FTSE 100 slumps and Wall Street recovery stalls

1. Wall Street recovery stalls
2. FTSE 100 closes down more than 4%
3. Shanghai sheds 8.5%, Hong Kong down 5.2%
4. London mining and oil stocks hammered

Thank you, and good night

Well, what an eventful day that was. Join us bright and early tomorrow morning again - from 06.00 - for more breaking business news.

S&P 500 falls into correction

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The S&P 500 was in correction territory - a fall of more than 10% from its peak - at the end of trading today. The index finished 11% down from its all time high on 21 May.

Wall Street closes sharply lower

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Wall Street has closed sharply lower after a day of very volatile trading on fears of a slowdown in Chinese growth. The Dow Jones was down 3.58% at 15,871.28, the S&P 500 had fallen 3.94% to 1,893.23 points, and the tech heavy Nasdaq fell 3.82% to 4,526.25.

Stock markets rational?

Fed rate hike to be pushed back?

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Expectations for the US Federal Reserve to put interest rates up in September have wavered today as US stock markets and the dollar declined sharply in response to a market meltdown in China. Rate hikes could be pushed back from September to December, or even into next year, pundits said.

China pain for South Africa

Lerato Mbele

BBC Africa Business Report

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"China is South Africa's number one trading partner and a weakening of the Chinese economy will affect the demand for South African goods. So, the immediate future is not promising. While other countries have also been affected by the China slowdown, the situation in South Africa has been made worse by the general state of the domestic economy."

Read more: South Africa rand hits all-time low against the dollar

Wall Street sell-off continues

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With around an hour of trading to go, Wall Street is giving up the gains made in an earlier rally. The Dow Jones is down 3.8% to 15,833.17, the S&P 500 is down 4.2% to 1,888.84, and the Nasdaq is down more than 4% to 4,514.20.

Will China’s slowdown make us poorer?

Robert Peston

Economics editor

"Investors are in effect shouting that the era of so-called Chinese exceptionalism - that China can grow faster for longer than any other economy in history - is over, having become so dependent in recent years on debt-fuelled investment."

Read Robert's full blog post.

Wall Street recovery stalls

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Wall Street stocks are running out of steam again after a short-lived rally earlier. Global markets have slumped on fears about China's economic growth. The Dow Jones is down 2.7% at 16,014.62, the S&P 500 has fallen 2.6% to 1,920.18, and the Nasdaq is down 2.4% to 4,594.46.

How much?

The FTSE 100 lost 4.6% today which sounds bad enough, but in financial terms it equates to a staggering £73.75bn which has been wiped off the value of the UK's top firms. Thanks to the London Stock Exchange for crunching the numbers.

Rand dives against the dollar

Russell Padmore

Business correspondent

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It's not only equity markets which are suffering in today's sell-off. Currencies have also been hit. The BBC's Russell Padmore says that South Africa's currency briefly slumped to its lowest value ever against the greenback today. "Investors bet that weakening growth in China will hit commodity prices hard. Overseas sales of commodities, like coal, gold, and platinum, account for more than half of the nation's exports," he explains.

US stocks climb back up after sharp drops

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US stocks have all but reversed very sharp falls seen at the beginning of trading today. After a precipitous 1,000 point drop in early trading, the Dow Jones is now 114.65 points down, or 0.7%. The S&P 500 is now down around 1%, and the tech heavy Nasdaq is only 0.4% down, having fallen more than 10% at the beginning of trading.

European stocks slide to a halt

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European stock markets closed quite substantially down today. In Paris, the Cac 40 closed 5.35% down at 4,383.46, and in Frankfurt the Dax closed down 4.7% at 9,648.43 points, after a day of volatile trading on global markets.

Investors take refuge in gold

Reuters

Investors are "flying into safe haven assets" like gold, says Alex Lydall, senior sales trader at Foenix Partners. Looking at BBC commodities data, gold was one of the few commodities to rise today.

Miners slump on FTSE 100

Reuters

Miners took a hammering on the FTSE 100 share index today as fears around China's growth continued to bludgeon commodity prices. Glencore shares slumped more than 13%, Anglo American dropped 9.9%, and BHP Billiton dropped 9.2%. Meanwhile, RSA Insurance shares were the only shares to rise today on the FTSE 100 - up by a princely 0.75%. There had been reports that Zurich Insurance wanted to extend a timetable to make a formal £5bn offer for the company.

Oil price drop 'all about China'

Reuters

The further fall in oil prices today, including a 4.4% drop in Brent crude to $43.44 a barrel, reflect concern about a China-led global economic slowdown that would hit oil consumption, some analysts say. "Today's falls are not about oil market fundamentals. It's all about China," said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt. "The fear is of a hard landing and that things get out of the control of the Chinese authorities."

FTSE 100 closes down more than 4%

The FTSE 100 share index has closed 4.67% down at 5,898.87 points after an extremely volatile day of trading. This is the tenth session in a row it has finished down.

Markets saw 'absolute carnage'

BBC News Channel

BBC

Michael Hewson of CMC Markets tells BBC News: "It's been a pretty volatile day... in fact, it's been absolute carnage... We're down at levels last seen in 2012 for the FTSE 100, and that's largely because of the preponderance of mining and commodities stocks within that particular index." He says if the FTSE closes above 6,000 points, "we could well have seen a base", but he adds that there is concern that this sell-off "could have some way to go."

'No ordinary Monday'

Michelle Fleury

BBC business correspondent, New York

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The floor was buzzing long before the US market open. All the traders knew this wouldn't be a typical sleepy August Monday. Minutes after the opening bell, the Dow fell a staggering 1,000 points - its biggest points drop. One floor trader complained his shirt was soaked with sweat after the early plunge. But by late morning, Wall Street was showing some resilience, leading Mark Otto of J Streicher to conclude that Monday's big swings were similar to the "flash crash" of 2010 when billions of dollars were wiped off some of the world's biggest companies in a matter of minutes, only to recover almost as quickly.

European markets stabilise

After some big falls earlier, European markets seem to have stabilised. London's FTSE 100 is about 3.9% lower, as is Frankfurt's Dax. The Cac 40 in Paris is faring slightly worse, down 4.4%, while Madrid's Ibex is about 3.8% lower.

'Do nothing'

Investors should expect more pain until central banks reveal their response to the market sell-off, says Fidelity Worldwide Investment's global chief investment officer Dominic Rossi.

The best thing to do at the moment is to do nothing. The way to enter these treacherous markets is very, very gradually."

FTSE 100 biggest one day falls

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To put things in perspective just a little, here are some handy facts about FTSE 100 one-day falls. The biggest drop in percentage terms was on Tuesday 20 October 1987, when the index closed down 12.2% at 1,801.6 points. Next was a drop of 10.84% on Monday 19 October 1987 - Black Monday (pictured) - when the index fell 249.6 points.

Still no winners...

Still a big empty space where the FTSE 100 risers are supposed to be... And check out those fallers:

BBC

Wall Street update

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There are still no risers on the Dow. Soft drink giant Coca-Cola is the biggest faller on the index, down 6.7%, closely followed by DIY chain Home Depot, down 6.6%. On the tech-heavy Nasdaq, Neflix was down more than 10%, and on the S&P 500, Peabody Energy fell 17%.

Bring out your dead?

Jeremy Cook, chief economist at World First, says the movements in the currency markets have been "awe-inspiring, laughable and downright silly":

China sneezed a couple of weeks ago by devaluing the yuan and the effects of that are finally being felt in a day of massive panic across all asset classes... As for emerging markets and commodity currencies, the picture here reminds me of a scene in a film where a lone man with a barrow trundles down a road, rings a bell, and implores the people of the village to ‘bring out your dead’."

'Snowball effect'

Traders say investors are having to sell to raise cash after suffering losses - and that the chain reaction is yet to end. "There is a snowball effect happening, with margin calls putting pressure on positions and creating forced sellers," said Mark Ward, head of execution trading at Sanlam Securities.

Dow drop

Our New York business correspondent tweets:

Complete panic averted?

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Some calm seems to have been restored on Wall Street. The Nasdaq is now down "only" 4.4%, while the S&P 500 is 4.2% lower and the Dow has fallen just under 4%. In London the FTSE 100 is still down 5.5% at 5.847 points - 347 points lower.

FTSE regains a little ground

Some comfort in London: the FTSE 100 is now down 4.8%, or a mere 298 points, at 5,889 points.

European markets collapse

The main European stock markets continue to tumble. The Dax is Frankfurt is down about 5.9%, while in Paris, the Cac 40 is almost 7% lower.

NYSE 'on edge of panic'

BBC

The BBC's Michelle Fleury in New York says: "NYSE floor trader Stephen Guilfoyle from Deep Value told me US markets are 'bordering on the edge of panic but not quite there yet'. He remembers the crash of 1987 and says this doesn't feel as bad yet."

Markets slump on both sides of the Atlantic

The FTSE 100 is now down 6.2%, or 385 points, at 5,795 points, after Wall Street entered correction territory. The Dow Jones is below 16,000 for the first time since February 2014, off 5.8% at 15,503 points, the S&P 500 lost 94 points to 4.8%, while the Nasdaq composite dropped 8.% at 4,327.96.

BreakingWall Street slumps as trading begins

The Dow Jones Industrial Average has opened 3.6% lower, while the S&P 500 has sunk 3.7%. The Nasdaq is off a whopping 8.25%.

Always look on...

At least someone is looking on the bright side today. Allianz's Mohamed El-Erian, chief economic adviser at Allianz and former Pimco chief executive, tells CNBC: "This is a good time for investors." He may not think so in four minutes, when Wall Street opens.

Glencore shares crumble

Nasty chart of the day (thus far). Glencore shares have crashed more than 11% in afternoon trading to 141p, meaning that the stock is now down almost a third in the past month alone - and a whopping 73% since its May 2011 listing.

BBC

Scary stuff...

The chief executive of Patronus Partners tweets:

BreakingFTSE slumps 5.4%

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This is really getting quite serious. The FTSE 100 in London is now down 5.4%, or 333 points lower, at 5,854. On the Dax in Frankfurt, no firms have risen and the index has fallen nearly 4%. It's a similar story for the Cac 40 in Paris - no winners, and the index is down about 4.7%. Madrid's IBEX 35 is also down about 4%. Wall Street opens in 15 minutes.

Oil prices on the slide

Reuters

Oil prices have continued to fall today, mirroring sharp drops in world markets. Brent crude has dropped almost 4% to $43.67 a barrel, and US crude is at 38.84 a barrel - a drop of about 3.6%.

Osborne: UK 'is not immune'

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George Osborne says Black Monday shows that Britain must "get its house in order". On a visit to Helsinki, the Chancellor said: "I would take it as a reminder that we are not immune from what happens in the world. It's all the more reason why countries like Britain and indeed Finland need to get their own house in order. "You don't know where the next crisis is coming from, you don't know where the next shock is going to come from in the world."

How worried should you be?

Our personal finance corrrespondent tweets:

Sell-off overdone?

Strategists at JP Morgan Cazenove and Mark Evans, a fund manager at Taube Hodson, thinks today's sell-off may have be overdone. "Momentum may carry developed markets lower - the U.S. in particular has risen so strongly and to such a high valuation that a correction was due," he said. "European markets have not re-rated to anything like the same extent and remain attractively valued in our view - though they too may sag a bit further."

Netflix set to open down 10%

It's going to be a messy day on Wall Street when it opens. Silicon Valley commentator Neil Cybart tweets: 

Duncan Weldon: 'This isn't 2008'

Duncan Weldon is the economics correspondent for BBC Newsnight. He tweets:

FTSE 100 down 4.4%

Shares in London continue to lose ground, with the FTSE 100 now down 4.4%. Mining shares remain the biggest losers on the index. There are similar losses for the main indexes in France and Germany. Ahead of the open of trading in the US, S&P futures are down more than 4%.

Rouble keeps falling

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The rouble is down 3% to below 71 to the dollar after oil prices continued to fall. Brent crude is down more than 4% at $43.50 a barrel, with US oil even lower. "Given all the negativity around the rouble, I can see only a one-way move down," said Konstantin Kostrub from ING Eurasia. "If Brent falls to $40 per barrel, I can see the rouble hitting 75 per dollar". The Russian currency was trading at 33 to the dollar just over a year ago.

'Not another Asian financial crisis'

BBC World News

BBC

"We are not talking about another Asian financial crisis," says Jinny Yan, senior economist at Standard Chartered on World News. She points out that the Chinese government is running a fiscal surplus, has "plentiful" foreign currency reserves and is introducing more flexibility to the trading of its currency and has capital controls in place to stop speculators. She also reminds us that the Shanghai Composite Index is still 50% above where it was a year ago.

Meat off the menu?

BBC World News

BBC

Here's one interesting indicator of the state of the real Chinese economy. Raymond Li from BBC Chinese tells BBC World News that an economist he has spoken to highlights that the consumption of meat, with the exception of pork, is falling quite sharply. "In China that is quite unusual and unprecedented," Raymond says.

FTSE under 6,000 points

The day is getting worse for the FTSE 100, which has now slipped under the 6,000 mark at 5,993 points - down 3.1%. That's almost 200 points lower.

China may be 'more of a problem than a solution'

BBC World News

BBC

"Most analysts will say they saw this bubble from a long way off," reports the BBC's Beijing correspondent John Sudworth. But away from the markets the Chinese economy faces "some real strong headwinds". Exports plummeted in July, factory orders are down and the property market is weak, he says. Once the world looked towards China to support the global economy, but now economists worry that "China is more of a problem than a solution", John adds.

We have a riser!

It's only taken almost four hours, but one lonely company has managed to scrape into the risers' list on the FTSE 100: RSA Insurance. Its shares are up 2.2%, or 10.7p, at 502p, following reports that talks with suitor Zurich Insurance made progress over the weekend.

Black Monday?

BBC contributor and London Business School academic Linda Yueh tweets:

'Danger' of rising US interest rates

Financial Times

Given the current conditions, "raising rates in the near future would be a serious error" warns former US Treasury Secretary Larrry Summers in in today's Financial Times. In particular raising rates would "adversely affect employment levels". He also warns that such a move "risks tipping some part of the financial system into crisis with unpredictable and dangerous results". And that was written before today's drama on the financial markets.

Oil revenues slide

Our South America business correspondent tweets:

'Things could get worse'

Connor Campbell, analyst at Spreadex, says that £40bn has been wiped off the market value of companies on the FTSE 100 today. "Things are so bad on the markets that there is almost nothing interesting to say. The DAX and CAC followed the same pattern as the FTSE, seemingly happy to sit at 3% declines with the German index beating its UK counterpart to reach bear market status already. And the worrying thing is it could all worsen this afternoon with the opening of the US markets."

Chinese government 'slow to react'

Our Asia business correspondent Karishma Vaswani comments on today's market falls in Asia and beyond:

Everyone wants to know what the Chinese government is going to do next to shore up shares and confidence in the economy. The smart money is on the central bank reducing interest rates and injecting a semblance of consumer confidence into the markets. That is what many had hoped would happen over the weekend. But at each point in what appears to be an ever-deepening Chinese slowdown, the government has seemed slow to react.

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FTSE 100 down sharply

After three hours of trading, the FTSE 100 is now down 2.6%, or 162 points, at 6,025. Interestingly, the more UK-focused FTSE 250 is doing even worse, now 3% lower at 16,370. Premier Oil is the biggest faller, down 8.5%, followed by Tullow Oil 6.6% lower. There are just two risers (versus precisely zero on the 100): AO World (white goods retailer) and fashion group N Brown.

Headline of the day

Congrats to the Reuters hack who came up with this sub-head today: 

GREAT FALL OF CHINA 

Why China matters pt 2

BBC News Channel

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Business presenter Ben Thompson has been talking about today's stock market falls on the Victoria Derbyshire programme on the BBC News Channel and BBC World. He says investors fear that economic growth in China may not be quite as strong as the government claims it is. "It would take a brave investor to say 'this is the bottom of the market' and move in to buy shares." There is also concern that central banks have few tools left in their arsenal to stimulate growth, such as cutting rates and quantitative easing (aka printing money), combined with falling oil prices. "This time it's a bit different and might not be so easy to put things right," he adds.

Why China matters

Our business presenter tweets:

'Full-blown growth scare'

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Eiji Kinouchi, an analyst at Daiwa Securities in Tokyo, says: "China could be forced to devalue the yuan even more, should its economy falter, and the equity markets are dealing with the prospect of a weaker yuan amplifying the negative impact from a sluggish Chinese economy." US stock futures indicate that the S&P 500 and Dow Jones are expected to open 1.8% and 2.2% lower respectively. "We are in the midst of a full-blown growth scare," say strategists at JP Morgan Cazenove.

Interest rates

Still on the subject of interest rates, our personal finance correspondent tweets:

Fed 'may take its time'

Richard Batley of Lombard Street Research says investors increasingly think that a rate rise by the US Federal Reserve this year would be a "policy mistake": 

There is a good economic rationale to expect the Fed to bide its time. Deflationary pressures in China are mounting more rapidly than even our below-consensus growth forecast implies, and Beijing seems more willing to export this deflation to the rest of the world.

FTSE 100 down 2.7%

After two hours of trading the FTSE 100 is 168 points, or 2.7%, lower at 6,019 points. That brings the losses this year to 8.3% for the London market and to more than 11% for the past 12 months. Ouch. The FTSE 250 is down 2.8% at 16,390 points, but is up 1.9% for the year thus far and 3.2% for the past 12 months. Read more in our wrap here.

Euro pushes higher

BBC

While shares are being pummelled today, the euro has moved sharply higher. It is up 0.85% against the dollar at $1.1484. At one point it hit $1.15. Analysts says that investors are switching funds into both the euro and the yen, which are seen as less risky investments. But what about the dollar? It is being undermined as investors think that an interest rate rise by the US Federal Reserve next month is increasingly unlikely.

Manila market mauled

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Outside China, the biggest fall of the day thus far has been in Manila, where the Philippines' main stock market plunged 6.7%. That was the largest one-day fall since June 2013 and some 16% lower than the record highs of April. Louis Limlingan, head of sales at Regina Capital Development, said: "Eighty to ninety per cent of this sell-off is due to what is happening in China and the US. If you examine our fundamentals, we are still intact. We are being dragged down by the larger world economy."

Markets due a 'reality check'

Stock markets were overdue a "reality check", writes David Buik, market commentator at Panmure Gordon, in his market update:

Maybe China has been economical with the truth about its growth and future prospects. Maybe oil and commodities have fallen out of bed! Yes, emerging market currencies have been trashed against the dollar under a cloud of threatened higher interest rates being implemented in the US. It is also not unreasonable to surmise that stocks are fully valued. Also QE, which at the time of introduction in March 2009 was absolutely essential, is starting to wear off in places. So how could anyone possibly be surprised that there has been some profit taking from wholly unrealistic increases in the value of many shares?

Hong Kong closes 5.2% lower

BBC

In Hong Kong shares closed lower for the seventh consecutive session. Monday's loss for the the Hang Seng index was a steep 5.2%. The chart above shows the steep run-up for shares in Hong Kong during March and April and then the decline, which started in June.

Global growth needed to avoid rout

Business Live

BBC

"It's a bit of a panic at the moment," says Brenda Kelly, head analyst at London Capital Group on Business Live. She says that unless global growth picks up, we are "going to continue to see this rout".

Rate rise on ice?

Our personal finance correspondent tweets:

Mumbai falls 4%

The BBC's Yogita Limaye reports that India's Sensex index has fallen 1,100 points, or 4% - the biggest intraday fall since October 2008. The central bank governor, Raghuram Rajanm, says he is ready to use foreign exchange reserves if needed to arrest the slide. He also said that India is in a relatively good economic position compared to other countries to withstand global market volatility.

FTSE 250 also down

BBC

It's not just the blue-chip index, which is dominated by companies that operate mostly outside the UK, that is being hit today. The FTSE 250 is also 2.5% lower, with mining company Lonmin the biggest faller, down 7.2%. However, there are some risers, with AO World up 2.5% and Riverstone Energy also up a similar amount.

FTSE 100

Our 5 live business presenter tweets:

Dubai rebounds

This is odd. After opening more than 5.6% lower, the Dubai stock market is now back in positive territory, apparently on the back of shares in property companies being snapped up. Could be a rare case of bargain hunting today perhaps. Worth noting that the bourse was open yesterday, however.

Glencore sinks

There are no risers so far on the FTSE 100 as the blue-chip index remains about 2.4% lower. Glencore is the biggest faller, down 5.6%, meaning its shares have almost halved in value this year. Anglo American is also down 5.6% and BHP Biliton is off 5.1%.

Chinese markets: 'Act of desperation'

BBC Radio 4

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Over the weekend the Chinese officials authorised state pension funds to invest in the stock market, in an additional effort to support the financial markets. However, on Today the BBC's Juliana Liu in Hong Kong says that some analysts are seeing that move as "an act of desperation". She says it is also important to remember that 80% of investors in the Chinese stock market are individuals, rather than institutions, so small investors are really suffering.

'Like walking across a minefield'

Stefan Worrall, cash equities manager at Credit Suisse, says: "It's a bit like walking across a minefield at the moment, so people are treading carefully, as they should." Meanwhile, Craig Erlam, market analyst at OANDA, comments: "Another strong sell-off in Asia overnight is once again spreading fear throughout financial markets at the start of the week, piling the pressure on the People's Bank of China to inject some stimulus into the markets stop the rout."

Oil prices slide

BBC

As well as the slide in stock markets, oil is collapsing, falling to levels last seen during the credit crunch of 2009. US crude is trading well under $40 a barrel, with Brent crude falling under $45 a barrel. Analysts say oil prices could continue fall further.

European markets slides

Google Finance

Frankfurt is down 3%, while Paris has fallen by 3.5% as trading begins on the continent. London is now down 2.9%.

Monday's Business Live

Our business presenter tweets:

Shares in Shanghai tumble 8.5%

Shanghai's main index has closed 8.5% lower after being down as much as 9% at one point.

FTSE 100 slides

The FTSE 100 has opened about 2.6% lower at 6,029 points.

Crisis in emerging market currencies

BBC World News

BBC

"Globally we see a massive panic and exit of capital out of emerging markets .... [they] are dropping like a stone," says Bernd Berg, director of emerging market strategy at Societe Generale on World Business Report. He also reminds us that there is nothing that central banks in the west can do, as they are already at zero interest rates. Mr Berg studied the Asian market crisis in 1997 and 1998 for his PhD. He says the current plunge in emerging market currencies is much more serious than that crisis, as all currencies are being affected and not just those in Asia.

Who's to blame?

Newsnight's economics correspondent tweets:

'Sickness becomes contagious'

Peter Thal Larsen of Reuters Breakingviews comments: 

China's stock market sickness is becoming contagious. Shockwaves from the latest selloffs in Shanghai and Shenzhen have rippled across currencies, commodities and Asian bourses. Investors may be losing confidence in China's ability to micro-manage the financial sector - and steer a slowing economy. The latest stock market decline only underscores the futility of [the government's] efforts to prop up share prices at higher levels in July. If officials have now stopped trying to use government money to manipulate the market, the sell-off may actually be positive. Even so, blind faith in China's ability to navigate its many economic challenges has gone for good.

Chinese shares: Investors 'unnerved'

World Service

The possibility that Chinese authorities have lost control over the nation's financial markets is being given as one reason behind the dramatic falls in Chinese markets, says BBC business reporter Tony Bonsignore on the World Service. "We're so used to the idea that China has tight control over things like this and it's thrown so much at the stock market to try and buoy up prices and thrown so much at the economy and nothing seems to be working... and that's unnerving investors."

Those market falls in full:

- Shanghai down 9%- Hong Kong and Tokyo both close down 4.6%- Sydney closes down 4.1%- Taipei down 4.8%- Seoul down 3%  

'Markets are panicking'

Slightly worrying words from Takako Masai, head of research at Shinsei Bank in Tokyo. "Markets are panicking. Things are starting to look like the Asian financial crisis in the late 1990s. Speculators are selling assets that seem the most vulnerable." Fumio Nakakubo, chief investment officer of UBS's wealth management division in Japan, says: "Many people feel they just can't tell what is going on in China. Officially growth is said to be 6-7%. But in reality it could be around 3-4%."

Big losses for Japanese shares

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Ouch. The Nikkei 225 in Tokyo has closed 4.6% lower, down 895 points to 18,540. That is the biggest one-day loss since June 2013 and a six-month low. The broader Topix index did even worse, falling almost 5.9%, or 92 points, to 1,480.

Dubai plunges

In a taste of what lies ahead for the FTSE 100, the Dubai stock market has opened down 5.6%.

FTSE forecast

The chief executive of financial management firm Nutmeg tweets:

'Messy' markets

Newsnight's economics corrrespondent tweets:

Jeremy Corbyn: Economic policy

BBC Radio 4

On Today Simon Jack examines the economic policies of Jeremy Corbyn, the frontrunner to become the next leader of the Labour Party. Mr Corbyn advocates the creation of a national investment bank funded, basically, by printing money. There is a shortfall in spending on social housing, schools and transport systems, Mr Corbyn's economic adviser Richard Murphy tells Simon: "We have to have a mechanism to supply that." He denies that the plan would lead to a lack of discipline in government spending.

UK economy: Still off-balance?

Radio 5 live

What happened to the rebalancing of the UK economy that was going to see the UK export more and rely less on services and credit? "Exports are disappointing and exports are a drag on growth which is very sad," admits the CBI's John Cridland on Wake Up to Money. However, he thinks we have a "very different" economy to the one in the period up to 2008. Consumption and business investment is now based on money that consumers are "really earning" - rather than credit, he thinks.

UK economy: 'Signs' of acceleration

Radio 5 live

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"The real signs of growth here at home are accelerating," says John Cridland, director general at the CBI on Wake Up to Money. The business lobby group now expects growth of 2.6% this year and 2.8% next year, up from its June forecast of 2.4% and 2.5% respectively. Mr Cridland credits improving business investment and consumer spending for the optimistic forecast. "The UK is pretty well positioned, even if there is weakness elsewhere in the world," he says.

Chinese economy: 'Failing to respond'

Radio 5 live

The slowing of the Chinese economy is being held partly responsible for the slump in the Chinese shares. But Richard Jeffrey, chief investment officer at Cazenove Capital Management, points out that the slowing economy is not a new phenomena. "What is new is that the economy is clearly failing to respond to policy initiatives," he says on Wake Up to Money. "It's a command economy that is failing to respond to commands," Mr Jeffrey says. However, he thinks the Chinese slowdown will not damage growth trends in western economies - including the UK.

Chinese shares tumble

Radio 5 live

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Shares in Shanghai have tumbled, with the Shanghai Composite Index trading as much as 8% lower. Over the weekend Chinese authorities announced further measures to boost the stock market, including allowing state pension funds to invest in shares. "Nothing seems to be working," says the BBC's Sharanjit Leyl on Wake Up to Money. She reminds us that share have risen a lot in the last year, so perhaps it was time for a fall. "Many analysts have warned that it's time for a bear market," says Sharanjit.

Ben Morris

Business Reporter

Welcome to the week. It's been another volatile session for shares in China. Meanwhile the CBI is optimistic about the prospects for the UK economy. If you want to get in touch you can email [e-mail].