Wall Street negative at the close

Summary

Wall Street negative at the close
China cuts interest rates by 0.25 percentage points
Shanghai closes 7.6% lower
BHP Billiton profits tumble

Live Reporting

Tom Espiner

Beijing is 'engaged'published at 13:49
Kallum Pickering, senior economist at Berenberg, said China's decision to cut rates sent a clear signal that Beijing, which has intervened several times this year to keep China's high-powered growth story on track, was still prepared to respond to market concerns.
Quote Message
[This] has proved to markets that China is willing to act. Investors have been waiting for them to act and they have. Is this sufficient? It might not be but it does set a precedent that they are engaged and looking to prevent any further declines."
Image source, Getty Images
New solutions needed?published at 13:34
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Indian central bank responds to market turmoilpublished at 12:10
The governor of the Reserve Bank of India has been reacting to the turmoil in the Chinese financial markets. Simon Atkinson is the editor of India Business Report. He tweets:
What's behind China's rate cut?published at 12:04
Peter Thal Larsen is the Asia Editor of the analysis service Breakingviews. He tweets:

Be afraid?published at 12:02
BBC economics editor Robert Peston tweets:
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China rate cutpublished at 11:35 BST 25 August 2015
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China rate cutpublished at 11:30
Economics editor Robert Peston comments:
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Spoke too soon. China has cut interest rates and so-called reserve ratios at banks, making it easier for banks to lend. Plainly the market falls have spooked Beijing that its 7% growth target will be missed. Ouch.
More from Robert's blog here.
China cuts ratespublished at 11:25 BST 25 August 2015
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South Africa contractspublished at 11:14
Our Africa Business Report presenter tweets on South Africa's poor economic figures. Its economy has been hit by the sharp slide in commodity prices.
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Why European markets are uppublished at 10:58
Economics editor Robert Peston writes in his blog:
Quote Message
So why on earth has the plunge in Chinese stock markets left European markets unperturbed this morning after yesterday's fall? It may well be that the absence of massive (or any) Chinese state intervention to prop up the market has delivered some kind of coldish comfort to western investors - for two reasons. Another reason why London is up this morning, and Wall Street is expected to open higher, is that China's woes - and the slowdown in emerging markets in general - are seen to have delayed that fateful moment when the Bank of England and the Federal Reserve end our era of near zero interest rates."

Up - and down...published at 10:26 BST 25 August 2015
The South China Morning Post's George Chen tweets:
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German business powers aheadpublished at 10:04
A closely watched indicator of German business confidence is out today and showed a rise in optimism. The Ifo index rose to 108.3 in August, up from 108.0 in July.
Carsten Brzeski, chief economist at ING-DiBa, blogs:
Quote Message
Neither the Greek crisis nor the new Chinese uncertainties and stock market turbulences have been able to dent German business’ optimism.
So why is that? Mr Brzeski continues:
Quote Message
There are two possible explanations for today’s surprise increase. Either the ongoing stock market turbulences came simply too late to have an impact on the Ifo survey and will therefore only unfold their full negative impact next month, or German businesses are a bunch of ice-cold realists, sticking to the pure facts. In our view, there are many arguments in favour of the latter.
Image source, Getty Images

'Markets have always been irrational'published at 09:50
Business live page reader Chander Hingorani emails:
Quote Message
Markets have always been irrational. Sentiment and emotion always drives the market. It is good that commodities and oil prices are down. It will help the manufacturing industry and the economy. It is also the time to buy. As Warren buffet said. Look at market fluctations as your friend rather than your enemy.
The Apple emailpublished at 09:39
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Postpublished at 09:38 BST 25 August 2015
Nothing to see here...published at 08:07 BST 25 August 2015
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More Asian market woepublished at 07:44 BST 25 August 2015
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Shanghai falls 7.5%published at 07:36
As trading draws to a close for Tuesday, Shanghai is now sinking by 7.5%.
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The Great Fall of China explainedpublished at 07:06 BST 25 August 2015
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Asian markets reversepublished at 07:02 BST 25 August 2015
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