Interest rates are expected to rise to 3.75% by the end of the year

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China is spending record sums on Russian energy as it continues to increase its dependence on the Kremlin in the wake of the war in Ukraine.

Beijing paid a record $8.3bn (£7.3bn) last month for a transport including a record amount of coal. In the six months since the start of the war, China has spent $44 billion.

The figures highlight the changing relationship between Russia and the rest of the world, with Putin seeking alternative partners as the West eschews its exports.

While energy prices have jumped since the invasion, China continues to buy larger volumes, sometimes at reduced prices.

5 things to start your day

1) FCA to hire ‘growth and competitiveness’ experts as it prepares for ‘Big Bang 2.0’ The Treasury seeks candidates with expertise in using regulation to drive growth in the Square Mile

2) German and Italian industry will struggle to recover from loss of Russian gas, Barclays warns Economists predict the euro zone will shrink, triggering a recession for the entire currency area

3) How a bitter £11.3billion radio line turned into a 999 emergency Motorola accused of undermining efforts to replace aging Airwave network of blue light services

4) CNN’s new chief tries to shake off the channel’s post-Trump hangover Chris Licht oversees sweeping changes as he fights to ‘sort the treasure out of the trash’

5) The pint of milk now more expensive than gasoline in these supermarkets Dairy price hikes even outpace fuel costs on the forecourt

What happened overnight

Asian markets enjoyed a much-needed rebound on Tuesday, following Wall Street’s late rally. Hong Kong led the way, rising more than 1%, with Sydney not far behind. Tokyo came back from a long weekend to post healthy gains, while Seoul, Singapore, Taipei, Manila, Wellington and Jakarta were also higher.

coming today

• Economy: Decision on interest rates (China), housing starts (US), building permits (US)
• Company : City of London Investment Trust, Frasers (annual results); Haleon, Kingfisher (acting); Moonpig, TUI (Commercial Update)