Headlines

China’s credit growth hit a fresh record low in June, highlighting subdued borrowing demand and prompting a central bank-backed publication to downplay concerns about weakness in the economy, Bloomberg News reported. The stock of aggregate financing — a broad measure of credit — expanded 8.1% from a year ago, the slowest on record in data going back to 2017, official figures released on Friday show. The net increase in aggregate financing was 3.3 trillion yuan ($455 billion), according to Bloomberg calculations based on the data, below the 3.4 trillion yuan forecast in a Bloomberg survey.

China's exports grew at their fastest in fifteen months in June, suggesting manufacturers are front-loading orders ahead of tariffs expected from a growing number of trade partners, while imports unexpectedly shrank amid weak domestic demand, Reuters reported. The mixed trade data keeps alive calls for further government stimulus as the $18.6 trillion economy struggles to get back on its feet. Analysts warn that the jury is still out on whether strong export sales in recent months can be sustained given major trade partners are becoming more protective.

Nearly 90% of Japanese households expect prices to rise a year from now, a quarterly central bank survey showed on Friday, a sign of heightening inflation expectations that could help make the case for a near-term interest rate hike, Reuters reported. A separate survey showed momentum for wage hikes was broadening among small- and medium-sized firms in regional areas, signalling that Japan was making progress toward durably achieving its 2% inflation target - a prerequisite for raising interest rates.

Turkey’s central bank governor delivered his most emphatic message yet to foreign investors worried about premature easing, saying he wants to ensure he can meet inflation goals beyond this year before discussing interest-rate cuts, Bloomberg News reported. “Any actions we take on policy rates should be calibrated so as to hit the inflation target in 2025 and beyond,” Fatih Karahan told Bloomberg in the first sitdown interview he’s given since being appointed more than five months ago.

Zimbabwe’s banks support adopting the ZiG as the nation’s sole currency before the current target date of 2030, provided the economic stability which the bullion-backed unit has delivered is maintained, Bloomberg News reported. Bankers Association of Zimbabwe President Lawrence Nyazema said the availability of the ZiG — which stands for Zimbabwe Gold — will improve as the nation boosts its foreign currency and bullion holdings. “We committed to coming up with a roadmap which would lead us to having a mono-currency by 2030,” Nyazema said in an interview.

Argentines say they are yet to feel the benefits of cooling inflation and analysts predict the five-month streak could end when official figures for June were released on Friday, Reuters reported. Since President Javier Milei took power late last year, inflation has slowed dramatically in Argentina, decelerating from 25.5% in December to 4.2% in May. The sharp fall has been attributed to a suite of cost-cutting and austerity measures that have put a lid on consumer demand, as well as measures to reduce money printing.

Russian President Vladimir Putin on Friday endorsed a bill that raises income taxes for the rich, part of efforts to help fill government coffers during the fighting in Ukraine, the Associated Press reported. Putin signed the bill into law two days after it was approved by both houses of parliament. The legislation, which envisages a progressive tax on personal income, is a major change from the flat-rate tax that was widely credited with improving revenue collections after it was introduced in 2001. The new law imposes a 13% tax for incomes of up to 2.4 million rubles ($27,500) a year.

UK energy services company Petrofac Ltd is running out of time to agree a debt deal with creditors, after months of talks have failed to produce a definitive agreement, Bloomberg News reported. The London-based firm missed a bond payment in May and has until July 25 to find a solution with creditors. Failure to do so could lead to an extension of the deadline, or force the company to immediately repay debt.

The UK’s biggest water and sewage company could be broken up, listed on the stock exchange, or forced to cap its debt under special measures set out by the regulator on Thursday, Bloomberg News reported. Heavily-indebted Thames Water will be put into a Turnaround Oversight Regime to ensure it can fix chronic leaks and sewage spills, according to the draft ruling. Ofwat also limited the amount Thames can hike annual customer bills to £535 ($688) per household, in line with the average increase for the industry. But it’s well below the £627 proposed by Thames.

Swedish debt collector Intrum AB has reached an agreement with a majority of its bondholders to address its €5.4 billion ($5.8 billion) debt pile, including a forced loss on credit investors and pushing out the notes’ maturities, Bloomberg News reported. As part of the deal, the company’s existing unsecured notes will be exchanged into four series of new bonds with maturities between 2027 and 2030, but only at 90% of their original value, according to a statement on Thursday. In exchange for the haircut, bondholders will get 10% of Intrum’s equity.