Financial Times

• ASEAN's financial landscape is undergoing a strategic reshaping as companies diversify manufacturing locations and investors target fast-growing regional economies. • The region is evolving into a dual-purpose entity, strengthening its position as both a global production hub and a critical financial connector. • Singapore is playing a pivotal role in this shift, serving as a primary coordination point for regional trade, liquidity, and risk management.

• Foreign Portfolio Investors (FPIs) shifted to a buying trend in the Indian financial sector during the second half of June. • FPIs purchased financial stocks worth ₹14,634 crore, reversing a trend from the first half of the month where they sold ₹11,263 crore. • This surge represents record fortnightly inflows, signaling a strong return of foreign confidence in India's financial markets.

• Global financial firms are shifting their Asia-Pacific expansion focus toward South Korea, according to a recent survey conducted by ASIFMA and KPMG. • This strategic pivot is driven by South Korea's regulatory clarity, stable policy environment, and emerging capital market opportunities. • Conversely, firms are adopting a more cautious stance regarding investments in China and India due to operational challenges and geopolitical risks.

• A survey by ASIFMA reveals that two-thirds of 34 global financial firms plan to expand their Asia-Pacific operations over the next three years. • South Korea has emerged as a primary pivot point for growth, while firms express increased caution regarding investments in China and India. • Singapore continues to maintain strong appeal for financial institutions due to its strategic, multipolar geopolitical positioning.

• The South Korean stock market is experiencing an unprecedented "bipolar" trend in 2026, marking it as the most volatile year in history. • Market instability is highlighted by the KOSPI surpassing volatility levels seen during the global financial crisis, with the "sidecar" trading halt triggered 29 times. • Researcher Hyojin Kim of Shin Young Securities notes that such extreme two-way volatility typically signals a major crisis or the bursting of a market bubble.

• Swiss financial regulator Marlene Amstad is urging banks and watchdogs to rapidly adopt new technology to combat escalating cybersecurity threats amplified by AI. • Amstad emphasized the critical need for faster vulnerability patching, as AI models are increasingly being used to expose systemic risks. • FINMA is actively promoting AI adoption among global regulators to strengthen financial systems, with a particular focus on securing digital assets.

• France and Germany are seeking a radical reorganization of the EU's foreign policy service to better address current geopolitical challenges. • Proposed changes include limiting the powers of EU diplomacy chief Kaja Kallas and her department, potentially returning those authorities to the European Commission. • Simultaneously, a financial dispute has emerged as Poland demands the return of approximately 450 million euros spent on military aid for Ukraine.

• France and Germany have agreed to abandon the joint development of the Future Combat Air System (FCAS), a next-generation fighter project valued at €100 billion. • The decision follows reports from Reuters and the Financial Times, signaling a significant breakdown in the strategic military cooperation between the two European powers. • Separately, Denmark’s National Audit Office revealed that F-35 fighter jet deliveries will cost $2.2 billion more than originally projected, accusing the government of attempting to conceal the price increase.

• Skanska has been ranked as Europe's Best Employer 2026 in a prestigious list published by the Financial Times in partnership with Statista. • The company maintains a diverse business model, with 90.5% of net sales coming from building and infrastructure construction and 9.3% from real estate development. • Geographically, Skanska's operations are led by the United States (48.3%), followed by Sweden (18.5%), Norway (13%), and the United Kingdom (9.6%).

• France is seeking to join a joint British-German initiative to develop long-range missiles capable of striking deep into Russian territory, according to the Financial Times. • Trilateral negotiations regarding Paris' accession to the missile program are expected to take place soon to strengthen European defense capabilities. • Separately, Norway's Transport Minister Jon-Ivar Nygård has expressed interest in a plan to facilitate the rapid transfer of military personnel and equipment across the EU during crises.