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🇨🇳 China’s Economy Beats Expectations

China's economy grew 5.2% in the second quarter, beating forecasts as strong factory output and exports to non-US markets offset weak domestic consumption. Industrial production surged 6.8% in June while retail sales disappointed at 4.8%, highlighting the persistent imbalance between strong supply and weak domestic demand. Despite a 24% slump in US shipments, overall exports rose as government subsidies and fiscal stimulus supported growth, providing Beijing breathing room ahead of potential tariff escalation when the current US trade truce ends in mid-August. More - Bloomberg

🇷🇺 Trump Threatens Russia Tariffs

President Trump threatened Russia with tariffs while unveiling a new Ukraine weapons plan where the US will sell arms to NATO countries who will forward them to Ukraine, funded by European allies. Trump expressed frustration with Putin, saying "very nice phone calls" are followed by devastating air strikes on Ukraine, adding "at a certain point talk doesn't talk, it's got to be action." The announcement drew praise from Democrats and Ukrainian officials, while pro-Kremlin commentators dismissed the tariff threat as a "bluff" indicating Trump had "given up on trying to achieve peace." More - BBC

🇸🇾 Druze-Bedouin Clashes Kill 99 in Syria

Fighting between Bedouin tribes and Druze fighters in southern Syria's Suwayda city has killed 99 people and injured 100 others, according to the Syrian Observatory for Human Rights, prompting Syrian forces to intervene. The violence erupted Sunday after a wave of kidnappings including the abduction of a Druze merchant on the Damascus-Suwayda highway, marking the first deadly outbreak since April-May clashes killed dozens. Israel struck Syrian tanks heading toward Suwayda, warning it won't allow harm to the Druze, as the new Syrian government struggles to maintain security following Assad's December overthrow. More - Al Jazeera

Americas Stability Ratings and News Summary

More Unstable

🇦🇬 Antigua and Barbuda, 🇦🇷 Argentina, 🇧🇿 Belize, 🇧🇴 Bolivia, 🇧🇷 Brazil, 🇨🇦 Canada, 🇨🇴 Colombia, 🇨🇷 Costa Rica, 🇨🇺 Cuba, 🇩🇴 Dominican Republic, 🇪🇨 Ecuador, 🇸🇻 El Salvador, 🇬🇹 Guatemala, 🇬🇾 Guyana, 🇭🇹 Haiti, 🇭🇳 Honduras, 🇯🇲 Jamaica, 🇲🇽 Mexico, 🇳🇮 Nicaragua, 🇵🇦 Panama, 🇵🇪 Peru, 🇱🇨 Saint Lucia, 🇸🇷 Suriname, 🇹🇹 Trinidad and Tobago, 🇺🇸 United States Of America, 🇻🇪 Venezuela

More Stable

No countries were more stable over this period

Unchanged

🇧🇧 Barbados, 🇨🇱 Chile, 🇩🇲 Dominica, 🇬🇩 Grenada, 🇵🇾 Paraguay, 🇰🇳 Saint Kitts and Nevis, 🇻🇨 Saint Vincent and the Grenadines, 🇧🇸 The Bahamas, 🇺🇾 Uruguay

Regional News Summary

Brazil has been at the forefront of international diplomacy, with Malaysian Prime Minister Anwar praising the success of his recent visit aimed at enhancing bilateral ties. Concurrently, Indian Prime Minister Modi has set an ambitious $20 billion trade target with Brazil and expressed interest in a broader Free Trade Agreement. The two nations have signed six pacts to bolster defense and anti-terror cooperation, with Modi emphasizing a "zero tolerance" approach to terrorism and a desire for vibrant India-Brazil relations, likening them to the exuberance of Carnival and the passion of football [SOURCE - NDTV].

However, Brazil's economic landscape is less rosy, as income growth has stalled amidst global trade tensions. The country is grappling with a sluggish economy, while Aura Minerals, a Brazilian mining company, is preparing for a significant $210 million US listing, indicating some activity in the mining sector [SOURCE - Rio Times].

The trade relationship between the US and Brazil has soured, with President Trump imposing a 50% tariff on Brazilian products, citing concerns over Brazil's handling of the Bolsonaro trial. Brazil has vowed to retaliate with its own tariffs and is exploring alternative trade opportunities in light of these tensions [SOURCE - CBS News].

In Mexico, the economic landscape is also fraught with challenges. The country is adapting to unpredictable US trade policies, with reports indicating that US buyers are rerouting shipments of critical minerals through Mexico and Thailand to bypass China's export ban. Additionally, Mexico has attracted $3.7 billion in Spanish investment in the first quarter of 2025, following a record-breaking year [SOURCE - TIMES OF INDIA].

The US has escalated its trade war by announcing a 30% tariff on goods imported from Mexico and the European Union, a move that has been met with strong rejection from Mexican officials, who label it an unfair deal [SOURCE - LIVEMINT].

Natural disasters have also made headlines, with New Mexico experiencing severe flash flooding that has trapped dozens and resulted in three missing persons [SOURCE - FORBES].

In the realm of political and social issues, Mexico's President has criticized a march against mass tourism as xenophobic, highlighting the government's failure to address local concerns. Meanwhile, John Kerry has acknowledged that Democrats allowed the US-Mexico border to be "under siege" during the Biden presidency [SOURCE - LIVEMINT].

Carpe tomorrow!