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China’s consumer prices fall for third month as economic recovery lags

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China’s consumer prices fall for third month as economic recovery lags

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China’s consumer prices remained in deflationary territory for the third consecutive month in December, adding pressure on policymakers to restore confidence in the world’s second-largest economy.

The country’s consumer price index fell 0.3 per cent year on year last month, according to official statistics released on Friday. Producer prices dropped by 2.7 per cent.

Both measures fell slightly less than forecast, and marked a marginal improvement from November, when consumer prices declined 0.5 per cent and producer prices slid 3 per cent.

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China’s economy fell into deflation in July and prices have since been flat or fallen in every month except August, adding another challenge for policymakers as they contend with weakened trade, fragile consumer sentiment and a rolling slowdown in the property sector in the wake of three years of strict anti-pandemic policies.

Beijing has undertaken a series of piecemeal stimulus measures, including loosening critical lending rates and stepping up access to credit in strategic sectors, in particular in the property sector, which typically accounts for more than a quarter of economic activity.

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Officials are expected to target gross domestic product growth of about 5 per cent in 2024, similar to the 2023 mark, which was the lowest in decades.

“Fiscal and monetary policies started to move in the right direction in Q4 2023, but it takes time for these policies to be transmitted to the economy,” said Zhiwei Zhang, chief economic at Pinpoint Asset Management. “It is also unclear if these policies are strong enough to offset the deflationary pressure in the economy.”

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Full-year inflation for 2023 was slightly positive at 0.2 per cent, but fell far short of an official upper target of 3 per cent. The producer price index, which reflects factory gate prices and is strongly affected by global costs of raw materials and commodities, has declined every month since October 2022.

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Trade data released on Friday showed China’s exports climbed 2.3 per cent in December from a year earlier in dollar terms, exceeding forecasts and building on an expansion in November that reversed six months of declines.

Imports for December edged up 0.2 per cent, beating expectations of a decline and reversing November’s contraction.

But exports fell 4.6 per cent for 2023, the first full-year decline since 2016, as higher global inflation dented demand for Chinese goods. Full-year imports declined 5.5 per cent, the first fall since 2020.

China’s trade surplus came in at $823bn in 2023, down from last year’s record figure of $878bn.

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Analysts at Capital Economics noted that the December exports growth was partly due to “exporters slashing prices to gain market share”, which ate into already low industrial profits.

“Without the support of price cuts, exporters will find it more difficult to shake off the post-pandemic pullback in global goods demand,” they wrote in a note.

The People’s Bank of China is expected on Monday to cut its medium-term lending facility — a policy tool that allows it to inject liquidity into the financial system — for the first time since August. A poll of Bloomberg economists anticipates a 0.1 percentage point cut, to 2.4 per cent.

Policymakers have also sought to reduce restrictions on home purchases in major cities and have moved quickly to address any signs of spillover risks after a wave of property developer defaults since late 2021, including Country Garden, the country’s largest private developer, last year.

Zhongzhi, a shadow banking conglomerate that controls various investment companies, declared bankruptcy last week, six months after missed payments came to light.

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China’s CPI has in recent months been affected by volatile prices of pork, the largest item in the consumer basket of goods. Core inflation, which strips out energy and food, expanded 0.6 per cent in December, flat from the month before, while services inflation rose 1 per cent year on year.

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Reflections on America’s 250th birthday

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Reflections on America’s 250th birthday

The nation’s capital may be the focal point of the 250th Independence Day celebration, but people all across America have plans to mark the occasion, from boisterous public parades to quiet personal reflections on history.

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As the United States turns 250 years old, Americans across the country are spending the holiday thinking about what the big birthday means to them, with reflections and celebrations as diverse as the nation itself.

NPR’s member station reporters fanned out to collect snapshots of the occasion from sea to shining sea.

In one ‘City of Presidents,’ Main Street is decorated for a party

At least two cities in the U.S.call themselves the “City of Presidents” and Cuba City, in Wisconsin, is one of them, largely due to its patriotic Main Street decorations. Every year from Memorial Day through Veteran’s Day, red, white, and blue shields, one for each U.S. president, are prominently displayed high up on the light poles lining Main Street.

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It’s a tradition that began in 1976 to commemorate the country’s bicentennial, says Donna Rogers, who is president of the ongoing project but admitted that when it first started, she wasn’t particularly tuned-in to the display.

“I was raising three little boys and working at John Deere, so I didn’t really pay too much attention to community service at that time,” she said.

Donna Rogers shows off one of Cuba City's presidential lampposts.

Donna Rogers shows off one of Cuba City’s presidential lampposts.

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A few years later, she was tapped to help keep the initiative alive.

When she thinks of the country’s history, she says the signing of the Declaration of Independence and abolition of slavery top her list, plus a current event–

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“Of course, now, our nation’s 250th birthday. I think those three would be the three most important things in history to me,” she said, quickly adding “[the] right for women to vote, don’t forget that, right?”

Rogers and Cuba City are pulling out all the stops for the 250th, with a parade and a mac-and-cheese festival, because “that was some of our founding fathers favorite foods, along with turkey and cranberries and other items.”

She laughed and admitted she googled that. True or not, Rogers says they’ll go all-out to celebrate the 250th in her “City of Presidents”.

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Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

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Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

Washington — There are fireworks, and then there’s what’s in store for Saturday in Washington, D.C.

When the sun goes down on Independence Day, the skies of Washington are expected to fill with a record-setting 850,000 individual fireworks for a 40-minute spectacle like no one has seen before.

A company called Pyrotecnico will attempt the biggest fireworks show in history, using five generations of family know-how and a background in Super Bowls and large musical acts to help America celebrate its 250th birthday with a bang.

“I mean, it is the biggest show that we’ve done,” Rocco Vitale, president of Pyrotecnico, told CBS News. “…My earliest memories of fireworks displays and doing the Fourth of July was here.”

Pyrotecnico has been planning this year’s show since January, using computers to simulate the display. But now it’s time for the real thing.

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Vitale gave CBS News an exclusive look at his not-so-secret weapons: eight barges out on the Potomac River, each one ready to light up the night sky.
 
“Each firing location has a communication device, and its all set on GPS. And once the time of the show is put into the system, it goes at that time,” Vitale explained.

According to Freedom 250, the organizer of the “Salute to America 250 Celebration & Fireworks” on the National Mall, President Trump will deliver remarks at 9:45 p.m. Eastern Time, and the fireworks display will get underway at 10:45 p.m. The event is expected to draw hundreds of thousands of people.


Join CBS for “The Great American Block Party 250,” a primetime special on Saturday, July 4, hosted by CBS Evening News anchor Tony Dokoupil and Entertainment Tonight’s Nischelle Turner, featuring live musical performances, celebrations around the country, and the largest fireworks show in history in the skies over the nation’s capital. Tune in July 4 at 8 p.m. ET on CBS and stream it on Paramount+ and CBS News 24/7.

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Oregon ER doctors win a ‘David and Goliath’ battle against a national company

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Oregon ER doctors win a ‘David and Goliath’ battle against a national company

A national physician staffing firm tried to take over the contract held by Eugene Emergency Physicians to work in local hospitals. The local physicians used a new state law to oppose the move.

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In between shifts in the emergency room, Dr. Dan McGee was in an Oregon courtroom. He was fighting for his practice — Eugene Emergency Physicians (EEP). The group of more than 40 doctors and physician assistants work at multiple emergency departments; it was being replaced by a national company.

“This was big time, David and Goliath stuff,” McGee said. “You see 14 of their lawyers sitting there and you see three of ours.”

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Those lawyers argued that ApolloMD, the national company, violated Oregon’s corporate practice of medicine law. The 2025 law bans corporations from taking control of a medical practice’s operations and finances.

The case garnered national interest because Oregon’s new law targets the loopholes large staffing firms have been employing to circumvent state corporate medicine laws.

Money for control

Most states have laws requiring that doctors own medical practices, not corporations. These rules aim to put patient interests ahead of profit motives. Over the last several years, companies have used a model where a doctor technically owns the local practice, but as Erin Fuse Brown, a professor at Brown University, explains, those physician owners are often not involved in care and cede hiring, firing and other operational functions to the corporation.

Fuse Brown said these arrangements are attractive to hospitals because these companies often promise more revenue and take over the responsibilities that come with running an ER.

“There’s worry that these investors or these corporate management companies should not be totally controlling the operations and the clinical decisions of those who are trained to deliver patient care,” Fuse Brown said.

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The connection to patient care concerned Dr. Jonas Pologe, who works for Eugene Emergency Physicians, in the Eugene, Ore., area. ApolloMD offered local doctors jobs, but Pologe worried that if he pushed back on decisions ApolloMD made, he could lose work hours.

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