Markets Focus on Geopolitical Shifts as Powell’s Jackson Hole Address Looms

Economic

Summary:

Geopolitical tensions around Ukraine and shifting U.S. foreign policy dominate early-week market sentiment, while investors brace for potential surprises from Fed Chair Jerome Powell’s speech at Jackson Hole...

Trump’s Rhetoric Stokes Geopolitical Uncertainty

As the week opens, global markets are navigating a complex geopolitical backdrop dominated by U.S. President Donald Trump’s increasingly pro-Kremlin messaging ahead of a high-stakes meeting with Ukrainian President Volodymyr Zelenskiy and European leaders in Washington. Trump’s recent comments, including tweets echoing Moscow’s stance on Crimea, indicate a renewed willingness to adopt Russia’s narrative.

Meanwhile, speculation however outlandish that Russian President Vladimir Putin sent a body double to the Alaska summit underscores the murky optics of the current negotiations. What remains unambiguous is Putin's demand for Ukraine to relinquish all territories Russia has occupied, a condition that remains non-negotiable for Kyiv and its Western allies. Their unified presence at the Washington summit serves as a counterbalance to any potential concessions that Trump might float.

These diplomatic maneuvers have directly influenced commodity markets. With reduced anticipation of new U.S. sanctions on Russian oil exports, Brent crude slipped 0.3% and WTI also eased, reflecting a lowered geopolitical risk premium on energy supply.

Earnings Keep Equities Buoyant as Wall Street Eyes Consumer Health

Despite geopolitical noise, global equity markets continue to gain. Japan and Taiwan extended their record-breaking rallies, while Chinese blue chips reached a 10-month high. European and U.S. stock futures rose modestly by around 0.2%, reflecting confidence underpinned by a resilient earnings season.

According to Goldman Sachs, S&P 500 earnings per share rose 11% year-over-year in Q2, with 58% of firms upgrading full-year guidance. This week, earnings from retail heavyweights Home Depot, Target, Lowe’s, and Walmart will offer insights into U.S. consumer spending behavior and the broader health of the domestic economy.

All Eyes on Jackson Hole as Fed Prepares to Signal Its Hand

The Federal Reserve’s annual Jackson Hole symposium, beginning August 21, will serve as the central stage for monetary policy watchers. Fed Chair Jerome Powell is scheduled to deliver remarks on the economic outlook and policy trajectory this Friday. Although no Q&A session is planned, markets will parse every word for signs of dovishness or the lack thereof.

With futures pricing in an 85% probability of a 25-basis-point cut at the September FOMC meeting, any deviation from that expectation especially if Powell adopts a more neutral or cautious tone could spark volatility in bond and equity markets.

At the short end of the yield curve, expectations of rate cuts continue to anchor yields. However, long-term yields are rising due to lingering inflation concerns, a widening U.S. fiscal deficit, and growing unease over the politicization of monetary policy. This dynamic is steepening the curve, a rare occurrence in a post-tightening cycle and a signal of potential structural imbalances in the bond market.

European bond markets are experiencing similar upward pressure on yields, largely due to mounting defense expenditures and broader fiscal demands. The realization that European governments will need to substantially increase borrowing is beginning to take hold among fixed-income investors.

Outlook and Monday’s Catalysts

Monday’s key data releases include EU trade figures for June and the U.S. National Association of Home Builders (NAHB) housing market index both of which could offer incremental signals on global demand and consumer resilience.

However, broader market direction remains tethered to two primary forces: geopolitical developments in the Trump-Zelenskiy talks and forward guidance from Powell later in the week. Should geopolitical tensions escalate or Powell appear less committed to easing, risk sentiment could swiftly reverse.

Markets remain cautiously optimistic, buoyed by strong earnings and expectations of policy support. Yet, that optimism faces tests on two fronts: a volatile geopolitical landscape with implications for global energy flows and a delicate monetary environment where Powell’s words could either affirm or upend market pricing. In both realms, investors are bracing for hard trade-offs whether in diplomacy or interest rates.

Source: Reuters

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Economic

Last week, markets focused on the rising chance of a U.S. rate cut in September. U.S. CPI was weaker than expected, boosting hopes for a cut, while PPI was higher, showing the impact of tariffs on U.S. companies. Despite the mixed data, traders still expect a rate cut next month, helping drive U.S. and Japanese stocks to record highs.The Reserve Bank of Australia cut rates as expected. In the U.K. and Japan, stronger GDP results lifted both the pound and yen. President Trump also signed an order extending the tariff truce with China for another 90 days, pushing the next key deadline to November 10, 2025, and avoiding an immediate escalation in trade tensions.

Oil prices fell ahead of the Trump–Putin summit where they will discuss ending the war in Ukraine, with markets watching closely for the outcome. Overall, risk sentiment improved as investors weighed trade uncertainty against central bank support and stronger global growth.

Markets This Week

U.S. Stocks

The Dow hit record highs last week, supported by growing expectations of a U.S. rate cut at the September meeting after weaker-than-expected CPI data. However, concerns remain over the negative impact of tariffs, with higher PPI showing the pressure on U.S. companies, and the market is waiting for more data to see the full effect. Overall, the Dow is expected to trade sideways to higher, making buying opportunities more attractive in the near term. Key resistance levels are at 45,000 and 46,000, while support is seen at 44,000, 43,000, and 42,000.

Japanese Stocks

Japanese stocks posted another week of strong gains, with the Nikkei 225 surging to record highs as optimism from the U.S. trade deal continued and momentum followed U.S. equities higher. The index is now up nearly 10% over the past month, so some consolidation is likely, making it better to wait for a pullback to the 10-day moving average before buying or selling in the short term. Key resistance levels are at 44,000円 and 45,000円, while support is seen at 42,000円, 41,500円, and 41,000円.

USD/JPY

The USD/JPY came under selling pressure last week as expectations of a U.S. interest rate cut encouraged selling, while stronger-than-expected Japanese GDP data raised the chances of a rate hike in Japan. The market looks balanced at current levels, so range trading remains the preferred strategy for now. Resistance is at 148, 149, and 150, while support is at 146 and 145.

Gold

Gold prices fell last week as profit-taking at the top of the recent range and record highs in equities reduced demand for the metal. This came despite U.S. rate cut expectations, which remain supportive for gold in the bigger picture. The market is expected to stay well supported at lower levels, creating potential buying opportunities in the week ahead. Resistance is at $3,400 and $3,450, while support is at $3,300, $3,250, and $3,200.

Crude Oil

WTI crude continued its recent downtrend, staying under pressure as bearish sentiment dominated. Prices were weighed down by OPEC+ production increases, weak Chinese economic data, and concerns that tariffs could further reduce demand. In addition, talks between Trump and Putin to end the war in Ukraine raised the risk of more Russian oil supply hitting the market, adding to downside pressure. Selling into strength remains the preferred strategy, with the 10-day moving average pointing lower. Resistance is seen at $65, $70, and $75, while support is at $60 and $55.

Bitcoin

Bitcoin hit record highs last week as traders continued to buy risk assets on expectations of lower U.S. interest rates. However, the market saw a sharp sell-off from the highs after comments from the U.S. Treasury Secretary confirmed there were no plans for further government Bitcoin purchases. A key reversal on Thursday, where the market made a new high but closed lower, along with a close below the 10-day moving average, could limit further upside in the short term. The preferred strategy is to buy on weakness and sell into strength. Resistance is at $120,000, $125,000, and $150,000, with support at $112,000, $110,000, and $105,000

This Week’s Focus

● Monday: E.U. Trade Balance

● Tuesday: U.S. Building Permits, U.S. Housing Starts

● Wednesday: Japan Trade Balance, U.K. CPI, E.U. CPI

● Thursday: U.S. FOMC Meeting Minutes, E.U. HCOB Eurozone Manufacturing PMI, U.K. S&P Global Manufacturing PMI, U.S. Initial Jobless Claims, U.S. S&P Global Manufacturing PMI, U.S. Existing Home Sales, U.S. US Leading Index

● Friday: Japan National Core CPI, U.K. Retail Sales, Germany GDP, U.S. Fed Chair Powell Speaks

This week, traders will stay focused on U.S. interest rate cut expectations. Inflation reports from the U.K. and Japan will also be important, as markets look for clues on when the Bank of England may cut again and if Japan could raise rates after last week’s strong GDP and the new trade deal with the U.S. The Federal Reserve will release minutes from its July meeting, giving more detail on how officials see inflation, growth, and the timing of future moves.

The Jackson Hole Economic Policy Symposium takes place later in the week, bringing together central bankers and policymakers from around the world to discuss the economy and monetary policy. On Thursday, flash PMI data from the U.S., Eurozone, U.K., and Japan will provide an early look at business activity in August. The week ends with Fed Chair Powell’s speech on Friday, which could give new signals on the U.S. economy and interest rates.

Source: ACTIONFOREX

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

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Gerik

Economic

New U.S. Tariffs Intensify Pressure on Korean Exporters

On August 18, 2025, the South Korean Ministry of Trade, Industry and Energy confirmed that it will bolster assistance programs for SMEs affected by the United States’ escalating tariff regime on steel and aluminum derivative products. This move comes in anticipation of Washington’s decision to impose a 50% import tax on an additional 407 derivative goods effective as early as this month. These new targets are expected to include machinery, automotive parts, and electronic equipment, significantly expanding the scope of impacted Korean exports.

The 50% tariff was initially applied on June 4 to all imported steel and aluminum products. With the new additions, the trade burden on Korean manufacturers especially SMEs already navigating narrow margins and global competition is set to intensify.

Government Expands Financial and Technical Assistance

In response, Seoul is ramping up its support framework. The Ministry stated that advisory services will be broadened to cover more complex technical and regulatory issues, such as steel and aluminum content verification and certification of origin documentation key factors for avoiding or reducing punitive tariffs under U.S. customs law.

Equally important, the South Korean government plans to significantly ease cost-sharing obligations for SMEs participating in these compliance and certification programs. This change addresses a longstanding challenge for smaller exporters, many of whom lack the financial resources to manage international documentation and legal compliance on their own.

Strategic Focus on Mitigation Over Retaliation

Unlike larger economies that might consider reciprocal tariffs or trade disputes, South Korea’s immediate approach is risk-mitigation. With the U.S. as one of its largest export destinations, particularly for intermediate goods in automotive and electronics supply chains, Seoul is prioritizing operational support over diplomatic confrontation.

The move also reflects concern over the strategic vulnerability of Korean SMEs many of which are tier-two and tier-three suppliers for major conglomerates whose viability could be threatened by sudden market access restrictions.

The South Korean government’s swift response underscores the growing complexity of global trade amid renewed protectionist policies from Washington. As tariffs widen in scope and severity, Korea is shifting its trade resilience strategy to protect SMEs through targeted advisory, regulatory, and cost-sharing assistance. Whether this will be enough to safeguard critical supply chain participation remains to be seen, particularly as U.S. trade policy under President Trump continues to prioritize domestic industrial interests over multilateral alignment.

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Widespread Price Cuts Reflect Mounting Inventory Pressure

From the beginning of August 2025, Vietnam’s automotive sector has entered a steep discounting phase, with major brands such as Toyota, Ford, Hyundai, Honda, Subaru, Volkswagen, and BMW aggressively subsidizing registration fees and cutting prices on a broad scale. The dominant reason: supply continues to outpace demand by a wide margin.

Toyota is offering full registration fee waivers on the Veloz Cross and Avanza Premio, and partial support on models like the Vios, Yaris Cross, and Corolla Cross. Ford’s promotions are similar, with full fee waivers on Ranger Sport and Wildtrak and discounted fees on Raptor and XLS variants. Hyundai is bundling cash incentives with a 50% fee reduction on Tucson, Accent, Creta, and Stargazer. Honda, Subaru, and luxury brands like Mercedes and Audi have joined with their own deep discounts, particularly on VIN 2023–2024 inventory, with some vehicles seeing price cuts of up to 550 million VND.

Supply Far Outstrips Demand

According to the General Statistics Office, July 2025 saw a total of 57,193 new vehicles added to the market 38,800 from domestic assembly and 18,393 imported despite a slight monthly decline. In the first seven months of 2025, domestic production reached 263,000 vehicles (up 64.4% YoY), while imports totaled 121,210 units (up 32.4%). Combined with more than 100,000 leftover vehicles from 2024, the total supply has surged to approximately 484,000 units.

By contrast, total vehicle sales over the same period were estimated at just 320,000 units, leaving a surplus of more than 150,000 units. Though sales rose 19% YoY, the excess supply has led manufacturers and dealerships to adopt aggressive price-cutting strategies especially as the market enters the traditionally slow Ghost Month (7th lunar month), when consumer spending is subdued due to cultural factors.

Electric Vehicles Gain as Fossil Fuel Models Face Regulatory Headwinds

Compounding the pressure on conventional vehicle sales is a growing wave of government regulation targeting fossil-fueled cars. A July 2025 directive from Prime Minister Phạm Minh Chính calls for Hanoi to begin increasing vehicle-related fees registration, license plate issuance, and parking for gasoline and diesel-powered vehicles in urban cores. The goal is to establish low-emission zones beginning in 2026, eventually banning non-compliant vehicles in central districts and potentially refusing new registrations for internal combustion engine (ICE) cars within these zones.

This policy shift is expected to significantly influence consumer preferences. As Hanoi and Ho Chi Minh City account for the largest share of Vietnam’s car purchases, new restrictions on gasoline vehicles are likely to accelerate the shift toward electric vehicles (EVs) and hybrids. Automakers and dealerships may find themselves struggling to move traditional fuel-heavy models without slashing prices.

VinFast and Hyundai Defy the Trend

Despite the sluggish ICE market, EV maker VinFast continues to post strong sales. In July 2025 alone, VinFast sold 11,479 electric vehicles, pushing its year-to-date total to 79,048 units. Hyundai also remains competitive, with nearly 28,000 vehicles sold in the first seven months. These figures suggest that brands aligned with market trends particularly in electrification are better positioned to weather the downturn.

Industry insiders expect the price war to persist through the rest of 2025. The combination of regulatory pressure, oversupply, and seasonal demand weakness is forcing a structural rebalancing. ICE vehicles especially models with poor fuel efficiency are likely to see further price erosion.

While trade incentives and upcoming policy dialogues may offer some relief, the broader trend points to sustained price volatility and strategic recalibration across the automotive sector. Customers may benefit in the short term from aggressive promotions, but for manufacturers and dealers, profitability will remain under strain as the market adjusts to a new reality shaped by oversupply and electrification.

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Economic

Trade Shock Undermines Manufacturing Ambitions

India’s manufacturing sector is facing a severe external shock following President Donald Trump’s imposition of a 50% tariff on Indian exports to the United States. This decision, justified by the White House as a punitive response to India’s continued purchase of discounted Russian oil, disproportionately targets a country that has historically aligned with U.S. trade and geopolitical frameworks. While China remains Russia’s largest oil customer, India is the only major Asian economy subject to such sweeping secondary tariffs.

The immediate fallout has been particularly acute for the Farida Group, India’s largest footwear manufacturer and a key supplier to global brands like Cole Haan and Clarks. The company halted a $114 million expansion project and froze plans for a new 60-hectare export facility in Tamil Nadu. With over half of Farida’s 23,000 employees producing goods for the U.S. market, the company now faces a potential mass layoff crisis.

Chairman Rafeeque Ahmed stated bluntly that while a 25% tariff could be managed through price renegotiations, the 50% rate renders operations with U.S. clients financially untenable. “There’s nothing we can do at this level,” he noted, expressing concern over the broader humanitarian impact on long-standing skilled labor.

Export Strategy at a Crossroads

India’s “Make in India” program, launched in 2014 with the ambition of raising manufacturing’s share of GDP to 25%, is facing its most critical test. As of 2024, the sector contributed just 13%, slipping from 16% in 2015, according to World Bank data. Despite recent progress such as Apple’s expanding assembly operations and growing exports in pharmaceuticals and green tech the tariff shock threatens to unravel years of investment-driven momentum.

U.S. companies have been pivotal in India’s industrial ascent, drawn by the “China Plus One” strategy which aimed to diversify supply chains. Yet as Ajay Sahai, director of India’s export federation, warned, companies are now considering an “India Plus One” model, signaling potential exits from the Indian market.

The new tariffs spare smartphones and pharmaceuticals for now, but the remaining $87 billion in Indian exports to the U.S. are at high risk. Analysts estimate that if the tariffs persist, Indian exports to the U.S. could fall by as much as 60%, shaving nearly 1% off India’s GDP. Further escalation if the tariffs are extended to pharma and electronics could see an 80% decline.

Political Pressure and Strategic Tensions

For Prime Minister Modi, the tariffs create both an economic and political liability. Being hit harder than China on trade terms weakens India’s international positioning. The timing is particularly sensitive, as the country prepares for general elections next year.

In parallel, China has begun leveraging the situation. While restricting technology exports and rare earth materials to India earlier this year, Beijing is now softening its stance. Bilateral talks on reopening direct flights and restoring border trade are underway, and China recently relaxed restrictions on urea exports. These signals hint at a possible recalibration in India-China ties, fueled in part by shared resistance to U.S. trade pressure.

Struggles on the Factory Floor

Manufacturers across India are struggling to remain competitive. Sudhir Sekhri of Trend Setters Group reported that his company dependent on spring and summer orders for 65% of revenue has been forced to deeply discount goods to retain buyers. In Mumbai, Technocraft Group’s director Sharad Kumar Saraf said the firm is exploring cost cuts as one-third of its revenue comes from the U.S.

Phone lines are ringing non-stop. “I get 80 to 90 calls a day from exporters seeking solutions,” said Sahai. “Doing business under these conditions is nearly impossible.”

The high tariff burden adds significant uncertainty at a time when orders for the 2026 summer season are being finalized. Clients are stalling decisions or pivoting to alternative suppliers in Southeast Asia, where trade terms are more favorable.

Prospects for Resolution and Geopolitical Bargaining

Despite the disruption, both countries are still engaged in dialogue. Ongoing negotiations aim to establish a bilateral trade agreement by autumn that could lower tariffs. A breakthrough in the Trump-Putin talks on Ukraine, scheduled this week in Alaska, might also open a path for easing oil-related penalties, indirectly relieving pressure on India.

However, time is not on India’s side. The longer the uncertainty drags on, the more likely global firms are to realign supply chains. “India still has a relatively small share of many export markets. U.S. brands can move quickly,” warned P. Senthilkumar of Vector Consulting Group.

India now stands at a critical juncture. The Trump administration’s aggressive tariff policy, framed as a geopolitical countermeasure, is inflicting deep economic strain on a country that was previously seen as a rising manufacturing alternative to China. Unless resolved swiftly, the fallout may not only derail India’s “Make in India” strategy but also lead to structural job losses, suppressed investment, and weakened export resilience risks that could reverberate far beyond the current trade cycle.\

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Political

Economic

It was another big week for financial markets last week, which again ended with global markets higher despite a few twists and turns across the week, including conflicting inflation data prints out of the US.The much-anticipated summit between US President Trump and Russian President Putin concluded after markets closed on Friday; however, there appears to have been little achieved so far, and details seem to be few and far between on what was discussed and agreed, or disagreed, during the two-and-a-half-hour meeting.Ukrainian President Volodymyr Zelenskiy is now scheduled to meet with Trump in Washington on Monday, so expect more updates on the first trading day of the week.There is more action in the week ahead, with several key data updates due out across the days and some major central bank events scheduled, including an RBNZ rate decision and updates from the Fed’s Annual Jackson Hole Symposium.

Here is our usual day-by-day breakdown of the major risk events this week:

Monday – It is a quiet start to the week on the economic calendar; however, expect markets to remain lively as investors react to the weekend’s geopolitical updates across all three trading sessions.

Tuesday – There will be an initial focus on antipodean markets in the Asian session on Tuesday, with Kiwi PPI data due to be released before the focus moves across the Tasman for Australian Consumer Sentiment numbers. There is little on the calendar in the European session; however, the focus will be on Canadian markets once New York opens, with key CPI numbers due out early in the day. We also hear from the Fed’s Michelle Bowman later in the day.

Wednesday – The macroeconomic calendar heats up on Wednesday with key updates across all three sessions and a big central bank theme. The initial focus in Asian markets will be on China, with the PBOC’s latest Loan Prime Rate updates due early in the session, before attention drops further south for the Reserve Bank of New Zealand’s latest rate call and updates. The European session sees UK markets in focus, with key CPI numbers due out early in the day. There is little in the way of data due out in the New York session, with just the usual weekly US Crude Oil Inventory numbers scheduled. However, there is a big Fed focus, with FOMC members Waller and Bostic both scheduled to speak around the key FOMC Meeting Minutes release.

Thursday – It is Flash PMI data day on Thursday, with data due out across several jurisdictions, including Australia, France, Germany, the EU, the UK, and the US. The New York session also sees the release of the Weekly Unemployment Claims numbers and Philly Fed Manufacturing Index data before focus moves west for the start of the Fed’s Jackson Hole Symposium.

Friday – It is a quieter day on the calendar on Friday, with Retail Sales numbers out of the UK and Canada the only major data releases scheduled. However, traders are expecting to see plenty of volatility as we hear from various major central bankers at the Jackson Hole Symposium, including a scheduled speech from Fed Chair Jerome Powell.

Source: IC Markets

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

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Economic

China–U.S. Trade War

Policy Reversal Highlights U.S. Strategic Tension

In a notable shift from years of escalating tech restrictions, U.S. President Donald Trump recently approved the sale of Nvidia’s H20 chip to China a model custom-designed to comply with previous U.S. export controls. While the move marks a partial easing of trade tensions, China has responded with notable skepticism rather than celebration.

Beijing, long vocal about the damaging effects of U.S. chip sanctions, is now portraying the H20 as a potential security risk. The chip reportedly includes features such as tracking and remote control capabilities claims Nvidia strongly denies. Regulatory bodies in China have summoned the company for clarification and warned domestic firms against using the chip, further straining the trade dialogue.

The Chinese reaction reveals a broader strategic calculus. As tensions with Washington have intensified over the years, Beijing has accelerated efforts to localize its semiconductor supply chain. The lukewarm reception toward the H20 signals a shift from reliance to resilience, as Chinese stakeholders seek not just access but technological independence.

Domestic Chipmaking Gains Undermine U.S. Leverage

Despite its reservations, China still needs Nvidia’s technology. The H20, though weaker than Nvidia’s flagship H100 and Blackwell chips, remains competitive. Yet the real reason behind Beijing’s hesitance lies in its rising confidence. Experts note that China’s leading tech firms especially Huawei have developed AI chips that rival the H20 in computing power, though they still lag in memory bandwidth due to limits in High Bandwidth Memory (HBM) manufacturing.

China’s HBM leader, CXMT, is estimated to be three to four years behind global suppliers like SK Hynix, Samsung, and Micron. These bottlenecks affect AI training efficiency and remain a critical barrier to full self-reliance. But the trajectory is clear: the share of domestic AI chips is projected to jump from 17% in 2023 to 55% by 2027, drastically reducing the dominance of U.S. suppliers like Nvidia and AMD.

Trump’s decision to reauthorize the H20 has also sparked debate about the integrity of national security frameworks. The chip was initially banned in April, only to be reapproved months later as “obsolete.” Officials like Commerce Secretary Howard Lutnick now argue that selling slightly older U.S. chips helps maintain global dependence on American technology stacks a view echoed by Nvidia CEO Jensen Huang, who previously met with Trump to push for relaxed controls.

China Plays the Long Game in Chip Independence

While the H20 may offer short-term benefits for Chinese companies such as ByteDance, Alibaba, and Tencent, the nation’s tech policymakers are taking a longer view. Supply chain insecurity, limited HBM access, and production constraints have only intensified Beijing’s ambition to develop a full-stack domestic chip industry.

Huawei, for example, is expected to ship only 700,000 high-performance AI chips in 2025, far short of market demand. Nvidia, by contrast, could have sold up to 1.5 million H20 units, generating $23 billion in revenue had restrictions not interrupted shipment plans. However, China’s authorities are now encouraging firms to source locally, even at the expense of performance or availability.

More than hardware performance, Nvidia’s advantage lies in its ecosystem a mature software-hardware integration platform that Chinese chips have yet to match. This “moat” effect keeps Chinese AI developers anchored to Nvidia, but as advanced packaging and local software tools improve, the grip may loosen.

The muted reaction to Trump’s chip policy reversal reflects China’s growing confidence and strategic resolve. While the H20 could temporarily ease domestic shortages, Beijing sees little value in depending on what it views as discarded U.S. technology. Instead, years of export controls have galvanized a national effort to build an autonomous chip sector an effort that is gaining momentum.

Even Nvidia’s CEO acknowledges that Chinese tech is closing the gap. As he put it, “China is right behind us. We’re very, very close.” With national security, economic sovereignty, and tech competition converging, this is no longer just a trade issue it is a foundational battle over who controls the future of global computing.