Fixing the Rot in Ukraine
Thursday, Sept 25th, 2025
World News — Fixing the Rot in Ukraine
Economists
Ukraine’s struggle is no longer just on the front lines but within its own political and institutional structures, where democratic backsliding and corruption threaten to erode the resilience needed to withstand Russia’s assault. With America’s role diminished under Donald Trump, Europe must step up as Ukraine’s chief supporter, balancing urgent financial and military aid with firm pressure on Kyiv to preserve anti-corruption reforms, protect independent institutions, and restore democratic legitimacy. While the battlefield remains uncertain, Europe’s leverage should focus on preventing internal decay—offering incentives such as EU market access and membership progress while insisting on political renewal, including elections despite martial law. Only by fixing the rot at home can Ukraine sustain the fight and hold together the vision of a secure, democratic future.
Tech — Intel Seeking Investment From Apple
Bloomberg
Intel has approached Apple about making an investment in the struggling chipmaker as part of CEO Lip-Bu Tan’s turnaround plan, which has already drawn backing from the U.S. government, Nvidia, and SoftBank. While the discussions are still preliminary and unlikely to result in Apple switching back to Intel processors, a deal would give Intel added credibility in its effort to revive its foundry ambitions and regain lost ground against rivals like Nvidia and AMD. For Apple, which has emphasized domestic production and pledged hundreds of billions toward U.S. investment, supporting Intel could align with both political and strategic interests, even as its core chip manufacturing remains tied to TSMC.
Economics — Canada and Indonesia Ink Trade Deal
Bloomberg
Canada and Indonesia have signed a comprehensive economic partnership agreement aimed at lowering trade barriers, easing investment procedures, and establishing common rules on digital trade and intellectual property, marking a strategic alignment as both nations adjust to rising U.S. tariffs. The pact, signed by President Prabowo Subianto and Prime Minister Mark Carney in Ottawa, will give more than 90% of Indonesian goods—including textiles, palm oil, and processed foods—greater access to Canada’s market, while Canada gains stronger links to Southeast Asian supply chains and opportunities for expanded agricultural and energy exports. With bilateral trade at $4 billion last year, the deal underscores Canada’s broader push to deepen Indo-Pacific ties and reduce dependence on China and the U.S., pending legislative ratification in both countries.
Culture — Are You Addicting to Shopping?
Economists
Shopping addiction, or oniomania, is gaining new momentum in the age of social commerce, where platforms like TikTok, Shein, and Temu blend entertainment with e-commerce, turning purchases into interactive, dopamine-driven experiences that blur the line between fun and compulsion. Researchers estimate around 5% of people suffer from this disorder, which can devastate finances and relationships, and regulators in Europe are now investigating whether addictive platform design manipulates users into overspending. With livestream shopping, time-limited discounts, and social pressure to keep up with peers fueling compulsive behavior, China’s $1 trillion social-commerce model is rapidly spreading to the West. While some argue that these innovations simply enhance consumer choice, experts warn they may be exploiting psychological vulnerabilities, leaving regulators to balance protecting consumers with preserving convenience and digital retail growth.
The Daily Spark
Banking sector balance sheets are generally in good shape, and credit growth is positive, driven by large-bank lending.
Delinquency rates are high on credit cards and auto loans. Restarting student loan payments is a headwind to credit quality and credit growth.
The trade war has not yet had much impact on the banking sector or credit growth.
Higher interest rates are putting downward pressure on commercial real estate prices for office, multifamily and healthcare facilities. This remains a problem, in particular for regional banks.
Quote of the Day
“Ignorance is the most delightful science in the world because it is acquired without labor or pains and keeps the mind from melancholy.”
― Lulu Miller, Why Fish Don’t Exist: A Story of Loss, Love, and the Hidden Order of Life