Afternoon summary
Time for a recap….
UK and European gas prices have jumped, following a leak in an underwater pipeline linking Finland and Estonia on Sunday morning.
The damage to the Balticconnector, across the Gulf of Finland, appears to be caused by “external activity”.
Finland’s president, Sauli Niinistö, said:
It is likely that the damage to both the gas pipeline and the data cable is caused by external activity. What specifically caused the damage is not yet known.
The UK month-ahead gas price is up over 12% at 122p per therm.
As the world's attention is focused elsewhere, Finland's gas pipeline has likely been sabotaged last Saturday. NATO has pledged to assist in investigations. https://t.co/ZXjdbl5h2J
— Kevin McNamee 🌻 (@kwmcnamee) October 10, 2023
European stock markets have rallied, lifted by hopes that the US Federal Reserve may be close to ending its cycle of interest rate increases.
The FTSE 100 index has jumped 1.8%, its third-biggest daily rally of the year.
Bond prices have strengthened, pulling down bond yields, with US Treasuries in demand in a dash for safe-haven assets.
The International Monetary Fund has predicted that the UK will be the slowest-growing G7 economy in 2024, although the forecasts were based on the Bank of England raising interest rates several more times.
The Bank of England has warned that consumers who are taking longer mortgages and spending more on credit cards in an attempt to cover living cost are storing up troubles for the future.
Workers at online giant Amazon are to stage a series of fresh strikes over pay, including on Black Friday, in an ongoing dispute over pay and conditions.
UK grocery inflation has slowed to 11%, the lowest in over a year.
Analysts at Deutsche Bank have predicted that the world could be heading for a repeat of the stagflation of the 1970s, with high inflation, industrial action, and conflict in the Middle East pushing up oil prices.
Cash-strapped Britons are cutting back on eating out and reining in on buying takeaways to save up for the expensive Christmas season splurge.
China’s largest private developer has warned it could default on its international debts, dealing another blow to the country’s embattled property industry.
And… Netflix has added the fewest number of new subscribers last year since launching in the UK a decade ago, as the cost of living crisis and a post-pandemic “reset” in growth among streaming services hit the US company.
The Formula One tycoon Toto Wolff and the petrochemicals empire of billionaire Sir Jim Ratcliffe have taken a share of a £75m dividend from the Mercedes racing team behind Lewis Hamilton.
Mercedes-Benz Grand Prix recorded a jump in revenues in 2022 aided by a bump in sponsorship and its work on the America’s Cup sailing championship, despite a disappointing season on the F1 track.
Revenues at the British company behind the racing team jumped by 24% to £475m in 2022, with pre-tax profits rising to £113m from nearly £72m the year before.
In March, the company approved a £75m dividend to shareholders related to its performance in 2022, up from £55m paid during 2022 based on its 2021 performance, according to accounts filed at Companies House on Tuesday.
