FinanceGlobal EconomyThought

This week’s featured stories 24 August – 30 August 2026…

The state of AI in 2026: on the road to ROI

The latest McKinsey Global Survey on the state of AI finds that organizations are scaling AI across the enterprise—deploying it in more business functions and using tools ranging from chatbots to coding agents and agentic systems that can act autonomously across workflows

Citi report highlights AI-driven supply-chain shift

AI adoption in trade finance up 18%; Latin American exports to South Asia/ASEAN surged 82%; firms diversifying to Vietnam/Mexico amid tariff volatility and data-centre capex boom

ETG expands sustainability-linked loan to $600 million

Kenyan agribusiness secures larger DFI-backed facility (FMO, TDB Group + others) tied to deforestation, farmer training, and gender metrics, boosting working capital for African smallholders and intra-African trade

IFC-Kazakh bank partnership expands SME trade finance

New facility under Global Trade Finance Program targets risk hurdles to unlock financing for SMEs in emerging markets amid tighter liquidity

Exports to ASEAN surge; regional hub role solidifies

China’s exports to ASEAN rose ~25% YoY in first seven months; bloc now top market ahead of US/EU, with strong gains to Vietnam, Malaysia, Thailand amid diversification around (not away from) China

G20 merchandise trade accelerates in Q2

OECD data shows imports +6.7%, exports +5.9% (current USD); strong US/China/services contributions signal resilience despite geopolitical and tariff headwinds

Mercosur engagement renews amid deal implementation

South American bloc pushes dealmaking; EU-Mercosur interim trade provisions (provisional since May) continue shaping agricultural and industrial flows despite internal quota and political frictions

Tariffs remain top risk to global trade outlook

EIU notes renewed protectionism (Section 301 forced-labour duties, overcapacity probes, polysilicon/drones) after Supreme Court rulings, eclipsing Iran-war effects; AI upcycle still supports baseline

DEFA digital economy pact advances toward November signing

Negotiations concluded; framework targets interoperable digital trade, payments, data flows, and e-commerce, potentially doubling regional digital economy toward $2 trillion by 2030. Indonesia eyes major share

China trade boom reinforces centrality

Strong export growth from China supports ASEAN as manufacturing/diversification hub while bloc balances US reciprocal deals

Europe’s corporate tax trilemma

The EU’s implementation of global anti-tax avoidance rules and the global minimum tax is widely regarded as a success. Madalena Barata da Rocha, Roel Dom, Pascal Saint-Amans and Bo Sangers consider the trilemma between tax sovereignty, revenue protection and investment neutrality that has emerged

Why the Taxation Omnibus Is a model for EU regulatory reform

Chris Mantas examines the European Commission’s Taxation Omnibus, a flagship simplification package that streamlines EU tax reporting obligations, withholding procedures, and crossborder compliance rules as part of the Commission’s broader competitiveness agenda

Why the EU right to consent to personal data processing doesn’t work

Bertin Martens argues that consent banners for the collection of personal data under the European Union’s GDPR are, in practice, a legal and technical fiction

Once again, the EU utters fine words on the Middle East… but where’s the beef?

Israel moves ahead with its controversial ‘E1’ settlement plans that would split the West Bank and effectively end prospects for a two‑state solution. James Moran argues that EU inaction only reinforces Netanyahu’s belief that the EU is a ‘paper tiger’

Did the 2022 energy inflation surge dent ECB and Fed credibility? Evidence across horizons

Inflation expectations show that the ECB and Fed stayed credible after the 2022 energy shock, despite euro area short-term weakness and US drift

Where to for the Pacific’s Ocean of Peace?

Sandra Tarte looks at the fortunes of the Blue Pacific Ocean of Peace Declaration since it was adopted by leaders of the Pacific Islands Forum’s member states in Honiara in 2025