Strong wage growth gives Bank of England interest rate dilemma

There was a brief period when the Bank of England was poised to cut interest rates and cut them quickly. Official figures showing strong wage growth appear to have ruled that out, at least for the time being.That is because policymakers at the central bank are likely to consider persistently high pay rises as inflationary. With prices already on track to edge up this year in response to elevated energy prices, only one or two quarter-point reductions in the cost of borrowing are possible without letting inflation jump even higher.There is always an element of doubt about the labour market figures from the Office for National Statistics (ONS), which have taken a battering from MPs concerned about their accuracy after a drop-off in survey respondents

Europe’s seaborne imports of gas fall by fifth to lowest since 2021, report finds

European imports of seaborne gas shipments fell by a fifth last year to their lowest level since the pandemic, according to a new report, while the UK’s plunged by nearly a half, but governments are continuing to spend billions on new import terminals.The Institute for Energy Economics and Financial Analysis (IEEFA) found that Europe’s imports of liquefied natural gas, known as LNG, fell by 19% last year to lows not seen since 2021 as governments worked to replace fossil fuels with renewable energy.However, a wave of fresh investments in new LNG import infrastructure after Russia’s invasion of Ukraine has moved ahead, which could mean that infrastructure worth billions will sit idle in the years to come, the institute warned.The findings are also likely to spark debate in the UK over the need for investment in new North Sea oil and gas projects and gas storage facilities. The report found that the UK recorded the steepest drop in LNG imports last year – a fall of 47% compared with the year before – after its gas demand fell to a record low

‘We must avoid a chilling effect’: the CMA chief on the UK’s pro-growth shift

Signs by the lifts in the Canary Wharf headquarters of the Competition and Markets Authority (CMA) remind staff not to talk about their work in public, given the billions of pounds resting on its decisions.But a very public debate is taking place about how the competition watchdog works and is run, with the Labour government determined to make an example of it.In October the prime minister rebuked regulators in front of global business leaders for “needlessly holding back the investment we need to take our country forward”.In January they were hauled into 10 to explain how they would support the government’s growth ambitions.Then days later, the government defenestrated the CMA’s chair, Marcus Bokkerink, replacing him with the former head of Amazon in the UK, Doug Gurr

Support for ESG proposals at record low driven by US investors, report shows

Support for shareholder proposals aimed at tackling environmental and social risks hit a record low last year, figures show, amid a “worrying retreat” by investors, particularly in the US.A report compiled by the responsible investment campaign group ShareAction found that, out of 279 environmental, social and governance (ESG) shareholder resolutions put forward at annual general meetings last year in the UK, Europe and the US, only four – or 1.4% – secured majority support.It marks a sharp decline from recent years, having dropped from 21% in 2021 to 14% in 2022, and 3% in 2023. However, it also reflects a severe drop in support for ESG issues in the US, where rightwing activists and politicians have targeted financial firms for supporting climate and diversity policies

European defence stocks rise by €18bn to record high ahead of Ukraine peace talks – as it happened

More than £10bn has been added to the value of Europe’s defence industry today, as investors anticipate a surge in military spending.Weapons makers are leading the risers on many of Europe’s stock exchanges today, as leaders from major European powers prepared to meet in Paris for emergency talks on the Ukraine war.Last week’s shock move by the US to sideline Kyiv and its European backers from peace negotiations has prompted expectations that Europe must spend more on defence.Before today’s summit Ursula von der Leyen said the issue was “about Ukraine – but also about us. We need an urgency mindset

Supreme court judges reject Reeves’ motor finance intervention

Rachel Reeves was dealt a fresh blow on Monday when her attempt to intervene in a high-profile supreme court case and curb a potential £44bn bill for lenders caught up in the car loan commissions scandal was rejected.Judges at the supreme court rejected the chancellor’s application, lodged last month, in which she urged them to avoid handing “windfall” compensation to borrowers harmed by allegedly secret commission payouts to car dealers that arranged the loans.The news weighed on lenders’ share prices, which had soared after the Treasury’s intervention amid hopes that it would reduce their potential compensation bill. Shares in Lloyds and Close Brothers, two of the biggest providers of motor finance in the UK, fell as much as 3.8% and 8