Closing summary
Time for a recap.
The average cost of filling a typical family car with petrol has exceeded £100 for the first time on what was labelled a “truly dark day” for drivers.
Figures from data firm Experian Catalist show the average price of a litre of petrol at UK forecourts reached a record 182.3p on Wednesday.
Analysts warned that prices are likely to keep rising, with wholesale prices rising and a weak pound making imports pricier.
Here’s our explainer of why prices are so high:
Concerns over the UK economy grew today, after the British Chambers of Commerce predicted growth would stall, and then go into reverce by the end of the year.
The BCC warned that soaring inflation, weak business investment, tax rises and global economic shocks all hit growth.
Alex Veitch, director of policy at the British Chambers of Commerce, said:
“Our latest forecast indicates that the headwinds facing the UK economy show little sign of reducing with continued inflationary pressures and sluggish growth. The war in Ukraine came just as the UK was beginning a Covid recovery; placing a further squeeze on business profitability.
“The forecast drop in business investment is especially concerning. It is vital that urgent action is taken here, and we are having constructive conversations with the government about its review of capital allowances and other policies to incentivise business investment.
Poundland’s owner Pepco reported that UK shoppers were cutting back even on essential items as wages fail to keep pace with inflation.
Furniture chain DFS warned that profits would miss forecasts, after it suffered a drop in orders since April when cost of living pressures intensified.
Rising inflation has prompted the European Central Bank to pledge to raise interest rates for the first time since 2011 next month, and dangled the possibility of a larger rise in September.
This means its headline rate will rise above zero next month, while the era of negative interest rates for banks should be over by the autumn.
The ECB slashed its forecasts for growth, and admitted that inflation would remain over its target until the end of 2024.
Stock markets fell, while the gap between Southern European borrowing costs and those of Germany widened.
In other news..
Pilots have reacted with fury to the suggestion by the boss of Wizz Air that too many crew members were refusing to fly when fatigued.
The airline’s chief executive, József Váradi, told staff in an internal briefing: “We are all fatigued but sometimes it is required to take the extra mile.”
John Lewis has chosen Bromley, Ealing and Reading as the pilot locations for its venture into building branded homes for the rental market, as the staff-owned retailer tries to create new communities around its stores.
Energy regulator Ofgem has reported that thousands of households in Britain faced “appalling conditions” when they were left without power for more than a week after Storm Arwen hit last year.
Three network operators – Northern Powergrid, Scottish and Southern Electricity Networks and Electricity North West – have paid nearly £30m in compensation to affected customers and have agreed to pay a further £10.3m in “redress payments”.
Ofgem said a total of £44m will have been paid by distribution network companies as a result of failures in their response to Storm Arwen.
Indian billionaire Mukesh Ambani’s Reliance Industries has teamed up with US private equity fund Apollo Global Management to make a £5bn bid for the UK’s Boots chain.
Britain’s biggest train operator FirstGroup has rejected a £1.2bn takeover proposal from a US private equity firm, after its board determined the offer was too low.
Drugmakers are being urged to make more antibiotics and antifungal drugs available to low- and middle-income countries as drug resistance rises faster than expected globally.
We’ll be back tomorrow. GW
Here’s a reason for optimism amid the gloom -- UK consumer confidence has picked up, a little:
Tentative sign that measures announced by UK government last month have put a floor under falling consumer confidence?
— Andy Bruce (@BruceReuters) June 9, 2022
UK Refinitiv/IPSOS Primary Consumer Sentiment Index rises in June 👇 pic.twitter.com/IR0xbomcYi
Confidence in future financial situation and job security improved slightly.
— Andy Bruce (@BruceReuters) June 9, 2022
Survey covers late May/early June
