Business minister bids to calm crisis fears as UK gas prices soar

No cause for alarm now, says Kwasi Kwarteng as energy discussions are likened to early Covid crisis talks

The government was scrambling on Saturday night to reassure Britons that rising gas prices would not plunge the country into an energy crisis, as ministers held a series of emergency meetings with energy companies and regulators to establish whether the nation could keep the lights and central heating on this winter.

A senior industry insider likened the meetings held between the business secretary, Kwasi Kwarteng, and energy industry leaders to the early crisis talks held following the outbreak of Covid-19.

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Half-term holiday bookings expected to surge after England scraps amber list

Traffic-light system replaced, with foreign countries now listed as either ‘red’ or OK for travel

Half-term holiday bookings are expected to surge after ministers unveiled a simplification of Covid foreign travel rules, replacing the traffic-light system with a single red list and bringing in a laxer regime for tests.

But while MPs and some travel groups welcomed the new system, airlines voiced anger that fully vaccinated travellers returning to England will still have to take a test after they return, even if this will be changed to a cheaper lateral flow version.

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Rules on GM farming and cars to be top of UK bonfire of EU laws

Minister reveals plans to change laws inherited from EU, with rules on medical devices also in crosshairs

Rules on genetically modified farming, medical devices and vehicle standards will be top of a bonfire of laws inherited from the EU as the government seeks to change legislation automatically transferred to the UK after Brexit.

Thousands of laws and regulations are to be reviewed, modified or repealed under a new programme aimed at cementing the UK’s independence and “Brexit opportunities”, David Frost has announced.

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Ryanair plans to carry 225m passengers by 2026 in Covid rebound

Airline has also said it will create 5,000 new jobs across Europe over five-year period

Ryanair has said itplans to fly an extra 25 million passengers a year by 2026, as the no-frills airline tries to take advantage of the industry’s slow recovery from the coronavirus pandemic.

The Irish airline said it hopes to carry 225 million passengers annually by March 2026, 25 million higher than its previous target of 200 million, as it prepared for its annual meeting in Dublin on Thursday.

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The end of furlough will lay bare Britain’s twin-speed recovery from Covid

Workers in depressed sectors or regions won’t be able to plug gaps in areas that have been quicker to recover, ministers are being warned

There are signs outside almost every pub, restaurant and hotel dotting Torquay’s harbour: Staff wanted.

“It’s been packed solid busy, you can’t get a table anywhere,” said Brett Powis, owner of three hotels in the area including the Riviera and Lincombe Hall. For the hotelier, staff shortages made it harder to take full advantage of the busiest summertime boom in the Devon resort for decades.

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Food fraud and counterfeit cotton: the detectives untangling the global supply chain

Amid the complex web of international trade, proving the authenticity of a product can be near-impossible. But one company is taking the search to the atomic level

Five years ago, the textile giant Welspun found itself mired in a scandal that hinged on a single word: “Egyptian”. At the time, Welspun was manufacturing more than 45m metres of cotton sheets every year – enough to tie a ribbon around the Earth and still have fabric left over for a giant bow. It supplied acres of bed linen to the likes of Walmart and Target, and among the most expensive were those advertised as “100% Egyptian cotton”. For decades, cotton from Egypt has claimed a reputation for being the world’s finest, its fibres so long and silky that it can be spun into soft, luxurious cloth. In Welpsun’s label, the word “Egyptian” was a boast and a promise.

But the label couldn’t always be trusted, it turned out. In 2016, Target carried out an internal investigation that led to a startling discovery: roughly 750,000 of its Welspun “Egyptian cotton” sheets and pillowcases were made with an inferior kind of cotton that didn’t come from Egypt at all. After Target offered its customers refunds and ended its relationship with Welspun, the effects rippled through the industry. Other retailers, checking their bed linen, also found Welspun sheets falsely claiming to be Egyptian cotton. Walmart, which was sued by shoppers who had bought Welspun’s “Egyptian cotton” products, refused to stock Welspun sheets any more. A week after Target made its discoveries public, Welspun had lost more than $700m from its market value. It was cataclysmic for the company.

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Fire shuts one of UK’s most important power cables in midst of supply crunch

Coal plants being warmed up as market prices surge to £2,500 per MWh from a norm of £40

A major fire has forced the shutdown of one of Britain’s most important power cables importing electricity from France as the UK faces a supply crunch and record high market prices.

National Grid was forced to evacuate staff from the site of the IFA high-voltage power cable, which brings electricity from France to a converter station in Kent, where 12 fire engines attended the blaze in the early hours of Wednesday morning.

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China property giant Evergrande admits debt crisis as protesters besiege HQ

Disgruntled investors voice anger at headquarters as company appoints advisers and says firesale of assets won’t cover debts

Property giant China Evergrande Group has said that it cannot sell properties and other assets fast enough to service its massive $300bn debts, and that its cashflow was under “tremendous pressure”.

Only hours after angry investors besieged its Shenzhen headquarters and the company denied it was set for bankruptcy, Evergrande issued a statement to the Hong Kong stock exchange saying that a significant drop in sales would continue this month, which was likely to further deteriorate its liquidity and cash flow.

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Stock market correction of 5%-10% ‘likely before year end’; US inflation expectations rise – as it happened

Rolling coverage of the latest economic and financial news

Earlier:

Time to wrap up....

Here’s today’s main stories:

Related: Alibaba shares plunge as Beijing ‘seeks to break up Ant’s Alipay’

Related: Stock market pullback likely by year end, Deutsche Bank survey finds

Related: Evergrande investors face 75% hit as company edges closer to restructure

Related: UK cancels Covid vaccine deal with French firm Valneva

Related: Higher taxes could leave low-paid frontline workers £1,000 worse off

Related: EU Brexit controls are pointless bureaucracy, says M&S chairman

Related: Brexit trade barriers added £600m in costs to UK importers this year

Related: Primark hit by ‘pingdemic’ but it says supply crisis won’t lead to shortages

Related: West End theatres bank on staging a revival with big-budget productions

Related: All Sainsbury’s stores to stay shut on Boxing Day as a ‘thank you’ to staff

Related: UK to offer £265m in subsidies for renewable energy developers

European stock markets have shrugged off growth fears and talk of a stock market pullback, to end the day higher.

In London, the FTSE 100 gained 39 points or 0.55% to end at 7068 points. Royal Mail (+3%), Lloyds Banking Group (+2.8%), and hedge fund management group Pershing Square (+2.6%) led the risers.

Spain's Ibex up 1.3%. German Dax up 0.6%
The major European indices are ending the day with gains across the board:

German DAX, +0.56%
France's CAC, +0.2%
UK's FTSE 100, +0.55%
Spain's Ibex, +1.3%
Italy's FTSE MIB, +0.9%
In other markets as European/London traders look to exit:

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Algebra: the maths working to solve the UK’s supply chain crisis

The calculations behind filling supermarket shelves are dizzyingly complex – but it all starts with the x and y you know from school

Nando’s put it succinctly on its Twitter feed last month: “The UK supply chain is having a bit of a mare right now.” Getting things on to supermarket shelves, through your letterbox or into a restaurant kitchen has certainly become problematic of late. It’s hard to know exactly where to pin the blame, though Covid and Brexit have surely played a part. What we can do is give thanks for algebra, because things would be so much worse without it.

It’s likely that you have mixed feelings about algebra. Even if you could knuckle down and manage it in school, you probably wondered why it was important to solve an equation involving x raised to the power of 2 or why you should want to find a and b when a + b = 3 and 2a – b = 12. You might even feel that your scepticism has been vindicated: the chances are that you have never done algebra in your post-school life. But that doesn’t mean that the jumble of letters, numbers and missing things that we call algebra is useless. Whether it’s supermarket groceries, a new TV or a parcel from Aunt Emily, they all reach your home through some attempt to solve an equation and find the missing number. Algebra is the maths that delivers.

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US restaurant workers are getting stiffed. It’s time for employers to pay up | Gene Marks

The tipped wage scale allows restaurants to pay workers less than the legal minimum wage. Some unscrupulous owners nevertheless try to get away with paying even less

This may come as a shock to some but there’s a different minimum wage for restaurant employees than for workers in most other industries. In Pennsylvania, for example, that minimum wage is just $2.83 an hour.

Every statein the US has these “tipped wages”. According to minimumwage.org, the tipped wage is as little as $2.13 an hour in 19 states and as high as $10 in New York.

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Norway votes – but is Europe’s biggest oil giant ready to go green?

The Scandinavian country faces a crisis of conscience on the eve of elections

Norway goes to the polls on Monday in parliamentary elections that are forcing western Europe’s largest oil and gas producer to confront its environmental contradictions.

Climate issues have dominated the campaigning since August, when the UN’s Intergovernmental Panel on Climate Change published its starkest warning yet that global heating is dangerously close to spiralling out of control.

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Apple still reliant on one core product as it nudges $3tn hurdle

The iPhone maker may be set to break market records, but it’s starting to look more and more like a one-gadget pony

If Apple is to become the world’s first three-trillion-dollar company, the iPhone will play a key role in that feat. The tech firm unveils the latest iteration of its signature product on Tuesday, and the success of the iPhone 13 will determine how quickly Apple goes from its current market capitalisation of just under $2.5tn (£1.8tn) to $3tn.

“We believe Apple is on a trajectory to hit $3tn by early 2022 and the iPhone 13 will be a lynchpin of growth,” says Dan Ives of investment firm Wedbush Securities.

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The Taliban are not the only threat to Afghanistan. Aid cuts could undo 20 years of progress

The most vulnerable people will bear the cost of sanctions, as services and the economy collapse

Watching Afghanistan’s unfolding trauma, I’ve thought a lot about Mumtaz Ahmed, a young teacher I met a few years ago. Her family fled Kabul during Taliban rule in the late 1990s.

Raised as a refugee in Pakistan, Ahmed had defied the odds and made it to university. Now, she was back in Afghanistan teaching maths in a rural girls’ school. “I came back because I believe in education and I love my country,” she told me. “These girls have a right to learn – without education, Afghanistan has no future.”

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Revealed: Google illegally underpaid thousands of workers across dozens of countries

Documents show company dragged feet to correct disparity after learning it was failing to comply with laws in UK, Europe and Asia

Google has been illegally underpaying thousands of temporary workers in dozens of countries and delayed correcting the pay rates for more than two years as it attempted to cover up the problem, the Guardian can reveal.

Google executives have been aware since at least May 2019 that the company was failing to comply with local laws in the UK, Europe and Asia that mandate temporary workers be paid equal rates to full-time employees performing similar work, internal Google documents and emails reviewed by the Guardian show.

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Climate impact of a transatlantic flight could cost global economy $3,000

Economic cost of climate crisis has cut 37% from global GDP this century, say researchers

A return flight from the UK to New York could cost the global economy more than $3,000 (£2,170) in the long run, owing to the effects of the climate crisis, according to a report.

Researchers examined the economic cost of the climate crisis and found it would cut about 37% from global GDP this century, more than twice the drop experienced in the Great Depression.

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UK workers on returning to the office: ‘No point if I end up doing video calls’

Some welcome the routine, while others are concerned about how it will work without everyone in at the same time

Workers in the UK have gradually been returning to offices in recent weeks, after the lifting of coronavirus restrictions. While many firms have adopted a flexible arrangement that combines remote and office work each week, many others have called their employees back full time.

For some, it is a welcome return to normality, but others have raised concerns about their health and working conditions.

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Europe’s top 25 banks failing on green pledges, campaigners warn

ShareAction says lack of plans to tackle climate crisis and biodiversity loss casts doubts on banking’s sustainability pledges

Europe’s 25 largest banks are still failing to present comprehensive plans that address both the climate crisis and biodiversity loss, putting their sustainability pledges in doubt, campaigners have warned.

While some lenders such as NatWest are demonstrating leadership on specific issues – such as net zero targets and policies restricting financing for new fossil fuel – research by investment campaign group ShareAction found none of the banks it reviewed were taking action across all key areas.

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European banks storing €20bn a year in tax havens

Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities

Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.

The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.

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The six problems aviation must fix to hit net zero

With passenger numbers growing and time to slash emissions dwindling fast, the industry must tackle urgent stumbling blocks on fuel, frequent flyers and more

Aviation tanked in 2020. The number of people taking flights fell by three quarters compared with 2019 levels and as a result there was a significant drop in greenhouse gas emissions from aviation. But as countries open up and people begin to fly again, aviation is expected to see a slow climb back to previous levels. The industry anticipates a return to 2019 passenger numbers globally by 2023 and to be back on track with previous growth projections within a couple of decades.

All this is bad news for the planet. CO2 emissions from the industry are likely to triple by 2050. But if the world is to limit global heating to 1.5C, it needs to have hit net zero CO2 emissions by this time. Aviation is a complicated sector to decarbonise. It has some prickly ingredients: difficult technological solutions, hidden extra climate effects, an association with personal freedoms and a disproportionately wealthy and powerful customer base. Here are just a few of the big hurdles the sector will need to overcome if it is ever to be carbon neutral.

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