Good morning.
A record interest bill brought the budget deficit to £ 22.9 billion in June, limiting the next prime minister’s fiscal firepower as loans for the month reached their highest level outside of Covid’s time.
Debt interest payments, which are rising due to inflation from the huge stock of indexed government bonds, hit an all-time high of £ 19.4 billion in worse-than-expected figures.
Economists said deteriorating public finances “would limit the next prime minister’s ability to provide more relief to households.”
However, Rishi Sunak’s inflation and attack also increased tax revenue by £ 8 billion.
5 things to start the day
1) Gas rationing will not save Europe from a winter crisis Putin’s will to arm the energy supply means the EU will fight to fill storage.
2) Green energy change gives China “leverage” over Britain, warns Lords Excessive dependence on Beijing’s critical minerals market is a “concern for national security”
3) The Guardian editor gave a £ 150,000 pay rise that lowers inflation Katharine Viner’s base salary rose 42% despite newspaper criticism of “lucrative bosses”
4) The robot camera agreement with China was blocked in the first use of the new national security law. The University of Manchester prevented the sharing of technology used in children’s toys, drones and other surveillance equipment.
5) Gatwick hires 400 security staff to deal with travel chaos Recruitment day aims to ease queues as summer school holidays begin
What happened overnight
Shares in Hong Kong have opened slightly lower this morning, with the Hang Seng index falling 0.4%.
The Shanghai composite index fell 0.2%, while the Shenzhen composite index of China’s second-largest stock market also fell 0.2%.
Shares in Tokyo also opened lower, the Nikkei 225 benchmark fell 0.04%
Arrive today
- Economy: Interest Rate Decision (EU), GfK Consumer Confidence (UK), Initial Unemployment Claims (US), Philadelphia Fed Manufacturing Survey (US)
- Corporate: IG Group (annual results); Howden Joinery, Moneysupermarket Group, Ocado (interim); 3i Group, AJ Bell, Anglo American, Brewin Dolphin, Britvic, Close Brothers, Diploma, Dunelm, Euromoney Institutional Investor, Frasers Group, Intermediate Capital Group, QinetiQ, SSE, Workspace Group (commercial update)