China's economy shows a divergence, with AI-driven chip demand boosting exports and some inflation, while a deepening real estate slump and sluggish consumer spending persist. Investors await May figures, with economists predicting broad stagnation and potential GDP downgrades.
Italy expects over 27.2 million domestic tourist arrivals in June, a 0.9% increase from last year, according to Assoturismo Confesercenti. International arrivals are also projected to rise slightly. The domestic demand is driving the summer holiday season.
Hero MotoCorp reports no domestic demand slump despite global challenges, with CEO Harshavardhan Chitale expressing confidence in India's economic resilience. The company is aggressively expanding operations, focusing on growing segments like scooters, premium motorcycles, and EVs, with significant capital expenditure planned.
German mechanical and plant engineering saw stable orders in April. While foreign orders rose 4%, domestic demand fell sharply by 7%. The VDMA cited location problems in Germany as a concern.
China's manufacturing PMI fell to 50 in May, signaling a halt in expansion. While high-tech sectors show strength, domestic demand is weak due to a property slump, impacting retail sales. The nation remains relatively shielded from the global energy crisis due to strategic reserves and diversified energy sources.
Japan's GDP grew 0.5% in Q1 2026, marking two consecutive quarters of growth. Exports, particularly automobiles, and domestic demand were strong, but inbound tourism declined. The outlook for Q2 is cautious due to Middle East tensions.
Top Indian automakers like Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, and Hero MotoCorp plan to collectively invest ~Rs 40,000 crore ($4 billion) in FY27, driven by sustained domestic demand despite global geopolitical concerns.
Facing a widening trade deficit, India's Prime Minister urges reduced gold purchases. Industry bodies propose tapping into the nation's vast household gold reserves. Their plan involves using refined household gold for domestic demand and channeling imported gold into jewellery exports via gold metal loans, aiming to boost working capital and cut imports.
Despite global economic headwinds from Middle East turmoil, India's economy is projected for stable growth through FY26 and FY27, with SBI forecasting around 7.5% for FY26. Resilient domestic demand, strong credit expansion, and broad-based improvements in high-frequency indicators support this optimistic outlook, though external vulnerabilities like oil prices and currency movements remain key concerns.
Brent crude falls 1.2% after rising to $126.41 a barrel, highest since March 2022 on report US is considering military options against IranThe eurozone grew by 0.1% in the first quarter, while inflation jumped to 3% in April driven by a near-11% surge in energy prices.The EU also expanded by 0.1% between January and March, according to a flash estimate published by Eurostat, the statistical office of the European Union. In the fourth quarter of 2025, GDP increased by 0.2% in both areas.It will be interesting to see if the official trade data confirm the resilience of exporters in coming months.The outlook for the export sector is very important for China’s economy, as domestic demand has been weak. Continue reading...
The eurozone economy grew by 0.1% in the first quarter, while inflation accelerated to 3% in April, driven by an 11% spike in energy costs. Regional markets face mounting pressure from the ongoing conflict in the Middle East and rising geopolitical instability.
Moore Threads Technology, a Chinese GPU challenger to Nvidia, reported a Q1 2026 net profit of 29.4 million yuan, reversing a year-earlier loss of 112.5 million yuan. Quarterly revenue surged 155% to 737.6 million yuan, driven by domestic computing demand amid Beijing's chip self-sufficiency push. The company disclosed a 660 million yuan order for its KUAE computing cluster at end-March.
Chinese vehicle exports are surging, with new energy vehicle shipments more than doubling to 954,000 units. This international growth is offsetting weak domestic demand and improving profit margins for manufacturers.
