Government borrowing costs hit multi-year highs as markets fear inflation, and oil and gas prices rise – as it happened

British house prices expected to fall this year, despite ‘Burnham bounce’, Rightmove reports

• Asking prices for newly listed homes in UK’s richest borough fall by £100k in one month

• JP Morgan boss Jamie Dimon warns UK chancellor not to hike taxes on banks

Back in the markets, the pound has hit a three-month high against the weakening US dollar.

Sterling is up a third of a cent at $1.356, its highest level since 12 May.

The longer-term outlook for the US dollar and US bonds looks bearish: investors dislike the boiling Middle East war, which is costing the US way more than it was supposed to (it was supposed to be a few-week operation), while the exploding US debt and the lack of budget discipline from the Trump government weigh on appetite for US debt, as the national debt is about to surpass the $40 trillion mark.

“This is an important next step in bringing competition and growth to the market for international rail services, and we welcome the progress Virgin Trains and London St Pancras High Speed have made.

While there is still more work to do, we are supporting Virgin and the wider industry to grow international services.”