China’s Trade Surplus with US Hits Record High. China’s monthly trade surplus with the US hit a record high of nearly $29bn in June as exports to America remained strong. The figures came a week after the trade war between the two began. Experts believe Beijing has the option to reduce the impact of US tariffs on exporters by devaluing the yuan to make its goods cheaper for American consumers.
China’s Second Quarter Growth Meets Expectations at 6.7%. China’s economy grew at an annual pace of 6.7% in the three months to June, as per official data. This marks a slight slowdown in growth from 6.8% in the previous quarter. The data comes as the government attempts to curb growing debt and as trade tensions with the US escalate.
China Moves to Support Economy Amidst Trade Tensions. The Chinese government plans to introduce deeper tax cuts and to issue special bonds to spur infrastructure plans to boost growth. Analysts said that while the policies were largely incremental, they signaled a shift towards a looser fiscal policy.
India’s Parliament Rejects No Confidence Motion. A motion of no-confidence against the ruling BJP party was defeated by a strong majority of votes by lawmakers. The Opposition accused the government of slowing job creation, crony capitalism and corruption.
India Cuts Oil Imports from Iran. India’s state-run refineries bought 9.8 million tons of Iranian oil, a 25% decline over the previous financial year. An article from the Associated Press linked this decline to the threat of US oil sanctions against Iran.
IHH wins bid for India’s Fortis Chain of Hospitals. Malaysian group IHH Healthcare Berhad acquired India’s Fortis Healthcare for c.US$580m. Fortis has been under the regulatory scanner on charges of fund diversion and has seen its losses widen over recent quarters. IHH said there was a potential for Fortis to expand in international markets such as South and Central Asia and parts of Southeast Asia.