China's soaring stock market is at risk of "a marked correction" that could have a knock-on effect on its entire banking system, the OECD said yesterday, adding its voice to a litany of bearish warnings on the country's share prices, reports The Times.
The danger has arisen despite growth of nearly 11 per cent last year and a projected acceleration in consumer spending ahead, the Paris-based Organisation for Economic Cooperation and Development said.
Its warning came as President Bush told Wu Yi, China’s Vice-Premier, that the United States was watching “very carefully” the movement of the Chinese yuan, after talks in Washington between the two powers failed to reach a breakthrough on the currency.
MANUFACTURERS ARE RESPONDING to fatter order books by pushing up their prices at the fastest rate for 12 years, a survey has revealed. The latest monthly snapshot of British industry by the CBI showed that a net 5 per cent of firms reported more orders than a year ago, up from 2 per cent in April. It was the fourth positive reading in a row - the longest stretch since 1995 - and indicated that the manufacturing recovery has established a firmer footing, reports The Independent.
But in a move that will worry the inflation-fighting Bank of England, manufacturers are taking advantage of stronger demand to rebuild profit margins by increasing prices. The survey's domestic price expectations balance jumped from 16 to 25, the highest since March 1995.
Prices are most likely to rise for so-called intermediate goods, such as timber or chemicals, and consumer goods.
RUPERT MURDOCH FACES the most serious challenge yet to his dominance of the British media after Alistair Darling, the trade secretary, called yesterday for a full investigation into News Corp's influence over the way the British public gets its news, reports The Guardian.
In referring BSkyB's share swoop last year on the rival broadcaster ITV to the Competition Commission, Mr Darling opened the way for a full investigation into the connection between the satellite broadcaster and Mr Murdoch's newspaper arm, News International, which owns the Sun and the Times.
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Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till