China's economic growth has slowed to one of its lowest rates on record, with a 4.3% growth rate in the quarter ending June 30th. This slowdown is attributed to sluggish domestic demand, despite a surge in exports. The situation is a stark contrast to the previous quarter's 5% growth rate and highlights the challenges the country faces in maintaining its economic momentum. This slowdown is a cause for concern, as it suggests that the country's economic policies may need to be adjusted to address the underlying issues. The slowdown in China's growth has implications for the global economy, as the country is a major player in international trade and investment. The news comes as Thames Water, Britain's largest water company, announces that it has sufficient funds to survive until the end of the year. However, the company is still scrambling to put together a rescue recapitalization plan with creditors, regulators, and the government to avoid temporary nationalization. Thames Water has faced significant criticism for its aging infrastructure and massive debt pile, which has led to sewage pollution in rivers and the sea. The company's debts have grown by £1.7m from last year, reaching £18.5bn. The situation has sparked debates about the future of privatization in the UK, with some arguing for public ownership as a solution. Andy Burnham, the expected new UK prime minister, has expressed support for public ownership of Thames Water. The company's performance, however, is showing signs of improvement, with sewage pollution falling by 18% in the 12 months to the end of March and underlying profit after tax jumping to £203.9m from £12.6m last year. The company's CEO, Chris Weston, acknowledges the ongoing challenges but remains optimistic about the future. In other news, financial markets have been relatively stable, with oil prices increasing modestly after the US abandoned a plan to charge a 20% fee on cargo transiting through the Strait of Hormuz. However, tensions with Iran remain high, with President Trump threatening to expand US strikes to target power plants and bridges if Tehran does not agree to a deal. Asian stock markets have mostly risen, and government bonds have steadied, following a bigger-than-expected cooling in US inflation. The pound has risen against the dollar, and the euro is above $1.14, while two-year Treasury bonds have fallen 9 basis points. The US Federal Reserve chair, Kevin Warsh, has stated that one data point is not enough to declare victory over inflation, indicating that the central bank remains vigilant in its efforts to control inflation. The agenda for the week includes the release of Eurozone industrial production for May, US producer prices for June, the Bank of Canada interest rate decision, and the US Federal Reserve chair's testimony before Congress. The UK Treasury's annual report and accounts are also expected to be released.
