Economy contracts ahead of interest rate decision

Britain’s economy contracted last month, official figures showed, dealing a blow after a series of indications that the UK was doing better than expected.

Gross domestic product (GDP) fell by 0.5% in July, according to the Office for National Statistics (ONS).

5 things to start your day

1) BP boss resigns over past relationships with colleagues | An abrupt exit comes at a time when the oil giant is struggling to balance its investments in fossil fuels and clean energy.

2) Apple abandons leather to “protect the planet” | The US tech giant will use recycled fabric in its watch bands and phone cases as part of a net-zero emissions policy

3) Google pays $10 billion a year to maintain its monopoly, DOJ says | Highest-profile antitrust trial since 1998 begins

4) Oil hits $92 for first time this year as OPEC cuts trigger global supply deficit | Motorists face rising gas prices after Brent crude surpasses $92 a barrel

5) Judges must be tougher on shoplifters, says Primark chief | Retailer joins calls for tougher enforcement as thefts ravage Britain’s high streets

What happened overnight

Stocks fell in Asia on Wednesday after a decline in technology stocks dragged Wall Street lower ahead of the release of a key report on US inflation.

Hong Kong’s Hang Seng lost 0.3% to 17,970.01 and the Shanghai Composite Index fell 0.9% to 3,109.88.

Japan’s Nikkei 225 index lost 0.4% to 32,656.85, while Seoul’s Kospi edged down 0.2% to 2,532.69. The Australian S&P/ASX 200 fell 0.8% to 7,146.40.

Wall Street stocks closed lower Tuesday as investors await key U.S. consumer inflation data that is expected to influence the Federal Reserve’s next interest rate decision.

The Dow Jones Industrial Average closed down 0.1% at 34,645.99.

The Nasdaq fell 1% to end at 13,773.61, while the broad S&P 500 index also lost 0.6% to 4,461.90.

The benchmark 10-year Treasury yield was little changed at 4.28%.

Asian stocks were subdued after Wall Street wobbled overnight. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat while Tokyo’s Nikkei fell 0.2%.

Resource-rich Australian stocks lost 0.7%, Chinese blue chip stocks were flat, but Hong Kong’s Hang Seng index rose 0.6%.