FTSE 100 closes above 7,000 for first time since Covid crash

Shares rise by more than 30 points as China reports record economic growth

The FTSE 100 has closed above 7,000 for the first time since the Covid-19 pandemic triggered a collapse in global markets last year, driven by rising hopes for the world economy after record growth in China.

The index of leading UK company shares ended the day up 36 points on Friday, or 0.5%, at 7,019, the highest level since late February 2020 when the first wave of Covid-19 sent shock waves through financial markets around the world.

Continue reading...

New Covid infections pose challenge to China’s growth and Xi’s leadership

The leader has declared victory over the virus, but a fresh outbreak is complicating the narrative

When Britain was in its second lockdown last November and the economy was contracting, China’s quarterly growth rate was hitting 6.5%. Figures last week showed that for the full year, the world’s second-largest economy could boast a growth rate of 2.3% while all its rivals in Europe and the Americas were going backwards.

The trend could be traced back to Beijing’s efforts to tackle the virus – albeit after a period of denial – and keep infection rates among the lowest in the world.

Continue reading...

Asian manufacturing boom offers hope for swifter global recovery from Covid

Markets respond as manufacturing in China and South Korea grows at fastest pace in a decade

Hopes that the world will bounce back from the ravages of coronavirus in the new year have been buoyed by strong growth in output from Asia’s huge manufacturing centres, led by an accelerating post-pandemic boom in China.

China’s factory activity expanded at the fastest pace in a decade in November, a closely watched survey showed on Tuesday, in the latest sign that the world’s second-largest economy is recovering to pre-pandemic levels.

Continue reading...

Why China’s dramatic economic recovery might not add up

The country seems to have rebounded, but some analysts believe that at the very least, there is sleight of hand at work

Beijing prompted envy, admiration and not a little resentment when it released data last week confirming that it was the first major economy to start growing again after the devastation caused by Covid-19 in the first half of the year.

China appeared to have achieved the V-shaped recovery being chased by finance ministers around the world, after pioneering mass lockdowns to contain the virus that had taken hold in Wuhan, then shutting its borders to stop it filtering back in from abroad.

Continue reading...

Hong Kong chief executive postpones key policy speech

Carrie Lam to consult Beijing in attempt to protect city’s status as international finance hub

Hong Kong’s chief executive, Carrie Lam, has postponed a key annual policy address scheduled for Wednesday, claiming she must consult Beijing on some of her proposals.

The unprecedented delay to the speech was also attributed to plans by the Chinese president, Xi Jinping, to visit Shenzhen to mark the 40th anniversary of the special economic zone on Wednesday, which was announced only on Monday and which Lam would also attend.

Continue reading...

Chinese city giving away 10m yuan in lottery trial of digital currency

Shenzhen residents can win one of 50,000 ‘red packets’ to spend in local shops

Authorities in the Chinese city of Shenzhen have begun giving away more than 10m yuan ($1.49m) in a citizens’ lottery, as part of trials of a new digital currency.

Almost 2 million people applied to be one of 50,000 randomly selected citizens receiving a “red packet” valued at 200 yuan (about US$30) on Sunday, to spend at 3,800 designated outlets in the district of Luohu. Participants must download the official digital Renminbi app, which is not yet publicly available, to receive the currency for purchases within the next week.

Continue reading...

Bottled water flotation makes founder China’s third-richest man

Zhong Shanshan’s net worth rises to $51bn as Nongfu Spring shares launch in Hong Kong

The stock market flotation of China’s biggest bottle water company has made its founder the country’s third-richest man, as shares in his company rocketed on their debut in Hong Kong.

At one point the paper fortune of Zhong Shanshan, the biggest shareholder in bottled water company Nongfu Spring, briefly surpassed that of China’s two richest men, Alibaba founder Jack Ma and Tencent founder Pony Ma.

Continue reading...

A bubble? The stellar growth of China’s e-commerce upstart Pinduoduo

At $114bn, its market value is above HSBC – but questions remain about business model and if it will ever be profitable

It is a company that is just about to turn five years old but is valued more highly than the oil giant Shell, or HSBC, one of the largest banks in the world.

Pinduoduo is the latest behemoth produced by China’s tech machine, an online shopping site that specialises in extraordinary discounts on everything from tissues to Teslas. And its market value has more than doubled in recent months to $114bn (£87bn).

Continue reading...

China retail sales fall fuels concern for global recovery from Covid-19

Retail sales dropped 1.1% in July while industrial production remains subdued

Fears over the strength of China’s economic recovery from the coronavirus pandemic have been raised after retail sales slumped in July and industrial production remained subdued.

Fuelling concerns for the world economy, retail sales in China dropped in July by 1.1% compared with the same month a year ago, missing predictions for a small increase in consumer spending.

Continue reading...

Stock markets boom as hopes rise for US economic stimulus and Covid-19 vaccine

S&P edges towards all-time record with oil prices and hospitality stocks rising as investor optimism rebounds

US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.

The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.

Continue reading...

Blindsided: how coronavirus felled the global economy in 100 days

A singular event has economists asking the same questions as everyone else: how far is there to fall – and can we ever get back?

It is New Year’s Eve 2019 and around the world stock markets are closing for business on a high note. Shares in the US are up by almost 30% on the year, those in Japan by 18%. Even in Britain, where the mood has been dampened by months of Brexit uncertainty, the FTSE 100 has risen by 12%.

Overall, it had been the best year for stocks since 2009 and traders saw no real reason why the party should not continue into 2020. The US and China looked close to an armistice in their trade war, the US central bank was stimulating the world’s biggest economy, and Boris Johnson’s decisive victory in the general election had removed any lingering doubts about whether Britain would leave the European Union.

Continue reading...

Coronavirus: fourth Diamond Princess passenger dies as Japan closes some schools – live news

Concerns mount that the spread of Covid-19 cannot be stopped as stock markets fall amid investor fears. Follow latest news

Italy may need to call on the European Union to offer leeway on its budget targets as it struggles with the impact of the coronavirus outbreak, a senior official said.

Deputy economy minister, Laura Castelli, made the comments a day after prime minister Giuseppe Conte warned that the fallout from the outbreak, which has concentrated in the economic powerhouses of northern Italy, would be “very strong”.

If you want to share any thoughts or news tips with me about the coronavirus then please email: sarah.marsh@theguardian.com or tweet me @sloumarsh. My direct messages are open. Thanks

Continue reading...

Coronavirus: two people die in Iran as cruise ship Britons face Wirral quarantine – latest updates

Deaths in mainland China pass 2,000 and Foreign Office tells Britons to stay on the Diamond Princess cruise ship

Inspectors in protective suits have been going door to door in Wuhan in an effort to find every infected person, the Associated Press reports.

Wednesday marked the final day of a campaign to root out anyone with symptoms whom authorities may have missed so far.

Britons returning home from the Diamond Princess cruise ship that has had more than 600 cases of coronavirus will be quarantined at the same NHS facility that housed people flown back to the UK from Wuhan.

The Department of Health said: “We can confirm that an accommodation block on the Arrowe Park NHS site will be used to isolate those returning from the Diamond Princess cruise ship in Japan. They will be kept in this location for the 14-day quarantine period, with around-the-clock support from medical staff at all times.”

Related: Foreign Office tells Britons not to leave cruise ship struck by coronavirus

Continue reading...

Will coronavirus make markets take a ‘black swan’ dive?

Impact of Chinese outbreak has already rippled out well beyond world’s No 2 economy

The impact of coronavirus on the global economy is growing and spreading daily. What started as a medical emergency in the Chinese city of Wuhan has led to planes being grounded, cruise ships being quarantined, theme parks being shut and car plants being mothballed.

TV footage of deserted streets and empty shops tell their own story: China’s economy, which was already slowing, is going to suffer a major hit as the authorities seek to stop the virus from spreading.

Continue reading...

Coronavirus live updates: all arrivals to Hong Kong from mainland China face ‘compulsory quarantine’ – latest news

Thousands on board Diamond Princess cruise ship in offshore quarantine in Japan after 10 people test positive, as China death toll passes 490

A hotel worker in the northern Italian city of Verona has tested negative for coronavirus.

The woman, who was isolated after coming down with a fever, is a member of staff at the same hotel where a Chinese couple being treated for the virus in Rome stayed for one night.

Here’s a report from Josh Taylor, a Guardian reporter based in Melbourne, that the Australian government is considering sending its citizens evacuated from Wuhan to isolated mining camps if Christmas Island reaches capacity for people being quarantined.

The home affairs minister, Peter Dutton, admitted there is the possibility that Christmas Island could reach capacity if the outbreak continues to spread. He said one option would be for people to share rooms, or potentially even open up other locations away from the rest of the Australian population.

Related: Coronavirus: 14th Australian case confirmed as Dutton says people could be sent to mining camps

Continue reading...

Donald Trump says he will sign first phase of US-China trade deal

Prospect of agreement lifts stock markets but experts question impact on long-running tensions

Donald Trump has said he will sign the first phase of a long-awaited trade deal with China on 15 January, in a move that de-escalates the tariff war between the world’s two biggest economies.

In a tweet on Tuesday, the US president said “high-level representatives of China” would attend an official ceremony at the White House, adding he would also be travelling to Beijing for talks on the second phase of the deal.

Continue reading...

Huawei says ‘survival is our first priority’ in 2020 as western boycott bites

Chairman Eric Xu warns that hit from US sanctions means telecoms firm must ‘go all out’ to maintain sales

The embattled Chinese telecommunications company Huawei says “survival” is its first priority after announcing sales were hit hard by a boycott from western countries.

Eric Xu, the company’s chairman, said estimated sales revenue would reach 850bn yuan for 2019 (US$121bn) - up roughly 18% from the previous year, but much lower than initially expected.

Continue reading...

As Hong Kong suffers, China risks losing its financial window on the world

The territory’s recession is getting deeper and the US is threatening its special trading status, bringing serious consequences for Beijing

Almost six months after the protest movement that has upended life in Hong Kong began, the region is now facing serious questions about its future as Asia’s leading international business centre.

The most recent violence in the autonomous Chinese region have been the worst disturbances of the six-month long pro-democracy protests. US lawmakers have passed legislation threatening Hong Kong’s special trading status and the territory has slumped into its worst recession for 10 years.

Continue reading...

US and China begin imposing new tariffs as trade war escalates

Chinese exports worth $125bn will face new taxes from 1 September, while China places levy on oil as agreement becomes more distant

China and the United States have begun imposing additional tariffs on each other’s goods in the latest escalation of their bruising trade war that has sent shockwaves through the global economy.

A new round of tariffs took effect from 0401 GMT on Sunday, with Beijing’s levy of 5% on US crude oil marking the first time the fuel has been targeted since the world’s two largest economies started their trade war more than a year ago.

Continue reading...

Shares across Asia fall sharply amid US-Chinese trade tensions

Investors seek safe havens such as US treasuries and gold as the superpower standoff shows no sign of being resolved

Shares in Australia and across Asia Pacific have fallen sharply amid a new flare-up of US-Chinese trade tensions.

Despite a senior Chinese leader saying Beijing wanted to resolve the dispute with “calm negotiations”, indices were deep in the red on Monday.

Continue reading...