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Analysts said growth could fall further in the current quarter, adding to pressure on communist leaders who took power last year and are trying to shift China from reliance on exports and investment to slower, more sustainable growth based on domestic consumption.
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Investors were also eyeing the tone of negotiations as apossible template for the upcoming debate on lifting the debtceiling in mid-October, which could result in a default on U.S.debt if not passed. The debt limit issue is considered to have abigger impact on markets.
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China's economy has shown signs of picking up but the PMIfigures suggest it is struggling for momentum. Analysts like Zhuhave warned China's economic rebound could be short-lived.Unlike in the past, the government is reluctant to implementstrong stimulus policies that could come back to haunt it longerterm.
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In the case of Mumbai, the Lashkar-e-Taiba (LeT) militant group behind the attack turned the city to its advantage. It spent months getting to know its layout and dynamics, with Pakistani-American David Headley carrying out detailed reconnaissance. The 10 gunmen who snuck in by sea from Karachi and went on to kill 166 people were able to hide among the many boats plying smuggling routes. They landed in Mumbaiâ?s coastal slums where nobody thought to report them to the police. â?They didnâ?t get in there secretly; it is just that people thought they were smugglers,â? says Kilcullen.