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The Democratic Party won both houses of Congress, and the Israeli opposition seized the opportunity to demand Netanyahu's resignation

In the U.S. midterm elections, the Democratic Party won control of both houses of Congress, prompting Israeli Prime Minister Benjamin Netanyahu to face fierce criticism from domestic political opponents. The opposition accused him of long publicly supporting the Republican Party, undermining Israel's traditional bipartisan support in the U.S., and using the election results to push for the formation of a new government without Netanyahu.Yair Golan, leader of Israel's center-left opposition party, stated that the election results reflect Netanyahu's negative impact within both the Democratic and Republican parties in the U.S. Centrist leader Yair Lapid warned that Netanyahu's continued rule would jeopardize Israel's security and international standing.U.S.-Israel relations may also face new pressures. With the Democratic Party controlling Congress, there may be pressure on Israel through hearings, oversight investigations, and budget measures. Previously, there had been a shift within the Democratic Party regarding support for Israel's military actions and U.S. aid, a trend exacerbated by the military actions jointly launched by Trump and Netanyahu against Iran. Meanwhile, Israeli President Isaac Herzog plans to meet with representatives from various parties on Wednesday and Thursday to initiate the process of forming a new government. Netanyahu currently remains in office as caretaker Prime Minister.

The Hong Kong Monetary Authority launched the agency-based financial SAGE project and established an expert group

The Hong Kong Monetary Authority announced the launch of the SAGE project to promote the responsible development and application of agentic finance in Hong Kong and established an expert group on agentic finance. SAGE stands for Securing Agentic Finance with Governance and Enablement, which means combining governance and enablement to build secure and reliable agentic finance. The members of the expert group come from financial institutions, technology service providers, professional service organizations, and academia.The Monetary Authority stated that the SAGE project focuses on four areas: first, market development and application scenario exploration, including business-to-consumer (B2C) agentic shopping and daily payments, business-to-business (B2B) procurement and treasury management, as well as machine-to-machine (M2M) pay-per-use digital service fees; second, exploring methods for verifying artificial intelligence agent identities and authorization permissions, including "Know Your Agent (KYA)" and identity verification mechanisms; third, promoting discussions on interoperability standards and protocols; fourth, exchanging views on legal regulatory issues such as governance arrangements, legal responsibilities, and consumer protection.The Monetary Authority's Chief Executive, Eddie Yue, stated that agentic finance has the potential to reshape the way financial services are provided and used. The Monetary Authority hopes to consolidate Hong Kong's position in the next generation of financial technology while promoting innovation through relevant measures and communication with industry experts, ensuring that agentic finance aligns with user interests and maintains the stability of the financial system.

Monetary Authority of Singapore Chief Economist: After the increase in AI productivity, there may be room for easing

According to the Straits Times, Edward Robinson, Chief Economist of the Monetary Authority of Singapore, stated at the Beijing Financial Street Forum on October 20 that once artificial intelligence leads to widespread productivity improvements, central banks may relax monetary policy. However, currently, the AI investment boom is driving demand, and policies should maintain appropriate restrictions. He pointed out that AI-related investments are driving economic growth, but the technology has not yet brought significant productivity improvements to the broader economy, and he called for a gradual, data-driven approach.The Monetary Authority tightened monetary policy in April and July 2026 due to rising inflation risks, and maintained the policy unchanged in October. An October 14 statement warned that if the AI boom generates broader economic spillovers and raises unit labor costs, domestic inflation may remain high. Robinson noted that AI-driven electronic products accounted for over 70% of this year's export growth in Asia, but the growth of industries producing AI-related technologies mainly stems from increased investment and more intensive use of existing resources, rather than efficiency improvements. He cited OECD estimates stating that if sufficiently widespread and appropriately invested, AI could increase total factor productivity growth by up to 0.6 percentage points annually.

Bank of Japan Governor Kazuo Ueda: Monetary policy has entered a new phase and will continue to raise interest rates

According to Jinshi Data, Bank of Japan Governor Kazuo Ueda stated that Japan's core inflation is close to 2%, marking a policy shift, and the central bank's policy has entered a new phase where inflation cannot be allowed to rise further. Due to core inflation being close to 2% and the financial environment remaining accommodative, the Bank of Japan will continue to raise interest rates and adjust its monetary easing policy. The central bank will discuss whether to adjust the assessment of "core inflation close to 2%" at the upcoming meeting.Kazuo Ueda mentioned that the situation in the Middle East, demand for artificial intelligence, and exchange rates will influence the timing of interest rate hikes. The central bank has been monitoring the impact of the weakening yen and the Middle East situation on inflation. He also stated that it is difficult to make a clear statement about Japan's neutral interest rate, and the stability of 2% inflation is becoming increasingly important. The central bank will focus on consolidating the 2% inflation target. Additionally, Ueda noted that the main takeaway from this week's meeting (including the G20) was the communication with other policymakers regarding the impact of the Middle East conflict and demand for artificial intelligence on the global and Japanese economy, and there was nothing heard that deviated from the Bank of Japan's fundamental views. He exchanged opinions with Federal Reserve Chairman Waller but will not disclose specific details; since the meeting in Asheville, he has not contacted U.S. Treasury Secretary Yellen.

first_img The Hong Kong government responds to the regulation of emerging payment platforms, with the Monetary Authority receiving 16 complaints

On October 7, at a meeting of the Hong Kong Legislative Council, legislator Chan Chun-ying raised a written inquiry regarding the regulation of emerging payment platforms. The Acting Secretary for Financial Services and the Treasury, Chan Ho-lam, provided a written response. The inquiry pointed out that in recent years, new aggregation payment platforms have emerged, reaching out to small merchants with low fees and "buy now, pay later" methods. Some platforms have reported overdue payments and false entries, and there are platforms that are registered only as financial technology companies, without obtaining financial licenses, and have not disclosed their partner organizations or operational status.Chan Ho-lam stated that the government and financial regulatory agencies continue to monitor emerging payment models and take enforcement actions within the statutory framework. After consulting the Monetary Authority and Customs, from January 2024 to September 2026, the Monetary Authority received 16 complaints regarding the suspected unlicensed issuance or operation of stored value payment tools. After investigation, one was substantiated, and the complainant did not report any financial loss. The Monetary Authority is following up with the relevant companies.The response pointed out that the Monetary Authority regulates stored value payment tools under the Payment Systems and Stored Value Facilities Ordinance. Unless legally exempt, issuing or operating without a license in Hong Kong is illegal. Money services that operate currency exchange and cross-border remittances must apply for a license from Customs unless exempted. Non-bank institutions providing "buy now, pay later" services involving loan activities must apply for a money lender license under the Money Lenders Ordinance. Cases suspected of being unlicensed or non-compliant are handled by the Monetary Authority, which may collaborate with other regulatory agencies or refer to law enforcement departments.
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