Energy collapse and commitment

Today's news headlines: 

‘Three more UK energy suppliers collapse after price spike’. Since August, the number of collapsed British energy suppliers has climbed to 18 after four more fell this week, with additional failures expected, according to Business Secretary Kwasi Kwarteng. The collapses so far have forced more than two million households to switch suppliers as companies see natural gas and power prices remain at triple the normal level for this time of year. What’s more, price pressures are preventing companies from contributing toward renewable energy subsidies. (Bloomberg)

‘Carney-led finance coalition has up to $130tn funding committed to hitting net zero’. More than 450 global banks, insurers and asset managers have committed up to $130 trillion to hit net zero emissions by 2050. Former Bank of England Governor Mark Carney leads the Glasgow Financial Alliance for Net Zero (Gfanz), which launched in April, and has since doubled the amount of capital committed to the cause. However, climate campaigners have criticised the allegiance, with Becky Jarvis from Bank of our Future claiming the commitments are ‘a mile wide and an inch deep’. (Financial Times) 


Today

US and European equity futures fell overnight ahead of Wednesday’s Federal Reserve policy announcement, while Asian stocks declined as China fights its worst Covid outbreak since its emergence in 2019. The US Dollar was unchanged on a trade-weighted basis while oil prices slumped following US pressure on the OPEC+ members to boost oil supplies.

Events

Caixin China Composite PMI: 51.5 vs 51.4 previously
Nationwide House Price Index (YoY): 9.9% (exp. 9.2%) 
Markit’s UK Services and Composite PMIs: 9:30AM
Eurozone Unemployment Rate: 10:00AM
US ADP Employment Change: 12:15PM
Markit’s US Services and Composite PMIs: 1:45PM
US Factory Orders and Durable Goods Orders: 2:00PM
US Federal Reserve policy decision: 6:00PM


Interbank rates:

GBP/USD – 1.3641
GBP/EUR – 1.1761
EUR/USD – 1.1598
USD/CAD – 1.2398

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.