Global attention was fixed on a range of significant developments this past week, from a major policy speech in South Korea calling for a surge in AI spending to a powerful typhoon lashing the Philippines.
In the world of diplomacy, China issued a stern warning to the US to respect its “red lines” following a recent trade truce, while in the markets, gold prices fell as Federal Reserve officials tempered expectations for another rate cut.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
South Korean president calls for a surge in AI spending
South Korean President Lee Jae Myung used a major budget speech on Tuesday to call for tripling government spending on artificial intelligence infrastructure and technology.
He also urged lawmakers to approve an 8.2% increase in defense spending to modernize the military and reduce reliance on the United States.
The speech followed last week’s APEC summit, which South Korea used to showcase its AI ambitions and advance trade talks with the US The address was boycotted by most conservative opposition lawmakers amid an ongoing political rift.
China warns US to avoid ‘red lines’ to preserve trade truce
China has called on the United States to respect four key “red lines” to ensure the recently sealed trade truce between the two nations holds.
In a speech to the US-China Business Council, Ambassador Xie Feng identified Taiwan, democracy and human rights, China’s political system, and its development rights as Beijing’s core interests.
He warned that conflicts over tariffs or technology “will lead to nothing but a dead end.”
The warning comes as the Wall Street Journal reported that senior US officials had convinced President Trump not to discuss next-generation AI chips with President Xi.
Typhoon Kalmaegi batters central Philippines, forcing evacuations
Typhoon Kalmaegi slammed into the central Philippines on Tuesday, bringing strong winds, heavy rains, and “life-threatening conditions” that forced the evacuation of more than 75,000 people.
The typhoon, with maximum winds of 150 kilometers per hour, made landfall in southern Leyte and also hit the island of Cebu, which is still recovering from a deadly earthquake a month ago.
The national weather agency, Pagasa, warned residents to seek shelter in strong buildings and stay away from coastal and low-lying areas.
Gold prices fall as Fed officials cool rate cut expectations
Gold prices dipped below $3,990 an ounce as several US Federal Reserve policymakers indicated that another interest rate reduction in December is not a certainty.
Fed Governor Lisa Cook, along with her colleagues Mary Daly and Austan Goolsbee, all refrained from committing to another cut, echoing recent cautious remarks from Fed Chair Jerome Powell.
The comments strengthened the US dollar and lowered market odds for a December cut to about 70%, down from being fully priced in just two weeks ago. Easier monetary policy makes non-yielding gold more attractive to investors.
UK continues to push for an end to US tariffs on steel and whiskey
The United Kingdom is still in talks with the Trump administration to remove US tariffs on British steel and whiskey, according to the British Consul General in Chicago.
The US imposed a 25% tariff on steel and a 10% tariff on the spirit, which remain in place despite the UK being the first country to secure a trade agreement with President Trump.
The Scotch Whisky Association says the tariffs are costing the industry almost £20 million a month in lost exports, while the UK argues its steel is not being “dumped” on U.S. shores.
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