Japan ready to take decisive currency action as yen hits 40-year low 

Japan's Finance Minister, Satsuki Katayama, has said that Japan will take decisive action in the currency market if needed, signalling Tokyo's readiness to intervene in the market as the yen slid to a 40-year low. Chief Cabinet Secretary Minoru Kihara also said on Wednesday the government was ready to "respond as appropriate at any time" in a sign of Tokyo's alarm over the sagging currency, which pushes up the cost of imports and broader inflation.

The US dollar stayed near a fresh 39-year high in the lower 163 yen range on Wednesday, as safe-haven buying driven by escalating tensions in West Asia appeared to outweigh Japan's warning that it was ready to take appropriate action if needed.

The yen's weakness has become a growing issue for Japan's policymakers, given its role in driving up import prices and household living costs. Decades of ultra-loose monetary policy and sustained heavy government borrowing have contributed to yen weakness, although these are not the sole drivers.

The resulting currency depreciation raises import costs and Intensifies concerns about Japan's long-term economic sustainability.

Reference Sources

1. asiaone - Japan ready to take decisive currency action as yen hits 40-year low, Money News - AsiaOne
2. bernama - Dollar Holds Above 163 Yen, Near 39-year High Despite Japan Intervention Warning
3. nikkei - US fund managers shy away from 'significantly undervalued' yen
4. bloomberg - Japan Has Spent Billions to Prop Up the Yen. Why Isn’t It Working?
5. thestarmy - Japan’s experience offers important lessons for Malaysia

EU imposes new round of sanctions against Russia

The European Union (EU) has agreed to impose a new round of sanctions against Russia over its war in Ukraine, creating the largest sanctions package in four years.

The package also includes measures targeting war crimes, internal repression, and malicious Cyber activities.

The deal included a proposed ban on shipping Russian gas outside of the EU, but Greece objected because of contracts Greek companies have had in place since 2015.

The carve-out blocks EU countries from signing new shipping deals but allows Greece to continue its contract.

The EU also agreed to freeze its price cap on Russian crude oil for a year.

The cap is now at $44.10 per barrel and was about to rise to about $58 per barrel in response to fighting in Iran.

Reference Sources

1. upi - EU adds new sanctions against Russia with Greek LNG shipping carve-out
2. dwen - EU imposes new round of sanctions against Russia
3. france24 - War in Ukraine: EU agrees 21st round of sanctions on Russia
4. dwen - EU agrees on new round of sanctions against Russia
5. thestarmy - EU ambassadors agree 21st sanctions package against Russia, EU diplomats say

Trump plugs states, utilities into pledge for Big Tech to pay for data centers’ energy bills

President Donald Trump has expanded his "ratepayer protection pledge" to a coalition of Governors, state legislatures, utilities, and data center developers, demanding that tech giants foot the energy bills for their power-hungry data centers rather than passing those costs onto American families.

The White House developed the pledge to counter criticism of the centers.

The nonbinding pledge may have a limited impact because opponents also cite concerns over noise, water use, and environmental damage. One of the biggest risks to the artificial intelligence boom is Americans' opposition to building the data centers needed to power it.

A June poll showed 57% of Americans oppose building data centers in their communities.

Reference Sources

1. washingtontimes - Trump plugs states, utilities into pledge for Big Tech to pay for data centers’ energy bills
2. newyorkpost - Trump expanding crackdown on data centers paying for their electrical costs
3. usatoday - 23 governors sign Trump's cost pledge for data centers, backbone of AI
4. barrons - Utilities Promise to Protect Electric Bills. It Won’t Stop Data Center Backlash.
5. usnews - Trump Expands a Voluntary Pledge to Protect Consumers From High Utility Bills From AI Data Centers

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

Have you read?

• Wistron Opens First US AI Server Plant in Texas
• Taiwan to Choke Mobile Internet Speed to Simulate War, Disasters
• Jeff Bezos and UK Government Back CuspAI to Reinvent Chip Materials with AI

Uploaded by Ian Huang