The UK is revoking the Moscow Stock Exchange’s status as a recognised stock exchange in the latest sign of Russia’s isolation from the global financial system.
The move, announced by HM Revenue & Customs, means new investors will not be able to access certain UK tax benefits in future when trading securities in Moscow, although existing investments will be protected.
It is the latest effort to discourage investments in Russia, whose economy is on its knees in the wake of sweeping western sanctions.
The move comes after Moscow banned foreign investors from pulling their investments in Russian stocks amid a string of emergency measures designed to stave off a market collapse.
The Government said the ban meant the Moscow exchange was “no longer operating in line with the normal commercial standards expected of a recognised exchange”.
05:04 PM
Wrapping up
That’s all from us, thank you for following! Before you go, check out the latest stories from the business desk:
05:02 PM
Half a billion people at risk of going hungry amid shortage of rice
Half a billion people are at risk of going hungry as the world’s rice harvest is decimated as a result of soaring fertiliser costs. Louis Ashworth reports:
The total rice yield this year could drop 10pc, or 36m tonnes, the International Rice Research Institute has predicted — enough to feed around 500m people.
Humnath Bhandari, a senior agricultural economist at IRRI, warned it was a “very conservative estimate”, with the potential for more severe disruption if the conflict in Ukraine continues.
Russia is one of the world’s biggest suppliers of fertiliser, a core part of global agricultural production. Prices have increased two- or three-fold for many farmers in recent weeks. Alongside energy, it makes up a major part of producers’ upfront costs, and is causing inflationary pressures across the industry.
Global food prices have hit a record high in recent weeks as supply from Russia and Ukraine is disrupted by conflict and Western sanctions. Wheat and corn prices have soared while livestock prices have risen as fuel, feed and fertiliser costs jump.
04:41 PM
Johnson & Johnson suspends financial forecasts for Covid jab
Johnson & Johnson said it could no longer provide a forecast for sales of its Covid jab, as vaccine hesitancy in low-income countries paired with already low demand in higher income nations has led to a glut of supply.
The company had earlier predicted as much as $3.5bn (£2.7bn) in 2022 sales from the single-dose vaccine, once touted as an important tool for vaccinating hard-to-reach areas.
J&J also cut both ends of its full-year profit forecast by 25 cents and now expects to earn $10.15 to $10.35 per share. But it blamed the move on currency fluctuations rather than fundamental business issues and raised its dividend 6.6pc, and shares rose about 4pc.
“With the guidance cut driven exclusively by currency, I think shares are reacting to the forward looking comments,” said Edward Jones analyst Ashtyn Evans. “J&J discussed accelerating growth in medical technology through acquisitions and also the belief that supply chain issues will improve in the second half of the year.”
04:21 PM
Markets close in the red
UK shares have closed lower, weighed by concerns about a slowdown in global economic growth.
The blue-chip FTSE 100 edged down 0.2pc, while the domestically focused midcap FTSE 250 index declined 0.8pc.
The World Bank on Monday lowered its global growth forecast for 2022 to 3.2pc from 4.1pc, due to the wider impact of Russia’s invasion of Ukraine. The International Monetary Fund is expected to cut its outlook later in the day.
“The market is not only reacting to the downgrades that we’ve seen in terms of growth expectations yesterday, but also thinking that this is probably the first of many downgrades that we’re going see to growth and earnings as we go through the remainder of the year,” said Michael Brown, head of market intelligence at Caxton.
04:01 PM
Cake Box posts record sales amid pandemic rebound
Cake Box has posted record sales for the past year as the cream cake retailer rebounded from the impact of the pandemic.
Sales jumped by around 50pc for the year to March, buoyed by strong momentum over the last six months.
Online delivery and click and collect options helped support growth, with franchisees reporting a 41pc jump in online trade over the 12 months to March.
03:36 PM
Former Ferrari executive tipped to become chief of McLaren
A former Ferrari executive is in pole position to become the new head of McLaren Automotive, one of the biggest jobs in the British car industry. Simon Foy has the story:
Michael Leiters, who left the Italian luxury carmaker last December, is among the leading candidates to replace Mike Flewitt as chief executive of McLaren’s automotive division, which makes road-going sports cars.
Mr Leiters, who is a German citizen, spent seven years at Ferrari as its technology chief and was responsible for much of the company’s road-car innovation.
The potential appointment, which was first reported by Sky News, comes as the Woking-based supercar maker is in the process of repairing its finances after the pandemic forced it to halt production, seek government support and axe a quarter of its workforce.
The company has also been struggling to manage the rise of electric vehicles, which require heavy investment beyond the reach of most small-scale premium manufacturers.
03:20 PM
Handing over
That’s all from me for today – thanks for following! Giulia Bottaro will take things from here.
03:01 PM
Meta appeals Russia ban over ‘extremist’ activity
Meta has filed an appeal against a Russian court ruling that banned it from operating in Russia on the grounds of “extremist activity”, the Interfax news agency reported.
Meta’s Facebook and Instagram social networks have been blocked in Russia, but its WhatsApp messaging service was not affected by the March 21 Moscow court ruling.
02:41 PM
IMF: UK faces worst inflation shock of G7 nations
Britain faces the worst inflation shock of all major advanced economies over the next two years.
That’s according to the IMF, which said the UK economy will be around 1pc smaller in both 2022 and 2023 than it forecast in January.
It blamed the downgrade on the cost-of-living crisis and slowing investment as interest rates rise to tackle rocketing consumer prices.
No other G7 nation had its outlook lowered across the two years by as much. In 2023, the UK is expected to grow more slowly than the rest, just behind France.
Still, things are worse for Russia. The IMF predicted that a tightening of sanctions to target Moscow’s energy exports would cause a significant further drop in Russia’s economic output by as much as 17pc by 2023.
Read more on this story: Russia and China threaten ‘tectonic shift’ in world economy, IMF warns
02:28 PM
Pound slips below $1.30 amid interest rate doubts
Sterling has dropped below $1.30 in its fourth straight day of losses against the dollar amid uncertainty over the Bank of England’s plans for interest rates.
The pound fell 0.2pc to $1.2980 – within touching distance of its November 2020 low of $1.2973 hit last week. Against the euro, it was 0.3pc lower at 83.08p.
While consumer prices surged to 7pc last month, investors have become increasingly unsure whether the Bank of England will pursue an aggressive approach to monetary policy tightening amid the threat of a slowdown in growth.
Money markets are currently pricing in around 146 basis points of further interest rate rises this year, which would take the base rate to between 2pc and 2.25pc.
Traders are now looking ahead to a speech by Governor Andrew Bailey on Thursday.
02:10 PM
Who will save the world economy?
As sharp slowdowns threaten, there seems to be no obvious saviour to the multitude of problems hammering countries.
Tim Wallace digs into the economic crisis gripping the world economy and asks: Who can save us?
01:58 PM
Deliveroo found guilty of abusing riders’ rights in France
Deliveroo has been slapped with a €375,000 (£312,000) fine after a French court found it guilty of “undeclared labour” by using freelance riders who should have been considered employees.
The court ordered the maximum fine sought by prosecutors and also handed suspended one-year prison sentences to two former French executives at the British delivery firm.
A third executive got a suspended four-month sentence and a €10,000 fine for complicity in the system, while Deliveroo was ordered to pay €50,000 each in damages to five labour unions who joined the case as plaintiffs.
It’s the latest effort by courts to recognise the rights of so-called gig economy workers who are often denied the benefits enjoyed by employees.
Deliveroo said it “categorically contests” the verdict and was decided whether to appeal.
01:38 PM
Wall Street opens flat
US stocks have stumbled at the opening bell as investors waited for more company results to assess the impact of the Ukraine war.
The benchmark S&P 500 and Dow Jones were both little changed as markets opened. The tech-heavy Nasdaq fell 0.2pc.
01:31 PM
Nomura ‘loses $30m’ on UK inflation trades
Japanese bank Nomura is said to have lost tens of millions of dollars on transactions linked to UK inflation when a new trading strategy backfired.
The Tokyo-based lender attempted to expand its sterling-based inflation trading business in early 2021. But traders were hit by sharp moves in UK consumer prices and lost about $30m (£23m) last year, Bloomberg reports.
While households are suffering from rampant inflation, it’s been a major boost for some Wall Street traders who can cash in on surging prices.
Goldman Sachs reportedly made around $300m from inflation-related trades in the first quarter alone.
01:15 PM
IMF: World economy risks fragmenting in wake of Russia-Ukraine war
The world is at risk of splitting into two economic blocks as a “tectonic shift” puts an end to decades of globalisation.
Tom Rees has the details:
The warning from the IMF came as its economists slashed growth forecasts in the wake of Russia’s invasion of Ukraine.
Britain’s economy was downgraded but is still set to expand considerably more quickly this year than European rivals Germany, France and Italy.
There are fears China and Russia could create a financial system to rival the West after tough sanctions were imposed on Moscow.
The West has ejected Russian banks from the Swift global payments messaging system and China’s UnionPay has stepped in to help Moscow after Visa and Mastercard suspended operations in the country.
Pierre-Olivier Gourinchas, IMF chief economist, said: “The war also increases the risk of a more permanent fragmentation of the world economy into geopolitical blocks with distinct technology standards, cross-border payment systems, and reserve currencies.”
He said this “tectonic shift” would carry huge economic consequences and is a major challenge to “the rules-based framework that has governed international and economic relations for the last 75 years.”
01:08 PM
Russian oil shipments plunge 25pc in a week
Shipments of Russian crude oil declined by a quarter in just seven days as traders continue to shun the Kremlin’s energy.
A total of 30 tankers loaded about 21.8m barrels from Russian export terminals over the week to April 15, according to Bloomberg data. That put average seaborne crude flows at 3.12m barrels a day – down by 25pc compared to the previous week.
The UK and US have announced plans to phase out Russian oil, while the EU is considering a similar move.
Traders are also implemented effective boycotts, and even volumes heading to Asia from ports on the Black Sea, Baltic and Arctic coasts plunged to the lowest in two months.
The decline in oil exports cuts a key source of revenue for Putin. At current rates of crude oil export duty, the week’s shipments will have earned the Kremlin about $181m (£139m). That’s $60m less than the previous week.
12:56 PM
UK revokes Moscow Stock Exchange’s recognised status
The UK has said it’s revoking the Moscow Stock Exchange’s status as a recognised exchange.
The move, announced by HM Revenue & Customs, means investors will not be able to access certain UK tax benefits in future when trading securities on MOEX, although existing investments will be protected.
Recognised stock exchange status is a classification given by HMRC for tax purposes. Securities traded on a recognised stock exchange are eligible for certain tax treatments and reliefs.
The move comes after Moscow banned foreign investors from pulling their investments in Russian stocks.
Lucy Frazer, financial secretary to the Treasury, said:
As we continue to isolate Russia in response to their illegal war on Ukraine, revoking Moscow Stock Exchange’s recognised status sends a clear message – there is no case for new investments in Russia.
12:33 PM
Bulb boss apologises for supplier’s collapse
The co-founder of collapsed energy supplier Bulb has apologised for costing the taxpayer billions of pounds.
Hayden Wood, who still serves as chief executive of Bulb, told MPs: “I’m very sorry for the way things turned out. This has been an extremely challenging time for the energy sector.”
Bulb, Britain’s seventh largest supplier, is being run by Teneo after being placed under special administration in November. The OBR estimates the collapse will cost £2.2bn by the end of 2023.
The company has been criticised for failing to hedge its energy purchases, leaving it expose to huge volatility in markets that’s been exacerbated by Russia’s invasion of Ukraine.
12:22 PM
Grant Shapps’ bargain train ticket deals descend into farce
Grant Shapps’ push to entice the public back to the railways risked descending into farce after websites crashed, claims that it would help the cost of living crisis were rubbished, and millions of daily commuters were excluded from the “Great British Rail Sale”.
Oliver Gill has the story:
Critics highlighted that the one million bargain tickets offered represented just 1pc of all the tickets that will be sold over the next month.
Mr Shapps, the Transport Secretary, insisted that the half-price sale would help households hit by the cost of living crisis.
But Norman Baker, a former transport minister, said such claims were “a bit of a red herring” as the discounts were not available during peak hours when commuters typically travel.
Mr Baker, a spokesman for the Campaign for Better Transport, said: “It’s not enough but it’s a good first step.
“When [people] get back on the railways, they can see the trains are safe, they are clean and by and large they are punctual.”
However, he added that the sale would be no comfort to the estimated one million daily rail commuters.
11:33 AM
G20 to blame Russia for global growth hit
A meeting of G20 finance chiefs this week will be used to send a clear message that Russia is fully responsible for the global economic fallout from its war in Ukraine.
Russian officials will attend the summit, but the country won’t be able to dictate the format or agenda, a German official told Bloomberg.
The official added that the gathering should be used to send a clear message to Russia.
This week’s meeting will be the first G20 summit since the war began and will be closely watched for signs of how major economies are responding to Putin’s aggression.
The US previously suggested it would boycott G20 meetings if Russian representatives attended, but it’s since backed away from these threats.
11:13 AM
Wall Street set to fall amid growth worries
Wall Street looks set to follow the FTSE into the red this afternoon as investors weighed up inflation and growth worries.
Futures tracking the S&P 500 fell 0.3pc, while the Dow Jones slipped 0.2pc. The tech-heavy Nasdaq dropped 0.4pc.
10:57 AM
Just Stop Oil suspends protests
Environmental group Just Stop Oil has said it’s suspending protests for one week after disrupting fuel distribution across parts of the country.
The campaign group, which is calling on the Government to halt new fossil fuel projects, said it’s suspending activities until April 25. Two young supporters delivered a letter to Downing Street this morning announcing the move.
It comes after North Warwickshire Borough Council secured a high court injunction against Just Stop Oil and other groups, giving power of arrest around the Kingsbury oil terminal.
Activists have locked themselves to key energy infrastructure in recent weeks, causing low-level disruption to fuel supply at petrol stations. As of last week, Just Stop Oil said 965 people had been arrested.
10:44 AM
Gazprom holds back gas flows to Europe
Russia has kept European gas traders guessing about how much gas it will send to the continent, as state-controlled energy giant Gazprom opted again not to book extra pipeline capacity.
While markets are worried that Putin could turn off the taps, a spell of warmer weather and an easing in prices have started to temper demand.
Gazprom chose not to reserve capacity for exports to Germany via the crucial Yamal-Europe pipeline in May. That’s the fourth straight month it’s chosen not to book the link.
It comes after the Kremlin hinted that buyers still have time before Putin’s demand for gas payments in roubles kicks in.
10:26 AM
EN+ seeking legal advice over Putin’s listing ban
Russian mining giant EN+ has said it’s seeking legal advice over a new law that bans Russian companies from listing their shares on foreign stock exchanges.
The London-listed firm, which is part-owned by sanctioned billionaire Oleg Deripaska, said Putin’s order gives the company just five business days to comply.
10:16 AM
Russia plans legal challenge over foreign currency reserves
Russia is planning to launch a legal challenge to recover $300bn (£230bn) of its foreign currency reserves frozen by the West.
The country’s central bank chief told local media: “Of course, this is an unprecedented freeze, so we will be preparing lawsuits, and we are preparing to apply them, as this is unprecedented on a global scale.”
Moscow is unable to access almost half of its more than $600bn in reserves to help support the rouble, forcing it to impose a string of capital controls and restrictions.
Russia has also threatened to sue if it defaults on its sovereign debt as a result of western sanctions.
10:07 AM
UK economy to shrink in second quarter, warns Bloomberg
The UK economy will shrink in the second quarter as the squeeze on living standards, the end of free Covid testing and an extra bank holiday all hit activity.
That’s according to Bloomberg economist Dan Hanson, who expects output to contract by 0.2pc in the three months to the end of June, in contrast to consensus forecasts for growth of 0.2pc.
He expects a recession to be avoided, however, as the economy recovers in the third quarter.
Mr Hanson said the temporary dip could “make the Bank of England think twice about lifting rates beyond May” as inflation concerns give way to worries about growth.
His base case is for the central bank to deliver a fourth straight rate hike next month, and markets are pricing in further increases in the second half after inflation hit a 30-year high of 7pc last month.
The economy grew 1.3pc in the final quarter of 2021, according to the latest official data, and economists expect another 0.9pc growth in the first three months of 2022. In February, GDP was 1.5pc above its pre-pandemic peak, according to the ONS.
09:48 AM
Ministers urged to offer more energy bill support
Keith Anderson of Scottish Power says he thinks the size and scale of the energy crisis is beyond what the industry can deal with, and calls for greater Government intervention.
He proposes a deficit fund, which would see £1,000 taken off the bills of customers who are struggling. This would then be repaid over 10 years.
His rivals also say they support some sort of social tariff to help the poorest households.
09:45 AM
Energy bosses: October will be ‘truly horrific’
Two of the energy firm bosses have pointed out that the impact of price rises will be limited over the summer.
Centrica boss Chris O’Shea says that while prices have gone up 50pc, consumption will also fall by around 50pc over the warmer months.
However, the true impact will be felt in October, when the price cap is likely to rise again and the weather turns colder.
Scottish Power’s Keith Anderson warns October could be “truly horrific”.
09:42 AM
Customer debt to surge by £800m
Michael Lewis, chief executive of Eon, predicts that customer debt will surge by 50pc by the end of the year. That’s an increase of £800m.
Scottish Power boss Keith Anderson says he’s “massively concerned” for customers.
09:39 AM
Energy bosses grilled by MPs
Energy firm bosses are in front of MPs this morning to answer questions about their handling of the energy crisis.
Chief executives from four of the big six energy firms – Eon, EDF, Scottish Power, and British Gas owner Centrica – are currently being quizzed by the Business, Energy and Industrial Strategy (BEIS) Committee.
The bosses of collapsed suppliers Bulb and Avro will be on later this morning.
09:32 AM
EU braced to pay bulk of Ukraine reconstruction costs
The EU is planning to set up a solidarity trust fund to finance the reconstruction of war-torn Ukraine, with member states warned they should expect to pay the bulk of costs.
The European Commission told diplomats it’s working on an EU-wide instrument as the bloc will foot much of the bill, Bloomberg reports.
The fund, modelled on the one set up to support the post-Covid recovery, would finance investments and reforms in agreement with Ukraine’s government, but it’s not clear how much would be provided through grants or loans.
While the EU isn’t prepared to put a price tag on the task while the war is going, it’s said to have warned it will reach hundreds of billions of euros over decades.
09:15 AM
Funky Pigeon halts sales after cyber attack
Online card retailer Funky Pigeon was unable to take any orders for the whole Easter weekend after being struck by a cyber attack.
Hannah Boland has more:
Funky Pigeon, which is owned by WH Smith, said this morning it had taken its systems offline “as a precaution” following the incident last Thursday.
It has written to anyone who has used the website over the past 12 months to let them know about the attack, although it said that no customer payment data was at risk.
A spokesman said: “We are currently investigating the extent to which any personal data – specifically names, addresses, e-mail addresses and personalised card and gift designs – has been accessed.
“We take the security of customer data extremely seriously and we have temporarily suspended any new orders via the website.”
Funky Pigeon said it would update its customers and other affected parties as the investigation into the breach progresses. It has also informed data regulators and law enforcement authorities.
09:07 AM
Greece seizes Russian tanker
Greece has seized a Russian tanker carrying crude oil off the island of Evia as part of EU sanctions against Moscow.
The Russian-flagged Pegas, which had 19 Russian crew members on board, was seized near the coastal city of Karystos in Evia, a Greek shipping ministry official said.
A coastguard official added that the vessel had been seized, but not its oil cargo.
08:58 AM
Putin bans Russian firms from foreign stock markets
Putin has formally banned Russian firms from listing on foreign stock exchanges, marking a fresh blow to the country’s tycoons.
The Russian leader has signed off on legal amendments that require companies to delist their overseas shares, marking an end to a process that has gathered pace since the annexation of Crimea in 2014.
The new laws could force oligarchs such as Russia’s richest man Vladimir Potanin and steel billionaires Vladimir Lisin and Alexey Mordoshov to overhaul the ownership structure of their businesses.
The move also cements Russia’s status as a pariah from the global financial system even further. Foreign listings have slowed in recent years, while Russian companies have seen their shares crash in the wake of sanctions and boycotts.
08:44 AM
Egg farmers threaten to halt production in row over prices
Egg farmers are threatening to halt production as they accused supermarkets of “suffocating businesses” by refusing to help them cover spiralling costs.
Companies have been hit with a sharp rise in the cost of feed, energy, labour and packaging in recent months. But they accused retailers of failing to raise shelf prices to a level where many farms can break even.
A survey by the British Free Range Egg Producers Association (BFREPA) found more than half of farmers were seriously considering stopping production at the end of their current flock – a move that could remove hundreds of millions of eggs from shelves every year.
The lobby group said it has asked Tesco, Asda, Morrisons, Sainsbury’s, Aldi, Lidl, Marks and Spencer, and Waitrose for help – without success – and that they are the only ones in the supply chain who can make a difference.
Robert Gooch, chief executive of BFREPA, said:
There are clear and obvious cost increases being heaped upon farmers, and retailers simply aren’t sufficiently adjusting the retail price. Any increases being made are too little and too slow. They are suffocating businesses.
This is nothing more than supermarkets putting cheap food marketing tactics above the needs of the primary producer.
08:25 AM
Pound slips as markets shrug off partygate
Sterling has slipped in early trading as it lagged behind all its G70 rivals except the yen.
The pound was down 0.1pc against the dollar at $1.3008. Against the euro, it lost 0.2pc to 83p.
Boris Johnson is expected to address the House of Commons later today to apologise for breaking his own Covid lockdown rules.
But Adam Cole, an analyst at RBC Capital Markets, said the pound seems “quite indifferent” to politics.
He added: “The Conservatives’ large Commons majority should ensure he survives any vote, despite disquiet from within the party.”
08:13 AM
Shanghai lockdown sparks shipping chaos
Any hopes that global supply chain troubles were easing have been scuppered after Shanghai was plunged back into lockdown.
The city has been shut down for weeks amid China’s zero-Covid policy, hitting the economy and sparking unrest among residents.
But it’s also led to supply chaos, with shipping data showing a huge build-up of vessels waiting to drop off and pick up goods in the world’s largest container port.
08:02 AM
Wizz Air slides as HSBC cuts on fuel troubles
Shares in Wizz Air slid as much as 4pc after HSBC downgraded the stock to “reduce”.
Brokers said the budget airline’s decision not to hedge its fuel prior to the outbreak of the Ukraine war could come back to bite.
Analysts said Wizz Air will be at a major strategic disadvantage compared to key rival Ryanair, adding its growth strategy will be “very costly” as a result.
07:50 AM
Putin to meet business owners and executives
Vladimir Putin will meet executives and owners of big businesses tomorrow, Bloomberg reports.
No agenda has been announced, but the Kremlin has said Putin will continue to hold meetings with various industries. The Russian leader has insisted the West’s “economic blitzkrieg” hadn’t worked and sanctions had failed.
Putin convened a gathering of Russia’s top business representatives on February 24 – the day he launched the invasion.
That televised meeting was later cited by the EU as a justification for sanctions against several individuals because it showed they were members of the “inner circle of oligarchs” close to the president.
07:37 AM
FTSE risers and fallers
The FTSE 100 has slipped in early trading as concerns about global growth keep investors on edge.
The blue-chip index fell as much as 0.4pc, with consumer staple and healthcare stocks among the biggest fallers.
Diageo, Unilever and Reckitt Benckiser all shed around 2pc, while GlaxoSmithKline and AstraZeneca were both down after issuing updates on drugs.
But gains for commodity stocks limited losses. BP and Shell rose 1.3pc and 1.6pc respectively after JP Morgan raised its price targets on the companies’ shares. Glencore and Anglo American also pushed higher.
The domestically-focused FTSE 250 fell 0.6pc, with Upper Crust owner SSP Group sliding more than 5pc after Deutsche Bank downgraded its shares.
07:26 AM
Stellantis halts car production in Russia
Stellantis, which produced and sold the Peugeot, Citroen, Opel, Jeep, and Fiat brands in Russia, has said it’s suspending operations in the country due to sanctions.
The world’s fourth-largest car maker, has just 1pc of the market in Russia. It operates a factory in Kaluga with Japanese rival Mitsubishi.
Stellantis had said last month it would need to shut the plant shortly as it was running out of parts.
It said in a statement: “Given the rapid daily increase in cross sanctions and logistical difficulties, Stellantis has suspended its manufacturing operations in Kaluga to ensure full compliance with all cross sanctions and to protect its employees.”
07:18 AM
Sir Lanka facing ‘series of defaults’, says Moody’s
Sri Lanka is heading towards a “series of defaults” as it stops paying its foreign debts.
That’s according to Moody’s, which issued the warning alongside a downgrade of the country’s credit rating from Ca from Caa2.
Sri Lanka’s first default could come soon. The country was meant to pay about $78m (£60m) in interest to its bondholders on Monday, but the government last week said it would halt foreign debt service to preserve cash for food and fuel.
Analysts at Moody’s said their latest assessment “reflects governance weaknesses in the ability of the country’s institutions to take measures that decisively address the very low adequacy of foreign exchange reserves and very weak debt affordability”.
Sri Lanka has been plunged into crisis amid high inflation and lengthy power cuts, with protesters calling for the resignation of President Gotabaya Rajapaksa.
07:10 AM
Rolls-Royce aims to fire up mini nuclear reactors in 2029
Rolls-Royce hopes its mini nuclear reactors will begin producing power for the grid by 2029 as the UK accelerates its shift to renewable energy sources.
Paul Stein, chairman of the company’s small modular reactors division, told Reuters the company was likely to receive regulator approval in mid-2024 and launch operations five years later.
The Government asked regulators to start the approval process last month, having pumped £210m into the project.
Rolls wants to build reactors capable of producing about 470 megawatts of power – a seventh of the energy generated by large new sites such as Hinkley Point C, but at £1.8bn apiece, about a twelfth of the cost.
Read more on this story: Rolls-Royce fights to speed up rollout of mini-nuclear reactors
07:02 AM
FTSE 100 opens lower
The FTSE 100 has lost ground as trading resumed after the long weekend.
The blue-chip index slipped 0.2pc at the open to 7,603 points.
06:51 AM
Oil prices slump to lowest since invasion
Natural gas prices have slumped to their lowest since the start of Russia’s war in Ukraine amid warmer weather and signs Putin’s demand for payment in roubles won’t kick in until next month.
Benchmark European prices fell as much as 12pc – the lowest level since Feb 23, just before the invasion began.
Traders have been focused on shipments from Russia after Putin demanded that “unfriendly” nations pay in roubles. The EU has rejected the demand, saying to do so would violate sanctions.
But Kremlin spokesman Dmitry Peskov yesterday said there was still “some time” for Europe to pay in the Russian currency. He added that payments for April shipments were mainly due “sometime in May”.
In a further easing of pressure on prices, Europe is expected to experience above-average temperatures over the next week.
06:44 AM
France: Oil ban is ‘in the works’
Bruno Le Maire has said an EU ban on Russian oil is in the works, adding that President Emmanuel Macron supported such a move.
He told French radio: “I hope that in the weeks to come we will convince our European partners to stop importing Russian oil.”
06:41 AM
France eyes Russia oil ban
Good morning.
Russian energy imports are back in focus this morning after France called on other European nations to support fresh sanctions.
Bruno Le Maire, France’s finance minister, said it was necessary “more than ever” to implement a ban on Russian oil, cutting off a key source of revenue for the Kremlin.
While the US and UK have already announced plans to phase out Russian oil, the EU has been more reluctant to move. The continent is heavily reliant on Russia’s energy, and largest economy Germany has resisted further sanctions.
It comes as the war moves into its second phase. Ukrainian President Volodymyr Zelensky warned Russia had its assault on the eastern Donbas region.
5 things to start your day
1) Safety fears leave P&O Ferries facing ‘sky high’ insurance bill. The company’s safety performance is expected to be deemed “very low”, according to analysis of an official international database of inspections.
2) Rolls-Royce backs the ‘new Hawk’ fighter jet trainer. British-designed Aeralis aims to have a demonstrator ready by 2025.
3) Tesla forces Shanghai workers to sleep on the floor. Elon Musk’s Chinese factory using ‘closed loop’ system to restart production amid stringent Covid lockdown.
4) Zero-Covid lockdowns take their toll on China’s economy. Retail sales fell by 3.5pc last month in first fall for almost two years, while IMF warns debt explosion threatens global recovery.
5) Deloitte cashes in on government contracts as KPMG stands aside. Rival’s withdrawal from public sector work helps land consultant a £53m payday.
What happened overnight
Earlier in the Asian trading day, the S&P 500 e-minis were up by two per cent, while MSCI’s broadest index of Asia-Pacific shares outside Japan dropped by 0.5pc.
Australia’s S&P/ASX 200 rose by 0.66pc, as strong commodity prices lifted mining and energy stocks, and Japan’s Nikkei grew by 0.18pc.
Coming up today
Corporate: JTC (full-year results); Kainos Group, Petropavlovsk (trading statements)
Economics: Housing starts, building permits (US)
Source: https://finance.yahoo.com/news/france-pushes-eu-ban-russian-202445423.html