Stock markets have retreated again over worries of further US interest rate rises after the Federal Reserve defied Donald Trump to increase rates for the fourth time this year.

The EU has confirmed it is “actively investigating” a potential breach of its diplomatic communications network, following reports that secret cables had been stolen by hackers.

The Bank of England has welcomed a “crucial and positive” move by the EU to help keep a key part of the financial system functioning in the event of a “no-deal” Brexit.

A handful of banks will be forced to write multimillion pound cheques to buy shares in the construction giant Kier Group after some of its biggest investors snubbed the chance to take part in a £250m fundraising.

GlaxoSmithKline (GSK) is to merge its consumer healthcare unit with that of rival Pfizer, to create a new market leader with almost £10bn in annual sales.

 

Santander has been fined more than £30m for “serious failings” in processing the accounts of dead customers, the Financial Conduct Authority (FCA) says.

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China Was Never Likely to Have a Debt Crisis

While China is unlikely to have a debt crisis, it will face more difficulties when making the adjustment as debt accumulates. A strong leadership may then be required to implement necessary reforms.

 

Carnegie’s Michael Pettis spoke with CNBC about China’s debt problem. Pettis argued that China is unlikely to have a debt crisis because it has a closed banking system and credible regulators. Recent tensions between the United States and China have important implications for China’s debt problem because China needs to increase its domestic demand in the absence of strong demand abroad, but, Pettis said, this can lead to more debts. Pettis argued that improving domestic demand by increasing the share of household income in GDP is not easy and the centralization of power may be necessary to overcome opposition. Because of this, he said that removing the term limit for Xi Jinping may be beneficial for China in the short term regardless of its long-term effects.

 

 

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