Russian and Chinese naval vessels are set to carry out joint patrols in the Asia-Pacific region following recent military exercises in the Sea of Japan, Interfax reported on Wednesday (August 6). According to a statement from the Russian Pacific Fleet's press service, "Naval crews from Russia and China's PLA Navy will establish a new task group for joint patrol missions in the Asia-Pacific."

From August 1-5, the two navies conducted joint drills in the Sea of Japan, which involved live artillery firing, anti-submarine warfare, air defense operations, and coordinated search and rescue exercises at sea. In the final phase of these drills, the Russian anti-submarine ship Admiral Tributs and corvette Gromky, alongside Chinese destroyers Shaoxing and Urumqi, performed live-fire exercises and practiced locating and eliminating a simulated enemy submarine, Interfax reported.

The Russian Pacific Fleet emphasized that the exercises were purely defensive and not aimed at any specific nation. Russia and China, who declared a "no-limits" strategic partnership just before Russia's 2022 invasion of Ukraine, regularly hold joint military drills to enhance coordination between their forces and demonstrate a unified stance to deter potential adversaries.
Disclaimer: This image is taken from Reuters.

China's services sector expanded at its quickest rate in 14 months during July, driven by stronger demand, including a rise in new export orders, according to a private survey released on Tuesday. The S&P Global China General Services PMI climbed to 52.6 in July, up from 50.6 in June, marking the highest level since May last year. A reading above 50 indicates growth. This result differed from China’s official data, which showed services activity slipping slightly to 50.0 in July from 50.1 in June. The S&P PMI is often viewed as a better indicator of trends among smaller, export-reliant businesses, especially in coastal regions, whereas the official PMI focuses on larger firms, including state-owned enterprises.

Meanwhile, the S&P China General Composite PMI, which combines manufacturing and services data, eased to 50.8 in July from 51.3 in June. China’s economy, the world’s second largest, slowed less than anticipated in the second quarter, aided by government stimulus and manufacturers accelerating shipments amidst a US-China trade truce. However, concerns persist for the latter half of the year due to weakening export momentum, falling prices, and subdued consumer confidence, aggravated by a lingering property sector slump.

The S&P Global survey highlighted that new business growth reached a one-year high, supporting overall activity going into the second half. New export orders increased for the first time in three months, helped by stronger tourism and more stable trade conditions. Recently, US and Chinese officials agreed to extend their 90-day tariff truce after holding two days of what both sides described as constructive discussions in Stockholm. The survey also noted that service firms, after cutting jobs in June, added staff in July at the fastest pace since July 2024, spurred by increased workloads and growing optimism. This resulted in a slower build-up of unfinished tasks.

Rising costs for inputs such as raw materials, fuel, and wages kept input price inflation in positive territory, prompting service providers to raise their selling prices for the first time in six months. With business activity and new orders improving, overall confidence among service firms strengthened. From July onwards, Caixin has ceased its sponsorship of the S&P Global China PMI surveys.
Disclaimer: This image is taken from Bloomberg.

Next to BMW’s headquarters in Munich, a museum and exhibition center proudly displays historic models like the 507 convertible that Elvis Presley once drove during his military service in Germany. The car, initially painted white, was later turned red after fans kept scribbling on it with lipstick. However, behind closed doors at the same campus, a different BMW vehicle is being kept out of sight — camouflaged and closely guarded — as it represents the company's next big leap.

This SUV, named the iX3, is the first of 40 new or revamped models that will feature advanced software, powerful computing systems, and bold design changes. BMW is accelerating its release, aiming to swiftly integrate this technology across its entire lineup within two years. The urgency is driven by a rapidly changing automotive landscape, where Chinese manufacturers are outpacing even Tesla. CEO Oliver Zipse described this as BMW’s largest investment ever in a single vehicle platform during its 109-year history.

The car industry is navigating through major disruptions, from U.S. tariffs under Donald Trump to China’s local automakers flooding the market with feature-rich and affordable EVs. Despite these challenges, BMW is pushing forward, reviving the historic “Neue Klasse” name that once saved the brand in the 1960s. Early reactions suggest these new models live up to the name, with analysts praising BMW’s forward-thinking approach.

Zipse, who took over as CEO in 2019, faced the challenge of Tesla pulling away from traditional automakers, as evidenced by BMW owners switching to Tesla’s Model 3. At that time, BMW’s only electric offering, the i3, lagged far behind in range, size, and charging capabilities. The iX3 is poised to change that narrative, boasting a range of up to 800 kilometers under European testing and ultra-fast 400 kW charging, far surpassing Tesla’s Model Y in both metrics.

However, Zipse emphasizes that technological prowess must also be paired with a viable business strategy. While EVs are a growing segment, combustion engine vehicles still dominate BMW’s sales. To optimize costs, BMW plans to integrate its new high-performance computing systems — offering twenty times more power than current models — across all vehicle types. These systems will manage everything from driver assistance to infotainment, developed through BMW’s global network of software hubs in countries like Portugal, South Africa, China, India, Romania, and the U.S., employing about 5,000 IT specialists.

Yet, BMW’s success will depend heavily on its performance in China, the world’s largest EV market, where local brands are capturing market share rapidly. BMW’s sales in China have declined significantly over the past two years, and local competitors are undercutting prices with impressive features. Zipse acknowledges that BMW must withdraw from unprofitable segments, but warns against disengaging from China, highlighting its scale, innovation, and importance to the global auto industry. BMW has made efforts to appeal to Chinese consumers by integrating local apps like WeChat and prioritizing China for new technology rollouts. For instance, the company’s AI-driven large language models will debut in China through a partnership with startup DeepSeek.

Meanwhile, Tesla’s dominance, particularly in Europe, is being questioned as Elon Musk’s public image becomes increasingly polarizing. Zipse refrained from direct criticism but suggested that BMW’s focus is on creating cars customers can proudly own without needing to justify their choices. He also pointed out how Tesla’s success was significantly supported by regulatory credits, a revenue stream now under threat due to policy rollbacks in the U.S. that are dismantling emissions regulations. In June, BMW invited journalists to test-drive the iX3 prototypes in France, showcasing the vehicle’s superior handling, ride comfort, and advanced driver assistance systems. Early feedback indicated that the iX3 delivers a driving experience surpassing even luxury brands like Rolls-Royce in certain aspects.

BMW’s production of the iX3 will start at its new Hungarian plant later this year, with expansion plans for facilities in China, Mexico, the U.S., and Munich. Transforming the Munich factory has been especially challenging, as new construction overlaps with ongoing production of current models. From 2027, the Munich plant will exclusively produce electric vehicles, marking the end of its combustion engine era after 75 years. With Zipse’s tenure nearing its end next year, his successor will take over the ambitious task of embedding Neue Klasse technology across BMW’s portfolio and pushing EV sales to account for half of the company’s global volume by 2030. Despite the looming challenges of tariffs and trade tensions, Zipse remains unfazed, insisting that product desirability will ultimately determine BMW’s success.
Disclaimer: This image is taken from Bloomberg.

On Thursday, July 31, Germany’s foreign minister stated that recognition of a Palestinian state should follow negotiations toward a two-state solution, but warned that Germany would not remain passive if Israel took unilateral actions, especially in light of annexation threats made by some Israeli ministers.

Johann Wadephul made the remarks ahead of his visit to Israel and the Palestinian territories, a trip described by Berlin as a fact-finding mission amid growing concern over the humanitarian crisis in Gaza. His comments represent one of Germany's strongest warnings to Israel to date, as several Western countries — including the UK, Canada, and France — consider recognizing a Palestinian state at the upcoming UN General Assembly in September.

Despite this shift, some critics believe Germany’s response remains too cautious, influenced by historical responsibility for the Holocaust and a strong pro-Israel stance in parts of its media and political establishment. They argue this hesitance weakens the broader international push for meaningful pressure on Israel.

Wadephul reaffirmed that lasting peace in the region depends on a negotiated two-state solution, allowing a Palestinian state to exist peacefully alongside Israel. He emphasized that with increasing international support for unilateral recognition of Palestinian statehood, the Middle East is now at a critical turning point. If Israel moves forward with unilateral decisions, Wadephul warned, Germany will be forced to react accordingly.
Disclaimer: This image is taken from Reuters.

The US makes up less than 15 percent of global trade, yet President Donald Trump succeeded in imposing tariffs on the country’s largest trading partners. Arnold Gay discusses with trade expert Deborah Elms, joined by Leong Wai Kit and Toni Waterman, to explore why numerous countries gave in to Trump’s demands.
Disclaimer: This Podcast is taken from CNA.

Donald Trump has launched yet another lawsuit against a media outlet — but this time, his target is billionaire media mogul Rupert Murdoch. Jonathan Freedland talks with David Folkenflik, author of Murdoch’s World: The Last of the Old Media Empires, about what this legal battle could mean for the former president.

Disclaimer: This Podcast is taken from The Guardian

Treasurer Jim Chalmers shares with Guardian Australia's chief political correspondent Tom McIlroy that a major goal for him moving forward is ensuring the long-term sustainability of Australia’s budget. Their conversation also covers the difficulties in achieving housing targets, how morning news impacts his daily strategy, and what he aims to achieve at this week’s G20 finance ministers' meeting.
Disclaimer: This Podcast is taken from The Guardian.

What strategy does the Australian women's water polo captain have, and will Australia’s playing style pose a major challenge for Singapore—especially following the team's strong performance at the Paris Olympics? Daniel Martin speaks with Genevieve Longman, Goalkeeper for Water Polo Australia, to find out.
Disclaimer: This Podcast is taken from CNA.