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Daily Scan: China dips on glum outlook; Europe creeps up
Updated throughout the day.
Good evening. China’s growth data was better than many analysts expected, but the overall picture is still glum with China growing at its slowest pace since the global financial crisis -- the markets have reacted accordingly. The Shanghai composite index closed down 0.14% while Hong Kong’s Hang Seng index showed little change -- up slightly at 0.04%. Elsewhere in Asia markets have seen little change, the most pronounced drop was seen in Japan where the Nikkei 225 was down 0.88%.
In Europe, markets opened flat but soon started tracking upwards with the pan-European STOXX 600 up 0.6%. One of the noticeable winners in early trading was Deutsche Bank which saw its stock climb 3.1% after it announced restructuring plans earlier Monday.
Here’s what else you need to know:
China 3Q GDP 6.9%, a six-year low. The number is slightly better than expected. But underlying data signalled underlying weakness especially industrial production, which expanded 5.7%, below expectations of 6.0%. Makes ya' wonder what it would have been without all the stimulus the government launched this past year. The Guardian
Britain rolls out the red carpet for President Xi and everyone wonders why. Says one advisor: "(It's) the only place where China is truly influential right now because they are so desperate for Chinese investment." Ouch. Financial Times (payall)
Japan Post subsidiaries priced at top of market range. Shares in the banking and insurance units of Japan Post have been priced at the top end of their proposed price ranges ahead of their November IPO. It's the country’s largest privatisation since the 1980s. Financial Times (paywall)
Heads roll as Deutsche Bank splits its investment bank. Deutsche Bank’s new head John Cryan has launched a radical overhaul of the bank’s senior management and structure, parting ways with several top executives and splitting its powerful investment banking unit in two. The Financial Times (paywall)
UK to treat Islamic extremists ‘like paedophiles’. Hate preachers will be treated like paedophiles and banned from all contact with children, UK PM David Cameron is to announce today as part of the government’s counter-terrorism strategy. The Telegraph.
Goldman Sachs chief economist says December rate hike likely. Jan Hatzius says his confidence level is about 60%, twice that of the Street. Calculated Risk
Wildfire kill 7 Indonesia hikers. Seven hikers were killed and two others suffered severe burns after a wildfire broke out on a mountain on Indonesia's main island of Java.The group was climbing