Oil price surpasses $ 80 as power shortages in China worsen
Goldman Sachs has slashed China’s economic growth forecast as the current superpower’s energy crisis hits industrial production and pushes Beijing to turn to foreign imports of coal.
Power shortages caused by China’s lack of coal have triggered plant closures for Apple and Tesla in Jilin province, the industrial heartland of the country, with electricity being rationed in at least 10 other provinces.
Its governor called for more coal imports while an association of power companies said the supply was being expanded “at all costs”.
It is reported that the lack of electricity has resulted in 3G coverage blackouts, as well as the closure of residential elevators and traffic lights in cities such as Shenyang and Dalian, which are home to more than 13 million people.
Goldman has estimated that up to 44% of China’s industrial activity has been affected by power shortages, which could lead to a one percentage point drop in annualized GDP growth in the third quarter and a decrease of two percentage points from October to December.
He said in a note released on Tuesday that he was lowering his 2021 GDP growth forecast for China to 7.8%, from 8.2% previously.
5 things to start your day
1) Billionaire Wise founder fined The boss of the money transfer provider has been fined hundreds of thousands of pounds by HMRC for deliberately defaulting on his taxes.
2) Recovery enters “hard yards”, Bailey warns The Governor of the Bank of England warns of a “weakening” of the recovery as panic buying threatens to pull the economy back in October.
3) An Oxford academic in Huawei’s video row Pinar Ozcan says she has never agreed to appear in promotional videos for the Chinese telecommunications company.
4) Oil Heads For $ 80 As Energy Crisis Intensifies Brent, which is based on the North Sea industry, could hit $ 90 a barrel by the end of the year, Goldman Sachs analysts say.
5) Electric car maker Polestar valued at $ 20 billion in deal with Spac A high-end electric car company backed by actor Leonardo DiCaprio becomes the latest challenger automaker to go public.
What happened during the night
Asian stocks fell mainly on Tuesday as investors continued to worry about the China Evergrande group’s unresolved debt crisis and considered the potential impact of a growing electricity shortage in China.
The MSCI’s largest Asia-Pacific stock index outside of Japan was down 0.13 pc on Tuesday, after a mixed session on Wall Street.
At the start of Tuesday trading, the Australian benchmark S & P / ASX200 was down nearly 1 percent, while Japan’s Nikkei was down 0.6 percent.
China’s blue-chip CSI300 index rose 0.1% at the opening, while Hong Kong’s Hang Seng index gained 0.44%.
- Business : Ferguson, Smiths Group, close brothers (Annual results); Pennon Group, Moon Pig (Commercial update)
- Economy: House price index (United Kingdom, United States); consumer confidence (WE); BRC store price index (UK)