China’s GDP growth slowed further to 6.0% yoy in Q3, down from 6.2% yoy in Q2 and missed expectation of 6.1% yoy. That’s also the worst pace since Q1 of 1992, the earliest quarterly data on record. National Bureau of Statistics spokesman Mao Shengyong said China was ” faced with mounting risks and challenges both at home and abroad”. But he attempted to tone down the situation and said ” the national economy maintained overall stability … and improved living standard.” He also added there was ample room for adjustments on monetary policy,
The weak data raised concern that the slowdown this year could be worse than originally expected, as trade war with US weigh. While there appears to be some progresses on trade negotiations, the imposed tariffs are remaining. Uncertainties continued to weigh on business sentiments too. Growth could slow further below 6% handle in Q4.
Nevertheless, on the positive side, industrial production grew 5.8% yoy in September, comfortably beat expectations of 5.0% yoy. That’s also a notably improvement from 4.4% yoy in August. Retail sales growth accelerated to 7.8% yoy, up from 7.5% yoy and matched expectations. Fixed asset investment, however, slowed to 5.4% ytd yoy, down from 5.5% and matched expectations.
FT predicts Johnson’s Brexit deal to be defeated by 318 to 321
Sterling remains steady today as traders are all holding their bets ahead of tomorrow’s crucial vote on the new Brexit withdrawal agreement. UK Prime Minister Boris Johnson will hold a cabinet meeting at 1500GMT in Downing Street today, in effort to secure support for the bill. At this point, there is no sign that Northern Ireland’s DUP is changing their stance against the plan. ERG chair is holding the cards on his chest. The group is due to meet tomorrow and make a recommendation but Guardian reported that most of the “Spartans” are likely to support. Labour MP John Mann has predicted that “more than nine” of his parliamentary colleagues will vote for Johnson’s deal
Financial Times predict that Johnson’s deal would be voted down by 318-321. The possible supporters include 259 Conservatives, 28 hardline Eurosceptic Conservatives, 20 independent Conservatives, 7 Labour rebels, 3 independents and 1 Lib Dem. The reported noted: “Analysis by the Financial Times suggests that unless the prime minister can persuade the DUP to drop its opposition, or persuade several Labour MPs or independent parliamentarians to support the deal, Mr Johnson will struggle to win a House of Commons majority.”