※[Global Morning Briefing] summarizes global news delivered by Seoul Economic Daily.
China-Russia Embrace Five Days After U.S.-China Summit... Xi Reportedly to Visit North Korea Next Week
Five days after U.S. President Donald Trump's visit to Beijing, Chinese President Xi Jinping and Russian President Vladimir Putin held a summit at the Great Hall of the People in Beijing on Thursday (local time), showcasing a strong bond between the two countries. The China-Russia handshake immediately following the U.S.-China negotiations is being interpreted as a clear message of opposition toward the United States.
After successive small-group and expanded meetings, the two leaders adopted a "Joint Statement on World Multipolarity and Promoting a New Type of International Relations." Xi indirectly criticized the United States, saying "the countercurrent of unilateral hegemonism is rampant," while Putin responded that "the comprehensive partnership between the two countries is a model for modern state relations." The two leaders called each other "old friend" and "dear friend," projecting a sense of intimacy.
The joint statement included concerns that the U.S. next-generation missile defense initiative, "Golden Dome," could have negative effects on international security. It also explicitly opposed NATO's expanded engagement in the Asia-Pacific region, opposed unilateral sanctions on North Korea, and stated that Japan's rearmament poses a threat to regional peace.
In the economic arena, agreements were signed in 20 fields, including trade, communications technology, and science. Regarding the construction of the "Power of Siberia 2" gas pipeline running from Russia's Yamal Peninsula through Mongolia to China, Kremlin spokesman Dmitry Peskov said an overall agreement, including the route and construction method, had been reached. For Russia, which needs new outlets following Europe's declaration of de-Russification of energy, China is a key consumer. China, however, did not issue an official position on the matter.
In the multimodal field, Google introduced "Gemini Omni," which integrates voice, image, and video processing, and overhauled its search function for the first time in 25 years. Searches are now possible using images and videos, and the service includes features that allow non-experts to easily produce and edit videos. Unlike OpenAI, which discontinued its video generation service "Sora," Google's move to strengthen multimodal capabilities is drawing attention as an effort to secure leadership in the Gemini ecosystem.
Meanwhile, U.S. weekly magazine Time, citing sources, reported that Xi is expected to make a state visit to North Korea as early as next week. If Xi pushes ahead with the visit, the trilateral solidarity among North Korea, China, and Russia will become more visible following the China-Russia rapprochement, and significant repercussions are expected for the Trump administration's diplomatic strategy toward North Korea and China.
Inflation, Fiscal Concerns Trigger 22.6 Trillion Won U.S. Treasury Futures Sell-Off in One Hour
Concerns over a war between the United States and Iran are stoking inflationary pressure and fiscal instability, sending global bond markets into turmoil. On Wednesday (local time), the U.S. 30-year Treasury yield surged to 5.20% intraday, the highest level since 2007, just before the global financial crisis, and within just one hour, Treasury futures sell orders worth approximately 22.6 trillion won in spot equivalent flooded the market.
According to Bloomberg, 136,500 contracts of 10-year Treasury futures and 83,000 contracts of 5-year Treasury futures were traded directly between institutions in 10 block deals that day. The 10-year yield also rose to 4.69% intraday, reaching its highest level since the start of this year. Since bond prices and yields move in opposite directions, a sharp rise in yields means a sharp drop in bond prices.
The shock is not limited to the United States but is spreading throughout the global bond market. The U.K. 30-year Treasury yield approached 6%, and Germany's 30-year yield (3.69%) is hovering at its highest level since 2011.
Two main factors are cited as the background for this surge. First, with U.S.-Iran armistice negotiations stuck in a stalemate and high oil prices persisting, concerns over a resurgence of inflation are growing. Bonds, which provide fixed income, see their real returns decline during periods of rising prices, making them less attractive as investments. Second, U.S. government debt, which has swollen to record levels, is shaking fiscal credibility, leading investors to demand higher risk premiums for holding long-term bonds. Some market analyses suggest that "bond vigilantes" have begun to move in earnest.
The yield surge is expected to have ripple effects across the real economy as well. Reuters warned that rising Treasury yields could push up funding costs not only for governments but also for businesses and households, significantly pressuring spending and investment capacity.
Google Declares 'AI for Everyone'... "Gemini 3.5 Flash, Half the Cost, Four Times the Speed"
At its annual developer conference, Google put forward an AI model that is faster and cheaper than its competitors, fully entering the popularization race against OpenAI and Anthropic. Google CEO Sundar Pichai held "Google I/O 2026" in Mountain View, California on Wednesday (local time) and unveiled a host of new AI services, including the lightweight model "Gemini 3.5 Flash."
Gemini 3.5 Flash has been deployed as the default model for the Gemini app and Google Search AI Mode worldwide starting that day. Pichai emphasized that output speed is four times faster than competitors, and the cost is half to one-third, saying, "If a company that uses 1 trillion tokens per day shifts 80% of its work to this model, it can save more than $1 billion annually." Breaking from the convention of releasing lightweight models after premium ones, the decision to debut Flash first is interpreted as a strategy to make rapid popularization the top priority.
The subscription pricing structure was also revamped. Google launched a new "AI Ultra Plan" priced at $99.99 per month while simultaneously lowering its existing top-tier plan from $250 to $200 per month. Amid growing consumer dissatisfaction with rising AI subscription fees, the company strengthened its competitiveness by matching the prices of comparable services from OpenAI and Anthropic.
An AI agent targeting general consumers, "Gemini Spark," was also unveiled. Spark can run 24 hours a day and operates freely on regular smartphones equipped with the Gemini app. The move is interpreted as showing Google's determination to take over the agent market, which has been led by OpenAI and Anthropic.
