China open to 'partial trade deal' with US, as tensions rise – as it happened

Rolling coverage of the latest economic and financial news, as hopes of a trade war breakthrough this week grip markets

• Latest: China open to 'partial deal', when talks resume tomorrow
• Bank of England: trade war is hurting global growth
• Introduction: trade talks resume, but relations look weak
• US blacklists companies over Xinjiang abuses
• China: US must stop "irresponsible remarks"

4.45pm BST

Finally, European stock markets have shrugged off this morning's pessimism, closing higher tonight.

The FTSE 100 has finished 23 points higher at 7,166, up 0.3%.

Traders breathed a sigh of relief that there were no more negative headlines ahead of the US - Sino trade talks, due to start tomorrow. With the Trump administration blacklisting 28 Chinese tech firms and limiting Chinese officials visa the talks had looked destined to fail even before they had begun. However, more recently this afternoon, reports are circulating that China is still interested in achieving a deal, just a much more limited deal and on the condition that no more tariffs are imposed by Trump.

This would not be the broad trade agreement that could put an end to the trade dispute; optimism for such a deal is running low. However, the markets would accept a limited deal as a significant improvement from the current situation. But let's not forget we have been here many times before, where the markets are optimistic of progress only to be disappointed.

3.09pm BST

Here's our news story on the rescue of Thomas Cook's retail arm by Hays Travel, the Just Go Travel operator:

Related: Up to 2,500 Thomas Cook jobs saved as UK stores bought up

3.04pm BST

Just in: the number of vacancies across the US economy has dropped.

According to the JOLTs survey, there were 7.051 million job openings in America in August. That's down from 7.17m in July, and weaker than the 7.19m expected.

#UnitedStates JOLTs Job Openings at 7.051M https://t.co/Mm4fNlsXhW pic.twitter.com/9xJYqIOciS

[RTRS] - U.S. JOLTS JOB OPENINGS 7.051 MLN IN AUG (PREV 7.174 MLN) - LABOR DEPT very weak number...

JOLTS down 3 months in a row. Longest streak of declines since January 2009.

2.55pm BST

Wall Street has opened higher, as investors cling onto reports that China is open to a 'partial trade deal'.

The Dow Jones industrial average gained 186 points, or around 0.7% at the open, recovering some of Tuesday's 314-point losses.

On the trade front, it seems that ministerial negotiations are expected to be tense following the latest announcement by the State Department to restrict visas to certain Chinese officials while prohibiting Chinese AI companies from buying products from US companies without prior approval from the US government.

2.39pm BST

The oil price is rising sharply, as Turkey announces it has begun military action in Syria.

Brent crude has jumped by 1.6%, to $59.18 per barrel.

The Turkish Armed Forces, together with the Syrian National Army, just launched #OperationPeaceSpring against PKK/YPG and Daesh terrorists in northern Syria. Our mission is to prevent the creation of a terror corridor across our southern border, and to bring peace to the area.

#OperationPeaceSpring will neutralize terror threats against Turkey and lead to the establishment of a safe zone, facilitating the return of Syrian refugees to their homes.

We will preserve Syria's territorial integrity and liberate local communities from terrorists.

Turkish warplanes have started to carry out airstrikes on civilian areas. There is a huge panic among people of the region.

Related: Turkey launches military operation in northern Syria

1.50pm BST

Four years ago, the thought of paying to lend money to Greece was laughable.

But today, Athens has successfully sold a487.5m of three-month bonds at an average yield of just below zero (-0.02%).

It means that investors are willing to lend the state $100 in exchange of a promise to get $99 back later. Why? Because they predict that $99 later will buy more stuff than $100 does now. Ergo, they are predicting deflation/deep recession. Only fools celebrate... https://t.co/Jt62ralGrX

1.17pm BST

Another struggling UK retailer has fallen into administration.

Today's victim is Links of London, the high street jewellery chain which employs around 350 people across the UK. It's been trying to find a buyer for months, with Sports Direct chief Mike Ashley (who else?) apparently showing an interest.

Links of London - the luxury jeweller worn by Duchess of Cambridge in her engagement pix - has gone into administration. Move puts 28 stores 350 jobs at risk. pic.twitter.com/Nf67snHLOI

Links of London gone into administration. Deloitte appointed. Business will continue to trade while a buyer is sought. Solvent sale attempted but no can do

1.08pm BST

Soybean prices have risen to their highest level in almost three months.

The news that Beijing would offer to buy more US agricultural goods pushed the price of a bushel of the protein-packed beans to $9.27 3/4 (according to Reuters data).

12.52pm BST

Apple is in the firing line in China today, for offering iPhone users an app that allows activists in Hong Kong to report police movements.

The People's Daily newspaper claimed that HKmap.live "facilitates illegal behaviour," adding:

"Is Apple guiding Hong Kong thugs?" the newspaper said.

Related: 'Protecting rioters': China warns Apple over app that tracks Hong Kong police

12.40pm BST

Heads-up. The FT have now corrected their story.... removing the claim that China will offer to buy an extra $10bn of US goods per year.

11.07am BST

Investors are shaking off their earlier pessimism, and hoping that we might see some trade war progress after all.

The New York stock exchange is now expected to open higher, but not actually claw back all Tuesday's fall.

US futures going higher still as FT reports that China has offered to buy an extra $10bn of US agricultural goods#DOW 26360 +0.74%#SPX 2916 +0.83%#NASDAQ 7679 +0.97%#RUSSELL 1485 +0.77%#FANG 2542 +1.03%

Safe haven assets leaking here as equities rise on China-US trade hopes#JPY -0.38% against other currencies#CHF -0.15% against other currencies#Gold 1503 -0.2%

11.04am BST

Another intriguing development -- China is apparently proposing buying an extra $10bn of American farm products.

The Financial Times says that vice-premier Liu He will make the offer when he sits down in Washington tomorrow.

Chinese officials are offering to increase annual purchases of US agricultural products by $10bn a year as they seek an interim agreement between Beijing and Washington that will stave off a new round of tariff hikes on October 15, according to people briefed on the two countries' ongoing negotiations.

China's lead trade negotiator, Vice Premier Liu He, is scheduled to begin two days of talks with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Thursday, followed by a meeting with President Donald Trump on Friday if the discussions go well.

China offers to buy extra $10bn of US goods to ease trade war https://t.co/kK3fZfkxuz

10.43am BST

There's some scepticism about the idea of a partial trade deal between the US and China, despite Beijing's apparent enthusiasm.

Jon Ferro of Bloomberg doesn't believe Washington will embrace the idea when talks resume tomorrow.

So China is still open to a partial deal despite tensions ratcheting up. No sign that the below will be enough to bring the US along with them... https://t.co/yOxrugLKRJ pic.twitter.com/sBnCfntD4T

[*CHINA IS OPEN TO PARTIAL U.S. TRADE DEAL DESPITE TECH BLACKLIST] ... The global economy would hardly be able to breathe a sigh of relief, as the past has shown that bilateral relations might deteriorate again at any time. The markets are currently flooded with rumours.

Algo feast again in stocks, reacting to the news from China that they are willing to offer a partial deal but NO concessions to the main sticking points.. so this risk rally will run out of steam rather rapidly and now, the Ball would be in Trump's court. partial deal or no deal

10.24am BST

Newsflash: Global stock markets are suddenly strengthening, on a report that China is open to a "partial trade deal".

A Chinese official has told Bloomberg that Beijing isn't confidence of a comprehensive agreement this week (who is?!). However, they are apparently open to the idea of a partial deal -- as long as Donald Trump didn't impose any more tariffs on goods.

No end to trade war but trade deal/partial trade deal still part of the play book"aTMi pic.twitter.com/L10jRaTafd

Stocks jump on news that China open to partial trade deal despite tech blacklist. Stocks jump with Dax spiking up through 12100. Past hour just goes to show how sensitive markets are to headline risk at present #ES_F #GBP

9.51am BST

The Bank of England has warned of a material risk of economic disruption from no-deal Brexit.

In its latest financial policy summary, the BoE also sounds the alarm that entrenched political uncertainty is hitting the British economy and putting-off overseas investors.

Threadneedle Street said that preparations for a no-deal scenario later this month had improved over the past year, and that major British banks were ready to withstand the fallout from the disruption.

However, it said business investment in Britain was faltering, financial markets and business activity would be disrupted, and that the value of British assets had come under selling pressure. Global investors are also growing increasingly reluctant to buy into commercial property and lend to high-risk UK companies, it warned, in a sign of the uncertainty facing the economy.

The Bank's financial policy committee (FPC) also warned Facebook that its Libra cryptocurrency would need to meet tough regulations before it could launch the payments system in Britain.

In a warning shot to the social media company, it said that digital wallets used for holding the digital currency would need to meet the same safety standards as the rules for regular bank accounts.

9.43am BST

Just in: The Bank of England has warned that the trade war between the United States and China is harming the world economy.

The minutes of its latest Financial Policy Committee meeting, just released, cite the dispute as the biggest short-term threat to financial stability. But it also believes banks can handle it.

9.28am BST

Newsflash: Thomas Cook's entire UK retail estate has been sold, two weeks after the company collapsed.

It provides re-employment opportunities for a significant number of former Thomas Cook employees, and secures the future of retail sites up and down the UK high street.

9.20am BST

Over in the City, Britain's FTSE 100 has clawed back some of yesterday's losses.

The blue-chip index has gained 16 points, or 0.2%, to 7,162, having lost 54 points yesterday.

8.53am BST

Heads-up: Reuters is reporting that China is considering blocking US visitors with "anti-China links" from getting visas.

China is planning tighter visa restrictions for U.S. nationals with ties to anti-China groups, people with knowledge of the proposed curbs said, following similar U.S. restrictions on Chinese nationals, as relations between the countries sour.

China's Ministry of Public Security has for months been working on rules to limit the ability of anyone employed, or sponsored, by U.S. intelligence services and human rights groups to travel to China.

#CHINA MAY RESTRICT U.S. VISAS WITH ANTI-CHINA LINKS: REUTERS

8.33am BST

Carl Tannenbaum, chief economist at financial services firm Northern Trust, has told CNBC's "Squawk Box" show that a trade war breakthrough looks unlikely

It is clear from just the events of today and recent days that the trade negotiations with China are definitely not getting any closer to resolution. If anything, they're getting further away,"

8.33am BST

David Madden, market analyst at CMC Markets, says trade war "woes" are making traders a little scared.

At the start of the week, Beijing made it clear they won't be compromising on industrial policy or government subsidies. Liu He, China's vice premier, will be leading the next round of trade discussions, but he will not carry the 'special envoy' title.

The US government has put visa restrictions on Chinese officials as a response to China's treatment of the muslim community in Xinjiang. Beijing called on the US to keep out of Chinese internal affairs, which put pressure on stocks in Asia.

8.25am BST

Trade war anxieties knocked some Asia-Pacific stock markets into the red today.

Australia is closely reliant on the Chinese economy. It's S&P/ASX index lost 0.7% with consumer-focused companies, energy firms and miners leading the fallers.

7.55am BST

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

"The United States calls on the People's Republic of China to immediately end its campaign of repression in Xinjiang, release all those arbitrarily detained, and cease efforts to coerce members of Chinese Muslim minority groups residing abroad to return to China to face an uncertain fate.

Related: US restricts visas for Chinese officials over 'campaign to erase religion' in Xinjiang

Trade-sensitive stocks were hit hardest, with the NASDAQ down -1.67% while the Philadelphia semiconductor index fell -3.12% (its worst day since August and down to a one-month low.

What is interesting is just how vociferously Powell mentioned that this wasn't QE, saying

"I want to emphasis that growth of our balance sheet for reserve purposes should in no way be confused with the large-scale asset purchase programs that we deployed after the financial crisis. In no sense is this QE", Powell added.