CPI

This week we have made a conscious effort to buck the media's trend for negative headlines and warnings of the dangers ahead.

China's tightened monetary policy appears to be having the desired effect on inflation as figures for last month showed CPI dipped to 6.1% in September.

Trust boosts exposure to bonds in region in expectation interest rates will keep falling.

Strategists have predicted inflation will fall back to target in the New Year when the VAT rise is stripped out of figures, freeing the Bank of England to pump in more money to stimulate the economy.

China's attempts to cool rising prices have begun to have an impact, as inflation slowed in August after hitting a three-year high the previous month.

Price pressures across a number of areas have seen UK CPI annual inflation rise from 4.2% in June to 4.4% in July.

Schroders' Louisa Lo says a drop in exports will see Asian markets affected by the Western downturn.

ON BONDS

Barack Obama has pleaded with Congress to come up with a compromise to raise the country's debt ceiling and stave off default, reports the FT.

Chinese equities will bottom out this year, according to Mansfield Mok, manager of the £1.2bn GAM Star China Equity fund, who also forecasts China's central bank will loosen its monetary policy in the second of half of this year.