Author: Jack Mulligan

Opposition Gains Could Stall Rate Normalization Japan’s central bank may face increasing political pressure to keep interest rates near zero, as opposition parties campaigning on tax cuts and looser monetary policy are expected to gain ground in the July 20 election. Polls suggest that Prime Minister Shigeru Ishiba’s ruling coalition could lose its majority in the upper house, further complicating the government’s already fragile hold on power. With the governing bloc already a minority in the lower house, a legislative gridlock could hand smaller parties more leverage in fiscal and monetary policy debates. Many of these parties favor continued low…

Comfort Threshold Rises to $839,000 in 2025 Americans now believe it takes significantly more money to feel financially comfortable. According to Charles Schwab’s 2025 Modern Wealth Survey, the average figure cited to achieve comfort is $839,000 — up from $778,000 just a year ago. When asked what it takes to be considered “wealthy,” respondents put the number at $2.3 million, a notable jump from $1.9 million in 2021. The rising figures reflect growing concern over the cost of living, high interest rates, and an increasingly uncertain economy. Nearly two-thirds of survey participants said they feel it takes “quite a bit…

Deal Marks End of Walgreens as Public Company Shareholders of Walgreens Boots Alliance have approved a $10 billion acquisition offer from private equity firm Sycamore Partners, marking a major turning point for the 123-year-old drugstore chain. Under the terms of the agreement, Walgreens shareholders will receive $11.45 per share, with the potential for an additional $3 per share tied to the future monetization of the company’s stake in VillageMD. The deal, originally announced in March, will take Walgreens private for the first time since 1927. CEO Tim Wentworth said the partnership with Sycamore will allow the company to implement its…

Central bank expected to lower benchmark rate to 4.75% Chile’s central bank is widely anticipated to reduce its benchmark interest rate by 25 basis points to 4.75% at its upcoming monetary policy meeting on July 28, according to a poll of analysts released Thursday. The expected cut would continue the bank’s ongoing easing cycle aimed at supporting economic activity as inflation begins to moderate. Traders and economists surveyed by the central bank project that the easing trend will persist through the end of the year, with the policy rate forecast to fall to 4.5% within the next five months. The…

Governing board leans toward smaller rate cuts Most members of the Bank of Mexico’s governing board now favor a more cautious pace of monetary easing, according to minutes from June’s rate decision. After four consecutive cuts, including a 50-basis-point reduction last month, the majority of policymakers suggest the central bank may be approaching the limit of aggressive action as inflation remains above target and economic growth stays sluggish. All four board members who supported June’s half-point cut expressed support for scaling back future adjustments. At least two suggested that the June cut should be the final one of that magnitude,…

Fifth consecutive monthly growth masks rising competition risks China’s car sales rose 18.6% year-over-year in June to 2.1 million units, extending a five-month growth streak, according to the China Passenger Car Association (CPCA). First-half sales climbed 11.2% to 11.1 million vehicles, signaling sustained market momentum despite growing concerns among electric vehicle makers. Sales of electric vehicles (EVs) and plug-in hybrids remained robust, surging 29.7% from June 2024 and accounting for 52.7% of total car sales. That’s up from a 28.2% share the previous month. However, major EV players showed signs of deceleration. BYD, Li Auto signal weakening momentum Local EV…

Trump’s trade campaign accelerates revenue surge U.S. Treasury Secretary Scott Bessent announced Tuesday that the country has already collected around $100 billion in tariff revenue so far this year, and that total could triple to $300 billion by the end of 2025. The surge follows President Donald Trump’s renewed trade offensive, which introduced sweeping tariff hikes in the second quarter. Speaking at a White House cabinet meeting, Bessent said the new tariffs — including a blanket 10% duty on most imports and increased rates on steel, aluminum, and autos — only began to take effect recently. “So we could expect…

China’s shifting focus draws investor attention While the U.S. remains the world’s largest economy, investors and financial advisors would be remiss to overlook China’s growing significance. As the second-largest global economy, China plays a critical role in shaping worldwide market trends. Ongoing tariff tensions with the U.S. have introduced new uncertainties, but China is actively adapting its strategy to offset external pressures. Recent insights from American Century Investments highlight how China is moving to stimulate domestic consumption. Measures include local employment subsidies, legislation for paid annual leave, and policies to stabilize its stock and real estate markets. These efforts reflect…

Tariff shock sends copper prices to record highs President Donald Trump said Tuesday he will impose a 50% tariff on all copper imported into the United States, marking the fourth broad tariff of his second term. The announcement came during a Cabinet meeting, though the administration has not provided a specific timeline for implementation. “Today we’re doing copper,” Trump said, confirming that the tariff rate would be 50%. The White House declined to comment further on when the measure would take effect. The tariff follows a Section 232 investigation launched in February, which allows the president to impose trade restrictions…

Strategic expansion taps into Europe’s AI infrastructure push U.S. semiconductor startup Groq has opened its first data center in Europe, selecting Helsinki, Finland as its operational base. The facility, developed in partnership with Equinix, marks a major step in Groq’s global expansion as it aims to meet surging demand for AI inference capabilities across the continent. Groq, valued at $2.8 billion and backed by the investment arms of Samsung and Cisco, builds Language Processing Units (LPUs) optimized for AI inferencing—a critical task where trained models analyze real-time data. Unlike Nvidia’s dominant GPUs, which are essential for training large-scale models, Groq’s…