Hong Kong recession to continue; European markets drop -- as it happened
Rolling coverage of the latest economic and financial news
- Introduction: Hong Kong recession to deepen
- GDP expected to shrink in fourth quarter of 2019
- City blames social unrest for slumping growth
- Bankers bonuses to slump
- In the UK, mortgage approvals rise
4.53pm GMT
Finally, European stock markets have ended the day with a decidedly red hue.
After an impressive 11 consecutive winning sessions the FTSE was on the back-foot heading towards the close.
With Wall Street starting in the red, a stronger pound and little for traders to grab onto in the sluggish seasonal trading period, profit taking was the order of the day.
4.45pm GMT
One US-listed stock is bucking the trend, though.
Nio, the Chinese electric car company, has surged 40% after posting better-than-expected results.
Nio reported a net loss for the quarter to Sept. 30 of 2.52 billion renminbi ($352.8 million), or RMB2.48 per ordinary share, after a loss of RMB9.76 billion, or RMB42.59 a share, in the same period a year ago.
Excluding nonrecurring items, such as share-based compensation expenses and accretion on redeemable non-controlling interests to redemption value, the adjusted loss was RMB2.45 billion, or RMB2.38 a share, beating the FactSet consensus of a loss of RMB2.53 a share.
3.22pm GMT
Wall Street appears to have a post-Christmas hangover (and it's not alone, eh?!).
Stocks are down in early trading, knocking 182 points off the Dow to 28,463.
Live shot of Santa making his way to Wall Street this morning for the 'Santa Rally' pic.twitter.com/eqrDyxf00Y
1.47pm GMT
Time for a quick summary (on a quiet day).
Hong Kong is expected to slump further into recession this quarter. GDP is forecast to have shrank in October-December, for the third quarter running, due to the pro-democracy protests that have been raging for months.
Based on the situation of these few months, it is inevitable that negative growth will continue.
This means the government will be less flexible in using financial resources under an economic recession."
Related: Firms must justify investment in fossil fuels, warns Mark Carney
1.42pm GMT
Just in: The US trade deficit has unexpectedly shrunk.
Imports into America fell by 1.3% in November, while exports rose by 0.7%, according to the Census Bureau.
USD Advance Goods Trade Balance (NOV),
Actual: -$63.2b
Expected: -$68.8b
Previous: -$66.5bhttps://t.co/UnvaSYDAtk
1.23pm GMT
Some 1,200 kilometres north east of Hong Kong, Tesla has been delivering its fist Chinese-manufactured cars -- to some of its own staff.
The first 15 Model 3 cars to roll off the line at the US carmaker's Shanghai factory went to customers who were Tesla employees and were handed over in a ceremony at the plant on Monday.
Tesla will ramp up production during January, marking the start of a full-on assault on the world's largest car market. It has taken less than a year from the start of construction of the $5bn (3.8bn) Shanghai factory in January to the delivery of the first vehicles.
Related: Tesla delivers first China-made cars from $5bn Shanghai factory
1.20pm GMT
European stock markets are not following Asia's rally today.
Instead, the main indices are down on the City's final full trading day of 2019 (tomorrow is a half-day).
The dollar seems has seen all its gains wiped away in the final quarter of the year and we could see that trend continue as the global re-acceleration gains momentum.
With the Fed on hold and the rest of the world starting to have a brighter outlook, we could see more central banks look to abandon negative rates. The reasons for further dollar weakness in 2020 are growing, but the main remains that the Fed will be on hold for the foreseeable future and we should see the euro and commodity currencies outperform.
11.45am GMT
Recession warnings aren't deterring demonstrators from organising major protests later this week.
Events dubbed "Suck the Eve" and "Shop With You" are set for New Year's Eve on Tuesday in areas including the party district of Lan Kwai Fong, the picturesque Victoria Harbour, and popular shopping malls, according to notices on social media.
A pro-democracy march on January 1 has been given police permission and will start from a large park in bustling Causeway Bay and end in the central business district.
11.11am GMT
The pick-up in UK mortgage approvals in November is a "significant surprise", says Howard Archer of the EY Item Club.
He suspects that some home owners may have been keen to move before the general election, as a hung parliament could have created more economic uncertainty in 2020.
10.32am GMT
Those gains in Hong Kong and China today have lifted Asian stock markets to their highest levels in 18 months today.
Global stock markets have gained another $700bn this week in thin trading on santa rally. All equities now worth $87.1tn, just $200bn shy of a fresh life-time high and equal to 100% of global GDP so stocks have entered bubble territory. pic.twitter.com/JgXmKPDWCN
10.08am GMT
Back in the UK, the number of mortgages approved by banks has jumped, despite Brexit uncertainty and this month's general election.
Mortgage approvals for home purchases by the main high street banks in November 2019 were 6.8% higher than a year ago, while remortgage approvals were 12.7% higher.
"Home purchase and remortgage approvals in November held up exceptionally well given that the country was in full General Election mode.
"For a lot of British households, November was a classic case of better the devil you know.
9.42am GMT
Despite these recession warnings, Hong Kong's stock market has closed at a five-month high today.
The Hang Seng index gained 93 points, or 0.33%, to 28,319.
9.03am GMT
Thousands of protesters have taken to the streets in Hong Kong in recent days, as the pro-democracy action enter their seventh month.
It was clear even in November, when protesters set a Christmas tree on fire in the busy Festival Walk mall, that this season was going to be brutal for Hong Kong retailers - the mall will be closed until some time in the first quarter next year, according to its owner Mapletree North Asia Commercial Trust.
Since protests first started in April, visitor numbers have collapsed. In October, the most recent month for which data is available, arrivals to Hong Kong were down 43.7 per cent on a year earlier, depriving the city's businesses of more than 2.5m tourists, the overwhelming majority of them from mainland China.
8.51am GMT
Just in: Hong Kong's imports and exports have both fallen, as its recession dampens demand for goods and services.
The Census and Statistics Department has reported that imports slumped by 5.8% year-on-year in November, while exports declined by 1.4%.
8.37am GMT
Hong Kong's recession is hitting its financial sector workers hard.
"The pay rise and bonus in early 2020 is going to be the worst in a decade," said Gordon Tsui Luen-on, chairman of the Hong Kong Securities Association.
Many brokerage firms froze salaries and reduced bonuses in early 2009 after the global financial crisis hit the local economy, and the Hang Seng Index plunged. Tsui believes the same will happen in 2020 with some brokerage firms even cutting salaries or laying people off.
3/5: Hong Kong's bankers and stockbrokers are expecting to receive their smallest bonuses and pay rises in 10 years after social unrest and the US-China trade war led the city into recession https://t.co/5joKzhOvK4
8.26am GMT
Hong Kong's administration is expected to take fresh measures to support growth in 2020.
Alongside his recession warning, Paul Chan says that his budget, due in February, will include measures for:
"supporting enterprises, safeguarding jobs, revitalising the economy and easing poverty".
8.18am GMT
Hong Kong's chief secretary, Matthew Cheung, has also warned that the City faces "tough tests and challenges in 2020".
In his own blogpost, Cheung wrote:
"The year 2019 has been a year of unremitting shocks and turbulence to our community and our economy.
The past six months have been tough for us, but we will soldier on."
8.04am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
"Based on the situation of these few months, it is inevitable that negative growth will continue.
This means the government will be less flexible in using financial resources under an economic recession."
Related: Hong Kong plunges into deep recession
"This will leave the government with its first budget deficit in the past 15 years.
European Opening Calls:#FTSE 7631 -0.18%#DAX 13297 -0.30%#CAC 6028 -0.15%#AEX 610 -0.24%#MIB 23697 -0.25%#IBEX 9685 -0.16%#STOXX 3777 -0.15%
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