Morning business round-up: China's growth slows


What made the business news in Asia and Europe this morning? Here's our daily business round-up:

China's economic expansion slowed during the third quarter of the year, latest figures have shown, after government measures to control inflation hurt growth.

China's economy - the world's second largest - grew by 9.1% in the three months to the end of September from a year earlier, down from 9.5% in the previous quarter.

The data comes amid fears that a slowdown in the US, combined with Europe's debt crisis, may also hurt China's growth.

France has been given a warning over its top AAA credit rating by rating agency Moody's.

Moody's warned that it may change its "stable" outlook on the rating to "negative" in the coming months, saying that the government's financial strength had "weakened".

France's finance minister said the government would do "everything in our power not to be downgraded".

News of slower growth in China, combined with Moody's comments on France, knocked the markets in early trade, with most of the main European share indexes trading lower.

Sentiment was also hit by news of disappointing third-quarter results from IBM.

In the UK, latest inflation figures showed that Consumer Prices Index (CPI) inflation hit a three-year high in September, as domestic fuel bills increased.

The rate of 5.2% was the highest CPI measure since September 2008, and it has never been higher since the CPI measure was introduced in 1997.

The Retail Prices Index measure (RPI) - which includes mortgage interest payments - rose to 5.6% from 5.2%.

Media caption,
Biz Heads

Among corporate news, Taiwanese smartphone maker HTC was dealt a blow in its legal battle with Apple involving patent infringement claims.

The US International Trade Commission (ITC) has ruled that Apple did not violate patents as claimed by HTC in a complaint lodged last year.

HTC had asked the court to ban imports of several Apple products into the US, citing patent infringements.

Shares of Sinohydro Corporation surged on their debut on the Shanghai stock exchange, triggering a temporary halt in their trading.

The Chinese dam builder's shares jumped as much as 38% to 6.22 yuan up from their listing price of 4.50 yuan.

Sinohydro's share sale has been China's biggest initial public offering (IPO) this year, raising 13.5bn yuan ($2.1bn; £1.3bn).

Finally, the latest edition of Business Daily from the BBC World Service looks at why some American states are prospering even though the US economy is wobbling.

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