Xi Jinping strengthens grip on China as growth falters

At present’s prime tales

• Rishi Sunak has succeeded Liz Truss as the brand new UK prime minister after profitable the Tory management contest. The previous chancellor, a rightwing but pragmatic Brexiter and Britain’s first non-white premier, has a troublesome job forward restoring the country’s credibility with world traders.

• New PMI survey knowledge suggesting the UK has fallen into recession spotlight the dimensions of the problem going through Sunak. The studying of 47.1 in October, the place 50 marks the road between enterprise exercise shrinking and increasing, was a 21-month low. One other survey confirmed consumer confidence plunging.

• Philips, the Dutch well being tech firm, plans to cut 4,000 jobs or 5 per cent of its workforce to satisfy the prices of authorized motion on defective medical units in addition to provide chain pressures.

For up-to-the-minute information updates, go to our live blog

Good night.

Disappointing progress knowledge have added to investor issues in regards to the future path of China after a landmark congress of the Communist get together handed president Xi Jinping an unprecedented third time period in energy.

At present’s GDP numbers — postponed from final Tuesday when the congress was in full circulation — present the economic system expanded 3.9 per cent within the third quarter, far wanting the full-year goal of 5.5 per cent, already the bottom in three a long time.

The information knocked Chinese stocks and added to the unease of overseas investors in Hong Kong over Xi’s appointment of hardliners to his management staff. Tech companies reminiscent of Alibaba, already affected by a home regulatory clampdown, have been additionally hit in US buying and selling.

Ruchir Sharma, chair of Rockefeller Worldwide, writes within the FT at present that the slowdown in progress means China is unlikely to overtake the US because the world’s largest economic system till 2060 — if in any respect. Xi’s objective of constructing China a mid-level developed nation within the subsequent decade implies a progress charge of round 5 per cent, however the present outlook suggests simply half of that, Sharma says.

The nation remains to be affected by the crippling results of zero-Covid lockdowns which have hit client spending, in addition to a unbroken property disaster. Different complications for Xi embody new tech export controls from the US that may have an effect on corporations reminiscent of chipmaker SMIC: read our explainer to get the complete image.

At present’s knowledge observe a consolidation of Xi’s energy on the congress, with rivals purged from his team and the promotion of loyal Shanghai chief Li Qiang — who presided over the town’s draconian lockdowns — to turn into the Communist get together’s second-highest-ranking official.

As Xi strengthens his grip — graphically illustrated by the sight of former president Hu Jintao being forced to leave the stage — he faces a renewed effort by the US and its allies to forge a new “global west” in opposition, writes chief overseas affairs commentator Gideon Rachman.

This grouping, led by a reinvigorated G7, goals to scale back nations’ financial reliability on China by measures reminiscent of “friendshoring” and elevated funding in world infrastructure to match Beijing’s Belt and Street Initiative.

Former Australian prime minister Kevin Rudd, additionally writing within the FT, says Xi’s congress efficiency is affirmation of an aggressive and statist worldview, with nationwide safety changing the economic system as China’s central focus. It additionally marks the return of “ideological man”, Rudd argues, elevating Xi within the pantheon of the nation’s leaders and placing him on a par with Mao Zedong.

Be a part of FT journalists for a subscriber-only briefing on what the Communist get together’s nationwide congress signifies for China, the world and enterprise. Register here.

Must know: UK and Europe economic system

The PMI studying for the eurozone was as gloomy because the UK’s, displaying a bigger than expected contraction in output in manufacturing and providers and the identical rating of 47.1, the bottom for the bloc since November 2020.

The UK vitality trade mentioned the federal government’s de facto windfall tax on low carbon electrical energy corporations would have “catastrophic consequences” for funding in inexperienced know-how. The coverage, nonetheless progressing by way of parliament, would impose a income cap on low carbon turbines.

Must know: World economic system

The PMI studying for the US confirmed enterprise exercise shrinking for a fourth straight month in October, hitting 47.3, due to inflation and slowing demand. President Joe Biden’s adviser Brian Deese instructed the FT the US economic system was robust sufficient to avoid recession, experiencing as a substitute a “mushy touchdown” with a shift to slower progress fairly than a deep contraction.

Nineteen Seventies and Eighties-stye “austerity purchasing” by European, US and Asian customers is again as inflation hits household budgets. New knowledge present a rise in packed lunches, shopping for out-of-date meals, reducing again on booze and visiting a number of supermarkets to safe the most affordable offers.

The Brazilian presidential election run-off takes place on Sunday. As campaigning intensifies, incumbent Jair Bolsonaro has hit out on the supposed bias of the judiciary in direction of his rival Luiz Inácio Lula da Silva because it clamps down on disinformation.

Regardless of pledges to study the teachings of Covid-19, fears are rising that the darkening financial outlook will hit funding for world well being emergencies reminiscent of antimicrobial drug resistance, Ebola in Africa, cholera in Haiti and polio and monkeypox within the US and different developed economies. Learn extra in our particular report: Communicable Diseases.

Must know: enterprise

Revenue warnings at FTSE-listed corporations this quarter are on the highest stage since the global financial crisis as the price of doing enterprise soars whereas demand is hit by worsening financial circumstances. A number of UK corporations are providing employees perks to assist offset rising living costs.

US tech giants are set to report slowing revenues in third quarter bulletins this week, ending the pandemic-fuelled surge in digital exercise over the previous two years.

The pinnacle of WFS, one of many world’s greatest air cargo handlers, mentioned that regardless of the darkening world commerce outlook, the rise of ecommerce and demand for quicker deliveries have been driving a long-term shift in direction of moving goods by plane.

A lack of blockbusters means field workplace takings at world cinemas are nonetheless removed from hitting pre-pandemic ranges. Shoppers are additionally turning into extra discerning, says one forecaster: “Cinemas’ fundamental competitors isn’t Netflix, it’s different out-of-home choices, and there’s a variety of stuff you are able to do these days, from laser quest to golf to flee rooms. You must compete with all that on worth and expertise.”

You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.

The World of Work

The work-from-home development is driving “productiveness paranoia” on the a part of sure managers as they search for new efficiency metrics, writes columnist Rana Foroohar. However rising worker surveillance is inflicting stress and resentment amongst employees and isn’t that efficient anyway, she argues.

One particular consequence of hybrid working in giant economies is the noticeable drop in commuting. The shift poses challenges for dense city centres which might be organised round a excessive focus of economic exercise.

Shifting Past the Nice Resignation is a free FT webinar on November 1 specializing in altering worker expectations and the way companies can retain expertise in an more and more difficult market. Register here.

Get the most recent worldwide image with our vaccine tracker

Some excellent news

The NHS in England says it’s on the right track to turn into the primary nation on this planet to stop new cases of HIV before 2030, due to a brand new wave of medicine, together with long-acting injections to switch every day tablets.