Business
This move to enlarge the satellite constellation responds to increased security needs and changing defense operational requirements across Europe. The upgraded design features technical improvements to the baseline satellite hardware, along with an additional 66 low Earth orbit satellites dedicated to defense forces, national security agencies, and emergency responders. Technical evaluations indicate that this expansion will boost secure governmental communication capacity by 60 percent within the EU and by 54 percent worldwide, strengthening regional response capabilities during complex crises and infrastructure emergencies.
In June, South Korea achieved a historic current account surplus of $49.73 billion, driven mainly by a significant surge in semiconductor exports. The Bank of Korea reported that this figure surpasses the previous monthly record of $38.61 billion set in May. June marked the first time the monthly surplus exceeded $40 billion. The growth was largely fueled by robust goods exports, as technology shipments expanded at a much faster pace than imports.
In July, manufacturing output across the Eurozone expanded at its fastest rate in nearly four and a half years, even as new orders continued to show weakness. The S&P Global Eurozone Manufacturing Purchasing Managers’ Index increased to 51.9 from 51.4 in June. This reading marked the highest since April and maintained a level above the 50 threshold that indicates growth. The final figure narrowly missed an earlier estimate of 52.0, signaling an improvement in factory conditions at the beginning of the third quarter.
In the G7 group, annual headline inflation fell to 3.0% in June from 3.5% in May, primarily driven by a 5.2-point decrease in energy inflation. Every G7 nation experienced a decline except Japan, where inflation rose slightly by 0.2 point to 1.7%. Japan’s uptick coincided with energy inflation shifting from a negative rate to nearly zero. The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The UK economy continues to avoid recession, yet new forecasts indicate mounting pressure from global energy supply disruptions. EY has upgraded its 2026 growth projection to 0.9%, up from 0.8% in May, while maintaining its 2027 outlook at 1.2%. This optimistic forecast presumes the Strait of Hormuz will reopen by September, resulting in reduced tanker traffic. In contrast, EY’s adverse scenario anticipates a growth rate of 0.5% this year and a slight contraction of 0.2% in 2027.
U.S. stocks climbed as Big Tech gains and falling oil prices lifted market sentiment. Technology and communication services stocks largely drove the upward momentum. Meta Platforms and Alphabet contributed to a 4.3% rise in the S&P 500 communication services sector, making it the strongest of the 11 sectors. Amazon gained 4.6% after its market cap exceeded $3 trillion for the first time following quarterly earnings. An exchange traded fund tracking seven leading technology firms increased nearly 4%, indicating robust demand for top growth stocks. The decline in crude prices also played a role in supporting the market. Brent crude settled 4.7% lower at $83.77 a barrel after President Donald Trump announced that the United States would delay new strikes against Iran. Trump also mentioned that negotiations might involve reopening the Strait of Hormuz, although Iran disputed that any talks had been scheduled. This drop in oil prices alleviated immediate inflation concerns and resulted in lower Treasury yields during the session. Energy shares fell 1.2%, making the sector the weakest performer of the day.