*[Global Morning Briefing] summarizes global news delivered by Seoul Economic Daily.*
Yen Breaks 162 Mark, Lowest Since 1986 Plaza Accord
The yen weakened to the 162-per-dollar range in the New York foreign exchange market on Tuesday, marking its lowest level since December 1986. The downward trend has not reversed despite a series of currency defense measures from the Japanese government and the Bank of Japan.
According to Bloomberg, the yen-dollar exchange rate rose to 162.44 yen intraday, following 161.78 yen the previous day. This figure surpassed the closing rate of 158.30 yen on December 31, 1986, when the Plaza Accord was signed. Nikkei assessed that beyond this range, the market enters "uncharted territory" with no historical reference points.
Earlier, the Japanese government intervened in the market by injecting a record 11.73 trillion yen from late April to late May, and U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Satsuki Katayama discussed coordination measures. The Bank of Japan also raised its base rate from 0.75% to 1% last month, signaling the possibility of further hikes.
However, observers point out that these stabilization efforts have been undermined as the government of Japanese Prime Minister Sanae Takaichi announced a large-scale fiscal plan to invest more than 370 trillion yen in strategic industries such as artificial intelligence and semiconductors by 2040. Maki Ogawa, senior analyst at Sony Financial Group, pointed to a "bad rate increase" phenomenon in which the yen weakens even as long-term interest rates rise.
Finance Minister Katayama said the same day, "We are prepared to respond, including with more drastic measures." But with the U.S. Federal Reserve expected to raise rates further within the year, the prevailing market view is that the yen will fall further to 165 yen.
"Clean the Desk" Is All It Takes: Chinese Robot Beats U.S. to No. 1
Beijing-based humanoid robot startup Spirit AI has outperformed a leading U.S. rival in evaluations with its self-developed Vision-Language-Action (VLA) model. The technology is seen as surpassing the limitations of existing Chinese robots, which were confined to simple repetitive movements, by enabling robots to perceive their environment and perform tasks on their own with only a command input.
During a visit to the company's headquarters in Zhongguancun, Haidian District, Beijing, a robot was observed recognizing and organizing objects without separate detailed instructions in response to a single desk-cleaning command. Through its "VLA model" unveiled in January this year, the company implemented a method of perceiving its surroundings via sensors and cameras, making instant judgments, and carrying out actions. It achieved results surpassing the model of U.S.-based Physical Intelligence (PI) on "Robot Arena," a platform for evaluating robot brain performance.
Spirit AI's strength lies in securing real-world data rather than internet photos or simulations. The company has built more than 400,000 data collection points across China and developed its own infrastructure, such as three-fingered wearable gloves, to accumulate precision task data. Its goal is to secure 1 million hours of valid data within the year. Thanks to this precision, companies requiring strict manufacturing processes, such as Bosch and CATL, have participated as strategic investors and are deploying the robots in their own factories.
The company's valuation surpassed 20 billion yuan in March this year, joining the "20 billion yuan club" alongside Unitree, AgiBot, and Galbot. Venture capital firms affiliated with Xiaomi founder Lei Jun and Alibaba founder Jack Ma also invested. The number of employees has more than doubled this year to around 200.
However, the company explained that its robot brain model is still in its early stages and has not yet reached profitability. It said it currently secures revenue through the production and sale of robot bodies, while supporting research and development by equipping them with its own model and training them.
Trump Could Touch Everyone but the Fed: Supreme Court Overturns 91-Year Precedent
The U.S. Supreme Court has blocked President Donald Trump's attempt to dismiss Federal Reserve Governor Lisa Cook. On the same day, it ruled that the dismissal of a Federal Trade Commission (FTC) member was lawful, resulting in a 91-year change in precedent over personnel authority surrounding independent agencies, with significant repercussions expected.
According to Bloomberg and others on Monday, the Supreme Court ruled 5-4 that Cook could retain her board position while the dismissal-related lawsuit proceeds. Conservative Chief Justice John Roberts and Justice Brett Kavanaugh sided with three liberal justices. Earlier, Trump had unilaterally announced Cook's dismissal through Truth Social last August, alleging that she had committed fraud in a past mortgage loan process.
Chief Justice Roberts noted that the dismissal notice via Truth Social did not give Cook sufficient opportunity to explain herself, stating, "The dismissal of a Fed governor can be decided only by the president, but it is not a decision that can be made for no reason at all." Wall Street Journal reporter Nick Timiraos named Fed Chair Kevin Warsh as the biggest beneficiary of the ruling, assessing that Warsh would be able to perform his duties more independently, free from pressure to cut rates.
On the other hand, the Supreme Court ruled the same day, 6-3, that Trump's dismissal of FTC Commissioner Rebecca Kelly Slaughter last year was lawful. This overturned a 1935 precedent that prohibited the dismissal of independent agency officials over policy disagreements. Trump had dismissed Commissioner Slaughter and Commissioner Alvaro Bedoya, both Democratic nominees, last year, filling the FTC with only Republican nominees.
The New York Times forecast that the ruling's impact would extend to more than 20 independent agencies, including the Federal Communications Commission (FCC), the Securities and Exchange Commission (SEC), and the National Labor Relations Board (NLRB).
6 Euros per Garment: France Targets China's Shein and Temu
The French Senate has passed a regulatory law imposing fines on ultra-low-cost fast fashion companies. The measure effectively targets China's Shein and Temu, and is widely seen as a check aimed at curbing environmental pollution while protecting the country's domestic textile industry.
According to the Wall Street Journal on Monday, the ultra-fast fashion regulatory law that passed imposes a fine of up to 6 euros per ultra-low-cost garment and prohibits advertising and influencer promotion by companies designated as fast fashion. The fine ceiling is set to be raised in stages to 10 euros by 2030.
The regulation targets companies that mass-produce new products at cheap prices in short cycles, generating clothing waste. According to the European Environment Agency, the European Union produced about 7 million tons of textile waste in 2022, or about 16 kilograms per person. The regulation includes China's Shein and Temu but excludes Europe's H&M and Zara, leading to interpretations that it directly targets Chinese firms that have pressured local traditional retailers with low-price offensives.
In response, Shein countered that there would be no problem since it produces in small quantities and replenishes stock only when demand is confirmed. Temu also explained that it is merely an online marketplace directly connecting consumers and manufacturers, and that this approach contributes to maintaining low prices.
In Italy as well, lawmakers from Prime Minister Giorgia Meloni's coalition have introduced a similar bill that includes the introduction of an environmental rating system for clothing, restrictions on fast fashion advertising, and the establishment of a levy on low-cost parcels from outside the EU. Such moves to respond to Chinese e-commerce platforms are spreading across European countries. While comprehensive regulations on textile sustainability and e-commerce had been in place at the EU level, France is the first to introduce a bill directly aimed at the business models of Shein and Temu. Socialist Party Senator Mickaël Vallet emphasized the need for the regulation, saying, "Fast fashion is destroying the French textile industry."
