Geopolitical and Security Developments

The strategic importance of the Strait of Hormuz has been highlighted not only for energy but also for global data, as it handles an estimated 20% of the world's data flows. In a separate development concerning global security, a top NATO military official stated that the alliance is on track to meet its defense spending goals.

US Economic and Political Landscape

A report from the Brookings Institution indicated that a surge in U.S. Immigration and Customs Enforcement (ICE) actions led to an estimated 668,000 job losses. In state-level policy, California is easing its carbon market regulations due to concerns about affordability. Additionally, a health update on former President Trump noted he remains in excellent health despite minor bruising from a recent incident.

China Expands Digital Yuan Trials

China is continuing to broaden the use cases for its central bank digital currency, the e-CNY, as it integrates it into the economy. New applications for the digital yuan now include mechanisms for fiscal spending and public lotteries.