Daily News Summary – 2026-05-15 – en

In a historic milestone, NATO reported that all European Allies and Canada met or exceeded the 2% GDP defense spending target for the first time, with a 20% increase over 2024. This marks a structural shift in European defense posture and deterrence capabilities.

The global order is being redrawn by strategic control of lithium, cobalt, and rare earths. With the US, EU, and China racing to secure supplies through friend-shoring, stockpiles, and bilateral deals, a new multipolar economic order emerges.

Nearly half of planned US AI data centers for 2026 are delayed due to transformer and switchgear shortages, creating a 7 GW gap. Lead times of 36-48 months mean that control over power assets is now a decisive strategic advantage.

Despite $650 billion in hyperscaler capex, only one-third of planned data center capacity is under construction. Physical electrical infrastructure, not capital or chips, is the binding constraint on AI growth.

The US-led FORGE alliance of 54 countries creates a preferential trade-and-investment zone for critical minerals with price floors and a $10 billion strategic reserve, directly challenging China's near-total refining dominance.

The US dollar's reserve share fell below 57% for the first time since 1995, while BRICS+ nations now conduct 67% of intra-bloc trade in local currencies. Central bank gold purchases reach record levels.

IMF data shows the dollar's share at 56.3%, driven by sanctions weaponization, BRICS local-currency trade, and record gold buying. A multipolar financial architecture is slowly replacing dollar hegemony.

BRICS is maturing two parallel financial infrastructures: BRICS Pay for cross-border payments and the 'Unit,' a gold-backed digital settlement token. These could meaningfully erode dollar dominance in trade settlement.

The fastest sustained rearmament since the Cold War sees military spending reach $2.6 trillion, driven by NATO expansion, Asia-Pacific modernization, and Middle East conflicts. The IMF warns of trade-offs between guns and butter.

76% of trade professionals believe US tariffs will persist for at least four years. Companies are responding with sourcing changes, nearshoring to Mexico, and AI adoption for trade compliance.

The BRICS bloc is launching a blockchain-based payment system and a gold-backed digital asset, aiming to reduce reliance on the US dollar for cross-border settlements. Internal divisions and shallow capital markets pose challenges.

Resource-rich nations like Indonesia, Chile, and the DRC are imposing export controls and nationalizing assets, while China tightens its rare earth stranglehold. The West responds with FORGE, Project Vault, and the EU Critical Raw Materials Act.