Global Headlines on July 17, 2025 │ Outlook on Political and Economic Impacts

This article highlights the major world news reported on July 17, 2025, and offers projections for each event’s future trajectory and economic effects.

1. Air Defense Drill Conducted in Taiwan

• In Taipei, an “air raid siren exercise” was held—residents practiced indoor sheltering and road closures.
• Outlook
  • Public investment in air defense systems and cyber defense will increase.
  • To minimize disruption to tourism and logistics, comprehensive public communication about drills will be essential.

2. NATO Prepares to Deploy Patriots to Ukraine

• The NATO Supreme Allied Commander announced plans to send surface-to-air missile units to Ukraine.
• Outlook
  • Deployment could strengthen Ukraine’s deterrent against Russian air attacks.
  • However, there is a risk of Russian retaliation and potential volatility in energy markets.

3. Record Rainfall in Central South Korea

• Over 400 mm of rain fell in 72 hours across Chungcheongnam-do, displacing more than 1,000 people and causing two fatalities.
• Outlook
  • Urgent upgrades to urban water resistance and drainage infrastructure are needed.
  • Insurance and reinsurance markets will develop new products priced to reflect higher disaster costs.

4. Yen Hits Lowest Level in a Year

• Uncertainty around Japan’s Upper House election outcome and U.S. trade talks pushed the yen downward.
• Outlook
  • Exporters will benefit from currency gains, but rising import costs for raw materials pose concerns.
  • Investors will watch for potential currency intervention and monetary policy adjustments by the government and BOJ.

5. TSMC Posts Record Quarterly Profits

• Q2 net profit reached $13.5 billion, up 60% year-on-year.
• Outlook
  • Continued massive investments driven by growing AI demand.
  • Focus will shift to strengthening supply-chain resilience and developing next-generation processes.

6. U.S. Senate Approves Cuts to Foreign Aid and Public Broadcasting Budgets

• A bill to substantially reduce foreign aid and public broadcasting funding was passed.
• Outlook
  • Reduced support to developing nations may expand China’s and the EU’s influence.
  • Domestically, cutbacks in public broadcasting funding are likely to provoke strong political debate.

7. Western Alert over China’s Rare Earth Strategy

• Western countries are racing to reduce dependence on China by accelerating mine development and recycling investments in Australia and Africa.
• Outlook
  • Securing access to critical materials will become a central element of national strategy.
  • Diversification of supply chains will advance as part of a broader technological sovereignty contest.

Conclusion & Overall Forecast

• Geopolitical Risks: Heightened tensions over Taiwan and Ukraine will increase defense and diplomatic spending.
• Climate Adaptation: Extreme weather responses, such as flood control, will be a major driver of infrastructure investment.
• Market Trends: Currency moves, energy prices, and semiconductor earnings will shape investor sentiment.
• Supply Chains: Diversification and security of materials and high-tech components will accelerate.

Going forward, policy and investment decisions by governments and companies will play a pivotal role in guiding global economic stability and growth.