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BUSINESS
National News
EDF is second company to announce price rise MORE than a million energy customers on EDF’s standard variable tariff face a 10 per cent price increase from April 1. Gas and electricity bills will rise by an average £118 to £1,254 – up to the level of Ofgem’s new price cap – for 1.3million existing customers on EDF’s standard variable tariff. Prepayment meter customers will also face an average £106 or 9 per cent price rise. “Ofgem’s announcement confirmed that costs increased significantly last year and this was further evidenced by the collapse of several small suppliers,” an EDF spokesperson said. “As a responsible and long-term business, it is important that we reflect the costs we’re facing.” E.ON had already pushed up prices following the announcement by Ofgem last week that there would be an increase to the energy price cap.
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Carney warns of fallout from no-deal and China slowdown TRADE TENSIONS Mark Carney warns of global uncertainty
£40million loan gives Debenhams time to talk DEBENHAMS has secured a lifeline from its lenders as the department store chain seeks a broader refinancing deal amid long-term pressures on the high street. The retailer has confirmed an agreement with current lenders and noteholders to extend its borrowing facilities by a year with a cash injection of £40million. It will act as a bridge while the company continues talks for a longer-term refinancing. Chief executive Sergio Bucher said: “Today’s announcement represents the first step in our refinancing process. “The support of our lenders for our turnaround plan is important to underpin a comprehensive solution that will take account of the interests of all stakeholders, and deliver a sustainable and profitable future for Debenhams.”
MARK CARNEY has urged politicians to find a Brexit solution as he warned over economic risks posed by a slowing Chinese economy, protectionism and ‘deglobalisation’. The Bank of England governor said: “It is in the interests of everyone, arguably everywhere ... that a Brexit solution that works for all is found.” Mr Carney told the City that business investment in the UK ‘has fallen 3.7 per cent over the past year despite the ongoing expansion, high business profitability and accommodative financial conditions’. He added: “With fundamental uncertainty about future market access, UK investment hasn’t grown since the referendum was called and has dramatically underperformed both history and peers.”
He described Brexit as an ‘acid test’ of whether a way can be found to broaden the benefits of economic ‘openness while enhancing democratic accountability’. Mr Carney said trade tensions and Brexit are ‘manifestations of fundamental pressures to reorder globalisation’ and Britain’s divorce from the EU was a test in trade uncertainty, which if prolonged, could undermine global expansion. “It is possible that new rules of the road will be developed for a more inclusive and resilient global economy. “At the same time, there is a risk that countries turn inwards, undercutting growth and prosperity for all. “Concerns over this possibility are already impairing investment, jobs and growth, creating a dynamic that could become self-fulfilling.” His comments come after the Bank slashed its growth forecast for the UK economy and warned about the mounting risk of a recession in the event of a no-deal Brexit. Mr Carney also said that slowing global growth has been hampered by ‘rising trade tensions and growing policy uncertainty’, pointing to the trade dispute between the US and China. “Global economic policy uncertainty is at record highs,” he said. “Protectionist rhetoric is becoming reality, with the United States raising tariffs on a range of imports from its main trading partners, and some retaliating in kind. “If all measures contemplated are implemented, average US tariffs will reach rates not seen in half a century.” A downturn in the Chinese economy, he said, ‘would test the resilience’ of other countries. The Bank estimates that a 3 per cent drop in Chinese GDP would take 1 per cent off global activity, including 0.5 per cent each for UK, US and eurozone GDP.
Wednesday February 13 | 2019
NEWS IN BRIEF
Energy price cap sees inflation fall to target INFLATION is expected to have hit the Bank of England’s target in January, thanks to the new cap on energy prices. Consensus estimates predict Office for National Statistics figures will reveal today [Wednesday] that the Consumer Prices Index rate of inflation fell to 2 per cent last month, reaching the central bank’s goal. Inflation in December came in at 2.1 per cent, a near two-year low, due to the collapse in oil prices which pulled down petrol prices and air fares.
Huawei defence of 5G JEALOUSY could be behind some of the criticism of Huawei in the West, the Chinese technology giant has suggested. The firm said it had a ‘sound record’ of cybersecurity and warned continuing ‘groundless suspicion’ would damage the whole technology industry as it begins to roll out 5G, the next generation communication technology. Several countries – including UK officials – have expressed concerns that the firm could be compelled to assist in Chinese state intelligence work, something Huawei has repeatedly denied.
Here’s to ‘ginaissance’ EXPORTS of British gin reached a record high of £612million last year. British exports have more than doubled in value since 2010’s £288million figure and are up 15 per cent on the year before, according to HM Revenue and Customs. The ‘ginaissance’ has seen combined sales at home and abroad break £2.5billion.