America
Global markets remain in shock: Nikkei, Dow Jones, Kospi at lows
Japan’s Nikkei 225 stock index started the week down 12.4%, continuing the sell-off that has rocked global markets as investors fretted over the state of the US economy.
The Nikkei closed down 4,451.28 points at 31,458.42. The broader TOPIX index fell 12.8% as selling intensified in the afternoon.
Earlier on Monday, the S&P 500 Index fell 2.4% and the Dow Jones Industrial Average fell 2.6%, turning the trading outlook on Wall Street negative.
The report, which showed that hiring by US employers slowed much more than expected last month, according to AP, shook financial markets and destroyed the euphoria that had lifted the Nikkei to an all-time high above 42,000 in recent weeks.
The Nikkei 225 fell 5.8 per cent on Friday, its worst two-day drop ever. Its worst one-day drop was on 20 October 1987, the so-called “Black Monday”, when it fell 3,836 points, or 14.9%. That Monday was grim enough, with the benchmark falling as much as 13.4% at one point.
Tokyo stocks have been falling since the Bank of Japan (BoJ) raised its key interest rate on Wednesday. The Nikkei is currently down 3.8% year-on-year.
One of the factors that prompted the BoJ to raise rates was the ongoing weakness of the Japanese yen, which has pushed inflation above the central bank’s 2% target. Early on Monday, the dollar fell to 142.59 yen from 146.45 at the end of Friday, well below levels of over 160 yen a few weeks ago. The euro also fell from $1.0923 to $1.0914.
Stocks hit highs earlier this year on the back of developments in artificial intelligence.
The recent sell-off has also hit markets dominated by computer chip makers such as Samsung Electronics and other technology stocks: South Korea’s Kospi fell more than 9 per cent on Monday as Samsung’s shares fell 11.6 per cent. The Kospi closed down 8.8 per cent at 2,441.55.Taiwan’s Taiex also lost 8.4 per cent as the world’s biggest chipmaker Taiwan Semiconductor Manufacturing Co. fell 9.8 per cent.
Hong Kong’s Hang Seng index lost 2.2% to 16,579.97 and Australia’s S&P/ASX 200 index fell 3.7% to 7,649.60.
Double whammy on Borsa Istanbul
The Shanghai Composite Index, which has been somewhat isolated from other world markets by capital controls, initially rose but then fell 1.5 per cent to 2,862.56.
The S&P 500’s 1.8 per cent drop on Friday was the first consecutive loss of at least 1 per cent since April. The Dow Jones Industrial Average fell 1.5 per cent and the Nasdaq Composite Index fell 2.4 per cent, 10 per cent below the record it set last month. Investors call a decline at these levels a “correction”.
On the Borsa Istanbul, the circuit breaker system connected to the index was activated at 09:55:22 following a 6.72 per cent drop in the morning. Then, as the decline in the index deepened, the circuit breaker was activated for the second time. The BIST 100 index fell below the critical 10,000 points.
Stocks fell sharply on Friday after weaker-than-expected US payrolls data fueled fears that high interest rates to curb inflation could drag the US economy into recession.
The VIX, an index that measures how worried investors are about an impending drop in the S&P 500, jumped nearly 26% early on Monday. Eventually, the VIX rose to 34. The VIX, which is considered Wall Street’s “fear indicator”, last reached this level in June 2020. Bitcoin, which recently soared to nearly $70,000, fell 14 per cent to $54,155.
Oil prices also fell, with US benchmark crude down 74 cents to $72.78 a barrel. Brent crude, the international standard, lost 67 cents to $76.14 a barrel.
Artificial intelligence stocks plunge
Artificial intelligence stocks fell as much as 9.6%, with Apple down 6.1%. Microsoft, Meta and Tesla also lost more than 5%.
While the largest US companies fell on Tradegate in Germany, Nvidia led the “Magnificent Seven” group in the decline of US stock index futures.
Nvidia fell as much as 17% on Tradegate, while Apple fell 10%, Microsoft 9%, Alphabet 9.6%, Amazon 9.3%, Meta 10% and Tesla 10%.
According to Bloomberg, these moves are a sign that “the air is coming out of the equity markets, driven by big gains in a small number of stocks”.
It notes that if confidence in the AI trade continues to fall on weak earnings and the US economy really takes a hit, there could be more losses to come.
However, it points out that a “window of opportunity” could open for investors, especially if central banks take action to cut interest rates, which could support sectors that benefit from low borrowing costs.
Goldman Sachs: A healthy correction
In a report, IG’s Yeap Jun Rong said investors will be watching data on the US services sector from the Institute for Supply Management on Monday, which could help determine whether the global sell-off was an overreaction.
The global rout began just days after US stock indexes had their best day in months after Federal Reserve Chairman Jerome Powell gave the clearest sign yet that inflation is slowing enough to start cutting interest rates in September.
Now there are growing concerns that the Fed may have increased the risk of recession in the world’s largest economy by keeping its key interest rate at a two-decade high for too long.
On the other hand, Christian Mueller-Glissmann of Goldman Sachs told Bloomberg that the market situation shows a “somewhat healthy correction”. He also argued that while the weakness in US data was a surprise, Goldman Sachs economists were “not that worried”.
Bets on an immediate rate cut: Will the Fed cut in a week?
The market turmoil is fuelling bets on an immediate policy response from the Fed.
Investors are currently pricing in a 60% chance of a 25bp cut within a week.
Given that the central bank announced its last decision just a few days ago, this is seen as a real sign of concern.
America
Israel looks to Latin America as Isaac Accords seek to expand regional partnerships
As ties between Israel and Latin American countries continue to deepen, the newly launched Isaac Accords are emerging as a framework for expanding cooperation across the region.
The initiative formed the backdrop to a panel discussion on opportunities for Israel in the Western Hemisphere at the 2026 JNS International Policy Summit in Jerusalem on Monday.
The panel, titled “The Coming Isaac Accords: Israel and Latin America,” brought together diplomats and regional experts to discuss developments that could encourage participation in the Isaac Accords, the strategic framework announced in April by Argentine President Javier Milei and Israeli Prime Minister Benjamin Netanyahu during Milei’s visit to Israel.
Moderated by JNS correspondent Etgar Lefkovits, the discussion featured Panama’s Ambassador to Israel Ezra Cohen, former US Ambassador to Costa Rica Fitzgerald Haney, and Leah Soibel, founder and CEO of Fuente Latina, which provides Middle East news coverage to Spanish-language media outlets.
Soibel said:
“What we need to understand is that the Isaac Accords have an impact that extends far beyond diplomacy. Twenty percent of the US population is Hispanic. By 2050, that figure is expected to reach 30% of the population. This is the demographic group with the lowest levels of antisemitic sentiment.”
The panel also celebrated the victory of pro-US and pro-Israel candidate Abelardo De La Espriella, who defeated his left-wing rival in Colombia’s presidential election on Sunday.
De La Espriella had made the restoration of relations with Israel and the relocation of his country’s embassy to Jerusalem central elements of his campaign platform.
Cohen said that when he looks at a map of Latin America, only four countries are currently governed by left-wing, anti-Israel administrations.
Referring to an earlier panel discussing what participants described as a bleak future for Jews in Europe, Cohen remarked: “When one window closes, another opens. Come to Latin America.”
Haney argued that “Israel’s friends keep winning” and predicted that “we are going to see a lot more positive developments coming out of Latin America.”
He said a colleague in Colombia had sent him a text message promising: “On August 7 at 5 p.m., we will restore relations with Israel.”
Haney noted that this was the date and time when Colombia’s new president is scheduled to take office and predicted that another announcement regarding the relocation of Colombia’s embassy to Jerusalem would follow.
He described Colombia as the latest in a series of Latin American countries turning toward Israel in pursuit of “shared values, shared prosperity and shared security.”
Haney also said that the Israel Allies Foundation, a pro-Israel advocacy group that works with lawmakers, would bring together representatives from 11 legislative bodies across Latin America in Buenos Aires over the weekend to sign a joint declaration of principles.
He noted that the organisation had successfully worked with Brazil’s legislature despite the position of President Luiz Inácio Lula da Silva, whom he described as anti-Israel.
According to Haney, Brazil’s legislature has developed a plan to deepen relations with Israel over the next nine months.
Soibel said that 12 Latin American countries had renewed or strengthened their friendships with Israel and that interest in Israel among Spanish-language content creators, influencers and journalists continues to grow. Her organisation has brought 300 non-Jewish Hispanic journalists to Israel.
The panel also highlighted the launch of a Panama-based Spanish-language edition of JNS. Soibel said the work of pro-Israel organisations remains vital because so few such groups operate in the region, while, in her words, “Iran, Qatar and Hezbollah are conducting propaganda campaigns in Spanish throughout Latin America.”
She continued:
“You could probably count on one hand, perhaps two, the number of organisations and leaders operating across the Spanish-speaking world. That makes this work extraordinarily strategic. Its impact is enormous. Israel and the Jewish people should invest more. There is a large Hispanic-Israeli population in Israel, and many of them were victims of the October 7 attacks. We have stories to tell. What we need now is investment and distribution channels to spread those messages and information.”
The panel concluded on an optimistic note, with participants expressing confidence that Latin America will become an increasingly important pillar of Israel’s global diplomatic strategy in the years ahead.
Milei and Netanyahu launch new accord
Argentine President Javier Milei and Israeli Prime Minister Benjamin Netanyahu announced the launch of the Isaac Accords last Saturday.
The initiative establishes a new strategic framework aimed at strengthening cooperation among Argentina, Israel and like-minded partners across the Western Hemisphere, described as “the descendants of Isaac and nations rooted in the Judeo-Christian tradition,” in defence of freedom and democracy and in the fight against terrorism, antisemitism and drug trafficking.
Participating countries will seek to strengthen coordination against what the agreement describes as terrorist organisations, with particular emphasis on “Iran’s efforts to expand terrorist networks and operational presence throughout the Western Hemisphere.”
The initiative also seeks to promote coordination and alignment in international forums while creating a framework for expanded cooperation in innovation, technology, trade and economic openness.
Speaking alongside Netanyahu at a joint press conference, Milei said:
“We expressed our unwavering support for the United States and Israel in their struggle against terrorism and the Iranian regime, not only because it is the right thing to do, but also because our countries are united through shared suffering.”
Milei referred to the 1992 bombing of the Israeli embassy in Buenos Aires and the 1994 attack on the AMIA Jewish community centre.
Although Argentine courts have attributed both attacks to Iran, Tehran has consistently denied any involvement.
Netanyahu praised the Argentine leader for demonstrating what he called “moral clarity” by standing with Israel and said he hoped other Latin American governments would join the Isaac Accords, which both leaders described as being inspired by the Abraham Accords.
The Abraham Accords, brokered by Washington in 2020, triggered a wave of normalisation in Arab-Israeli diplomatic relations.
US Ambassador to Israel Mike Huckabee attended the signing ceremony and described Milei and Netanyahu as “President Trump’s two closest friends.”
Huckabee added: “I do not think there are two other world leaders whom our president respects as much and with whom he has such a personal relationship.”
During the visit, the two sides also announced the launch of the first direct commercial flights between Buenos Aires and Tel Aviv, scheduled to begin in November.
Milei said the new route would create an “unbreakable bond” between the two countries and reiterated his intention to relocate Argentina’s embassy from Tel Aviv to Jerusalem.
“As soon as circumstances permit, we once again reaffirm our commitment to moving the Argentine embassy to Jerusalem,” he said.
America
Iran team leaves thank-you message in Los Angeles locker room after World Cup draw
Iran’s national football team left a message in its locker room at SoFi Stadium, thanking Los Angeles for its hospitality during the World Cup.
The players said they were leaving the city with honor after keeping their hopes of reaching the knockout stage alive with a 0-0 draw against Belgium.
In the handwritten note, published by the Iran Football Federation, the team wrote:
“From the ancient land of Persia thousands of years ago to the civilized Iran of today, the spirit of Iran remains alive and unshaken. Los Angeles, thank you for your hospitality. We arrived in Los Angeles with pride, competed with honor and leave with dignity.”
The note also thanked Iranian supporters who gave their “hearts, voices and souls” to the team throughout its two matches and concluded with a call for peace, respect and friendship among all nations.
Los Angeles hosted both of Iran’s Group G matches, while the team returned to its training base in Tijuana between games.
Iran has been based in Tijuana throughout the tournament and has had to travel back and forth to the United States for matches because of restrictions related to its stay in the country. Entry bans were also imposed on some members of the national team’s coaching staff and officials.
US authorities said the team’s travel arrangements remain under review, while discussions continue over the possible easing of some restrictions.
Iran head coach Emir Ghalenoei has repeatedly criticized the travel restrictions, saying his squad has faced challenges that no other team in the tournament has been required to endure.
After drawing 2-2 with New Zealand in its opening match at SoFi Stadium, Iran will play its final Group G match against Egypt in Seattle.
America
Colombia’s de la Espriella claims narrow presidential victory in runoff election
The first results from Colombia’s presidential runoff election showed that right-wing candidate Abelardo de la Espriella, backed by Donald Trump, had narrowly won the vote.
The victory of de la Espriella, who has no prior political experience, signals a fundamental shift in the government’s approach to tackling the country’s long-running internal armed conflict and rising violence.
Throughout the campaign, de la Espriella pledged to intensify military pressure on illegal armed groups, drug trafficking networks and criminal organizations. He succeeded in defeating left-wing candidate Iván Cepeda, a close ally of incumbent President Gustavo Petro.
Speaking after the initial results were released, de la Espriella said: “Today marks the beginning of a new era for our country. This era is built on the free and democratic will of millions of citizens who chose to believe in a great, secure, prosperous Colombia full of opportunities.”
Cepeda says he will await official results
According to the preliminary count, with more than 99% of ballots tallied in the runoff election, de la Espriella secured approximately 49.7% of the vote, while Cepeda received 48.7%.
Cepeda, who has not yet conceded defeat, said the preliminary results were neither official nor binding.
“When the official count is completed, the final results are known and the necessary verification procedures are finished, we will recognize the official outcome produced by that process,” Cepeda said.
Reuters reported that the verification process showed very little variation from the preliminary counts recorded during the first round of voting on May 31.
De la Espriella, who grew up in Colombia’s Caribbean region, drew particularly strong support from that part of the country. Addressing a large crowd gathered in the coastal city of Barranquilla after the first results emerged, de la Espriella, who has adopted the nickname “El Tigre” (The Tiger), declared: “Tonight is the beginning of a new story for the nation. Tonight a new era begins, a change of order begins.”
He said he would govern for all Colombians, including those who voted for his opponent, and pledged loyalty to and protection of Colombia’s 1991 constitution.
At celebrations in Barranquilla, supporters wore Colombia’s yellow national football jersey and waved Colombian flags.
With images of de la Espriella projected behind the stage, supporters chanted “Stand firm for the homeland” and “Petro out!” as fireworks lit the sky. Some supporters wore hats bearing the slogan “Make Colombia Great Again,” echoing those worn by supporters of US President Donald Trump.
Trump reacted to the results in a Truth Social post, writing: “BIG won!”
One supporter, Patricia, told reporters: “We are tired of the murders in this country and of this government’s bureaucracy. Now we finally have a president from the coastal region.”
Another supporter said: “We are proud of the Tiger. We hope he transforms the country and, above all, creates a new nation where we will have jobs and greater security.”
Supporters of Cepeda, who narrowly lost the election, also voiced concerns on the streets of Barranquilla.
Catalina La Grande, a student and activist who supports Cepeda, told the BBC: “There is a visible sense of unease in the air. Such a narrow margin worries us because it reflects how divided the country is and the enormous challenges we face in defending democracy, peace and human rights.”
Another young voter backing Cepeda, Maria, said the results showed a divided country but noted that the public had remained peaceful.
“Given the level of polarization we are experiencing, the absence of violence in the streets is a positive development,” she said.
The sharp divisions between the candidates have fueled concerns that unrest could emerge if some opposition groups refuse to accept the outcome.
Late on Sunday night, clashes were reported between protesters and police in Cali, Colombia’s third-largest city. Demonstrators reportedly burned US flags, while police used tear gas to disperse large crowds angered by de la Espriella’s victory.
President Gustavo Petro is also reported to be considering challenging the result. In a post on X, Petro said that based on the preliminary count, “no one can be declared president” and alleged that the security of some polling stations had been compromised. He called for an audit of the voting software but provided no evidence to support the claims.
Who is Abelardo de la Espriella?
De la Espriella, who has no political background, is a lawyer and businessman. During his legal career, he represented clients including Alex Saab, an ally of former Venezuelan President Nicolás Maduro who has faced money laundering charges in the US, and David Murcia Guzman, one of Colombia’s most notorious fraudsters.
De la Espriella says he handled those cases in his capacity as a defense attorney.
Often compared to El Salvador’s President Nayib Bukele because of his security policies and distinctive beard, de la Espriella and his supporters frequently wear Colombia’s national football jersey at rallies and on social media. Critics accuse him of politicizing the national team shirt.
He is also known for regularly addressing campaign crowds from behind bulletproof glass panels.
Colombia’s internal armed conflict has persisted for decades, but violence has intensified in recent years. Armed groups and criminal organizations, including dissident factions of the FARC, the ELN and the Clan del Golfo, have doubled their membership over the past five years.
Competition for control of lucrative cocaine trafficking routes and illegal mining operations has further escalated the violence. Fighting along the Colombia-Venezuela border last year displaced tens of thousands of people. Cocaine production in the world’s largest cocaine-producing country has reached record levels.
Critics of President Petro argue that his “total peace” strategy, which prioritizes negotiations with armed groups, has failed, claiming that such groups have used ceasefire arrangements to expand their territorial control and influence.
De la Espriella has pledged to cancel all negotiations with illegal armed groups and increase military pressure to restore order.
As part of that agenda, he has promised closer cooperation with the US, the construction of massive prisons in Colombia’s forests, a smaller state apparatus and reforms to the healthcare system.
Having lived and worked in Miami for many years, de la Espriella has held US citizenship since 2023. During the election campaign, he received support from Donald Trump, who said de la Espriella would “stop illegal migration, fight crime and drugs, and restore law and order.”
Before the election, Trump also said de la Espriella would feel “the full support and strength of the United States” behind him.
Although Colombia has historically been one of Washington’s closest allies in the region, relations have become strained in recent years due to sharp disagreements between President Trump and President Petro over migration policy, tariffs and military intervention in Latin America.
De la Espriella’s election also aligns with a broader trend across Latin America, where security concerns have pushed politics to the right. His victory was welcomed by other conservative leaders across the region.
Argentine President Javier Milei said Colombians had “chosen the path of economic freedom, prosperity and uncompromising security” and had declared that enough was enough to transnational organized crime and drug trafficking.
Chile’s José Antonio Kast said: “A new era of freedom is beginning for Colombia, one that will allow the country to regain security and prosperity.”
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