According to the IMF, the world economy could lose $9 trillion due to the Coronavirus outbreak. WION's Palki Sharma tells you how is the world coping with the economic repercussions of this outbreak.

Gravitas: World Economy could lose $9 Trillion | Coronavirus

The International Monetary Fund issued a stark warning on April 15 about the coronavirus’s economic toll. It said that the world is facing its worst downturn since the Great Depression as shuttered factories, quarantine, and national lockdowns cause the economic output to collapse.

IMF predicts worst economic downturn: Proposes 1 trillion-dollars support

As odds of the global recession rises the government and central banks around the world are racing to restore the economic damage from the spread of the novel coronavirus. The death toll has already landed hard on the jittery financial markets. Watch report:

Global stocks plunge on coronavirus fears

The Economic impact of coronavirus is still impossible to determine but it is widely clear that the outbreak is taking a toll on the Chinese economy.

Global Economy and the Coronavirus Outbreak

Coronavirus outbreak's economic impact

Stocks struggled worldwide on Friday with most indices ending sharply lower amid mounting worries the coronavirus outbreak will dent global economic growth.

The Dow slid more than two per cent losing more than 600 points in its worst session since August as the three largest US carriers halted all service to China.

Just after markets closed, US authorities declared a public health emergency, and starting Sunday will ban entry into the country of any foreign national who has travelled to China in the past two weeks, while quarantining Americans who have made the trip.

Major European markets slid more than one per cent, including London, where equities were weakened by a stronger pound in the final session before Britain was due to leave the European Union.

Also read:&nbsp;<a href="https://www.wionews.com/world/experts-say-bats-could-be-behind-deadly-coronavirus-outbreak-277877">Experts say bats could be behind deadly coronavirus outbreak</a>

Asian equity markets also were gripped by virus fears in a volatile end to the week, although Japan's Nikkei finished higher.

At least 213 people have died and nearly 10,000 people have been infected in China by the novel coronavirus, while fresh cases were found abroad with more than 20 countries now affected.

"Unless a cure is found, this could push a fragile world economic recovery into reverse," warned Douglas McWilliams, deputy chairman at British research group the Centre for Economics and Business Research (CEBR).

Oxford Economics analysts said the outbreak would have a large short-term impact on Chinese economic growth and possibly curb global GDP growth by 0.2 percentage points this year.

Also read:&nbsp;<a href="https://www.wionews.com/world/to-mask-or-not-to-mask-confusion-spreads-over-coronavirus-protection-277869">To mask or not to mask: Confusion spreads over coronavirus protection</a>

"It's increasingly apparent the disease is becoming an economic as well as a public health concern," they said.

The WHO invoked a global health emergency on coronavirus -- but stopped short of recommending trade and travel restrictions that could have had a bruising effect on China, a key global growth engine.

After initially applauding the WHO action, investor fear returned as Britain confirmed its first cases and Italy declared a state of emergency to fast-track efforts to prevent its spread after two cases were confirmed in Rome.

Quincy Krosby, the chief market strategist at Prudential Financial, said the outbreak has raised doubts about whether growth would accelerate in the aftermath of the US-China trade detente.

"We expected to see global growth," she said. "What this does is perhaps slows that down and adds more uncertainties."

Krosby said the outbreak also could pose problems for companies with supply chain dependent on China.

Separately, the EU's official statistics agency announced Friday that the 19-member single currency area already suffered a sharp slowdown after a turbulent year of Brexit uncertainty and trade spats with US President Donald Trump.

The eurozone economy grew 1.2 per cent over the year, down from 1.8 per cent in 2018 and well off the 2.7 per cent seen in 2017.

Losses were broad-based on Wall Street, but an exception was Amazon, which surged 7.4 per cent after releasing quarterly earnings results for the holiday period that trounced market expectations.

Stocks struggled worldwide on Friday with most indices ending sharply lower amid mounting worries the coronavirus outbreak will dent global economic growth. The Dow slid more than two per cent losing more than 600 points in its worst session since August as the three largest US carriers halted all service to China.

Stocks struggled worldwide on Friday with most indices ending sharply lower amid mounting worries the coronavirus outbreak will dent global economic growth. The Dow slid more than two per cent losing more than 600 points in its worst session since August as the three largest US carriers halted all service to China. Just after markets closed, US authorities declared a public health emergency, and starting Sunday will ban entry into the country of any foreign national who has travelled to China in the past two weeks, while quarantining Americans who have made the trip. Major European markets slid more than one per cent, including London, where equities were weakened by a stronger pound in the final session before Britain was due to leave the European Union. Also read: Experts say bats could be behind deadly coronavirus outbreak Asian equity markets also were gripped by virus fears in a volatile end to the week, although Japan's Nikkei finished higher. At least 213 people have died and nearly 10,000 people have been infected in China by the novel coronavirus, while fresh cases were found abroad with more than 20 countries now affected. "Unless a cure is found, this could push a fragile world economic recovery into reverse," warned Douglas McWilliams, deputy chairman at British research group the Centre for Economics and Business Research (CEBR). Oxford Economics analysts said the outbreak would have a large short-term impact on Chinese economic growth and possibly curb global GDP growth by 0.2 percentage points this year. Also read: To mask or not to mask: Confusion spreads over coronavirus protection "It's increasingly apparent the disease is becoming an economic as well as a public health concern," they said. The WHO invoked a global health emergency on coronavirus -- but stopped short of recommending trade and travel restrictions that could have had a bruising effect on China, a key global growth engine. After initially applauding the WHO action, investor fear returned as Britain confirmed its first cases and Italy declared a state of emergency to fast-track efforts to prevent its spread after two cases were confirmed in Rome. Quincy Krosby, the chief market strategist at Prudential Financial, said the outbreak has raised doubts about whether growth would accelerate in the aftermath of the US-China trade detente. "We expected to see global growth," she said. "What this does is perhaps slows that down and adds more uncertainties." Krosby said the outbreak also could pose problems for companies with supply chain dependent on China. Separately, the EU's official statistics agency announced Friday that the 19-member single currency area already suffered a sharp slowdown after a turbulent year of Brexit uncertainty and trade spats with US President Donald Trump. The eurozone economy grew 1.2 per cent over the year, down from 1.8 per cent in 2018 and well off the 2.7 per cent seen in 2017. Losses were broad-based on Wall Street, but an exception was Amazon, which surged 7.4 per cent after releasing quarterly earnings results for the holiday period that trounced market expectations.

Stocks struggle as China virus sparks fear for world economy

The International Monetary Fund has slashed its estimate on India’s 2019 economic growth to 5.8% from the 6.1% expansion it projected in October, citing a sharper-than-expected slowdown in local demand and stress in the non-bank financial sector.

WION Dispatch: IMF: 'Slowdown in India is a drag on world economy'

Strong German exports to the United States helped Europe's largest economy to avoid a recession in the third quarter, data showed on Thursday, as companies benefitted from a weaker euro and trade diversion linked to the US - China tariff dispute.

The detailed trade figures underline that US&nbsp;demand for German goods remain strong, undaunted by President<a href="https://www.wionews.com/photos/many-protesters-holed-up-in-university-as-hong-kong-protests-simmer-down-263617"> Donald Trump</a>'s threats to increase import tariffs on European cars.

Germany's export-reliant economy avoided slipping into recession in the third quarter as consumers, state spending and construction drove a 0.1 per cent quarterly expansion. Exports also fared better than in the previous three months.

Overall, exports grew 1.7&nbsp;per cent&nbsp;year-on-year in the third quarter after a 1.3 per cent decline in the second, with United States and France remaining Germany's two biggest customers, data compiled for Reuters from the Federal Statistics Office showed.

German exports to the US&nbsp;grew 7.6&nbsp;per cent&nbsp;year-on-year in the third quarter after a 5.3&nbsp;per cent&nbsp;increase in the previous three months. Exports to France rose 3.1 per cent year-on-year after stagnating in the second quarter.

"Exports to the US&nbsp;are running smoothly," Gabriel Felbermayr, president of the <a href="https://www.wionews.com/opinions/global-protests-russia-and-china-risk-ending-up-on-the-wrong-side-of-history-259875">Kiel Institute</a> for the World Economy, told Reuters, adding that the euro had depreciated by 14&nbsp;per cent&nbsp;against the US&nbsp;dollar since the beginning of 2018. A weaker euro makes German exports less expensive.

"The strong dollar is one of the macroeconomic side effects of Trump's trade policy towards China. It leads to trade diversion," Felbermayr said. That means the United States is increasingly buying goods from the European Union and Germany as tariffs make competing imports from China more expensive.

The United States and China are locked in a trade war triggered by Trump. Both countries have levied punitive duties on hundreds of billions of dollars worth of each other's goods, roiling financial markets and threatening global growth.

But Felbermayr cautioned that the uncertainty created by Trump's trade policy in the medium term will lead to stronger production of German companies in the United States, which will weaken exports.

"The relocation of jobs is already taking place but is not yet visible in the export figures," he said.

The strong sales to the United States and France helped Germany to offset stagnating exports to China. They edged up only 0.3&nbsp;per cent&nbsp;year-on-year in the third quarter, compared with annual export growth rates of 1.8&nbsp;per cent&nbsp;in the second quarter and 6.3 per cent in the first.

That suggests Germany can no longer rely on Chinese demand to fuel its export machine and with it, well-paid manufacturing jobs and tax revenues at home.

Strong German exports to the United States helped Europe's largest economy to avoid a recession in the third quarter, data showed on Thursday, as companies benefitted from a weaker euro and trade diversion linked to the US - China tariff dispute.

Strong German exports to the United States helped Europe's largest economy to avoid a recession in the third quarter, data showed on Thursday, as companies benefitted from a weaker euro and trade diversion linked to the US - China tariff dispute. The detailed trade figures underline that US demand for German goods remain strong, undaunted by President Donald Trump's threats to increase import tariffs on European cars. Germany's export-reliant economy avoided slipping into recession in the third quarter as consumers, state spending and construction drove a 0.1 per cent quarterly expansion. Exports also fared better than in the previous three months. Overall, exports grew 1.7 per cent year-on-year in the third quarter after a 1.3 per cent decline in the second, with United States and France remaining Germany's two biggest customers, data compiled for Reuters from the Federal Statistics Office showed. German exports to the US grew 7.6 per cent year-on-year in the third quarter after a 5.3 per cent increase in the previous three months. Exports to France rose 3.1 per cent year-on-year after stagnating in the second quarter. "Exports to the US are running smoothly," Gabriel Felbermayr, president of the Kiel Institute for the World Economy, told Reuters, adding that the euro had depreciated by 14 per cent against the US dollar since the beginning of 2018. A weaker euro makes German exports less expensive. "The strong dollar is one of the macroeconomic side effects of Trump's trade policy towards China. It leads to trade diversion," Felbermayr said. That means the United States is increasingly buying goods from the European Union and Germany as tariffs make competing imports from China more expensive. The United States and China are locked in a trade war triggered by Trump. Both countries have levied punitive duties on hundreds of billions of dollars worth of each other's goods, roiling financial markets and threatening global growth. But Felbermayr cautioned that the uncertainty created by Trump's trade policy in the medium term will lead to stronger production of German companies in the United States, which will weaken exports. "The relocation of jobs is already taking place but is not yet visible in the export figures," he said. The strong sales to the United States and France helped Germany to offset stagnating exports to China. They edged up only 0.3 per cent year-on-year in the third quarter, compared with annual export growth rates of 1.8 per cent in the second quarter and 6.3 per cent in the first. That suggests Germany can no longer rely on Chinese demand to fuel its export machine and with it, well-paid manufacturing jobs and tax revenues at home.

German exports to United States jump despite trade tensions

The top 200 Chinese companies spanning consumer, technology, industrial, property and financial industries reported September quarter earnings well ahead of market expectations, setting them up for a strong showing next year, analysts said.

These companies mostly beat lowered market expectations as consumer spending remained strong, boosted by Chinese shoppers who opted to buy at home than to travel abroad, as a weaker yuan inflated travel costs.

Profits at Chinese companies grew 10 per cent&nbsp;in the July-September period, beating the 2 per cent&nbsp;growth rate analysts had predicted, and ahead of&nbsp;China's slowing economic growth rate. Only companies with a market capitalization of over $1 billion and tracked by at least three analysts are covered in this analysis.

"The sectors that were expected to suffer from the <a href="https://www.wionews.com/world/china-us-had-constructive-phone-call-on-trade-report-262656">US-China&nbsp;trade conflict</a> — the tech hardware exporters, textiles and sports goods exporters — have largely outperformed consensus expectations," said Manishi Raychaudhuri, head of equity research at BNP Paribas Asia Pacific.

Raychaudhuri added that earnings growth at Asian companies, excluding Japan, is likely to bounce back in 2020, partly as trade concerns recede.

Below is a report card of the third quarter for Asian companies and expectations for next year.

- Online retail giants <a href="https://www.wionews.com/business-economy/alibaba-launches-134-billion-hong-kong-listing-to-fund-expansion-261906">Alibaba Group Holding Ltd</a> and JD.com Inc posted strong sales as people bought baby products and sports gear. Western luxury and mass-market consumer companies had a good quarter as well.

- Overall, profitability at 1,625 Asian firms fell 5 per cent, versus an expected 6 per cent&nbsp;decline, according to a Reuters analysis of Refinitiv data. Results outperformed estimates for the first time in five quarters.

- Hong Kong-listed firms are not included in this analysis, as most of them announce earnings results on a semi-annual basis.

- Profits at 346 South Korean firms nearly halved, dragged down by lower chip prices and a fluctuation in commodity prices.

- Profit at Samsung Electronics Co Ltd fell 56 per cent. Smaller rival SK Hynix Inc posted its lowest profit in three years. Steelmaker Posco's earnings plunged by a third as iron ore prices rose.

- Profits at 201 Indian firms rose 29.5 per cent, led by consumer staples, financial and healthcare firms and helped by a corporate tax cut.

- Profits at 673 Japanese firms which exclude SoftBank Group Corp, fell 1 per cent, in line with estimates, as the yen firmed and demand fell for export items such as cars and machinery.

- The top three Japanese steelmakers and carmakers Suzuki Motor Corp and Mitsubishi Motors Corp have reduced their annual profit forecasts.

- Analysts expect profits at Asian firms to jump 13 per cent&nbsp;in 2020, versus a 5 per cent&nbsp;estimated increase this year, helped partly by recovering global demand as trade worries ease further.

The top 200 Chinese companies spanning consumer, technology, industrial, property and financial industries reported September quarter earnings well ahead of market expectations, setting them up for a strong showing next year, analysts said.

The top 200 Chinese companies spanning consumer, technology, industrial, property and financial industries reported September quarter earnings well ahead of market expectations, setting them up for a strong showing next year, analysts said. These companies mostly beat lowered market expectations as consumer spending remained strong, boosted by Chinese shoppers who opted to buy at home than to travel abroad, as a weaker yuan inflated travel costs. Profits at Chinese companies grew 10 per cent in the July-September period, beating the 2 per cent growth rate analysts had predicted, and ahead of China's slowing economic growth rate. Only companies with a market capitalization of over $1 billion and tracked by at least three analysts are covered in this analysis. "The sectors that were expected to suffer from the US-China trade conflict — the tech hardware exporters, textiles and sports goods exporters — have largely outperformed consensus expectations," said Manishi Raychaudhuri, head of equity research at BNP Paribas Asia Pacific. Raychaudhuri added that earnings growth at Asian companies, excluding Japan, is likely to bounce back in 2020, partly as trade concerns recede. Below is a report card of the third quarter for Asian companies and expectations for next year. - Online retail giants Alibaba Group Holding Ltd and JD.com Inc posted strong sales as people bought baby products and sports gear. Western luxury and mass-market consumer companies had a good quarter as well. - Overall, profitability at 1,625 Asian firms fell 5 per cent, versus an expected 6 per cent decline, according to a Reuters analysis of Refinitiv data. Results outperformed estimates for the first time in five quarters. - Hong Kong-listed firms are not included in this analysis, as most of them announce earnings results on a semi-annual basis. - Profits at 346 South Korean firms nearly halved, dragged down by lower chip prices and a fluctuation in commodity prices. - Profit at Samsung Electronics Co Ltd fell 56 per cent. Smaller rival SK Hynix Inc posted its lowest profit in three years. Steelmaker Posco's earnings plunged by a third as iron ore prices rose. - Profits at 201 Indian firms rose 29.5 per cent, led by consumer staples, financial and healthcare firms and helped by a corporate tax cut. - Profits at 673 Japanese firms which exclude SoftBank Group Corp, fell 1 per cent, in line with estimates, as the yen firmed and demand fell for export items such as cars and machinery. - The top three Japanese steelmakers and carmakers Suzuki Motor Corp and Mitsubishi Motors Corp have reduced their annual profit forecasts. - Analysts expect profits at Asian firms to jump 13 per cent in 2020, versus a 5 per cent estimated increase this year, helped partly by recovering global demand as trade worries ease further.

What trade war? Chinese companies wow with third quarter report card

Hopes for a trade deal between the <a href="https://www.wionews.com/world/china-us-had-constructive-phone-call-on-trade-report-262656">Unit</a>ed States and China and expectations that OPEC would extend production cuts supported oil prices on Monday, helping them hold on to last week's gains.

Brent crude futures, which rose 1.3 per cent&nbsp;last week, were little changed, trading at above $63 per barrel at 1100 GMT.

West Texas Intermediate (WTI) crude was also flat at $57.7 a barrel, having gained 0.8 per cent&nbsp;last week.

Oil rose on Friday as comments from a top US&nbsp;official raised optimism for a <a href="https://www.wionews.com/world/china-us-had-constructive-phone-call-on-trade-report-262656">US-China trade deal</a>, although worries about increasing crude supplies capped prices.

"In the short term, US-China trade talks and (the) OPEC meeting in early December are the two biggest events oil traders are watching for," Margaret Yang, an analyst at CMC Markets, said.

The 16-month trade war between the world's two biggest economies has slowed global growth, prompting analysts to lower forecasts for oil demand growth and raising concerns that a supply glut could develop in 2020.

China and the United States had "constructive talks" on trade in a high-level call on Saturday, state media Xinhua reported on Sunday, but it gave few other details.

In a signal that policymakers are ready to act to prop up slowing growth, China's central bank unexpectedly trimmed a closely-watched lending rate on Monday, the first such cut in more than four years.

The Organization of the Petroleum Exporting Countries (OPEC) said last week it expected demand for its oil to fall in 2020, supporting a view that there is a case for the group and other producers like Russia - collectively known as 'OPEC+' - to maintain limits on production that were introduced to cope with a supply glut.

OPEC and its allies are expected to discuss output policy at a meeting on December&nbsp;5-6 in Vienna. Their existing production deal runs until March.

US&nbsp;energy firms this week reduced the number of oil rigs operating for a fourth week in a row.

Hopes for a trade deal between the United States and China and expectations that OPEC would extend production cuts supported oil prices on Monday, helping them hold on to last week's gains.

Hopes for a trade deal between the United States and China and expectations that OPEC would extend production cuts supported oil prices on Monday, helping them hold on to last week's gains. Brent crude futures, which rose 1.3 per cent last week, were little changed, trading at above $63 per barrel at 1100 GMT. West Texas Intermediate (WTI) crude was also flat at $57.7 a barrel, having gained 0.8 per cent last week. Oil rose on Friday as comments from a top US official raised optimism for a US-China trade deal, although worries about increasing crude supplies capped prices. "In the short term, US-China trade talks and (the) OPEC meeting in early December are the two biggest events oil traders are watching for," Margaret Yang, an analyst at CMC Markets, said. The 16-month trade war between the world's two biggest economies has slowed global growth, prompting analysts to lower forecasts for oil demand growth and raising concerns that a supply glut could develop in 2020. China and the United States had "constructive talks" on trade in a high-level call on Saturday, state media Xinhua reported on Sunday, but it gave few other details. In a signal that policymakers are ready to act to prop up slowing growth, China's central bank unexpectedly trimmed a closely-watched lending rate on Monday, the first such cut in more than four years. The Organization of the Petroleum Exporting Countries (OPEC) said last week it expected demand for its oil to fall in 2020, supporting a view that there is a case for the group and other producers like Russia - collectively known as 'OPEC+' - to maintain limits on production that were introduced to cope with a supply glut. OPEC and its allies are expected to discuss output policy at a meeting on December 5-6 in Vienna. Their existing production deal runs until March. US energy firms this week reduced the number of oil rigs operating for a fourth week in a row.

Oil prices hold above $63 on trade talk optimism, OPEC

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in <a href="https://www.wionews.com/videos/hong-kong-protests-turn-violent-police-shoot-protester-amid-clashes-261252">Hong Kong</a>, while uncertainty still remained over whether the United States and China could end their damaging trade war.

Hong Kong's Hang Seng index led the losses in Asia, down more than 2 per cent, after police fired live rounds at protestors on the eastern side of Hong Kong island. Cable TV and other Hong Kong media reported at least one protester being wounded. Video footage showed a protester lying in a pool of blood.

Chinese shares too faltered with the blue-chip CSI300 index down 1.3 per cent. South Korea's KOSPI lost 0.4 per cent.

Japan's Nikkei gave up early gains to drift away from a recent 13-month high after data showed the country's core machinery orders fell for a third straight month.

Australian shares bucked the downbeat trend, rising 0.55 per cent&nbsp;to a two-week high.

That left MSCI's broadest index of Asia-Pacific shares outside Japan down 0.5 per cent.

"The<a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641"> China-US&nbsp;trade war</a> and the Hong Kong protest are combining to cast a negative pall on Asian markets today," said James McGlew, analyst at stockbroking firm Argonaut.

"Hong Kong protests have been dragging on for a while and the view from the financial world is that it's really starting to bite now. The further this drags on it's certainly going to be very negative."

In Asian hours on Monday, E-minis for the S&amp;P500 were 0.25 per cent&nbsp;lower indicating a weak open later in the day.

US&nbsp;bond markets are closed on Monday, but currency and equity markets are open.

Gold, which rises during times of uncertainty, rebounded from a three-month low touched on Friday to be last up 0.3 per cent&nbsp;at $1,462.11 an ounce.

In currencies, the Japanese yen gained on the dollar to 109.01 while the Australian dollar, a liquid gauge for risk, was off slightly at $0.6853.

The dollar index was a touch softer at 98.33 while the euro ticked up to $1.1022.

Market attention was also on the US-China trade talks.

<a href="https://www.wionews.com/world/trump-faces-perilous-test-as-impeachment-hearings-open-261230">US&nbsp;President Donald Trump </a>told reporters on Saturday that talks with China had moved more slowly than he would have liked, but added that Beijing wanted a deal more than he did.

That was a more upbeat tone than just a few days earlier when he had stressed that the White House would not agree to a full rollback of existing tariffs, remarks that hit stock prices and the dollar.

"Despite his bluster that 'China wants a trade deal more than I do', markets sense that Trump is likely quite keen to call a truce on what is becoming a serious U.S. economic risk heading into the 2020 election year," said David Bassanese, Sydney-based economist at Betashares.

By the close of Wall Street on Friday, optimism had returned to the market as investors bet that Washington needs a deal and it is in the interest of China, too. All three major US&nbsp;indexes eked out record closing highs.

The Dow inched up while the S&amp;P 500 climbed 0.3 per cent&nbsp;and the Nasdaq Composite added 0.5 per cent. The record closing high by the S&amp;P 500 was the fourth in six sessions.

"It will be the US-China trade talks that will continue to dictate the daily swings in sentiment this week," said Jeffrey Halley, senior analyst at OANDA.

Halley noted the negotiations were "starting to drag on in a disturbingly Brexit-like manner," referring to Britain's divorce deal with the European Union which is still up in the air almost three years after the country voted to leave the bloc.

US&nbsp;officials said a lot of work remained to be done when Trump announced the outlines of an interim deal last month, and Beijing has since pushed back on US&nbsp;demands for big agricultural purchases, among other issues.

Analysts said the outlook for equities was highly dependent on US&nbsp;economic data as a US-China trade agreement would help bolster manufacturing and industrial sectors.

"The Hong Kong protests have seen a knee-jerk rotation out of risk positioning," OANDA's Halley said. "The effects are more likely to be passing than permanent...as long as the trade talks stay on target."

Data on October US&nbsp;industrial production and retail sales, along with the National Federation of Independent Business's monthly small business survey, are scheduled for release this week.

In commodities, benchmark Brent crude fell 57 cents to $61.94 a barrel while West Texas Intermediate (WTI) crude slipped 48 cents to $56.76 a barrel.

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in Hong Kong, while uncertainty still remained over whether the United States and China could end their damaging trade war.

Asian shares sank on Monday, the safe-haven yen rose and gold jumped as fresh violence broke out in Hong Kong, while uncertainty still remained over whether the United States and China could end their damaging trade war. Hong Kong's Hang Seng index led the losses in Asia, down more than 2 per cent, after police fired live rounds at protestors on the eastern side of Hong Kong island. Cable TV and other Hong Kong media reported at least one protester being wounded. Video footage showed a protester lying in a pool of blood. Chinese shares too faltered with the blue-chip CSI300 index down 1.3 per cent. South Korea's KOSPI lost 0.4 per cent. Japan's Nikkei gave up early gains to drift away from a recent 13-month high after data showed the country's core machinery orders fell for a third straight month. Australian shares bucked the downbeat trend, rising 0.55 per cent to a two-week high. That left MSCI's broadest index of Asia-Pacific shares outside Japan down 0.5 per cent. "The China-US trade war and the Hong Kong protest are combining to cast a negative pall on Asian markets today," said James McGlew, analyst at stockbroking firm Argonaut. "Hong Kong protests have been dragging on for a while and the view from the financial world is that it's really starting to bite now. The further this drags on it's certainly going to be very negative." In Asian hours on Monday, E-minis for the S&P500 were 0.25 per cent lower indicating a weak open later in the day. US bond markets are closed on Monday, but currency and equity markets are open. Gold, which rises during times of uncertainty, rebounded from a three-month low touched on Friday to be last up 0.3 per cent at $1,462.11 an ounce. In currencies, the Japanese yen gained on the dollar to 109.01 while the Australian dollar, a liquid gauge for risk, was off slightly at $0.6853. The dollar index was a touch softer at 98.33 while the euro ticked up to $1.1022. Market attention was also on the US-China trade talks. US President Donald Trump told reporters on Saturday that talks with China had moved more slowly than he would have liked, but added that Beijing wanted a deal more than he did. That was a more upbeat tone than just a few days earlier when he had stressed that the White House would not agree to a full rollback of existing tariffs, remarks that hit stock prices and the dollar. "Despite his bluster that 'China wants a trade deal more than I do', markets sense that Trump is likely quite keen to call a truce on what is becoming a serious U.S. economic risk heading into the 2020 election year," said David Bassanese, Sydney-based economist at Betashares. By the close of Wall Street on Friday, optimism had returned to the market as investors bet that Washington needs a deal and it is in the interest of China, too. All three major US indexes eked out record closing highs. The Dow inched up while the S&P 500 climbed 0.3 per cent and the Nasdaq Composite added 0.5 per cent. The record closing high by the S&P 500 was the fourth in six sessions. "It will be the US-China trade talks that will continue to dictate the daily swings in sentiment this week," said Jeffrey Halley, senior analyst at OANDA. Halley noted the negotiations were "starting to drag on in a disturbingly Brexit-like manner," referring to Britain's divorce deal with the European Union which is still up in the air almost three years after the country voted to leave the bloc. US officials said a lot of work remained to be done when Trump announced the outlines of an interim deal last month, and Beijing has since pushed back on US demands for big agricultural purchases, among other issues. Analysts said the outlook for equities was highly dependent on US economic data as a US-China trade agreement would help bolster manufacturing and industrial sectors. "The Hong Kong protests have seen a knee-jerk rotation out of risk positioning," OANDA's Halley said. "The effects are more likely to be passing than permanent...as long as the trade talks stay on target." Data on October US industrial production and retail sales, along with the National Federation of Independent Business's monthly small business survey, are scheduled for release this week. In commodities, benchmark Brent crude fell 57 cents to $61.94 a barrel while West Texas Intermediate (WTI) crude slipped 48 cents to $56.76 a barrel.

Global Markets: Asian shares a sea of red as Hong Kong chaos hits sentiment

Oil&nbsp;prices&nbsp;edged&nbsp;up&nbsp;on Friday after a difficult week but were still headed for&nbsp;losses of about 4 per cent, hit by a combination of&nbsp;rising&nbsp;global supply and uncertain future demand.

US&nbsp;crude&nbsp;rose for the first time in four days, gaining 18 cents, or 0.3 per cent, to $54.36 a barrel by 0339 GMT. The contract was&nbsp;set&nbsp;for a&nbsp;weekly&nbsp;loss&nbsp;of more than 4 per cent.

Brent crude&nbsp;was&nbsp;up&nbsp;5 cents, or 0.1 per cent, at $59.67 a barrel, leaving it on track for a drop of nearly 4 per cent.

Worries over global economic growth, along with&nbsp;oil&nbsp;demand, continue to haunt the market as leaders from the United States and China struggle to end a 16-month dispute that has roiled&nbsp;trade&nbsp;between the world's top two economies.

"Concerns about the <a href="https://www.wionews.com/world/trump-new-location-for-united-states-china-trade-deal-signing-to-be-announced-soon-259106">US-China&nbsp;trade&nbsp;dispute </a>have come home to roost," said Stephen Innes, Asia Pacific market strategist at AxiTrader.

The market received some respite from a run of poor economic data after an unexpected bounce in a private sector survey of Chinese manufacturing activity on Friday, which contrasted with the dour results of an official survey Thursday.

Japanese factory activity, however, sank to more than a three-year low in October, data showed on Friday, in a fresh warning sign for the world's third-largest economy.

US&nbsp;crude inventories&nbsp;rose by 5.7 million barrels in the week to October&nbsp;25, dwarfing analyst expectations for an increase of just 494,000 barrels.

A Reuters survey showed that&nbsp;oil&nbsp;prices&nbsp;are likely to remain under pressure this year and next. The poll of 51 economists and analysts forecast Brent crude would average $64.16 a barrel in 2019 and $62.38 next year.

Meanwhile, US&nbsp;crude production soared nearly 600,000 barrels per day in August to a record of 12.4 million, buoyed by a 30 per cent&nbsp;increase in Gulf of Mexico&nbsp;output, according to government data released on Thursday.

Those numbers came as a Reuters survey found&nbsp;output&nbsp;from Organization of the Petroleum Exporting Countries (OPEC) recovered in October from an eight-year low, with rapid recovery in Saudi Arabian production from attacks on&nbsp;oil&nbsp;plants more than offsetting&nbsp;losses in Ecuador and voluntary curbs under a supply pact.

Oil prices edged up on Friday after a difficult week but were still headed for losses of about 4 per cent, hit by a combination of rising global supply and uncertain future demand.

Oil prices edged up on Friday after a difficult week but were still headed for losses of about 4 per cent, hit by a combination of rising global supply and uncertain future demand. US crude rose for the first time in four days, gaining 18 cents, or 0.3 per cent, to $54.36 a barrel by 0339 GMT. The contract was set for a weekly loss of more than 4 per cent. Brent crude was up 5 cents, or 0.1 per cent, at $59.67 a barrel, leaving it on track for a drop of nearly 4 per cent. Worries over global economic growth, along with oil demand, continue to haunt the market as leaders from the United States and China struggle to end a 16-month dispute that has roiled trade between the world's top two economies. "Concerns about the US-China trade dispute have come home to roost," said Stephen Innes, Asia Pacific market strategist at AxiTrader. The market received some respite from a run of poor economic data after an unexpected bounce in a private sector survey of Chinese manufacturing activity on Friday, which contrasted with the dour results of an official survey Thursday. Japanese factory activity, however, sank to more than a three-year low in October, data showed on Friday, in a fresh warning sign for the world's third-largest economy. US crude inventories rose by 5.7 million barrels in the week to October 25, dwarfing analyst expectations for an increase of just 494,000 barrels. A Reuters survey showed that oil prices are likely to remain under pressure this year and next. The poll of 51 economists and analysts forecast Brent crude would average $64.16 a barrel in 2019 and $62.38 next year. Meanwhile, US crude production soared nearly 600,000 barrels per day in August to a record of 12.4 million, buoyed by a 30 per cent increase in Gulf of Mexico output, according to government data released on Thursday. Those numbers came as a Reuters survey found output from Organization of the Petroleum Exporting Countries (OPEC) recovered in October from an eight-year low, with rapid recovery in Saudi Arabian production from attacks on oil plants more than offsetting losses in Ecuador and voluntary curbs under a supply pact.

Oil prices edge up, but set for big weekly loss on rising output, trade woes

Oil prices slipped on Tuesday as investors awaited US&nbsp;crude inventory data for a pointer on oil demand trends, while concerns about slower economic growth overshadowed signs of a thawing in the trade war between Washington and Beijing.

Brent&nbsp;futures were down 6 cents at $61.51 a barrel by 0311 GMT, having fallen 0.7 per cent&nbsp;on Monday.

US&nbsp;West Texas Intermediate (WTI)&nbsp;crude was down 12 cents at $55.69, after falling 1.5 per cent&nbsp;in the previous session.

Prices rose sharply last week amid a decline in US&nbsp;inventories and signs of an easing in the <a href="https://www.wionews.com/world/united-states-china-close-to-finalising-part-of-a-phase-one-trade-deal-report-258209">US-China trade war</a>, but worries on Monday about weaker economic growth offset hopes of a rise in oil demand even if trade talks progress.

"The inventory read last week is still reverberating through trading, although we did see that finally start to give way last night, but we can see there is very little appetite to go on with it today," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

US&nbsp;crude inventories were forecast to have increased by around 700,000 barrels last week, according to a Reuters poll of analysts, having unexpectedly fallen the previous week, the first decline in six weeks.

US&nbsp;crude oil stockpiles at Cushing, Oklahoma, the delivery point for WTI, have risen by about 1.5 million barrels in the week through Oct. 25, traders said earlier, citing data from market intelligence firm Genscape.

The American Petroleum Institute releases industry data later on Tuesday, while the US&nbsp;government's Energy Information Administration releases inventory data on Wednesday.&nbsp;

The United States Trade Representative is studying whether to extend tariff suspensions on $34 billion of Chinese goods set to expire on December&nbsp;28 this year, the agency said on Monday.

US&nbsp;President <a href="https://www.wionews.com/videos/donald-trump-isis-chief-baghdadi-died-like-a-dog-258480">Donald Trump </a>said earlier on Monday he expected to sign a significant part of the trade deal with China ahead of schedule but did not elaborate on the timing.

Leaders of the world's two biggest economies are working to agree on the text for a "Phase 1" trade agreement announced by Trump on October&nbsp;11. Trump has said he hopes to sign the deal with China's President Xi Jinping next month at a summit in Chile.

The trade war has hit economic growth around the world and kept oil prices range-bound for months.

Oil prices slipped on Tuesday as investors awaited US crude inventory data for a pointer on oil demand trends, while concerns about slower economic growth overshadowed signs of a thawing in the trade war between Washington and Beijing.

Oil prices slipped on Tuesday as investors awaited US crude inventory data for a pointer on oil demand trends, while concerns about slower economic growth overshadowed signs of a thawing in the trade war between Washington and Beijing. Brent futures were down 6 cents at $61.51 a barrel by 0311 GMT, having fallen 0.7 per cent on Monday. US West Texas Intermediate (WTI) crude was down 12 cents at $55.69, after falling 1.5 per cent in the previous session. Prices rose sharply last week amid a decline in US inventories and signs of an easing in the US-China trade war, but worries on Monday about weaker economic growth offset hopes of a rise in oil demand even if trade talks progress. "The inventory read last week is still reverberating through trading, although we did see that finally start to give way last night, but we can see there is very little appetite to go on with it today," said Michael McCarthy, chief market strategist at CMC Markets in Sydney. US crude inventories were forecast to have increased by around 700,000 barrels last week, according to a Reuters poll of analysts, having unexpectedly fallen the previous week, the first decline in six weeks. US crude oil stockpiles at Cushing, Oklahoma, the delivery point for WTI, have risen by about 1.5 million barrels in the week through Oct. 25, traders said earlier, citing data from market intelligence firm Genscape. The American Petroleum Institute releases industry data later on Tuesday, while the US government's Energy Information Administration releases inventory data on Wednesday. The United States Trade Representative is studying whether to extend tariff suspensions on $34 billion of Chinese goods set to expire on December 28 this year, the agency said on Monday. US President Donald Trump said earlier on Monday he expected to sign a significant part of the trade deal with China ahead of schedule but did not elaborate on the timing. Leaders of the world's two biggest economies are working to agree on the text for a "Phase 1" trade agreement announced by Trump on October 11. Trump has said he hopes to sign the deal with China's President Xi Jinping next month at a summit in Chile. The trade war has hit economic growth around the world and kept oil prices range-bound for months.

Oil prices edge lower ahead of US stockpile numbers

Asian shares rose to a three-month high on Monday, as risk assets got a fillip from hopes of a <a href="https://www.wionews.com/world/united-states-china-close-to-finalising-part-of-a-phase-one-trade-deal-report-258209">trade deal </a>and strong US&nbsp;corporate earnings, while major currencies marked time as focus shifted to a Federal Reserve rate decision.

European shares are expected to edge up, with pan-European Euro Stoxx 50 futures&nbsp;and German DAX futures&nbsp;traded up slightly ahead of European trade.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 per cent&nbsp;for its third straight day of gains to the highest since late July.

Leading the gains were Chinese and Hong Kong shares. The CSI300&nbsp;of blue-chip mainland shares were up 0.6 per cent&nbsp;and Hong Kong's Hang Seng index&nbsp;jumped 1.0 per cent.

Japan's Nikkei&nbsp;was also upbeat, rising 0.3 per cent&nbsp;to a one-year high.

The gains came after a positive session in US&nbsp;and European markets on Friday.

US&nbsp;and Chinese officials are "close to finalising" some parts of a trade agreement after high-level telephone discussions on Friday, the US&nbsp;Trade Representative's office and China's Commerce Ministry said, with talks to continue.

US&nbsp;President Donald Trump has said he hopes to sign the deal with China's President Xi Jinping next month at a summit in Chile.

The protracted trade war between the world's largest economies has hurt manufacturing activity, exports and business confidence globally while denting profits of many major industrial firms.

"Up until now, uncertainties from the US-China trade have held companies from spending and hiring. But if they will come to a deal, that will mark a major turning point in economic sentiment," said Tatsushi Maeno, senior strategist at Okasan Asset Management in Tokyo.

Optimism that Beijing and Washington were finally close to resolving their dispute led the S&amp;P500&nbsp;to surpass its July 26 closing record of 3,025.86, though it ended a tad below that level on Friday. The S&amp;P 500's total return index&nbsp;posted an all-time high.

E-mini futures for the S&amp;P 500 started firm on Monday, up 0.15 per cent.

Strong results from companies including Intel&nbsp;also boosted sentiment in equities markets. More than 81 per cent&nbsp;of US&nbsp;companies have beaten Wall Street expectations so far this earnings season despite concerns about the trade war.

Investors next await earnings from the likes of Alphabet Inc, Apple, Facebook and Exxon.

Activity later in the week will be dominated by the US&nbsp;Federal Reserve, which markets expect is all but certain to lower interest rates at its Wednesday meeting.

The Bank of Japan meets on Thursday. On Friday, indicators for Chinese and US&nbsp;manufacturing will be released.

"The outcome of the FOMC policy meeting will most likely draw the largest market reaction," said Richard Grace, Sydney-based chief currency strategist at Commonwealth Bank.

"We also think the risk is the FOMC will articulate a pause," for future rate decisions, Grace added.

"That means the 27.6 per cent&nbsp;pricing for an additional 25 bps cut in December will quickly evaporate, sending US&nbsp;yields and the USD higher."

In currencies, the dollar index&nbsp;was flat at 97.817 against a basket of six major currencies. The Japanese yen was little changed at 108.73 to the dollar.

Sterling&nbsp;was last trading at $1.2822, a tad below Friday's close.

The European Union agreed to London's request for a<a href="https://www.wionews.com/videos/european-union-agrees-in-principle-to-extend-brexit-258217"> Brexit deadline extension</a> but set no new departure date. That gave Britain's divided parliament time to decide on Prime Minister Boris Johnson's call for a snap election.

Earlier, sources told Reuters the 27 European Union countries that will remain after Brexit hope to agree on Monday to delay Britain's divorce until Jan. 31 with an earlier departure possible.

The euro trod water too at $1.1083.

"It feels like the calm before a potential storm, where the event risk heats up with political twists and turns, key economic data and central bank meetings," said Chris Weston, Sydney-based strategist at Pepperstone.

Oil prices eased after strong gains last week.

US&nbsp;crude&nbsp;slipped 14 cents to $56.52 a barrel, while Brent&nbsp;edged down 12 cents to $61.90.

Spot gold&nbsp;quoted at $1,506.3 an ounce.

Asian shares rose to a three-month high on Monday, as risk assets got a fillip from hopes of a trade deal and strong US corporate earnings, while major currencies marked time as focus shifted to a Federal Reserve rate decision.

Asian shares rose to a three-month high on Monday, as risk assets got a fillip from hopes of a trade deal and strong US corporate earnings, while major currencies marked time as focus shifted to a Federal Reserve rate decision. European shares are expected to edge up, with pan-European Euro Stoxx 50 futures and German DAX futures traded up slightly ahead of European trade. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 per cent for its third straight day of gains to the highest since late July. Leading the gains were Chinese and Hong Kong shares. The CSI300 of blue-chip mainland shares were up 0.6 per cent and Hong Kong's Hang Seng index jumped 1.0 per cent. Japan's Nikkei was also upbeat, rising 0.3 per cent to a one-year high. The gains came after a positive session in US and European markets on Friday. US and Chinese officials are "close to finalising" some parts of a trade agreement after high-level telephone discussions on Friday, the US Trade Representative's office and China's Commerce Ministry said, with talks to continue. US President Donald Trump has said he hopes to sign the deal with China's President Xi Jinping next month at a summit in Chile. The protracted trade war between the world's largest economies has hurt manufacturing activity, exports and business confidence globally while denting profits of many major industrial firms. "Up until now, uncertainties from the US-China trade have held companies from spending and hiring. But if they will come to a deal, that will mark a major turning point in economic sentiment," said Tatsushi Maeno, senior strategist at Okasan Asset Management in Tokyo. Optimism that Beijing and Washington were finally close to resolving their dispute led the S&P500 to surpass its July 26 closing record of 3,025.86, though it ended a tad below that level on Friday. The S&P 500's total return index posted an all-time high. E-mini futures for the S&P 500 started firm on Monday, up 0.15 per cent. Strong results from companies including Intel also boosted sentiment in equities markets. More than 81 per cent of US companies have beaten Wall Street expectations so far this earnings season despite concerns about the trade war. Investors next await earnings from the likes of Alphabet Inc, Apple, Facebook and Exxon. Activity later in the week will be dominated by the US Federal Reserve, which markets expect is all but certain to lower interest rates at its Wednesday meeting. The Bank of Japan meets on Thursday. On Friday, indicators for Chinese and US manufacturing will be released. "The outcome of the FOMC policy meeting will most likely draw the largest market reaction," said Richard Grace, Sydney-based chief currency strategist at Commonwealth Bank. "We also think the risk is the FOMC will articulate a pause," for future rate decisions, Grace added. "That means the 27.6 per cent pricing for an additional 25 bps cut in December will quickly evaporate, sending US yields and the USD higher." In currencies, the dollar index was flat at 97.817 against a basket of six major currencies. The Japanese yen was little changed at 108.73 to the dollar. Sterling was last trading at $1.2822, a tad below Friday's close. The European Union agreed to London's request for a Brexit deadline extension but set no new departure date. That gave Britain's divided parliament time to decide on Prime Minister Boris Johnson's call for a snap election. Earlier, sources told Reuters the 27 European Union countries that will remain after Brexit hope to agree on Monday to delay Britain's divorce until Jan. 31 with an earlier departure possible. The euro trod water too at $1.1083. "It feels like the calm before a potential storm, where the event risk heats up with political twists and turns, key economic data and central bank meetings," said Chris Weston, Sydney-based strategist at Pepperstone. Oil prices eased after strong gains last week. US crude slipped 14 cents to $56.52 a barrel, while Brent edged down 12 cents to $61.90. Spot gold quoted at $1,506.3 an ounce.

Asian shares climb to three-month high, currencies mark time

&nbsp;Logitech International SA&nbsp;reported a 4.5 per cent increase in operating income for its latest quarter, the Swiss computer keyboard and gaming accessories maker said on Tuesday.

GAAP operating income increased to $68.1 million in the three months to the end of September from 65.1 million a year earlier, the company said in a statement.

Non-GAAP operating income rose to $89 million from $85 million a year earlier.

Net profit at the world's biggest maker of computer mice was $72.9 million, missing analyst estimates for $82.9 million, according to Refinitiv data.

Sales rose 4 per cent&nbsp;to $720 million, boosted by the performance of fast keyboards, mice and headsets that Logitech makes for players of online games like Fortnite and League of Legends.

Anticipating further growth in the online gaming market, Logitech recently doubled down on its involvement in online sports games, buying live streaming company Streamlabs in a deal worth up to $118 million.

The company confirmed its full-year outlook of expecting mid to high single-digit sales growth in constant currencies and $375 million to $385 million in non-GAAP operating income.

"This quarter, we delivered record sales in video collaboration, which grew nearly 60 per cent, as well as strong growth in our PC peripherals categories," Chief Executive Bracken Darrell said in the statement.

Logitech International SA reported a 4.5 per cent increase in operating income for its latest quarter, the Swiss computer keyboard and gaming accessories maker said on Tuesday.

Logitech International SA reported a 4.5 per cent increase in operating income for its latest quarter, the Swiss computer keyboard and gaming accessories maker said on Tuesday. GAAP operating income increased to $68.1 million in the three months to the end of September from 65.1 million a year earlier, the company said in a statement. Non-GAAP operating income rose to $89 million from $85 million a year earlier. Net profit at the world's biggest maker of computer mice was $72.9 million, missing analyst estimates for $82.9 million, according to Refinitiv data. Sales rose 4 per cent to $720 million, boosted by the performance of fast keyboards, mice and headsets that Logitech makes for players of online games like Fortnite and League of Legends. Anticipating further growth in the online gaming market, Logitech recently doubled down on its involvement in online sports games, buying live streaming company Streamlabs in a deal worth up to $118 million. The company confirmed its full-year outlook of expecting mid to high single-digit sales growth in constant currencies and $375 million to $385 million in non-GAAP operating income. "This quarter, we delivered record sales in video collaboration, which grew nearly 60 per cent, as well as strong growth in our PC peripherals categories," Chief Executive Bracken Darrell said in the statement.

Logitech posts 4.5% rise in quarterly operating income, retains outlook

The British pound fell Tuesday awaiting key Brexit votes on Prime Minister Boris Johnson's<a href="https://www.wionews.com/world/british-prime-minister-boris-johnson-prepares-fresh-brexit-push-257303"> withdrawal agreement bill</a>.

Europe and Asian stock markets rose on growing expectations that China and the United States will sign a partial trade deal next month, dealers said.

Sterling fell further from Monday's five-month peaks, struck after parliament forced Johnson to request <a href="https://www.wionews.com/world/british-pm-boris-johnson-sends-unsigned-letter-seeking-brexit-delay-256989">another extension</a> to Britain's scheduled exit from the European Union.

The pound switched hands at $1.2936 Tuesday, down from $1.2960 late in New York on Monday.

Sterling had earlier Monday spiked $1.3013, the highest level since May.&nbsp;

Johnson published his hotly-awaited withdrawal agreement bill (WAB) late on Monday, with just over a week to go until Brexit on October 31.

"The Brexit saga rumbles on today as MPs debate and vote on the WAB in what is likely to be the first of a few excruciating and long sessions in parliament," said Oanda analyst Craig Erlam.

Johnson faces two crucial Brexit votes that could decide if he still has a reasonable shot at securing his EU divorce by next week's deadline.

Firstly, the Conservative leader hopes parliament gives initial support to a Brexit bill that translates the revised withdrawal agreement he struck with Brussels last week into UK law.

Secondly, he also hopes the lower House of Commons will vote in favour of a speedy timescale to pass the entire legislation in just three days.

The rapid timetable, a big ask for a 110-page text designed to unwind 46 years of intricate EU-UK ties,&nbsp;has sparked outcry from opposition lawmakers.

"The main events of the day will likely come this evening, after the stock market here in London has closed, with parliament set for two key votes on Brexit," said XTB analyst David Cheetham.

Even if the withdrawal bill "passes there’s a fair chance that a vote on the timetable shortly afterwards will fail.

"Several MPs have already voiced their displeasure at the lack of time to scrutinise the bill," he added.

At the same time, Johnson has been forced by parliament to request a three-month extension that <a href="https://www.wionews.com/videos/eu-considers-brexit-extension-boris-johnson-battles-to-save-deal-257370">European leaders will consider</a> once they get a clearer picture of this week's parliamentary votes.

Elsewhere Tuesday, global stock markets gained on modest gains on easing trade war concerns.

US President Donald Trump reinforced hopes Monday that he and Xi Jinping will be able to put pen to paper on a<a href="https://www.wionews.com/world/trump-says-phase-1-china-trade-pact-on-track-for-november-257404"> mini pact</a>, saying China had already started promised purchases of farm goods, and that the first part of a wider commitment was almost complete.

"We'll be able to, we think, sign a completed document with China on phase one," Trump said at the White House, adding they would then move on to the next phases.

Trade Representative Robert Lighthizer said efforts were being made for it to be ready when the leaders meet at the APEC summit next month in Chile.

Trump's economics adviser Larry Kudlow indicated tariffs planned to go into effect in December could be cancelled if the talks go well.

The British pound fell Tuesday awaiting key Brexit votes on Prime Minister Boris Johnson's withdrawal agreement bill. Europe and Asian stock markets rose on growing expectations that China and the United States will sign a partial trade deal next month, dealers said.

The British pound fell Tuesday awaiting key Brexit votes on Prime Minister Boris Johnson's withdrawal agreement bill. Europe and Asian stock markets rose on growing expectations that China and the United States will sign a partial trade deal next month, dealers said. Sterling fell further from Monday's five-month peaks, struck after parliament forced Johnson to request another extension to Britain's scheduled exit from the European Union. The pound switched hands at $1.2936 Tuesday, down from $1.2960 late in New York on Monday. Sterling had earlier Monday spiked $1.3013, the highest level since May. Johnson published his hotly-awaited withdrawal agreement bill (WAB) late on Monday, with just over a week to go until Brexit on October 31. "The Brexit saga rumbles on today as MPs debate and vote on the WAB in what is likely to be the first of a few excruciating and long sessions in parliament," said Oanda analyst Craig Erlam. Johnson faces two crucial Brexit votes that could decide if he still has a reasonable shot at securing his EU divorce by next week's deadline. Firstly, the Conservative leader hopes parliament gives initial support to a Brexit bill that translates the revised withdrawal agreement he struck with Brussels last week into UK law. Secondly, he also hopes the lower House of Commons will vote in favour of a speedy timescale to pass the entire legislation in just three days. The rapid timetable, a big ask for a 110-page text designed to unwind 46 years of intricate EU-UK ties, has sparked outcry from opposition lawmakers. "The main events of the day will likely come this evening, after the stock market here in London has closed, with parliament set for two key votes on Brexit," said XTB analyst David Cheetham. Even if the withdrawal bill "passes there’s a fair chance that a vote on the timetable shortly afterwards will fail. "Several MPs have already voiced their displeasure at the lack of time to scrutinise the bill," he added. At the same time, Johnson has been forced by parliament to request a three-month extension that European leaders will consider once they get a clearer picture of this week's parliamentary votes. Elsewhere Tuesday, global stock markets gained on modest gains on easing trade war concerns. US President Donald Trump reinforced hopes Monday that he and Xi Jinping will be able to put pen to paper on a mini pact, saying China had already started promised purchases of farm goods, and that the first part of a wider commitment was almost complete. "We'll be able to, we think, sign a completed document with China on phase one," Trump said at the White House, adding they would then move on to the next phases. Trade Representative Robert Lighthizer said efforts were being made for it to be ready when the leaders meet at the APEC summit next month in Chile. Trump's economics adviser Larry Kudlow indicated tariffs planned to go into effect in December could be cancelled if the talks go well.

British pound falls ahead of Brexit vote

The number of&nbsp;rich&nbsp;Chinese&nbsp;has surpassed the count of&nbsp;wealthy&nbsp;Americans&nbsp;for the&nbsp;first&nbsp;time&nbsp;as both countries keep churning out millionaires, a study by&nbsp;Credit&nbsp;Suisse&nbsp;showed.

The Swiss bank's annual wealth survey released on Monday found 100 million&nbsp;Chinese&nbsp;ranked in the global top 10 per cent&nbsp;as of the middle of this year versus 99 million in the United States.

"Despite the trade tension between the United States and China over the past 12 months, both countries have fared strongly in wealth creation, contributing $3.8 trillion and $1.9 trillion respectively," said Nannette Hechler-Fayd'herbe, global head of economics and research at&nbsp;Credit&nbsp;Suisse.

The ranks of the world's millionaires have risen by 1.1 million to an estimated 46.8 million, collectively owning $158.3 trillion in net assets, 44 per cent&nbsp;of the global total, the study found.

The United States added more than half of this number – 675,000 new millionaires, to its sizeable stock.

A decline in average wealth in Australia, largely due to exchange rates, resulted in 124,000 fewer millionaires there, while Britain lost 27,000 and Turkey 24,000.

The report estimates that 55,920 adults are worth at least $100 million and 4,830 have net assets above $500 million.

It forecast global wealth, which increased by 2.6 per cent&nbsp;over the past year, would rise by 27 per cent&nbsp;over the next five years to $459 trillion by 2024. The number of millionaires would also grow over this period to almost 63 million.

The share of the world's bottom 90 per cent&nbsp;accounts for 18 per cent&nbsp;of global wealth, compared to 11 per cent&nbsp;in the 2000.

"While it is too early to say wealth inequality is now in a downward phase, the prevailing evidence suggests that 2016 may have been the peak for the near future," it said.

The number of rich Chinese has surpassed the count of wealthy Americans for the first time as both countries keep churning out millionaires, a study by Credit Suisse showed.

The number of rich Chinese has surpassed the count of wealthy Americans for the first time as both countries keep churning out millionaires, a study by Credit Suisse showed. The Swiss bank's annual wealth survey released on Monday found 100 million Chinese ranked in the global top 10 per cent as of the middle of this year versus 99 million in the United States. "Despite the trade tension between the United States and China over the past 12 months, both countries have fared strongly in wealth creation, contributing $3.8 trillion and $1.9 trillion respectively," said Nannette Hechler-Fayd'herbe, global head of economics and research at Credit Suisse. The ranks of the world's millionaires have risen by 1.1 million to an estimated 46.8 million, collectively owning $158.3 trillion in net assets, 44 per cent of the global total, the study found. The United States added more than half of this number – 675,000 new millionaires, to its sizeable stock. A decline in average wealth in Australia, largely due to exchange rates, resulted in 124,000 fewer millionaires there, while Britain lost 27,000 and Turkey 24,000. The report estimates that 55,920 adults are worth at least $100 million and 4,830 have net assets above $500 million. It forecast global wealth, which increased by 2.6 per cent over the past year, would rise by 27 per cent over the next five years to $459 trillion by 2024. The number of millionaires would also grow over this period to almost 63 million. The share of the world's bottom 90 per cent accounts for 18 per cent of global wealth, compared to 11 per cent in the 2000. "While it is too early to say wealth inequality is now in a downward phase, the prevailing evidence suggests that 2016 may have been the peak for the near future," it said.

Rich Chinese outnumber wealthy Americans for first time: Credit Suisse

Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day.

Spot gold&nbsp;inched 0.1 per cent&nbsp;higher to $1,490.37 per ounce as of 0044 GMT&nbsp;US gold futures&nbsp;rose 0.1 per cent&nbsp;to $1,495.60.

Asian shares were subdued as the soft US&nbsp;sales data pointed to signs that the US&nbsp;economy was beginning to show signs of weakness, and a global recession was looming.

US&nbsp;retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for the Federal Reserve to cut interest rates again later this month.

Investors awaited further news on the <a href="https://www.wionews.com/world/united-states-china-trade-mini-deal-being-papered-trump-256340">US-China trade front</a>. US&nbsp;Treasury Secretary Steven Mnuchin said on Wednesday that trade negotiators are working on nailing down a phase 1 trade deal text for their presidents to sign next month.

Elsewhere, a European Union leaders' two-day summit in Brussels starting on Thursday will be dominated by last-gasp efforts to <a href="https://www.wionews.com/world/brexit-deal-at-hand-in-brussels-boris-johnson-struggles-to-win-support-at-home-256400">seal a deal on Britain's exit</a> from the bloc despite a raft of other pressing issues, from the crisis in the Middle East to the EU budget.

Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal.

Indicative of sentiment, SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 per cent&nbsp;to 918.19 tonnes on Wednesday from 919.66 tonnes on Tuesday.

Palladium rose 0.2 per cent&nbsp;to $1,770.54 an ounce on Thursday after notching a fresh high of $1,779.23 on Wednesday.

Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day.

Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day. Spot gold inched 0.1 per cent higher to $1,490.37 per ounce as of 0044 GMT US gold futures rose 0.1 per cent to $1,495.60. Asian shares were subdued as the soft US sales data pointed to signs that the US economy was beginning to show signs of weakness, and a global recession was looming. US retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for the Federal Reserve to cut interest rates again later this month. Investors awaited further news on the US-China trade front. US Treasury Secretary Steven Mnuchin said on Wednesday that trade negotiators are working on nailing down a phase 1 trade deal text for their presidents to sign next month. Elsewhere, a European Union leaders' two-day summit in Brussels starting on Thursday will be dominated by last-gasp efforts to seal a deal on Britain's exit from the bloc despite a raft of other pressing issues, from the crisis in the Middle East to the EU budget. Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal. Indicative of sentiment, SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 per cent to 918.19 tonnes on Wednesday from 919.66 tonnes on Tuesday. Palladium rose 0.2 per cent to $1,770.54 an ounce on Thursday after notching a fresh high of $1,779.23 on Wednesday.

Gold steady as disappointing US retail sales weigh on risk appetite

The <a href="https://www.wionews.com/business-economy/uk-economy-starts-to-shows-cracks-under-brexit-and-global-strains-254409">world economy </a>is slowing to its weakest pace since the global <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">financial crisis</a>, amid continuing trade conflicts that have <a href="https://www.wionews.com/world/global-growth-fragile-under-threat-former-imf-head-christine-lagarde-250693">undercut business confidence</a> and investment, the IMF said Tuesday.

It warned that the outlook is beset by risks, and urged policymakers to work to find resolutions to trade disputes since there are limited tools to respond to a new crisis.

"With a synchronized slowdown and uncertain recovery, the global outlook remains precarious," International Monetary Fund chief economist Gita Gopinath said in her introduction to the latest forecasts.

The IMF for the past year has every three months cut projected growth for 2019 as trade conflicts worsened.

In its latest World Economic Outlook, it trimmed the estimate by another two-tenths, to 3.0 per cent. The report also lowered the 2020 forecast by a tenth to 3.4 per cent.&nbsp;

"At three per cent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions," Gopinath said.

In addition, the trade conflicts and a slowdown in auto sales worldwide means trade growth has slowed sharply, falling in the first half of the year to its weakest since 2012, with an estimated increase of just 1.1 per cent this year after a 3.6 per cent jump in 2018.

Running low on ammo

While the US economy also has been hit by uncertainty — largely created by President Donald Trump's trade offensive — the world's largest economy remains a bright spot on the global stage, the report said.

After upgrading its US outlook in July, the latest WEO reversed course and cutting the US forecast this year to 2.4 per cent — still above trend, but two-tenths below the July forecast.

In 2020, the IMF projects US GDP to expand by 2.1 per cent, unchanged from the prior report.

"For the United States, trade-related uncertainty has had negative effects on investment, but employment and consumption continue to be robust, buoyed also by policy stimulus," Gopinath said.

Major central banks have taken steps to soften the blow to growth by lowering interest rates, without which the downturn would have been worse, she said.&nbsp;

However, she cautioned that monetary policy "cannot be the only game in town" and governments, notably in countries like Germany, should take advantage of low rates to make investments to support growth.

"With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot," Gopinath warned.

The US-China trade war alone is estimated to shrink the world economy by 0.8 per cent in 2020, the IMF said.

The fund warned that risks to the outlook predominate, and the uncertainty around trade policy -- which causes businesses to hold off on investments and undermines confidence — will take a larger chunk out of growth than the tariffs themselves

Slowing auto sales

"To forestall such an outcome, policies should decisively aim at defusing trade tensions, reinvigorating multilateral cooperation, and providing timely support to an economic activity where needed," the report said.

But trade is not the only reason for the global slowdown: the report notes that in China's economy, for example, growth is moderating as intended amid slowing domestic demand.

Other major economies like Brazil, India, Mexico, Russia and South Africa are slowing this year due to "idiosyncratic reasons" but are expected to recover in 2020.

"A notable feature of the sluggish growth in 2019 is the sharp and geographically broad-based slowdown in manufacturing and global trade," the IMF said, which in addition to the higher tariffs and trade uncertainty is the result of the contracting auto industry.&nbsp;

That slowdown has had an impact in Germany, China and India, the report said.

The world economy is slowing to its weakest pace since the global financial crisis, amid continuing trade conflicts that have undercut business confidence and investment, the IMF said Tuesday.

The world economy is slowing to its weakest pace since the global financial crisis, amid continuing trade conflicts that have undercut business confidence and investment, the IMF said Tuesday. It warned that the outlook is beset by risks, and urged policymakers to work to find resolutions to trade disputes since there are limited tools to respond to a new crisis. "With a synchronized slowdown and uncertain recovery, the global outlook remains precarious," International Monetary Fund chief economist Gita Gopinath said in her introduction to the latest forecasts. The IMF for the past year has every three months cut projected growth for 2019 as trade conflicts worsened. In its latest World Economic Outlook, it trimmed the estimate by another two-tenths, to 3.0 per cent. The report also lowered the 2020 forecast by a tenth to 3.4 per cent. "At three per cent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions," Gopinath said. In addition, the trade conflicts and a slowdown in auto sales worldwide means trade growth has slowed sharply, falling in the first half of the year to its weakest since 2012, with an estimated increase of just 1.1 per cent this year after a 3.6 per cent jump in 2018. Running low on ammo While the US economy also has been hit by uncertainty — largely created by President Donald Trump's trade offensive — the world's largest economy remains a bright spot on the global stage, the report said. After upgrading its US outlook in July, the latest WEO reversed course and cutting the US forecast this year to 2.4 per cent — still above trend, but two-tenths below the July forecast. In 2020, the IMF projects US GDP to expand by 2.1 per cent, unchanged from the prior report. "For the United States, trade-related uncertainty has had negative effects on investment, but employment and consumption continue to be robust, buoyed also by policy stimulus," Gopinath said. Major central banks have taken steps to soften the blow to growth by lowering interest rates, without which the downturn would have been worse, she said. However, she cautioned that monetary policy "cannot be the only game in town" and governments, notably in countries like Germany, should take advantage of low rates to make investments to support growth. "With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot," Gopinath warned. The US-China trade war alone is estimated to shrink the world economy by 0.8 per cent in 2020, the IMF said. The fund warned that risks to the outlook predominate, and the uncertainty around trade policy -- which causes businesses to hold off on investments and undermines confidence — will take a larger chunk out of growth than the tariffs themselves Slowing auto sales "To forestall such an outcome, policies should decisively aim at defusing trade tensions, reinvigorating multilateral cooperation, and providing timely support to an economic activity where needed," the report said. But trade is not the only reason for the global slowdown: the report notes that in China's economy, for example, growth is moderating as intended amid slowing domestic demand. Other major economies like Brazil, India, Mexico, Russia and South Africa are slowing this year due to "idiosyncratic reasons" but are expected to recover in 2020. "A notable feature of the sluggish growth in 2019 is the sharp and geographically broad-based slowdown in manufacturing and global trade," the IMF said, which in addition to the higher tariffs and trade uncertainty is the result of the contracting auto industry. That slowdown has had an impact in Germany, China and India, the report said.

World economy at its weakest pace since global financial crisis: International Monetary Fund

International Monetary Fund's chief <a href="https://www.wionews.com/world/divided-european-union-taps-bulgarias-kristalina-georgieva-as-international-monetary-fund-candidate-240499">Kristalina Georgieva </a>on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that&nbsp;nearly 90 per cent of the world will witness slower growth in 2019.

"Two years ago, the global economy was in a synchronised upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronised slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world," said Georgieva.

The speech comes ahead of next week's annual meeting of the IMF and World Bank during which both the organisation are set to present the global economic outlook.

Georgieva also&nbsp;said that the effect&nbsp;of the slowdown is more pronounced&nbsp;in some of the largest emerging market economies like India.

"In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan, an&nbsp;especially the euro area, there is a softening of economic activity. In some of the <a href="https://www.wionews.com/opinions/can-india-realistically-become-us-5-trillion-economy-236846">largest emerging market economies, such as India</a> and Brazil, the slowdown is even more pronounced this year," Georgieva also said.

The IMF had cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/wion-wallet-imfs-lagarde-warns-of-growing-concerns-over-trade-tensions-224901/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

The IMF's research also takes into account the US-China trade conflict, which could have long-term repercussions.

&nbsp;"We have spoken in the past about the dangers of trade disputes. now, we see that they are actually taking a toll. Global trade growth has come to a near standstill. In part because of the trade tensions, worldwide manufacturing activity and investment have weakened substantially. There is a serious risk that services and consumption could soon be affected, " Georgieva said.

"Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation - broken supply chains, siloed trade sectors, a 'digital berlin wall' that forces countries to choose between technology systems," she added.

She highlighted that trade conflicts could lead to a loss of a whopping seven-hundred billion dollars from the global GDP output by 2020.

Speaking about the monetary policy, Georgieva said that central banks need to keep their interests low, especially due to low inflation and weak growth.

However, she also said that there was limited scope for further cuts because the borrowing were already nearly zero or negative.

Kristalina Georgieva took over as IMF's managing director on October 1 after Christine Lagarde resigned.

Georgieva is the former chief executive officer of World Bank.

International Monetary Fund's chief Kristalina Georgieva on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that nearly 90 per cent of the world will witness slower growth in 2019.

International Monetary Fund's chief Kristalina Georgieva on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that nearly 90 per cent of the world will witness slower growth in 2019. "Two years ago, the global economy was in a synchronised upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronised slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world," said Georgieva. The speech comes ahead of next week's annual meeting of the IMF and World Bank during which both the organisation are set to present the global economic outlook. Georgieva also said that the effect of the slowdown is more pronounced in some of the largest emerging market economies like India. "In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan, an especially the euro area, there is a softening of economic activity. In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year," Georgieva also said. The IMF had cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand. Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions × The IMF's research also takes into account the US-China trade conflict, which could have long-term repercussions. "We have spoken in the past about the dangers of trade disputes. now, we see that they are actually taking a toll. Global trade growth has come to a near standstill. In part because of the trade tensions, worldwide manufacturing activity and investment have weakened substantially. There is a serious risk that services and consumption could soon be affected, " Georgieva said. "Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation - broken supply chains, siloed trade sectors, a 'digital berlin wall' that forces countries to choose between technology systems," she added. She highlighted that trade conflicts could lead to a loss of a whopping seven-hundred billion dollars from the global GDP output by 2020. Speaking about the monetary policy, Georgieva said that central banks need to keep their interests low, especially due to low inflation and weak growth. However, she also said that there was limited scope for further cuts because the borrowing were already nearly zero or negative. Kristalina Georgieva took over as IMF's managing director on October 1 after Christine Lagarde resigned. Georgieva is the former chief executive officer of World Bank.

World suffering 'synchronised slowdown', says new IMF chief; effect 'more pronounced' in India

Britain's economy is increasingly showing signs of strain as the <a href="https://www.wionews.com/world/british-prime-minister-johnson-tells-eu-brexit-ball-is-in-your-court-now-254283/amp">Brexit crisis</a> and the global slowdown intensify, with the loss of momentum appearing to spread to areas that have hitherto been sources of growth.

Confidence among businesses has ebbed to its lowest levels since the global financial crisis.

The labour market, which has long been a silver lining for the economy, is also starting to show signs of slowing, raising questions about the strength of consumer spending.

The different Brexit scenarios for the world's fifth-largest economy make it hard to gauge the outlook for the year ahead, not least for the Bank of England, and some investors fear Britain is already flirting with recession.

Economists polled by Reuters last month put the probability of a recession within a year at 35 per cent.

Below are some indicators of the <a href="https://www.wionews.com/business-economy/uk-business-activity-contracts-over-brexit-turmoil-raises-recession-risk-247628">British economy </a>and how they have changed since the June 2016 Brexit vote.

Pessimism among businesses has reached the highest levels in years.

The gauges of future activity in the Lloyds Business Barometer, CBI Growth Indicator, and IHS Markit/CIPS surveys have all turned weakened recently.

The closely watched IHS Markit/CIPS survey last week showed Britain's dominant <a href="https://www.wionews.com/business-economy/uk-economy-flirting-with-recession-after-services-shrink-unexpectedly-253502">services sector contracted </a>unexpectedly in September,&nbsp;and marked the worst reading in a major developed economy.

Household spending has supported Britain's economy since the Brexit vote, although there are signs that households have spent more on non-discretionary goods such as food, while spending in restaurants and hotels has weakened.

As of the second quarter, spending on the latter was about 1.5 per cent&nbsp;lower than in mid-2016, but nearly 7 per cent&nbsp;higher for food and non-alcoholic drinks, according to official data.

Figures from the British Retail Consortium and payment card company Barclaycard published on Monday showed shop chains had their worst September since records started in 1995, although spending on entertainment increased.

The labour market is the strong point of Britain's economy but some cracks have appeared recently. Employment fell in annualised terms in the six months to July 2019 to the greatest extent since early 2012.

Wage growth is at a decade-high although the BoE has said it may have peaked and there has been no pickup in productivity.

A measure that BoE policymakers like to look at,&nbsp;the three-month annualised growth rate of private sector earnings, excluding bonuses, slowed in July from an almost five-year high of 5.9 per cent&nbsp;in June.

Although the Office for National Statistics has revised up the level of business investment in Britain's economy lately, the figures still show capital expenditure has stagnated since the Brexit vote.

Business investment is running about 5 billion pounds lower than it would have been had it followed its pre-Brexit vote trend since the financial crisis, according to the latest data.

Britain's economy is increasingly showing signs of strain as the Brexit crisis and the global slowdown intensify, with the loss of momentum appearing to spread to areas that have hitherto been sources of growth.

Britain's economy is increasingly showing signs of strain as the Brexit crisis and the global slowdown intensify, with the loss of momentum appearing to spread to areas that have hitherto been sources of growth. Confidence among businesses has ebbed to its lowest levels since the global financial crisis. The labour market, which has long been a silver lining for the economy, is also starting to show signs of slowing, raising questions about the strength of consumer spending. The different Brexit scenarios for the world's fifth-largest economy make it hard to gauge the outlook for the year ahead, not least for the Bank of England, and some investors fear Britain is already flirting with recession. Economists polled by Reuters last month put the probability of a recession within a year at 35 per cent. Below are some indicators of the British economy and how they have changed since the June 2016 Brexit vote. Pessimism among businesses has reached the highest levels in years. The gauges of future activity in the Lloyds Business Barometer, CBI Growth Indicator, and IHS Markit/CIPS surveys have all turned weakened recently. The closely watched IHS Markit/CIPS survey last week showed Britain's dominant services sector contracted unexpectedly in September, and marked the worst reading in a major developed economy. Household spending has supported Britain's economy since the Brexit vote, although there are signs that households have spent more on non-discretionary goods such as food, while spending in restaurants and hotels has weakened. As of the second quarter, spending on the latter was about 1.5 per cent lower than in mid-2016, but nearly 7 per cent higher for food and non-alcoholic drinks, according to official data. Figures from the British Retail Consortium and payment card company Barclaycard published on Monday showed shop chains had their worst September since records started in 1995, although spending on entertainment increased. The labour market is the strong point of Britain's economy but some cracks have appeared recently. Employment fell in annualised terms in the six months to July 2019 to the greatest extent since early 2012. Wage growth is at a decade-high although the BoE has said it may have peaked and there has been no pickup in productivity. A measure that BoE policymakers like to look at, the three-month annualised growth rate of private sector earnings, excluding bonuses, slowed in July from an almost five-year high of 5.9 per cent in June. Although the Office for National Statistics has revised up the level of business investment in Britain's economy lately, the figures still show capital expenditure has stagnated since the Brexit vote. Business investment is running about 5 billion pounds lower than it would have been had it followed its pre-Brexit vote trend since the financial crisis, according to the latest data.

UK economy starts to shows cracks under Brexit and global strains

<a href="https://www.wionews.com/videos/wion-wallet-samsung-relaunches-folding-smartphone-after-screen-problems-248049">Samsung</a>&nbsp;Electronics&nbsp;Co Ltd&nbsp;has ended&nbsp;mobile&nbsp;telephone&nbsp;production&nbsp;in&nbsp;China, it said on Wednesday, hurt by intensifying competition from domestic rivals in the world's biggest smartphone&nbsp;market.

The shutdown of&nbsp;Samsung's last&nbsp;China&nbsp;phone&nbsp;factory comes months after it cut&nbsp;production&nbsp;at the plant in the southern city of Huizhou in June and suspended another factory late last year, underscoring gruelling competition in the country.

The South Korean firm's share of the Chinese market shrunk to 1 per cent&nbsp;in the first quarter from around 15 per cent&nbsp;in mid-2013, as it lost out to fast-growing homegrown brands such as <a href="https://www.wionews.com/world/huaweis-new-phone-lacks-google-access-after-us-ban-250639">Huawei</a> Technologies and Xiaomi Corp, according to market research firm Counterpoint.

Samsung, the world's top smartphone&nbsp;maker, said it made a difficult decision in a bid to boost efficiency.

"The&nbsp;production&nbsp;equipment will be re-allocated to other global manufacturing sites, depending on our global&nbsp;production&nbsp;strategy based on market needs," it said in a statement, without elaborating.

Samsung&nbsp;declined to specify the plant's capacity and numbers of staff. The company has been expanding smartphone&nbsp;production&nbsp;in lower-cost countries, such as India and <a href="https://www.wionews.com/india-news/china-intrudes-into-vietnams-exclusive-economic-zone-for-the-third-time-this-year-250047">Vietnam</a>, in recent years.

&nbsp;

Samsung Electronics Co Ltd has ended mobile telephone production in China, it said on Wednesday, hurt by intensifying competition from domestic rivals in the world's biggest smartphone market.

Samsung Electronics Co Ltd has ended mobile telephone production in China, it said on Wednesday, hurt by intensifying competition from domestic rivals in the world's biggest smartphone market. The shutdown of Samsung's last China phone factory comes months after it cut production at the plant in the southern city of Huizhou in June and suspended another factory late last year, underscoring gruelling competition in the country. The South Korean firm's share of the Chinese market shrunk to 1 per cent in the first quarter from around 15 per cent in mid-2013, as it lost out to fast-growing homegrown brands such as Huawei Technologies and Xiaomi Corp, according to market research firm Counterpoint. Samsung, the world's top smartphone maker, said it made a difficult decision in a bid to boost efficiency. "The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs," it said in a statement, without elaborating. Samsung declined to specify the plant's capacity and numbers of staff. The company has been expanding smartphone production in lower-cost countries, such as India and Vietnam, in recent years.

Samsung Electronics ends mobile phone production in China

The <a href="https://www.wionews.com/business-economy/dollar-pinned-down-after-poor-us-manufacturing-data-pound-slips-253220">US&nbsp;dollar</a> edged higher on Wednesday after disappointing manufacturing data had whacked the greenback off two-year&nbsp;highs, while the euro clung to levels above $1.09.

The US&nbsp;manufacturing contracted at the fastest pace in more than a decade in September, making the United States the latest country to suffer a manufacturing downturn amid a trade war between Washington and <a href="https://www.wionews.com/videos/china-marks-70th-national-day-with-military-parade-253164">Beijing</a>.

Many analysts, however, say the setback for the dollar will likely prove temporary given its higher yield versus peers and the relative strength of the US&nbsp;economy,&nbsp;non-farm payrolls data due on Friday should give some more insight into the health of the US&nbsp;economy.

"Yes US&nbsp;manufacturing is disappointing but it's no more disappointing than the eurozone PMIs (Purchasing Managers' Index surveys) we saw," said Michael Hewson, an analyst at CMC Markets, referring to weak surveys in the euro area released this week.

Hewson said weakness in US&nbsp;manufacturing would have to spill over into the services sector before it had a significant impact on monetary policy and the outlook for the dollar.

Others differed. The manufacturing reading was a bad omen for September US&nbsp;labour figures due on Friday, BNY Mellon analysts said in a note since moves are often correlated.

"This reinforces our view that while the Fed is still stubbornly clinging to its view that rates are currently appropriate. It will ultimately have to accept that the pillars of support - the labour market and the consumer - are weakening," the bank said.

Even with more rate cuts, the dollar is still the highest-yielding currency among its developed market peers.

The dollar index inched 0.1 per cent&nbsp;higher to 99.242&nbsp;in early trade after hitting as high as 99.667 on Tuesday, a 29-month peak, before the manufacturing data was released.

The euro fell 0.1 per cent&nbsp;to $1.0921&nbsp;but was above its two-year low of $1.0879 touched on Tuesday.

The Japanese yen strengthened 0.2 per cent&nbsp;to 107.57, reflecting investor demand for safer assets after the US&nbsp;data heightened concerns about the health of the global economy.

The Swiss franc, another safe-haven currency, fell, however, by 0.3 per cent&nbsp;against the euro&nbsp;and 0.4 per cent&nbsp;against the dollar.

Elsewhere, the Australian dollar struggled around the $0.67&nbsp;mark but remained above its decade-low of $0.6672 hit on Tuesday after the <a href="https://www.wionews.com/world/australias-central-bank-cuts-rates-to-new-record-low-252964">Reserve Bank of Australia</a> cut rates to an all-time low.

The pound sank 0.3 per cent&nbsp;against the dollar to $1.2271&nbsp; and was headed back toward an almost one-month low plumbed overnight. Prime Minister Boris Johnson will unveil his final <a href="https://www.wionews.com/world/united-kingdom-prime-minister-boris-johnson-to-unveil-final-brexit-offer-to-european-union-253189">Brexit </a>offer to the European Union on Wednesday and make clear that Britain intends to leave the EU on October&nbsp;31, no matter what.

The US dollar edged higher on Wednesday after disappointing manufacturing data had whacked the greenback off two-year highs, while the euro clung to levels above $1.

The US dollar edged higher on Wednesday after disappointing manufacturing data had whacked the greenback off two-year highs, while the euro clung to levels above $1.09. The US manufacturing contracted at the fastest pace in more than a decade in September, making the United States the latest country to suffer a manufacturing downturn amid a trade war between Washington and Beijing. Many analysts, however, say the setback for the dollar will likely prove temporary given its higher yield versus peers and the relative strength of the US economy, non-farm payrolls data due on Friday should give some more insight into the health of the US economy. "Yes US manufacturing is disappointing but it's no more disappointing than the eurozone PMIs (Purchasing Managers' Index surveys) we saw," said Michael Hewson, an analyst at CMC Markets, referring to weak surveys in the euro area released this week. Hewson said weakness in US manufacturing would have to spill over into the services sector before it had a significant impact on monetary policy and the outlook for the dollar. Others differed. The manufacturing reading was a bad omen for September US labour figures due on Friday, BNY Mellon analysts said in a note since moves are often correlated. "This reinforces our view that while the Fed is still stubbornly clinging to its view that rates are currently appropriate. It will ultimately have to accept that the pillars of support - the labour market and the consumer - are weakening," the bank said. Even with more rate cuts, the dollar is still the highest-yielding currency among its developed market peers. The dollar index inched 0.1 per cent higher to 99.242 in early trade after hitting as high as 99.667 on Tuesday, a 29-month peak, before the manufacturing data was released. The euro fell 0.1 per cent to $1.0921 but was above its two-year low of $1.0879 touched on Tuesday. The Japanese yen strengthened 0.2 per cent to 107.57, reflecting investor demand for safer assets after the US data heightened concerns about the health of the global economy. The Swiss franc, another safe-haven currency, fell, however, by 0.3 per cent against the euro and 0.4 per cent against the dollar. Elsewhere, the Australian dollar struggled around the $0.67 mark but remained above its decade-low of $0.6672 hit on Tuesday after the Reserve Bank of Australia cut rates to an all-time low. The pound sank 0.3 per cent against the dollar to $1.2271 and was headed back toward an almost one-month low plumbed overnight. Prime Minister Boris Johnson will unveil his final Brexit offer to the European Union on Wednesday and make clear that Britain intends to leave the EU on October 31, no matter what.

Dollar steadies after data knocks it off two-year highs

US treasury secretary Steven Mnuchin on Monday said America's economy was unscathed after more than a year of entrenched trade conflict with China and Europe.

The remarks brushed aside concerns prompted by recent economic data showing slower employment growth,<a href="https://www.wionews.com/business-economy/g20-says-worsening-trade-wars-pose-risk-to-world-economy-225664"> falling business investment</a> and a weakening manufacturing sector, which have intensified recession warnings.

"I don't see in any way a recession," Mnuchin told Fox Business.

"There's no question there's been a considerable slowdown in the world economy both in China and in Europe but as you look at the US, we continued to be the bright spot."

"We have not seen any impact on the US economy," he added.

High-level trade negotiations are due to take place in Washington next month after a summer of acrimony and deteriorating <a href="https://www.wionews.com/world/imf-chief-christine-lagarde-says-us-china-tensions-threat-to-world-economy-216809">US-China trade relations</a>.

Months of negotiations have so far failed to achieve a bargain after talks verged on collapse in May, prompting observers to speculate the trade conflict may drag on far longer than expected with the two sides unable to reconcile their differences.

But on Monday Mnuchin held out hope for progress.

"They're coming here. I take that as a sign of good faith that they want to negotiate," he said.

American industry and agriculture leaders have denounced Trump's trade wars but so far failed to block its steady escalation, with US duty rates on hundreds of billions in Chinese goods set to rise in stages through the end of the year.

Official job creation numbers released Friday showed employers across major industries slowed the pace of hiring, which economists took as another sign the world's largest economy is cooling off.

US treasury secretary Steven Mnuchin on Monday said America's economy was unscathed after more than a year of entrenched trade conflict with China and Europe. The remarks brushed aside concerns prompted by recent economic data showing slower employment growth, falling business investment and a weakening manufacturing sector, which have intensified recession warnings.

US treasury secretary Steven Mnuchin on Monday said America's economy was unscathed after more than a year of entrenched trade conflict with China and Europe. The remarks brushed aside concerns prompted by recent economic data showing slower employment growth, falling business investment and a weakening manufacturing sector, which have intensified recession warnings. "I don't see in any way a recession," Mnuchin told Fox Business. "There's no question there's been a considerable slowdown in the world economy both in China and in Europe but as you look at the US, we continued to be the bright spot." "We have not seen any impact on the US economy," he added. High-level trade negotiations are due to take place in Washington next month after a summer of acrimony and deteriorating US-China trade relations. Months of negotiations have so far failed to achieve a bargain after talks verged on collapse in May, prompting observers to speculate the trade conflict may drag on far longer than expected with the two sides unable to reconcile their differences. But on Monday Mnuchin held out hope for progress. "They're coming here. I take that as a sign of good faith that they want to negotiate," he said. American industry and agriculture leaders have denounced Trump's trade wars but so far failed to block its steady escalation, with US duty rates on hundreds of billions in Chinese goods set to rise in stages through the end of the year. Official job creation numbers released Friday showed employers across major industries slowed the pace of hiring, which economists took as another sign the world's largest economy is cooling off.

Slowdown in China, Europe, don't see any recession in US: Treasury secretary Mnuchin

world-economy

World Economy, News on World Economy, stories on World Economy, articles on World Economy, World Economy stories at Wion, World Economy news, World Economy latest news