Can anything stop rising inflation? asks Daniel Moss on Bloomberg. How about a Chinese slowdown? The world’s second-biggest economy grew at a record 18.3% year-on-year in the first quarter of the year but has slowed sharply. GDP rose by an annual 4.9% in the third quarter, the slowest pace in a year and down from the 7.9% rate recorded between April and June, says Katie Silver for the BBC. Soaring commodity prices have seen many provinces impose electricity rationing, which is weighing on industries such as cement, steel and aluminium smelting.
China’s slowdown has been “more pronounced than anticipated”, says Moss. Lower Chinese demand could cool the rally in many commodity prices. It won’t necessarily be deflationary, however: closed factories will reduce the global supply of essential goods. Factory-gate prices, a measure of the prices manufacturers charge wholesalers, grew at their “fastest pace since records began in 1996” last month, says Strydom.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
China has been contending with a “triple shock” from power cuts, the pandemic and the property slowdown, says The Economist. A Covid-19 “cluster that began in Nanjing in July, prompted strict, localised lockdowns [and] airlines were operating at less than half their full capacity in August”. Year-on-year growth could slow further “to 4% or below” in the final quarter of this year.
-
Will UK inflation rise ahead of BoE meeting?August’s inflation report will be published at 7am on Wednesday, 17 September, one day before the Bank of England’s next rate-setting meeting
-
Thousands of savers with £250k pensions take cash over tax-free money and IHT fearsWith a record £70 billion withdrawn from pensions in the year to March, experts are concerned savers are making knee-jerk decisions without advice that could affect their long term wealth
-
'Ride the recovery in emerging markets': Gustavo Medeiros of Ashmore Group tells MoneyWeekInterview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
'The City's big bet on green finance fails to pay out'Opinion Insurers and banks are backing away from “green finance”, and there is not much sign of the green boom we were promised. That’s a problem for the City
-
Why is English football thriving – and can it last?What has gone so right for English football? The national team has found its feet; the Premier League is swimming in money and profits are soaring
-
Should you invest in Pakistan – the Vietnam of South Asia?Opinion If Pakistan is now serious about reform, it’s time for investors to buy, says Maryam Cockar
-
'Why you must own gold and Bitcoin'Opinion The world is dedollarising, and gold and Bitcoin are the only alternatives. Buy now, says Dominic Frisby
-
'Britain is on the road to nowhere under Labour'Opinion Britain's economy will shake off its torpor and grow robustly, but not under Keir Starmer's leadership, says Max King
-
What are wealth taxes and would they work in Britain?The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
-
UK bank stocks are no bargain – here's a safer alternativeOpinion Britain's banking sector faces severe political risks. Switch into this global financials trust instead, says Max King
