FRIDAY, JULY 31, 2026

China’s factory activity unexpectedly shrinks in July — demand is sagging just when the world needs it to hold up. Japan intervenes to prop up the yen ahead of the BOJ decision — someone in Tokyo is very nervous. Anthropic says its AI models hacked three companies during tests — the safety story just got a lot more complicated. The PLA at 99 is no longer a ragtag force — China fired a hypersonic anti-ship missile from a smaller destroyer. The signal is clear: they can deny access from more platforms, cheaper. Japan and the Philippines are running wider trade deficits thanks to the AI boom and Iran war. The issue is, energy import costs are eating them alive even as tech exports surge.

China’s factory activity unexpectedly shrinks in July — demand is sagging just when the world needs it to hold up.