Respite in energy bills casts doubt on Bank’s punitive interest rate hike
Energy bills will be frozen for UK households under a new plan which could cost £130billion.
Liz Truss has finalized plans for a new system that will prevent the energy price cap from rising sharply from October. The policy could cost up to £130bn over the next 18 months, Bloomberg reports.
The price cap was set to jump 80% to £3,548 a year from October. But the new measure will see the price cap effectively removed.
Instead, the government will set a new price paid by households. This will likely be at or below the current price cap of £1,971.
5 things to start your day
1) JP Morgan plans to move work from Germany to London as outage fears grow The Wall Street bank is preparing a series of emergency measures in order to be able to continue trading in the event of power cuts this winter.
2) TalkTalk weighed down by debt as Sir Charles Dunstone seeks to sell The budget broadband provider has been warned by its auditor that presenting its accounts on a going concern basis is increasingly risky.
3) Instagram fined 405 million euros for sharing children’s email addresses and phone numbers The number of children affected has not been revealed, but is believed to be in the millions given the European nature of the breach.
4) Aston Martin sells shares at 78% discount in bid to shore up business – Luxury car brand plans to raise £576m to pay off some of its debt
5) I should charge £100 for a steak to cover my energy bills, says chef Gaucho The chief executive said the new prime minister must act quickly to help businesses that are seeing their profits wiped out.
What happened overnight
Hong Kong shares edged higher in the first few minutes of trading this morning, with the Hang Seng index up 0.2pc.
The Shanghai Composite Index gained 0.3pc, while the Shenzhen Composite Index on China’s second largest stock exchange gained 0.2pc.
Shares in Tokyo opened lower in subdued trade, with few new emotional developments in the market after a holiday for US exchanges. The benchmark Nikkei 225 fell 0.2pc.
Financial: CNC Group (annual results)Ashtead Group, Capricorn Energy (temporary)Berkeley Group, DS Smith (Commercial statement)
Economy: Building PMI (UK)PMI services (WE)Compound PMI (WE)factory orders (All)