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Britain is leaning on its final coal power plant for increased electricity supply as an Arctic blast hits the country.
Coal contributed its largest share of electricity generation on Monday since November, Energy Dashboard figures show.
Britain’s last active coal plant, Ratcliffe-on-Soar, helped generate 3.4pc of all electricity produced in the UK at the start of the week, well above average levels throughout the year.
It could be on course for its busiest week in at least a year, after contributing 2.3pc to electricity generation over the past week which is one of the highest levels in the past 12 months.
It comes as temperatures in the UK plummet and could go as low as -10 Celsius in the coming days. It is expected to lead to higher demand for electricity.
While pressure on the grid has been lessened by good wind power generation on Monday, the coming days could prove more challenging if this changes.
In this instance, the National Grid ESO, which operates the transmission network, could resort to paying families to turn off their washing machines, fridges and other appliances to manage demand.
The National Grid ESO had five coal plants on standby last winter to add extra capacity at times of peak demand. This winter, only Ratcliffe has remained online after the four other units closed.
The system operator’s main contingency measure is therefore to pay families to switch off devices, which it has already done twice this winter.
Tony Jordan of energy consultancy Auxilione said that the grid faced less pressure than last year.
He said: “I don’t think there’s any real panic. We’ve got any capacity available. Prices are still down at the moment. Crisis is getting further and further behind us. If we do have any tightening it would just be really short term events.”
The Government plans to close Ratcliffe-on-Soar, which is owned by Germany’s Uniper, in September.
While the use of coal in the UK energy system has dropped to historical lows over the last year, it has remained an active part of the mix during the colder winter months.
Kathryn Porter from Watt-Logic said that the recent surge in coal was a “hangover from Russia’s invasion of Ukraine” as gas prices were still twice as high as before the invasion.
Ms Porter said: “Although gas prices have evolved in the last year, they are still double what they were before that and you have not seen the same dynamic in the coal market. It has been economic to run coal ahead of some gas power stations this winter, which is why we’ve seen Ratcliffe running as much as it has.”
However, Ms Porter said there was a “real risk of blackouts towards the end of the decade” if the final coal plant closes as planned in September and nuclear power stations shut down as scheduled without additional capacity coming online.
Read the latest updates below.
06:26 PM GMT
Signing off
Thanks for joining us today. Chris Price will return bright and early in the morning to keep you updated as the markets in London open. In the meantime, I’ll leave you with a few of our latest business stories:
06:24 PM GMT
Fevertree gains on investment bank recommendation
Shares in the premium tonic-maker Fevertree jumped 4.94pc on Monday after an investment bank upgraded the company from a “hold” to a “buy”.
Analysts at Liberum raised the price target for Fevertree shares from 1,200p a share to 1,300p, 30pc higher than Monday’s closing price.
Liberal said that share price increases would be driven by improvements to the company’s margins, but believes that revenue growth will be “subdued”.
Fevertree, which produces mixers in glass bottles sold at more than twice the price of Schweppes, said in September that it had experienced “materially elevated” glass costs. But it predicted a strong 2024 “due to a combination of softening inflationary headwinds and the benefit of the actions we are taking”.
The company said it was “confident of delivering significant margin improvement.”
05:41 PM GMT
Pawnbroker reports record profits
A pawnbroking and foreign exchange group listed on Aim has reported record profits after inflation pushed more people into taking out loans against their jewellery.
Ramsdens Holdings reported on Monday that its financial year to Sept 30 saw revenue jump 27pc to £83.8m and profit jump 22pc to £10.1m.
The company said that its pawnbroking loans had jumped 20pc and it said that it had been helped by the reduction in the number of payday lenders.
Ramsdens has been expanding its presence in the South East and noted the “broader demographics seen in the southern communities in which we operate allows for higher loan values with higher carats of gold jewellery offered as security for a loan”.
Ramsdens said it was also helped by the high market price of gold.
04:59 PM GMT
FRSE 100 closes in the red
The FTSE 100 closed down 0.39pc in trading, while the FTSE 250 closed virtually unchanged, up 0.02pc.
The biggest FTSE 100 riser was the owner of Paddy Power, Flutter Entertainment, up 2.81pc, followed by insurer Admiral, up 1.67pc. The biggest fallers were Burberry, down 5.72pc, and Ocado, down 5.09pc.
Among the FTSE 250, food manufacturer Bakkavor rose 8pc, followed by engineering business John Wood, up 5.48pc. The biggest declines were by Diversified Energy Co, down 9.50pc, followed by Pets at Home, down 3.51pc.
04:54 PM GMT
Bitcoin up in trading today after declines
Bitcoin is up today by around 1.7pc against the dollar, after a difficult few days of trading since the US announced its approval for the first exchange trading funds that invest in Bitcoin.
The move by the Wall Street regulator, the Securities and Exchange Commission (SEC) is expected to generate considerable investor interest and increase the price of the currency considerably, despite criticism of cryptocurrencies as investments.
Analysts at Standard Chartered Bank suggested last week that the cryptocurrency could more than double in value to $100,000 by the end of the year, following SEC approval.
Bitcoin is currently at around $42,500, down from around $46,500 after the announcement. Connor Sephton of Sky News attributes the decline to what is known as a “buy the rumour, sell the news” event
04:33 PM GMT
Law firm bucks trend in renewing its central London floorspace
Multinational law firm Fieldfisher has signed a lease renewal on its City of London HQ and retained its current space of 81,000 square feet.
In September, the investment bank Jefferies said that empty workspace across London’s West End, City and Canary Wharf areas had hit a 30-year high.
But the law firm has signed an agreement with Man Group to extend its stay in the building - Riverbank House on Swan Lane - until 2035.
Robert Shooter, Fieldfisher’s managing partner, said: “We are delighted to have extended our lease and will be staying in Riverbank House, a landmark building in a highly desirable location.”
04:27 PM GMT
UK's biggest nightclub chain falls into administration
The UK’s biggest nightclub firm has said it is planning to appoint administrators for parts of its business and could be forced to shut a number of venues.
Rekom UK, which owns brands including Atik and Pryzm, said it comes after an “extremely difficult” year for the late-night sector amid pressure from the cost-of-living crisis and surges in the costs of energy and goods.
The firm, which runs 35 clubs and 12 late-night bars across the country, said it had filed a notice to appoint administrators for a number of companies within the group earlier on Monday.
Peter Marks, chairman of Rekom UK, said: “This gives us breathing space and protection to be able to work with our lenders, our landlords and other stakeholders to come up with the best solution for the UK group going forwards.
“We still have a core of successful club and bar businesses and our Nordic brands, Heidi’s Bier Bar in Birmingham and Cardiff and Proud Mary in Cardiff and Swansea have outperformed all expectations.
“But we must go through this restructure to be able to come out stronger for the future. For any venues that may not continue as part of Rekom UK, we will do our best to find new owners and save jobs.”
04:13 PM GMT
Ikea is sticking to price cuts despite cost pressure from the Red Sea
Budget furniture retailer Ikea is sticking to planned price cuts despite Red Sea shipping disruptions pushing up costs, and enough stocks to absorb any supply chain shocks, it said on Monday.
Jesper Brodin, chief executive of Ingka Group, the franchisee that owns most Ikea stores worldwide and runs Ikea UK, told the Reuters Global Markets Forum in the Swiss ski resort of Davos: “Our commitment is to make sure that we prioritise investing in lower prices for our customers.”
Ingka Group has invested more than €1bn euros (£860m) in price reductions across its markets from September to November, and aims to continue lowering prices in 2024.
Higher transport costs have spurred fears of new inflationary pressures just as consumers were getting some relief from prices starting to come down.
But Mr Brodin said he still sees “quite significant deflation” upstream in its supply chain.
While lowering product prices may hurt profits, Mr Brodin said Ikea tends to take market share when consumers are under financial pressure.
“This is not a year for us to optimise profits,” he said, adding: “This is a year to try to navigate on a thinner profit, but to make sure that we support people.”
03:57 PM GMT
Housebuilder Crest Nicholson issues second profit warning in five months
Major housebuilder Crest Nicholson has issued its second profit warning in five months as costs spiral on its Surrey development. Melissa Lawford has the details:
Crest Nicholson’s share price dropped by as much as 5pc on Monday after the housebuilder slashed its profit forecasts by nearly a fifth, on top of an earlier downgrade in August.
03:48 PM GMT
Apple cuts price of new iPhone in China amid competition from Huawei
Apple is offering rare discounts on its new iPhones in China amid fears that competition from a resurgent Huawei is hitting demand. James Titcomb reports:
Chinese consumers are being offered discounts of as much as 500 yuan (£55) on iPhones and up to 800 yuan on MacBook laptops, with more price cuts on other devices.
The discounts, which will apply this weekend, are being presented as a promotion ahead of the Chinese new year in February, but come amid questions about demand for iPhones in China that have hit the company’s shares in recent weeks.
On Friday, Microsoft surpassed Apple as the world’s most valuable listed company for the first time in two years following a 6pc fall in the iPhone maker’s shares in the last month.
Analysts at Jefferies said last week that iPhone sales were currently falling by as much as 30pc on the same period last year and predicted they would drop by 10pc over 2024.
The apparent sales drop could potentially send Apple to a fifth consecutive quarter of declining revenue for the first time since 1998.
The drop has been partly attributed to strong demand for Huawei’s Mate 60 phone. The Chinese company appears to have overcome US sanctions designed to crush its smartphone business by developing made-in-China components for the device.
While Apple has previously offered discounts ahead of the Chinese new year, which is a key shopping season, it rarely does so for its latest iPhones. A 500 yuan discount on the iPhone 15, released last year, would save as much as 8pc.
Sales in China account for around a sixth of Apple’s total.
03:37 PM GMT
Octopus Energy takes equity stake in swimming pool data centre business
Octopus Energy has taken an equity stake in a startup business that believes in locating small data centres in the same buildings as swimming pools. The startup, Deep Green, was founded by Mark Bjornsgaard.
The idea is to use the heat generated by its servers to heat the pool. Octopus says that a public swimming pool in Devon was able to slash its pool heating bill by over 60pc by allowing Deep Green to co-locate a data centre. Deep Green meanwhile gets free cooling which, Octopus says, provides it with a competitive edge over other data centres.
The company also wants to provide heat to district heat networks, which supply hot water to buildings.
According to a company statement, Octopus is planning to invest £200m in scaling the idea.
Deep Green’s most recent published accounts, to Sept 30 2022, show that it had cash of £13,134 and a shareholders’ deficit of £142,974. Public records indicate that a company linked to Octopus now owns between 26pc and 50pc of the share capital.
03:33 PM GMT
Thomas Cook 'close to return to European ownership'
The owner of Thomas Cook is reportedly holding talks to sell the iconic British brand to a Polish online travel agent.
The tourism company’s Chinese owner Fosun Tourism Group is in advanced negotiations to sell the business to eSky, according to Sky News.
The talks, which are understood to have been under way for some time, could lead to a deal within weeks. Its potential new owner is majority-owned by MCI Capital, a private equity company focused on Central and Eastern Europe.
Thomas Cook collapsed in 2019 leaving thousands of people stranded around the world before they were repatriated by the Government. The brand was revived by Fosun shortly afterwards.
On that bombshell, I will take my leave for the day and pass you over to the ever cheerful Alex Singleton, who most certainly is not fazed by a day of work on Blue Monday.
03:22 PM GMT
Aslef refusing to put 'fair and reasonable' pay offer to members
After the Aslef union announced fresh strikes by train drivers at the end of this month, a Department for Transport spokesman said:
It’s very disappointing to see Aslef continuing to target those who travel to work, school or important medical appointments by train.
02:57 PM GMT
There's no more money, protesting German farmers told as economy shrinks
German farmers were told there is no more money to protect them from tax rises after the German economy shrank last year.
Berlin has been brought to a near standstill by the demonstration, which filled one of its central avenues with trucks and tractors.
Some 10,000 farmers arrived in the capital to end a week of protests against taxes that have become a flashpoint for anti-government anger.
Chancellor Olaf Scholz’s coalition is struggling to fix budget disarray and contain right-wing groups as latest figures today showed the German economy shrank by 0.3pc last year and is expected to remain in a downturn this year.
Finance Minister Christian Lindner took to the stage on Monday in front of thousands of jeering farmers in front of the Brandenburg Gate.
He said: “I can’t promise you more state aid from the federal budget.
“But we can fight together for you to enjoy more freedom and respect for your work.”
02:42 PM GMT
Boeing sets out plan to ensure no repeat of mid-air blowout
Boeing will add further quality inspections for the 737 MAX after a mid-air blowout of a cabin panel in an Alaska Airlines MAX 9 earlier this month, the head of its commercial airplanes division said.
In a letter to staff, Stan Deal, president of Boeing Commercial Airplanes, said the plane maker will also deploy a team to supplier Spirit AeroSystems - which makes and installs the plug door involved in the incident.
The group will check and approve Spirit’s work on the plugs before fuselages are sent to Boeing’s production facilities in Washington state.
The new actions from Boeing come after the Federal Aviation Administration on Friday extended the grounding of 171 MAX 9 planes indefinitely for new safety checks.
Only after 40 planes are inspected will the agency review the results and determine if safety is adequate to allow the MAX 9s to resume flying, the FAA said.
02:25 PM GMT
Morrisons’ owner hires Tesco turnaround king
Tesco’s former chief executive Sir Dave Lewis has joined the private equity owner of Morrisons, as the supermarket giant battles to regain market share.
Our reporter Adam Mawardi has the details:
Clayton, Dubilier & Rice (CD&R) has hired Sir Dave to strengthen its consumer and retail offering, just three years after it bought Morrisons for £10bn.
This graph shows the change in supermarkets’ share of the market.
01:46 PM GMT
Oil falls amid doubts over global demand
Oil prices have fallen amid doubts about demand this year as China held interest rates steady in the world’s second largest economy.
Brent crude oil was last down 1.3pc towards $77 a barrel, down from a two-week high of $80.75 on Friday.
Prices had drawn support from disruptions to shipping in the Red Sea, but doubts about demand this year have limited the rally.
China, the world’s second largest consumer of oil, has released data in recent weeks showing its economy weakening.
Meanwhile, at least six further oil tankers have either diverted their course away from or paused before entering the southern Red Sea since the weekend, ship tracking data from LSEG and Kpler show.
01:16 PM GMT
Journalists should welcome AI, says Microsoft boss ahead of lawsuit
Journalists should “welcome” the rise of artificial intelligence (AI), the boss of Microsoft has said, even as the tech giant grapples with a major lawsuit from the New York Times for its deal with OpenAI.
Satya Nadella, the Microsoft chief executive, insisted newspapers and publishers would benefit from the changes wrought by AI, despite concerns from the industry over copyright. OpenAI, which is heavily backed by Microsoft, denies any wrongdoing.
Mr Nadella said: “If you are a publisher or a journalist or what have you, you should welcome this.”
He said AI could provide an alternative to internet search, which has been dominated by Google, and search engines. He added:
What happens to the information ecosystem when there is high concentration is things deteriorate.
The overture to publishers comes after Microsoft was named in a lawsuit by the New York Times against OpenAI, the developer of ChatGPT.
The US newspaper has accused OpenAI of scraping its news stories in breach of copyright laws.
01:06 PM GMT
Gas prices slump to five-month low
Wholesale gas prices have slumped to their lowest level since August as the UK and European markets shrug off the impact of colder weather and conflict in the Middle East.
Dutch front-month futures dropped as much as 6.9pc to fall below €30 per megawatt hour for the first time in five months.
The equivalent UK gas contract has fallen 8.8pc to below 73p per therm, also its lowest level since August.
Prices remain nearly twice as high as they were before Russia’s invasion of Ukraine in 2022 but are a far cry from the peaks reached during the energy crisis that ensued.
12:55 PM GMT
Train driver pay 'far above' that of average worker, says No 10
After the announcement of fresh rail strikes, the Prime Minister’s official spokesman said:
This is extremely disappointing. Not least to commuters, who have already been so badly hit by Aslef’s decision to continually strike.
12:40 PM GMT
Strikes 'difficult to justify,' say rail bosses
A spokesperson for the Rail Delivery Group, the trade association for the rail operators affected by the new strike action, said:
Nobody wins when strikes impact lives and livelihoods, and they’re particularly difficult to justify at a time when taxpayers are continuing to contribute an extra £54m a week to keep services running post Covid.
12:24 PM GMT
'Aslef are shooting themselves in the foot'
Rail users are reacting with frustration, as you’d expect, at the latest announcement of strike action starting at the end of this month:
12:01 PM GMT
Minister could enforce minimum service levels to limit rail strikes
The new rail strikes announced by Aslef could be the first test of new regulations aimed at ensuring a minimum level of service during strikes, set at 40pc in the transport sector.
A Bill for minimum standards for passenger rail services, ambulance services and fire and rescue services was passed in July, to ensure essential services remain in place.
It means employers will be able to dismiss staff who refuse to turn up to work when ordered to, while unions failing to meet minimum levels could face legal action.
Aslef general secretary Mick Whelan said:
Having seen, since this dispute started in June 2022, the resolve of our members, and the support train drivers enjoy among our passengers and the public, the Tories have now tried their old trick of changing the rules.
11:52 AM GMT
Aslef strikes to affect commuters across 16 rail operators
Here are the details of the train strikes that have just been announced by Aslef.
Tuesday, January 30 will see walkouts on services run by Southeastern, Southern/Gatwick Express, GTR Thameslink, South Western Railway main line and depot drivers, and SWR Island Line.
Wednesday, January 31 will see strikes on Northern Trains and TransPennine Trains.
C2C, Greater Anglia, and LNER will be hit by walkouts on Friday, February 2.
Industrial action will take place at Avanti West Coast, East Midlands Railway, and West Midlands Trains on Saturday, February 3.
Walkouts will take place on Monday, February 5 at Chiltern, CrossCountry, and GWR.
11:41 AM GMT
Train drivers announce fresh strikes in dispute over pay
Train drivers will stage a series of fresh strikes and an overtime ban from the end of the month in a long-running pay dispute, their union Aslef announced.
Union members will stage the industrial action over five days between Tuesday, January 30 and Monday, February 5 - and will ban overtime for nine days from January 29.
In all, 16 train operators will be affected, although each will only be affected by a single day of strike action.
Aslef general secretary Mick Whelan said: “We have given the government every opportunity to come to the table but it is now a year since we had any contact from the Department for Transport. It’s clear they do not want to resolve this dispute.
“Many members have now not had a single penny increase in pay for half a decade, during which time inflation has soared and, with it, the cost of living.
“We didn’t ask for an increase during the pandemic, when we worked through lockdown, as key workers, risking our lives, to move goods around the country and enable NHS and other workers to get to work.”
The strikes, which will cripple train services, mainly across England, could be the first test of new regulations aimed at ensuring a minimum level of service during strikes, set at 40pc in the transport sector.
11:32 AM GMT
Cost-of-living crisis pushes up pawnbroker profits
Growing demand for pawnbroking services and higher gold prices have driven up profits for Ramsdens, the lender and retailer revealed.
The group, which has about 160 stores in the UK, said higher living costs has led to more consumers looking for short-term credit.
It said the number of new customers using its pawnbroking service, which allows people to borrow money against a piece of jewellery or a watch, grew by 11pc compared with the previous year.
Higher living costs driving demand for consumer credit, as well as as fewer traditional short-term lenders such as payday lenders on the market, helped give Ramsdens’ pawnbroking service a boost, it said.
The average loan value was £325 as at the end of September, up from £303 at the same time the previous year.
Jewellery sales surged by nearly a quarter year-on-year as the retailer reported more consumer demand for both new and secondhand items.
Meanwhile, sales of precious metals soared by nearly 50pc amid an increase in the price of gold. However, its shares were down 5.6pc.
11:19 AM GMT
World to have first trillionaire within a decade, Oxfam predicts
The world could have its first trillionaire within a decade, Oxfam International said in its annual assessment of global inequalities released as political and business elites head to the Swiss ski resort of Davos.
Oxfam has for years been trying to highlight the growing disparities between the super-rich and the bulk of the global population during the World Economic Forum’s annual meeting.
It reckons the gap has been “supercharged” since the pandemic as the fortunes of the five richest men — Tesla boss Elon Musk, Bernard Arnault and his family of luxury company LVMH, Amazon founder Jeff Bezos, Oracle founder Larry Ellison and investment guru Warren Buffett — have spiked by 114pc in real terms since 2020.
Oxfam’s interim executive director said the report showed that the world is entering a “decade of division”.
Amitabh Behar said in Davos: “We have the top five billionaires, they have doubled their wealth. On the other hand, almost 5 billion people have become poorer.”
10:59 AM GMT
Gas prices fall despite Red Sea shipping crisis
Wholesale gas prices have slipped as supply levels remain robust despite the cold snap and conflict in the Middle East.
Dutch front-month futures, Europe’s benchmark contract, fell as much as 5.6pc towards €30 per megawatt hour, while the UK equivalent dropped by as much as 6.2pc to less than 75p per therm.
Traders have taken comfort from the record amounts of gas amassed by Europe over the last year, while industrial demand for the fuel remains sluggish.
The fall in prices today comes even as Qatar appeared to have suspended liquified natural gas shipments through the Red Sea in response to the attacks on ships by Houthi rebels in Yemen.
Adnan Dhanani, an analyst at RBC Europe, said: “Gas demand across the European Union remained well below pre-conflict levels in 2023, and for much of the year was also below 2022 levels - which were already depressed.”
Defence Secretary Grant Shapps said in a Lancaster House speech that Britain’s “decisive” action in the Red Sea offers “a direct blueprint for how the UK must continue to lead in the future”.
He said “enough was enough” and precision strikes were authorised in response to Houthi attacks because they “chose to ignore” clear warnings.
10:42 AM GMT
Pound falls ahead of inflation figures
The pound has fallen as investors wait to see if inflation and retail sales figures due later this week will offer clarity on potential interest rate cuts.
Sterling has dropped 0.2pc against the dollar towards $1.27, even as the Bank of England seems to be a relatively hawkish outlier compared to the Federal Reserve and the European Central Bank.
The euro was 0.1pc stronger against the pound at nearly 86p, despite figures laying bare the economic downturn in Germany and slowing industrial production across the eurozone.
10:29 AM GMT
Germany 'faces first two-year recession since early 2000s'
ING bank economist Carsten Brzeski was pessimistic about the German economy after official data showed it contracted by 0.3pc last year.
He pointed to fresh uncertainty stemming from the German government’s recent budget upset and shipping delays in the Suez Canal as a result of conflict in the Middle East.
Mr Brzeski said: “Looking ahead, at least in the first months of 2024, many of the recent drags on growth will still be around and will, in some cases, have an even stronger impact than in 2023.”
He predicted that gross domestic product would shrink again this year, in what would “be the first time since the early 2000s that Germany has gone through a two-year recession, even though it could prove to be a shallow one”.
10:17 AM GMT
Daily Mirror editor quits amid Reach job cuts
Daily Mirror editor Alison Phillips has quit amid sweeping job cuts at the newspaper’s parent company Reach.
Our media reporter James Warrington has the details:
Ms Phillips, who has led the tabloid since 2018, has accepted voluntary redundancy and will leave at the end of the month.
Ms Phillips departure leaves the Mirror without an editor as it gears up for a general election.
10:10 AM GMT
Eurozone industrial production declines
Industrial production fell across the eurozone by 0.3pc in November, compared to the previous month, in a signal that the European Central Bank may begin cutting interest rates soon to revive the region’s economy.
Industrial production decreased by 6.8pc across the single currency bloc over the year to November, with Ireland, Belgium and Bulgaria suffering the largest declines.
09:53 AM GMT
German recession conditions to continue this year, say economists
Germany’s economic troubles are “not over yet,” economists have warned, after official figures showed it contracted last year.
Europe’s largest economy shrank by 0.3pc in 2023 and by 0.3pc in the final three months of the year, according to its statistics office.
The country avoided a technical recession after officials revised the figure for the third quarter from a 0.1pc contraction to a stagnation.
Andrew Kenningham, chief Europe economist at Capital Economics, said:
The recessionary conditions which have been dragging on since the end of 2022 look set to continue this year.
09:34 AM GMT
AI will impact 40pc of jobs and 'worsen inequality', warns IMF chief
Artificial intelligence is set to impact 40pc of jobs around the world, the International Monetary Fund (IMF) has warned.
The IMF said the impact will be greater for advanced economies, with around 60pc of roles affected.
About half of those workers will benefit from the integration of AI, which could boost productivity, but the remainder could see lower salaries, reduced hiring and, “in the most extreme cases, some of these jobs may disappear”, according to the IMF.
In a new report on AI and machine learning, the IMF said the technology could worsen inequality between nations as well as within society as a whole.
Kristalina Georgieva, the IMF’s managing director, said:
We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world.
09:24 AM GMT
Rail line remains closed after landslip
A major rail route serving London remains closed due to a landslip.
Network Rail said it is “working round the clock” to carry out repairs on the Chiltern main line following a landslip near Bicester, Oxfordshire, which has closed the line between London Marylebone and both Birmingham Moor Street and Oxford.
Chiltern Railways issued a “do not travel” alert as the line is not expected to reopen until 7am on Tuesday, causing major disruption to journeys.
The line was also closed on Sunday due to the repair work.
More than 50 steel piles are being installed at the site of the landslip, which was discovered on January 11.
09:13 AM GMT
German economy shrinks for first time since pandemic
The German economy shrank for the first time since the pandemic last year as its dominant manufacturing sector battled with rising energy costs and interest rates.
Gross domestic product (GDP) contracted by 0.3pc in 2023, according to the Destatis statistics office, compared to growth of 1.8pc the previous year.
The agency’s president Ruth Brand said: “Overall economic development faltered in Germany in 2023 in an environment that continues to be marked by multiple crises.”
08:48 AM GMT
UK stock markets mixed after slump in banks
UK shares were mixed to start the week as banking stocks were hit amid rising bets that the US Federal Reserve will start cutting rates as early as March.
After opening higher, blue-chip FTSE 100 has moved down 0.1pc, although the mid-cap FTSE 250 index climbed 0.2pc.
Banking stocks slumped 1pc after Lloyds had its rating cut by Bank of America, while HSBC was cut to “underperform” by analysts at BNPP Exane.
Oil and gas shares added as much as 0.7pc amid higher crude prices as traders watched for supply disruption risks in the Middle East.
Investors will look forward to UK inflation data and retail sales figures for the month of December due later this week.
Across the Atlantic, business activity data for the month of January and December retail sales from the US will also be on investors’ radar.
In corporate news, shares of PageGroup fell 3.2pc after the global recruiter cut its annual profit forecast.
British homebuilder Crest Nicholson cut its annual profit forecast, taking its shares lower by 4.5pc.
08:39 AM GMT
Demand for petrol cars has peaked, says BMW chief
Petrol car demand reached its peak last year, a BMW executive has said, as the German car manufacturer gears up for growth to be led by electric models.
The car maker, which makes Mini in the UK, aims to sell half a million battery-powered vehicles this year, which would make up about a fifth of total deliveries, its chief financial officer Walter Mertl said.
BMW group electric vehicle (EV) sales jumped 75pc last year, driven by models like the i4 Sedan and as overall sales growth has slowed in the US and some European countries.
Mr Mertl said: “The tipping point for combustion engines was last year.
“Future volume growth will primarily come from battery electric vehicles.”
It comes as the market share of electric cars went into reverse in the UK in 2023 after Rishi Sunak pushed back a ban on the sale of new petrol and diesel vehicles to 2035.
EVs share of the overall new car market shrunk from 16.6pc to 16.5pc in 2023, according to the Society of Motor Manufacturers and Traders (SMMT). This compares with the 17.2pc originally forecast.
08:28 AM GMT
Hyundai offers £5,900 bonus to EV buyers in face of Biden's green subsidies
Hyundai will give US electric vehicle buyers as much as $7,500 (£5,888) in cash bonuses as it tries to keep its cars competitive in the face of Joe Biden’s green subsidies.
The South Korean car maker will apply the discounts to the Ioniq 5, Ioniq 6 and Kona Electric models in a month-long incentive until January 31.
Hyundai is racing to build an EV plant in Georgia that could begin construction as soon as the end of this year.
It comes as the company is ineligible for the clean vehicle tax credit programme available to car makers under the President’s Inflation Reduction Act.
The Biden administration is looking to revive American industry while tilting the economy away from fossil fuels.
08:07 AM GMT
UK markets open higher amid rate cut hopes
Stock markets in London have begun the week higher as traders increase bets that the U Federal Reserve will lower interest rates this year.
The FTSE 100 has gained 0.1pc after the open to 7,633.68 while the domestically-focused FTSE 250 has gained 0.2pc to 19,226.79.
US wholesale prices figures on Friday have boosted hopes for interest rate cuts after they came in lower than markets expected, bringing down the yield on two-year US bonds to its lowest level since May last year.
07:59 AM GMT
Asian shares climb after China rate hold and Taiwan elections
Asian shares were mostly higher as China’s central bank kept its one-year policy loan interest rate unchanged and amid relief after Taiwan’s elections.
China’s central bank opted to keep its one-year policy loan interest rate at 2.5pc overnight, while injecting funds into the financial system.
The decision to hold rates surprised market observers who had anticipated trend of lowering borrowing costs to stimulate the economy after weak data last week.
The Hang Seng in Hong Kong slipped 0.1pc to 16,185.00, while the Shanghai Composite index was up 0.2pc, at 2,886.29.
Tokyo shares ended higher for a sixth straight session on Monday, with the Nikkei again hitting a nearly 34-year high, as a sense of relief spread after Taiwan’s elections.
Ruling-party candidate Lai Ching-te emerged victorious on Saturday, a result that will determine the trajectory of the self-ruled democracy’s contentious relations with China over the next four years.
The Democratic Progressive Party, to which Lai belongs, has consistently rejected China’s assertions of sovereignty over Taiwan.
Taiwan’s Taiex gained 0.2pc to 17,546.82.
07:52 AM GMT
Shapps: Britain will 'wait and see' before launching more strikes on Houthis
Britain will “wait and see” before deciding to launch fresh military strikes against the Iran-aligned Houthis in Yemen in order to protect international shipping, Grant Shapps has said.
Asked it the UK would carry out more strikes, the Defence Secretary told Sky News:
Let’s wait and see what happens, because it’s not that we want to be involved in action in the Red Sea.
07:48 AM GMT
Housing delays trigger fresh profit warning at Crest Nicholson
Crest Nicholson has downgraded its profit expectations for the second time after warning it is facing mounting costs over a long-delayed housing project in Surrey.
The housebuilder said it was now predicting an adjusted pre-tax profit of £41m for the financial year to October.
In August, the group lowered its profit expectations to £50m from nearly £74m due to a summer slowdown in the housing market thanks to higher interest rates and fewer homes for sale.
Crest Nicholson told investors it was expecting to incur further costs over the delayed completion of a regeneration scheme in Farnham, on top of the roughly £11m flagged last year.
07:40 AM GMT
Mortgage affordability 'bringing buyers out in their droves,' says Purplebricks
As house asking prices moved higher in January, Purplebricks chief executive Sam Mitchell said:
The housing market is becoming more bullish by the week as banks continue to compete over mortgage rates.
07:35 AM GMT
PageGroup axes hundreds of jobs amid recruitment market downturn
PageGroup has announced it axes more than 200 recruitment consultant jobs over the last three months as it battles a downturn in the labour market.
The latest reduction in the recruiter’s headcount means bosses have slashed 1,092 fee earning jobs over the last year, bringing its total number of consultants to 5,851.
In a trading update to shareholders, it reported a 8.9pc decline in gross profit for the fourth quarter of last year, down to £237.3m. The downturn was worst in the UK, with a 19.9pc reduction in gross profit to £28.6m.
It cautioned that full-year earnings are now expected to be slightly below the £120m to £125m it stated previously.
Chief executive Nicholas Kirk said:
Looking ahead, macro-economic uncertainty persists. However, we have a highly diversified and adaptable business model, a strong balance sheet, and our cost base is under continuous review and can be adjusted rapidly to match market conditions.
The job losses come as rival recruiter Hays revealed it has cut 1,150 roles over the last year, while Robert Walters said it had cut about 220 roles in the last three months of last year.
07:25 AM GMT
House sellers bump up asking prices by £4,500 in a month
The average price tag on a home jumped by around £4,500 in January compared to the previous month, according to a property website, as sellers hoped lower mortgage rates would support the market.
Across Britain, the average price of a property coming on the market increased by 1.3pc, or £4,571 month-on-month, to £359,748, Rightmove said.
It comes as lenders battle to offer buyers lower mortgage rates amid expectations that interest rates will be cut this year.
Despite the increase in average asking prices over the last month, they are still 0.7pc lower than a year earlier.
Rightmove said the volume of new properties coming onto the market for sale is 15pc higher than a year ago.
Competitive pricing from sellers is still vital, with the number of new properties coming to market outpacing an increase that is also being seen in buyer demand, the website said.
The number of potential buyers contacting estate agents about homes for sale in the first week of 2024 was 5pc higher than in the same period last year, with the growth in activity strongest in London and the North East of England, Rightmove said.
It added that the number of sales being agreed as January gets under way has been higher than the start of last year.
Tim Bannister Rightmove’s director of property science said:
After a stop-start market in 2023, the initial signs suggest a smoother year for movers in 2024.
07:19 AM GMT
Good morning
Thanks for joining me. The typical asking prices for a new property coming onto the market was £4,500 higher in January than it was in the last month of 2023.
The average price tag on a home coming onto the market increased by 1.3pc to £359,748, according to Rightmove.
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What happened overnight
Asian shares got off to a stumbling start as China’s central bank wrong footed markets by deciding to hold its key interest rate steady rather than cutting as had been hoped.
China reports economic growth data for the fourth quarter and a slew of monthly figures on Wednesday, and investors have become used to being underwhelmed by activity as Beijing drip feeds its stimulus.
Chinese blue chips were little changed in response, having earlier reached their lowest since early 2019.
A holiday in the United States also made for thin trading, but at least there was progress on averting an imminent government shutdown as congressional leaders agreed on another stopgap spending bill.
Japan’s Nikkei bucked the low mood and climbed to a fresh 34-year peak, having already enjoyed stellar gains of 6.6pc last week.
The benchmark Nikkei 225 index climbed 0.9pc, or 324.68 points, to end at 35,901.79, while the broader Topix index gained 1.2pc, or 30.37 points, to 2,524.60.