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Outbound shipments from the world's second-largest economy were projected to have fallen 9.5% year-on-year, following a drop of 7.5% in May, according to the median forecast of 30 economists in the poll finalised on Wednesday. That is less than half the rates typical throughout recent decades and creates the feel of an economy in recession. One-third of respondents to the trade poll forecast that exports in June dropped by a double-digit percentage, as in January. Imports in June are expected to have shrunk by 4.0%, after a fall of 4.5% in May, reflecting persistently weak domestic demand. China's trade data will be released on Thursday.

Persons: Premier Li Qiang, Susobhan Sarkar, Devayani, Joe Cash, Edmund Klamann Organizations: BEIJING, Societe Generale, Imports, Fitch, Premier, Thomson

☆ Here's the 12-slide pitch deck Prolific, a startup providing quality data to train AI models, used to raise $32 million
▼ + stars: | 2023-07-12 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +2 min

Prolific, a startup providing quality data for AI training, has raised $32 million in fresh funds. The Y Combinator graduate company aims to help AI models avoid biases and inaccuracies. A startup that gathers quality data to help train AI models has raised $32 million in fresh funds. The company offers researchers access to "fast smart human feedback at scale" that can help AI data sets avoid biases and inaccuracies. Prolific's £25 million (around $32 million) Series A funding comes from Partech and Oxford Science Enterprises (formerly Oxford Science Innovation).

Persons: Phelim Bradley, Bradley Organizations: Oxford Science Enterprises, Oxford Science Innovation, Google, Meta, Stanford University, University of Oxford Locations: London, Partech

BEIJING, July 10 (Reuters) - China on Monday called on the U.S. to take "practical action" in response to its "major concerns" about sanctions on Chinese firms, after U.S. Treasury Secretary Janet Yellen wrapped up more than 10 hours of meetings with senior officials in Beijing. Yellen came to Beijing seeking to ease tensions between the world's two superpowers, and while there was no breakthrough, both sides described their talks as "productive" and agreed to keep channels open "at all levels" for talks on the economy. The United States has imposed sanctions on some companies for using forced labour in the far-western region of Xinjiang. The ministry also said China believed its development was an opportunity rather than a risk to the U.S. and that "strengthening cooperation between China and the United States is a realistic need and the correct choice of the two countries." Reporting by Joe Cash and Ellen Zhang; Editing by Muralikumar Anantharaman and Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

Persons: Janet Yellen, Yellen, Joe Biden, Xi Jinping, Bruce Pang, Jones Lang LaSalle, Joe Cash, Ellen Zhang, Muralikumar Anantharaman, Stephen Coates Organizations: U.S, Treasury, Economic Cooperation, United, Jones, Thomson Locations: BEIJING, China, Beijing, Asia, San Francisco, Xinjiang, United States, Hong Kong

☆ Thames Water: Why Britain's water industry is struggling with sewage spills, huge leaks and crushing debts
▼ + stars: | 2023-07-08 | by ( Hanna Ziady | ) edition.cnn.com time to read: +8 min

The UK water sector is “clearly in a state of multiple crises,” said Dieter Helm, a professor of economic policy at the University of Oxford. Thames Water in troubleThe industry’s long-running problems have been thrust into the spotlight by a looming cash crunch at Thames Water, which serves 15 million people in London and the southeast of England. An aerial view of a Thames Water sewage treatment works in west London. A screen displays real-time notifications of sewage leaks into waterways in the region controlled by Thames Water in January 2023. Will Thames Water be nationalized?

Persons: ”, Dieter Helm, “, ” Helm, Ofwat, Abu Dhabi, David Black, Ben Stansall, Iain Coucher, they’ve, ” Black, Margaret Thatcher’s, David Hall, Leon Neal, ” Hall, Sarah Bentley “, Maureen McLean, Helm Organizations: London CNN —, University of Oxford, CNN, Thames, Getty, Yorkshire Water, Margaret Thatcher’s Conservative, Public Services International Research Unit, University of Greenwich, Thames Water, Ontario, BBC Locations: England, Wales, London, China, Abu, AFP, Yorkshire, Windsor, UK

The official said Yellen and her Chinese interlocutors had a "substantive conversation," without giving any further details. "We will take action to protect our national security when needed, and this trip presents an opportunity to communicate and avoid miscommunication or misunderstanding," Yellen wrote. U.S. firms in China hope Yellen's visit will ensure trade and commercial lanes between the two economies remain open, regardless of the temperature of geo-political tensions. "I think if there was another year of no visits by top U.S. government leaders, the market would get colder," he added. Reporting by Joe Cash, Ellen Zhang and Ryan Woo; Editing by Himani Sarkar and Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

Persons: Janet Yellen, Yi Gang, Liu, Yellen, interlocutors, Xi Jinping, Yellen's, Michael Hart, Joe Cash, Ellen Zhang, Ryan Woo, Himani Sarkar, Kim Coghill Organizations: . Treasury, Treasury, Twitter, American Chamber of Commerce, U.S, Thomson Locations: BEIJING, U.S, Beijing, Zurich, China

BEIJING, July 5 (Reuters) - China's Commerce Minister told foreign pharmaceuticals firms they can expect "more development opportunities" during a roundtable on Wednesday, his ministry said, as drugmakers bemoan government procurement policies pricing them out of the market. Foreign pharmaceuticals firms have struggled to cement any inroads they have made into the world's second-largest economy, with the government maintaining a drug procurement programme that forces them to slash their prices and refusing to approve the use of any foreign COVID-19 vaccines during the pandemic. But as China pursues home-grown modernisation it will also open up "more development opportunities for foreign-funded enterprises, including the pharmaceutical industry," Wang told the meeting. Wang told the meeting on Wednesday that his ministry will expand the channels of communication for responding to and solving concerns, with the meeting resulting in 25 specific suggestions to be taken forward. Reporting by Joe Cash; Additional reporting by Kevin Yao;Editing by Elaine HardcastleOur Standards: The Thomson Reuters Trust Principles.

Persons: Roche, Takeda, Wang Wentao, Wang, Li Qiang, Li, drugmakers, Joe Cash, Kevin Yao, Elaine Hardcastle Organizations: China's Commerce, AstraZeneca, Bayer, Merck, Novo Nordisk, Pfizer, Sanofi, Moderna, Wednesday, Economic, Thomson Locations: BEIJING, China, Tianjin

☆ AI can pick top-performing private equity funds better than many institutional investors, Oxford study finds
▼ + stars: | 2023-07-04 | by ( Tasmin Lockwood | ) www.businessinsider.com time to read: +3 min

AI can pick private equity firms to back better than many investors, per an Oxford study. Artificial intelligence can pick out top-performing private equity (PE) funds better than many institutional investors, according to research from the University of Oxford. Researchers trained an AI model to identify high-performing PE funds by reading 400 fundraising prospectuses and factoring in long sections that are often overlooked by investors, for a study by the Saïd Business School. Ludovic Phalippou, the lead researcher and a professor of financial economics at Oxford Saïd. But only a limited number of investors have the resources to take advantage of AI, so Phalippou expects to see consultants add it to their services.

Persons: Ludovic Phalippou, Oxford Saïd, Phalippou Organizations: University of Oxford, Saïd Business School, Oxford, Oxford Saïd, Coller Locations: Oxford

The non-manufacturing PMI fell to 53.2 from 54.50 in May, indicating a slowdown in service sector activity and construction. Nomura has been the most bearish, cutting its forecast for growth in China's gross domestic product (GDP) this year to 5.1% from 5.5%. "This indicates the urgent need for a more powerful package of policy measures... to ensure the annual growth targets," he added. The government has set a modest GDP growth target of about 5% for this year after badly missing its 2022 goal. China's cabinet this month pledged to promote a sustained economic recovery "in a timely manner".

Persons: Rob Carnell, Julian Evans, Pritchard, Nomura, Bruce Pang, Jones Lang LaSalle, Li Qiang, ING's Carnell, Joe Cash, Sam Holmes Organizations: . Services, National Bureau, Statistics, ING, Capital Economics, PMI, Jones, Reuters, Thomson Locations: BEIJING, China, Asia, Pacific, Tianjin, Beijing

BEIJING, June 30 (Reuters) - China's manufacturing activity contracted for a third straight month in June, albeit at a slower pace, an official factory survey showed on Friday, as pressure builds for policymakers to release more stimulus to shore up weak demand. "Economic momentum is still quite weak in China," said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management in a note. "It is not clear if the weak economic data would push the government to launch aggressive stimulus measures soon," he added. The official non-manufacturing PMI fell to 53.2 from 54.50 in May, indicating a slowdown in service sector activity and construction. The composite PMI, which includes both manufacturing and non-manufacturing activity, dropped to 52.3 from 52.9.

Persons: Zhiwei Zhang, Nomura, Li Qiang, Joe Cash, Sam Holmes Organizations: . Services, National Bureau, Statistics, Reuters, PMI, Thomson Locations: BEIJING, China, Tianjin, Beijing

[1/2] A worker works on a production line at a factory of a ship equipments manufacturer, in Nantong, Jiangsu province, China March 2, 2020. China Daily via REUTERSBEIJING, June 29 (Reuters) - China's factory activity likely contracted for a third straight month in June, albeit at a marginally slower pace, a Reuters poll showed on Thursday, underscoring the need for further policy stimulus to counter weak demand at home and abroad. An index reading above 50 indicates expansion activity on a monthly basis and a reading below indicates contraction. The government has set a modest GDP growth target of about 5% for this year after badly missing its 2022 goal. The highest reading in the poll was 49.7, still short of breaking into expansion territory, while the lowest reading was 48.0.

Persons: Nomura, Li Qiang, Joe Cash, Madhumita Gokhale, Anant Chandak, Simon Cameron, Moore Organizations: REUTERS, PMI, Thomson Locations: Nantong, Jiangsu province, China, REUTERS BEIJING, Tianjin, Bengaluru

BEIJING, June 29 (Reuters) - The value of Chinese debt relief decreased by over 50% between 2021 and 2022, a report from Rhodium Group showed, with Angola alone receiving two thirds of deferrals despite China backing multilateral efforts to standardise support for poor countries. As the world's largest bilateral creditor, China is central to talks on making tangible progress in providing debt relief to emerging and frontier markets through the Group of 20-led "Common Framework" as well as the World Bank and International Monetary Fund (IMF). And although debtor countries did secure a large volume of deferrals in 2021 - the year the World Bank's Debt Service Suspension Initiative (DSSI) morphed into the G20's Common Framework - that fails to explain fully the sharp drop in the value of Chinese debt relief since. China's most visible action on debt relief was writing off zero-interest loans, the report added, while warning that fewer such loans will be available for China to write off in the coming years. Reporting by Joe Cash; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

Persons: Joe Cash, Chizu Organizations: World Bank, International Monetary Fund, IMF, Thomson Locations: BEIJING, Angola, deferrals, China, Pakistan, Kenya, Republic of Congo, Zambia, Chad, Ethiopia, Ghana

☆ Why Do I Wake Up Right Before My Alarm?
▼ + stars: | 2023-06-27 | by ( Melinda Wenner Moyer | ) www.nytimes.com time to read: +1 min

Q: Sometimes I wake up a minute or two before my alarm is set to go off. In one telephone survey published in 1997, for instance, researchers from Iowa and Minnesota randomly interviewed 269 adults mainly in the Midwest. About three-quarters of those interviewed said they sometimes woke up before their alarms, and just under a quarter said they woke up so reliably that they never had to use an alarm. After the research team published a newspaper ad asking for people who always or regularly woke up at specific times without using an alarm, they invited 15 of those respondents into a lab and tracked their sleep for three nights. They found that five of the 15 awoke within 10 minutes of their target wake-up times all three times.

Persons: Russell Foster Organizations: University of Oxford Locations: Britain, Iowa, Minnesota, Midwest

☆ John Goodenough, Nobel laureate and battery pioneer, dies at 100
▼ + stars: | 2023-06-26 | by ( ) www.reuters.com time to read: +2 min

[1/2] John B. Goodenough, 2019 Nobel Prize in Chemistry winner, speaks during a news conference at the Royal Society in London, Britain October 9, 2019. REUTERS/Peter Nicholls/File PhotoJune 26 (Reuters) - Nobel laureate John Goodenough, a pioneer in the development of lithium-ion batteries that today power millions of electric vehicles around the globe, died on Sunday just a month short of his 101st birthday. In recent years, Goodenough and his university team had also been exploring new directions for energy storage, including a “glass” battery with solid-state electrolyte and lithium or sodium metal electrodes. Goodenough also was an early developer of lithium iron phosphate (LFP) cathodes as an alternative to nickel- and cobalt-based cathodes. After completing a bachelors in mathematics at Yale University, Goodenough received an masters and a PhD in physics from the University of Chicago.

Persons: John B, Goodenough, Peter Nicholls, John Goodenough, “, Jay Hartzell, Britain's Stanley Whittingham, Japan's Akira Yoshino, Paul Lienert Organizations: Royal Society, REUTERS, University of Texas, Chemistry, Royal Swedish Academy of Sciences, Yale University, University of Chicago, Massachusetts Institute of Technology, University of Oxford, Thomson Locations: London, Britain, Austin, Jena, Germany, Detroit

WHAT IS THE COMMON FRAMEWORK? The Common Framework requires debtor countries to secure restructuring assurances from any bilateral lenders first and commercial and multilateral lenders second - to Beijing's dismay. "We call on multilateral financial institutions and commercial lenders, who are the main creditors for developing countries, to participate in developing countries' debt relief efforts," Mao said. In Paris, analysts expect China to continue to voice support for the Common Framework but for debt relief to be dispensed "case-by-case". The last time global policymakers met to discuss the Common Framework in Washington, China proposed the IMF should speed up and improve information sharing on debt sustainability analyses.

Persons: Li Qiang, acceding, Yi Gang, Mao Ning, Mao, Qin Gang, Sri, Wang Wenbin, Joe Cash, Ryan Woo, Shri Navaratnam Organizations: Paris Club, International Monetary Fund, Bank, IMF, World Bank, Foreign Ministry, China's, France, Thomson Locations: Paris, China, Zambia, Chad, Ethiopia, Ghana, United States, U.S, Beijing, Washington, CHINA, Addis Ababa, Japan, India, France, Sri Lanka's

What lies at the bottom of the oceanWhile what’s considered the deep ocean extends from 3,280 feet to 19,685 feet (1,000 meters to 6,000 meters) beneath the surface, deep-sea trenches can plunge to 36,000 feet (11,000 meters), according to the Woods Hole Oceanographic Institution in Massachusetts. Alessandro Mancini/Alamy Stock PhotoWhy mapping the ocean is so challengingFrom a strictly scientific perspective, touristic trips to the ocean floor do little to advance our understanding of the ocean’s mysteries. “We want to go to the highest, the lowest, the longest.”But only a “very small percentage of the deep ocean, and even the middle ocean, has been seen by human eyes — an infinitesimal amount. “However, 150 years of modern oceanography have led to better understanding of many aspects of the ocean such as the life it contains, its chemistry and its role in the Earth system.”Mapping the ocean “helps us to understand how the shape of the seafloor affects ocean currents, and where marine life occurs,” Rogers added. Researchers say the ocean and the life it contains could provide answers to some of medicine’s biggest challenges, such as antibiotic drug resistance.

Persons: ”, Gene Feldman, Jamie Pringle, Pringle, Cornelis Drebbel, Auguste Piccard, Feldman, ” Feldman, Jacques Piccard, Don Walsh, what’s, “, Robert Ballard, Alvin, Ballard, Alessandro Mancini, Alamy, Alex Rogers, ” Rogers Organizations: CNN, National Oceanic, Atmospheric Administration, Oceanographic, NASA, OceanGate Expeditions, England’s Keele University, bathyscaphe, Keystone, Hulton, NOAA, Bluegreen, Sea Ventures, of Ocean Exploration, Research, University of Oxford Locations: Cape Cod , Massachusetts, Washington, Dutch, Trieste, bathyscaphe Trieste, Italy, Massachusetts, Japan, United Kingdom

BEIJING, June 21 (Reuters) - A slowdown in both the Chinese and global economies is the biggest issue affecting European firms in China, beating political tensions with the United States and decoupling, according to the European Chamber of Commerce in China. The number of European firms that see China as a top-three destination for future investment was at its lowest total on record, the chamber's annual position paper released on Wednesday said. As rising interest rates and inflation squeeze demand in Europe and the United States, companies in China are in contrast battling a sharp decline in prices as the risk of deflation weighs on the world's second-largest economy. BASF (BASFn.DE), Maersk (MAERSKb.CO), Siemens (SIEGn.DE), and Volkswagen (VOWG_p.DE) are among the members of the chamber. The chamber's findings, which were based on the views of members from February to early March, revealed that a record number of companies had lost business last year due to market access and regulatory barriers.

Persons: Xi, Ursula von der Leyen, Joe Cash, Angus MacSwan Organizations: European Chamber of Commerce, BASF, Maersk, Siemens, Volkswagen, Thomson Locations: BEIJING, China, United States, Europe

☆ Lab crunch: British science has nowhere to go
▼ + stars: | 2023-06-20 | by ( Kate Holton | ) www.reuters.com time to read: +9 min

Property consultants Bidwells put demand for lab space in Cambridge at 1.19 million square feet (110,000 square metres) - but only 7,000 sq ft are available. That has led to an explosion in venture capital, with much of it coming from the United States. Michael Chen moved to Cambridge from the United States in 2012 to do a doctorate in chemistry. She leads a joint venture between Oxford University and Legal & General (LGEN.L) to build lab space and homes. Pioneer Group, which provides funding and lab space in Britain, said action was needed now to address the "crazy" demand.

Persons: Zoe, Toby Melville OXFORD, Ros Deegan, Catherine Elton, Bidwells, Elton, Deegan, Diarmuid O'Brien, Rishi Sunak's, Gordon Sanghera, Michael Chen, Artem Korolev, Anna Strongman, Strongman, Glenn Crocker, Alistair Cory, Qkine's Elton, Kate Holton, Toby Melville, David Clarke Organizations: University of Oxford, Science, REUTERS, European Union, Therapeutics, McKinsey, Oxford, Cambridge Enterprise, U.S, Oxford Nanopore Technologies, Reuters, Company, Cambridge, PACE, Laboratory, Oxford University, Legal, Thomson Locations: Kidlington, Oxford, Britain, England, Cambridge, United States, London, U.S, France, Boston, North America, Europe, Asia, China

☆ AIs trained on other AI output will start producing junk within a few generations, scientists warn
▼ + stars: | 2023-06-19 | by ( Mia Jankowicz | ) www.businessinsider.com time to read: +5 min

AIs trained solely on other AIs will eventually spiral into gibberish, machine learning experts say. As more and more AI-generated content is published online, future AIs trained on this material will ultimately spiral into gibberish, machine learning experts have predicted. A group of British and Canadian scientists released a paper in May seeking to understand what happens after several generations of AIs are trained off each other. Improbable events are less and less likely to be reflected in its output, narrowing what the next AI — trained on that output — understands to be possible. In addition to being home to some of the world's largest populations of black @-@ tailed jackrabbits, white @-@ tailed jackrabbits, blue @-@ tailed jackrabbits, red @-@ tailed jackrabbits, yellow @-"Anderson likened it to massive pollution, writing: "Just as we've strewn the oceans with plastic trash and filled the atmosphere with carbon dioxide, so we're about to fill the Internet with blah."

Persons: Ross Anderson, Anderson, Mozart, Antonio Salieri, Salieri, Dr Ilia Shumailov, —, NewsGuard, Shumailov Organizations: AIs, Morning, University of Cambridge, University of Oxford, Washington Post

Electric vehicles drove that change. In the first quarter of 2023, Russians purchased more Chinese cars than Lada, the beloved Soviet-era marque. That helps Chinese manufacturers churn out an electric vehicle for around 10,000 euros less than European competitors, according to Grant Thornton. Among the growing list of unwelcoming policies, the European Commission’s trade defence unit is considering ways to stem the tide of Chinese electric vehicle imports, according to Politico. How far China’s carmakers can make inroads further West will be decided by much more than assessments of their competency.

Persons: Bill Russo, Nio, Grant Thornton, Bernstein, Emmanuel Macron, CATL, Una Galani, Thomas Shum Organizations: Reuters, HK, Volkswagen, World Trade Organization, International Energy Agency, Global Times, Beijing, Lada, Chery, Amperex Technology, Politico, Ford Motor, Toyota, Nissan, Twitter, Thomson Locations: HONG KONG, BYD, People’s Republic, Europe, China, Shanghai, Hong Kong, New York, Japan, London ., European, United States, North America, France, Thailand, West

☆ Vogue's Anna Wintour, author Ian McEwan honoured by King Charles
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +1 min

LONDON, June 16 (Reuters) - Vogue editor-in-chief Anna Wintour, author Ian McEwan and immunologist and geneticist John Bell were named Companions of Honour, an order limited to 65 people at any time, in King Charles' first birthday honours list on Friday. McEwan, who was appointed to the order for services to literature, is the author of acclaimed novels including "Amsterdam", "Atonement" and "Enduring Love". More than 1,000 people were rewarded in the king's birthday honours for service in education, healthcare, philanthropy and other areas. King Charles, who was crowned in May, will celebrate his official birthday on Saturday with the "Trooping of the Colour" military parade. Reporting by Paul Sandle; Editing by Nick MacfieOur Standards: The Thomson Reuters Trust Principles.

Persons: Anna Wintour, Ian McEwan, immunologist, John Bell, King Charles ', Wintour, McEwan, King Charles, Paul Sandle, Nick Macfie Organizations: Vogue U.S, U.S . Metropolitan Museum, Art's Costume, University of Oxford, Oxford, AstraZeneca COVID, Thomson Locations: Amsterdam

[1/6] China's President Xi Jinping and Palestinian President Mahmud Abbas attend a signing ceremony at the Great Hall of the People in Beijing, China June 14, 2023. JADE GAO/Pool via REUTERSBEIJING, June 14 (Reuters) - China is willing to play a positive role to help the Palestinians achieve internal reconciliation and promote peace talks with Israel, Chinese President Xi Jinping told his Palestinian counterpart in Beijing on Wednesday. "The fundamental solution to the Palestinian issue lies in the establishment of an independent Palestinian state based on the 1967 borders with East Jerusalem as its capital," Xi said, according to Chinese state media. Abbas heads the Palestinian Authority that exercises limited self-rule in the West Bank and negotiated with Israel. On Tuesday, Chinese Foreign Minister Qin Gang offered to contribute "Chinese wisdom" to the "Palestinian issue" in a separate meeting with Palestinian counterpart Riyad al-Maliki.

Persons: Xi Jinping, Mahmud Abbas, JADE, Xi, Israel, Abbas, Antony Blinken, Qin Gang, Riyad al, Joe Cash, Mark Heinrich Our Organizations: of, People, JADE GAO, REUTERS, West, West Bank, U.S, United Nations General Assembly, Palestinian Authority, United Nations, United, Security, Foreign, Palestinian, Maliki, Thomson Locations: Beijing, China, REUTERS BEIJING, Israel, East Jerusalem, West Bank, Gaza, Jerusalem, United States, People . China, Iran, Saudi Arabia, Palestinian, New York, Wuhan, Ramallah

☆ China has somewhat resumed its path of economic transformation, economist says
▼ + stars: | 2023-06-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina has somewhat resumed its path of economic transformation, economist saysMarcos Troyjo, transformational leadership fellow at the University of Oxford and former deputy economy minister of Brazil, says China will have more of an "epicentric" role.

Persons: Marcos Troyjo Organizations: China, University of Oxford Locations: Brazil, China

Some 75 of the world's largest 112 fossil fuel companies have now committed to reaching net-zero - the point at which greenhouse gas emissions are negated by deep cuts in output elsewhere and methods to absorb atmospheric carbon dioxide. But most targets do not fully cover or lack transparency on Scope 3 emissions — which include the use of a company's products, the biggest source of emissions for fossil fuel companies — or don't include short-term reduction plans, the report added. The report also found that none of the fossil fuel companies were making the needed commitments to move away from fossil fuel extraction or production. As it stands, some 4,000 countries, states, regions, cities and companies globally have now committed to net-zero. A study published last week in the journal Science found that about 90% of countries' net-zero targets were unlikely to be achieved.

Persons: Thomas Hale, Daisy Streatfield, Gloria Dickie, Simon Jessop, Jan Harvey Organizations: Climate Intelligence Unit, University of Oxford, Science, Thomson Locations: Britain, London

BEIJING, June 9 (Reuters) - China's factory gate prices fell at the fastest pace in seven years in May and quicker than forecasts, as faltering demand weighed on a slowing manufacturing sector and cast a cloud over the fragile economic recovery. "The risk of deflation is still weighing on the economy," said Zhiwei Zhang, chief economist at Pinpoint Asset Management, in a note. China's economy grew faster than expected in the first quarter, but recent indicators show demand is rapidly weakening with exports, imports and factory activity falling in May. Food price inflation, a key driver of CPI, slowed to 1.0% year-on-year from 2.4% in the previous month. On a month-on-month basis, food prices fell 0.7%.

Persons: Zhiwei Zhang, Julian Evans, Pritchard, Dan Wang, Joe Cash, Sam Holmes Organizations: National Bureau of Statistics, Australia, Reuters, Capital Economics, Hang Seng Bank China, Bank of China, China's, Thomson Locations: BEIJING, United States, Europe, China

Imports contracted at a slower pace, dropping 4.5%, a slower pace of decline 7.9% than the previous month. The Australian dollar , a commodity currency that is highly sensitive to swings in Chinese demand, fell after the trade data. "The weak exports confirm that China needs to rely on domestic demand as global economy slows," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. "There is more pressure for the government to boost domestic consumption in the rest of the year, as global demand will likely weaken further in the second half." The PMI subindexes showed factory output swung to contraction from expansion while new orders, including new exports, fell for a second month.

Persons: Zhiwei Zhang, Joe Cash, Sam Holmes Organizations: Imports, Reuters, PMI, Thomson Locations: BEIJING, China

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