Good morning. Last month, loans amounted to £ 22.8 billion, slightly above the consensus estimates of £ 22.2 billion. Although the government borrowed £ 5.5 billion less than it got 12 months ago to control the pandemic, this was the second worst June recorded as Covid’s costs continue despite the economic recovery.
5 things to start the day
1) Channel 4 attacks “very harmful” privatization plans: Channel 4 has accused the Secretary of Culture of providing evidence to support a sale that would have a “very detrimental” effect.
2) Deputies cut funding for the chip factory after the sale to the Chinese: UK Research and Investment (UKRI) has suspended grants to Newport Wafer Fab according to government instructions following its sale to Nexperia.
3) Sunak, forced to raise taxes or reduce spending, warns IFS: The Institute for Tax Studies says the chancellor’s goal of balancing books is threatened without tax hikes or lower spending.
4) GB News gets fewer viewers than Horror Channel before Farage signs up: First-night ratings show that Ukip’s ex-leader attracted nearly 100,000 viewers to the emerging station.
5) The world’s largest asset manager intensifies its game against climate problems: BlackRock voted against 255 councilors during the year through June 30 because they did not act on climate issues, compared to 55 in 2020.
What happened overnight
Asian equities and U.S. Treasury yields rose on Wednesday, recovering some of the week’s losses as investors assessed economic concerns, but the dollar was firm in concerns about the impact of a variant of rapidly expanding coronavirus.
Covid’s growing infection has shaken global markets this week as investors dumped risky assets, seeking stability in safe haven assets like bonds. This caused the stock to fall and kept the U.S. 10-year benchmark yield on Tuesday at a five-month low.
But on Wednesday, MSCI’s broader Asia-Pacific stock index outside Japan rose 0.17%, reducing weekly losses to about 2%, while Japanese Nikkei rose 0. 9% after touching the six-month lows the day before.
Sentiment in Japan was supported by a jump in exports in June, led by U.S. demand for automobiles and shipments of chip-making equipment destined for China, which raised hopes of a export-driven recovery.
Australian shares rose 1.21%, Chinese blue-chips added 0.76% and Taiwan shares rose 0.27%.
Seoul’s KOSPI dropped 0.14 pieces while South Korea reported a daily record of coronavirus cases.
It will arrive today
- Corporate: Nichols, Hochschild Mining (Interim); Antofagasta, Bakkavor, Close Brothers, PayPoint, QinetiQ, Royal Mail, Coca-Cola, Euromoney, Norcros (Commercial update)
- Economy: Government debt (UK)