This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-34003197
The article has changed 10 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| Global economy woes spark share falls | Global economy woes spark share falls |
| (35 minutes later) | |
| Shares and oil prices around the world have seen further falls, sparked by renewed fears over the health of the global economy. | Shares and oil prices around the world have seen further falls, sparked by renewed fears over the health of the global economy. |
| In China, the authorities intervened again on the stock market to little effect. Shares in Shanghai fell 3.4%. | |
| And expectations of a US interest rate rise dimmed after the Federal Reserve said the economy was not ready yet. | And expectations of a US interest rate rise dimmed after the Federal Reserve said the economy was not ready yet. |
| On Wall Street, the Dow Jones index opened 1% lower, while markets in Paris and Frankfurt fell more than 2%. | On Wall Street, the Dow Jones index opened 1% lower, while markets in Paris and Frankfurt fell more than 2%. |
| London's benchmark FTSE 100 index shed 0.56%, while the price of Brent crude oil was down 0.4% at $46.97 a barrel, although US crude recovered from earlier falls to stand 0.6% higher at $41.35. | London's benchmark FTSE 100 index shed 0.56%, while the price of Brent crude oil was down 0.4% at $46.97 a barrel, although US crude recovered from earlier falls to stand 0.6% higher at $41.35. |
| Rate rise 'approaching' | Rate rise 'approaching' |
| On Wednesday evening, the Fed released minutes from its meeting on 28-29 July, showing that one policymaker was ready to vote for an interest rate rise at the meeting. | On Wednesday evening, the Fed released minutes from its meeting on 28-29 July, showing that one policymaker was ready to vote for an interest rate rise at the meeting. |
| Overall, the Fed thought conditions for a US rate rise "were approaching", but the economy was not ready yet. | Overall, the Fed thought conditions for a US rate rise "were approaching", but the economy was not ready yet. |
| Other policymakers remained concerned that inflation would remain weak because of the strong dollar and falling commodity prices, which act as a double depressant on imports. | Other policymakers remained concerned that inflation would remain weak because of the strong dollar and falling commodity prices, which act as a double depressant on imports. |
| The Fed's key interest rate has been kept near zero since December 2008. | The Fed's key interest rate has been kept near zero since December 2008. |
| There has been speculation that the Fed will raise rates at its meeting in September, and last month Fed chair Janet Yellen said she thought a rate rise this year was likely. | There has been speculation that the Fed will raise rates at its meeting in September, and last month Fed chair Janet Yellen said she thought a rate rise this year was likely. |
| China slowdown fears | China slowdown fears |
| The committee also cited China as a potential problem, saying that a "material slowdown" in the Chinese economy could affect the US economic outlook. | The committee also cited China as a potential problem, saying that a "material slowdown" in the Chinese economy could affect the US economic outlook. |
| The FOMC's meeting came before last week's action by China to weaken its currency. | The FOMC's meeting came before last week's action by China to weaken its currency. |
| After days of volatility, Chinese equities traded lower once again on Thursday, despite Beijing's efforts to calm markets. | After days of volatility, Chinese equities traded lower once again on Thursday, despite Beijing's efforts to calm markets. |
| The mainland's benchmark Shanghai Composite closed 3.4% down at 3,664.29. | |
| The fall comes after the index saw strong volatility earlier in the week. | The fall comes after the index saw strong volatility earlier in the week. |
| Traders appeared not to respond to efforts by the central bank to provide more liquidity to stabilise markets. | Traders appeared not to respond to efforts by the central bank to provide more liquidity to stabilise markets. |
| BBC economics editor Robert Peston says many economists believe China's official 7% growth rate is a serious overstatement of the underlying reality. | BBC economics editor Robert Peston says many economists believe China's official 7% growth rate is a serious overstatement of the underlying reality. |
| He says even a fractional rise in US rates would be uncomfortable when the huge economies of China, Japan and the eurozone have been weakening. | He says even a fractional rise in US rates would be uncomfortable when the huge economies of China, Japan and the eurozone have been weakening. |
| Inflation focus | Inflation focus |
| In assessing the strength of the US economy, the Fed has been keeping an eye on the US jobs market - where the unemployment rate has been falling and is now 5.3%. However, inflation is still below the Fed's target of 2%. | In assessing the strength of the US economy, the Fed has been keeping an eye on the US jobs market - where the unemployment rate has been falling and is now 5.3%. However, inflation is still below the Fed's target of 2%. |
| The minutes from the Federal Open Market Committee's (FOMC) July meeting said: "Most judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point." | The minutes from the Federal Open Market Committee's (FOMC) July meeting said: "Most judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point." |
| The committee noted that the labour market "had continued to improve, with solid job gains and declining unemployment". | The committee noted that the labour market "had continued to improve, with solid job gains and declining unemployment". |
| However, when assessing inflation, it said that "some members continued to see downside risks to inflation from the possibility of further dollar appreciation and declines in commodity prices". | However, when assessing inflation, it said that "some members continued to see downside risks to inflation from the possibility of further dollar appreciation and declines in commodity prices". |