US Trade Imbalance: The U.S. trade deficit widened to $77.6B in May as imports of semiconductors, computer accessories and other AI-linked inputs rose, while exports fell—highlighting a shift in sourcing toward Taiwan. AI & Monetary Policy: The Fed unveiled external task forces, including one to assess AI’s impact on the economy and future policy decisions, as policymakers weigh productivity gains against uncertainty. India-US Negotiations: An SBI report urges India not to make early concessions in U.S. trade talks, arguing Washington is using strategic uncertainty and issue-linking to maximize leverage. India Growth & Risks: HSBC expects Bangladesh growth of 4.4% in FY27, while S&P warns a weak monsoon could hit India’s rural incomes, lift food inflation and pressure demand. Digital Infrastructure Push: Gujarat launched a Data Centre Policy 2026-29 targeting about ₹6 lakh crore investment and 7.5 GW capacity, aiming to build an AI and cloud hub. Cross-Border Trade & Logistics: Malaysia and Thailand opened a new road link between ICQS and CIQ complexes to speed movement of people and goods, with talks also underway on sea bass and prawn trade requirements. Energy Geopolitics: The EU and South Africa began talks under the Clean Trade and Investment Partnership to boost green hydrogen and critical raw materials supply chains. Middle East Tensions: U.S.-Iran strikes continued for a second night, raising fears of a return to wider conflict and renewed pressure on energy markets.