China grows at one of lowest rates on record; Thames Water has funds to survive to year end – business live
China’s economy grew by 4.3% in the second quarter, one of its weakest rates in years, missing forecasts and slipping below Beijing’s target range as weak domestic demand offset strong exports. That matters because slower Chinese growth can affect global trade, investment and market confidence. At the same time, Thames Water said it has enough cash to keep operating until the end of 2026 while it works on a rescue plan to avoid temporary nationalisation, keeping attention on the wider problems in England’s privatised water sector.
The Guardian reports that China’s growth slowed from 5% in the first quarter and was the lowest in about three and a half years. Thames Water said it had £515m in cash, while its debts rose to £18.5bn; however, it also said sewage pollution fell 18% over the year to March and underlying post-tax profit rose to £203.9m from £12.6m. Markets were also influenced by geopolitics and inflation data: Brent crude rose 0.7% to $85.3 a barrel after tensions around Iran and the Strait of Hormuz, while Asian shares rose and bond yields fell after softer-than-expected US inflation.
In short
- China’s quarterly growth slowed to 4.3%
- Thames Water says funding lasts until year-end
- Oil rose as markets tracked Iran tensions
Explained simply
China's economy has grown by 4.3%, one of its slowest rates in recent years, below both expectations and the government's target range. This matters because China is the world's second-largest economy, so slower growth there affects global trade patterns, investment decisions and market confidence internationally.
Thames Water is England's largest private water company, responsible for supplying water and treating sewage for millions of people. Like other English water utilities, it is privately owned rather than publicly run, and its heavy debt burden has drawn attention to questions about how well the privatised water system is operating.
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