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Good morning. China’s inventory market fell to the bottom stage since earlier than the Covid-19 pandemic, as slowing financial development, a liquidity disaster within the property sector and geopolitical tensions proceed to weigh on shares.
The CSI 300 index of huge and liquid Shanghai- and Shenzhen-listed shares fell as a lot as 1.3 per cent on Monday to about 3,463, marking the fairness benchmark’s lowest stage since 2019. The gauge has fallen about 15 per cent to date this 12 months, in greenback phrases.
Slowing development and high-profile defaults on greenback debt by Chinese language builders have prompted buyers to dump China shares. In the meantime a string of assist measures prime officers launched in July has did not halt the sell-off. Here’s the latest on Chinese stocks — and how worsening US-China relations are unsettling global funds.
Right here’s what else I’m holding tabs on at the moment:
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Financial information: The S&P International/Cips flash October buying managers’ index for manufacturing and companies is due for Canada, EU, France, Germany, Italy, Japan, UK and the US.
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Reviews: The IEA publishes its World Power Outlook.
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Firms: Earnings season continues with Alphabet, Hermès, Barclays, Microsoft and Shimano amongst these reporting.
Because the FT launches a e-newsletter on central banking, be a part of Chris Giles and his worldwide colleagues on Oct 25 8-9pm HKT for a subscriber-exclusive webinar to unpick classes from central banks’ battle in opposition to inflation. Register for your ticket now and ship in your questions for the panel.
5 extra prime tales
1. Hamas has freed two extra of the handfuls of hostages its militants captured throughout their assault on Israel earlier this month. The 2 hostages, Nurit Cooper and Yocheved Lifshitz, have been named by the Israeli prime minister Benjamin Netanyahu’s workplace. The 2 girls have been seized from the kibbutz of Nir Oz by Hamas militants who over-ran cities throughout southern Israel on October 7. Read the full story.
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Declaration of unity: Israel’s prime minister, defence minister and armed forces chief insisted there was “unity in function” between them as signs grew of discord over the course of the warfare with Hamas.
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‘There isn’t a work’: The warfare with Hamas has hit Israel’s economy, with economists forecasting a pointy contraction and large authorities deficits.
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‘Humanitarian pause’: The EU’s prime diplomat called for a pause in hostilities between Israel and Hamas with a purpose to enable support deliveries into the Gaza Strip and hostages held there to be launched.
2. Chevron has agreed to purchase US oil and fuel producer Hess in a $53bn all-stock deal, doubling down on its guess that demand for fossil fuels will stay sturdy for many years to come back. The deal delivers Chevron a foothold in Guyana, residence to the largest oil discovery of the previous decade, and comes as a rush of merger and acquisition activity begins to sweep through the US energy sector.
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Interview: Chevron’s chief government Mike Wirth says he’ll defy critics to make a “actual world” case for fossil fuels. “We aren’t promoting a product that’s evil”, he told the FT.
3. China and the Philippines traded blame after two ship collisions within the South China Sea on Sunday. In response to drone footage launched by the Philippine coastguard, a Chinese language coastguard vessel reduce in entrance of the bow of a small wood ship, inflicting it to hit its facet. A Chinese language maritime militia boat later bumped a Philippine coastguard vessel, Manila mentioned. The 2 confrontations marked a further escalation in the territorial dispute between the countries.
4. WPP-owned media company GroupM has sacked a senior Shanghai-based government after Chinese language police detained the high-ranking worker on suspicion of bribery final week. The dismissal follows an announcement by Chinese language regulation enforcement that it had “cracked” a industrial bribery case involving an promoting firm. Final Friday, the FT reported police had raided GroupM’s Shanghai places of work. Read the full story.
5. Toyota says it’s near with the ability to manufacture next-generation solid-state batteries on the similar price as current batteries for electrical autos, marking a milestone within the world race to commercialise the expertise. Here’s why solid-state batteries could be a “game-changer”.
Deep dive
![](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F1e151877-17d4-4246-97fc-75b34bad410c.png?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)
China’s greatest personal sector developer seems to be heading for default after failing to make a fee on an offshore bond. Nation Backyard was lengthy thought extra steady than lots of its friends, however its issues now present the turmoil within the sector at giant. With hundreds of unfinished houses throughout China and a swath of debt restructurings, here’s how the property crisis has unfolded.
We’re additionally studying . . .
Chart of the day
The sharp enhance in the price of rice may be traced to a crackdown by India, the world’s largest rice exporter, in response to fears of a manufacturing shortfall and rising home costs. Analysts warn that if India maintains its present export restrictions, and different producers comply with, the world is on track for a repeat of the 2008 rice crisis.
![Line chart of Prices of white rice ($ per tonne) showing Benchmark rice prices have risen in major producing countries since India's export ban](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd6c748xw2pzm8.cloudfront.net%2Fprod%2Fb952ed60-6f5f-11ee-a35a-9368cd4bb0e5-standard.png?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)
Take a break from the information
From deep morning meditation apply to catching a night prepare to Lake Como, spend an ideal Saturday in Milan with La DoubleJ founder JJ Martin.
![JJ Martin with her dog, Pepper](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F3a4e6b39-8136-4216-b7ca-faa7f0cb1325.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)
Extra contributions from Grace Ramos and Gordon Smith