Analysts and traders have been eyeing the slowdown of China as the source of the next financial crisis for many years. The Chinese economy has grown at envious levels to all in the west for well over a decade. As the western economies have gone into melt down, China has continued to demand raw materials, at an unprecedented level and produced low costs goods, with its cheap labour force.
The PBOC has come under criticism for holding the exchange rate artificially low to remain competitive, in what is part of the dubbed “currency-wars”. However the so-called hard landing of the Chinese economy is potentially appearing, overnight China’s official non-manufacturing PMI dipped 2.6 points to 53.7 in September from 56.3 in August. This is the lowest reading for the past 12-months, but should be noted that this figure is still expansionary. Governor of the RBA Glenn Stevens cited the slowdown in Chinese demand behind the central banks easing of monetary policy.
The Asian Development Bank (ADP)cut its growth estimates for the region for 2012-13, on concerns of the a slowdown in India and China.
Ed Miliband took the stage yesterday at the Labour Party’s conference with his One Nation speech, in what can only be described as well-delivered, lacking detail, and potentially damaging for the City of London. Personal opinions aside, it should not be forgotten that the City of London, is a world leader in the financial services and generates considerable personal wealth and tax revenue for the government.
Tesco, Britain’s biggest retailer, has reported its first fall in profits since 1994 due to a slowdown in sales in the UK, the cost of a £1bn turnaround plan to halt that decline, and pressure on its international businesses - Daily Telegraph
A Franco-Chinese consortium has walked away from the race to build Britain’s new generation of nuclear reactors -Financial Times
A group of ex-Nokia employees has raised €200m to launch a new mobile operating platform based on discarded Nokia technology -WSJ