Thanks for joining us. Britain has fallen into recession in a blow to Rishi Sunak as he gears up for a general election later this year.
The UK economy shrank by 0.3pc during the final three months of 2023, according to the Office for National Statistics.
5 things to start your day
1) Poor data to blame for Bank’s bad decisions, says Andrew Bailey | Bank of England Governor admits policymaking tools ‘have not served us well’
2) NatWest to appoint insider after debanking crisis | NatWest is preparing to appoint Paul Thwaite as its permanent boss as the Government plans to sell shares to the public
3) How a City giant lost the battle for investors’ wallets | Seven years after its £11bn merger, Abrdn is struggling to prove that all is going to plan
4) Sale of £250m Canary Wharf tower scrapped as investors shun offices | Fresh setback for London financial district after Blackstone shelves plans to sell Cargo
5) If you pay taxes in Britain, prepare to get out now | We’re already paying dearly for the state’s invasion into all parts of the economy, but it could be about to get worse
What happened overnight
Most Asian markets rose, tracking a rebound in Europe and New York and following positive remarks from a senior Federal Reserve official that inflation was headed in the right direction.
Tokyo stocks closed higher, with attention turning to the release of fresh US inflation data at the end of the week.
The benchmark Nikkei 225 index added 1.2pc, or 454.62 points, to 38,157.94 while the broader Topix index ended up 0.3pc, or 7.26 points, at 2,591.85.
Official data showed Germany overtook Japan last year as the world’s third-biggest economy, primarily because of a sharp fall in the yen.
Japan’s economy contracted for a second straight quarter in the three months to December, pushing it into a technical recession, although its GDP grew 1.9pc last year.
Jakarta stocks also rallied after defence minister Prabowo Subianto declared himself the winner in Indonesia’s general election, a result observers said indicated policy continuity.
Wellington and Seoul dipped, while Shanghai was closed for the Lunar New Year break.
The Dow Jones Industrial Average of 30 leading American companies rose 0.4pc, to 38,424.27, the S&P 500 gained 1pc, to 5,000.62 and the Nasdaq Composite index gained or 1.3pc, to 15,859.15.
The yield on benchmark US 10-year Treasury bonds fell 2.7 basis points to 4.289pc, from 4.316pc late on Tuesday.
