Seychelles is most indebted nation; China manufacturing at 16-month high; Dow down 4.4% in August

1 Seychelles is most indebted nation (Heather Stewart in The Guardian) The idyllic Indian Ocean archipelago of the Seychelles has been revealed as the world's most indebted nation, in a list compiled by campaigners. By including private borrowing from overseas by firms and consumers, as well as government debts, the  Jubilee Debt Campaign says its data reveals the true scale of the burden on struggling countries around the world.

The Seychelles, which received an IMF bailout at the height of the world financial crisis in late 2008, tops the list with net debts worth more than a year and a half's GDP. It is followed by four victims of the eurozone crisis: Portugal, Ireland, Greece and Spain.

The UK is the 98th most indebted country, according to the study. But when gross private debts are taken into account – without offsetting foreign liabilities – the UK shoots up the list. Foreign debts owed by Britain's private sector, mainly by banks, amount to 364% of GDP, making Britain the fourth most indebted country on those terms. Ireland tops this private sector league with debts worth 900% of GDP.

2 China manufacturing at 16-month high (BBC) China's manufacturing activity picked up speed in August, hitting a 16-month high, allaying some fears of a sharp slowdown in its economy. The official Purchasing Managers' Index (PMI) rose to 51 from 50.3 in July. The PMI is a key gauge of the sector's health and a reading above 50 indicates an expansion.

China, the world's second-largest economy, has taken various steps to boost its economy after its growth rate slowed for two quarters in a row. China's economy expanded 7.5% in the April to June quarter, from a year earlier - down from 7.7% in the previous three months. There have been concerns that its growth rate may slow further in the coming months, not least because of a slowdown in demand for Chinese exports from key markets such as the US and Europe. That has hurt China's manufacturing and export sectors, which are key drivers of its economic growth.

Prompted by the slowdown in external demand, Beijing has been trying to boost domestic consumption in an attempt to rebalance the economy and sustain high levels of growth. Beijing has also said that it will implement measures to simplify customs clearance procedures, cut operational fees and facilitate the exports of small and medium-sized private enterprises.

3 Dow down 4.4% in August (Dan Strumpf in The Wall Street Journal) Turbulence returned to stocks, bonds and other markets in August, an omen of what a mounting number of investors and analysts expect to be a fitful autumn. The Dow Jones Industrial Average retreated 4.4% to 14810.31for its largest monthly pullback this year after vaulting to a record high at the start of the month. Oil prices surged to a 2½-year high and the yield on benchmark US Treasury notes continued to march toward 3%, registering 2.747%.

The tumult is likely to continue in the month ahead, investors say, as the Federal Reserve weighs a winding down of its easy-money policies, the US ponders its next move in Syria and officials in Washington wrangle over the federal budget and the debt ceiling. US stock and bond markets took big steps back in August amid concerns over the timeline of the Fed's plan to taper down its $85 billion-a-month stimulus program. Markets also were knocked off-kilter by some less-than-encouraging readings on the US economy, including slowing sales of new homes and downbeat earnings from retailers. A bright spot was an upward revision of second-quarter growth to 2.5%.