The global economy's fragile underpinnings plus BYD, DeepSeek and China's productivity problems

A ceasefire in the Middle East. A US-China deal. Relatively benign dataflow. The S&P 500 back at a record high. But are things really looking up? Group Chief Economist Neil Shearing is on The Weekly Briefing from Capital Economics to talk to David Wilder about fragilities under the surface of the global economy. He discusses worldwide fiscal risks, why there’s less to see with that US-China deal and those divisions on the FOMC. 

Also on the show, BYD and DeepSeek may be in the spotlight, but their rise reflects deeper structural flaws in China’s economy. They’re a sign of economic success, but also of the growing distortions in the government’s industrial strategy – weaknesses that are increasingly evident in China’s dismal productivity data. Chief Asia Economist Mark Williams has been delving into the details of Xi Jinping’s industrial roadmap and the productivity data to tell David what this all says about China’s economic outlook.

Events and analysis referenced in this podcast:

Read: China’s push for innovation is not lifting productivity
Roundtable: One year on: Is the UK government boosting growth?
Read: Fed independence not a concern for markets, yet
Read: APAC Commercial Property Outlook: Values to fall as region’s markets struggle to recover
Data: APAC Commercial Property