UK economy rebounds ahead of war in Ukraine Business

gHello.

There is a hint of positivity in the latest data released this morning, with official figures showing the UK economy rebounding 0.8% in January.

It’s a bigger increase than expected, with activity coming back to life as omicron fears subsided. This means the economy is now 0.8% larger than its pre-pandemic peak.

The figures reflect a strong recovery from December, when a rise in omicron cases took its toll, while February is also expected to show further growth.

There will be little joy among investors, however. Russia’s invasion of Ukraine and the wider geopolitical fallout have upended global growth expectations, with an even bigger spike in energy prices and a cost-of-living crisis on the horizon.

5 things to start your day

1) Putin’s threat to take planes hostage leaves Lloyd’s of London facing billions in losses Russian president’s threat to seize 500 foreign-owned planes could cost insurer $10 billion

2) How the French Riviera became a playground for Russia’s elite Despite the focus on “Londongrad”, the Mediterranean coastline has long been popular with Moscow tycoons

3) Russia faces ‘deep recession’ as sanctions cripple economy IMF warns of soaring inflation and falling living standards across the country

4) Lush stores will remain open in Russia as company says staff share values ​​of ‘social justice and peace’ Ethical cosmetics firm cuts supply to stores, but licensed operator expected to keep trading

5) Marks & Spencer accused of ‘fudge’ after appointing co-chief executives Retailer appoints Stuart Machin and Katie Bickerstaffe as new executives

What happened overnight

Stocks fell on Friday in Asia as uncertainty surrounding the war in Ukraine and continued high inflation maintained their grip on markets.

Hong Kong fell 3.2% and Tokyo 2.6%.

Tokyo’s Nikkei 225 index lost 660 points to 25,032.61 and the Hang Seng in Hong Kong fell 667 points to 20,222.79.

The Shanghai Composite Index lost 2.2% to 3,224.92 after Chinese Premier Li Keqiang, the country’s No. 2, said the government hoped to create up to 13 million new jobs this year while trying to reverse a painful economic downturn.

The Kospi in Seoul fell 1.1% to 2,651.22. In Australia, the S&P/ASX 200 fell 0.7pc to 7,079.10. India gained 0.2 pc but the other regional markets fell.

coming today

• Business : Berkeley (commercial statement)
• Economy: GDP, industrial production, manufacturing production (UK); consumer price index (Germany); Michigan Consumer Sentiment Index (WE)