Economy contracts amid inflation crisis and recession fears – live updates

Good morning. It’s all about growth this morning, as we get June figures for GDP that will complete numbers for the second quarter.

National output is expected to have taken a 1.2pc knock in June, down in part to the Platinum Jubilee celebrations. Across the quarter, that’s expected to result in a 0.2pc fall.

Elsewhere, the FTSE 100 is on course for a flat day, after falling yesterday despite wider optimism about calming inflation.

5 things to start your day 

1) British EDF customers pay twice as much as French for energy  Macron’s price cap on state-owned supplier shields households from soaring costs

2) Hong Kong suffers record fall in population as people flee zero-Covid curbs  The city lost 113,200 residents in the year to June

3) Breaking up HSBC would unlock up to £29bn payday, says Chinese shareholder  Insurer accuses lender of ‘exaggerating’ challenge of spinning off its Asian business

4) Heathrow sale revives hopes of a third runway under new Prime Minister  But whoever enters Number 10 still faces environmental hurdles and a sector in flux

5) Mark Zuckerberg branded ‘creepy’ by Facebook’s own chatbot  Social media company ‘exploits people for money’, artificial intelligence program warns

What happened overnight 

Asian markets mostly fell on Friday, winding back some of the previous day’s rally, as traders come to terms with the likelihood that central banks will continue to raise interest rates to battle runaway inflation.

Asia struggled to maintain momentum, with Hong Kong, Shanghai, Sydney, Seoul, Singapore, Manila, Jakarta and Wellington all slightly lower.

Tokyo, however, jumped more than 2pc and investors there returned from a one-day break to play catch-up with Thursday’s bounce. Taipei also rose.

Coming up today

• Corporate: 888 Holdings, Flutter Entertainment, TBC Bank Group (interims)
• Economics: GDP (UK), industrial production (UK, EU), manufacturing production (UK), Michigan consumer sentiment index (US)