Global Markets: Power outages hurting China’s economy

Up to 44 per cent of industrial output affected

Compiled by Glen Hallick, MarketsFarm

WINNIPEG, Sept. 28 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Goldman Sachs became the fourth major finance institution to cut its forecast of economic growth in China, due to a series of power outages throughout the country. On Tuesday, Goldman Sachs said China’s economy – the world’s second largest – will expand 7.8 per cent this year rather than 8.2 per cent. The firm estimated that upwards to 44 per cent of China’s industrial output has already been affected by the rolling outages. Reports said environmental controls, supply constraints and soaring prices are to blame. Previous economic downgrades came from Nomura, Morgan Stanley and China International Capital Commission.

– South Korea said North Korea fired a short-range ballistic missile on Tuesday, just as the latter made friendly overtures to the south for improved relations. Only days ago, Kim Yo-jong, the sister to North Korean dictator Kim Jong-un, proposed a formal end to the Korean War, which a cease-fire has been in place since 1953. The missile test is said to be in violation of United Nations sanctions on North Korea prohibiting the country from developing such weapons. However, a North Korean envoy speaking at the UN stated the country had the right to defend itself.

– Reports said that 33 of the 39 miners stuck approximately 3,900 feet underground in Totten Mine near Sudbury, Ont. returned safely to the surface by Monday evening. The remaining six miners are expected to be extracted by 11 a.m. Tuesday, according to Ontario Mine Rescue. The miners became trapped on Sunday after an elevator was damaged. The only means out was for them to climb a series of ladders to the surface. In some cases, those unable to make the climb were hoisted out.

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