Economic News

U.S. stocks rallied broadly on Wednesday, July 10, with the tech-heavy Nasdaq hitting a record high. The surge followed the Federal Reserve’s meeting minutes reinforcing expectations of rate cuts this year and Nvidia’s brief ascent to a $4 trillion market valuation.

Britain announced a £7.5 billion ($10 billion) clean energy investment deal with Japan’s Sumitomo Group on July 9, focusing on offshore wind and hydrogen infrastructure. Investment Minister Poppy Gustafsson said it would "break grid bottlenecks." Sumitomo, a long-term energy investor, has injected over £20 billion in the UK in a decade, marking a key step in the Labour government’s push for private capital in net-zero transitions.

London’s FTSE 100 inched up 0.2% on July 9, with investors continuing to absorb the impact of U.S. tariff expansions. Advertising giant WPP (WPP.L) plunged 19%—its worst daily drop in over three decades—after slashing profit forecasts due to key client losses and shrinking new business, weighing heavily on the index.

The U.S. House of Representatives passed the Genius Act on July 17, sending it to President Trump for signature. This marks the first U.S. regulatory framework for dollar-backed crypto stablecoins. The House also approved two other crypto bills the same day.

Bank of Japan board member Junko Kotani warned on July 9 that surging prices of rice and other foodstuffs are intensifying inflationary pressures, urging vigilance against "second-round effects" that might lift household inflation expectations. Japan’s consumer inflation remains around 3%, but the BOJ’s weighted median inflation gauge—closely watched by policymakers—still lags below the 2% target. Kotani noted economic uncertainty makes it premature to pinpoint the next rate hike, with food prices a critical variable.

On July 9, the Reserve Bank of New Zealand (RBNZ) kept the Official Cash Rate (OCR) steady at 3.25%, in line with market expectations. This pause brings an end to six consecutive rate cuts since August 2023, during which the rate was slashed by a cumulative 225 basis points.

Australia’s stock market fell across the board on July 9, with the S&P/ASX 200 dropping 0.61% to 8,538.6 points. Markets reeled after Trump announced plans to impose 50% tariffs on imported copper (effective as early as late July) and 200% on pharmaceuticals, triggering a 13.1% daily surge in copper prices—their biggest jump since 1989.

Canada is pushing faster trade diversification to fend off U.S. tariff impacts: its U.S. export share dropped 10 percentage points to 68% between May 2024 and May 2025, with auto parts and steel hit hardest. Over the period, U.S.-bound exports fell C$7.7 billion (-15%), while gains to the UK, EU, and Asia-Pacific (C$5.7 billion, +42%) failed to offset the gap.

Canada’s S&P/TSX Composite Index ended a two-day slide, edging up 0.35% to 26,998.66 on July 9, with real estate stocks leading gains. Markets reacted divergently to Trump’s 50% copper tariff plan (effective as early as late July) and extended trade talks to August 1: the real estate index (.GSPTTRE) rose 0.5% on H&R REIT’s (HR_u.TO) 4.7% surge amid Blackstone acquisition talks.

Ireland’s CSO sharply revised Q1 GDP growth on July 8: annual expansion was cut to 7.4% from 9.7%, as surging U.S. pharmaceutical exports faded. The more indicative Modified Domestic Demand (MDD) was revised up to 2.0% from 0.8%, though 2024 full-year MDD growth was trimmed to 1.8% from 2.7%. GNI*, stripping multinationals’ distortions, showed 4.8% 2024 growth, highlighting GDP’s skew from cross-border capital flows.

Japan saw 4,990 corporate bankruptcies in H1 2025, up 1.19% year-on-year and the highest H1 tally since 2014. Small businesses bore the brunt: 172 firms collapsed directly due to labor shortages—a record—with 89.8% of failed companies employing fewer than 10 people. They faced a vicious cycle: forced to raise wages but unable to absorb costs, widening the "pay gap" with large corporations.

Auckland’s downtown retail vacancy rate stands at 13%, nearly three times Wellington’s 5.3%, driven by overlapping factors. Oversupply plagues areas like Newmarket post-Westfield mall opening, requiring time to absorb excess space, while hybrid work models reduce foot traffic in the city center.

Australia’s business environment improved sharply in June, with NAB’s Business Conditions Index jumping 9 points to a 13-month peak on July 9, while confidence rose for the third straight month (+3 points). All key metrics strengthened: sales surged 10 points, profitability gained 9 points, and employment edged up 2 points. Capacity utilization hit 83.3%, with future orders climbing 2 points, signaling a shift from early-year weakness and stronger second-half momentum, noted NAB’s Australian Economics Head Gareth Spence.

Microsoft has achieved a remarkable resurgence, fueled by its prowess in cloud computing through Azure and strategic collaboration with OpenAI in artificial intelligence. With Azure capturing 23% of the global cloud market share and the explosive popularity of ChatGPT accelerating the commercialization of its AI tools, the tech giant has solidified its position as a leader in the digital landscape.

Canada’s Ivey PMI climbed to 53.3 in June, a four-month high, signaling accelerating economic activity. However, underlying concerns emerged: the employment sub-index dipped below 50 (49.5), while the price index surged to 70.2, highlighting mounting inflation pressures.

Saudi Aramco, the world's largest oil company, reported a net profit of $88 billion in the first half of 2023, significantly influenced by oil price fluctuations. The company's substantial earnings are a boon for Saudi Arabia's economy, as it continues to be a major player in the global energy market.