International News 18 August 2026
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China's Economic Momentum Falters in July as Industrial and Retail Growth Cool
China's economy lost momentum at the start of the second half of 2026, as growth in both industrial output and retail sales slowed in July amid disruptions from extreme weather and persistently sluggish domestic demand. These headwinds have amplified pressure on Beijing to introduce stronger stimulus measures to support the recovery. The disappointing performance follows second-quarter GDP growth that slumped to a three-and-a-half-year low, highlighting China's heavy dependence on overseas shipments to offset lagging domestic consumption and private investment. Compounding these internal challenges, the world's second-largest economy continues to navigate external headwinds, including U.S. trade tariffs and spillover effects from the ongoing conflict in the Middle East. Official data from the National Bureau of Statistics (NBS) revealed that industrial production grew 4.5% year-on-year in July, decelerating from 5.3% in June and falling short of the 4.8% expansion projected in a Reuters poll. Xu Tianchen, a senior economist at the Economist Intelligence Unit, noted that the weaker-than-expected figures reflect, in part, the suboptimal deployment and effectiveness of current policy tools.
Likud Primary Highlights Rightward Shift as Netanyahu Faces Tough Reelection Fight
Israeli Prime Minister Benjamin Netanyahu’s Likud party is selecting its slate of candidates for the upcoming October general election, but a noticeable rightward shift among party members could further jeopardize his bid to retain power. Candidates chosen in Monday's internal primary face an uphill battle, as opinion polls show Likud’s popularity has tumbled significantly since the October 7, 2023 attacks by Hamas. Projections suggest the ruling party is at risk of losing roughly one-third of its parliamentary seats in the forthcoming national vote. Analysts caution that Likud's electoral prospects could deteriorate further if its approximately 140,000 registered primary voters favor hard-right and populist figures, running counter to surveys showing that mainstream, traditional voters prefer the party to adopt a more centrist stance. Nimrod Nir, an analyst at Agam Labs at the Hebrew University, noted that the ideological gap between core Likud members and the broader electorate has widened substantially—a dynamic that could deliver a dramatic blow to Netanyahu’s ability to secure a general election victory.
Wall Street Opens Lower Amid US-Iran Tensions Despite AI Boost
Wall Street kicked off the week on a weaker note as investors weighed escalating geopolitical friction between the United States and Iran, though robust revenue projections from AI lab Anthropic provided some support to tech shares. As trading opened on Monday, the Dow Jones Industrial Average dropped 164.46 points, or 0.31%, to 53,567.95, while the S&P 500 dipped 10.71 points, or 0.14%, to 7,775.01. The Nasdaq Composite also slipped marginally by 2.43 points, or 0.01%, to stand at 26,726.73. Market sentiment came under pressure after a senior Iranian official told Reuters that Tehran is prepared to escalate tensions in the Strait of Hormuz and across the broader region should diplomatic efforts with Washington fail, pointing to a strategic shift toward offensive deterrence over defense. Consequently, mounting supply concerns lifted Brent crude futures by approximately 0.4%, which in turn helped push the S&P 500 energy sector up by 0.2%.