white house, that they are encouraging us businesses to help de risk from china, that they are encouraging us businesses limit investment in china, especially with industries touching on national security concerns. security concerns. one of the thins security concerns. one of the things china security concerns. one of the things china introduced - security concerns. one of the things china introduced over| things china introduced over the weekend is tax incentives as well as help with visas, but will that work? i as well as help with visas, but will that work? will that work? i don t think so, not will that work? i don t think so. not right will that work? i don t think so, not right off will that work? i don t think so, not right off the - will that work? i don t think so, not right off the bat. i will that work? i don t thinkl so, not right off the bat. the state council recently issued guidelines to essentially make investment in china more attractive, and i think
de risking strategy poses yet another threat to foreign businesses operating there. i think the biggest challenge right now is the clear message from the united states government coming right out of the white house that they re encouraging us businesses to essentially what they call de risk from china, that they re encouraging us businesses to limit investment in china, especially when it has to do with industries that touch on national security concerns. one of the things that china had introduced over the weekend, they re offering tax incentives as well as help with visas. but is that going to work? i don t think so. not right off the bat. and i think the state council recently issued some guidelines in an attempt to essentially make investments in china more attractive. and i think it shows us three major things. the first is that it demonstrates that china knows that it s got a problem. its economy is slowing. it s got a housing bubble, unemployment is particularly high a
has to do with industries that touch on national security concerns. one of the things that china had introduced over the weekend, they re offering tax incentives as well as help with visas. but is that going to work? i don t think so. not right off the bat. and i think the state council recently issued some guidelines in an attempt to essentially make investments in china more attractive. and i think it shows us three major things. the first is that it demonstrates that china knows that it s got a problem. its economy is slowing. it s got a housing bubble, unemployment is particularly high and foreign investment is beginning to slow down. the second thing is they re saying the right things, that they re providing tax incentives and they re trying to they re indicating that they re going to protect intellectual property rights and they re trying to make the country look more attractive for foreign investors. but i think the third thing is the most important, and that s us comp
we heard that average uk wages were rising at their fastest pace in 20 years. katharine neiss is chief european economist at pgim fixed income. thanks very much for being with us today, katharine neiss. so clearly welcomed news that inflation has fallen to this point. still quite far off the bank of england s target, though. is everything going to plan or as we had expected? 50. to plan or as we had expected? so, toda s to plan or as we had expected? so, today s data to plan or as we had expected? srr, today s data are to plan or as we had expected? s57, today s data are not to plan or as we had expected? s513, today s data are not a to plan or as we had expected? sr3, today s data are not a surprise. it is encouraging, as you say, that headline inflation is coming down. no doubt uk consumers will be relieved to see that energy prices and food price inflation is beginning to cool. but, that said, core inflation, that is a measure of inflation that gives us perhaps a better
increase won t come. let s not forget that yesterday we heard that average uk wages were rising at their fastest pace in 20 years. joining me now is neil shearing group chief economist at capital economics. thanks very much for being with us today. clearly it is pretty good news, but is it happening fast enough, oras news, but is it happening fast enough, or as fast as we had hoped? the fall in the headline rate of inflation, as you say, that s going to be welcomed by the bank of england. it takes a bit of pressure off them. but when you start to dig into the details of this report, i think perhaps there is still some uncomfortable reading there for the policymakers of the bank. as you mentioned, a lot of the fall in the headline rate, that is driven by what has happened to food and energy prices and that is out of the bank s control. interest rates don t tend to affect the price of our energy or food. those are set in global markets. what they do affect his conditions in t