precedent set by the Citizen United case, which previously blocked efforts to outlaw certain political speech occurring shortly before elections. • This ruling is significant as it demonstrates that the current Court is not simply "rubber-stamping" White House priorities, maintaining a level of judicial independence.

• Market trading during the final session of the quarter was driven by end-of-quarter repositioning, comments from the ECB Sintra forum, and new economic data. • July inflation figures for EMU members showed slight downside surprises, with Germany reporting HICP of -0.2% M/M (2.4% Y/Y) and France reporting -0.3% M/M (2% Y/Y). • Italy's data showed a slight increase of 0.1% M/M, resulting in a yearly inflation rate of 3.1%.

• A Chinese actor has returned to his hometown to sell vegetables at a local market after losing his acting career. • The actor previously worked grueling schedules of up to 15 hours a day filming short-form dramas. • This career shift is attributed to the rapid integration of AI technology, which is increasingly replacing human actors in China's short drama industry.

• Asia's manufacturing sector experienced a boost in June driven by the global AI boom, which increased demand for technology-related goods. • This growth helped offset economic drags caused by the Iran war, providing critical relief for the region's export-dependent economies. • Key indicators showed expansion across emerging markets, with Malaysia's index rising to 50.7 from 49.9 and the Philippines holding steady at 50.9.