Beijing bets on cars to trigger growth

<p>Kia ora,</p><p>Welcome to Monday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the international edition from Interest.co.nz.</p><p>And today we lead with news China is starting to roll out more industry support to bolster its flagging economy.</p><p>But first, this coming week will be a busy one. And it will be dominated by the US Fed rate decision on Thursday (NZT). Analysts expect a +25 bps rise to 5.50%.</p><p>The Americans will also release their first estimate of Q2 GDP growth, and there will be more earnings results for more large companies. Other important releases to watch out for include the US PCE price index, durable goods orders, and many PMI survey results for July.</p><p>Both the ECB and the Bank of Japan will also review their benchmark rates and we will get Q2 inflation rates for Germany, France, Spain, and Australia.</p><p>Over the weekend data showed that <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/230721/dq230721a-eng.htm?HPA=1" target="_blank"><strong>Canadian retail sales stalled in June</strong></a> following a small rise in May. Things would have been worse if it wasn't for strong new car buying.</p><p>In China, their economic weakness is spreading and now <a href="https://asia.nikkei.com/Business/Business-Spotlight/China-Inc-s-profit-warnings-reveal-deflationary-pressures" target="_blank"><strong>coming out in corporate earnings</strong></a>. Listed companies, especially in industrial sectors, have issued profit warnings for the first half of the year, raising questions about the government's optimistic depiction of the economy. Analysts say almost a third of mainland-listed companies have released first half earnings previews, with less than half making positive announcements. Basically there is no 'recovery', or if there is one, it is weak. Beijing is <a href="https://www.chinabankingnews.com/2023/07/21/beijing-strives-to-boost-chinas-private-economy-and-spur-domestic-consumption/" tar