Good morning.
IFS is alerting to Rishi Sunak’s plans to help British households with their energy bills.
Paul Johnson, director of IFS, said further support for the poorest households in the UK was “very much needed” as energy bills continue to rise.
But he said a total distribution – which could cost around £ 10 billion – means the money will go to people who are “not in desperate need” and could lead to even higher inflation.
The chancellor is expected to unveil plans to ease household energy bills, which will be funded in part by an unforeseen tax on energy giants.
5 things to start your day with
1) Government to intervene in China’s chip giant offer: Kwasi Kwarteng has ordered a detailed security review of China-backed takeover of Britain’s largest microchip plant in the clearest sign so far that the deal will be blocked.
2) Britain is planning a rival summit in Davos to attract international elite: The government is in the early stages of organizing the summit, which is expected to begin in the autumn of 2023, after Davos was rejected by many top political and business leaders this year.
3) Volkswagen will give British drivers 2,000 British pounds over the dieselgate scandal: The German carmaker will pay 193 million pounds after arranging a five-year lawsuit over the use of illegal software in its cars to manipulate pollution data in tests .
(4) China must destroy Elon Musk’s satellites with a “hard assassination” weapon, scientists say: Researchers at the Beijing Institute of Tracking and Telecommunications have called Starlink a threat to China’s national security because of its “huge potential for military applications.”
5) Oligarch Alexander Lebedev breaks ties with the Independent after the sanctions hit: The billionaire was hit by an asset freeze and visa ban last Friday over his ties to the Kremlin while Vladimir Putin continues to wage war with Ukraine.
What happened during the night
Asian stock markets fell after minutes from a Federal Reserve meeting in early May showed a majority in favor of raising interest rates by half a percentage point in June and July, as persistent fears of global growth undermined confidence.
MSCI’s broadest index for Asia-Pacific stocks outside Japan fell 0.5% after trading higher early in the morning.
China’s blue chips fell 1.1 percent despite another drop in Covid’s cases, where the blockade threatens to undermine recent economic support measures.
Expect today
Corporate: Johnson Matthey, Auto Trader, United Utilities (year-round results); DP Eurasia, Kingfisher (trading statement)
Economy: GDP (USA), initial unemployment claims (USA)
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