The head of Britain’s statistical authority performed a public U-turn on Tuesday, saying he hoped it was a matter of when — rather than if — the Office for National Statistics corrected errors in the Retail Prices Index.

The 2 per cent club has a new member. The yield on the 3-month US Treasury bill crossed that milestone for the first time in just over a decade as the Federal Reserve remains on course to keep raising interest rates.

Sterling extended its losses on Tuesday amid growing expectations that prime minister Theresa May could lose an important parliamentary vote on the government’s trade bill that would require Britain to stay in a customs union with the EU.

Gold lost its shine on Tuesday — sinking to its weakest level in a year — as the dollar advanced and Federal Reserve chair Jay Powell reiterated the need for further gradual interest rate rises.

Greene King was the FTSE 250’s biggest faller after Berenberg called the pub operator a “value trap” and accused it of using debt refinancing to flatter profit metrics. With Greene King’s sales growth outpaced by cost inflation, there was little sense in the group continuing to pay a dividend far in excess of free cash flow, Berenberg said.

Federal Reserve chair Jay Powell on Tuesday argued against protectionism, saying it could hurt growth and adding that he does not view the European Union as a “foe”, in contrast to President Trump’s remarks over the weekend.

Lloyds Banking Group plans to run three separate subsidiaries in continental Europe after Brexit, as new regulations designed to prevent a repeat of the financial crisis complicate its access to European markets when the UK leaves the EU.

Wall Street had, for the most part, edged into positive territory during morning trade, having overcome a weak start after Jay Powell struck a confident tone about the strength of the US economy and played down the risks of the brewing trade war between Washington and its allies.

Another 40 Poundworld stores are to close, the company’s administrators said on Tuesday, meaning that almost half of the discount chain’s estate is now in the process of shutting down.

A UK High Court judge has issued a freezing order against €11m and $15.6m of assets held by the former owners of a Russian top-10 bank that collapsed last year after a lawsuit by bank clients who claim they were defrauded.

US homebuilder confidence held steady in July, as growing demand for housing offset concerns about rising construction costs.

Treasury yields nudged higher on Tuesday after Federal Reserve chairman Jerome Powell reiterated the central bank’s commitment to raising interest rates

Netflix tussled with Walt Disney for the crown as the world’s most valuable media group after disappointing subscriber growth prompted a share price slide at the Silicon Valley video streaming service.

Wall street analysts are expecting chairman of the Federal Reserve Jerome Powell to reiterate the need for gradual interest rate increases when he speaks to Congress this morning, with policymakers weighing the potential risk stemming from trade disputes against the current strength of the US economy.

The pound abruptly dropped in early afternoon trading on reports that Theresa May could lose an important parliamentary vote on Brexit later on Tuesday.

US industrial production rebounded last month signalling further strength in the economy in the second quarter, driven by the manufacturing and mining sectors.

An Abu Dhabi investor has made a $55m bid for Abraaj’s fund management rights, seeking to outbid Cerberus Capital Management’s proposal for the embattled private equity group.

US stock futures tip Wall Street for a modestly lower open on Tuesday as investors digest a fresh slate of earnings and await Federal Reserve chair Jay Powell’s testimony.

Warren East, chief executive of Rolls-Royce, has voiced “frustration” at the uncertainty over the UK government’s proposals for quitting the European Union, as Prime Minister Theresa May accepted amendments to the hard fought compromise agreed earlier this month.

Jörg Schneider, chief financial officer of reinsurer Munich Re, is to step down after 17 years in the job.

Vitol, the world’s biggest independent oil trader, is preparing for the shift to a lower carbon world by sinking €200m into a new fund that will invest in European wind farms.

Johnson & Johnson, the world’s largest healthcare group, hailed a strong performance in its pharmaceuticals unit as it unveiled second-quarter earnings that were ahead of Wall Street expectations.

Fund managers have turned increasingly bearish, the July survey compiled by Bank of America Merrill Lynch showed, as expectations of improved profits have slumped and investors pull back on their allocation to equities in response to increasing worries about a trade war.

Theresa May’s Brexit wishlist is unravelling and the risk of an ugly exit from the EU is building. Not that you can tell from a look at sterling.