Recession fears in the UK grew today after data showed a bigger-than-expected contraction in GDP in August. The British economy shrank by 0.3%, according to the Office for National Statistics, versus expectations for 0.1% growth in a WSJ survey of economists. This comes after growth of just 0.1% in July.

Meanwhile, Bailey said the BOE would end its emergency bond-buying programme on Friday as planned. “My message to the funds involved and all the firms is you’ve got three days left now,” he said at the Institute of International Finance annual meeting in Washington. This comes after the BoE announced it will include inflation-linked gilts in its emergency buying scheme.

Among stocks, home builder Barratt Developments fell 5% and was at the bottom of the FTSE 100 today, after a downbeat trading update.

All eyes are on the release of US producer price index (PPI) figures for September, due later today.

 

Things to read today:

Joe Biden warns of ‘consequences’ for Saudi Arabia after oil production cuts (Financial Times)

Liz Truss and business are at cross-purposes (Financial Times)

Pound slips as Andrew Bailey denies Bank of England will extend bond market support (Daily Telegraph)