China is experiencing a rare episode of sliding prices. Japans economy experienced this back in the 1990s and early 2000s. Now, this comes hot the heels of disappointing china trade data on tuesday, which showed that exports sank at their fastest rate since the pandemic, dropping by more 14 in the year tojuly, with imports also falling by more than 12 in the same period. Joining me now is duncan wrigley, Chief China Economist at pantheon macroeconomics. Thank you very much for being with us today. The Rest Of The World looking on in amazement. Considering the inflationary pressures the rest of us are dealing with. What do you read Between The Lines in this latest data . Between the lines in this latest data . Latest data . Ok, i mean, there are some latest data . Ok, i mean, there are some shortterm latest data . Ok, i mean, there are some shortterm factors i are some short term factors that push down the data for this month, there has been a surge of seasonal vegetables, the big pictu
And early noughties. Now this comes hot the heels of Dissapointing China Trade data on tuesday showing exports sank at their fastest rate since the pandemic. Global demand for chinese made goods is falling, down more than 14 in the year tojuly. But domestic demand is down too with imports also falling by more than 12 in the same period. Joining me now is janet mui, head of market analysis, Rbc Brewin Dolphin where is this deflation coming from . Good morning, thanks for having me. So, this Deflation Data is mostly coming from food. And also commodities prices like raw materials, energy etc. Actually, if you look at the underlying deflation, things Like Services and tourism and leisure, hotels. Actually, they are up, the Core Inflation is up from 0. 4 to 0. 8 . But obviously, its still pretty muted. Overall, it is a concern that china prices are contracting and it could be lasting for a while as well. , ~ , could be lasting for a while as well. , ~ ,. ,. , well. How likely is it that ch
Could save some sort of real catastrophe here. Could save some sort of real catastrophe here. Thats what i ho ed catastrophe here. Thats what i heped for catastrophe here. Thats what i hoped for. Definitely catastrophe here. Thats what i hoped for. Definitely the catastrophe here. Thats what i hoped for. Definitely the sensej hoped for. Definitely the sense that this is a huge moment. I want to ask, with all of this in mind, you and i have spoken in mind, you and i have spoken in the past about the prospects for a longer ceasefire for a hostage deal, you are mentioning qatar. What do you think that all of this means for any prospects of either of those two options . I for any prospects of either of those two options . For any prospects of either of those two options . I think you have to compartmentalise those two options . I think you have to compartmentalise this which is what the saudis and qatari is angela aliens are doing now, lets compartmentalise this. You have this thing with h
United states is trying to contain china unfairly, to use beijing s language this time. china also has weapons up its sleeve. last week they put in expert export controls in two key metals needed for semiconductors, but ultimately, this is that tit for tat escalation between the world s two largest economies, it shows no signs of abating, and at the end, really, it is businesses caught in the who will be losing out the most, and it does no good for confidence, especially when it comes to investing in china, even that economic picture that we just heard about earlier. economic picture that we “ust heard about earlier. economic picture that we “ust heard about earlier. thank you very much- to the uk now, and some gloomy warnings over the state of the economy. the think tank the national institute for economic and social research has said that the uk is set for five years of lost economic growth with the poorest hit hardest, citing the triple impact
But ultimately, this is the tit for tat escalation between the world s two largest economies. it shows no signs of abating. and at the end, really, it s businesses who are caught in the middle who are going to be losing out the most. and it does no good for confidence, especially when it comes to investing in china, given that economic picture that we just heard about earlier. honda 5 doubling its profits thanks to healthy sales but also a following wind with the exchange rate. a weaker yen, trading lately at about 143 yen to the us dollar, is a boom forjapanese exporters by boosting the amount of its overseas earnings when converted into yen. automakers around the world were slammed by supply shortages because of covid related production delays and factory shutdowns. those have eased, and, as our guest david leggett from global data explains, sales and profitability are now back on track. yes.