Toyota Motor said July global vehicle sales fell 4.8% YoY to 856,125 units and production fell 2.1%. China sales dropped 24.3% YoY, the sixth consecutive monthly decline; US sales fell 0.8% and Middle East sales slid 44.5%, offsetting an 11.0% rise in Japan. By production, Japan output rose 12.4% but was outweighed by a 32.7% decline in China and a 4.0% fall in the US. Japanese exports rose 10.2% YoY to just over 196,000 units, the third straight month of growth and the highest since October.

ECB governing councilor Kazaks said the central bank cannot allow consumer prices to keep rising or let inflation become entrenched, noting rate hikes are a tool to curb its spread and that the ECB has already tightened once. Markets expect a September rate hike; the ECB raised in June and held in July, and will publish fresh economic projections at the September meeting to guide the decision. Kazaks said the ongoing Middle East war is prompting the ECB to reconsider further tightening and that, while outcomes next month are uncertain, he judges the probability of a hike to be fairly high.

State media said the Qatari PM visited Tehran today. Iran foreign minister Araghchi called talks with the Qatari prime minister and foreign minister constructive and creative, saying restoring diplomacy "is not impossible" and urging the US to understand that "pressure won't work," build trust, speak respectfully, acknowledge Iran's rights and fulfill its commitments.