Israel Kills Al Jazeera Journalist It Says Was Hamas Leader

Middle East Situation

Summary:

A press freedom group and a UN expert previously warned that journalist Al Sharif's life was in danger due to his reporting from Gaza.

Israel's military said it targeted and killed a Hamas cell leader posing as an Al Jazeera journalist in an airstrike on Gaza City on Sunday, a claim condemned by the Qatari broadcaster.

Anas Al Sharif was among a group of four Al Jazeera journalists and an assistant who died in a strike on a tent near Shifa Hospital in eastern Gaza City, Gaza officials and Al Jazeera said. An official at the hospital said there were seven people killed in the strike.

"Anas Al Sharif served as the head of a terrorist cell in the Hamas terrorist organization and was responsible for advancing rocket attacks against Israeli civilians and IDF (Israeli) troops," the Israeli military said in a statement, citing intelligence and documents found in Gaza as evidence.

Palestinian militant group Hamas, which runs Gaza, said the killing may signal the start of an Israeli offensive. "The assassination of journalists and the intimidation of those who remain paves the way for a major crime that the occupation is planning to commit in Gaza City," Hamas said in a statement.

Palestinian journalists' groups and Al Jazeera denounced the killings. The other journalists killed were Mohammed Qreiqeh, Ibrahim Zaher and Mohammed Noufal, Al Jazeera said.

Calling Al Sharif "one of Gaza's bravest journalists," Al Jazeera said the attack "is a desperate attempt to silence voices in anticipation of the occupation of Gaza."

Israeli Prime Minister Benjamin Netanyahu has said he would launch a new offensive to take control of Gaza, where a hunger crisis is escalating after 3-1/2 years of war.

"Anas Al Sharif and his colleagues were among the last remaining voices in Gaza conveying the tragic reality to the world," Al Jazeera said.

A press freedom group and a UN expert previously warned that Al Sharif's life was in danger due to his reporting from Gaza. U.N. Special Rapporteur Irene Khan said last month Israel's claims against him were unsubstantiated.

In July, the Committee to Protect Journalists urged the international community to protect Al Sharif.

Source: Reuters

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Political

Context and Timing of the Meeting

The summit announcement came shortly after Trump suggested a peace settlement might require “territorial exchanges,” signaling Washington’s willingness to discuss land concessions as part of a broader deal. The meeting will mark the first US–Russia presidential summit since June 2021, when President Joe Biden met Putin in Geneva.

For Trump, the encounter represents a high-stakes diplomatic gamble that he can personally persuade Putin, where previous US leaders have failed. For Putin, it offers a symbolic win after months of stalled negotiations and an opportunity to test US resolve in shaping the post-war order.

Core Agenda and Potential Outcomes

While Trump has offered few details, the discussion is expected to cover potential territorial arrangements, security guarantees for Ukraine, and the fate of frozen Russian assets. The concept of Kyiv ceding land faces both political and constitutional barriers Ukraine’s constitution prohibits territorial concessions, and President Volodymyr Zelensky’s government has repeatedly rejected the idea.

Diplomatic observers warn that Russia might use the summit to prolong talks, buying time to consolidate territorial gains rather than rushing toward a final settlement. Any meaningful agreement would likely require parallel negotiations involving Ukraine, European allies, and possibly NATO to address security assurances and prevent future conflicts.

Strategic Significance of Alaska Venue

The choice of Alaska America’s closest state to Russia carries symbolic weight. It has previously hosted high-profile US diplomatic engagements, including US–China talks in Anchorage in 2021. The White House has not disclosed the exact location or logistical details, framing the meeting as part of a broader sequence of Trump’s planned engagements with both Putin and Zelensky.

US Secretary of State Marco Rubio stated that Washington has “some understanding” of Russia’s conditions for ending the war diplomatically but acknowledged a significant gap between Moscow’s demands and Kyiv’s terms. The immediate challenge, he said, is narrowing that gap sufficiently for Trump to act as a closer.

Even if the Alaska meeting produces progress, it will likely serve as an opening round in a complex, multi-stage negotiation. Beyond territorial questions, the central unresolved issue will be whether Ukraine receives robust Western security guarantees to deter a repeat of the invasion.

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Economic

Record Drop in Japanese Nationals

Ministry of Internal Affairs data as of January 1, 2025, show the country’s total population at 124.33 million, down 0.44% from a year earlier. The number of Japanese nationals fell to 120.65 million, a 0.75% decline the steepest since recordkeeping began in 1968. This marks the 16th straight year of population decline since the 2009 peak of over 127 million. The birth rate is at an all-time low, with more than two deaths for every birth.

Tokyo remains Japan’s most populous prefecture with over 14 million residents, followed by Kanagawa (9.2 million) and Osaka (8.77 million). Rural prefectures like Tottori (534,000), Shimane, and Kochi have populations under 700,000. Only Tokyo and Chiba saw annual population growth, driven partly by redevelopments like Harumi Flag, which converted the Olympic Village into family housing, attracting young households and boosting demand for schools and child services.

Rise in Foreign Residents

Foreign residents now number 3.677 million, up 354,100 from 2024 the largest increase since records began in 2013. Tokyo hosts the largest share (over 721,000), followed by Osaka, Aichi, Kanagawa, and Saitama, which together account for more than half of the foreign population. Even rural prefectures saw foreign population growth, though numbers remain low in places like Akita, Tottori, and Kochi.

Demography experts warn that foreign population growth is outpacing government policy, potentially weakening Japan’s competitiveness in the global talent market given its relatively low wages. Economist Takumi Fujinami stresses that local-level competition for residents is insufficient to reverse the national trend, calling for coordinated, nationwide measures to address low fertility and regional economic disparity.

Without more robust family support policies, job creation in non-urban regions, and better integration of foreign labor, Japan risks deepening its demographic imbalance concentrating opportunity in a few urban hubs while rural areas face economic and social decline. The country’s ability to sustain its workforce and economic vitality will depend on how quickly and effectively these structural challenges are addressed.

To stay updated on all economic events of today, please check out our Economic calendar

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Economic

Global Trade Expansion Loses Momentum

The World Trade Organization’s latest report shows global trade is expected to grow only 0.9% in 2025, down sharply from 2.9% in 2024. The slowdown is closely linked to Washington’s aggressive tariff measures, which have prompted US importers to front-load purchases before higher duties take effect. While the WTO forecasts a modest recovery to 1.8% growth next year, the outlook remains weaker than earlier projections. WTO Director-General Ngozi Okonjo-Iweala noted that uncertainty from US tariffs is undermining business confidence and supply chain stability. The absence of a retaliatory tariff cycle among major economies has prevented deeper damage, but the trade environment remains unsettled.

Tariffs are not only reshaping trade but also influencing capital allocation. For the first time since 2022, international equities are outperforming the S&P 500, with markets in Mexico, Canada, Germany, Spain, Brazil, the UK, and Vietnam posting gains of 11–26% this year. Vietnam’s VN-Index rose around 25% to 1,584.95 points in early August. The MSCI World Index excluding the US has climbed 18% in 2025, more than double the S&P 500’s 7.8% increase.

This performance gap reflects a combination of high US equity valuations, slower domestic growth, and stronger policy reform momentum abroad. Analysts note that pro-investment measures in Europe, Japan, and Canada are attracting capital seeking better value and long-term growth potential.

Tariffs as a Core Driver of Investment Shift

Rising import duties threaten to erode US corporate profits, especially in sectors heavily dependent on global supply chains. In contrast, European and Japanese firms are cushioned by domestic policy support and structural reforms. According to Purpose Investments’ Craig Basinger, these differences are encouraging investors to reallocate from US assets into international markets that offer both policy stability and competitive valuations.

While global markets are currently benefiting from this capital rotation, strategists at Manulife John Hancock caution that a US recession could trigger spillover effects worldwide. Nonetheless, in the present environment, diversifying into international equities is seen as a viable long-term opportunity, with global policy divergence and investment-friendly reforms creating fertile ground for sustained returns outside the US.

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Economic

A Persistent and Expanding Deficit

Data from Japan’s Ministry of Finance shows the country posted a 14.6 trillion yen current account surplus in the first six months of 2025. Yet within the services account, a 1.38 trillion yen overall deficit was driven in large part by a 3.48 trillion yen shortfall in digital services. Although this was 3.3% lower than the same period in 2024, it remains the second-largest on record and 2.6 times higher than in 2015.

The digital deficit covers telecommunications, computer and information services such as cloud computing; professional and management consulting services including online advertising; and royalties and license fees for streaming content. Despite record tourism receipts of 3.61 trillion yen in the same period, gains from inbound travel were almost entirely offset by digital outflows.

Reliance on Foreign Platforms and Services

Japan’s growing dependence on US technology companies is evident in long-term increases in online advertising spending and the post-pandemic surge in cloud service adoption. Consumers are also paying more for video streaming and other digital content. The rise of artificial intelligence is adding to import costs as businesses adopt advanced AI tools from overseas providers.

This structural reliance limits Japan’s leverage in trade negotiations. Unlike sectors such as manufacturing or energy, the country cannot offset US tariffs with digital trade surpluses, leaving it vulnerable in talks with the Trump administration, which prioritizes reshoring American production.

Future Risk Projections

The Ministry of Economy, Trade and Industry (METI) projects Japan’s digital trade deficit could hit 18 trillion yen by 2035, nearly triple 2024’s 6.8 trillion yen. In a pessimistic scenario, where foreign firms capture more market share, the gap could soar to 28 trillion yen surpassing the 25 trillion yen Japan spent on mineral fuel imports in 2024.

While a widening deficit can signal technological dependence, it may also reflect businesses advancing in their digital transformation. The critical factor is whether imported digital services generate productivity gains, innovation, and competitive capacity. Without this, Japan risks sustaining high costs without sufficient economic return.

METI highlights shortages in funding, digital specialists, and data resources for R&D. As transformative technologies such as quantum computing emerge, coordinated public–private investment will be needed to strengthen domestic digital infrastructure and reduce strategic reliance on foreign platforms. The challenge is to turn the digital trade gap from a symbol of dependency into a channel for innovation-led growth.

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Economic

EU Sanctions: Symbolic More Than Structural

In July, the EU added India to its 18th sanctions package targeting Russia, banning imports of refined petroleum products made from Russian crude and sanctioning Indian refiner Nayara Energy, partly owned by Rosneft. The move was framed as a political message rather than a decisive economic blow, as analysts noted India could replace Russian-sourced refined fuels with imports from countries like Iraq without significant disruption. Despite the symbolic escalation, experts such as Jacob Funk Kirkegaard of Bruegel believe the sanctions will not derail ongoing EU–India trade talks.

The far greater challenge comes from Washington. President Trump’s warning of tariffs up to 50% on Indian goods over continued Russian oil purchases poses a substantial threat to India’s trade exposure. With no bilateral trade agreement to buffer the impact, the prospect of such duties strengthens India’s incentive to diversify trade partnerships and lock in predictable economic relationships, positioning the EU as a logical alternative.

Mutual Strategic Interests

Analysts argue that the shifting US–India dynamic inadvertently benefits Brussels. Garima Mohan of the German Marshall Fund points out that India now needs stable and investment-friendly partners, while the EU’s pragmatic approach particularly its sensitivity to India’s politically charged agricultural sector, which employs about 44% of its population makes it a more appealing counterpart. Avoiding demands for sweeping agricultural market liberalization increases the probability of securing a deal.

Should India reduce its Russian oil imports to sidestep US tariffs, it would indirectly cut a significant revenue stream for Moscow, aligning with EU and Ukrainian interests. Yet, Indian diplomats caution that removing Russian crude from global supply could drive oil prices sharply higher, potentially hurting all consumers. This underscores the complex interplay between trade negotiations and global energy stability.

Despite the friction from EU sanctions, both sides remain motivated to conclude a free trade agreement. The realignment of India’s strategic calculus hinges more on Washington’s tariff posture than Brussels’ punitive measures. In this environment, geopolitical pressure is acting less as a wedge and more as a bridge, drawing New Delhi and Brussels toward a trade pact that could reshape their economic and strategic relationship.

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Stocks

Economic

Rapid Price Gains Outpace Fundamentals

Hanwha Aerospace, LIG Nex1, Hyundai Rotem, Korea Aerospace Industries (KAI), and Hanwha Systems have all seen sharp share price increases this year, driven by optimism over rising global defense budgets and South Korea’s growing arms exports. The rally has lifted their price-to-earnings ratios (PER) well beyond historic norms, with Hanwha Systems at 61, LIG Nex1 at 44.1, KAI at 37.1, Hanwha Aerospace at 32.1, and Hyundai Rotem at 23.5. By comparison, Lockheed Martin’s PER is projected at 19.6 in 2025.

Even with forecasts for a slight pullback in 2026 Hanwha Systems at 38.5, LIG Nex1 at 33.9, KAI at 24.7, Hanwha Aerospace at 23.1, and Hyundai Rotem at 21.6 the multiples remain well above Lockheed Martin’s projected 14.7. A similar gap appears in EV/EBITDA ratios: LIG Nex1 stands at 28.5, Hanwha Systems at 27.6, KAI at 21.3, Hyundai Rotem at 19.3, and Hanwha Aerospace at 13, compared to 12.8 for Lockheed Martin. These figures indicate South Korean defense firms are trading at valuations significantly higher than their current earnings or cash flow would justify.

Earnings Growth and Market Risks

In Q2 2025, the combined operating profit of the four largest contractors Hanwha Aerospace, Hyundai Rotem, LIG Nex1, and KAI exceeded 1 trillion won (about USD 719 million) for the first time, supported by a surge in backlogged orders. However, much of the anticipated export revenue has yet to be converted into actual sales. This creates a correlation between current stock prices and future delivery performance; if revenues materialize slower than expected, the rapid run-up in share prices could reverse, leaving valuations exposed.

Analysts note that while the structural growth in defense demand supports long-term expansion, the present premium pricing embeds aggressive assumptions about contract execution and profit margins. The gap between market capitalization and realized earnings potential suggests that, without continued strong order fulfillment and sustained export momentum, South Korean defense stocks may struggle to maintain their elevated levels.

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