We start the week with another spike in natural gas prices after Putin cut off supplies via the critical Nord Stream pipeline. The gas connection was due to restart on Saturday after three days of scheduled maintenance. However, Gazprom made a last-minute decision not to restart supplies, blaming an oil leak. EU leaders had braced for such an outcome as Putin continues to use energy supplies as a weapon. The bloc is now rushing to implement emergency measures to prevent blackouts and rationing this winter as the energy crisis threatens to push the region into recession.

5 things to start your day

  1. Cut red tape on fracking to ensure energy security, Liz Truss urged – Expected to lift drilling ban ‘within days’ of becoming PM
  2. Truss reaffirms faith in Bank of England independence – Foreign Secretary says it would be ‘totally wrong’ to dictate rate course
  3. Virgin Money staff to display pronouns on name badges – Follows moves from other banks NatWest, HSBC and Halifax
  4. Matalan seeks buyer as brutal road conditions take their toll – The founding family has hoisted a “for sale” sign over the discount retailer as it grapples with bruising conditions on the high street.
  5. Britain’s pubs face bleak winter as energy costs rise – For many pub owners, there is little they can do to keep their heads above water

What happened in the night

Asian shares fell this morning, while the euro suffered further losses after Russia shut down a major natural gas pipeline to Europe. Markets face more uncertainty from US-China tension – the Biden administration is considering moves to curb US investment in Chinese tech companies and will allow Trump-era import tariffs on goods to continue while tariffs are revised. News of more coronavirus lockdowns in China added to the jittery mood, with blue chips down 0.6%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1 percent and Japan’s Nikkei fell 0.3 percent.

Subsequently

Corporate: Dechra Pharmaceuticals (full year results) Economic: Composite PMI (UK, EU), Services PMI (UK, EU, China), Retail Sales (UK, EU)