Good morning.
China is spending a record amount of money on Russian energy as it continues to increase its dependence on the Kremlin in the wake of the Ukraine war.
Beijing last month raked in a record $8.3 billion (£7.3 billion) in a haul that included a record amount of coal. In the six months since the start of the war, China has spent $44 billion.
The figures highlight the changing relationship between Russia and the rest of the world, with Putin looking for alternative partners while the West shuns its exports.
Although energy prices have risen since the invasion, China is still buying higher volumes, sometimes at a discounted price.
5 things to start the day
1) FCA to hire ‘growth and competitiveness’ experts as it prepares for ‘Big Bang 2.0’ The Treasury is seeking candidates with experience in using regulation to drive growth in the Square Mile
2) German and Italian industry will struggle to recover from loss of Russian gas, warns Barclays Economists predict the euro zone will shrink, triggering a recession for the entire currency area.
3) How a bitter £11.3bn radio row turned into a Motorola 999 emergency accused of undermining efforts to replace the blue light services’ aging Airwave network
4) CNN’s new chief trying to shake off the channel’s post-Trump hangover, Chris Licht, is overseeing sweeping changes as he struggles to “sort out the treasure from the trash.”
5) A pint of milk is now more expensive than petrol at these supermarkets Dairy price hikes are even outstripping front-end fuel costs
What happened during the night
Asian markets enjoyed a much-needed bounce on Tuesday, following Wall Street’s late rally. Hong Kong led the way, rising more than 1pc, with Sydney not far behind. Tokyo returned from a long weekend to post healthy gains, while Seoul, Singapore, Taipei, Manila, Wellington and Jakarta were also higher.
It arrives today
- Economy: Interest rate decision (China), housing starts (US), building permits (US)
- Corporate: City of London Investment Trust, Frasers (annual results); Haleon, Kingfisher (interim); Moonpig, TUI (Commercial Update)