The government has brokered a deal between industry and fertiliser giant CF Industries to cover the cost of carbon dioxide amid soaring energy prices.
CF Industries, which produces around 60pc of the UK’s commercial CO2 requirements, halted operations at both its UK plants in September, prompting ministers to step in to ensure supply continued.
The carbon dioxide industry has now reached a deal to ensure businesses have a sustainable supply, even as energy prices spike. The new agreement will run until January.
The government said: “CO2 suppliers have agreed to pay CF Fertilisers a price for the CO2 it produces that will enable it to continue operating while global gas prices remain high, drawing on support from industry and delivering value for money for the taxpayer.”
05:18 PM
Goodbye for now
Thanks for reading our blog and do come back for the latest business news updates bright and early tomorrow morning.
05:11 PM
Guardian joins forces with arch-capitalist Sir Len Blavatnik
The Guardian’s venture capital arm has invested in a UK start-up alongside Sir Len Blavatnik, Britain's richest man, despite repeatedly criticising the billionaire in print, my collages Matthew Field reports.
GMG Ventures, which invests money on behalf of the Scott Trust, the owner of the Guardian, has joined a a $16.5m (£12.1m) fundraising round by Vidsy, a video advertising technology company. Sir Len’s business Access Entertainment was another investor.
03:41 PM
Handing over
That's all from me today - thanks for following along! I'm leaving you in the very capable hands of my colleague Laura Onita to see you through to the end of the day.
03:38 PM
Robotics firm CMR unveils huge UK warehouse
CMR surgical robot
Cambridge robotics company CMR Surgical has unveiled plans to build a massive UK manufacturing site, creating up to 200 new jobs over the next couple of years, writes my colleague Julia Bradshaw.
The 70,000sq ft warehouse in Cambridgeshire will cost £17m and is due to be completed by the end of next year. It will help CMR meet soaring demand for its laparoscopic surgical robot, Versius.
03:33 PM
Industry support to help 'viable and competitive' firms
There's some interesting politics at play in Kwasi Kwarteng's bid to secure support for industries hit by the energy crisis.
The Treasury and Business Department were plunged into a row yesterday when the Exchequer denied a claim by Mr Kwarteng that the two departments were working together on an industry support package.
With tensions already high, the Business Secretary has now shifted responsibility for a potential crisis in sectors such as steel, chemicals and glass to the Treasury, which is already facing hefty bills for its Covid support.
The Sun's Harry Cole reports that the BEIS is pushing the line that support would be aimed at "viable and competitive" firms facing closure, rather than simply a bailout.
03:16 PM
Kwasi Kwarteng 'submits formal bid' for crisis-hit sectors
Business Secretary Kwasi Kwarteng is said to have submitted a formal bid to the Treasury for assistance to support industries hardest hit by the energy crisis.
Producers of steel, glass, ceramics and paper and other sectors have said they may be forced to halt production unless the government does something about energy prices.
Following a day of mounting public tension between the Business Department and the Treasury, Mr Kwarteng has now put in a formal bid for support, reports BBC political correspondent Nick Eardley.
03:00 PM
Citi: Oil may climb to $90 a barrel
Oil prices may have soared to fresh highs, but some analysts think prices have further to run.
Citigroup now reckons oil could hit $90 a barrel at times this winter as switching away from gas drives stockpiles lower.
The bank, which raised its Brent oil forecast for the fourth quarter to $85, said inventories may dwindle to their lowest level on record in terms of days-of-cover by the end of the year.
That comes as consumption gets a boost of as much as 1m barrels a day from consumers switching away from natural gas to oil-based products amid surging energy prices.
Brent oil is already trading close to $85 a barrel, while West Texas Intermediate hit its highest level since 2014. Prices are under further pressure after Opec stuck to its plan of increasing output by only 400,000 barrels per day.
However, Citigroup said the cartel could start doubling its rate of hikes to 800,000 barrels per day amid pressure from key consumers such as the US, China and India.
02:51 PM
Electric car charging firm targets City float
Pod Point London stock market float IPO - Nathan Stirk/Getty Images
Electric vehicle charging company Pod Point is to pursue a City float as investors look to cash in on motorists switching away from petrol cars, writes Matthew Field.
The charging infrastructure business, founded in 2009 by Erik Fairbairn, was bought out by France’s EDF Energy last year and has a network of 13,000 public chargers.
Tesco and BT are among a long list of companies that want the government to force them and other businesses to be more transparent about their climate ambitions.
In a letter to Chancellor Rishi Sunak, more than 30 firms said businesses must be compelled to disclose their transition plans for how they will get to net zero. They said the government should set out when it plans to do this by.
It comes after research by charity WWF showed fewer than one in five of the UK's biggest public companies have credible plans to slash their emissions to net zero.
The signatories include B&Q owner Kingfisher, outsourcer Mitie, energy company E.On UK, as well as financial institutions that oversee assets worth £4.5 trillion, including Aviva, Legal & General Investment Management and Santander.
02:26 PM
Bitcoin breaks $57,000 mark
It's not just old-school commodities rallying today – Bitcoin is also on the climb.
The cryptocurrency has broken through the $57,000 mark for the first time since May as traders bet it can get back to record highs reached earlier in the year.
As always, it's hard to pin down exactly what's behind this latest movement, but reasons range from from an easing of concern about regulation in the US and China to renewed optimism about a possible US Securities and Exchange Commission approval of a Bitcoin exchange-traded fund.
Analysts say $60,000 will now be the digital coin's next level of resistance.
02:18 PM
Aluminium hits highest level since 2008
Aluminium highest 2008 - Oliver Bunic/Bloomberg
Aluminium has jumped to its highest level since July 2008 as the deepening power crisis squeeze supply of the energy-intensive metal.
Aluminum rose as much as 2.6pc to $3,044 a tonne today, leading gains in base metals and commodities more broadly.
The metal, which is used in everything from beer cans to iPhones, is often dubbed "solid electricity" due to the huge amounts of power required to produce it.
That meant aluminium was one of the first targets in China’s efforts to curb industrial energy usage. Now, energy costs surging across Asia and Europe mean there’s a risk of more supply cuts, and some investors are betting that prices have much further to run.
02:10 PM
Wall Street rebounds as oil hovers at fresh highs
US stocks have rebounded as investor concerns over inflation eased slightly after the opening bell.
Wall Street's three main indices started in the red this afternoon, but have since moved into positive territory. The S&P 500 is up 0.2pc, while the Dow Jones has risen 0.5pc and the Nasdaq is up 0.4pc.
It comes as oil continues to rally, with Brent crude pushing close to $85 a barrel. Aluminium was also at its highest level since 2008.
01:52 PM
Industries call on government to cover gas price hike
Some of the country's most energy-hungry industries are calling on the government to step in with support as spiralling gas prices push up production cots.
The steel, chemical and glass industries have all weighed in with appeals for support.
Gareth Stace, the general director of UK Steel, warned of a looming crisis, saying factories had already been forced to pause production and warning of longer closures.
He told Times Radio: "Any time energy prices skyrocket like we've seen now, that hits us very very hard.
"Any profits that we might have been making – because the steel industry globally is doing OK at the moment – are totally wiped out at the moment with these exorbitant prices."
Meanwhile, Dave Dalton, head of industry body British Glass, said more urgent action was needed from ministers.
Talking to BBC radio, he played down a meeting with Business Secretary Kwasi Kwarteng last week, saying that it was "very much an introductory one". He added: "We need immediate action."
01:35 PM
Wall Street opens lower
US stocks have opened lower as surging oil prices added to existing jitters about inflation.
The benchmark S&P 500 dropped 0.1pc at the opening bell, while the Dow Jones was down a marginal 0.06pc. The tech-heavy Nasdaq fell 0.3pc.
It comes as US companies prepare to report their third-quarter results, starting with Wall Street banks later this week.
01:19 PM
KKR's billionaire founders step down
KKR co-founders George Roberts and Henry Kravis - Liz Hafalia/The San Francisco Chronicle via Getty Images)
Henry Kravis and George Roberts, the billionaire private equity tycoons, are stepping down from their leadership roles at KKR to give way to their handpicked successors.
The pair have selected Joe Bae and Scott Nuttall as co-chief executive officers, effective immediately. Mr Kravis, 77, and Mr Roberts, 78, will serve as executive co-chairmen of the board.
Along with the changes, KKR said it will move to a one-share, one-vote structure within five years.
In a joint statement the founders said: “We are proud of what we have built to support companies and serve our clients over the last four and a half decades.”
Mr Bae and Mr Nuttall joined KKR in 1996 and were appointed co-presidents and co-chief operating officers in July 2017 – the first move in a succession plan orchestrated by the private equity firm's founders.
Mr Kravis and Mr Roberts, who are cousins, founded KKR in 1976 alongside Jerry Kohlberg, who died in 2015. The pair each have an estimated net worth of around $11bn (£8bn), Bloomberg reported.
12:58 PM
FTSE 100 pushes higher
Time to check in on the FTSE 100, which has picked up pace since its sluggish start.
The blue-chip index is now trading 0.3pc higher at 7,118 points, largely thanks to gains for major mining and energy stocks.
Anglo American is leading the risers with gains of almost 5pc, while Rio Tinto, Antofagasta and Glencore are all up more than 3pc. BP and Shell are also providing strong momentum.
It's less good news for the domestically-focused FTSE 250, which is down 0.7pc, with consumer services stocks among the worst performers.
Meanwhile, Asos remains today's most dramatic mover, languishing down 15pc after it said its chief executive was stepping down amid slowing growth.
12:51 PM
Early rate rise would 'derail economy', investors warn
The Bank of England risks derailing Britain's economic recovery by increasing interest rates too quickly, investors have warned.
My colleague Tom Rees has more details:
Almost half of investors surveyed by Deutsche Bank warned that the UK was most likely to push up borrowing costs too rapidly, in a bid to stop prices running out of control.
The government could protect consumers from surging energy costs by scrapping VAT on their bills, an industry body has said.
Mike Foster, chief executive of the Energy & Utilities Alliance, said: “Scrapping VAT on energy, as a temporary measure, will immediately reduce the bills of hard-pressed households.
“Consumers are genuinely worried about paying so much more to keep warm. The choice of ‘heating or eating’ is one that no one should have to make.”
Over the weekend Business Secretary Kwasi Kwarteng reiterated his support for keeping the energy price cap in place. However, analysts expect it to rise by around a third when it's next revised in February.
Ministers have also pushed ahead with plans to apply a green energy surcharge to household gas bills instead of electricity bills.
The move is designed to encourage people to move away from using gas for home heating and cooking, but it has come under fire over concerns it will hurt consumers in the short term.
While businesses reliant on CO2 have had some positive news today, the outlook isn't quite so rosy for Britain's steel industry.
The sector's lobby group has warned of an impending crisis, with soaring energy prices threatening to spark shutdowns, increase emissions and wreak havoc across supply chains.
UK Steel said: "These extraordinary electricity prices are leading to smaller or wiped-out profits and thus to less reinvestment. With winter approaching, demand for gas and electricity will rise, and prices could get higher, which will make it impossible to profitably make steel."
The lobby group warned some plants may have to shutter their production "for increasingly extended periods", adding that this would have consequences not only for individual companies but also the wider economy.
It added that sudden shutdowns could damage equipment, increase costs and ultimately lead to "poorer environmental performance with higher emissions".
UK Steel called on the government to step in with help, saying Britain could provide a fixed amount of capacity at a competitive price or a virtual interconnector.
11:53 AM
Kwasi Kwarteng: Deal gives businesses confidence
Business Secretary Kwasi Kwarteng - Photo by JEFF OVERS/BBC/AFP via Getty Images
Business Secretary Kwasi Kwarteng has said the new deal will give businesses confidence over supplies of CO2 in the coming months.
CO2 is crucial for numerous companies in Britain's food and drink sector, with warnings that meat could start to disappear from supermarket shelves if a new agreement was not struck.
Mr Kwarteng said:
Today’s agreement means that critical industries can have confidence in their supplies of CO2 over the coming months without further taxpayer support.
11:47 AM
Government brokers CO2 deal
Some more details on the deal CO2 deal with CF Industries:
The government says CO2 suppliers have agreed to pay CF Industries a price for the CO2 it produces that will enable it to continue operating while prices remain high.
11:11 AM
US futures drop as oil keeps climbing
Wall Street is set to open lower this afternoon as oil prices hold their record highs, sparking fears the energy crunch could derail the pandemic recovery.
Futures on the benchmark S&P 500 are down 0.5pc, while the Dow Jones is pointing 0.3pc lower. The tech-heavy Nasdaq is set to open 0.7pc lower.
A key US oil benchmark rose past $80 on Friday for the first time since 2014, and has held its gains at the start of the week.
Fuel shortages in China and Europe bolster the case that higher inflation will persist beyond the expectations of central bankers, pushing them toward faster rate increases to curb price pressures.
Inflation data due on Wednesday is expected to show price pressures remained elevated in the US last month.
Salman Ahmed at Fidelity International said: “We see rising risks to global growth and evidence of more persistent inflation, which makes us more cautious on the outlook for global markets overall.”
11:03 AM
Vectura inhaler sales under threat amid Philip Morris takeover
Vectura could be facing a major sales hit as the backlash grows over its takeover by a tobacco giant.
The British inhaler company has agreed to a £1.1bn merger with Philip Morris, which makes Marlboro cigarettes, but questions have been raised about its future status in the scientific community due to rules about working with tobacco firms.
Respiratory organisations plan to issue guidance within the coming weeks on how healthcare providers should handle PMI's purchase of Vectura, which makes treatments for lung illnesses.
But some doctors and patients are already voicing discomfort and said they may shift to alternatives from rivals such as AstraZeneca and Teva, Bloomberg reports.
Gas prices have fallen further today after Russia said it would intervene to pump more gas to Europe to help stabilise the energy market crisis.
Prices retreated on Monday after surging to fresh highs last week after President Vladimir Putin said Russia could potential ship record levels of fuel this winter.
On Friday, state-owned oil giant Gazprom increased its 2021 price guidance for exports, though it did not give guidance on the specific amounts it could sent to the continent.
Dutch front-month gas fell 0.9pc to €86.82 euros a megawatt-hour, while the UK equivalent was trading flat.
Still, analysts think wholesale gas prices will remain high over the longer term.
Warren Patterson at ING Group said: “Given the amount of uncertainty heading into winter, we suspect natural gas prices will remain elevated and volatile. It is only as we move toward the end of winter that we see significantly weaker prices.”
10:37 AM
Asos brand perception
Asos shocked the market this morning by announcing the departure of chief executive Nick Beighton.
Mr Beighton joined the online fashion retailer 12 years ago and took over the top job in 2015. He's led the company through a period of rapid growth, but with momentum slowing in recent years questions have been raised about his future.
We've got hold of some data from YouGov which shows how Asos' brand perception has changed during his tenure.
10:32 AM
Merck applies for emergency authorisation for Covid pill
Merck & Co has applied for emergency use authorisation in the US for its Covid pill, in what could be a major step forward in treating the disease.
The treatment, molnupiravir, has been developed with Ridgeback Biotherapeutics. If authorised, it would be the first oral antiviral medication.
Merck is seeking the green light to use the drug to treat patients suffering from mild to moderate cases of Coivd-19.
Data released last week showed that molnupiravir could halve the chances of death or being hospitalised for those most at risk of contracting severe Covid-19.
Earlier today, AstraZeneca said its Covid antibody cocktail halved the risk of developing severe illness or death in patients who had been symptomatic for a week or less and weren’t hospitalised.
10:13 AM
Heathrow demands sustainable fuel policy
Heathrow chief executive John Holland-Kaye - Chris Ratcliffe/Bloomberg
Heathrow airport has called on the government to mandate the use of sustainable aviation fuels (SAF) to help lower carbon emissions amid growing pressure from climate groups.
In a statement this morning, the airport said it's also looking at other policies that would scale up production of sustainable fuels in the UK, including a price support mechanism and loan guarantees.
John Holland-Kaye, Heathrow chief executive, said: “We should aim for 2019 to have been the peak year for fossil-fuel use in global aviation.”
The demand comes as debate intensifies over how to tackle the challenge of lowering air travel’s carbon footprint – and who pays for it. Last week, the airline industry’s main lobby group adopted a target of eliminating carbon emissions on a net basis by 2050.
Increasingly, the industry has rallied around SAFs – which the latest jets can easily accommodate – as one way to cut back on the use of conventional fuel. However, it is expensive and still produced in only limited amounts.
Mr Holland-Kaye called on the UK to set an example as it hosts the coming COP26 climate conference at the end of this month, and said an acceleration of SAF use “will protect the benefits of flying for future generations.”
09:53 AM
Fantasy Fund Manager returns
Exciting news today from the Telegraph's Money team, who've brought back the hugely popular Fantasy Fund Manager.
Bank of America forecasts December interest rate hike
Bank of America has shifted expectations of a UK interest rate rise forwards by two months amid rising concerns about inflation.
BofA analyst said the Bank of England will lift rates by 15 basis points (bps) in December and a further 25bps in February.
It had previously predicted the first 15bp hike would come in February. Mr Wood pointed to recent comments by Bank officials that seemed to hint at a rate increase soon.
He said that while a rate hike now "does little to address the causes of inflation today" and officials should look through the current spike, the Bank appeared concerns about inflation credibility.
Mr Wood says the BoE will "hike early to add credibility, avoiding more hikes later", adding he expects the Bank to pause at 0.5pc.
09:33 AM
Analyst reaction: The Asos bubble bursts
Analysts are disappointed by Asos's forecasts for the year ahead, while the abrupt departure of chief executive Nick Beighton has added a further blow.
Andrew Wade at Jefferies says the guidance was below consensus expectations, and investors will likely “struggle to put much credibility” on the online fashion retailer’s mid-term targets. He adds that while a downgrade to the outlook had been anticipated, the cut is likely “bigger than most will have envisaged”.
09:17 AM
Drinks maker Britvic loses its fizz
Britvic, the drinks maker behind brands including Robinsons, Lipton ice tea and Fruit Shoot, has slumped this morning after it was downgraded by an analyst.
Shares in the FTSE 250 company dropped more than 5pc – their biggest fall in a year – after RBC said it was "relatively poorly" positioned, with limited brand power and a concentrated UK footprint.
RBC said Britvic will need to invest heavily in labour, logistics and carbon dioxide supply in the next year given the "severe" supply chain disruption, but warned it lacked the scale and diversification of its larger rivals.
09:02 AM
Interest rate hike 'increasingly likely'
The pound is making gains this morning, with expectations rising that the Bank of England will move soon to raise interest rates to curb inflation.
Economist Julian Jessop says a rate rise is "increasingly likely", but adds that rates remain near historic lows and that the economic backdrop remains the key factor in public finances.
08:56 AM
Oil surges past $80 a barrel
Oil prices have clung to their lofty heights at the start of the week amid expectations that the global power crunch will push up demand.
US benchmark West Texas Intermediate was up 2pc this morning after surging past $80 on Friday for the first time since November 2014. The US crude benchmark has risen almost 30pc since mid-August.
With prices of fuels such as coal and gas soaring in Europe amid supply shortages, a switch to oil products is pushing up demand.
Prices have been further supported by Opec's decision to stick to its modest plan of increasing output by 400,000 barrels a day in November.
08:49 AM
Green supplier Good Energy set to hike bills
Green energy supplier Good Energy has said it's safe from the worst effects of the rise in gas prices, but said it has put up prices for customers.
The supplier said it had pre-ordered enough gas at fixed prices to see it through the crisis – a practice known as hedging. Bosses said they have bought 90pc of the gas that they will need over the next year.
Good Energy has also benefited from its exemption to the energy price cap due to its environmental credentials, which has left it free to lift prices for consumers.
The cap has contributed to the collapse of 10 British suppliers in the last few months, as most companies are unable to pass on higher wholesale gas costs to consumers.
Good Energy also brought back its dividend, making good on its promise to restore the payout after seeing off a hostile takeover bid from rival Ecotricity.
08:32 AM
Former Chancellor Philip Hammond joins crypto startup
Former Chancellor Philip Hammond startup crypto Copper - John Nguyen/JNVisuals
Former Chancellor Philip Hammond has taken a job as an adviser to cryptocurrency startup Copper, the Financial Times reports.
Copper, which was founded in 2018, specialises in cryptocurrency custody and trading. It provides services to institutional investors and says it handles $50bn in transactions each month on behalf of roughly 400 clients.
Mr Hammond, who championed Britain's fintech sector during his time as Chancellor, is one of the most high-profile political figures to join the rapidly-growing digital assets sector.
He told the FT: “The really exciting opportunity lies in the application of [Copper’s digital asset investment] technology to revolutionise the way financial services are delivered.”
08:25 AM
Two UK-Ireland power cables restricted
The energy woes just keep coming – this time closer to home.
Grid operators are restricting flows through two power cables linked the UK and Ireland in a move that could put further pressure on energy prices.
Flows on the Moyle interconnector with Northern Ireland are unavailable today for "system security reasons", data shows. Meanwhile, flow on the East-West cable with the Republic of Ireland will be restricted until Tuesday morning.
The restrictions will ring alarm bells just weeks after a fire at a substation in Kent knocked out a key cable bringing power to the UK from France.
That fire is contributing to higher energy prices, while National Grid has warned there's a greater chance of blackouts this winter as a result.
08:16 AM
Fire breaks out at Lebanon oil plant
Lebanon oil Zahrani - AP Photo/Hassan Ammar
A major fire has erupted at a key fuel storage facility in Lebanon this morning – adding to fears as the country battles an energy crisis.
Local media reported a "huge fire" at the Zahrani facilities, which are around 30 miles south of Beirut. There was no immediate report of casualties and Lebanon's Prime Minister said the blaze had been contained.
The Zahrani facilities also include the power plant of the same name, and provide 15pc of the country's fuel oil.
It comes as the country battles one of the planet's worst economic crises since the 1850s, and has in recent months struggled to import enough fuel oil for its power plants.
In recent months, citizens have only received one or two hours of state electricity a day, while the grid went offline completely on Saturday.
That outage came after two key power plants, including the one in Zahrani, ran out of fuel.
08:07 AM
Credit Suisse delays publication of Greensill report
Credit Suisse Greensill Capital $10bn - Stefan Wermuth/Bloomberg
Credit Suisse is delaying the publication of findings from a report into the collapse of the $10bn (£7.3bn) group of funds it ran with Greensill Capital.
The Swiss lender had planned to release the report alongside its third-quarter results, but will now take longer as executives focus on the implications for their ability to claim back lost money for investors, Bloomberg reports.
It comes after Swiss police raided Credit Suisse's headquarters in Zurich – a move that has raised the stakes for the bank.
Investors in the supply chain finance funds are still waiting for over $3bn to be repaid, more than half a year after the money pools were frozen.
Analysts are raising the alarm over inflation in China after the country decided to allow electricity prices to rise to ease its energy crisis.
China said power prices will be allowed to rise by as much as 20pc against a benchmark, double the level of the current cap. It's designed to make it profitable for electricity producers to boost supply, while also curbing users’ demand.
But analysts at Nomura and Societe Generale reckon could spark a big rise in both the consumer price index and the producer price index – key gauges of inflation.
It comes alongside a deterioration in economic growth this year given sluggish consumer demand, tighter property curbs and worsening energy shortages.
Citigroup analysts warned of a “short period of stagflation” in China because of elevated producer price index inflation and growth pressures.
They added: “China may also export inflation as the disruptions ripple through global supply chains.”
There's a positive update from AstraZeneca this morning, which said its antibody drug is effective at preventing people with mild or moderate Covid from developing a more severe version of the virus.
The pharmaceutical firm said its antibody cocktail halved the risk of developing severe illness or death compared with a placebo in 822 participants who had been symptomatic for a week or less and weren’t hospitalised.
The results are another boost for AstraZeneca's plans for the drug after it was also found to be highly effective at preventing symptomatic disease in high-risk people. It comes amid hopes that US pharma rival Merck is close to developing the first Covid pill.
The results have failed to impress investors, though, with shares in AstraZeneca down 0.8pc this morning.
07:41 AM
Sterling hits two-week high
Sterling has risen to its highest level in nearly two weeks after Bank of England officials gave further hints about an imminent rise in interest rates.
The pound rose as much as 0.4pc against the dollar to $1.3674 – its highest since Sept 28. Against the euro if fell as much as 0.3pc to 84p.
It follows comments from senior figures at the Old Lady of Threadneedle Street over the weekend that reinforced signals of a move to curb inflation.
Michael Saunders suggested that investors were right to bring forward bets on rate hikes, while government Andrew Bailey warned of a potentially "very damaging" period of inflation unless policymakers took action.
07:30 AM
FTSE risers and fallers
After a slow start, the FTSE 100 is now up 0.3pc to 7,117 points.
The gains are being led by the big miners, with Anglo American, Fresnillo, Antofagasta and BHP all shooting to the top of the index. Oil majors Shell and BP have also gained just over 1pc.
Bill Ackman's Pershing Square Holdings is the biggest laggard, losing 1.8pc.
The domestically-focused FTSE 250 is down 0.3pc.
07:19 AM
Asos shares plunge
Unsurprisingly, Asos shares have dropped sharply at the open this morning.
Shares in the Aim-listed company dropped almost 15pc to just under £24 apiece.
It follows the double shock of the chief executive departure and disappointing growth targets for 2022.
07:08 AM
Gupta pumps £50m into Rotherham steel plant
Liberty Steel boss Sanjeev Gupta Rotherham £50m - Brendon Thorne/Bloomberg
Another big story to start the week comes from Sanjeev Gupta, who has injected £50m into his struggling Rotherham steel plant to restart operations.
The entrepreneur's conglomerate, GFG Alliance, is seeking to relaunch production at the Liberty Steel factory this month. It has also agreed a debt restructuring deal at Liberty's Australian metals business with Credit Suisse.
Mr Gupta said the moves "will allow time to prove the operations can run efficiently, which will enable us to finalise longer debt restructuring".
Greensill Capital, GFG's main lender, collapsed in March, leaving the companies scrambling to survive – a challenge made even greater by rocketing power costs.
The decision to reopen – which will safeguard 600 jobs – was welcomed by Community, the steelworkers' union.
07:02 AM
FTSE 100 opens flat
It's a fairly sluggish start to the week for the FTSE 100, which is largely unchanged at the open.
The blue-chip index has inched a fraction higher to 7,098 points.
07:00 AM
Supply chain troubles weigh
Asos has struck a very cautious tone on the outlook, which could well ring alarm bells for investors.
The company said supply chain issues will persist in the first half of the year, resulting in "longer lead times and constrained supply from a number of our partner brands".
The comments suggest the retailer is struggling to keep up with consumer demand. However, it expects an acceleration of sales in the second half of the year as the problems ease, as well as an increase in events.
Asos also used its update to set out a target of doubling its annual revenue to £7bn in the next three to four years. It's also aiming for a profit margin of at least 4pc.
Mat Dunn, chief operating officer and chief financial officer, said:
Looking ahead, while our performance in the next 12 months is likely to be constrained by demand volatility and global supply chain and cost pressures, we are confident in our ability to capture the sizeable opportunities ahead.
06:49 AM
Asos growth slows
Alongside the surprise leadership change, Asos has also released its full-year results – they were scheduled to be released later this week.
The retailer warned it expects growth to slow to a mid-single-digit percentage rate in the first half of its new financial year as a result of supply chain troubles.
Asos also forecast a decline in pre-tax profit to a range of between £110m and £140m.
Its profit for the full year grew by a quarter to £177m, but fell short of analyst expectations. Revenues were up 20pc to £3.9bn.
In a further board reshuffle, Asos said Ian Dyson will become chairman, replacing Adam Crozier, who previously announced his decision to step down.
06:39 AM
Asos chief executive steps down
Good morning.
We start the week with a surprise board overhaul at Asos, which has announced the departure of chief executive Nick Beighton.
Mr Beighton has stepped down with immediate effect after leading the fashion retailer for 12 years. The search for his successor will now begin, with chief financial officer Mat Dunn running the day-to-day business.
5 things to start your day
1) Nationalised rail chiefs get inflation-busting pay rise: Ministers have been accused of hypocrisy after bosses at Britain’s nationalised rail operator were handed an inflation-busting pay rise despite ordinary rail workers being forced to endure a two-year freeze on wages.
Executives on the six-person board of DfT OLR Holdings, which runs the LNER and Northern rail networks, shared remuneration of £718,000 this year according to recent filed accounts, a rise of 5.7pc on 2020.
2) Mortgage rates to soar by most since 2008: Homeowners face the biggest surge in mortgage costs since the property market collapse in 2008 as investors brace for a string of interest rate rises to rein in inflation.
Markets expect a sharp 0.5 percentage-point climb in the interest rate on a new two-year fixed rate mortgage to 1.7pc by the end of next year, a blow to households already facing soaring living costs. An increase on this scale would add almost £50 a month to the cost of paying off a typical £200,000 mortgage.
Trades aimed at insuring against a sterling plunge against the dollar have jumped sharply in the last two weeks, with bearish bets hitting their highest level since March.
GD UK Ltd, a British offshoot of General Dynamics, posted a 41pc rise in pre-tax profit for the year to December 31, according to results posted at Companies House. Revenues edged up 2pc to £735m, of which £542m came from Ajax.
5) Bitcoin mining giant plots billion pound float: A bitcoin mining company is laying the groundwork for Europe’s biggest cryptocurrency float after seeking advice on a listing in the next 12 months.
Bitfury Group is understood to have tapped Deloitte to review its readiness for going public, with a likely price tag in the billions of pounds.
What happened overnight
Asian shares rallied on Monday courtesy of gains in China which also helped US stock futures pare early losses, while rising Treasury yields lifted the dollar to a near-three-year peak against the Japanese yen.
Nasdaq futures and S&P 500 futures were both down around 0.1pc, but well above early lows. EUROSTOXX 50 futures dipped 0.1pc and FTSE futures held steady.
Oil prices extended their bull run, with gains across the energy complex stoking inflation concerns.
A 1pc rise in the Chinese blue chip index helped stabilise the mood and MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7pc.
The drop in the yen provided a welcome boost to Japan's Nikkei which reversed early losses to rise 1.7pc, though Australia was still off 0.4pc.
