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 benchmark CSI 300 stock index is down by 6.5% since the start of the year. A crackdown on debt in the property sector – highlighted by the woes of developer Evergrande – has also hit construction activity, says Martin Strydom in The Times. “New construction starts slumped in September for a sixth straight month, the longest series of monthly declines since 2015.”
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.
Subscribe to 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.
-
England's department stores return – but do they have a future?Opinion The great traditional retail shops of Middle England have bounced back for now. Don’t get too carried away though, says Matthew Lynn
-
Rachel Reeves's Spring Statement: what we know so farChancellor Rachel Reeves will deliver her Spring Statement to Parliament on Wednesday, 26 March. Tax changes are not expected but spending cuts could be on the horizon.
-
England's department stores return – but do they have a future?Opinion The great traditional retail shops of Middle England have bounced back for now. Don’t get too carried away though, says Matthew Lynn
-
Can investors stay optimistic about Russian stocks?Investors look to profit from Russia as Trump pushes for peace in Ukraine. But is it worth the risk?
-
Labour's 'Project Chainsaw' begins by abolishing NHS England – will it backfire?Keir Starmer is taking the fight to the blockers, the NIMBYs, public sector workers and the unions says Emily Hohler. What happens if Labour fails to deliver?
-
The benefits of a stock bubbleOpinion We tend to think of stock bubbles as bad things but, as the dotcom craze shows, good things can come from them, says Matthew Lynn
-
Friedrich Merz proposes 'radical' spending package for GermanyGermany's chancellor designate Friedrich Merz wants to scrap restraints on borrowing and allow for much higher defence spending
-
Walgreens Boots Alliance sold to private equity firm - will Boots get the boot?US pharmacy giant Walgreens Boots Alliance is going private. Will the new owners sell off the high-street chemist?
-
Europe prepares to stand alone as Trump turns on UkraineSupport for old military alliances is wavering in the US under Donald Trump. Europe’s leaders are rushing to fill the void. Simon Wilson reports
-
Volodymyr Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
