Ready, Set, Go
This week: the U.S. loses its perfect credit score, a pause in the U.S.-China trade war, the PKK calls it quits, new Ukraine-Russia talks, and Europe’s slipping investment appeal
If you’re reading this on Sunday morning, I’m likely making my way across San Francisco in the Bay to Breakers race, one of the world’s oldest footraces, dating back to 1912. Though I’m writing this before the run, I’m certain it will be an experience that will catch my eye. Bay to Breakers is about more than just crossing the finish line: it’s also a showcase of creativity. Every year, runners try to outdo each other with unique costumes. For instance, I’ll be running with a group of twelve friends, all dressed as chefs, with some of us balancing a small plush Remy, from the movie Ratatouille, on our heads.
From San Francisco to New York, Berlin to Tokyo, why is everyone running these days? It’s almost become a running joke, pun intended. Memes, reels, and TikToks highlight how running has emerged as the go-to activity for millennials and older Gen Zers entering their late twenties and settling into their thirties. Running clubs have become the new places to meet people, especially as many grow tired of online dating and digital socializing. The Covid-19 pandemic only accelerated this shift, making running a lifeline to the outside world and a safer way to connect.
Beyond fitness and socializing, running offers a sense of purpose in a time when traditional markers of adulthood, like buying a home, marrying, or starting a family, are increasingly delayed or out of reach for many.
As I write this, I think of an episode from one of my favorite podcasts, Today Explained, which explores these reasons in depth.
With that, let’s sprint into what happened this week:
1. The U.S. lost its perfect credit rating
Moody’s downgraded the United States’ credit rating this week, stripping the country of its final perfect score among the big three rating agencies. The firm lowered the U.S. rating from AAA to Aa1, citing growing concerns about the government’s long-term ability to manage its debt. It pointed to a lack of meaningful progress across successive administrations in controlling ballooning deficits and rising interest costs. Moody’s had maintained a perfect credit rating for the United States since 1917.
A triple-A rating typically signals top-tier financial health and reliability. The downgrade puts Moody’s in line with Fitch, which lowered its U.S. rating last year, and S&P, which did so in 2011. In theory, a downgrade like this makes it more expensive for the U.S. to borrow, as investors may demand higher returns to compensate for increased risk.
Still, Moody’s emphasized that the U.S. retains “exceptional credit strengths,” including the scale and resilience of its economy and the dominance of the U.S. dollar in global markets.
Interested in more? CNN - The United States just lost its last perfect credit rating
2. U.S. and China hit pause on their trade war
The United States and China agreed Monday to temporarily ease the trade war that has strained global markets and frozen commerce between the world’s two largest economies. In a joint statement, the two sides announced a 90-day suspension of the tariffs they’ve imposed on each other and committed to continuing negotiations.
Under the deal, the U.S. will lower its tariffs on Chinese imports from 145% to 30%, while China will cut its tariffs on American goods from 125% to 10%. China also announced it would suspend additional retaliatory measures, including recent export restrictions on rare earth metals and magnets, key materials for the tech and aerospace industries.
The agreement has already boosted financial markets, but challenges remain ahead. Logistics firms expect a scramble to meet backlogged demand during the 90-day window, likely driving up shipping costs and, therefore, consumer prices. Meanwhile, even as China agreed to ease restrictions, several of its top agencies met this week to discuss tightening long-term controls on strategic mineral exports.
Interested in more? NYT - U.S. and China agree to temporarily slash tariffs in bid to defuse trade war
3. The PKK says it is disbanding after four decades of conflict
The Kurdistan Workers’ Party (PKK), a militant group that has fought a 40-year insurgency against the Turkish state, announced this week that it is laying down arms and formally disbanding. The move marks the potential end of one of the longest-running conflicts in the region, which has claimed more than 40,000 lives.
Originally seeking an independent Kurdish homeland, the PKK gradually shifted its goals toward expanded autonomy and civil rights for Kurds, who make up roughly 20% of Turkey’s population. In a statement published by an affiliated news agency, the group declared it had “completed its historical mission” and would now pursue its goals through democratic politics. This announcement follows a February letter from PKK founder Abdullah Öcalan, imprisoned since 1999, calling on the group to abandon armed struggle.
The PKK is classified as a terrorist organization by Turkey, the EU, the UK, and the U.S. Its disbandment, if followed through, would mark a historic shift in Turkey’s domestic affairs. UN Secretary-General António Guterres welcomed the development as “an important step towards peace.”
Interested in more? BBC - Kurdish group PKK says it is laying down arms and disbanding
4. Ukraine and Russia meet for first direct talks since 2022
Ukrainian and Russian officials met this week in Istanbul for their first face-to-face negotiations since March 2022, a month after Moscow launched its full-scale invasion. The brief meeting lasted less than two hours.
Ukrainian officials described the Kremlin’s new proposals as “unacceptable,” claiming Moscow demanded that Ukraine withdraw troops from its own territory in exchange for a ceasefire. Despite the lack of progress on a broader truce, both sides agreed to a mutual exchange of 1,000 prisoners of war.
Before the meeting took place, Ukrainian President Volodymyr Zelensky confirmed that Kyiv would send a delegation but criticized the low rank of the Russian team. Moscow’s lead negotiator, presidential aide Vladimir Medinsky, insisted his delegation had “all the necessary competencies.”
Interested in more? BBC - Ukraine and Russia far apart in direct talks, but prisoner swap agreed
5. Europe Losing Its Edge for Foreign Investment
Across the 45 European countries tracked by EY’s annual barometer, foreign investment fell by 5% year-on-year, reaching its lowest level since 2015. Sectors once considered industrial pillars, such as chemicals and automotive, have been particularly hard hit, reinforcing the global perception of Europe as a vast but slow-growing and increasingly complex market.
A closer look at three of Europe’s largest economies highlights this broader investor hesitancy. Foreign investment in France dropped to its lowest level since 2017. The downturn mirrors wider trends in two other major European markets: Germany remains stuck in near-economic stagnation, while the UK continues to grapple with the effects of Brexit.
Business leaders across the continent are calling for Europe to become more dynamic and easier to navigate. Many see urgency in implementing the recommendations of former ECB President Mario Draghi’s 2024 report on European competitiveness, which advocates lower energy costs, harmonized financial markets, and simplified regulations as critical steps toward making the continent more attractive to investors.
Interested in more? Le Monde - France and Europe's economic appeal falters
That’s all for this edition. Some of these stories made it to the front pages, and others barely registered.
If something here sparked your interest, feel free to pass it along. And if you’ve come across a story, thread, or overlooked corner of the internet that you think belongs here, I’d love to hear about it.
As always, thanks for reading!
Any views expressed in this space are solely my own and do not reflect those of my current or former employers, or any institution I’ve been affiliated with.