Markets recover as China calls for calm over trade war – business live

All the day’s economic and financial news, as investors worry that Donald Trump could trigger a full-blown trade war with China

Sterling has hit a new seven-month low this morning, as the UK government faces another crunch vote over Brexit.

Parliament will vote on the EU withdrawal bill, the government’s flagship piece of Brexit legislation, later today. And one group of MPs are refusing to drop their demand for a ‘meaningful’ vote in the scenario in which Britain can’t agree a Brexit deal.

Related: Brexit: No 10 and rebels stand firm in row over ‘meaningful vote’

Those calming words from the People’s Bank of China are helping markets recover from yesterday’s rout.

In London the FTSE 100 has jumped by 80 points, or 1%, to 7683 (partly helped by a weaker pound).

On the trade front, we’re likely to see a two month ‘hibernation’ as the US works through the legal process for the next $200bn of tariffs and China awaits the US’ formal response.

The boss of Wall Street giant Goldman Sachs has predicted that China and the US still step back from a devastating trade wars.

That’s what you would do if it was a negotiating position, and you wanted to remind your counterparty just how much fire power you had to bring to the negotiation.”

“I don’t think we’re in a suicide pact on this…“I suspect we’re not going to cause the economies to collapse with Smoot-Hawley on steroids.

China’s stock market isn’t the only one flirting with a bear market.

After days of losses, the Philippines PSI index has fallen almost 20% from its recent peak.

Philippine stocks may fall into a bear market as early as today amid record streak of outflows of 23 straight days. $40 billion in value wiped out this year from the country’s biggest stocks pic.twitter.com/eZcFpBGl6j

Donald Trump’s threat to impose more tariffs on China is dominating the newspapers across Asia today.

The China Daily newspaper – often a good window into Beijing’s thinking – has accuse the US of trying to hurt the Chinese economy.

“Faced with this heightened intimidation from the U.S., China has no choice but to fight back with targeted and direct measures aimed at persuading the U.S. to back off, since it appears that any concessions it makes will not appease the Trump administration, which wants to suck the lifeblood from the Chinese economy.”

“Beijing will have to ensure that Washington is aware that there will be heavy price to pay every action it strikes against China if it is to avoid being a victim of the Trump administration’s growing blood lust.”

A raging fever of nationalism rising in the world’s sole super power sends an alarming signal. Nationalism is a challenge to globalization. Rising nationalism and protectionism could hinder the process of globalization and jeopardize the world order.

The US often points an accusing finger at alleged economic nationalism of other countries including China, but now, the reality is that Trump’s truculent nationalism is posing the biggest threat.

Epic trade-war front page from Apple Daily pic.twitter.com/8sSzk8IKdQ

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Related: Stock markets roiled as US-China trade dispute escalates

“China still has good economic fundamentals and resilient growth. The yuan is one of a few currencies that have appreciated against the US dollar this year.

“I’m fully confident about the health of China’s capital market based on the fundamentals.”

Shanghai Composite bouncing after a brutal Tuesday; trading close to the bubble burst lows… not a lot going right for #China at the moment.
Obviously this presents downside risks, but one question is where is the pain point for them to launch a new stimulus package? pic.twitter.com/ktTnJbXirg

Shanghai Composite bouncing after a brutal Tuesday; trading close to the bubble burst lows… not a lot going right for #China at the moment.
Obviously this presents downside risks, but one question is where is the pain point for them to launch a new stimulus package? pic.twitter.com/ktTnJbXirg

#China | PBOC Governor Yi Gang says China share price drop on Tuesday were mainly emotions …nailed it.

Global GDP could stand to be hit by 2% – 3% should the trade war continue and spread, to put this into context the Great Recession wiped out 6% of the global GDP, so this trade spat is by no means insignificant.

For weeks the market has been relatively complacent that Trump’s tough protectionist rhetoric were merely a negotiating tool; however, the realisation that the US President is willing to go ahead with his threats has sent a shiver through the markets.

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Read the original at Economics | The Guardian.