China's leaders meet to draw up an economic blueprint

Summary

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Marketplace Morning Report: "China's Leaders Meet to Draw Up an Economic Blueprint"

Date: October 20, 2025
Host: William Lee Adams (BBC World Service)
Duration: ~9 minutes

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Episode Overview

This episode delivers a concise update on overnight global economic developments, with a main focus on China’s Communist Party meetings to set its next five-year economic plan amid fresh data showing slowing growth. Other segments cover breaking tech news about Amazon’s AWS outage, Bolivia’s presidential election, record-high global gold prices, and their impact on Indian consumers and businesses.

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Key Discussion Points & Insights

1. China’s Economic Slowdown and Party Meetings

(Start – 03:18)

• Fresh Data on China’s Economy:
  Stephen McDonnell (BBC China Correspondent) reports that China’s third-quarter GDP is down year-on-year, revealing broader economic struggles.

  • Quote: "In short, a slowing year. On year third quarter GDP is down." — Stephen McDonnell (01:38)
  • Falling house prices: While this could help young buyers, many homeowners who purchased at inflated prices are now facing losses.
  • A similar pattern is seen with household goods: decreasing prices are leading to deflationary pressures.
  • Quote: "If the prices are coming down and people are waiting for them to come down further and people keep pushing the price down in response to that, this is all having a deflationary impact on the Chinese economy." — Stephen McDonnell (02:11)

• Implications for the Five-Year Plan:
  The Communist Party’s closed-door meetings aim to draft a new five-year economic blueprint.

  • Economists are watching for signals that the government will try to boost domestic consumption.
  • Possible policy tweaks include enhanced social security, childcare support, and other measures to put more money in people’s pockets and encourage spending.
  • Quote: "What people will be looking for, economists especially, are signs that domestic consumption will be boosted... ordinary Chinese people will be looking out for that because that might mean money in their pockets." — Stephen McDonnell (02:44)

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2. Breaking News: Amazon AWS Outage

(03:20 – 03:35)

• AWS (Amazon’s cloud service) experienced an outage this morning, disrupting major services including Snapchat, Duolingo, Zoom, and Epic Games.

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3. Political Shift in Bolivia

(03:36 – 04:13)

• Rodrigo Paz elected President:
  • Succeeds after years of economic decline and ruling party infighting.
  • Ran as a centrist with the slogan "capitalism for all," promising free-market reforms but also maintaining social programs for the poor.
  • Warns that popular government fuel subsidies are unsustainable, signaling potential price increases.
  • Quote: "He's warned that government fuel subsidies that keep prices below their import costs are not sustainable, meaning prices are likely to rise." — Divina Gupta (03:53)

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4. Global Market Updates

(04:14 – 05:00)

• Japan: Nikkei 225 jumps 3.4% to a record high after a coalition deal clears path for Sanae Takechi to become Prime Minister.
• France: Luxury goods giant Kering sells its beauty unit to L'Oréal for $4.7 billion.
• Gold: Prices hit a record high of $4,300/oz amid global economic and political uncertainty.

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5. Gold’s Soaring Price and Impact on Indian Markets

(05:00 – 08:31)

• On the Ground in Delhi:
  • Davina Gupta (BBC Reporter) describes festive season demand in jewelry stores despite prices jumping by 50% compared to last year.
  • Customers are compromising on size/weight of gold purchases or seeking discounts on making charges.
    • Quote: "We have to think of the price ultimately, you know, but we have no option... we may not go for that heavy, you know, because nowadays kids don't want to wear very heavy jewelry." — Anonymous wedding shopper (05:19)
    • Some buyers shift from gold to platinum for affordability.
      • Quote: "Earlier I was buying, you know, gold, more than 10, 15 grams. This time I purchased for platinum, which is comparatively cheaper." — Customer in Delhi (05:54)
  • Big jewelry brands like Tanishq roll out innovative exchange offers (e.g., trading in old gold without deductions) to retain customers.
    • Quote: "We are doing a gold exchange... anything above 9 carat consumers can come and exchange with no deduction." — Shalini Gupta, Tanishq Regional Head (06:38)
  • Trend Toward Silver:
    • Jewelers are seeing more demand for silver items as gold prices surge.
    • Quote: "Silver is definitely increasing market share away from the showrooms." — Jeweler Shobhit Varma (07:15)
  • Rise of Digital Gold Investments (ETFs):
    • Investors are moving to digital gold for ease of use and security, with record investment levels in September per the World Gold Council.
      • Quote: "You can invest at the push of a button. You can redeem at the push of a button." — Investor Akshay Khatri (07:37)
  • Economic Implications:
    • India's gold import bill is set to climb, potentially widening the trade deficit and fueling inflation.

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Notable Quotes & Memorable Moments

• “In short, a slowing year. On year third quarter GDP is down." — Stephen McDonnell, on China’s GDP figures (01:38)
• "If the prices are coming down and people are waiting for them to come down further... this is all having a deflationary impact on the Chinese economy." — Stephen McDonnell (02:11)
• "Ordinary Chinese people will be looking out... that might mean money in their pockets." — Stephen McDonnell, on expectations from the five-year plan (02:52)
• “We have to think of the price ultimately, you know, but we have no option.” — Indian gold buyer (05:19)
• "Silver is definitely increasing market share away from the showrooms." — Jeweler Shobhit Varma (07:15)
• "You can invest at the push of a button." — Investor Akshay Khatri, on digital gold (07:37)

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Timestamps for Important Segments

• 00:30: Episode proper begins—China’s Communist Party gathers to draw up five-year economic plan
• 01:38: Stephen McDonnell explains new weak GDP, deflation, and housing market pressures in China
• 02:41: What economists are looking for in the five-year plan: measures to boost domestic consumption
• 03:20: Breaking: Amazon AWS outage affects major services
• 03:36: Bolivia elects Rodrigo Paz; economic shift and reform agenda
• 04:14: Global market update: Japan, France, and gold prices
• 05:00: On-the-ground report from Delhi gold markets—impact of soaring prices, shopper adaptations
• 06:38: Tanishq regional head explains gold exchange offers
• 07:05: Shift to silver, rise of digital gold investments, and concerns for India’s trade deficit

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Summary

This brisk morning update covers China’s pivotal economic planning amid troubling data, political and tech news from Bolivia and Amazon, global market highlights, and the effects of record-high gold prices on Indian households. Through expert analysis, on-the-ground reporting, and interviews, listeners gain insight into shifting global market dynamics, consumer adaptations, and the broader economic challenges facing some of the world's largest economies.

Transcript

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[Stephen McDonnell]

Hello. How are you going?

[William Lee Adams]

So we've got new data out of China for the third quarter. What do those numbers tell us about the state of the Chinese economy?

[Stephen McDonnell]

In short, a slowing year. On year third quarter GDP is down. Now, it's not the only bit of data we're getting showing that there are problems with the economy today because the price of houses, homes is coming down. Now, whether that's a problem or not depends who you are in China. In some ways, young people would say, fantastic. Might help me get into the real estate market. But the problem of course, is that other people who bought too high when the bubble was blown up too much, well, they're stuck with these apartments that they've paid way too much for and the prices are coming down. And the same thing is happening with household goods here. Sofas and anything that you might put inside that flat. Well, if the prices are coming down and people are waiting for them to come down further and people keep pushing the price down in response to that, this is all having a deflationary impact on the Chinese economy.

[William Lee Adams]

These figures have come out as China's Communist Party gather for the start of four days of closed door meetings. How can this meeting address the issues in the economy?

[Stephen McDonnell]

Let's talk about the document which they're going to come up with, the five year plan when they release that. What people will be looking for, economists especially, are signs that domestic consumption will be boosted. Now, how do you boost domestic consumption? Well, you put more money into households and hope they spend it. You know, they can tweak Social Security, more backing for childcare, everything that would free people up to do more, to spend more, ordinary Chinese people will be looking out for that because that might mean money in their pockets.

[William Lee Adams]

Stephen, thanks so much for joining us on Marketplace.

[Stephen McDonnell]

No worries. Great to talk to you.

[William Lee Adams]

News just breaking this morning. Amazon's cloud computing service AWS is experiencing an outage disrupting several websites and apps. Outages have been reported at Snapchat, Duolingo, Zoom and Epic Games, among others. Bolivia's electoral tribunal says the pro business senator Rodrigo Paz has been elected as president. He defeated the right wing candidate Jorge Quiroga. Mr. Paz will have to tackle an economic crisis. Here's our South America correspondent, Ione Wells.

[Divina Gupta]

After years of economic decline and infighting within the ruling Socialist Party, many voters wanted change. Rodrigo Paz Pereira, a centrist senator, campaigned with the slogan capitalism for all. He pledged free market reforms, including lowering some taxes and import tariffs while keeping social programs for the poor. But he's warned that government fuel subsidies that keep prices below their import costs are not sustainable, meaning prices are likely to rise.

[William Lee Adams]

Ian E. Wells There, let's do the numbers. Japan's Nikkei 225 climbed 3.4% to a record high. That's on news. The Liberal Democratic Party have reached a coalition deal paving the way for Sanae Takechi to become the next prime minister. And over in France, luxury goods company Kering is selling its beauty business to L' Oreal for $4.7 billion. Late last week, the price of gold hit a record high of more than $4,300 an ounce as investors look for safe places to put their money amid concerns about economic and political uncertainty around. So we go to one of the world's largest gold markets, India, which traditionally sees high sales during the Hindu festival of Diwali, to find out how people and businesses are reacting to the high prices. The BBC's Davina Gupta reports from Delhi.

[Divina Gupta]

I'm at a jewelry store and around me there are shelves with intricate pieces and it's packed with customers because it's a festive season and traditionally families buy gold for weddings and for good luck at this time. But the price jump globally for gold is hard to miss. So are customers ready to pay more or cutting back? We've come up for a shopping for the wedding of our daughter, you know, coming up next month. We have to think of the price ultimately, you know, but we have no option, you know, so some things have to be compromised a little bit. So what are you compromising on? We may not go for that heavy, you know, because nowadays kids don't want to wear very heavy jewelry. Also I'm looking for for some discounts around making charges which is typically over and above the gold value.

[Stephen McDonnell]

For today I bought a ring for my wife. Her birthday is coming. Can understand the price has changed. So my budget this time was low. Earlier I was buying, you know, gold, more than 10, 15 grams. This time I purchased for platinum, which is comparatively cheaper.

[Divina Gupta]

So clearly many people here are trying to adjust their budget as the jewelry is definitely costing more this year. And just to give you an idea, I'm holding a gold necklace which has a beautiful traditional design. This would have cost around $5,000 last year, but now it's 50% more expensive. It's a similar story for many pieces here. And that's why big jewellery brands are now finding creative ways to draw customers in. The idea is not to increase prices but to unlock the access for consumers. Shalini Gupta is the regional head of Tanishq, a jewellery brand owned by the Tata Group in Delhi. So we are doing a gold exchange, the kind of gold exchange we have never done before, that anything above 9 carat consumers can come and exchange with no deduction. And the amount of sale that is coming on the back of gold exchange has also gone up for us from last year. But some shoppers are switching to alternatives like silver.

[Stephen McDonnell]

So this is the coin that we are doing for the baby boy, Amit.

[Divina Gupta]

Jeweler Shobhit Varma in Delhi who's rolling out new gifting options like silver coins to tap into the shift.

[Stephen McDonnell]

Silver will be a part of every jewelry store now. Earlier it wasn't like that. So we are seeing the changing trend. Silver is definitely increasing market share away from the showrooms.

[Divina Gupta]

There are also investors who are betting big on digital gold through exchange traded funds or ETFs According to the World Gold Council, gold ETFs in India saw their biggest ever investments in September. These are essentially stocks backed by physical gold. One of them is Akshay Khatri in Delhi. Why did I choose to invest in digital gold? Specifically, it's because it's easy to invest. You can invest at the push of a button. You can redeem at the push of a button. I don't have to worry about security. I don't have to worry about storing things in lockers. I don't have to worry about purity or potentially, you know, having to buy something, check the make and manufacture of certain point of gold. But here's the catch. India imports billions of dollars worth of gold every year. And experts warn because of gold prices going up, India's import bill is set to rise as well. And this in turn could widen the trade deficit and push up inflation, potentially dimming the shine on the world's fastest growing major economy. In Delhi, I am the BBC's Divina Gupta for Marketplace.

[William Lee Adams]

That's all for today. On behalf of the entire team, thank you for listening. In the UK, I'm William Lee Adams with the Marketplace morning report from the BBC World Service.

[Divina Gupta]

How did we go from free range.

[William Lee Adams]

Chicken and grass fed beef to lab grown meat? It's just this very simple notion that basically the animals that we eat are using an awful lot of the earth and it's one of those things that once you see it, you can't unsee it. I'm Amy Scott and this week on How We Survive, we travel to San Francisco to meet someone who went from growing human heart cells to producing cell cultivated salmon. Could it be the future of meat? Listen to How We Survive on your favorite podcast, Apple.