House prices threatened by rising interest rates
There is disappointing economic data to start the day – the latest ONS figures show economic growth did not work in August even as Covid restrictions eased.
Gross domestic product (GDP) rose 0.4% in August, below the 0.5% expected by economists. The ONS released a series of revisions showing an unexpected drop in production in July. The figures mean the economy is now 0.8 pc below its level before the Covid-19 strike in February 2020.
The failure is due to disappointing growth in the service sector, as bars, restaurants and festivals were able to resume unrestricted trade.
These numbers will cast doubts on the ability of the economy to return to pre-pandemic levels this year.
5 things to start your day
1) Toys, clothes and electronics might not arrive at Christmas as freighters have diverted from the UK The shortage of truck drivers means there is no space to unload cargo at the key port.
2) Hut Group shares plunged by a third after critical meeting with investors Around £ 1.8bn was wiped off the market value of the e-commerce company on Tuesday after a shareholder event failed to convince the city.
3) Ben Marlow: Alan Rusbridger and Facebook’s supervisory board were taken for fools The sThe social network’s “Supreme Court” has been totally useless in dealing with alarming complaints from whistleblowers – but effective as a public relations shield.
4) Coal returns as green energy fails to meet post-pandemic demand Countries are turning to coal-fired electricity after renewables failed to keep up with post-pandemic surge in energy demand.
5) Shipping collapses under the weight of supply chain issues Crews on board say it’s the worst disruption they’ve ever seen.
What happened during the night
Asian markets were mixed on Wednesday as investors waited for key US inflation data. Tokyo, Sydney and Taipei edged down, although there were gains in Seoul, Singapore, Manila, Jakarta and Wellington. Shanghai was also in the red ahead of the release of China’s own inflation figures on Thursday.
Intermediate results: Page group
Trade Update: Barratt Developments, Just Eat Takeaway, Man Group
Economy: Trade balance (UK, China), industrial production (UK, EU), manufacturing production (UK), GDP (UK)inflation (WE), FOMC report (WE)