Thursday, June 22 — 4 significant news stories

Today ChatGPT read 867 top news stories and gave 4 of them a significance score over 7.

[8.1] Emerging markets to account for over 50% of global economic output by 2050 — The Manila Times

According to a prediction by Fitch Group unit, BMI Country Risk & Industry Research, by 2050, emerging markets (EMs) are expected to account for more than half of the global economic output. China is anticipated to become the world's largest economy, and the Philippines is projected to make it to the top 20 economies list, securing the 18th spot. This predicted change is owing to China's fervent growth. BMI also predicts that China's share in global financial output will increase from 17.3% in 2023 to 24.3% in 2050. Besides, countries like Bangladesh, Indonesia, Vietnam, and the Philippines, with booming populations and swiftly developing sectors like manufacturing, are expected to enhance their share in global GDP by 2050.

[7.1] Wall Street indexes fall as Federal Reserve Chair remains firm on 2% inflation target — Reuters

Wall Street's main indexes, including the Nasdaq, S&P 500, and Dow, fell on Wednesday as Federal Reserve Chair Jerome Powell remained firm in bringing inflation back to the 2% target, spurring worries of more monetary tightening. All S&P 500 sub-sectors fell, with the rate-sensitive real estate sector leading the declines. Megacap companies struggled to gain as yields on the 2-year treasury notes, which move in line with interest rate expectations, rose marginally after Powell's comments. Crypto firms, including Coinbase, Riot Platforms, Marathon Digital, and Bit Digital, rose between 2.6% and 9%, tracking an uptick in Bitcoin prices, which hit the highest level in six weeks.

[7.2] Global supply chains restructuring due to geopolitical tensions and pandemic lessons — Sydney Morning Herald

(this is an opinion article, but I decided to keep it for consistency)

Global supply chains are changing due to tensions between the US and China, the war in Ukraine, and the lessons learned from the pandemic. The restructuring of these supply chains, the push for re-shoring and friend-shoring of strategic production, will raise costs and have a continuing impact on inflation rates. The Fed and other major central banks are pushing against a tide that contains some unconventional factors, and this is not a conventional inflation cycle because it reflects structural changes occurring within the global economy that will play out over years, if not decades. The central banks' targets are arbitrary, and there's no science to them, just a gut feel that 2 per cent is about right based on the central banks' historical experiences. It makes sense for the Fed and other central banks to pause while waiting for more data, given how volatile, complex, and largely unprecedented today's global economic and geopolitical circumstances are.

[7.1] Paris summit aims to develop new global financial system to combat poverty and climate change — FRANCE 24 English

French President Emmanuel Macron is hosting a summit in Paris on 22-23 June to develop a new global financial system to help vulnerable countries combat poverty and climate change. The summit will bring together around 50 heads of state, representatives from international institutions and civil society. The aim is to build a new contract between the global North and South, and to lay the foundations for an overhaul of the entire global financial system by adapting the post-war Bretton Woods institutions – the International Monetary Fund and the World Bank – to today's challenges. The financial needs of the Global South are colossal, with estimates ranging from $1tn to $27tn needed to fight poverty, inequality and climate change in developing countries between now and 2030.

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