Shortages hit US services firms, German factories and UK builders; Didi shares tumble after crackdown – as it happened

Office for Budget Responsibility says UK debt will rise to pay for decarbonisation, and early action would limit the bill

• Latest: Didi shares tumble after crackdown
• Fiscal watchdog shows early action on net zero transition vital
• UK national debt rises by 21% of GDP by 2050 in ‘early action’ scenario, but by another 23% if action delayed
• Rishi Sunak faces £10bn black hole in health, education and transport
• OBR: national debt more vulnerable to rising inflation
• World is becoming riskier place

5.49pm BST

Time to wrap up. Here’s the main points.

Britain’s fiscal watchdog has warned that the pandemic, the climate crisis and the UK national debt’s exposure to higher interest rates are all “large and potentially catastrophic sources of fiscal risks”.

The @OBR_UK takes things a step further to answer the Q, what might net-zero mean for UK public spending & public sector net debt as a % of GDP
Its central "early action" scenario says debt would be 21% higher with net-zero by 2050, which it compares to the impact of Covid pic.twitter.com/46Q9dokjIv

In an alternative scenario, where the UK reaches net-zero while maintaining public spending and holding car tax revenues steady, public sector debt is actually *lower* than in the @OBR_UK baseline pathway
("early action" vs "investment included & motoring maintained") pic.twitter.com/tM0Pq7vibm

Related: Sunak must spend extra £10bn a year on public services because of Covid – OBR

US ISM Services cools from all-time high to still-strong 60.1 (-3.9pt) in June
Business Activity 60.4% (-5.8pt)
New Orders 62.1% (-1.8pt)
Employment 49.3% (-6pt)
Supplier Deliveries 68.5% (-1.9pt)
"Challenges w/ materials shortages, inflation, logistics & employment" pic.twitter.com/PlhEFEAijM

Related: Supply shortages hit Britain’s booming building industry

Spoos new lows pic.twitter.com/war5Hq7UK2

Related: Sainsbury’s warns of shortages due to Covid and recruitment issues

Related: Vauxhall owner to invest £100m to build electric vehicles at Ellesmere Port

Related: Ocado sales jump 20% after shopping shifts online in Covid crisis

5.28pm BST

The dollar is also rallying today, pushing the pound down almost three-quarters of a cent to $1.3775.

coming up on the half-way point of the US day and the $USD has already put in quite the move
working on a morning star formation with a really strong reversal on shorter tf's
touched 92 overnight and has then been bid most of the day pic.twitter.com/XpudK8HzXb

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