Thanks for joining me. The Office for National Statistics has released its first figures showing the level of growth in Britain’s economy under Sir Keir Starmer’s premiership.
It showed the economy grew by 0pc during July, showing it stagnated after economists had expected it to grow by 0.2pc.
5 things to start your day
1) ‘Negative view of work’ fuelling joblessness among young people, says senior NHS chief | NHS Confederation head says tackling rise in youth inactivity must start in the classroom
2) TV industry takes £400m hit as Channel 4 and ITV slash spending | Production companies are feeling the effect of ad slumps and inflation’s impact on budgets
3) The nasty surprise threatening to derail Starmer’s growth plans | How half a million unemployed young adults are undermining Labour’s economic agenda
4) Anger as Tripadvisor cancels holiday rental stays at short notice | Closure of company’s accommodation division hits guests with checkouts after Nov 1
5) Andrew Neil issues editorial independence warning after The Spectator sold for £100m | Outgoing chairman says he is unsure if the new owners will shield journalists from outside influence
What happened overnight
Asian shares traded mostly lower after the US presidential debate between Vice President Kamala Harris and former President Donald Trump.
The value of the US dollar has increased against peers in the past when expectations for a Trump re-election have strengthened, among other moves that have come to be known as part of the “Trump trade,” due in part to his calling for tariffs.
In currency trading, the dollar fell 0.2pc against the pound, which is worth $1.31. It fell to 141.72 Japanese yen from 142.41 yen, while the euro cost $1.1036, up from $1.1023.
Japan’s benchmark Nikkei 225 lost 0.8pc in morning trading to 35,867.33, while Australia’s S&P/ASX 200 lost 0.3pc to 7,989.90.
South Korea’s Kospi slipped 0.2pc to 2,517.44 after data showed the seasonally adjusted unemployment rate in the nation edged down to 2.4pc in August 2024 from 2.5pc in July, the lowest in a year as the number of unemployed people declined.
Hong Kong’s Hang Seng dipped 1.5pc to 16,984.02, while the Shanghai Composite slipped 0.8pc to 2,719.73.
Wall Street’s benchmark S&P 500 index closed up yesterday but concerns about slowing economic growth stunted gains and the Dow dipped as bank stocks sank after warnings of current-quarter weakness.
The S&P 500 gained 0.4pc, closing at 5,495.52. The Dow Jones Industrial Average of 30 leading US companies fell 0.2pc, to 40,736.96, and the Nasdaq Composite gained 0.8pc, closing at 17,025.88.
In the bond market, the yield on benchmark 10-year US Treasury notes fell to 3.64pc from 3.70pc late on Monday.