There might be a problem for Max Verstappen's fellow Red Bull driver, however. Daniel Ricciardo hasn't done a timed lap yet. In fact, he has only managed three laps in total so far this morning.

Max Verstappen muscles in between the Mercedes and Ferraris as a 1:16.182 puts him P3 with just over half of the session gone.

It's starting to quieten down on the track as drivers pop back into the pits.

Image source, Getty Images

Lewis Hamilton improves at the top as he dips below 1:16 with a 1:15.794. That moves him three tenths clear of Nico Rosberg. 

Meanwhile,it's the two Ferraris who are currently behind the Mercedes, with Sebastian Vettel (0.648s) and Kimi Raikkonen (+0.670s) in third and fourth respectively.

Image source, AP

This was Romain Grosjean's spin from earlier. He covered quite some distance off the track!

Andrew Benson
Chief F1 writer at Hockenheim

The top three teams may have sorted their driver line-ups for next year, but further down the grid it is all getting very tasty, driver market-wise. 

Sergio Perez has emerged as a key figure in movements. He has an option to stay at Force India, but is being strongly linked with a move to Williams. Renault are also interested in him but the Mexican is considered more likely to go to Grove, where he would likely partner Valtteri Bottas. 

Williams, meanwhile, are likely to promote their development driver Lance Stroll, who is doing well in Formula Three this year and has a very rich father. He could well become reserve driver next year with a view to promotion to a race seat in 2018. Obviously, if Perez moves to Williams, that is potentially bad news for Jenson Button because if McLaren pick Stoffel Vandoorne as a partner for Fernando Alonso next year, that would leave Button nowhere to go. 

Meanwhile, Renault are likely to promote reserve driver Esteban Ocon to a race seat - and the Frenchman, who is actually a Mercedes junior driver, could potentially be parachuted into Manor for the second half of this season to gain experience ahead of 2017 if Rio Haryanto cannot raise the money to hold on to his seat.

Jenson Button had to go to hospital during second practice yesterday after a carbon brake fragment injured his eye. He swiftly went on social media to ease fans' fears about his well being and has been involved today. He's only done an installation lap so far though.

Romain Grosjean loses the back end of his Haas at Turn 3 and does a 180, ending up facing the wrong way on the grass.

"Guys, something is happening with the gearbox," says the Frenchman.

Andrew Benson
Chief F1 writer at Hockenheim

Unsafe release investigation into Mercedes after Grosjean had to stop in the fast lane of the pits to avoid Hamilton.

Lewis Hamilton was guilty of a couple of scrappy laps yesterday, but Nico Rosberg had a trouble-free day. Rosberg, though, has just made a mistake, missing his braking point at the hairpin and locks up and goes straight on.

Lewis Hamilton and Nico Rosberg are out on super-softs now and sure enough, they take their familiar place at the top of pile.

It's Hamilton who goes quickest, clocking a 1:16.015, with Rosberg a tenth of a second slower.

First blood to Hamilton, then.

Image source, Reuters

Andrew Benson
Chief F1 writer at Hockenheim

As a body, the drivers are not happy about the decision to postpone the introduction of the halo head protection system to 2018. 

A handful of drivers have expressed public opposition to the halo, but the fact remains that in a series of meetings over the last nine months, the vast majority have wanted it. Bernie Ecclestone attended a meeting of the GPDA on Friday afternoon to explain why the halo had been delayed - and he repeated the agreed party line that it needed more development. The drivers privately reject this argument, given that very few things have been researched as thoroughly as the halo, and suggestions that ‘experts’ need to look at it from Red Bull team boss Christian Horner were scoffed at, given the number of experts already involved. 

Fascinatingly, at the start of the meeting, Lewis Hamilton got up from where he had been sitting and pointedly moved to sit right next to GPDA chairman Alex Wurz in a public show of support - and asked a series of questions about the delay, making it clear he was not happy.

Times are tumbling, with the rare sight of a Williams one-two at the top of the timesheet at the moment. Valtteri Bottas has done a 1:16.889 on super-softs, with Felipe Massa 0.090s slower. 

Max Verstappen is currently third quickest after a 1:17/106 on softs.

Romain Grosjean has developed quite the short fuse lately, with the on-track antics of his fellow drivers proving particularly annoying for the Haas driver.

He won't, then, have been happy with the sight of Lewis Hamilton pulling out in front of him in the pit lane just now...

Two lap times set so far with 10 minutes of the session gone. 

Pascal Wehrlein has done a 1:18.945 on a set of super-softs, while Jolyon Palmer has clocked a 1:20.248 on a used set of mediums.

Plenty of chat about the halo on BBC Radio 5 live sports extra right now. Tune in, and also let us know whether you felt it should have been brought in next year by voting either 'Yes' or 'No'. 

You can make your choice on the right side of this page, or by clicking on the vote tab, depending on what device you are following the action on!