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At present’s prime tales
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The UK economic system bounced again from the pandemic a lot quicker than beforehand estimated, in accordance with revised official statistics that present Britain is no longer the worst G7 performer. GDP within the three months to June was 1.8 per cent above the pre-pandemic degree within the last quarter of 2019, in contrast with the 0.2 per cent beneath that degree initially estimated.
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The world’s monetary stability watchdog is launching a probe of the build-up of debt outside traditional banks, because it seeks to restrict hedge funds’ borrowing and increase transparency.
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HSBC’s head of public affairs is stepping down, weeks after making a public apology for saying the UK authorities had been “weak” by curtailing its dealings with China due to strain from the US.
For up-to-the-minute information updates, go to our live blog
Good night.
International bond markets bounced back today after 1 / 4 of heavy losses because of indicators of inflation easing within the US and the eurozone.
Within the US, the “core” private consumption expenditure index — a measure carefully watched by the Federal Reserve — fell from 4.3 per cent in July to three.9 per cent in August, the bottom degree since September 2021.
The info indicated shopper spending was weakening below the impression of excessive rates of interest, one in all several headwinds confronted by the US economic system together with the potential of a federal authorities shutdown (see beneath), surging oil costs, strikes within the Midwest and the expiry of pandemic-era fiscal help.
Earlier than right this moment’s knowledge, US shares and authorities bonds had been set for his or her worst month of the year as traders digested Fed indicators that rates of interest have been set to remain increased for longer than beforehand thought.
Eurozone inflation, in the meantime, fell from 5.2 per cent to 4.3 per cent in September. The core determine, excluding unstable power and meals costs, a metric carefully watched by the European Central Financial institution as a measure of underlying value pressures, additionally dropped greater than anticipated from 5.3 per cent to 4.5 per cent, fuelling expectations that the ECB would possibly finish its programme of rate of interest rises when its governing council subsequent meets on October 26.
![Line chart of Consumer price inflation (annual % change) showing Inflation is falling across the world](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd6c748xw2pzm8.cloudfront.net%2Fprod%2Fee12cf20-5eac-11ee-ad1c-8dd99efbce33-standard.png?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)
Knowledge for Germany, the bloc’s largest economic system, additionally confirmed inflation at a two-year low, dropping from 6.4 per cent in August to 4.3 per cent because the elimination of final yr’s low cost German public transport tickets and gasoline costs from the annual comparability pushed inflation down.
In France, which is contemplating a windfall levy to “take again management” of energy prices, inflation was additionally decrease than anticipated at 5.6 per cent.
Earlier than right this moment’s knowledge, eurozone bond markets had been badly dented by Italy’s plans for higher borrowing, with yields reaching the best ranges in a decade.
One nagging fear for the ECB is shoppers’ expectations of the place costs are heading — a month-to-month survey yesterday confirmed them rising for the second month in a row.
And though traders now count on an finish to charge rises sooner relatively than later, some policymakers stay hawkish: Bundesbank chief Joachim Nagel warned simply final week that the eurozone should avoid “entrenched” inflation “at all costs”.
Evaluate country-by-country with our global inflation tracker.
Have to know: UK and Europe economic system
Two extra UK knowledge factors highlighted the impression of increased rates of interest on lending. Cash provide contracted for the first time since at least 2010 and mortgage approvals fell to their lowest level in six months.
Spanish opposition chief Alberto Núñez Feijóo failed in his second and last try to type a authorities following an inconclusive basic election. Appearing prime minister Pedro Sánchez will now get an opportunity to safe one other time period however will need the support of hardline Catalan separatists.
Companies are bracing for the EU carbon border tax, which can impose new costs on those importing into the bloc from October 1. EU commissioner for the economic system Paolo Gentiloni wrote within the FT that the tax was not about commerce safety, however protecting the EU’s climate ambitions.
The European Central Financial institution is experimenting with generative artificial intelligence to hurry up actions starting from drafting briefings and summarising banking knowledge to writing software program code and translating paperwork.
Novo Nordisk’s Wegovy anti-obesity drug has single-handedly stopped Denmark from falling into recession however authorities are fearful that the nation’s fortunes have turn out to be too carefully tied to a single firm, fearing a repeat of Finland’s fateful over-reliance on Nokia.
Have to know: International economic system
Goldman Sachs reckons there’s a 90 per cent likelihood a US authorities shutdown would possibly begin on Sunday. Right here’s our information to the radical Republicans driving Washington to the sting and right here’s FT Alphaville’s tackle what it all means.
The Biden administration introduced plans to carry a file low variety of offshore drilling leases over the subsequent 5 years, in a blow to the oil and gas industry. Vitality secretary Jennifer Granholm warned that transitioning from fossil fuels would make power safety “infinitely extra complicated” due to China’s stranglehold on the processing of critical minerals. Vitality transition is the “new industrial revolution”, says US local weather envoy John Kerry within the newest instalment of our Climate Exchange collection.
Lan Fo’an, a former provincial governor, is predicted to be appointed as China’s new finance minister as a reshuffle of prime officers continues. The Individuals’s Financial institution of China and the Nationwide Growth and Reform Fee have additionally had latest adjustments of management.
Economists warned Argentina risked hyperinflation following its October election, after populist economic system minister Sergio Massa launched a spending spree and frontrunner Javier Milei pledged to dollarise the economic system.
Lebanon could also be scuffling with the aftermath of a banking and financial disaster however the wealthy continue to party. Some took their cash out of the banks early or used their connections to switch funds overseas, whereas others by no means used the nation’s banking system to start with.
Have to know: enterprise
Firms editor Anne-Sylvaine Chassany says western corporations nonetheless working in Russia face rising difficulties in repatriating profits and a growing risk of state seizure. “Any western firm nonetheless nurturing the hope of recouping its funding within the nation is mistaken,” she says.
The European journey sector stays upbeat after a summer season growth however demand is starting to weaken in the US. An FT Huge Learn examines the probabilities of London’s Heathrow airport finally getting its third runway.
Former Apple designer Sir Jony Ive is in talks with ChatGPT creator OpenAI to construct the “iPhone of artificial intelligence”, backed by greater than $1bn in funding from Japan’s SoftBank.
International dealmaking is at a 10-year low as excessive rates of interest deter non-public fairness exercise and strengthening antitrust legal guidelines cease corporations from pursuing rivals.
A new FT film paperwork how the US is making an attempt to regain its main position in superior chip manufacturing and combat again in opposition to China’s rise as a technological superpower.
Science round-up
A Nasa spacecraft returned to Earth with rock and dust samples from the 4.7bn-year-old asteroid Bennu. The samples, the biggest haul ever to be introduced again to earth from an asteroid, will present clues to the start of the photo voltaic system.
Molnupiravir, a Covid antiviral blockbuster drug, was discovered to have produced everlasting mutations of the coronavirus that may be passed from patient to patient, a discovering that may improve scrutiny about its usefulness and the billions spent by governments on its procurement.
Science commentator Anjana Ahuja explains how “inverse vaccines” may revolutionise the treatment of autoimmune diseases comparable to a number of sclerosis and kind 1 diabetes.
Funding in companies spun out from UK universities fell throughout 2022 and the primary half of 2023 after a decade of consistent growth. The nation’s largest investor in companies commercialising tutorial analysis known as for motion to encourage funding.
As discussions happen on the World Well being Group a few new international pandemic settlement, it’s clear that the difficulty of mental property is a serious stumbling block, writes Ellen ‘t Hoen, director of analysis group Medicines Regulation & Coverage.
The State of Nature report on UK biodiversity painted a miserable image of the continued deterioration of wildlife. Some 16 per cent of the ten,000 species of crops and animals surveyed are threatened with extinction in what’s already one of many world’s most nature-depleted nations.
Some excellent news
As an antidote to miserable environmental information — and a potential warning of what we stand to lose — take a look at some stunning photos from the Nature TTL photography competition.
![Sea lions](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F5a7ceaa1-3e4e-413c-a57d-a49578aaa077.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)
One thing for the weekend
Attempt your hand on the vary of FT Weekend and daily cryptic crosswords.
Interactive crosswords on the FT app
![](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F6655dfcc-d721-4f5e-804b-03fa1c1b8958.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)
Subscribers can now resolve the FT’s Day by day Cryptic, Polymath and FT Weekend crosswords on the iOS and Android apps