Putin’s gas cuts force Germany into 16 billion euro energy bailout

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A splurge on food and drink over the Platinum Jubilee weekend failed to boost retail sales as consumer spending remained subdued amid runaway inflation.

Retail sales fell 0.1pc in June, according to the ONS. That’s ahead of May’s 0.8pc decline and better than expected, but still points to a worrying picture for the economy.

Food sales jumped 3.1pc thanks to the royal festivities. But that masked a 4.3% plunge in fuel sales as prices at the pump hit record highs, while other sectors also fell.

Meanwhile, GfK’s latest consumer confidence survey remained at its lowest level in 48 years, with soaring food and fuel prices leaving consumers feeling “seriously depressed”.

5 things to start your day

1) Why ending the ECB’s disastrous negative rate experiment won’t save Europe Lagarde’s step rate reversal does little to allay fears of a protracted crisis

2) Tata threatens to close Port Talbot steelworks The company is demanding a £1.5billion lifeline from the taxpayer subsidy to keep the site open

3) Report on botched SFO Unaoil corruption probe lets chief off the hook Embattled director Lisa Osofsky vows to stay put and implement recommendations

4) Top Tory donor attacks Rishi Sunak’s ‘ridiculous’ tax plans Sir Rocco Forte’s call for tax cuts is echoed by business leaders and economists

5) Why Thatcher’s tax cuts are so hard to repeat Experience around the world shows that lowering taxes helps boost growth

What happened overnight

Asian stock markets were on track for their best week in months and the dollar held off recent highs after the European Central Bank raised rates for the first time in more than a decade and bets on the magnitude of rate hikes in the United States have subsided.

The Japanese Nikkei was up 0.2% this morning and was on course to post gains for a seventh straight day. This will likely be the index’s best week since March.

MSCI’s broadest index of Asia-Pacific stocks outside Japan slipped 0.03%, but the index is still set for its best week in about two months.

Hong Kong’s Hang Seng Index rose 0.1pc.

coming today

  • Economy: Services PMI (UK, US, EU), Manufacturing PMI (UK, US, EU), Composite PMI (UK, US, EU), Retail Sales (UK)
  • Company : Beazley (acting); JTC (Commercial Update)

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