FTSE 100 LIVE: Britain in first recession since devastating 2008 crash – FTSE opens flat

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The Office for National Statistics (ONS) is expected to confirm the huge second quarter contraction after a 2.2 percent fall in the first three months of 2020. It comes after ONS data showed around 730,000 UK workers have been removed from the payrolls of British companies since March when the coronavirus lockdown began in a sign of the toll taken on the economy by the pandemic. Employment also dropped by the largest amount in a quarter since 2009 between May and June.

Economic uncertainty caused by the pandemic means Chancellor Rishi Sunak may delay his autumn Budget, according to the Financial Times.

The paper said fears of a second wave of Covid-19 had led Mr Sunak to consider delaying major public spending decisions until after the crisis, most likely until the spring.

Despite the record-breaking GDP slump expected for the second quarter, experts will be keenly watching the monthly figure for June amid predictions it will show a sharp eight percent bounce-back as lockdown restrictions eased further.

This follows a far-lower-than-expected 1.8 percent rebound month-on-month in May.

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5.50am update: Asian stocks fall on US stimulus uncertainty

The index of ex-Japan Asia-Pacific shares shedding 0.76 percent, while Japan’s Nikkei gained 0.2 percent.

On Wall Street, the S&P 500 snapped a seven-day winning streak after coming within reach of its all-time peak hit in February just before the global outbreak of the COVID-19.

The declines came as political gridlock between the Republican White House and congressional Democrats over coronavirus relief continued for a fourth day, with each party blaming the other for intransigence.

The US economy could be left with measures US President Donald Trump called for on Saturday through executive orders to bypass Congress.

Junpei Tanaka, strategist at Pictet: “We have enormous uncertainty. It appears it’s getting harder for both sides to compromise as the election is nearing… Trump’s proposals would be smaller than markets have expected. There’s question over whether they are viable, too.”

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