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The People’s Bank of China said it would lower its one-year benchmark lending rate at the weekend by almost half a percentage point to 5.6% and cut its one-year deposit rate amid concerns that the world’s second largest economy is weakening. The FTSE 100 closed 1% higher at 6750.76 on Friday, while the Dow Jones was also higher in early trading.  Analysts said one of the main effects of the interest rate cut would be to force down the Yuan against the yen and the dollar, helping China to export its way out of trouble. The Yuan has already fallen 10% against the dollar since the summer from a level that was widely regarded as overvalued and may have further to go in the coming months as the economy struggles and the US recovery gathers pace.  The interest rate cut will be welcomed by the millions of Chinese homeowners who pay a large proportion of their salary each month on mortgage payments. Rocketing mortgage debt has become a huge problem in China alongside the massive debts racked up by state enterprises and local authorities.  Officials at the central bank, aware that many homeowners have reduced spending on other items, will hope lower borrowing costs and the cut in deposit rates will encourage them to boost expenditure in other areas of the economy.  China’s slowdown was highlighted by David Cameron as one of his red warning lights signaling the danger of a second financial crash. He said faltering growth in emerging markets was a cause for concern alongside the escalating dispute in Ukraine and the Ebola crisis.  Beijing has maintained that GDP growth continues to stay above 7%. Government figures for the third quarter this year estimated growth at 7.3%.   Meanwhile back in unemployment and recession hit Europe no action from the EU Eurocrats; 7 years after the event they continue to run up their expense claims and take their pay and pensions, while debating what to do.... Pitiful...