Chinese stock market hits 31-month low as Xi and Putin blast protectionism - as it happened

All the day's economic and financial news, as Chinese leader calls for Asian states to unite against US protectionist trade policies

• Xi: Protectionism is rearing its head
• Latest: Chinese stock market hits lowest since Jan 2016
• Asian leaders are meeting in Vladivostok
• China wants closer ties with Russia
• Lagarde fears trade war will cause emerging market turmoil

7.54pm BST

And finally, former prime minister Gordon Brown has warned that the world risks blundering into a new financial crisis.

"We are in danger of sleepwalking into a future crisis," Brown said when asked to assess the risks of a repeat of 2008. "There is going to have to be a severe awakening to the escalation of risks, but we are in a leaderless world

"It is very difficult to say what will trigger it [the next crisis] but we are at the latter end of the economic cycle where people take greater risks. There are problems in emerging markets."

Related: 'The world is sleepwalking into a financial crisis' - Gordon Brown

7.53pm BST

In an unusual development, the Takeover Panel has forced Sports Direct to rule out a bid for Debenhams.

This was triggered by those comments from non-executive director Simon Bentley, revealing that the SPD board had discussed the idea of a takeover.

Further to recent press speculation in relation to Debenhams plc, Sports Direct confirms that it does not intend to make an offer to acquire the entire issued and to be issued ordinary share capital of Debenhams plc.

Related: Debenhams comment by Sports Direct forces watchdog to intervene

7.37pm BST

Elsewhere in the markets, the oil price rose after the latest US crude inventory figures showed a 5.3 million barrel drop last week.

CNBC has the details:

Brent crude futures were last up 58 cents on the day at $79.64 a barrel and briefly broke above $80. U.S. crude futures rose $1.15, or 1.7 percent, to $70.40 a barrel.

The Energy Information Administration said Wednesday that U.S. crude oil inventories dropped by 5.3 million barrels last week.

5.17pm BST

Britain's FTSE 100 has outperformed the Chinese stock market today.

It ended the session up 39 points at 7,313, a gain of 0.5%.

5.11pm BST

Ryanair's ever-quotable CEO has weighed in on Brexit, by urging the UK's transport minister to help stop flights being grounded after Britain leaves the EU:

Related: Ryanair boss tells Chris Grayling to 'get off his backside' and strike deal with EU

2.55pm BST

Trade war concerns are keeping a cap on the markets today.

On Wall Street, the Dow Jones has risen by just 0.1% in early trading. The Nasdaq is down 0.3%, as some semiconductor firms drop.

Chip stocks - including Micron and Seagate - are tanking again after Wall Street sees falling memory chip demand. https://t.co/OZGcwLGjmJ pic.twitter.com/xH9mJxupN6

Related: SSE blames price cap and hot weather as it issues profit warning

2.31pm BST

Back in Vladivostok, presidents Putin and Xi have visited the Okean Russian Children's Centre.

Ten years ago, the centre took in around 2,000 children from China's Sichuan and Gansu provinces who had been affected by the devastating Wenchuan earthquake, which killed almost 70,000 people. These children received recreation and medical treatment at the centre, to help them recover and recuperate from their ordeal.Xi visited the center in 2010 when he was vice-president.

2.18pm BST

UK retailer Sports Direct has been making plenty of headlines today, as it holds its AGM.

The first: chairman Keith Hellawell has stepped down, following scathing criticism of the company's corporate government in recent years. This move spares Hellawell another shareholder protest -- last year, barely half of investors supported his re-election.

Related: Sports Direct considered buying Debenhams

Newcastle United supporters at the agm say they felt they didn't have a chance to ask questions and warn House of Fraser staff "expect neglect" pic.twitter.com/Ryo5oFhLSa

aSo Ashley DID turn up for the SD Agm. He's here, 36 Poland St London W1 and will have to leave the building at some point. Wearing those jeans as well. @TheMagpieGroup_a(C) a@IfRafaGoesWeGoa(C) a@AshleyOutdotcoma(C) pic.twitter.com/KB80O9EIlq

2.06pm BST

Despite Donald Trump's strident criticism of China, could the US president end up striking one of his famous deals with Beijing?

Ursula Johnston, head of customs at law firm Gowling WLG, thinks multinational firms must prepare for a full-blown trade war, by working out how their supply chains will be hit by higher tariffs.

An exercise to identify the most cost sensitive supply chains can be undertaken by utilising existing company trade data which can be readily sourced from a variety of internal and external sources including government border authorities and customs brokers.

"However in the long-term, given that both the US and China are starting to realise the realities of an aggressive, closed approach to trade in recent months, one wonders if the more open and collaborative trading relationship with Mexico that has been recently implemented is more typical of what will end up happening in reality."

1.37pm BST

Associated Press is reporting that China is putting off accepting license applications from American companies.

It suggests that Beijing is widening its retaliation against the US trade tariffs -- moving simply beyond slapping tariffs on imports.

The license delay applies to industries Beijing has promised to open to foreign competitors, according to Jacob Parker, vice president for China operations of the U.S.-China Business Council. The group represents some 200 American companies that do business with China.

In meetings over the past three weeks, Cabinet-level officials told USCBC representatives they are putting off accepting applications "until the trajectory of the U.S.-China relationship improves and stabilizes," Parker said.

12.19pm BST

China and Russia's concerns about protectionism may be well-merited, but neither country has a clean slate on the issue.

China has long been criticised for protecting its own companies at the expense of foreign rivals. It uses the power of the state to support domestic firms in a way that EU and US rivals can only dream of.

11.20am BST

Newsflash: The chairman of Royal Bank of Scotland has warned that taxpayer can't expect to recoup the money spent rescuing the bank.

"The focus on survival over a decade has had a cost.

"The bank has lost almost 130 billion during the period. That amounts to around four-and-a-half times the bank's current market capitalisation."

Related: Hammond defends RBS shares sale after 2bn loss to taxpayers

"It seems clear that, in aggregate, the cost of these remedies to the bank and its shareholders was very much greater than could reasonably have been forecast at the time.

"It is another important reason why the book value of the bank is not greater than it is today."

10.53am BST

Ouch! Factory output across the eurozone fell unexpectedly in July.

Industrial production fell by 0.8% during the month, compared with June. Durable consumer goods production shrank by 1.9%, while non-durable consumer goods fell by 1.3%.

Euro area #IndustrialProduction -0.8% in July over June, -0.1% over July 2017 https://t.co/hLHnxmayfn pic.twitter.com/4PKCaZp1ID

10.33am BST

Trade war angst has pulled emerging market stocks down to their lowest level since May 2017 today.

Some traders are pointing to China's decision, yesterday, to ask the World Trade Organisation for permission to impose $7bn a year in sanctions on the United States.

10.02am BST

There are also signs in Vladivostok that relations between China and Japan are warming up.

Japanese PM Shinzo Abe told the economic forum that he hopes to visit China soon, and to welcome Xi to Japan in the future too.

"In response to China's gracious invitation, I intend to visit China this year, the year in which we commemorate the 40th anniversary of the conclusion of the Treaty of Peace and Friendship between Japan and China,"

"After that, I very much wish to invite President Xi to Japan. Through this exchange of visits at the leaders' level, I hope to raise Japan-China relations to a new stage."

9.31am BST

As a teetotaler, Donald Trump wouldn't have appreciated the vodka being quaffed in Vladivostok. But the US president should still note the warmth between Xi and Putin this week.

Such clear chumminess suggests that the White House's belligerence over trade is encouraging friendships and alliances elsewhere.

President Xi Jinping, already said during his speech at Eastern Economic Forum in Russia that the country's relationship with Russia is at all-time high. His message was clear that his country is ready to study other relationship and work on different projects with them. Putin just added more fuel on the fire during the conference and criticised those countries who favour protectionism- a direct hint to US.

Trump needs to change his attitude or the US will become the biggest loser of this trade war...

9.26am BST

President Vladimir Putin has now echoed Xi's attack on US trade policies.

"Basic principles of trade - competition and mutual economic benefit - are depreciated and unfortunately undermined, they're becoming hostages of ideological and fleeting political situations, in that we see a serious challenge for all of the global economy, especially for the dynamically-growing Asia-Pacific and its leadership," he added.

9.10am BST

Other Asian stock market also fell today, dragging shares across the region to their lowest levels in 14 months.

Japanese stocks fell by around 0.5%, while the Hong Kong Hang Seng shed another 0.3%.

8.55am BST

While Xi was speaking in Vladivostok, the Chinese stock market was heading into the red again.

The Shanghai Composite index fell by 0.3% to close at its lowest level since late January 2016, as traders continued to be dogged by trade war worries.

Shanghai Composite closed less than one single point above the lowest close following that epic fall from grace in 2015. Beyond this point, we're back to 4-year lows in China. pic.twitter.com/VUTbl0twnO

8.25am BST

Yesterday Russian president Vladimir Putin treated Xi Jinping to pancakes with caviar, washed down with best vodka, on the sidelines of the Vladivostok economic forum.

Beijing and Moscow have developed a "strategic partnership" reflecting their shared opposition to the "unipolar" world, the term they use to describe perceived U.S. global domination.

The rapprochement has been driven by a strong personal relationship between Putin and Xi, seen as the most powerful Chinese leader since Mao Zedong. The two have met nearly 30 times, and Putin said that the Chinese president is the only world leader whom he once invited to celebrate his birthday.

8.00am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

"There are deep and complex changes underway in the international situation, the politics of force, unilateral approaches and protectionism are rearing their head."

Related: Trump threatens new tariffs on $267bn of Chinese goods

"We have unique geographic benefits. China and Russia are the biggest neighbours, we have solid political ties.

Chinese and Russian relationships are at all times high level."

Related: Salisbury attackers were Russian military intelligence, says May

"Trade is a positive, trade is a plus, trade needs fixing certainly but it is a tool and an engine for growth that should not be under threat, particularly at the moment."

Lagarde warns of US-China trade war 'shock' to emerging markets https://t.co/tECLE6g4Xk