Good morning.
Europe’s energy crisis deepened further this morning as the continent braces for a further cut in Russian gas supplies.
The orders show that flows through the key Nord Stream pipeline, Russia’s largest gas link to the EU, will run at just 20% capacity from 8am Berlin time. This is in line with the cuts threatened by the Kremlin earlier this week.
Benchmark gas prices rose as much as 11% in their sixth day of gains, extending a 24% gain since the start of the week.
Prices are now more than 10 times higher than usual levels for this time of year. It is sparking fears of blackouts this winter and also threatens to push the region into recession.
5 things to start the day
1) The long Covid reduces the workforce in 110,000 cases worsens the skills shortage that affects the economic recovery
2) Rishinomics ‘satisfied’ under spotlight in prime ministerial race Leadership candidate’s policies outlined in televised debates, in depth
3) ‘Impossible to have confidence’ that Randox Covid contracts were awarded fairly, says MPs Diagnostics firm awarded almost £800m in test kit contracts during pandemic
4) Union bosses block rail pay deal that could have averted strike RMT rejects Network Rail proposals for further pay rise
5) Crisis-hit Credit Suisse to lose second boss in three years Thomas Gottstein was brought in to restore the bank’s reputation but has presided over a series of costly missteps and profit warnings.
What happened during the night
Tokyo stocks opened lower this morning, with the benchmark Nikkei 225 index down 0.4%. While the broader Topix index fell 0.31%.
Hong Kong shares plunged more than 1% at the open.
The Shanghai Composite Index fell 0.2%, while the Shenzhen Composite Index of China’s second bourse also fell 0.2%.
It arrives today
- Corporate: British American Tobacco, Ibstock, Lloyds Banking Group, Primary Health Properties, Provident Financial, Reckitt Benckiser, Rio Tinto, Smurfit Kappa, Unite Group (interim); Fresnillo, GSK, Lancashire Holdings, Paragon Banking, Wizz Air (commercial update)
- Economy: Fed interest rate decision (US), durable goods orders (US), GfK consumer confidence (Germany)