China's exports fall again; Japan to launch stimulus plan – business live

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Rolling coverage of the latest economic and financial news

11.13am GMT

Back in China, car sales have slumped again as consumers rein in spending.

China car sales keep plunging as peak season fails to deliver

10.51am GMT

Shareholders 1: Bankers 0….

Related: Standard Chartered to halve £474k pension payout for CEO

10.47am GMT

Economists predict that Japan’s economy has slowed in the last quarter, further justifying another stimulus push.

GDP is estimated to have risen by just 0.2% in July-September (the official data are released next week), down from over 0.3% in April-June.

#Japan consumer #spending rose by a whopping 9.5% YoY in September, the most on record, as the October sales #tax drove last-minute buying.

10.19am GMT

Japan is also concerned that growth could shrivel once the 2020 Tokyo Olympics are complete.

Mr Suga [cabinet secretary] said there would also be spending to raise productivity in small businesses, agriculture and regional Japan, as well as investment to improve economic competitiveness beyond the Olympics.

There are widespread fears of a slump late next year, once real estate investment timed for the games is complete.

10.08am GMT

Japan is drawing up a new stimulus programme to boost the economy, and protect the country from natural disasters.

Shinzo Abe instructed his ministers to come up with investment plans to support growth, in the face of a slowing economy and trade tensions.

“I’ve received an instruction from the prime minister to compile a new economic package to guard against the chance overseas risks may hurt Japan’s economy.

To speed up our recovery [from natural disasters], deal with risks from abroad and accelerate productivity growth, we are formulating an economic plan along the lines of a 15-month budget.”

Japan latest country to enact or plan stimulus to try to boost struggling #economy – in its case #fiscal rather than #monetary & focused on boosting public investment & taking advantage of negative or very low interest rates via @financialtimes

9.33am GMT

Just in: London’s Crossrail has been delayed yet again, and is going to cost even more money.

The latest projections now show a central cost forecast (including risk contingency) of approximately £15,363m, which is £400m more than the funding committed under the Financing Package.

Further modelling scenarios consider even higher levels of risk of £650m more than the funding committed under the Financing Package.

More delays and more money need for London’s long-awaited @Crossrail project. TFL says it won’t open in 2020 as hoped. Was meant to open last year.

Breaking: @TfL statement to @LSEplc rules out Crossrail opening next year and says costs will increase by a further £400m-£650m. Central section will now open “as soon as practically possible in 2021”.

Crossrail will officially be at leas two years late

9.04am GMT

In the UK, Royal Mail is heading to the High Court in an attempt to block a pre-Christmas strike.

The postal operator claims there were irregularities when staff were balloted on industrial action — including staff opening the ballot papers at work and being encouraged to vote to strike.

Related: Royal Mail applies for high court injunction in attempt to stop strike

8.52am GMT

European stock markets have also opened in the red, handing back some of their recent gains.

In London, the FTSE 100 has dipped by 0.2% or 15 points. Mining companies are among the fallers, following the drop in Chinese iron ore imports last month.

Yesterday, US equities pushed the record highs again and bonds tumbled, while European stocks firmed around 4-year peaks on hopes and perhaps signs of real progress on trade following remarks, just before the London open, that the US and China were in agreement on rolling back tariffs as part of a managed ceasefire.

There was confusion over exactly what the Chinese official said, but seemed to be clarified by the US saying the phase one deal would include tariff rollback. White House ‘sources’ reports later talked of ‘fierce internal opposition’ with no final decision made.

8.46am GMT

Shipments of iron ore into China have fallen, in another sign that its economy is weakening.

8.25am GMT

Trade war jitters pushed markets lower across Asia today.

China’s CSI 300 ended the day down 0.5% at its lowest closing level in a week. South Korea’s KOSPI index, which is also vulnerable to trade tensions, lost 0.4%.

8.16am GMT

White House spokeswoman Stephanie Grisham has bolstered hopes of a trade deal soon.

“I cannot get ahead of the talks with China, but we are very, very optimistic that we will reach a deal soon.”

7.56am GMT

Although poor, today’s trade data from China is better than hoped.

Economist Shane Oliver of AMP Capital says investors had expected a sharper fall in both imports and exports.

#China Sept trade data better than exp.
Exports -0.9%yoy, up from -3.2%yoy (mkt exp was -3.9%)
Imports -6.4%yoy, up from -8.3%yoy (mkt exp was -7.8%)

Exports to US -16%yoy on trade war impact

Better momentum..but just bouncing in same range for last six months or so

#China trade data improving: Exports “only” -0.9% yoy from -3.2% in Sep , imports -6.4% from -8.5% yoy

Here’s the kicker: Exports to the US +4.6% Month On Month in Oct (still neg yoy);”exemptions of some China exports to the US from tariffs in late Sep could be a factor” (GS)

China exports fell -0.9%YoY v expectations of -3.9% and imports fell -6.4% vs expectations of 7.8% so both better than expected but still in CONTRACTION. Trade balance is even higher at 42.8bn due to the declining imports so sheltering the domestic economy via the current account

7.39am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Related: US-China trade war: hopes of deal rise after partial easing of tariffs

The Chinese Communist Party is trying to “re-trade” the agreement, said Stephen Bannon, former White House adviser. He added that rolling back earlier tariffs “goes against the grain” of the original October agreement.

“There’s nothing that Trump hates more” than someone backtracking on a deal, he said.

China’s exports declined by 0.9 per cent in October, while imports continued their historically bad slump with a 6.4 per cent decline, reports @fbermingham #China #china #Trade #TradeDeal #TradeWars #tradewar #exports #imports

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Source: china
Link : China’s exports fall again; Japan to launch stimulus plan – business live



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