Mining company Glencore has held onto its share price gains right to the close on London markets. Investors liked its plans for a shake-up to slash its debts and mitigate the effects of falling commodity prices and the shares closed up 7% at 131.8p. That followed an all-time low for the shares in the previous session on Friday.

Glencore was the second-biggest gainer on the FTSE 100 on Monday behind fellow miner Antofagasta, up 7.5% at 607p. The FTSE 100 gained 0.5%, or 31.6 points, to 6,074.52 after a subdued trading session when the US markets were closed for Labor Day.

Oil prices are under pressure this afternoon as continuing worries about the economic outlook for China, the world’s biggest energy consumer, weigh on crude.

As investors fret about falling demand and strong supply, London Brent crude is down almost 2.4% at $48.4 per barrel. It earlier hit a low for the session of $48.11. That is less than half a $115 peak in the summer of 2014 (as seen in this chart).

The sell-off follows renewed losses on China’s stock markets overnight. After an extended market holiday, the Shanghai Composite index re-opened to heavy selling and lost 2.5% as the latest efforts by policymakers failed to restore stability.

For Fed watchers, here’s a perspective from Joseph Stiglitz on what the US central bank should do at its upcoming 16-17 September policy meeting - when there are still expectations it could raise interest rates despite the recent turmoil on global markets.

Stiglitz, a Nobel laureate in economics and university professor at Columbia University, says the US Federal Reserve needs to worry about inequality, not inflation.

Writing for Project Syndicate, he says:

If the Fed focuses excessively on inflation, it worsens inequality, which in turn worsens overall economic performance. Wages falter during recessions; if the Fed then raises interest rates every time there is a sign of wage growth, workers’ share will be ratcheted down – never recovering what was lost in the downturn.

Here’s the full piece from Stiglitz:

Sticking with the stock market, it is a big week for the listed housebuilders in the UK.

Berkeley, freshly promoted to the FTSE 100, holds its annual general meeting and releases an interim management statement on Tuesday. As we reported this morning, Tony Pidgley, founder and executive chairman at Berkeley, is expected to face tough questions at the shareholder meeting near the group’s headquarters in leafy Cobham, Surrey, after it emerged last month that his pay package last year was worth £23.3m.

Redrow also updates the market on Tuesday and then it is the turn of Barratt Developments on Wednesday.

Michael Hewson, analyst at CMC Markets UK says this crop of results could show the early effects of recent changes to stamp duty. He comments:

The recent changes in stamp duty thresholds announced by the chancellor last year have also helped slow down house price growth in London, while at the same time helping the lower end of the market, due to the way the changes adversely affect properties over the £2m mark.

On the other hand it has also helped boost the cheaper end of the house price chain due to the cost savings made as a result of the removal of the slab based structure of the duty.

Hewson says Berkeley Group is more exposed to the higher end London market so there is scope for disappointment, as a result of those changes in stamp duty. Redrow meanwhile is expected to deliver strong results, after an upbeat trading update in February. Barratt Developments is more exposed to the lower end of the housing market and so “it is likely to feel the benefits of the recent stamp duty changes more than most”, adds Hewson.

Against a FTSE 100 up 0.4% this afternoon, shares in Berkeley Group are down -o.6% at £33.80 but Barratt Developments is up 0.4% at 634p. Shares in Redrow are up 1.1% at 482.5p.

After an earlier report today suggested that David Cameron and his advisers are urging business leaders not to speak out in favour of the country remaining in the EU, we now have a response from one of the groups pushing for the UK to stay in the union.

UK businesses have a duty to speak out about the benefits of remaining in the EU, Roland Rudd, the chairman of Business for New Europe has said.

As my colleague David Hellier reports, Rudd was responding to a report in the Financial Times (paywall) suggesting business leaders have been warned that making a case for staying in the EU too soon and too loudly will damage the prime minister’s sensitive negotiations.

Rudd said on Monday: “UK business has a clear obligation to talk about the implications of Brexit and why, in the main, they favour EU membership.

“It is hugely supportive of the government’s willingness to accelerate the reform process and has every confidence that it will be successful.”

Here is David’s full story:

The number of European bankers who receive more than a million euros in pay and benefits has fallen (don’t all cry at once), as the EU bonus cap kicks in.

The European Banking Authority reports that 3,178 bankers took home seven-figure salaries in 2014, down from 3,530 the previous year. Around 2,000 of ‘em are based in London.

This is the first year that banks have not been allowed to pay bonuses worth more than 100% of base salary (or 200% with shareholder approval).

However, the City did quickly respond to the clampdown with some ‘innovative’ ideas, such as creating allowances to supplement basic pay. The EBA says that this isn’t acceptable - pay is either fixed, or variable. Take note, HSBC....

One pinch of salt is rarely enough where Greek opinion polls are concerned. But taking that as read, today’s survey shows that this months election is extremely close:

If that’s the end result, then another coalition (or even fresh elections?) could be needed.

The leader of New Democracy (ND), Evangelos Meimaraki, said yesterday that he’d be prepared to work with Syriza’s Alexis Tsipras, in the interest of stability.

Tsipras, who has suffered a raft of defections since triggering the election, yesterday pledged to fight for better bailout terms if reelected. Will voters be convinced? Memories of January’s election, when he vowed to end austerity and renegotiate a better deal for Greece, are still fresh.

Here’s a handy chart showing how the yuan has lost relatively little value against the US dollar, compared to other emerging currencies.

That’s where that $93bn of FX reserves went.....

European stock markets are losing their early fizz, as traders return to worrying about the state of the global economy.

The FTSE 100 is now up just 30 points, handing back half its gains, while France’s market is flat.

The news that China blew $93bn propping up the yuan in August alone has deflated traders. Investors are also noting that Beijing has trimmed its growth forecast for 2015, from 7.4% to 7.3%.

It’s getting serious in Brussels - riot police are now using water cannon against the protesting farmers, after one officer was hurt:

Over in Brussels, thousands of European farmers are urging the EU to help them cope with falling meat and milk prices.

Tractors are blocking the roads in the Belgium capital, causing serious disruption as ministers meet to discuss the situation:

The Brussels press pack aren’t overly impressed, given the huge refugee crisis unfolding across the region.

Farmers have been rather generously subsidised by Brussels since the EU was created, of course - but dairy producers are still suffering as milk prices fall below the cost of production.

Still, pinging eggs at the police is rarely the best way to get your point across:

Hao Zhou, an analyst at Commerzbank, predicts that Beijing will keep spending huge sums to prop up the yuan, saying:

Further intervention can be expected as China reiterates to maintain a “stable currency”. However, it is not costless.

(that’s via fastFT).

China’s slowdown is a serious hurdle to Britain’s much-vaunted ‘March of the Makers’.

Manufacturing body EEF has halved its growth forecast for this year, to 0.7% from 1.5%, citing Chinese volatility and the Greek debt crisis.

Factories are reporting that new orders are weakening, meaning that more companies reporting a drop in output than a rise - for the first time in two years.

Here’s the full story:

European stock markets are shrugging off China’s losses, all gaining ground in early trading.

The FTSE 100 is up 1%, starting the week in positive mood after last Friday’s 2.5% slide. Here’s the picture across Europe:

Today’s selloff shows that Chinese investors still fear further turbulence, despite those reassuring words from central bank chief Zhou Xiaochuan.

Not too surprising, given the People’s Bank of China didn’t cover itself in too much glory in recent weeks, by not acting faster to stem the turmoil.

Connor Campbell of City firm SpreadEx says:

Whilst Xiaochuan might be confident (at least publicly) that the worst is over, investors aren’t fully convinced there won’t be more losses to come.

It doesn’t help that the PBOC’s actions in the past few weeks have hardly eased the situation, meaning whatever assurances the central bank provides hardly carry the previously perceived omnipotent force of the Chinese government, a perception that was perhaps irrevocably damaged across August.

After several sharp falls last week, Japan’s stock market enjoyed a calmer day today.

The Nikkei gained 0.4% by the close, with the yen dipping against the US dollar (good news for exporters).

The City likes the look of Glencore’s $10bn debt reduction plan.

Its shares just leapt by 11%, even though future dividends are being suspended as the company tries to get its finance into better shape.

Speaking of turnaround plans, supermarket chain Tesco has announced the sale of its South Korean division for just over £4bn.

This is the biggest asset sale since CEO Dave Lewis took charge of the struggling retailer in summer 2014.

China’s top economic planning agency helped to ward off a market crash today, by declaring that growth prospects are improving.

The NDRC declared that:

“The power usage, rail freight, as well as real estate prices and turnover have all improved into August, indicating the economy is stabilizing amid fluctuations.”

Stock market traders took heart from the claim, says Chris Weston of IG:

Whether or not we have realistically seen the lows in the various Chinese markets is yet to be seen, but the belief and assurance provided by the Chinese authorities over the weekend suggests we may see better days ahead.

Of course, one day doesn’t make a bull market. However, when you hear that power usage, train freight and property markets are showing signs of improvement, domestic traders listen.