US and Japan coordinate yen defence against speculative bets

The United States and Japan's decision to intervene in the yen market was preceded by months of preparation and closer-than-usual coordination between the two governments over exchange-rate policy.

The joint effort marked a rare public alignment between Washington and Tokyo on a currency issue that has historically been a sensitive diplomatic matter.

Japan has previously attempted to slow sharp yen declines through unilateral intervention, but those actions failed to establish lasting support for the currency.

This time, backing from US Treasury Secretary Scott Bessent for a stronger yen provided Japanese officials with additional support in their efforts to counter speculative selling. For Japan, the weak yen has pushed up import costs and increased pressure on household living expenses, creating challenges for successive governments, including that of Prime Minister Sanae Takaichi. For the United States, a weaker yen reduces the trade advantage expected from President Donald Trump’s administration.

The entry of the US into Tokyo’s attempts to strengthen the yen decidedly changes the game. Having Washington on board brings important potential benefits — and no small ones.

The yen leapt on Monday, while stocks and bonds fell, after Tokyo confirmed a rare joint currency intervention with Washington to pull the Japanese currency off Four-Decade lows.

Reference Sources

1. nationthailand - US and Japan coordinate yen defence against speculative bets
2. bloomberg - How Safe Is the Yen Under the US Umbrella?
3. bloomberg - Why a Weak Yen Is America’s Problem
4. bangkokpost - Yen leaps, stocks and bonds drop as Japan confirms joint intervention with US
5. nikkei - Yen climbs to 155 per dollar as traders remain on intervention alert

China's AI industry tops 1.2 trln yuan in 2025, up 40 pct

China's artificial intelligence (AI) industry is expected to exceed CNY 1.2 trillion ($176.7Bn) in 2025, up 40% YOY, according to a research Institute under the Ministry of Industry and Information Technology.

The China Academy of Information and Communications Technology (CAICT) noted that China was home to more than 6,600 AI companies as of June 2026, representing 15% of the global total. The country has developed a complete industrial system spanning Foundational infrastructure, models and frameworks, and sector-specific applications.

The application segment accounted for 55% of the entire AI industry chain in 2025, up 22% YOY.

The foundational segment accounted for 38% and grew 59%, while the segment covering models and Frameworks made up 7%.

China's foreign trade has kept on gaining steam, following the "new three" (NEVs, lithium batteries, and PV), a "next new three" (AI, robotics, and innovative medicine) is emerging as the new growth driver.

AI-related product exports stood out in the first half of 2026, accounting for 22.7% of total exports and contributing 8.6% percentage points to overall trade growth.

This surge boosts China's high-quality development and carries global significance for sustainable development.

However, advanced applications bring greater security risks, as seen in the recent OpenAI "Jailbreak" incident.

Reference Sources

1. xinhua - China's AI industry tops 1.2 trln yuan in 2025, up 40 pct
2. globaltimes - Bridging ‘tech divide’ through open-source: The iterative logic of China's AI
3. globaltimes - Qi Xiangdong: AI development needs both speed and safety
4. xinhua - Xinhua News | China's AI industry tops 1.2 trln yuan in 2025, up 40 pct

AI is helping Grab ship products 3 times faster, CFO says, as company raises forecasts

Singapore-based ride-hailing and delivery company Grab Holdings has raised its financial outlook for 2026, driven by stronger demand in its Ride-Hailing business and the expansion of its Fintech operations in Indonesia.

The company raised its revenue outlook to $4.1Bn to $4.15Bn, up from a previous range of $4.04Bn to $4.1Bn. Its forecast for adjusted EBITDA has also been raised to a range of $720M to $740M, compared with its earlier guidance of $700M to $720M. Grab has banked on features including order bundling and a Budget-Friendly tier called "Saver" to target Cost-Conscious customers grappling with higher fuel prices following the Iran war.

The upbeat projections and a new US$750M share buyback programme pushed shares of the Nasdaq-listed company up 4% in extended trading. Grab CFO Peter Oey said the technology has helped the company ship products three times faster, translating into better margins and a more efficient cost structure. Higher fuel prices have pushed up ride and delivery fares in Southeast Asia, weighing on demand at Singapore-based Grab and its peers.

The platform companies can cushion the impact by offering incentives to riders and consumers, though that risks putting pressure on their already thin profit margins.

Reference Sources

1. nikkei - Grab raises guidance as strong ride-hailing demand lifts Q2 profit
2. thesunmy - Grab lifts revenue, profit forecasts on AI, incentives
3. asiaone - Grab lifts 2026 forecasts on solid delivery, ride-hailing demand, Money News - AsiaOne
4. cnbc - AI is helping Grab ship products 3 times faster, CFO says, as company raises forecasts
5. bloomberg - Grab Boosts Earnings Forecast on Robust Ride, Delivery Demand

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

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