Mortgage strikes threaten China’s economic and political stability

Analysis: worsening meltdown in the country’s debt-laden property market is at the heart of a problem that comes at a precarious time for the Communist party

The alarm bells are ringing louder. Last week, hundreds of depositors gathered in front of the Zhengzhou branch of the People’s Bank of China in the provincial capital of Henan, demanding their frozen life savings held in rural banks. A day later, tens of thousands of homeowners threatened to stop paying mortgages on scores of unfinished housing projects they had purchased. All of this happened in a week where the officials reported lacklustre second-quarter economic performance.

China’s economy is facing a dangerous cocktail of stalling growth, high unemployment, spreading mortgage payment strikes and continued Covid shutdowns that threaten to explode with serious social and political consequences.

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Costs of Ukraine war pose tests for European leaders – and things may get worse

Analysis: Vladimir Putin claims time is on his side, but he will have only one shot at making a gas cutoff count

Desperate efforts in Italy to prevent the fall of Mario Draghi’s government are only the latest political firestorm in Europe tied to Vladimir Putin’s tests of the west’s powers of endurance. Draghi’s foreign minister, Luigi di Maio, suggested it will be Putin who celebrated the fall of another western government if Draghi does not survive a confidence vote in parliament on Wednesday.

“A boat without a rudder goes adrift,” said Ferruccio Resta, the president of the Conference of Italian University Rectors – a metaphor that could apply, to Putin’s satisfaction, to much of Europe as governments come under growing pressure over the perceived domestic cost of the war in Ukraine.

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Russia’s Gazprom tells European buyers it cannot guarantee gas supplies

Force majeure declared in letter to customers concerns supplies via Nord Stream 1 pipeline, says source

Russia’s Gazprom has told customers in Europe it cannot guarantee gas supplies because of “extraordinary” circumstances, according to a letter seen by Reuters, upping the ante in an economic tit-for-tat with the west over Moscow’s invasion of Ukraine.

Dated 14 July, the letter from the Russian state gas monopoly said it was declaring force majeure on supplies, starting from 14 June.

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Australia news live; treasurer says fuel excise cut ‘too expensive to continue’; Denis Napthine resigns as NDIA chair; 31 Covid deaths

Gorgeous images coming through from Tasmania where snow has fallen this morning.

NSW premier Dominic Perrottet is on ABC Radio following the national cabinet meeting which has seen emergency isolation payments reinstated.

If the state is taking away people’s liberty, then the state has an obligation to provide financial support.

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China banks told to bail out property developers as mortgage boycotts threaten economy

Intervention comes as thousands of homebuyers refuse to make mortgage repayments in deepening property sector crisis

Chinese banks have been told to bail out struggling property developers to help them complete unfinished housing projects and head off the growing mortgage strike that threatens to seriously damage the economy.

With thousands of homebuyers banding together to refuse to keep up with mortgage instalments on unfinished apartments bought off the plan, regulators have stepped up efforts to encourage lenders to extend loans to qualified real estate projects.

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ANZ buys Suncorp’s banking arm for $4.9bn to boost Queensland presence

Queensland jobs and bank branches to be protected for at least three years under terms of the takeover

ANZ has agreed to buy Suncorp’s banking business for $4.9bn in a deal the big-four lender described as a vote of confidence in Queensland.

Under the deal, ANZ will continue operating under the Suncorp Bank brand for five years as it takes on an additional $47bn in home loans and $45bn in deposits.

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Pro-Brexit UK regions more dependent on EU for exports, report finds

Research also reveals EU remains ‘overwhelmingly dominant’ destination for UK manufacturing exports

Brexit-supporting regions in the UK are becoming increasingly dependent on the EU for their manufacturing exports, research by the trade body Make UK has found.

The report, based on quarterly manufacturing outlook data measuring performance in output, orders, employment and investment intentions, also found the EU remains the “overwhelmingly dominant” destination for UK manufacturing exports.

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M&S to remove ‘best before’ labels from 300 fruit and veg items to cut food waste

The change, to be rolled out this week, will leave customers to judge whether goods are still fine to eat

Marks & Spencer is planning to remove “best before” labels from 300 varieties of fruit and vegetables in its stores to cut food waste.

The change, to be rolled out this week, will rely on customers using their judgment to determine whether goods are still fine to eat. The measure will affect 85% of the supermarket’s fresh produce offering.

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Aston Martin raises £650m as Saudi Arabia takes a stake

Executive chairman ‘very comfortable’ with investment to help British manufacturer pay down large debts

Aston Martin Lagonda has received a large investment from Saudi Arabia as part of raising £650m of capital to pay down the luxury sportscar maker’s large debts.

The British manufacturer has not been able to generate the cash needed to invest in new models and electric technology, and has also struggled with delays to its Valkyrie hypercar and its newest DBX 707 sports utility vehicle.

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Burberry sales fall 35% in China on back of Covid lockdowns

Lola handbag range and signature trenchcoat give luxury fashion retailer boost elsewhere

Burberry has reported sales growth of only 1% in its latest financial quarter because of the impact of Covid-19 lockdowns in China, while sales were boosted elsewhere by its Lola handbag range and signature trenchcoat.

The luxury fashion retailer said sales fell 35% in mainland China because of restrictions and store closures to contain the latest outbreak of the coronavirus, while sales grew 16% across the rest of the world in the 13 weeks to 2 July.

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Amazon to create more than 4,000 jobs in UK

US company says recruitment drive will take permanent workforce in Britain to 75,000

Amazon is creating more than 4,000 permanent jobs across the UK this year, the online company has announced.

The US firm said the recruitment drive would bring its permanent workforce in the UK to 75,000, having created 40,000 new jobs in the past three years.

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Asda employees ‘skipping meals’ due to monthly payroll errors

Thousands of staff have been left up to £500 short on payday, which has forced some to use food banks or leave bills unpaid

Asda employees are having to skip household bill payments, take out loans, and even use food banks to get through the month due to regular payroll errors that have seen some underpaid by £500 or more.

The scale of the problem emerged after the private equity-backed company admitted to members of the Scottish parliament that its external payroll firm had made nearly 11,000 errors in recent months, affecting the wages of 5,500 staff.

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China’s economic growth slumps sharply after Covid lockdowns

Shutdown of cities takes its toll, while property market remains in crisis and global outlook darkens

China’s economic growth has slowed sharply in the second quarter of the year, official data showed on Friday, highlighting the colossal toll from widespread Covid lockdowns and casting doubt over whether its pre-ordained growth target can be met.

Output contracted by 2.6% between April and June compared with the previous quarter, the statistics bureau said, prompting many economists to revise their predictions for the world’s second biggest economy.

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Dismay as UK gambling reform white paper shelved for fourth time

Delay follows advice to PM that proposals cannot be published until new Conservative leader in place

Proposals to reform gambling laws have been postponed for a fourth time, after advisers to Boris Johnson concluded it could not be published until a new leader of the Conservative party is elected to replace him as prime minister.

Amid a tussle between different Tory party factions over the content of the plans, multiple Whitehall sources told the Guardian that a white paper had been added this week to the government’s “grid” of announcements and was scheduled to be published on Tuesday.

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Pret a Manger CEO handed near-£4m bonus in year staff pay was cut

Pano Christou also given 27% salary rise in 2021 as chain took more than £50m in government support

Pret a Manger handed a near-£4m share bonus and 27% salary rise to its chief executive in the same year it cut staff pay and took more than £50m in government support via furlough and business rates relief.

The coffee shop chain paid Pano Christou £4.2m in the year to the end of December 2021, including a £400,000 salary, according to accounts for its main holding company.

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Russian war slowing growth and hiking inflation, European Commission warns

Body revises economic forecast and says outlook for EU and eurozone heavily dependent on course of war

Europe’s economy faces the twin blows of slower growth and higher inflation as it struggles to deal with the fallout from Russia’s invasion of Ukraine, the European Commission has warned.

In its summer forecast, the governing body in Brussels said the “protracted war” was sending shockwaves through the eurozone and the wider EU, leading to a marked slowdown in activity next year.

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Europe could face energy rationing as ‘really tough winter’ looms, Shell boss warns

Ben van Beurden says Ukraine war fallout means big rise in bills and possible need to ration supplies

European consumers could face the prospect of energy rationing this winter as costs continue to soar amid the risk of Russia cutting off gas supplies, Shell’s chief executive has said.

“It will be a really tough winter in Europe,” said Ben van Beurden, speaking at the Aurora spring conference in Oxford on Thursday. “We will all face very significant escalation in energy prices. In the worst case, Europe will need to ration its energy consumption.”

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Flood-hit Lismore ice-cream factory gets 11th-hour funding reprieve

Federal government announces $2.7m package day before Norco’s workforce was to be stood down

The federal government has stepped in to save jobs at a flood-ravaged ice-cream factory in Lismore a day before 170 workers were due to be stood down.

The Norco ice-cream factory was severely damaged by catastrophic floods in February, and the dairy co-operative’s farmer members are unable to cover workforce costs while it is out of action.

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Benefit cuts since 2010 increased UK child poverty in run-up to pandemic, says IFS

Austerity-era policies meant poverty among larger families in poverty rose at significantly faster rate, says thinktank

Benefit cuts imposed by the Conservatives since 2010 pushed up child poverty before the coronavirus pandemic, according to a report warning that poorer families are also among the most exposed to the cost of living crisis.

The Institute for Fiscal Studies said relative child poverty rose to the highest level since 2007 immediately before Covid-19 hit, as the incomes of poorer families with children fell further behind due to austerity.

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CMA investigates sport broadcasters over ‘cartel-like behaviour’

Watchdog says it suspects possible breaches of competition law around purchase of freelance services

The competition watchdog is investigating possible cartel-like behaviour by sport broadcasters including BT Group, ITV, Sky and IMG Media, which includes Premier League Productions, around the purchase of freelance services.

The Competition and Markets Authority said it believes there are “reasonable grounds to suspect one or more breaches of competition law”.

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