MEDIA MONITORING
We have curated a selection of articles on global economics, politics, and developments in Kazakhstan from renowned international publications, including The Financial Times, The Wall Street Journal, The Guardian, and The Economist.
The Economist
Why the MAGA economy is thriving
The article outlines the rise of a distinct conservative economy in the U.S., dubbed “MAGA-land.” Republicans and Democrats are increasingly split in what they buy, where they work, and how they view the economy. MAGA-branded products and companies favoured by conservatives—like MyPillow, Harley-Davidson, and Fox News—are thriving, despite liberal scepticism.
Data shows Republican-leaning areas now generate about $10 trillion in GDP. While Democrats dominate tech and urban sectors, conservative regions are seeing rising incomes, strong population growth, and outperforming Republican-aligned firms. Though future challenges exist, the MAGA economy is proving powerful and resilient.
Will OpenAI ever make real money?
The article contrasts the high-profile role of Sam Altman, OpenAI’s CEO, with the tougher job of CFO Sarah Friar. While Altman enjoys global celebrity and investor enthusiasm, Friar must tackle the complex task of making the AI firm profitable.
Despite booming investor interest and rising revenues, OpenAI faces soaring costs—especially from running increasingly powerful models like o3. Rapid innovation in AI not only disrupts business planning but also drives up energy and computing expenses, making long-term profitability uncertain. Competition from rivals like DeepSeek further pressures margins and pricing.
Ultimately, OpenAI’s financial future is highly uncertain, and its $300bn valuation rests on bold projections that may prove fragile.
China has got lucky with Trump. Can the rest of the world?
The article examines the chaotic state of U.S. trade negotiations under President Trump’s “90 deals in 90 days” initiative, launched in April with a deadline of July 8th. Despite lofty ambitions, only two agreements—one with Britain and one with China—have been reached so far, and neither yielded major concessions.
Talks with the remaining 88 countries have been disorganised, with priorities shifting unpredictably based on political whims and presidential preferences. Key themes include the fleeting attention given to any one country, tensions around U.S.–China rivalry influencing deals, and unexpected diplomatic hurdles.
Most countries are focused less on securing a deal and more on avoiding being left out entirely when tariffs resume. While more agreements may be reached before the deadline, the original goal now appears out of reach.
The Wall Street Journal
GM Is Pushing Hard to Tank California’s EV Mandate
The article details General Motors' (GM) shift from supporting aggressive electric vehicle (EV) targets to now lobbying against them. Once a champion of EV adoption, GM is urging its employees to lobby U.S. senators to overturn California’s 2035 ban on new petrol-powered cars—a rule adopted by 11 other states.
The move reflects changing market conditions: EV sales are slowing, consumer demand is falling, and government subsidies are under threat. GM has delayed key EV projects and abandoned production targets, though it still claims to support electrification and customer choice.
California argues its rules are flexible, but critics—including GM and other major automakers—say the targets are unrealistic and economically damaging. Bipartisan support is growing in Congress to revoke California’s special waiver to set its own emissions standards.
U.S. Loses Last Triple-A Credit Rating
Moody’s has downgraded the U.S. government’s credit rating from AAA to Aa1, citing persistent budget deficits and rising interest costs—leaving the U.S. without a top rating from any major agency. The move follows earlier downgrades by Fitch (2023) and S&P (2011).
Moody’s warned that current U.S. budget plans do little to address the growing gap between spending and revenue. While the downgrade is unlikely to cause immediate market turmoil, it may raise borrowing costs over time, potentially worsening the deficit.
The decision has sparked political blame, with Republicans criticising President Biden’s fiscal policies and Democrats accusing Republicans of worsening the outlook through costly tax and spending plans. Moody’s, however, emphasised the U.S.’s economic strength and maintained a stable outlook.
Europe Is Out. Road Trips Are In. Welcome to the Scaled-Back Vacation.
Many Americans are scaling back their summer holiday plans due to economic uncertainty and rising living costs. Instead of expensive air travel and overseas trips, people are opting for road trips, shorter breaks, and more affordable getaways.
Concerns over inflation, tariffs, and volatile markets have prompted travellers to abandon or reduce plans—even those that weren’t formally booked. While the stock market has recently rebounded and tariffs are paused, consumer sentiment remains cautious.
Airline spending has dropped, particularly among middle- and working-class travellers, while wealthier customers continue booking premium seats. Use of travel points is rising, and many people are choosing domestic trips or cheaper alternatives to planned international holidays.
Overall, while Americans still want to take time off, their holidays are more modest—reflecting wider financial anxieties.
The Guardian
Romanian run-off the most crucial on Europe’s ‘Super Sunday’ of elections
Romanians are voting in a crucial presidential run-off that could significantly reshape the country’s political direction, with major implications for its relations with the EU, NATO, and economic stability. The contest pits far-right populist George Simion—an EU-sceptic and Trump supporter—against pro-European centrist Nicușor Dan.
Simion won the first round with 41%, but recent polls suggest a much closer second round. High voter turnout, especially among young people, may favour Dan. Analysts view the election as one of the most consequential in Romania’s post-communist era, potentially deciding its future strategic alignment.
A Simion victory could lead to a shift in foreign policy, reduced support for Ukraine, closer ties with Hungary and Slovakia’s populist leaders, and increased political instability. Markets have already reacted negatively, and business leaders warn of deteriorating investor confidence. Simion’s win may also result in a minority government, reshaping Romania’s political landscape.
Elsewhere in Europe, Poland and Portugal also held key votes. In Poland, centrist Rafał Trzaskowski leads in the first round of presidential elections, while in Portugal, the centre-right may win a snap general election but struggle to form a stable government.
Pope Leo XIV holds inaugural mass at St Peter’s Square
Pope Leo XIV marked the beginning of his papacy with a call for unity and compassion during his inaugural mass at the Vatican, attended by global leaders including Ukraine's President Volodymyr Zelenskyy and US Vice-President JD Vance. Emphasising the Catholic Church’s role as a “small leaven of unity” in a divided world, Leo stressed that its authority lies in love, not power or propaganda.
Leo, the first American pope and formerly Cardinal Robert Prevost, spoke of the need to preserve the Church’s heritage while addressing modern issues such as inequality, environmental exploitation, and prejudice. He received traditional symbols of the papacy – the fisher’s ring and the pallium – during the ceremony in St Peter’s Square, attended by around 150,000 pilgrims.
Following the mass, Leo met with Zelenskyy, who expressed openness to peace talks with Russia and thanked the Vatican for offering to host negotiations. Discussions also touched on a forthcoming Trump-Putin call. Meanwhile, JD Vance, who has previously clashed with Leo on immigration, represented the US alongside Secretary of State Marco Rubio.
Despite earlier criticism from Trump-aligned figures, Leo plans to remain active on social media, using the papal accounts to promote peace and dialogue.
Almost 300m people at risk of death through starvation – report
Acute food insecurity is rising at a record pace, with nearly 300 million people now at risk of starvation, according to the latest Global Report on Food Crises. The number of people facing high levels of food insecurity increased by 13.7 million in 2023, marking the sixth consecutive year of worsening conditions.
Conflict, climate shocks, economic instability, and deep cuts to humanitarian aid – particularly from USAID – are key drivers of the crisis. The report reveals that 295.3 million people across 53 countries are experiencing acute food insecurity, with the worst cases — classed as “catastrophe” — more than doubling last year.
Gaza and Sudan are the most affected, with over 95% of those in catastrophic conditions living in these regions. In Sudan, over 24 million people face acute food insecurity due to ongoing civil war, while Gaza’s 2.1 million residents are at critical risk of famine amid continued Israeli blockade and aid restrictions.
The crisis is also deepening in countries like Haiti, Mali, Myanmar, Nigeria, and the Democratic Republic of the Congo, with the climate crisis exacerbating food shortages in areas such as Ethiopia, Kenya, Somalia, Afghanistan, and Pakistan.
The Financial Times
US groups raced to stockpile pharmaceuticals ahead of tariffs
In March, the US imported a record $53 billion worth of pharmaceutical products, as companies prepared for potential tariffs from President Trump’s administration. This marked a 160% increase from the previous year and a near doubling from February. While Trump has not yet imposed tariffs on pharmaceuticals, there are concerns following a national security review on the sector. The US and UK have agreed to negotiate preferential tariff treatments for drugs, contingent on a security review and supply chain compliance. A significant portion of the imports came from Ireland, which is home to many US pharmaceutical manufacturing plants. In response to the tariff threat, several US pharmaceutical companies, including Eli Lilly and Johnson & Johnson, have announced plans to expand domestic manufacturing. However, concerns persist that tariffs could lead to drug shortages. European pharmaceutical firms, such as AstraZeneca and GSK, are also increasing their investments in the US to mitigate the risks.
Singapore’s ruling party sweeps to victory as voters opt for stability
Singapore’s ruling People’s Action Party (PAP) has won its 16th consecutive general election, securing 87 of 97 parliamentary seats and increasing its share of the popular vote to 66% — its highest in a decade. The election marked the first major test for Prime Minister Lawrence Wong, who succeeded Lee Hsien Loong last year. Voters backed the PAP amid global geopolitical uncertainty, reflecting support for stability in the trade-reliant nation. The opposition Workers’ Party retained its 10 seats and will receive two additional non-constituency seats after running close in several constituencies. Rising living costs and slowing economic growth remain key challenges for the new government.
Saudi-led Opec+ expands production despite falling oil prices
Opec+ members, including Saudi Arabia and Russia, have announced a second consecutive monthly increase of 411,000 barrels per day for June, despite a decline in oil prices due to concerns over oversupply and economic weakness. This decision follows an unexpected increase last month and marks a shift in strategy, with Opec+ aiming to regain market share after years of production cuts. The move comes as tensions grow within the cartel, particularly with Kazakhstan, and as Saudi Arabia seeks to unwind its production curbs. While the strategy could lead to lower oil prices, its impact remains uncertain, with concerns over whether members will adhere to the new quotas.
Sources: summaries based on articles published in The Financial Times, The Wall Street Journal, The Guardian, and The Economist