![Jerome Powell, Fed chairman, left, and David Rubenstein, co-founder of Carlyle, today](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385723633_17210663506140_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf-0Jyi0jPPD6Zx1hiwTPhlc.jpeg?imwidth=680)
Fed signals move towards cutting interest rates
![Jerome Powell, Fed chairman, left, and David Rubenstein, co-founder of Carlyle, today](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385723633_17210663506140_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf-0Jyi0jPPD6Zx1hiwTPhlc.jpeg?imwidth=680)
America’s central bank is moving closer to cutting interest rates following three straight months of falling price pressures, its chairman has signalled.
Jerome Powell said policymakers had greater confidence that inflation was moving back to its 2pc target, adding that officials would not wait for price rises to return to that level before cutting borrowing costs.
While Mr Powell would not be drawn on the timing of rate cuts, he said the economy was now in “much better balance”.
Speaking at the Economic Club of Washington, Mr Powell said: “Our test for quite some time has been that we wanted to have greater confidence that inflation was moving sustainably down towards our 2pc target. And what increases that confidence in that, is more good inflation data. And lately, here we have been getting some of that.”
The Fed’s preferred measure of inflation eased back in June, and currently stands at 2.6pc.
Mr Powell said the last three inflation readings gave the Federal Open Market Committee that sets interest rates more confidence that the economy was cooling down, with signs that America’s jobs market “has indeed cooled off”.
The Fed is tasked with both controlling inflation and supporting maximum employment.
Mr Powell said that after a prolonged period of focusing on taming inflation by taking rates to a 23-year high of 5.25pc to 5.5pc, policymakers were now looking more at supporting the economy.
”We’re going to be looking at both mandates,” he said. “They’re in much better balance. And that means that if we were to see an unexpected weakening in the labour market, then that might also be a reason for a reaction by us.”
Mr Powell declined to comment when asked if the Fed was likely to cut rates by September, as investors are betting.
However, he said: “We’ve been very clear that you wouldn’t wait for inflation to get all the way down to 2pc [before cutting rates].”
Mr Powell also warned that “worrying” increases in US debt were “unsustainable” and would need to be tackled by either Donald Trump or Joe Biden following November’s election.
The independent Congressional Budget Office has warned that US borrowing was likely to remain close to 6pc of GDP for years to come.
Mr Powell said: “I am very worried, over time about the deficits that we’re running ... The path we’re on where we’re running large deficits at a time of full employment and healthy growth is not a sustainable one over time, and we really need to get to work on that.
“I would hope this is a top line issue for elected people ... I do talk to quite a few elected officials in Congress, and I think there is a rising sense that it’s time to do something about that.”
Read the latest updates below.
Markets ‘betting on Trump being the victor’ says analyst
A more-certain victory for Donald Trump is being strongly felt in the markets today.
Ben Laidler, head of equity strategy at Bradesco BBI, said:
It’s nearly four months to go [until the election] and things can change, but today the markets are betting on Trump being the victor. [Trump Media & Technology Group] is the tip of the spear and the most sensitive to a Trump victory.
Trump Media & Technology Group is currently up 36pc, although it has been as high as 50pc up today.
Shares of electric vehicle maker Tesla jumped 5.2pc after billionaire chief Elon Musk publicly endorsed Trump following the shooting.
Crypto stocks soared, tracking a 10pc rally in bitcoin to a two-week high. Trump has presented himself as a champion of cryptocurrency.
Crypto exchange Coinbase Global and bitcoin miners Riot Platforms and Marathon Digital jumped over 10pc each.
Long-dated US bond yields rose on expectations that Trump policies would drive up government debt and stoke inflation, while the benchmark S&P 500 rose, nearing another record high.
That’s it for the blog today. Chris Price will be back in the morning to cover the latest business and markets news.
Powell says inflation figures in ‘a pretty good place’
Federal Reserve chairman Jerome Powell has said that the three inflation readings over the second quarter of this year showed “more progress” was being made on bringing the pace of price increases back to the Fed’s target.
“In the second quarter, actually, we did make some more progress,” Powell said at an event at the Economic Club of Washington. “We’ve had three better readings, and if you average them, that’s a pretty good place.”
Powell’s remarks are likely his last until his press conference following the Fed’s July 30-31 meeting.
Fed governors Christopher Waller and Adriana Kugler as well as other top Fed officials speak this week, comments that may further frame the central bank’s thinking at a key moment in their deliberations.
Inflation is edging closer to the central bank’s 2pc target, and policymakers are increasingly concerned about slowing the economy too much and causing the unemployment rate to rise.
Given what policymakers believe to be an increasingly balanced set of risks, they may well use their final comments ahead of this month’s meeting to either flag that rate cuts are imminent or explain why recent data still doesn’t warrant a turn to easier monetary policy.
The betting among investors has tilted strongly towards the Fed starting rate cuts in September. Changes to the policy statement in July could provide a strong signal of that by updating how inflation is described and assessing how recent data has added to policymakers’ confidence that the pandemic-era outbreak of inflation has subsided.
![Jerome Powell speaking at an Economic Club of Washington event today](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385723696_17210633437760_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf-0Jyi0jPPD6Zx1hiwTPhlc.jpeg?imwidth=350)
Fed’s Powell ‘grateful’ injuries to Trump were not more serious
Federal Reserve Chair Jerome Powell on Monday said he was grateful the injuries that former President Donald Trump suffered during an assassination attempt over the weekend were not more serious and that the event marked a “sad day for our country.”
“Political violence has no place in our society, and I condemn it in the strongest terms. I know we all do,” Powell said at an event at the Economic Club of Washington.
“I’m grateful that the injuries to the former president were not more serious.”
Mr Trump and Mr Powell have a strained relationship, one that will get closer attention should Trump regain the White House.
Mr Powell was first appointed to the Fed Board of Governors by former President Barack Obama, but it was Donald Trump who picked him to lead the central bank, a post that Mr Powell assumed in early 2018.
President Trump turned against him soon after, railing against the interest rate hikes that the Fed delivered during Mr Powell’s first year at the helm.
MR Powell’s current term as chair expires in 2026, and Trump has said he would not reappoint him. Mr Trump also has said he believed the Fed chief would lower interest rates to help President Joe Biden’s prospects for re-election.
![Jerome Powell, chairman of the US Federal Reserve, left, and David Rubenstein, co-founder of Carlyle, during an Economic Club of Washington event today](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385723633_17210628757080_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf-0Jyi0jPPD6Zx1hiwTPhlc.jpeg?imwidth=350)
European shares fall
European shares drifted lower on Monday after dour updates from luxury companies weighed on the sector. Meanwhile sentiment remained fragile following the assassination attempt on US presidential candidate Donald Trump over the weekend.
The continent-wide Stoxx 600 closed 1pc lower.
Leading losses were shares in Burberry, down 16.1pc after the British luxury group warned on profits, scrapped its dividend and replaced its boss Jonathan Akeroyd after two years with former Coach boss Joshua Schulman.
Swatch shed 9.8pc as the world’s biggest watchmaker reported a steep fall in first-half sales and earnings.
European renewable energy companies like Orsted, RWE, Nordex, Vestas and Siemens Energy dropped between 3.4pc and 6.4pc, with traders linking the weakness to increased chances of a US election win for Donald Trump.
Mr Trump, who has stated that he would halt offshore wind development if re-elected, cements his hold on the Republican Party at its 2024 convention this week, having survived an assassination attempt and navigated numerous legal tangles on the road to the party’s presidential nomination.
We’re not a c----- employer, insists Wetherspoon boss after attack by union chief
The boss of JD Wetherspoon has insisted the pub chain is not a “c----- employer” as he hit back at allegations made by the head of the Trades Union Congress (TUC) in an interview with the Telegraph. Daniel Woolfson reports:
Sir Tim Martin, founder and chairman of the pub chain, issued a stock market update on Monday that accused Paul Nowak, the TUC general secretary, of making comments with “absolutely no basis in fact”.
The rebuttal came after Mr Nowak said in a Telegraph interview over the weekend that “c----- employers” would have to “pay the price” amid a planned overhaul of workers’ rights by the new Labour Government.
He named “the likes of Amazon, Sports Direct, P&O Ferries and Wetherspoons” as “anti-union employers who have built their business models on low-paid, insecure employment”.
Sir Tim said: “If people in powerful positions, such as Paul Nowak, make serious allegations, which have absolutely no basis in fact, it will deter business investment in the UK.
“Investment is a primary generator of growth which, as the Chancellor of the Exchequer has recently said, is the number one objective of the Government.”
![Tim Martin the boss of pub giant Wetherspoon](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000280916565_17210614955980_trans_NvBQzQNjv4BqA7N2CxnJWnYI3tCbVBgu9T0aesusvN1TE7a0ddd_esI.jpeg?imwidth=350)
Britain will remain dependent on gas for years, warns National Grid
Britain will be forced to rely on natural gas for years to come, in a blow to Sir Keir Starmer’s green energy ambitions, National Grid has said. Industry editor Matt Oliver reports:
Demand for gas is now expected to be between 642 and 724 terawatt hours in 2030, according to the National Grid Electricity System Operator (ESO).
That is at least a fifth higher than the previous minimum and at the top end of what was predicted just a year ago.
The minimum predicted demand for gas in 2035 has also shifted upwards, from 331 terawatt hours to at least 433 terawatt hours.
Today, the country consumes the annual equivalent of 872 terawatt hours in natural gas.
Under three potential “pathways” to net zero carbon emissions in 2050, the ESO also predicts Britain will keep burning “unabated” gas for power – that is, without any form of mitigation such as carbon capture – until at least 2036.
Even after power sources such as wind and solar are generating the lion’s share of electricity, it will still be necessary to keep some gas-fired capacity in reserve to ensure the lights stay on, the ESO added.
Retailers under highest stress since Covid, research suggests
Stress across retailers and consumer business has hit its highest level since the Covid-19 pandemic hit in 2020, according to research.
Law firm Weil Gotshal & Manges found that weaker spending power and issues in supply chains have weighed on the sector in recent months.
The Weil European Distress Index found that retail and consumer goods firms reported particularly high levels of distress in the second quarter of 2024.
Companies said that tensions in the Middle East exacerbated supply chain and cost issues, as disruption to freight and container journeys increased costs and caused delays.
The real estate and healthcare sectors also reported high levels of distress over the period.
Corporate distress dropped in the UK slightly, continuing a trend of moderation over the past 12 months on the back of easing inflation.
Nevertheless, distress levels in the UK remain above the long-term average due to weaker investment and pressure on profitability.
US stocks rise on hopes Trump could cut company taxes
Wall Street stocks have pushed higher this afternoon at as traders weighed the impact of the failed assassination attempt on Donald Trump..
The blue-chip Dow and broader S&P 500 index set fresh all-time highs as investors got their first chance to trade following the weekend shooting attack that left Trump with only superficial injuries.
While the odds of Mr Trump beating President Joe Biden had been rising in recent weeks, they got an extra lift from the shooting.
Observers said a Trump victory could see lower corporate taxes - a boost for companies’ bottom lines.
The S&P 500 is up 0.6pc, the Dow Jones is up 0.8pc and the Nasdaq is up 0.7pc.
![A trader at work on the floor of the New York Stock Exchange today](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385716099_17210598158170_trans_NvBQzQNjv4BqB9TNGSg3mw1zIYGf6IZil0rXzFG7ulrX9HIbbjdplQs.jpeg?imwidth=350)
Footsie closes in the red
The FTSE 100 closed down 0.9pc today. The top riser was industrial equipment rental company Ashtead, up 2.5pc, followed by investment firm 3i, up 1.7pc. The biggest faller was Burberry, down 16pc, followed by Sports Direct owner Frasers, down 3.6pc.
Meanwhile, the mid-cap FTSE 250 was flat. The top riser was civil engineering group Kier, up 4.1pc, followed by gambling software company Playtech, up 3.6pc. The biggest faller was Ocado, down 10.4pc, followed by biotechnology company PureTech, down 3.8pv.
Likely Trump win could discourage rate cutting, says New York research house
An increased likelihood of a Trump victory could discourage the US Federal Reserve from cutting interest rates, according to Michael Purves, chief executive of Tallbacken Capital Advisors. He said:
Trump’s stated policies are - at least now - more inflationary than Biden’s and we think the Fed will want to accumulate as much dry powder as possible.
Markets, however, are more currently confident of US interest rate cuts today compared with Friday.
EU says debt-ridden France needs ‘fiscal adjustment’
France and other European Union countries with high debt levels “need a fiscal adjustment”, the European economy commissioner, Paolo Gentiloni said said, ahead of a meeting of the bloc’s finance ministers.
“It’s a need and it is something quite possible,” Mr Gentiloni said, as the ministers were about to hold two days of talks on EU excessive deficit procedures against seven countries, including France.
France is under pressure from Brussels to get its finances back within EU rules, which demand a deficit below three percent of a country’s GDP, and public debt under 60 percent.
Currently France’s deficit stands at 5.5pc of GDP, and its debt at 110pc of GDP.
Prospects of Paris working to bring those levels down have been thrown into uncertainty by the results of a snap election called by President Emmanuel Macron that was won by a Left-wing coalition demanding much higher public spending.
The commission said last month it would propose an “excessive deficit procedure” be launched this month against France and the six other countries with deficits above three percent: Belgium, Italy, Hungary, Malta, Poland and Slovakia.
Romania is already under such a procedure.
The procedures would require the countries to take corrective measures to come back under the rules.
New plans for Liverpool waterfront regeneration submitted by developers
Plans to regenerate parts of Liverpool’s historic northern waterfront have been submitted by developers.
Central Docks, a 60-hectare industrial brownfield site spanning 2.3km of dockland north of the city centre, will be open to development by owners Peel Waters, under the plans submitted to Liverpool City Council on Monday.
It is the latest area to be focused on under the 30-year, £5bn Liverpool Waters scheme, first approved more than a decade ago, which has seen development in other areas of the city’s docks.
Peel say the latest plan will help shape the future of the area’s dockland, creating new neighbourhoods to live, work and visit.
Liverpool City Council is also set to receive a £55m investment boost from Homes England to accelerate the regeneration of Central Docks, the largest neighbourhood within Liverpool Waters and the city’s largest brownfield site.
Plans for the site include the establishment of a public park and vital infrastructure to accommodate approximately 2,350 new homes.
Everton Football Club’s new 52,000 seat riverside stadium, currently being built, is just north of the new development site and is due for completion later this year.
![Construction of Everton Football Club's stadium, August 2023](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000346569536_17210576370220_trans_NvBQzQNjv4BqnfI5t5O8yFDSBEX-IEZBip_6jL0mPI4ehIb6tGohVTw.jpeg?imwidth=350)
Around 130 jobs to go in Northern Ireland
A major manufacturing business in Northern Ireland looks set to cut around 130 jobs in a blow to workers in Omagh and Dungannon.
The Belfast Telegraph reported that US-owned Terex Materials Processing is launching a consultation with up to 150 workers after a Covid-era boom slowed.
The industrial manufacturer told the paper:
As Terex continues to navigate market fluctuations, we have observed that the extraordinary surge in demand and backlog following the Covid-19 pandemic, which resulted in outstanding performance in 2023, has now stabilised.
This has led to reduced demand from key global markets. As a consequence, Terex has carefully reassessed its operational needs to align with the current market conditions and ensure viability and competitiveness of the business going forward.
The Telegraph has approached Terex for comment.
Euro zone yields nudge lower as markets assess Trump shooting
Euro zone government bond yields dipped slightly on Monday, as investors tried to digest the impact of the attempted assassination of US presidential candidate Donald Trump and awaited a European Central Bank meeting.
The German 10-year bond yield, the benchmark for the wider euro zone, has fallen today to 2.48pc compared with 2.50pc yesterday.
The yield on French government 10-year bonds fell to 3.12pc compared with 3.15pc yesterday.
The main event of the week for European bonds is Thursday’s ECB meeting.
The central bank cut rates in June for the for the first time five years, though is not expected to change policy this week.
Burberry hands new boss £9.2m ‘golden hello’ to reverse its decline
Burberry has handed its new chief executive a “golden hello” worth as much as £9.2m to tackle a fashion crisis that has sent its shares plunging to their lowest level in 14 years. Hannah Boland reports:
The label suspended its dividend as it issued its third profit warning in months and parted ways with Jonathan Akeroyd after little over two years.
Chairman Gerry Murphy conceded that the performance was “disappointing” as he called on American executive Joshua Schulman to turn around the British icon.
Burberry is handing him a pay package worth as much as £9.2m, including a £1.2m salary, bonuses and a “recruitment share award” worth £3.6m. The welcome is even more generous than the £6m “golden hello” handed to Mr Akeroyd.
![Joshua Schulman](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385682001_17210560559220_trans_NvBQzQNjv4Bqwg7Mh4lqmzbK-ZLqRae1p-Kf5RZFKTk7q7D8mR0E6aw.jpeg?imwidth=350)
Clean energy and Chinese stocks drop in the US
Clean energy stocks listed in the US slipped this afternoon as Donald Trump has said he would reverse many of the Biden administration’s signature climate policies, including tax incentives, if he wins the election.
Invesco Solar ETF fell 5.4pc and iShares Global Clean Energy ETF fell 3.6pc.
US-listed Chinese firms dropped on the prospects a second Trump presidency fueling trade tensions between Beijing and the United States.
US voters view Mr Trump as the better candidate for the economy, according to Reuters/Ipsos polls, even as Joe Biden’s White House seeks to benefit from a solid economy with inflation slowing and low unemployment.
Mark Malek, chief investment officer of Siebert Financial Corp, said:
In the absence of any real policy proclamations from Trump, traders are finding themselves having to speculate ...
A second Trump presidency would mean expansionary economic stimulus in general, lower income taxes, less regulation, and increased tariffs.
Apple hits record high after Morgan Stanley endorsement
Apple jumped 1.9pc this afternoon, hitting another record high after being named a top pick by banking giant Morgan Stanley.
Bloomberg reported that Morgan Stanley analyst Erik Woodring boosted his price target for the California tech business to $273. They are currently $235.
Mr Woodring is predicting that Apple will ship nearly 500m iPhones in the next two years, hgiher than its record upgrade cycle to 2021-22.
![Employees inside a new Apple store ahead of its opening in Kuala Lumpur, Malaysia, last month](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000382837897_17210555105980_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf-0Jyi0jPPD6Zx1hiwTPhlc.jpeg?imwidth=350)
Trump-related stocks soar
Donald Trump-linked stocks soared this afternoon after the weekend’s failed assasination attempt.
Trump Media & Technology Group, software firm Phunware and video-sharing platform Rumble jumping between 6pc and 32pc.
Crypto stocks also leapt as bitcoin rose to a two-week high. Coinbase Global, Marathon Digital holdings and Riot Platforms advanced between 7pc and 11pc. Mr Trump is seen as a champion of cryptocurrency.
Other stocks that are expected to benefit from Mr Trump’s second term also climbed, with gunmaker Smith & Wesson and prison operator GEO Group gaining 10pc each.
Health insurers including UnitedHealth also jumped on a likely Trump win.
The small-cap Russell 2000 gained 1.6pc to its highest since January 2022, in continued evidence of broad-based market gains.
![A flag displaying Donald Trump hangs over a Highway 24 overpass in Lafayette, California, yesterday](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385660203_17210551463640_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf0Rf_Wk3V23H2268P_XkPxc.jpeg?imwidth=350)
Dow Jones hits record high amid Trump election hopes
The Dow Jones Industrial Average hit a record high in Wall Street’s upbeat trading this afternoon, on a greater chance of presidential candidate Donald Trump winning a second term after surviving an assassination attempt.
Hopes of an interest-rate cut also aided sentiment.
Under Mr Trump, markets expect a hawkish trade policy and looser regulations over issues from climate change to cryptocurrency.
Online betting site PredictIt showed bets of an election win for Trump at 66 cents, up from Friday’s 60 cents, with a victory for Joe Biden at 26 cents.
Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said:
In a Republican administration, you’ll see a lower tax policy, lower regulatory policy ... that’s typically good for stocks. We’re seeing some of that in terms of forward looking expectations from investors at this point.
The Dow is currently up 0.55pc at 40,222.22.
Beleagured Boeing wins major order for 737 Max planes
Boeing has done a deal to sell 35 of its 737 Max aeroplanes to Aviation Capital Group in a boost for the troubled aircraft manufacturer.
Aviation Capital Group owns over 480 aeroplanes, which it currently leases to around 90 airlines around the world.
Boeing has been facing mounting losses after the mid-flight blowout of a plug door on a Boeing 737 Max plane in Januar, which sparked safety concerns and attracted massive regulator scrutiny.
![A Boeing 737 MAX aircraft being assembled at the company's Renton factory in Washington state](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000384841126_17210542038520_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf0Rf_Wk3V23H2268P_XkPxc.jpeg?imwidth=350)
Ocado should ‘seriously consider’ delisting, analysts warn
Ocado must “seriously consider” its options, including putting itself up for sale or launching a major cost-cutting drive, analysts have said, as the online grocer prepares to publish interim results this week.
Our retail editor Hannah Boland has the latest:
Analysts at Bernstein, who have been bullish on Ocado stock for the past two years, fired a warning shot over the company, saying they now expected it to need “significant additional capital” of as much as £1bn.
The comments sent shares plunging around 12.5pc, worsening a rout which has seen Ocado’s value fall by 55pc since the start of the year.
The London-listed technology company makes revenue from selling its robot warehouse kit to retailers around the world. It has recently been hit by grocers delaying and pausing partnerships, amid a post-pandemic dip in demand for online deliveries.
Bernstein’s William Woods said Ocado now needed to “seriously consider” its options in light of the weaker demand and need for cash. This included looking into whether it should quit the public markets. The analysts said a grocery buyout would make the most sense in terms of a take-private deal.
A second option would be to “seriously cut costs”, allowing it to avoid an immediate cash crunch, Mr Woods said.
The analyst note comes as Ocado prepares to publish its interim results on Tuesday. It has already shed almost 1,000 jobs over the past year as it battles to reverse heavy losses.
I will head off for the day now and pass the reins of this blog over to Alex Singleton, who will keep posting the latest updates.
![Bernstein has downgraded its rating of Ocado's stock](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000384182435_17210539503430_trans_NvBQzQNjv4BqZI6VjuUxoLhNL38wUsUiLTVCUSv1Ol6PpMMCvCQoB0I.jpeg?imwidth=350)
Boeing to scale back presence at Farnborough air show
Boeing plans a “reduced” showcase of commercial airplanes at the upcoming Farnborough air show while it focuses on safety and quality control, the company announced Monday.
The embattled aviation giant will still have multiple displays and public presentations at the airshow next week, a key event in the aviation calendar. But it signalled it will be different from past appearances.
Brendan Nelson, president of Boeing Global, said:
We are concentrated on implementing our comprehensive safety and quality plan and meeting our customer commitments.
With these priorities in mind, we have reduced our commercial airplanes display and flight demonstrations at the show, and will focus on new technology, sustainability, security and services solutions.
Mr Nelson added that “the best way to build trust is through high-quality performance in our factories, one airplane at a time.”
![A range of passenger and military aircraft on display at a past Farnborough air show](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000169463351_17210532184200_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf0Rf_Wk3V23H2268P_XkPxc.jpeg?imwidth=350)
S&P 500 hits fresh record amid bets on Trump win
The S&P 500 is on track for its 38th record close of the year after the assassination attempt against Donald Trump boosted bets on him winning the US presidential election.
Trump Media & and Technology Group was last up 35.3pc, while gun makers, private prison companies and health insurer’s were also higher.
The 30-year US Treasury bond yield rose above the two-year yield for the first time since January as traders bet that the Republican candidate would pursue a more expansive fiscal policy.
John Stoltzfus of Oppenheimer Asset Management said:
We were shocked by the attempt on former President Trump’s life, but suspect that markets will digest the news quickly and with little fanfare.
Shocking events tend not to deter investors, who we expect will remain focused on economic and earnings results.
Wall Street opens higher amid bets on Trump presidency
US stock markets have opened higher as traders increase bets on Donald Trump winning the US presidential election.
The Dow Jones Industrial Average gained 0.7pc to 40,261.81 as a win by the Republican candidate is expected to lead to looser fiscal policies, benefiting equities.
The S&P 500 gained 0.4pc to 5,639.94 while the tech-heavy Nasdaq Composite was up 0.6pc to 18,403.05.
BlackRock’s assets under management hit record high
The world’s largest money manager revealed its assets under management hit a fresh record high during the second quarter of the year.
BlackRock added $51bn of client cash to its long-term investment funds in the three months to June, taking its assets to $10.6 trillion (£8.2 trillion).
Chief executive Larry Fink said: “Organic growth was driven by private markets, retail active fixed income, and surging flows into our ETFs, which had their best start to a year on record.”
Money managers are beginning to rebound after the volatility caused by rising interest rates and turmoil in bond markets over the past two years.
![BlackRock chief executive and chairman Larry Fink](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385700600_17210495342530_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf0Rf_Wk3V23H2268P_XkPxc.jpeg?imwidth=350)
Jaguar guts petrol car line-up in shift to electric models
Jaguar will have just one combustion engine car in production by the end of this year as the British luxury brand axes almost its entire line-up ahead of a switch to electric-only models.
Our industry editor Matt Oliver has the details:
The marque stopped making its XE, XF and F-Type cars at Castle Bromwich in May and will seek to stop producing the hybrid E-Pace in Austria – along with the electric I-Pace – by the end of December.
It will leave only the F-Pace SUV – of which petrol, diesel and hybrid variants are sold – in production at Solihull, before Jaguar begins a new run of all-electric cars going on sale from next year.
Adrian Mardell, chief executive of parent company Jaguar Land Rover (JLR), confirmed the other cars would be “eliminated” at a recent investor day, telling the audience: “They’re all close to zero-profitability products.”
Read how the marque is set to launch a battery-powered grand tourer next year.
Cocoa prices fall as harvest hopes
Cocoa prices have declined for a second day as good weather in some key growing areas in West Africa raised hopes for a good harvest next season.
Futures fell as much as 4.1pc in the biggest drop since July 1.
However, prices have soared around 90pc so far this year as poor harvests have left the world facing a huge shortage - pushing up the cost of chocolate for consumers.
Michael McDougall, managing director at Paragon Global Markets, said: “There is some pressure on prices due to good weather.”
![Cocoa prices have surged this year](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000384971745_17210481572690_trans_NvBQzQNjv4BqFmZwAHfbzbyjsBBHX-5JhxNKxCy7izpjJ_1dQZo0FM8.jpeg?imwidth=350)
Trump’s wealth to surge by $1.7bn after assassination attempt
Shares in Donald Trump’s social media company have soared after his attempted assassination, adding $1.7bn to the former president’s wealth, writes technology editor James Titcomb.
Trump Media and Technology, the parent company of Truth Social, rose 47pc in pre-market trading in New York. Mr Trump owns around 60pc of the company.
The share price rise comes after the attempt on Mr Trump’s life in Pennsylvania on Saturday.
Truth Social was set up after Mr Trump was banned from Twitter in 2022 and works similarly to the social network.
He initially served as the company’s chairman but stepped down as a director in 2022.
The former president typically posts on it several times a day and the service would be likely to face an influx of users if he returns to the White House after November’s election.
Shares in TMTG are seen as something of a proxy for Mr Trump’s election chances, which are believed to have been bolstered by the attempted assassination.
It also has a sizeable base of Trump-supporting retail shareholders who have seen investing as a way of supporting the former president.
TMTG, which uses the stock ticker DJT, went public on Wall Street in March. Shares have declined since then, even after Monday’s spike.
Mr Trump owns 114.8m shares of the company, worth $5.2bn at Monday’s share price. The stake makes up a significant part, if not the majority, of his net wealth. Lock-up provisions prevent him from selling any shares until September.
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Pound falls ahead of inflation figures
The pound has slipped against the dollar as markets were cautious about a Trump presidency and tempered expectations for an August rate cut from the Bank of England.
Traders are now awaiting inflation data on Wednesday for more clues on interest rate policy.
The pound was last down 0.2pc against the dollar at $1.297. It rose 1.4pc last week in what was its biggest one-week jump since early March after figures showed strong economic growth in May.
Meanwhile, Bank of England chief economist Huw Pill said it was still an “open question” on the timing of the first interest rate cut.
Money market imply there is about a 50pc chance that the Bank of England will cut its bank rate by a quarter point next month.
Rabobank senior FX strategist Jane Foley said:
There’s a question mark over whether the Bank of England can cut rates in August.
Inflation data could be seen by the market as the decisive factor as to whether they do or don’t.
Gas prices fall as China’s economy slows
Gas prices have fallen amid signs of weak demand from China.
Dutch front-month futures, the European benchmark, have fallen as much as 2pc today to less than €32 per megawatt hour after official figures showed the world’s second largest-economy grew by less than expected in the second quarter of the year.
It has raised the prospect of weaker demand from China just as European storage sites reach 80pc capacity, which is higher than usual for the time of year.
However, temperatures are forecast to rise later this week, potentially increasing demand for air conditioning.
Oil prices waver after Trump assassination attempt
Oil prices have swung between gains and losses after the assassination attempt on Donald Trump.
Brent crude was last down 0.2pc to below $85 a barrel, while West Texas Intermediate was just above $82.
Poor economic growth figures from China also added to market jitters.
China’s appetite for raw materials including crude has shrunk over the first six months of the year, raising concerns over demand.
The nation’s GDP growth slid to the smallest in five quarters.
Goldman Sachs more than doubles profits
Goldman Sachs’ profit more than doubled in the second quarter as the investment bank was bolstered by higher fees from debt underwriting and a strong performance in its fixed-income trading business.
Earnings were $3.04bn (£2.34bn), or $8.62 per share, for the three months ended June 30, compared with $1.22bn (£940m), or $3.08 per share, a year earlier, the bank said.
Chief executive David Solomon said: “We are pleased with our solid second quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management.”
The bank’s earnings in the year-ago quarter were hit by writedowns related to GreenSky, its former fintech business that Goldman has since sold.
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Bots push conspiracy theory that Trump shooting was staged
Bot accounts promoting the theory that Donald Trump’s assassination attempt was staged have helped to generate almost 600 million views for a wave of misinformation.
Our technology editor James Titcomb has the details:
The social media analysis company Cyabra found that 45pc of profiles on X, formerly known as Twitter, Facebook, Instagram and TikTok spreading the theory that the shooting was orchestrated by Mr Trump were fake accounts.
The hashtags #fakeassassination, #stagedshooting and #stagedbytrump were widely used across the four social networks, it said.
Cyabra said the #fakeassassination and #stagedshooting hashtags received 404,000 engagements, such as likes, comments and retweets, and may have been viewed up to 595 million times.
Read how many real users with large followings are often the biggest spreaders of misinformation.
![Nearly half the accounts promoting conspiracy theories about the assassination attempt are fake](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385679466_17210410410130_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf0Rf_Wk3V23H2268P_XkPxc.jpeg?imwidth=350)
Government stake in NatWest drops below 20pc
The taxpayer’s stake in NatWest has dropped below 20pc for the first time since the state-backed rescue of the lender in 2008.
The latest sale means that, under new listing rules, the Government will no longer be considered a related party to the bank.
The Government still had a 37.98pc stake in the bank as recently as December.
Chief executive Paul Thwaite said: “Returning NatWest Group to full private ownership remains a key ambition.
“We believe it is in the best interests of both the bank and all our shareholders.”
Wall Street poised for crypto stocks rally
Crypto stocks and prison operators were among the shares that jumped in premarket trading on Wall Street amid increasing bets that Donald Trump will win the presidential race this year.
Investors said trades betting on Trump’s victory will increase this week after he was shot in the ear during the rally in Pennsylvania. The former US president pumped his fist moments after the attack and his campaign said he was fine.
Shares of Trump Media & Technology Group (TMTG) soared 67pc. Trump owns a majority stake in the company, worth about $3.8bn as of June 25 according to LSEG data, and it is the parent of social media platform Truth Social.
TMTG stock has surged 75pc this year, driven by retail traders betting on a Trump victory at the November 5 rematch with President Joe Biden, who is a Democrat.
Crypto stocks also got a boost, tracking bitcoin’s jump to a two-week high after the attack on Trump, who has presented himself as a champion of cryptocurrency.
Crypto exchange Coinbase, and bitcoin miners Riot Platforms and Marathon Digital added between 6pc and 7pc.
Dan Coatsworth, investment analyst at AJ Bell, said: “Trump is seen to be pro-crypto and the theory that he is now in a stronger position in the race to the White House has fired up traders looking for assets to benefit if he gets back into power.”
The broader US market was poised to open higher. In premarket trading, the Dow Jones Industrial Average was up 0.5pc, the S&P 500 had gained 0.4pc and the Nasdaq 100 was up 0.5pc.
Swatch plunges amid weakening demand from China
Swatch Group shares suffered their sharpest slump in four years after it revealed a steep drop in sales and profits amid weak demand in China.
The world’s biggest watchmaker, whose brands include Omega, Blancpain and jeweller Harry Winston, reported a 70pc drop in operating profit and 14pc drop in sales for the first six months of the year.
Swatch Group shares fell as much as 10pc in early Zurich trading, the most since March 2020.
The slowdown was led by China, which has just published official data showing its economy grew much slower than expected in the second quarter.
Swatch Group chief executive Nick Hayek said he expects the Chinese market, including Hong Kong and Macau, to remain challenging for the entire luxury goods industry until the end of the year.
He said: “The big impact is really mainly China.”
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Reeves warned by civil servants against bailing out Titanic shipbuilder
Rachel Reeves has been warned against rescuing the struggling shipyard that built the Titanic amid concerns that taxpayer cash risks ending up in the hands of Wall Street financiers.
Our economics editor Szu Ping Chan and industry editor Matt Oliver have the details:
The Chancellor is weighing up whether to approve support for Belfast-based Harland & Wolff, which otherwise risks being unable to deliver a £1.6bn Navy contract.
Harland, which operates four UK yards and employs more than 1,000 workers, is seeking a £200m loan guarantee that would allow it to restructure a crippling debt pile.
But in a fresh blow to the company, Whitehall sources confirmed Treasury officials have advised Ms Reeves that a bailout would be fraught with risk for the Government.
![Treasury officials have advised Rachel Reeves that a bailout would be fraught with risk](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000384860928_17210376556310_trans_NvBQzQNjv4Bq7dkR6LopDd9yc-6ZuL1FJzbb4wSjhIEuveSNOutYY-Y.jpeg?imwidth=350)
German recovery hopes dashed by slump in factory output
German industrial production fell at its sharpest pace since the depth of the pandemic downturn, official figures show in a blow to hopes of recovery in Europe’s largest economy.
Factory output dropped by 6.6pc in the year to May, which was its worst decline since September 2020, according to the Eurostat statistics agency.
Germany has been battling to recover from a downturn at the end of last year amid a property crisis which the boss of its largest landlord Vonovia said last week would be “bitter”.
It is not the only country struggling. French industrial production also fell heavily by 3.2pc, while the eurozone as a whole dropped 2.9pc.
Lily Millard, assistant economist at Capital Economics, said the outlook “remains poor”. She said:
The eurozone economy has turned a corner this year and we expect it to continue to expand in the coming quarters.
But this is largely due to a pick-up in services while the manufacturing sector will continue to struggle.
The EC measure of industrial new orders was extremely weak in June and the manufacturing new orders PMI remains in contractionary territory, partly due to the weakness of global demand.
Gold holds near record high after Trump shooting
Gold prices held close to their record highs after the attempted assassination of Donald Trump at the weekend.
Bullion has rallied about 17pc this year amid heightened political tensions around the world and indications that thew US Federal Reserve may be close to announcing interest rate cuts.
However, it declined 0.1pc to $2,409 amid increased bets on a Trump victory, which would likely lead to a boost for the dollar, making the yellow metal cheaper.
Nicholas Frappell, global head of institutional markets at ABC Refinery, said a Trump presidency could see “yields move down and equities take a hit - so gold would be favoured”.
He added: “The counter to that is the US dollar would probably strengthen - though not sure how quickly - as a response to tariffs.”
Bitcoin surges after Trump assassination attempt
The price of bitcoin has jumped by the most in three weeks amid increasing bets on Donald Trump becoming the next President of the United States.
The largest cryptocurrency rose as much as 4.9pc to more than $63,000 after the assassination attempt on the former president.
Betting markets have lowered the odds on a Trump victory, pushing the price of bitcoin higher.
Benjamin Celermajer, chief investment officer at Magnet Capital, said: “The Republican party has been pro-crypto and the increased probability of a Trump presidency is a positive which is boosting crypto markets.”
Tony Sycamore, market analyst at IG Australia, added that bitcoin “gained momentum” after the attempted assassination bolstered Mr Trump’s chances of reelection.
Ocado plunges as analysts downgrade stock
Online grocery retailer Ocado slumped by as much as 12pc to the bottom of the FTSE 250 after its stock was downgraded by analysts.
Researchers at Bernstein cut their rating for the stock to “underperform” amid slow demand for its automated warehouses.
It cut its price target for the stock from £10 to £2.60. Shares are currently worth £3.45.
Analyst William Woods said Ocado faces “increased and significant” liquidity challenges as it tries to refinance £1.4bn of debt.
He added “we think Ocado needs to seriously consider its options” including “is it right to be a public equity”.
China recovery at risk amid prospect of Trump presidency
China’s economic recovery is in danger after disappointing growth laid bare a reliance on exports that risks being derailed under a second Trump presidency, economists have warned.
Our economics editor Szu Ping Chan has the details:
The economy grew by 4.7pc in the second quarter compared with a year ago. This is less than the 5.1pc expected by analysts and follows growth of 5.3pc in the first quarter.
Growth was driven by a rise in goods exports, while retail sales growth slowed markedly over the period.
Wei Yao, an economist at Societe Generale, described the retail sales performance as “shocking”, with sales contracting on a monthly basis in June.
She warned that imbalances in the economy that have long dogged the world’s second largest economy were now becoming “dangerous”, with Donald Trump now the frontrunner to retake the White House.
The former president, who survived an assassination attempt over the weekend, has vowed to introduced even higher tariffs on a range of Chinese products if elected in November, warning that President Biden’s tax on Chinese electric vehicles did not go far enough.
“China’s eating our lunch right now. ... They have to do it on much more than electric vehicles,” he said in May.
Cut interest rates to protect living standards, says Bank of England official
The Bank of England should begin cutting interest rates to stop high borrowing costs impacting living standards, according to one of its policymakers.
Swati Dhingra said that the “direction of various indicators has been very promising” despite concerns from fellow officials over the strength of wage growth and services inflation.
She told the Rest is Money podcast:
Now is the time to start normalising (interest rates) so we can then finally stop squeezing living standards the way we have been to try and get inflation down.
We are weighing on living standards and that cost doesn’t need to be paid.
She suggested that “demand is too soft for inflation to rise sharply”.
Inflation fell back to the Bank of England’s 2pc target in May. The figures for June are published on Wednesday.
Ms Dhingra added: I don’t see some kind of consumption boom and if we’re going to start moderating from the very high level of interest rate that we are at now...it is going to take some time for that to happen, for us to moderate it as well as for that to then feed into the real economy.”
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FTSE 100 falls amid Trump shooting jitters
The FTSE 100 fell at the start of the week as traders were cautious after the attempted assassination of former US president Donald Trump.
Britain’s blue-chip stock index was down 0.6pc while the midcap FTSE 250 dropped 0.4pc as political uncertainty in the US sent jitters across global markets.
The dollar was last up 0.1pc against the pound to $1.298 as markets ramped up bets on a Trump presidency after he was shot in Pennsylvania.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Investors will be assessing how the attempted assassination of Trump will reverberate for the U.S. presidential campaign.
“(Investor confidence) is likely to be taking another knock.”
Shares of Burberry tanked 10.7pc to the bottom of the FTSE 100 after the company axed chief executive Jonathan Akeroyd and issued a profit warning. The British retailer named former Michael Kors boss Joshua Schulman as its new chief executive.
The downbeat performance weighed on the personal goods sector, which hit its lowest levels since June 2010, leading to broader declines in the benchmark index.
Meanwhile, shares of Robert Walters slumped 6pc after the recruiter reported a fall in quarterly net fees amid macroeconomic and political uncertainties.
Chinese company that sounds like ‘Trump wins big’ surges
A Chinese software maker whose name is a homophone for “Trump wins big” soared overnight after a failed assassination attempt on the former US president.
Images of a bloodied Donald Trump waving his fist after the gunman opened fire at a campaign rally in Pennsylvania have prompted bullish bets by Chinese traders that he will win November’s presidential election.
Shares of Wisesoft Co, whose Mandarin name “Chuan Da Zhi Sheng” sounds like “Trump wins big”, rose by the maximum daily 10pc limit in trading on the Shenzhen Stock Exchange.
Speculative trading behaviour based on so-called “meme stocks” are common in mainland China, with dramatic swings in prices often unrelated to underlying business prospects.
Wisesoft’s shares surged to their daily limit last month following President Joe Biden’s poor performance in his first presidential debate with Trump.
They also spiked in 2016 after Trump won the presidential election.
![A pro-Trump supporter holds a portrait of former US president in Huntington Beach, California](/https/www.telegraph.co.uk/content/dam/business/2024/07/15/TELEMMGLPICT000385627772_17210288823120_trans_NvBQzQNjv4BqpVlberWd9EgFPZtcLiMQf0Rf_Wk3V23H2268P_XkPxc.jpeg?imwidth=350)
Burberry shares plunge after profit warning
Burberry shares plunged by 11pc as trading began after it issued a profit warning and announced the immediate exit of its chief executive.
The luxury retailer revealed a 21pc slump in comparable store sales in its first quarter trading update, leaving revenues down 22pc to £458m.
It warned that its operating profit for the year would be “below current consensus” as it announced the departure of its chief executive Jonathan Akeroyd with immediate effect.
UK markets open lower after Trump assassination attempt
The FTSE 100 opened lower amid growing bets that Donald Trump will win the US presidential election after the attempt on his life at the weekend.
The UK’s blue-chip index was down 0.6pc to 8,206.63 while the midcap FTSE 250 dropped 0.3pc to 21,119.76.
Government borrowing costs rise after Trump shooting
UK borrowing costs moved higher following the attempted assassination of US presidential candidate Donald Trump over the weekend.
The yield on 10-year UK gilts - the return the government promises to pay buyers of its debt - rose more than three basis points to 4.11pc amid concerns a Trump presidency could be inflationary.
Euro zone government bond yields edged higher, with the European Central Bank meeting later this week. It is not expected to make any change to monetary policy.
German 10-year bond yield, the benchmark for the wider eurozone, was flat at 2.49pc. The two-year yield, which is more sensitive to shifts in expectations of ECB policy, was up down slightly to 2.8pc.
ING rates strategist Carsten Brzeski said:
With only marginal macro changes, there is no need for the ECB to change its policy stance on Thursday.
In fact, it seems as if a majority at the ECB is broadly fine with current market expectations of one to two more rate cuts this year.
Recruitment agency Robert Walters cuts jobs amid downturn
Robert Walters has cut more jobs as it revealed declining income and profits as it grapples with “macroeconomic turbulence and political uncertainty”.
The recruiment consultancy said it cut its headcount by 5pc during its second quarter, with its number of staff falling to 3,625, down 15pc on the same time last year.
Net fee income slumped 12pc to £84.8m on a constant currency basis during the three months to the end of June, while gross profit fell 14pc to £166.1m.
Chief executive Toby Fowlston said:
Fee income for the first half of 2024 continued to reflect the rebasing in market conditions relative to the post-pandemic peak.
This period of market adjustment is now longer in duration than previously expected, with macroeconomic turbulence and political uncertainty restraining client and candidate confidence in certain geographies.
He added: “Though current market conditions suggest a wider range of potential outcomes for the full-year than seen historically, I have high confidence in our experienced leadership team, which has successfully navigated many challenging market cycles.”
Burberry boss steps down amid ‘disappointing’ performance
Burberry chief executive Jonathan Akeroyd is stepping down immediately after the luxury retailer warned over a “disappointing” performance.
Our retail editor Hannah Boland has the latest:
Mr Akeroyd, who took over at the helm of Burberry two years ago with the aim of returning the fashion house to its British roots, is to be replaced by American national Joshua Schulman.
Burberry chairman Gerry Murphy said Mr Schulman’s experience in luxury and fashion would be “key to realising Burberry’s full potential”. He previously was chief executive of luxury bag brand Coach and shoe designer Jimmy Choo.
The announcement came as Burberry released a trading update for the three months to the end of June, warning that the market was “proving more challenging than expected”.
The luxury retailer said it was suspending its dividend, given it was on course to post an operating loss for the first half of its financial year.
Revenues were down 22pc on a recorded basis for the three months to June 29, with comparable store sales slipping across all its regions.
Burberry said it was taking “decisive action” to try stem the decline, including cutting costs to offset the impact of inflation and changes to its products to focus more on “a broader everyday luxury offer”.
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US bonds sold amid fears Trump would fuel inflation
US Treasury bonds were sold and the dollar strengthened as investors bet that the assassination attempt on Donald Trump made his victory more likely.
A holiday in Japan made for thin trading in Asia and action was confined to a modest rise in the dollar, gains for bitcoin and selling US bonds.
Benchmark 10-year Treasury yields were up almost five basis points in early trading.
Investors have tended to react to the prospect of a Trump win by pushing Treasury yields higher, in part on the assumption his economic policies would add to inflation and debt.
Proposals to levy tariffs on imports would push prices higher while eating into consumer spending power. Meanwhile, restrictions on immigration could tighten the labour market and put upward pressure on wages.
Rong Ren Goh, a portfolio manager at Eastspring Investments, said: “The market reaction function to a Trump presidency has been characterised by a stronger US dollar and a steepening of the US Treasuries curve, so we might observe some of that this coming week if his election odds are assessed to have further improved following this incident.”
Good morning
Thanks for joining me. The dollar is rising and US government borrowing costs are falling after the assassination attempt on Donald Trump.
The so-called “Trump trades” are being made amid growing bets that the former president will win the race for the White House this year.
5 things to start your day
1) Scrapping inheritance tax relief to hit family businesses with £1.4bn bill | Thousands of companies face soaring costs as fears grow over Labour tax raid
2) Sky News slashes freelance budgets as viewing figures slump | Broadcaster cuts costs as it grapples exodus from traditional TV to streaming rivals
3) Lucy Burton: Labour has no right to put a curfew on when employers can email staff | There is a time and a place for nanny-state meddling, but this certainly isn’t it
4) How London’s top dealmaker fell out the Magic Circle | Slaughter & May’s inclusion in the City’s most exclusive club is on increasingly shaky ground
5) Why Labour’s embrace of Brussels risks undermining Britain’s defence industry | Proposed defence and security pact could make it harder for UK firms to compete
What happened overnight
Asian markets were mixed as investors weigh the impact of the assassination attempt on Donald Trump.
China reported that its economy expanded at a slower-than-forecast 4.7pc annual pace in the last quarter.
Separate data showed retail sales slowed sharply in June as the country’s army of consumers remain cautious.
The readings highlight the tough work leaders face as they grapple with a real estate debt crisis, weakening consumption, an ageing population and trade tensions with Western rivals.
Leaders of the ruling Communist Party began a four-day meeting in Beijing to set economic strategy for the coming decade as investors watched for signs of measures to help revive the slumping property market and address huge local government debts.
Hong Kong’s Hang Seng fell 1.1pc to 18,094.22 amid selling of property developers. The Shanghai Composite slipped 0.1pc to 2,969.46.
The central bank left its medium-term lending rate unchanged, as expected, at 2.5pc. It’s the rate for Chinese banks to borrow from the People’s Bank of China for six months to one year and indirectly affects other benchmark rates that affect interest rates on mortgages and other loans.
Markets in Tokyo were closed for a public holiday.
In Seoul, the Kospi lost 0.1pc to 2,853.34, while the S&P/ASX 200 gained 0.9pc to 8,029.00. Taiwan’s Taiex lost 0.2pc and the SET in Bangkok shed 0.4pc.