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Lloyds gives all staff £1,000 bonus as inflation bites

Good morning.

We start the week with more dire economic data, as the UK economy posted a bigger-than-expected decline for April.

GDP shrank 0.3pc over the month. This outstripped economists’ forecasts and followed a 0.1pc decline in March.

The figures reflect the impact of the 54pc jump in energy prices in April, which exacerbated the cost-of-living crisis for British households as inflation spirals.

All eyes will be on the Bank of England, which will this week announce its decision on interest rates as it grapples with surging prices and a slowing economy.

5 things to start your day 

1) Ad boycott is undermining GB News and free speech, says boss – Angelos Frangopoulos says advertising snub is ‘dangerous for public debate’

2) UK staff try to boost productivity – by working a four-day week  Claims of elitism and logistical issues loom over companies trialling fewer hours

3) Working from home revolution leaves ‘permanently scarred’ high streets – Footfall expected to remain 10pc lower than it was before the pandemic

4) The serial entrepreneur who took a wrong turn on the second-hand car boom – Alex Chesterman, founder of Zoopla and LoveFilm, battles to arrest Cazoo’s slide

5) Wall Street giants resist EU’s bid to siphon City jobs – US finance chiefs to voice concerns over Brussels’ drive to move bankers out of London

What happened overnight 

Markets tumbled in Asia on Monday and the dollar rallied as part of a global rout fuelled by a forecast-beating US inflation print that ramped up bets on a more aggressive campaign of Federal Reserve interest rate hikes. 

Asia followed suit, with Hong Kong, Tokyo, Seoul, Taipei and Wellington off more than two percent, while Shanghai, Singapore, Manila and Jakarta fared almost as badly.

Coming up today

  • Corporate:  Molten Ventures, Sirius Real Estate (full-year results)
  • Economics: GDP, industrial production, manufacturing production, trade balance (UK)

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