Welcome to this week’s The Global Pulse, where we unpack the stories driving our world forward. This week, escalating tensions in the Middle East, a pivotal moment for Ukraine’s ceasefire, North Korean Crypto, and shifting societal dynamics dominate the headlines. We also revisit Tesla’s ongoing turmoil, offering a fresh perspective on its deepening crisis.

Markets

Israel’s Offensive Shatters Gaza Ceasefire with Heavy Casualties

On March 18, the Israeli Defense Forces (IDF) launched a sweeping offensive on Gaza, abruptly ending a tenuous ceasefire with Hamas. The assault began with surprise airstrikes, followed by a ground offensive involving troops and tanks penetrating multiple areas of the Gaza Strip.

The operation came after Israel intensified its blockade on humanitarian aid and demanded further hostage releases. The Gaza Ministry of Health reports that since the offensive began, over 710 Palestinians have been killed, with strikes on March 18 alone claiming more than 400 lives, including 183 children, 94 women, and 34 elderly, alongside 524 wounded.

Amnesty International and Human Rights Watch have condemned the offensive, accusing Israel of genocide and pointing to unlawfully indiscriminate attacks that have wiped out entire families. A senior UN official has called for an immediate restoration of the ceasefire and the release of remaining hostages, as Gaza’s deepening crisis—exacerbated by a ground push targeting Hamas infrastructure—fuels a catastrophic humanitarian emergency.

Ukraine War

On March 18, 2025, U.S. President Donald Trump and Russian President Vladimir Putin engaged in a phone call addressing the ongoing conflict in Ukraine. During this conversation, Putin agreed to a 30-day cessation of attacks specifically targeting Ukraine's energy infrastructure but did not consent to a comprehensive ceasefire.

Despite this agreement, Russian forces continued drone strikes on Ukrainian cities, including Odesa, undermining the limited truce. In response, Ukrainian President Volodymyr Zelenskyy intensified diplomatic efforts to secure global support. On March 20, 2025, he addressed European Union leaders in Brussels, emphasising the necessity of maintaining pressure on Russia through sustained sanctions and defence support for Ukraine.

European leaders have demonstrated a unified stance in supporting Ukraine. For instance, French President Emmanuel Macron has invited a "coalition of the willing" to a summit aimed at coordinating support for Ukraine, reflecting Europe's proactive role in addressing the conflict.

Despite these diplomatic efforts, the situation remains volatile, with continued hostilities, such as Russian drone attacks causing significant damage in Ukrainian cities like Odesa, highlighting the fragility of the limited ceasefire.

Additionally, military leaders from over 30 countries convened in England to discuss forming an international peacekeeping force for Ukraine, preparing for potential future ceasefire agreements.

The international community continues to seek a durable resolution to the conflict, with ongoing negotiations and strategic planning aimed at achieving lasting peace in the region.

North Korea's Cyber Heists: Amassing Billions in Cryptocurrency

North Korea has significantly increased its cryptocurrency holdings through a series of sophisticated cyberattacks. The Lazarus Group, a state-sponsored hacking organisation, has been implicated in numerous high-profile thefts. Notably, in February 2025, they executed the largest crypto heist to date, stealing $1.5 billion in Ethereum from the Bybit exchange.

This attack alone positioned North Korea as the third-largest holder of Bitcoin globally, following the United States and the United Kingdom. In 2024, North Korean hackers were responsible for approximately 35% of the $1.7 billion stolen in cryptocurrency worldwide, underscoring their pivotal role in global crypto crime.

These illicit gains are believed to fund the nation's nuclear and ballistic missile programs, circumventing international sanctions.

Tesla Faces Cybertruck Recall and Investor Dissent Amid Leadership Concerns

Tesla is confronting significant challenges as it recalls 46,096 Cybertrucks—nearly all units produced since November 2023—due to a defect in the stainless steel exterior trim panel that can detach while driving, posing potential hazards.

This marks the eighth recall for the Cybertruck series, raising safety concerns among consumers. Concurrently, investor confidence is waning, with Tesla's stock experiencing a substantial decline. The stock has fallen by over 40% in 2025, reflecting broader economic concerns, increased competition, and dissatisfaction with CEO Elon Musk's involvement in the Trump administration.

Notably, Ross Gerber, a longtime Tesla investor, has publicly called for Musk to step down as CEO, arguing that Musk's divided attention—particularly his role in the Department of Government Efficiency (DOGE)—is driving the company into crisis.

These developments underscore the critical challenges Tesla faces in addressing product reliability issues and restoring investor confidence amidst concerns about its leadership and strategic direction.

Federal Reserve Maintains Interest Rates Amid Economic Uncertainty

On March 19, 2025, the Federal Reserve announced it would keep the federal funds rate steady at 4.25% to 4.5%, citing increased economic uncertainty and a downgraded growth forecast. Fed Chair Jerome Powell highlighted that recent indicators suggest solid economic activity, with a stable unemployment rate and somewhat elevated inflation.

However, the outlook has become more uncertain, partly due to President Donald Trump's tariff policies, which are expected to raise inflation to 2.7% by year's end, up from the previous 2.5% forecast.

The Fed also plans to slow the reduction of its securities holdings starting in April, reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion while maintaining the cap on agency debt and mortgage-backed securities at $35 billion.

Despite these challenges, the Fed remains committed to supporting maximum employment and returning inflation to its 2% objective.

Global AI Regulation Tightens Amid Industry Pushback and Ethical Concerns

As artificial intelligence (AI) technology rapidly advances, governments worldwide are implementing stricter regulations to address ethical and security challenges. In the United States, leading AI companies such as OpenAI and Google are actively lobbying the government to classify AI training on publicly available data, including copyrighted material, as fair use.

They argue that this is essential to maintain competitiveness against nations like China, where AI developers have broader data access. However, this stance has met resistance from various sectors, including Hollywood actors and news organisations, who contend that it threatens creative industries and undermines copyright protections.

In Europe, the European Union's AI Act is nearing completion, aiming to enforce ethical standards and categorise AI systems based on their risk levels, with corresponding obligations for each category.

Simultaneously, China has introduced regulations requiring clear labelling of AI-generated content to enhance transparency and trust.

These developments underscore the global effort to balance technological innovation with ethical considerations and security risks.

Climate Migration Escalates Amid Environmental and Social Strains

Climate-induced displacement is intensifying globally, with recent environmental crises in Southern Europe and California displacing thousands. Attention is now turning to India, which ranked as the fifth most polluted country in 2024, according to IQAir's March 11 report.

The report highlights that six of the world's ten most polluted cities are in India, with New Delhi maintaining consistently high pollution levels. In West Bengal, severe air pollution has led to respiratory diseases in about 70% of the population in Kolkata, as reported by the Chittaranjan National Cancer Institute.

The United Nations notes that climate-driven migration is fueling economic debates, with insurance claims soaring and governments racing to adapt infrastructure. At the upcoming COP30 in Brazil, scheduled for February's end, nations are set to finalise climate action plans amid concerns over potential shifts in U.S. climate policy under President Trump.

Join me next Sunday as I continue to explore these unfolding narratives and their implications for our shared future.

Warm regards,
Werner Mouton, CGMA

Global Pulse #4: Week Of march 23, 2025