Macro

Private residential construction spending declined 0.3% in June, while substantial downward revisions to improvement (remodeling) spending significantly altered the sector’s recent trajectory. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $877.1 billion in June, down 0.3% from the…

The Bank of Japan has continued normalising interest rates, ending its negative-rate policy in March 2024 and lifting the policy rate to 1.0% by June 2026. Against that backdrop, Mitsubishi UFJ, Sumitomo Mitsui and Mizuho posted combined net profit of ¥5.26 trillion for fiscal 2026, up 34% year on year. The improvement has been driven mainly by wider net interest margins as higher rates feed through to bank earnings.

Turkey’s annual inflation extended its decline to 31.8% in July, staying well above the central bank’s 24% target and the 26% forecast in its latest inflation report. Core inflation rose to 29.9% year on year, indicating underlying price pressures have not eased. The average USD/TRY increase was 1.7% month on month in July and around 17% on an annual basis, far below inflation, reflecting the central bank’s continued exchange-rate policy to support disinflation through costs.

Ghana’s latest Treasury bill auction attracted GH¢10.51 billion in bids for the 91-day, 182-day and 364-day tenors, exceeding the GH¢5.87 billion target and resulting in a 79.2% oversubscription. The 364-day bill saw the strongest interest, with GH¢7.47 billion tendered and GH¢7.18 billion accepted. The government accepted GH¢8.65 billion overall, rejecting nearly GH¢1.86 billion, according to results released by the Bank of Ghana.

China’s outbound direct investment across all industries rose 3.8% year on year in the first half of 2026 to 5964.2 billion yuan. Nonfinancial ODI totaled 4530.6 billion yuan over the period. Investment in Belt and Road partner countries fell 11.1% to 1207.7 billion yuan, while newly signed overseas engineering contracts in those countries increased 11.8% to 5207.1 billion yuan.

Egypt’s Ministry of Electricity and Renewable Energy said it would keep the tariff unchanged for the first low-consumption household bracket of up to 50 kWh, while raising other residential tiered rates by an average of 12%. The move targets an annual subsidy gap of about 100 billion pounds ($1.9 billion) between production costs and consumer tariffs. The subsidy share declines as usage rises, from customers paying 25% of the bill at 50 kWh to full cost from 2,000 kWh, according to the ministry.

Finance adviser Khurram Shehzad said private-sector credit grew 14.8% year on year in FY26 to Rs 11.38 trillion, marking the strongest expansion in four years. Corporate borrowing rose by Rs 1.18 trillion, accounting for more than 80% of the overall increase. Manufacturing, wholesale and retail trade, and agriculture made up 89% of the additional business credit, with manufacturing alone adding Rs 657 billion. The figures point to firm domestic demand for real-economy financing, according to Shehzad.

The Central Bank of Kenya has reopened a 10-year bond first sold in November 2019 at 12.28% annual interest, with 3.2 years left to maturity, aiming to raise Sh150 billion. The offer is designed to help refinance Sh195.7 billion of 91-day Treasury bills maturing over the next three months, including Sh15 billion due on September 7. The move is also intended to support the government’s Sh987.4 billion domestic borrowing target for the 2026/2027 financial year. The issuance is set to affect duration in the local-currency bond market and the shape of the yield curve.

Kenya’s Auditor-General Nancy Gathungu and Controller of Budget Margaret Nyakang’o say the government incurred Sh7.7 billion in commitment charges over five years on loans that were drawn but left unused, raising concerns about the prudent use of public funds. They say the fees were paid to international lenders to keep funds available even as ministries failed to utilise them. The Controller of Budget also reports that in the first six months of fiscal year 2025/26 the Treasury bought back part of a $1 billion bond issued in 2018 and due 2028, spending Sh86.2 billion to repurchase Sh82.3 billion in face value. She says the transaction added about ShSh3.86 billion in extra costs, including premium and accrued interest.

Foreign portfolio investors (FPIs) turned net buyers of Indian equities in July 2024 after four straight months of net selling, bringing in Rs 20,200 crore. The shift was attributed to more attractive valuations in India, improved corporate earnings expectations and easing global macro headwinds. FPIs had previously logged a net equity inflow of Rs 22,615 crore in February before a run of outflows. The Q1 FY27 results season and the Reserve Bank of India’s monetary policy meeting scheduled for August 5 are among the next key domestic catalysts to watch.