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.
-
The 30 house price hotspotsWhile we have seen house prices sliding, these sought-after locations have seen prices jump by at least 5% over the previous 12 months
-
Working parents will be entitled to 15 hours free childcare for two-year-olds from next year
The government has extended free childcare hours to working parents of two-year olds but it won’t be automatic so make sure you don’t miss out
-
The rise and fall of Sam Bankman-Fried – the “boy wonder of crypto”
Why the fate of Sam Bankman-Fried reminds us to be wary of digital tokens and unregulated financial intermediaries.
-
The jury's out on the AI summit at Bletchley Park
World governments gathered for an AI summit at Bletchley Park in November, but were they too focused on threats at the expense of economic benefits?
-
As a market correction begins, money is on the move.
The force of a market correction is equal and opposite to the delusion that preceded it, so we can imagine that the correction will also be unparalleled.
-
How small businesses can retain staff in a competitive job market
Small businesses are struggling to retain staff and compete against large companies with deep pockets.
-
The French economy's Macron bubble is bursting
Cheap debt and a luxury boom have flattered the French economy. That streak of luck is running out.
-
K-pop hitman Bang Si-hyuk aims to repeat BTS phenomenon
Bang Si-hyuk created the world’s biggest boy band, BTS, making K-pop music a global sensation and himself very rich. Can he repeat the trick with a girl band?
-
Nudge theory – how does it hold up, 15 years later?
Nudge theory, the revolutionary theory of how governments can get you to change your behavior for your own good, is now 15 years old. How does it stand up?
-
Betting on US politics – who'll be the next US President?
In the latest betting on US politics, with just over a year until the next US presidential election, punters pick Donald Trump as the favourite.
