Japan factory output falls, casting doubts about pace of economic recovery

Reuters,

Japan’s factory output took a significant hit in August, raising concerns about the country’s ability to maintain a steady pace of economic recovery. The Ministry of Economy, Trade, and Industry (METI) reported a sharp 3.3% decline in industrial output, far exceeding the predicted 0.9% drop. This fall was primarily driven by disruptions in the motor vehicle sector caused by Typhoon Shanshan, which forced many automakers to halt production.

Additionally, domestic scandals involving automaker certifications further exacerbated the situation, leading to a 10.6% decrease in vehicle production compared to the previous month. Weak U.S. demand for Japanese goods also contributed to the downturn. Economists, including Shungo Akimoto of Mizuho Securities, have expressed caution about the country’s recovery prospects, citing global factors and a slow return to stable production levels as key challenges moving forward.

German inflation sinks to lowest rate since 2021

Deutsche Welle (DW),

Germany’s inflation rate fell to its lowest level in over three years in September, marking a significant economic shift. The Federal Statistical Office announced a provisional inflation rate of 1.6%, a notable drop from the previous month’s 1.9%. This decline has been largely driven by a 7% decrease in energy prices, offering some relief to consumers. However, the cost of services continued to rise, increasing by 3.8%, while food prices grew by 1.6%, in line with the overall inflation rate.

Analysts have pointed to a gradual easing of price pressures, especially in volatile sectors like energy. The core inflation rate, which excludes energy and food, saw a slight drop from 2.8% to 2.7%. This downward trend in inflation has been observed for the past few months, offering some optimism for a broader economic recovery, though rising service costs may still pose a challenge.

China factory surveys show economy weakening as Beijing steps up support

Associated Press (AP),

China’s economy continued to show signs of weakness in September, according to two key factory surveys released on Monday. The Caixin Purchasing Managers Index (PMI) revealed that new manufacturing orders fell at their fastest rate in two years, reflecting a broad-based decline in demand both domestically and abroad. The report indicated deteriorating operating conditions across the manufacturing sector, with firms cutting back on hiring and purchasing activities. Meanwhile, an official survey from the National Bureau of Statistics presented a slightly more optimistic picture, though it still marked the fifth consecutive month of contraction in the manufacturing sector.

The official PMI rose slightly to 49.8 in September, up from a six-month low of 49.1 in August, but remained below the 50-point threshold that separates growth from contraction. While factory output rose marginally, the sharp decline in new orders underscored the mounting challenges facing China’s economy. These latest figures have intensified pressure on Beijing to implement more robust stimulus measures to stabilize growth and support struggling sectors.

Trump repeats insults about Harris’ mental state as some GOP allies urge him to stick to issues

CNN,

Former President Donald Trump once again launched personal attacks on Vice President Kamala Harris, questioning her mental state during a rally in Erie, Pennsylvania. This comes after similar comments he made at a rally in Wisconsin the previous night, where he claimed that Harris was “mentally impaired.” Trump’s remarks drew criticism from some Republican Party members, who have urged him to focus on policy issues rather than personal insults as he continues his campaign for a third presidential run.

At the Pennsylvania rally, Trump also blamed Harris for what he described as the “disastrous” immigration policies under the Biden administration, suggesting that only someone “mentally disabled” could have allowed such outcomes. Despite these controversial remarks, Trump has maintained a loyal base of supporters. However, GOP strategists have expressed concern that these attacks may alienate moderate voters and distract from key policy debates in the lead-up to the 2024 election.

Xi vows ‘reunification’ with Taiwan on eve of Communist China’s 75th birthday

CNN,

Chinese President Xi Jinping reaffirmed his commitment to achieving “reunification” with Taiwan during a high-profile address on the eve of Communist China’s 75th anniversary. Speaking at a state banquet held at the Great Hall of the People in Beijing, Xi described reunification as an “irreversible trend” and a “righteous cause,” vowing that no force could halt China’s historical momentum toward reclaiming Taiwan. Xi’s comments come as tensions between Beijing and Taipei remain high, with increased military activity around the Taiwan Strait in recent months.

Taiwan, a self-governing democracy, has resisted Beijing’s claims of sovereignty, with many Taiwanese citizens identifying as distinctly separate from mainland China. While successive Chinese leaders have pledged to eventually reunite Taiwan with the mainland, Xi has adopted a far more aggressive stance, raising concerns among international observers about the potential for military conflict. Xi’s speech underscored China’s long-standing position that reunification is inevitable and hinted at further efforts to strengthen China’s military capabilities to achieve this goal if necessary.