There is more dire economic data this morning as retail sales fell at the fastest pace in eight months in August. The amount of products sold in-store and online fell by 1.6% from July, according to the ONS. That drop was three times larger than forecast. Sales fell across all categories – the first time this has happened since July 2021, when the reopening of hospitality venues following Covid restrictions drove punters into restaurants and bars. The figures are the latest indication of how rising inflation and severe pressures on living standards are hitting consumers. It also highlights the challenge retailers face during the key Christmas period.

5 things to start your day

  1. Why Waitrose’s claim of keeping prices low doesn’t add up Prices for everyday items have risen by more than 30% in some cases
  2. British Airways cancels one in seven flights during Queen Elizabeth II funeral 100 flights axed to keep skies clear as Heathrow cuts arrivals and departures on Monday
  3. We don’t know how much it will cost to freeze energy bills Liz Truss admits the Treasury’s budget statement, due next week, is set to reverse tax rises, but the cost of bill easing policies will only cover first months
  4. Louis Vuitton’s owner tells staff to take the stairs and lowers store thermostats Even a French luxury retailer is cutting cash in the face of rising energy costs
  5. Patagonia’s Billionaire Founder Gives Outdoor Brand The Company Will Split Into Two Organizations And Pay Dividends To ‘Protect The Planet’

What happened in the night

Asian markets were weaker this morning as investors braced for a US interest rate hike next week amid growing concerns about a global recession following warnings from the World Bank and International Monetary Fund. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3 percent on Friday after U.S. stocks ended the previous session with modest losses. The index is down 4.1% so far this month. Australian shares fell 0.9 percent on Friday, while Japan’s Nikkei index fell 1.2 percent. Hong Kong’s Hang Seng fell 1.1 percent while China’s CSI300 was 0.9 percent lower.

It’s coming today

Economics: Inflation (EU), Retail Sales (UK, US, China), Industrial Production (China), Michigan Consumer Sentiment Index (US) Corporate: No major updates planned