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Business news - live: Chinese economy slumps to slowest growth in 27 years

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Ben Chapman
Friday 18 October 2019 08:11 BST
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China's economy grew at its slowest pace in almost three decades during the third quarter, official figures have revealed.

The world's second-largest economy expanded 6 per cent, having been hit by a protracted trade war with the US and falling demand at home.

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Welcome to The Independent's rolling coverage of business and economic events. 

China's economy grew at its slowest pace in almost three decades during the last quarter while the pound is down marginally against the dollar.

ben.chapman18 October 2019 08:52
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Chinese economy slumps

(AP) — China's economic growth sank to a 27-year low in the latest quarter amid pressure from a trade war with Washington, adding to a deepening slump that is weighing on global growth.

The world's second-largest economy expanded by 6 percent in the three months ending in September, down from the previous quarter's 6.2 percent, data showed Friday. It was the weakest growth since China started reporting data by quarters in 1993.

The slump adds to problems faced by Chinese leaders, including rising inflation and weaker consumer demand, as they fight a tariff war with President Donald Trump over Beijing's trade surplus and technology ambitions.

"Pressure on economic activity should intensify in the coming months," said Julian Evans-Pritchard of Capital Economics in a report.

Asian stock markets declined on the news. China's benchmark Shanghai Composite Index lost 0.6 per cent and Hong Kong's Hang Seng shed 0.2 per cent.

The unexpectedly weak data raise the likelihood of interest rate cuts and other stimulus to shore up growth and avert politically dangerous job losses. Chinese leaders have boosted government spending but avoided a large-scale stimulus until now for fear of reigniting a rise in debt that already is so high that rating agencies cut Beijing's credit rating.

"More aggressive stimulus can be expected," said Bill Adams of PNC Financial Services Group in a report.

The slowdown in China, the world's biggest trader, has global repercussions. It is depressing demand for industrial components from Asian countries. Prices of soybeans, iron ore and other commodities have fallen, hitting Brazil, Australia and other suppliers.

ben.chapman18 October 2019 09:15
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Marriott International snaps up luxury hotels company Elegant

Hotel chain Marriott has bought Barbados-based Elegant for £101m in a deal the two companies said would let them offer more all-inclusive holiday deals.

Elegant owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne's, on the island of Barbados. Elegant has 588 rooms in Barbados - twice as many as its closest luxury competitor on the Caribbean island.

ben.chapman18 October 2019 09:21
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Is Britain facing a new credit crunch?

James Moore's verdict:

"In top of all its other economic problems, is Britain facing a corporate credit crunch? The Bank of England’s credit conditions survey shows that business lending remained more or less flat as a pancake for the three long years after the EU referendum. That’s changed and not in a good way. 

"The latest update shows a decline in the third quarter of 2019 which is expected to accelerate during the current quarter. If lending performs in line with expectations for the final three months of 2019, it will show the sharpest decline since the run up to the financial crisis. 

"That statement demands a little context. In the absence of an economic earthquake, the decline won’t come close to the slump the Bank’s graphs show occurred in the latter part of 2007 when the UK was in the midst of the global credit crunch."

ben.chapman18 October 2019 09:21
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A 'convincing' Brexit deal could send pound soaring to $1.35 - UBS

Optimism for the strength of the pound should remain cautious, says – Mark Haefele, chief investment officer at UBS Global Wealth Management.

"Amid the optimism about a deal, it is important to remember that the agreement still has to be agreed to by the EU27 heads of state as well as the UK parliament. As things stand, parliamentary ratification is far from certain. 

"Support for the revised agreement has not been forthcoming from Northern Ireland’s Democratic Unionist Party, which is likely to be needed to get the deal over the line.

"We retain our overweight position in sterling versus the US dollar in our FX strategy. If a convincing deal is reached we could see GBPUSD rallying to 1.35."

ben.chapman18 October 2019 09:31
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Daniel on Sainsbury's Twitter account is getting confused this morning...

ben.chapman18 October 2019 09:36
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Barristers urge government to launch new policies on sexual harassment at work

A professional body which represents barristers has called for the government to implement new policies on sexual harassment in the workplace.

The Bar Council, which represents all 16,500 barristers in England and Wales, has lent its backing to a number of proposals the government has outlined in its recent consultation on sexual harassment at work.

It comes after a global study recently found bullying and sexual harassment was particularly prevalent in the legal profession in the UK.

ben.chapman18 October 2019 09:40
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Halloween costumes contain equivalent of 83 million plastic bottles

Halloween costumes sold by some of the UK's biggest retailers will contain the equivalent of 83 million plastic bottles, a study suggests.

An investigation of 324 clothing lines sold by 19 retailers by the environmental charity Hubbub and nature charity The Fairyland Trust found that 83 per cent of the material in the costumes is oil-based plastic.

The most common plastic polymer found in the clothing sampled was polyester, making up 69 per cent of the total of all materials.

The study predicts that the costumes will add up to 2,000 tonnes of plastic waste in the UK this year.

Both charities are urging families to avoid adding to problems caused by plastic waste by creating their own costumes from existing or second-hand clothing.

Press Association

ben.chapman18 October 2019 10:00
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Austerity has created a perfect storm for the rise of child slavery

Cuts mean children are more likely to fall victim to trafficking – and make it harder for authorities to give them the help they need, writes May Bulman.

"The dramatic rise of child slavery brings into sharp focus how the cuts brought in during the early part of the decade are still causing problems across the country."

ben.chapman18 October 2019 10:30
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‘Hidden’ unemployment raises UK jobless rate threefold, report says

Britain’s jobless rate is almost three times higher than official data suggests once “hidden unemployment” is included, according to new research.

The report by the Organisation for Economic Cooperation and Development (OECD) and the Centre for Cities, a UK think tank, casts doubt on the apparent resilience of the UK labour market since the EU referendum in 2016.

ben.chapman18 October 2019 11:00

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