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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/oct/31/chinese-factories-shrink-eurozone-gdp-germany-italy-pound-business-live
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| Chinese factories shrink again, ahead of eurozone growth report - business live | Chinese factories shrink again, ahead of eurozone growth report - business live |
| (32 minutes later) | |
| This latest decline in China’s factory activity shows that the trade war is “biting” and hitting exports, says Neil Wilson of Markets.com. | |
| He writes: | |
| We hearing slightly less optimistic noises on the trade war front. US demands for China to buy set levels of agricultural products are threatening to derail trade negotiations. | |
| China doesn’t want to commit to what the US wants and this could prove problematic to finalising the phase one agreement. Crossing the wires now the China foreign ministry has hit back at comments made by US Secretary of State Mike Pompeo, who launched a pretty fiery attack on Communist China in a speech. | |
| Failure to get the phase one deal over the line would be negative for risk appetite and raise expectations for the Fed to ease again. | |
| Chinese factories also reported that they’re cutting staffing levels. | |
| #China manufacturers continue to struggle. Factory activity shrank for 6th month in row. Oct PMI fell to 49.3 v. 49.8 in Sep (and worse than est. 49.8). Manufacturers also shed jobs: sub-index for employment at 47.3 in Oct v. 47.0 Sep. | |
| Growth across China’s service sector companies has also weakened this month, in another worrying sign. | |
| The non-manufacturing PMI, which monitors the health of services firms, dropped to 52.8 from 53.7 in September. | |
| That’s indicates a slowdown, and is closer to the 50-point mark showing stagnation. | |
| The drop in #China's Non-Manufacturing #PMI is starting to look slightly worrying. Down to 52.8 from as high as 54.9 one year ago. pic.twitter.com/e4kPC8MqF1 | |
| China’s manufacturing PMI, chart @BloombergTV https://t.co/YOyJSve2UM pic.twitter.com/zV6gMpcPs6 | |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| There are signs of economic weakness in China this morning, and Europe may soon add to the Halloween gloom. | There are signs of economic weakness in China this morning, and Europe may soon add to the Halloween gloom. |
| Chines factory activity shrank for the sixth straight month in October, new official figures show. | Chines factory activity shrank for the sixth straight month in October, new official figures show. |
| The official Chinese Purchasing Managers Survey for the manufacturing industry, released overnight, fell to just 49.3, from 49.8. This is the sixth month running in which the factory PMI has slipped below the 50-point mark. | The official Chinese Purchasing Managers Survey for the manufacturing industry, released overnight, fell to just 49.3, from 49.8. This is the sixth month running in which the factory PMI has slipped below the 50-point mark. |
| It’s another sign that China’s economy has weakened, after more than a year of trade conflict. | It’s another sign that China’s economy has weakened, after more than a year of trade conflict. |
| As Stephen Innes of Axitrader puts it: | As Stephen Innes of Axitrader puts it: |
| The data was horrible as trade tensions, and a slow recovery in domestic demand continued to weigh on the manufacturing sector. | The data was horrible as trade tensions, and a slow recovery in domestic demand continued to weigh on the manufacturing sector. |
| Last night, the US Federal Reserve cited the US-China trade war as a key risk to America’s economic expansion, as it cut interest rates for the third time this year. | Last night, the US Federal Reserve cited the US-China trade war as a key risk to America’s economic expansion, as it cut interest rates for the third time this year. |
| This pushed Wall Street to fresh record highs at the close of trading, as we blogged last night: | This pushed Wall Street to fresh record highs at the close of trading, as we blogged last night: |
| US Federal Reserve cuts interest rates, sending S&P 500 to record high - as it happened | US Federal Reserve cuts interest rates, sending S&P 500 to record high - as it happened |
| We also learned yesterday that America’s economy slowed slightly in the last quarter, to an annualised rate of 1.9% (or almost 0.5% quarter-on-quarter). | We also learned yesterday that America’s economy slowed slightly in the last quarter, to an annualised rate of 1.9% (or almost 0.5% quarter-on-quarter). |
| Europe would love such a performance, though. Eurozone growth data, due this morning, may show that growth slowed to just 0.1% in July-September, from 0.2% in April-June. | Europe would love such a performance, though. Eurozone growth data, due this morning, may show that growth slowed to just 0.1% in July-September, from 0.2% in April-June. |
| Although France grew by 0.3%, there are fears that a German recession and a stagnating Italian economy is holding the eurozone back. We find out at 10am. | Although France grew by 0.3%, there are fears that a German recession and a stagnating Italian economy is holding the eurozone back. We find out at 10am. |
| Early evidence of #Eurozone #GDP #growth in third quarter emerging (preliminary "flash" estimate is out on Thursday). Data out so far show Q3 growth of 0.3% q/q in #France, 0.4% q/q in #Belgium & 0.2% q/q in #Austria. Very real likelihood #Germany saw modest Q3 q/q contraction | Early evidence of #Eurozone #GDP #growth in third quarter emerging (preliminary "flash" estimate is out on Thursday). Data out so far show Q3 growth of 0.3% q/q in #France, 0.4% q/q in #Belgium & 0.2% q/q in #Austria. Very real likelihood #Germany saw modest Q3 q/q contraction |
| The markets are expected to be calm this morning, as investors digest last night’s Fed cut, and strong results from two tech giants. | The markets are expected to be calm this morning, as investors digest last night’s Fed cut, and strong results from two tech giants. |
| Apple posted record revenues for the last quarter, raking in $64bn, driven by strong demand for the iPhone and for wearable technology. | Apple posted record revenues for the last quarter, raking in $64bn, driven by strong demand for the iPhone and for wearable technology. |
| Apple reports $64bn in revenue, citing strong wearables and services sales | Apple reports $64bn in revenue, citing strong wearables and services sales |
| Facebook also best forecasts, with revenues surging 29%. Despite steady criticism of the social media giant, it grew its monthly used base by 1.65% to 2.45 billion. | Facebook also best forecasts, with revenues surging 29%. Despite steady criticism of the social media giant, it grew its monthly used base by 1.65% to 2.45 billion. |
| European Opening Calls:#FTSE 7329 -0.03%#DAX 12922 +0.09%#CAC 5773 +0.12%#MIB 22701 +0.24%#IBEX 9279 -0.06%#STOXX 3621 +0.03% | European Opening Calls:#FTSE 7329 -0.03%#DAX 12922 +0.09%#CAC 5773 +0.12%#MIB 22701 +0.24%#IBEX 9279 -0.06%#STOXX 3621 +0.03% |
| In the City, Lloyds Banking Group has taken yet another PPI provision of £1.8bn, and oil giant Shell has posted a 15% drop in profits due to the lower crude price (more on both stories shortly...) | In the City, Lloyds Banking Group has taken yet another PPI provision of £1.8bn, and oil giant Shell has posted a 15% drop in profits due to the lower crude price (more on both stories shortly...) |
| The agenda | The agenda |
| 10am GMT: Eurozone inflation for October | 10am GMT: Eurozone inflation for October |
| 10am GMT: Eurozone third-quarter GDP (first estimate) | 10am GMT: Eurozone third-quarter GDP (first estimate) |
| 11am GMT: Italian third-quarter GDP | 11am GMT: Italian third-quarter GDP |
| 12.30pm GMT: Canadian GDP report for August | 12.30pm GMT: Canadian GDP report for August |