Interest payments on UK debt mountain to £7.6bn

GGood Morning.

The government borrowed more than anticipated in May, highlighting risks to public finances as the cost-of-living crisis threatens to plunge the UK into recession.

Rishi Sunak took out another £14bn loan last month, which was £2bn more than economists had predicted.

Interest payments on the debt reached £7.6bn – the highest for any May on record, according to the ONS.

The rise in debt service costs reflects a jump in the retail price index measure of inflation, which hit 11.7pc last month.

5 things to start the day

1) Brussels ‘holds the city to a higher standard than communist China’ ‘Weird and wrong’ to deny Square Mile companies access to the single market

two) British car battery champion tries to win Tesla over Elon Musk More: Charging electric cars to face 10-minute delays amid power rationing

3) Unilever secretly fought the ban on plastic sachets it called ‘evil’ Company lobbied privately against countries’ efforts to get rid of soap packaging – despite promise of pollution

4) Crypto giant Tether targets UK investors with sterling ‘stablecoin’ Launching a sterling product should make it easier for UK traders to access cryptocurrencies

5) Sir Jim Ratcliffe will bring gas to Europe as the bloc fights for supplies Chemical giant Ineos will import up to 1.4 million tonnes of gas a year

what happened during the night

Hong Kong stocks started higher this morning after the previous day’s heavy losses. The Hang Seng index rose 0.7pc.

The Shanghai Composite Index rose 0.06pc, while the Shenzhen Composite Index on China’s second exchange added 0.2pc.

Tokyo stocks opened higher, with the benchmark Nikkei 225 index up 0.2pc.

arriving today

  • Corporate: naked wines (full year results); Serco (declaration of negotiation)
  • Economy: PMI Services (UK, US, EU)manufacturing PMI (UK, US, EU)composite PMI (US, I)GfK consumer trust (UK)economic bulletin (HUH)unemployment claims (WE)bank stress test information (WE)

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