The eurozone economic activity flatlined for a second month in June, barely expanding as the bloc’s dominant services industry showed only a minimal sign of improvement and manufacturing displayed none at all, a top survey showed on Monday.

HCOB’s preliminary composite eurozone Purchasing Managers’ Index (PMI), compiled by S&P Global and seen as a good guide to growth, held steady this month at May’s 50.2.

That was barely above the 50 mark separating growth from contraction and below expectations in a Reuters poll for 50.5.

“June’s flash PMI survey for the eurozone was consistent with the economy flat-lining,” said Jack Allen-Reynolds at Capital Economics.

“The weakness in activity was broad-based, with the services index edging up to just 50.0 while the manufacturing index edged down.”

Business activity in Germany, Europe’s largest economy, returned to growth as its recovering manufacturing sector saw its strongest increase in new orders in more than three years.

But in France, activity contracted further as weakness in both manufacturing and services hit the eurozone’s second-biggest economy, S&P Global said earlier on Monday.

In the U.K., outside the currency union, business activity expanded modestly as new orders grew for the first time this year, but employers cut jobs more quickly and worried about the conflict in the Middle East.

Overall demand in the bloc fell for a 13th month, albeit only mildly, with the new business index rising to 49.7 from 49.0.

The services PMI nudged up to sit right on the break-even mark, up from May’s final reading of 49.7, as the Reuters poll had predicted.

But optimism among services firms increased and the business expectations index bounced to a four-month high of 57.9 from 56.2.

The headline manufacturing index, which has been sub-50 since mid-2022, held steady at May’s 49.4, defying expectations for a lift to 49.8. An index measuring output that feeds into the composite PMI fell to 51.0 from 51.5.

Factories reduced their selling prices for a second month. The output prices index remained at 49.2.

Eurozone inflation fell below the European Central Bank’s (ECB) 2% target in May and the central bank signalled a pause in policy easing after cutting its deposit rate for an eighth time this month.

One of the ECB’s top policymakers, Bundesbank President Joachim Nagel, said last week that the bank will keep doing all that is necessary to complete its nearly accomplished mission on inflation.

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Treasury and Finance Minister Mehmet Şimşek said on Monday that they are analyzing the multidimensional effects of increasing geopolitical tensions on the Turkish economy and evaluating possible scenarios in detail.

“Our institutions are ready to take the necessary measures quickly and decisively, in strong coordination, to maintain stability in the markets and the healthy functioning of our economy,” Şimşek said in a social media post.

The minister asked the Turkish citizens not to believe in speculations made about the Turkish economy based on scenarios in case the Hormuz Strait is closed.

“With our program, we have significantly increased the resistance of our economy to shocks,” Şimşek noted.

“We are determined to fight inflation, and we will continue to take all necessary steps to ensure the continuation of disinflation,” he added.

The regional tensions in the Middle East escalated on June 13 when the U.S.-backed Israeli military conducted airstrikes on Iran, prompting Tehran to launch retaliatory attacks on Israel.

Israeli authorities said at least 25 people have been killed and hundreds injured since then in Iranian missile attacks.

Meanwhile, in Iran, at least 430 people have been killed and more than 3,500 wounded in the Israeli assault, according to the Iranian Health Ministry.

The conflict escalated further after the U.S. bombed Iran’s three nuclear facilities on Saturday.

The U.S. targeted the sites with six bunker-buster bombs dropped on the Fordo facility with B-2 stealth bombers, along with dozens of submarine-launched cruise missile strikes on the Natanz and Isfahan facilities.

The latest move by the U.S. sparked fears of Iran closing the Hormuz Strait, where 30% of the global crude oil and 20% of the liquefied natural gas (LNG) are transported.

Iran’s Parliament agreed to close the Strait of Hormuz on Sunday, waiting for a final decision from the Supreme National Security Council, Maj. Gen. Esmaeil Kowsari, a member of Parliament’s National Security Commission, said.

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Asia’s fourth largest economy South Korea, like many other Asian nations is facing painful tariffs by U.S. President Donald Trump, but its shipbuilding industry could prove a useful bargaining chip.

Already hit by sector levies on steel and car exports, Seoul is laser-focused on negotiations over a 25% country-specific tariff that has been suspended until July 8.

Here’s a look at what’s going on:

Why shipbuilding?

In the 1970s, South Korea’s military leader president Park Chung-hee accelerated the country’s heavy industry, designating sectors such as steel and shipbuilding “strategically important” and rolling out state subsidies.

At the same time, POSCO was founded, now one of the world’s largest steel producers and conglomerate Hyundai built its shipyard in southeastern Ulsan, which started to grow rapidly.

European rivals struggled to keep pace.

Sweden’s Kockums Shipyard filed for bankruptcy in 1987 and in a symbolic shift of global shipbuilding power, Hyundai acquired its 140-meter (460-foot) Goliath crane for $1. It now towers over southern Ulsan.

In the 1990s and 2000s, South Korean shipbuilders such as Hyundai Heavy Industries and Samsung Heavy Industries ramped up investment in research and development, backed by generous government subsidies.

The country secured a competitive edge in high-value-added vessels, including liquified natural gas (LNG) carriers, very large crude carriers, and offshore platforms.

Now, South Korea ranks as the world’s second-largest shipbuilding nation, trailing only behind China.

Is it important?

South Korea’s exports hit a record high in 2024, with analysts pointing to shipbuilding as one of the key drivers.

The sector accounted for nearly 4% of total exports and grew by almost 20% from the previous year, reaching $25.6 billion.

Shipbuilding directly employs around 120,000 workers or roughly 1% of the country’s total workforce; with indirect employment significantly higher in industrial hubs like Ulsan.

Industry data shows so far this year that new orders have exceeded 13 trillion won ($9.4 billion).

In March, Hanwha Ocean secured a landmark $1.6 billion contract to build LNG carriers for Taiwan’s Evergreen Marine, one of the largest single orders in the sector this year.

Why is it a ‘bargaining chip’?

Trump has showed “significant interest in South Korea-U.S. shipbuilding cooperation,” said South Korea’s trade, industry and energy minister Ahn Duk-geun in April.

Like the Europeans, the U.S. shipbuilding industry has lagged behind South Korea and China, and as a result, the sector is seen as a “highly important bargaining chip in trade negotiations,” he added.

At an APEC finance ministers’ meeting in South Korea in May, U.S. Trade Representative Jamieson Greer met Chung Ki-sun, vice chair of HD Hyundai, the country’s largest shipbuilder, before he met Seoul’s top officials.

“South Korea’s shipbuilding and defense industries see a window of opportunity,” said Kim Dae-jong, a professor at Sejong University.

How does it help the U.S.?

Greer also met with the CEO of Hanwha Ocean, the first non-American company authorized to carry out a dry-dock maintenance of a U.S. Navy vessel.

The move last September was seen as significant as it signalled that Washington sees South Korea, where it already has 28,000 U.S. troops stationed, as a strategic defense hub.

With worries growing about China’s expanding naval fleet and potential conflict in the Taiwan Strait, the U.S. has begun seeking reliable overseas shipyards to support its operations in the Asia-Pacific region.

The global market for ship maintenance, repair, and overhaul is projected to exceed $60 billion annually, according to industry estimates.

Any problems?

Despite multibillion-dollar contracts, data suggests South Korea’s shipbuilding industry is losing ground in the global race.

China dominates with South Korea’s market share dropping, according to industry data.

Demand for eco-friendly vessels is rising, and the government need to overhaul regulations “to support the development of next-generation eco-friendly vessels,” Rhee Shin-hyung, a professor at Seoul National University, told Agence France-Presse (AFP).

South Korea’s woeful demographics also make staffing hard. In Geoje, home to Samsung Heavy Industries, the number of residents in their 20s and 30s has nearly halved in recent years.

Orders are down in 2025 which hints that “the shipbuilding boom may end sooner than the market anticipated,” warned Rhee.

Global ship orders between January and April fell by almost half the volume recorded during the same period last year.

Shipbuilders have been enjoying a “supercycle” but unfortunately the “peak is expected to be lower and the boom shorter-lived compared to the past,” Nam Chul, vice president at HD Hyundai Heavy Industries, told AFP.

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Türkiye’s antitrust authority announced on Friday that it had launched an investigation into Google’s AI-powered ad campaign product, Performance Max (PMAX), to assess whether it breaches the country’s competition laws.

In a statement, the Competition Authority (RK) said the probe will examine whether Google has engaged in unfair practices against advertisers and if it has hindered competition through data consolidation with PMAX.

“The subject of the investigation is the claims that Google violated article 6 of the Act no 4054 by transferring its power in online search advertising services to other online advertising services via Performance Max (PMAX) campaign, which is a type of campaign in Google Ads, by engaging in exploitative practices against advertisers who use PMAX campaign and by distorting competition in the market through combining the data coming from different channels,” the authority said.

Launched in 2021, Performance Max uses AI and automatically finds the best placements for a brand’s ads across Google services, including email, search and YouTube.

“Unlike other campaigns offered by Google, PMAX identifies the ad inventory that will maximize conversions in real-time and automatically optimizes ad delivery process thanks to its AI features,” the board said.

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Türkiye recorded the fastest increase in the number of U.S. dollar millionaires last year, growing at a pace seven times higher than the global average, according to a report.

The number of dollar millionaires worldwide rose by 684,000 in 2024, a 1.2% year-over-year increase, the 2025 Global Wealth Report by UBS found.

That translates to nearly 2,000 new dollar millionaires every day across the globe.

Türkiye saw an 8.4% increase as the number of individuals with assets exceeding $1 million rose by 7,000, reaching nearly 68,000, the report among 56 countries showed.

The United Arab Emirates (UAE) ranked second with a rise of 5.8% in millionaire numbers, or 13,000 new entrants.

While nominal per capita wealth increased by over 35% in Türkiye, when adjusted for inflation, real per capita wealth declined by 14.6%, the report said.

Inflation has more than halved compared to the peak of about 75% a year ago amid aggressive monetary tightening as part of the Turkish authorities’ efforts to rein in growth in prices.

The country also saw the median wealth drop by almost 21%, highlighting a growing divide between the wealthy elite and the rest of the population.

Private individuals’ net worth rose 4.6% worldwide in 2024, the Swiss bank said. The United States accounted for almost 40% of global millionaires.

Over 379,000 people became new dollar millionaires in the U.S. last year, more than 1,000 a day, as wealth grew disproportionately quickly.

In 2023, Europe, the Middle East and Africa led a rebound in global wealth after a decline in 2022.

Greater China, which the report defined as mainland China, Hong Kong and Taiwan, led last year for individuals with a net worth of $100,000 to $1 million, accounting for 28.2%, followed by Western Europe with 25.4% and North America with 20.9%.

The majority of people worldwide were below that threshold, however, with over 80% of adults in the UBS sample having a net worth of under $100,000. Overall, about 1.6% registered a net worth of $1 million or more, the report said.

Over the next five years, the Swiss bank projects average wealth per adult to grow further, led by the U.S., and, to a lesser extent, Greater China.

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The Turkish Treasury and Finance Ministry has signed a new financing agreement worth $740 million with the Islamic Development Bank (IsDB) to support critical infrastructure investments in public health and education.

The deal will channel long-term, cost-effective funding toward the reinforcement of public hospitals in Istanbul and the development of disaster-resilient educational facilities in Türkiye’s earthquake-affected regions, Anadolu Agency (AA) reported on Friday.

The financing package includes 500 million euros (over $575 million) for the Istanbul Project Coordination Unit to support the reconstruction and strengthening of public hospitals in the city.

An additional $165 million will be allocated to the Ministry of National Education for inclusive and disaster-resilient school infrastructure in the southeastern region that was struck by a devastating earthquake more than two years ago.

“The fact that the financing provided through these agreements is long-term and more favorable compared to market conditions clearly reflects the confidence international financial institutions have in Türkiye’s economy and our program,” Treasury and Finance Minister Mehmet Şimşek said.

Şimşek stressed continued efforts to secure favorable and long-term external financing across various sectors as part of the country’s sustainable development perspective.

“The agreement signed with the Islamic Development Bank will significantly contribute to the strengthening of public hospitals in Istanbul and educational institutions in earthquake-affected regions,” the minister said.

The deal with IsDB brings the amount of public sector external financing Türkiye has secured since the beginning of this year to nearly $3 billion.

As part of earthquake-related financing, the total funding provided to the public sector by international institutions has reached approximately $6.5 billion, according to official data.

Moreover, the IsDB is expected to soon provide an additional 200 million euros in financing to Iller Bank (ILBANK), with 150 million euros designated for post-earthquake urban reconstruction and 50 million euros for urban transport projects, the AA said.

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