World stock markets dive as Trump attacks ‘crazy’ US rate hikes

President adds to borrowing costs concern as China tension fuels febrile market mood

A jittery, volatile week on global financial markets has burst into a frenzy of selling, triggered by heavy losses on Wall Street and comments by Donald Trump describing US interest rate hikes as “crazy”.

The Nikkei index in Tokyo was down by 4.25% on Thursday afternoon, while in Hong Kong the index was down 3.9% and Shanghai was at its lowest mark for four years after a plunge of 4.15%.

Related: Crazy Rich Asians can teach us about the region’s economic rise | Kenneth Rogoff

The Australian market has been caught up in the global sell-off amid worries that rising US long-term interest rates will impact economic growth. Keep across the day’s news at #ausbiz

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Climate change will make the next global crash the worst | Larry Elliott

The storm clouds are gathering, but the world’s economies now have far fewer shelters from disaster than they did in 1929

Late last month Indonesia was hit by a devastating earthquake and tsunami that left thousands of people dead and missing. This week the International Monetary Fund arrived in the country to hold its annual meeting on the island of Bali. On the day when the IMF issued a warning about trouble ahead for the global economy, the latest report from the UN’s intergovernmental panel on climate change said the world had only a dozen years left to take the steps necessary to prevent a global warming catastrophe. The message is clear for those willing to hear it: get ready for a time when economic failure combines with ecological breakdown to create the perfect storm.

Even without the added complication of climate change, the challenge facing the finance ministers and central bank governors gathered in Bali would be significant enough. The IMF has cut its forecast for global growth, but the chances are that next year will be a lot worse than is currently forecast. The risks, the IMF says, are skewed to the downside. You bet they are.

Related: World economy at risk of another financial crash, says IMF

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Brexit: Tony Blair warns of long-term damage to UK services sector

Former PM’s thinktank predicts impact could be twice that felt by export industries, with Chequers little better than no deal

Brexit will inflict long-lasting pain on Britain’s service sector, Tony Blair has warned as a report said Theresa May’s plans will be only marginally better than no-deal on the dominant industry.

An analysis carried out for the former prime minister’s Institute for Global Change said that crashing out and trading on World Trade Organisation (WTO) terms would see productivity 4.91% lower in 12 years’ time than if Britain remained in the customs union and single market.

Related: May faces Brexit battle as DUP threatens to sabotage government

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