9.22am: UK needs to cut business energy costs, says CBI<\/p>\n
The CBI and Energy UK have urged the incoming Prime Minister to make cutting business energy bills an immediate priority, arguing it could unlock an extra \u00a3130 billion of economic activity by 2050.<\/p>\n
Backed by analysis from Cornwall Insight and the National Institute of Economic and Social Research, the report said UK companies were being held back by electricity prices that are 45% above the G7 average.<\/p>\n
They warned that high energy costs were undermining investment and competitiveness, with four in ten businesses cutting investment because of energy bills.<\/p>\n
Existing support schemes are also too narrowly targeted, they said, leaving 2.7 million businesses facing higher electricity costs.<\/p>\n
The report calls for the removal of Renewables Obligation and Feed-in Tariff costs from business electricity bills, alongside reform of the Climate Change Levy, which could cut business energy costs by up to 20%, depending on the type of company.<\/p>\n
The organisations also want reforms to reduce wider system costs and new incentives to encourage businesses to electrify.<\/p>\n
CBI chief economist Louise Hellem said: “With a new Prime Minister coming into office, it\u2019s clear that reducing business energy costs must be a day-one priority. If we want to tackle the cost of living and invest in public services, we need stronger economic growth \u2013 and that can\u2019t happen while firms are navigating sky-high energy bills.<\/p>\n
“Reliable, affordable energy is essential for all businesses. That starts by removing policy costs from bills, reforming our energy system and shaping the market to make electrification more practical and affordable.”<\/p>\n
Energy UK chief executive Dhara Vyas said: “The UK cannot afford to let high energy costs continue to damage business investment, reduce our international competitiveness, and worsen the cost-of-living crisis.”<\/p>\n
\t\t\t\t\t8.42am:\u00a0AstraZeneca sinks to 8-month low<\/p>\n
AstraZeneca shares have fallen for the third day in a row, reaching their lowest since November.\u00a0<\/p>\n
There is some news\u00a0out today but it doesn’t seem to have improved the mood for investors, with the Anglo-Swedish drugmaker agreeing to pay $600 million upfront to secure worldwide rights to a lung cancer pill<\/a> developed by China’s Dizal Pharmaceutical.<\/p>\n A\u00a0further $900 million could also be paid if the treatment hits certain development, regulatory and sales targets.<\/p>\n 8.15am: Travel stocks lead FTSE 100 to open lower<\/p>\n The FTSE 100 has slipped lower in early trades, down eight points at\u00a010,490.<\/p>\n Travel stocks are the worst hit by the latest surge in oil prices, with Holiday Inn owner IHG, British Airways parent IAG and Premier Inn operator Whitbread among the leading fallers, down between 3% and 1.7%. Engine maker Rolls-Royce is down over 1% too.\u00a0<\/p>\n Retailers and housebuilders are also down, with JD Sports, M&S, Barratt Redrow and Persimmon falling 1.3% or more.\u00a0\u00a0<\/p>\n On the other side of the coin, BP is the top riser again, up 2.6% on higher oil prices and its earlier update, with other commodity names close behind.\u00a0<\/p>\n Fellow oil company Shell, British Gas owner Centrica, and a group of heavyweight miners are at the top end of the leaderboard: Glencore, Anglo American, Rio Tinto and Antofagasta.\u00a0\u00a0\u00a0<\/p>\n 7.59am:\u00a0Watches of Switzerland and Robert Walters<\/p>\n Two more sets of numbers before the trading gets underway.\u00a0<\/p>\n Watches of Switzerland delivered adjusted earnings at the top end of upgraded guidance<\/a> and backed its outlook for another year of growth, as the luxury watch retailer published annual results a day after reports it had attracted takeover interest.<\/p>\n And recruiter Robert Walters reported lower fees for the first half of the year, in line with expectations, as improving hiring conditions in several key markets<\/a> helped offset continued weakness in continental Europe.<\/p>\n 7.45am: BP cuts debt<\/p>\n