FirstFT: China warns of economic uncertainty



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The pace of China’s economic recovery picked up slightly in the second quarter after signs of a slowdown in the world’s second-largest economy fueled expectations of greater political support.

On a quarterly basis, China’s gross domestic product rose 1.3% in the three months to the end of June, up from a revised 0.4% increase in the previous quarter, the National Bureau of Statistics said Thursday. .

Economists had predicted growth of 1 to 1.2%, according to Bloomberg and Reuters polls. Second-quarter GDP was 7.9% higher than the previous year, compared to 18.3% year-on-year growth in the first quarter. Strong growth in the first quarter reflected a halt in economic activity in early 2020 after the Covid-19 pandemic erupted in central China and forced the government to impose a nationwide lockdown .

The SNB data release comes at a tense time for Chinese economic planners as they attempt to balance financial stability and growth.

Five other articles in the news

1. The decline in Morgan Stanley trade is offset by transactions and unity of wealth The Bank of Wall Street became the latest U.S. lender to report that higher investment banking fees helped offset some of the trading slowdown as it posted higher income and profits for the second quarter.

  • More banking news: Wells Fargo, Citigroup and JPMorgan together closed more than 250 branches in the first half of the year, as U.S. banks are betting that much of the foot traffic that went digital during closures will never return.

2. US regulator criticized for delays in delisting Chinese stocks Pressure is mounting on the U.S. Securities and Exchange Commission to finalize regulations to deregister Chinese companies that fail to comply with U.S. audit rules, after lawmakers found the agency may not start application before 2025 at the earliest.

3. Israel’s Candiru sold spyware to states The cyber war group militarized vulnerabilities in Microsoft and Google products, allowing governments to hack more than 100 journalists, activists and political dissidents around the world, according to a new study.

4. Democrats are considering a border carbon tax U.S. lawmakers are making plans for a tax on imports from carbon-polluting countries to help pay for a set of $ 3.5 billion in new government spending for everything from universal child care to expansion public health benefits.

  • Climate policy in the world: The US border carbon tax plan follows the EU’s attempt to move towards zero emissions – the importance of which has been underscored as Germany reeling from deadly climate change floods.

5. South Africans reeling from riots In recent days, South Africa has come closer to social breakdown than at any time since the end of apartheid almost three decades ago. The riots, sparked by the arrest last week of former President Jacob Zuma, have left more than 70 dead and devastated Africa’s most industrialized economy.

Plumes of smoke seen outside a shopping center in Durban as a barricade burns © Andre Swart / AP

Coronavirus digest

  • Car manufacturers can expect a strong recovery in chip supply in the coming weeks, Taiwan Semiconductor Manufacturing Company said, noting that a global shortage may have passed its most crippling stage.

  • Malaysia reported 13,215 new cases of Covid-19 yesterday, reaching a new record for the third day in a row as the Delta variant fuels the spread of disease.

  • The Covid-19 resulted in falls childhood vaccinations, warned the WHO.

  • As the UK and other countries are facing a new wave of Covid infections, scientists are rushing to find out what is causing the Covid long. (FT, Straits Times)

Follow the latest news with our coronavirus live blog and Register now for our Coronavirus Business Update newsletter for more information on Covid-19.

The day to come

Bank of Japan monetary policy decision Japan’s central bank should maintain monetary policy unchanged today, and will focus on further efforts to tackle climate change. (Bloomberg)

Annual session of the Unesco World Heritage Committee The Unesco World Heritage Committee is meeting today in Fuzhou, China, to consider requests for addition to the World Heritage List.

End of the subscription period for the IPO of Zomato Zomato’s offer, which ends today, includes a new issue of shares worth Rs 90 billion ($ 1.2 billion), priced at Rs 72 to 76 per share. As one of India’s hottest tech, the Indian food delivery group is expected to lead a wave of IPOs in the country this year.

What else do we read

A private members’ club opens to the public Twenty-six years and more than 119,000 members after launching Soho House, the company has 30 locations in 12 countries and earned a valuation of $ 2.8 billion on Wednesday, never making a profit. The company is hoping that the $ 420 million raised in Thursday’s initial public offering will allow it to repay its debt and continue a meteoric expansion.

Soaring transatlantic inflation Accelerating price growth has rekindled economists’ concerns about the risk of overheating, putting pressure on policymakers to consider a faster withdrawal from their unprecedented stimulus policies during a pandemic. Our economic teams in the United States and Europe explain what is driving the price increases.

  • In addition, my colleague Robert Armstrong chews the final comments of Jay Powell, Chairman of the Federal Reserve, in the latest edition of his Unhedged newsletter. Register now here.

Line graph of the annual% change in consumer prices showing that the rate of price growth is accelerating

BJP turns to coercion to limit India’s population growth India has made strides in promoting smaller families as access to education has expanded and rapid growth has lifted millions of people out of poverty. But experts say Uttar Pradesh’s plan to cut benefits for people with more than two children will hurt the country’s poorest.

What survivors of the Utoya massacre know 10 years later “22 Juli” has become as infamous as 9/11 in the United States. Due to the close-knit nature of Norway, one newspaper estimated that one in four Norwegians knew someone affected. Here’s how the bombings, the deadliest violence in Norway since World War II, changed their lives.

The former plastic surgeon behind ‘stablecoin’ Attached As the world’s largest cryptocurrency linked to other assets, Tether is a lubricant for investors entering and exiting a more volatile cryptocurrency, but it is also deeply controversial. At its center is a man named Giancarlo Devasini.

Beauty

Five ecological sunscreens How to limit your plastic consumption? Take sunscreen, 72% of which contains microplastics. And it does not include the packaging. Here’s how to enjoy the sun, without a hint of plastic.

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