Japan and the Philippines signed an important defense agreement, and the two sides became "quasi-allies". On July 8, local time, Japan and the Philippines signed the "Reciprocal Access Agreement" in Manila. The agreement will relax restrictions on the movement of personnel between the Japanese Self-Defense Forces and the Philippine military during joint exercises, mutual visits and other operations in each other's countries. In response, Chinese Foreign Ministry spokesman Lin Jian responded at a regular press conference on the 8th that exchanges and cooperation between countries should not undermine mutual understanding and trust between regional countries, should not undermine regional peace and stability, and should not target third parties or undermine the interests of third parties. The Asia-Pacific region does not need military groups, let alone "small circles" that provoke camp confrontation and instigate a "new Cold War". Any actions that undermine peace and stability in the region and undermine unity and cooperation in the region will arouse the vigilance and common opposition of the people in the region. Japan and the Philippines upgraded to a "quasi-alliance" relationship On the same day, a "2+2" meeting attended by the foreign ministers and defense ministers of Japan and the Philippines was held in Manila. Japanese Defense Minister Minoru Kihara and Foreign Minister Yoko Kamikawa attended the talks with Philippine Defense Minister Gilbert Teodoro and Foreign Minister Enrique Manalo. This is the second Japan-Philippines "2+2" meeting. The last one was held in Tokyo in April 2022. Witnessed by Philippine President Marcos, the two sides signed the "Reciprocal Access Agreement". Marcos expressed the hope that the bilateral relations between the Philippines and Japan and the trilateral cooperation between the Philippines, Japan and the United States will be further deepened. The "Reciprocal Access Agreement" is also known as the "Military Visits Agreement". Military and defense cooperation between sovereign states, especially sending troops into each other's territory, usually faces complicated procedures and other problems. In order to simplify the procedures, the two countries will reach relevant agreements to simplify the approval procedures for the entry of troops from both sides into each other's countries, and facilitate mutual visits and joint military activities between the two countries' troops. The "Reciprocal Access Agreement" was born. Take the "Reciprocal Access Agreement" signed by Japan and Australia (full name "Agreement between Japan and Australia on Promoting Mutual Access and Cooperation Facilitation between the Japanese Self-Defense Forces and the Australian Defense Force") as an example. The agreement has 29 articles, covering many areas such as entry and exit procedures for troops, jurisdiction, taxation, cost burden and compensation. The key is to simplify the entry and exit procedures for visiting troops and their members, ships, aircraft, etc., relax restrictions on the transportation of weapons, ammunition and materials carried by visiting troops, and provide a legal basis for the two countries' troops and weapons and equipment to enter each other's territory. Japan and the Philippines signed the "Reciprocal Access Agreement", making the Philippines the third country to conclude this agreement with Japan after Australia and the United Kingdom. Cai Liang, Secretary-General and Researcher of the China-Japan Relations Research Center of the Shanghai Institute for International Studies, analyzed to The Paper (www.thepaper.cn) that Japan and the Philippines have their own strategic considerations for signing the "Reciprocal Access Agreement". As for the Philippines, due to its limited strength, it does not exclude any foreign power willing to strengthen military cooperation with the Philippines from intervening in the South China Sea situation. Therefore, it can be seen that in the past two years, the Philippines has actively promoted Australia, France, India and other countries to intervene in the South China Sea and strengthen military cooperation with them, involving intelligence, weapons and equipment, and training and exercises. "Japan's purpose is very simple. Strengthening military cooperation with the Philippines is to strategically balance China. The United States and the Philippines are allies, and the US-Japan alliance has been upgraded to a 'quasi-alliance'. The military cooperation between the United States, Japan and the Philippines has been upgraded to a new level." Cai Liang said, "The signing of an important defense agreement between Japan and the Philippines will make it easier for Japan to intervene in the South China Sea situation and seek the 'three seas linkage' of the East China Sea, the South China Sea, and the Taiwan Strait, in order to better respond to China's strategy and enhance its international influence." As for whether the signing of the "Reciprocal Access Agreement" means that Japan will deploy the Self-Defense Forces in the Philippines, Cai Liang pointed out that this agreement only simplifies the procedures for the troops of both sides to enter each other's territory, and is more suitable for short-term training, military exercises, etc., and is not a long-term deployment of the Self-Defense Forces in the Philippines. The two countries deepen military cooperation The Philippine presidential office also said in a statement that Japan is one of the four major strategic partners of the Philippines, and the two countries have established a strategic partnership for more than ten years. It seems no coincidence that Japan and the Philippines signed the "Reciprocal Access Agreement" at this time. Recently, China-Philippines relations have become tense around the situation in the South China Sea. The Global Times quoted Japan's Kyodo News Agency as saying that the two sides are seeking to strengthen cooperation against China. Minoru Kihara said last week: "The Philippines is located in a strategically important region, occupies a key position on Japan's sea lanes, and is also an ally of the United States. Joint training and strengthening cooperation with the Philippines are of great significance to the realization of a 'free and open Indo-Pacific region'." Cai Liang said that Japan's intervention in the South China Sea situation is mainly to reduce strategic pressure in the East China Sea and southwest of Japan, but it is not conducive to peace and stability in the South China Sea. It is reported that Japan and the Philippines began negotiations on the agreement in November last year. The signing of the "Reciprocal Access Agreement" by the two sides lays the foundation for the two countries to strengthen bilateral and even multilateral military cooperation in the future. The Japanese government intends to allow the Self-Defense Forces to formally participate in the annual US-Philippines "Shoulder to Shoulder" joint exercises around the Philippines after the agreement comes into effect. The Self-Defense Forces previously participated in the "Shoulder to Shoulder" exercises as observers, and will be able to formally participate after signing the agreement. In April this year, the United States and the Philippines held the largest "Shoulder to Shoulder" exercise to date, involving 5,000 Philippine personnel and 11,000 US personnel. The military exercise also included about 150 Australian military personnel and 100 French naval personnel. According to the plan, 14 countries including Japan and India sent personnel as observers. The "Typhon" medium-range missile launch system deployed by the US military on Luzon Island in the Philippines for the first time participated in the exercise, which aroused great attention from all walks of life. In terms of weapons and equipment exports, Japan and the Philippines have gradually strengthened military cooperation in recent years. The Philippines recently agreed to purchase five Coast Guard patrol ships from Japan to enhance its patrol capabilities in the South China Sea. Defense News reported in November last year that the Philippines had received an early warning radar system from Japan in 2023, the first major equipment transfer since the Japanese government lifted the postwar defense export ban in 2014. The Japanese Ministry of Foreign Affairs stated that Kamikawa mentioned topics such as defense equipment transfer, "government security capability enhancement support" (OSA), and economic and trade cooperation. The OSA project was created by the Kishida government and plans to allocate billions of yen in budget to assist the military construction of the Philippines and other countries, including providing the Philippines with 5 sets of coastal surveillance radars. Regarding Japan's relaxation of restrictions on defense equipment exports, the Chinese Ministry of Defense previously responded that Japan has continuously broken through the constraints of the "peace constitution" and the principle of "exclusive defense", and has been making small moves in the field of military security, which has aroused high vigilance and strong concern from the international community. China requires Japan to deeply reflect on its history of aggression, attach importance to the security concerns of its Asian neighbors, adhere to the path of peaceful development, and win the trust of its Asian neighbors and the international community with practical actions.

July 9 (Reuters) - German sportscar maker Porsche (P911_p.DE), opens new tab said on Tuesday that global vehicle deliveries were down 7% in the first half of the year compared to the same period in 2023, primarily driven by a 33% year-on-year drop in China. Porsche, majority-owned by Volkswagen (VOWG_p.DE), opens new tab, is highly exposed to the EU-China tariff tensions, with deliveries to China accounting for nearly 20% of global deliveries. An HSBC analyst pointed to weakness in the European car market, saying that "the market is, understandably, worried about China pricing weakness and the prospect of needing to pay dealer compensation." Overall, Porsche delivered 155,945 cars worldwide during the first six months of the year. In North America, deliveries were down 6% year-on-year. Meanwhile, in Porsche’s home market of Germany, deliveries increased by 22% to 20,811 vehicles.

On the evening of July 8, local time, the Israel Defense Forces issued a statement saying that Major General Avi Bluth replaced Yehuda Fox as the commander of the Israeli Central Command. Earlier that day, the Israeli army held a handover ceremony, which was presided over by the Israeli Chief of Staff Halevy. Avi Bluth joined the Israel Defense Forces in 1993 and commanded the Israeli military operations in the West Bank. In May this year, Bruce was promoted to major general and served as a military commander in the Israeli Central Command. CCTV reporters learned that in late April this year, Yehuda Fox, then commander of the Israeli Central Command, requested to resign and retire from the army in August this year. Fox had previously stated that he should bear part of the responsibility for the military intelligence failure on October 7 last year, and "must end his term like everyone else." According to the official website of the Israeli Defense Forces, the Central Command is one of the four major commands of the Israeli army, headquartered in Jerusalem, and its responsibility covers nearly one-third of Israel's territory.

Apple could be on track to reach a $4 trillion market capitalization with the artificial intelligence (AI) iPhone 16 upgrade cycle coming, Wedbush analysts said. The analysts said the iPhone 16 supercharged with AI could bring a "golden upgrade cycle" for Apple. Apple's recently announced iOS 18 with Apple Intelligence and OpenAI partnership are also expected to create monetization opportunities and increase share value. Apple (AAPL) could be on the path to a $4 trillion market capitalization as an iPhone upgrade cycle approaches, driven by the iPhone 16 supercharged with artificial intelligence (AI) capabilities, according to Wedbush analysts. 1 Apple's recently announced iOS 18 with Apple Intelligence and OpenAI partnership are also expected to create monetization opportunities and increase share value. AI iPhone 16 Upgrade Cycle Coming Soon Wedbush analyst said that an AI iPhone 16 could bring "a golden upgrade cycle for Cupertino looking ahead with pent-up demand building globally." "The Street is now starting to slowly recognize that with Apple Intelligence on the doorstep in essence Cupertino will be the gatekeepers of the consumer AI Revolution," they said, with 2.2 billion iOS devices globally and 1.5 billion iPhones. Wedbush suggested a "consumer AI tidal wave" could start with the iPhone 16 in mid-September, adding that estimates indicate 270 million iPhones users have not upgraded in over four years. Recovery in China To Support Upgrade Cycle The analysts indicated that iPhone supply stabilization in Asia is also "a very good sign heading into a monumental iPhone 16 upgrade cycle." Wedbush's projections come amid ongoing concerns for the iPhone maker in the China region amid increased competition, though there have been recent signs of improving shipments. They projected that June "will be the last negative growth quarter for China with a growth turnaround beginning in the September quarter," when the iPhone 16 is expected to be released. AI and iOS 18 Could Also Boost Share Value Apple unveiled iOS 18 supercharged by Apple Intelligence and an AI partnership with OpenAI at its developers' conference in June. Wedbush analysts said the partnership with the Chat-GPT maker "creates the highway for developers around the globe to focus on iOS 18 and this in turn will create a myriad of monetization opportunities for Cook & Co. over the coming years." The analysts estimated that "this could result in incremental Services high margin growth annually of $10 billion for Apple" driven by hardware and software. They added they believe "AI technology being introduced into the Apple ecosystem will bring monetization opportunities on both the services as well as iPhone/hardware front and adds $30 to $40 per share." Apple shares were little changed in early trading Monday, though they have gained more than 17% since the start of the year. Do you have a news tip for Investopedia reporters? Please email us at tips@investopedia.com SPONSORED Trade on the Go. Anywhere, Anytime One of the world's largest crypto-asset exchanges is ready for you. Enjoy competitive fees and dedicated customer support while trading securely. You'll also have access to Binance tools that make it easier than ever to view your trade history, manage auto-investments, view price charts, and make conversions with zero fees. Make an account for free and join millions of traders and investors on the global crypto market.

Apple is planning to revamp its smartwatch as its 10th birthday nears. The improvements include larger displays and thinner builds, Bloomberg reported. The revamped watches may also get a new chip, which could enable some AI enhancements. The Apple Watch is about to turn 10, so Apple is planning a birthday revamp, including larger displays and thinner builds, Bloomberg reported. Both versions of the new Series 10 watches will have screens similar to the large displays found on the Apple Watch Ultra, the report said. The revamped watches are also expected to contain a new chip that may permit some AI enhancements later on. Last month, Apple pulled back the curtain on its generative-AI plans with Apple Intelligence. Advertisement It hopes the artificial-intelligence features will prove alluring enough to persuade consumers to buy new Apple products. The announcement has been generally well received by Wall Street. Dan Ives of Wedbush Securities wrote in a Monday note that the "iPhone 16 AI-driven upgrade could represent a golden upgrade cycle for Cupertino." "We believe AI technology being introduced into the Apple ecosystem will bring monetization opportunities on both the services as well as iPhone/hardware front and adds $30 to $40 per share," he added. Apple's stock closed on Friday at just over $226 a share, up 22% this year and valuing the company at $3.47 trillion. That puts it just behind Microsoft, which was worth $3.48 trillion at Friday's close. The tech giants have been vying for the title of the world's most valuable company in recent months — with the chipmaker Nvidia briefing claiming the crown last month. Apple also announced some software updates for the watch at its Worldwide Developers Conference last month. The latest version of the device's software, watchOS 11, emphasizes fitness and health, introducing tools that allow users to rate workouts and adjust effort ratings. WatchOS 11 will also use machine learning to curate the best photos for users' displays. Apple has previously used product birthdays to release new versions of devices. The iPhone X's release marked the 10th anniversary of the smartphone. However, it's not clear exactly when Apple plans to release the revamped watches, Bloomberg said. The company announced the Apple Watch in September 2014, with CEO Tim Cook calling it "the most personal product we've ever made." Apple did not immediately respond to a request for comment made outside normal working hours.