Ggood morning.
China is paying the price for its zero-covid strategy as economic growth slowed in the second quarter.
GDP rose just 0.4 percent over the period, lagging far behind forecasts and marking the slowest rate of growth since the first wave of the pandemic in early 2020.
Beijing’s brutal approach to halt new waves of the virus led to a nearly 14 percent drop in Shanghai, which was subjected to some of the toughest lockdowns. A real estate crisis across the country is adding to the misery.
The data will heighten investors’ fears of a global economic slowdown amid rising inflation.
5 things to start your day with
1) Eurozone shocked as Italian technocrats lose their grip on power Mario Draghi’s potential departure marks a dangerous moment for Italy and its economy
2) Amazon to hire more people in UK than army Retail giant aims for 75,000 employees in Great Britain
3) Saudi Arabia gains board seat at Aston Martin as it injects £200m The Gulf State’s Sovereign Wealth Fund plans to take a 20 percent stake in the luxury car brand
4) Solar panel owners paid only a fraction of what their electricity is worth A household with three bedrooms and solar panels should be able to earn more than £400 a year
5) Train drivers announce new rail strike for July 30 Train drivers union Aslef to go on strike 48 hours after RMT strike
What happened overnight?
Hong Kong shares plunged more than 1 pc this morning, while the Hang Seng index fell 1.1 pc.
The Shanghai Composite Index fell 0.6 percent, while the Shenzhen Composite Index fell 0.3 percent on China’s second exchange.
Tokyo stocks opened higher, with the benchmark Nikkei 225 index rising 0.4 percent.
coming today
- For Business: Burberry, Ninety One (trade update)
- Economy: GDP (China), Retail (US, China), Industrial Production (China), Michigan Consumer Confidence Index (US), Trade Balance (EU)