The Global Overview
China’s Engine Sputters
China’s economy is showing renewed signs of weakness, with key indicators for July suggesting a loss of momentum (WSJ). This slowdown in the world’s second-largest economy increases pressure on Beijing to implement further stimulus measures. From our perspective, this highlights the inherent instability of state-managed capitalism, where market signals are often suppressed until problems become acute. The looming policy decisions will test whether Beijing opts for market-oriented reforms or doubles down on debt-fueled, state-directed investment, with significant consequences for global trade and commodity prices.
Kiwis Take Flight
New Zealand is experiencing its largest population exodus in 13 years, as citizens leave in search of better opportunities amid rising unemployment and stagnant economic growth (Strait Times). A significant portion of those emigrating are under 30. This is a stark illustration of individuals “voting with their feet”—a market signal that current domestic policies are failing to foster a dynamic environment for prosperity and entrepreneurship. When human capital flees, it serves as a potent critique of an economic framework that curtails individual ambition and financial liberty.
Washington’s Credibility Gap
In the U.S., President Trump faces growing skepticism on the world stage and resistance at home. A new poll reveals that more than half of Americans lack confidence in his ability to manage the Russia-Ukraine war, a sentiment that could constrain his foreign policy options (Politico). Domestically, tensions between the administration and civil society are evident as more than 14,000 people have signed a letter urging Harvard University to resist government pressure and refuse to pay a fine (Strait Times), defending institutional autonomy against perceived executive overreach.
Stay tuned for the next Gist—your edge in a shifting world.
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