Markets recover as China calls for calm over trade war – business live

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All the day’s economic and financial news, as investors worry that Donald Trump could trigger a full-blown trade war with China

12.13pm BST

The US stock market is expected to rise when trading begins in a couple of hours, ending several days of losses.

The Dow is looking to snap a six day losing streak today. Dow Futures may be in for a rebound up 125-points right now.

11.59am BST

The Bank of England could face a major shake-up if Labour wins the next election.

Labour’s shadow chancellor, John McDonnell, is unveiling a swathe of proposed reforms to Britain’s central bank today.

John McDonnell says he will be recommending the GFC report to the Labour party “because I support it” — in other words, he would like the Bank to have a productivity target – but it’s for the party as a whole to decide.

McDonnell says he’s on a “tea offensive” of the City of London to talk bankers and fund managers through Labour’s economic plans. “Once we cut through some of the media coverage… we’re generally finding we’re on the same page.”

He says Labour can “offer them [the City] a better way through Brexit which will protect jobs and the economy”

Since no MPC member thinks ⁦@bankofengland⁩ can boost productivity, they’d all have to resign if Labour won power
https://t.co/bZVXj4Oy1x

11.37am BST

Good news: UK factory orders have risen, helping manufacturers to boost their output.

The CBI’s latest healthcheck on the sector has found that manufacturing order books recovered in the last quarter, while the volume of output increased strongly.

“The recovery in orders and a return to bumper growth in production suggests the lull in manufacturing activity may be over. While risks to demand persist from Brexit and escalating global trade tensions, firms can work with the Government to nurture a pro-enterprise environment that helps UK growth to shift up a gear.

11.13am BST

UK housebuilder Berkeley has called the top of the London housing market.

It is telling that some funders and builders are choosing to exit the market when faced with the degree of risk and regulation that now confronts development in the capital where macro and political uncertainty, including Brexit, are leading to this caution.

This is a great shame as London is a fantastic world-class city with unique attributes that will last long beyond the current hiatus which is only exacerbating the well documented under-supply.

10.33am BST

Stocks are recovering because investors are snaffling up bargains after Tuesday’s rout, says Ken Odeluga of City Index.

European stocks are posting solid gains with similar demand building in Dow, S&P and Nasdaq contracts.

This follows chunks of buying interest in Asia-Pacific shares. It looked very much like bargain-motivated flows juiced by a window of benign currency conditions, particularly in Japan, Hong Kong, S. Korea and Australia where benchmarks all added around 1%. Chinese equities also enjoyed a bounce, though to a lesser extent, with precarious sentiment capping Shanghai and Shenzhen gains as investors read the PBoC stepping in as corroborating a sense of crisis. The central bank recommended a reserve ratio requirement cut—essentially looser policy—after fresh tariff threats.

10.17am BST

Elsewhere in the markets, cryptocurrency prices are falling after another digital coin exchange was hacked.

The South Korean cryptocurrency exchange Bithumb says it lost 35bn won ($31.5m) worth of virtual coins to hackers. It’s the second such breach in a week, highlighting the risks of investing in crypto (as coins are virtually anonymous, they can be almost impossible to recover).

Related: South Korea’s Bithumb loses $31.5m in cryptocurrency heist

Crypto update:#BITCOIN 6633.58 -0.94%#ETHER 526.23 -0.98%#BITCOINCASH 874.93 -1.81%#RIPPLE 0.531 -1.81%#LITECOIN 96.15 -1.88%#BTC #ETH #BCH #XRP #LTC

10.00am BST

Two hours into the trading day, and European markets are all comfortably higher.

Shares are up across the board, as traders shake off some of their fears about a devastating trade war.

Markets are taking a breath right now and retracing some of the moves over the past number of sessions. Whether this turns into a broader rally or the selloff is resumed remains to be seen. Stock markets are higher after support was found in the European session yesterday and US and Asian traders built on the foundations of that support.

9.35am BST

Sterling has hit a new seven-month low this morning, as the UK government faces another crunch vote over Brexit.

Parliament will vote on the EU withdrawal bill, the government’s flagship piece of Brexit legislation, later today. And one group of MPs are refusing to drop their demand for a ‘meaningful’ vote in the scenario in which Britain can’t agree a Brexit deal.

Related: Brexit: No 10 and rebels stand firm in row over ‘meaningful vote’

9.11am BST

Those calming words from the People’s Bank of China are helping markets recover from yesterday’s rout.

In London the FTSE 100 has jumped by 80 points, or 1%, to 7683 (partly helped by a weaker pound).

On the trade front, we’re likely to see a two month ‘hibernation’ as the US works through the legal process for the next $200bn of tariffs and China awaits the US’ formal response.

8.53am BST

The boss of Wall Street giant Goldman Sachs has predicted that China and the US still step back from a devastating trade wars.

That’s what you would do if it was a negotiating position, and you wanted to remind your counterparty just how much fire power you had to bring to the negotiation.”

“I don’t think we’re in a suicide pact on this…“I suspect we’re not going to cause the economies to collapse with Smoot-Hawley on steroids.

8.31am BST

China’s stock market isn’t the only one flirting with a bear market.

After days of losses, the Philippines PSI index has fallen almost 20% from its recent peak.

Philippine stocks may fall into a bear market as early as today amid record streak of outflows of 23 straight days. $40 billion in value wiped out this year from the country’s biggest stocks pic.twitter.com/eZcFpBGl6j

8.22am BST

Donald Trump’s threat to impose more tariffs on China is dominating the newspapers across Asia today.

The China Daily newspaper – often a good window into Beijing’s thinking – has accuse the US of trying to hurt the Chinese economy.

“Faced with this heightened intimidation from the U.S., China has no choice but to fight back with targeted and direct measures aimed at persuading the U.S. to back off, since it appears that any concessions it makes will not appease the Trump administration, which wants to suck the lifeblood from the Chinese economy.”

“Beijing will have to ensure that Washington is aware that there will be heavy price to pay every action it strikes against China if it is to avoid being a victim of the Trump administration’s growing blood lust.”

A raging fever of nationalism rising in the world’s sole super power sends an alarming signal. Nationalism is a challenge to globalization. Rising nationalism and protectionism could hinder the process of globalization and jeopardize the world order.

The US often points an accusing finger at alleged economic nationalism of other countries including China, but now, the reality is that Trump’s truculent nationalism is posing the biggest threat.

Epic trade-war front page from Apple Daily pic.twitter.com/8sSzk8IKdQ

8.07am BST

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

Related: Stock markets roiled as US-China trade dispute escalates

“China still has good economic fundamentals and resilient growth. The yuan is one of a few currencies that have appreciated against the US dollar this year.

“I’m fully confident about the health of China’s capital market based on the fundamentals.”

Shanghai Composite bouncing after a brutal Tuesday; trading close to the bubble burst lows… not a lot going right for #China at the moment.
Obviously this presents downside risks, but one question is where is the pain point for them to launch a new stimulus package? pic.twitter.com/ktTnJbXirg

Shanghai Composite bouncing after a brutal Tuesday; trading close to the bubble burst lows… not a lot going right for #China at the moment.
Obviously this presents downside risks, but one question is where is the pain point for them to launch a new stimulus package? pic.twitter.com/ktTnJbXirg

#China | PBOC Governor Yi Gang says China share price drop on Tuesday were mainly emotions …nailed it.

Global GDP could stand to be hit by 2% – 3% should the trade war continue and spread, to put this into context the Great Recession wiped out 6% of the global GDP, so this trade spat is by no means insignificant.

For weeks the market has been relatively complacent that Trump’s tough protectionist rhetoric were merely a negotiating tool; however, the realisation that the US President is willing to go ahead with his threats has sent a shiver through the markets.

Continue reading…
Source: china
Link : Markets recover as China calls for calm over trade war – business live

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