Tariff fears cloud global factory outlook despite bright spots in Asia and Europe
Concerns over new U.S. tariffs under President Donald Trump are weighing on global manufacturing, though June data show signs of resilience in countri...
The United States has appointed Lieutenant General Alexus G. Grynkewich as the next Supreme Allied Commander Europe (SACEUR). This development occurs as NATO allies prepare for a summit in The Hague later this month, where they have agreed to increase defence spending to 5% of their GDP.
The United States has appointed Lieutenant General Alexus G. Grynkewich as the next Supreme Allied Commander Europe (SACEUR). This development occurs as NATO allies prepare for a summit in The Hague later this month, where they have agreed to increase defence spending to 5% of their GDP.
The decision to name Lt. Gen. Grynkewich as both the top U.S. general in Europe and SACEUR follows recent media reports suggesting the U.S. was considering altering the SACEUR role. The position has traditionally been held by a U.S. president-appointed general since its establishment in 1951, with U.S. Army General Dwight D. Eisenhower. A U.S.-based source familiar with the matter stated, "It’s a very important decision and there is relief from NATO’s point of view as it's a positive sign of American engagement and staffing." Lt. Gen. Grynkewich is expected to succeed General Christopher G. Cavoli, United States Army, at a change of command ceremony at the Supreme Headquarters Allied Powers Europe in Mons, Belgium, anticipated in the summer of 2025, pending national confirmation processes.
NATO defence ministers have agreed to new defence capability targets for member nations, which include a commitment to raise defence spending to 5% of GDP. Under this new framework, 3.5% of GDP will be allocated to "core defence spending," covering investments in heavy weapons, tanks, and air defence systems. The remaining 1.5% of GDP per year will be directed towards defence and security-related areas such as infrastructure, surveillance, and cyber. The specific details regarding flexibility are still being negotiated. NATO Secretary General Mark Rutte stated, “These targets describe exactly what capabilities Allies need to invest in over the coming years.” The United States has advocated for increased defence spending among NATO allies. U.S. Ambassador to NATO Mathew Whitaker commented, “The threats facing NATO are growing and our adversaries are certainly not waiting for us to re-arm or be ready for them to make the first move," adding that the U.S. would "prefer our Allies move out urgently on reaching the 5%.”
Ambassador Whitaker also indicated that the U.S. expects Europe to take a leading role in providing Ukraine with "the resources necessary to reach a durable peace" on the continent. This aligns with recent warnings from NATO Secretary General Mark Rutte regarding potential threats from Russia. Rutte reiterated previous NATO assessments that Russia could pose a threat to NATO territory within the next few years. "If we don't act now, the next three years, we are fine, but we have to start now, because otherwise, from three, four or five years from now, we are really under threat," he said, suggesting, "Then you have to get your Russian language course out, or go to New Zealand.” Regarding the upcoming NATO summit in The Hague, a U.S.-based source familiar with the issue stated that Ukraine's presence at the summit "will likely be scaled back," citing potential arguments from the U.S. that "they’re not members’ so they don’t need to be there." The source also commented on the U.S. administration's perspective on Ukraine, stating, "I just don’t think Trump really cares about Ukraine," and added, “Trump just doesn’t care about Europe – it doesn't make him richer or help him politically.”
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
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Severe rain in Venezuela has caused rivers to overflow and triggered landslides, sweeping away homes and collapsing a highway bridge, with five states affected and no casualties reported so far.
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Thousands of protesters rallied in Bangkok on Saturday, demanding Prime Minister Paetongtarn Shinawatra resign as political and economic tensions mount.
Concerns over new U.S. tariffs under President Donald Trump are weighing on global manufacturing, though June data show signs of resilience in countries like Japan, China, and Ireland.
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