Saudi Arabia’s Supply Cut Drives Oil Prices to Soar at $95

Thank you for joining us. A recent survey from Lloyds has revealed that bosses are currently facing a significant decrease in demand, comparable to levels experienced during the pandemic and in the aftermath of the global financial crisis. This decline comes as businesses anticipate a potential 15th consecutive increase in interest rates by the Bank of England, expected to be announced on Thursday, bringing rates to 5.5%.

Here are 5 things to start your day:

1. ‘Sandwich generation’ paying for Britain’s inactivity crisis, says ex-Bank of England chief – According to former Bank of England chief, Andy Haldane, the middle-aged workforce is being burdened by the pressures of long-term sickness, as they are required to fund Britain’s inactivity crisis.
2. Cut taxes or electric car industry will suffer, ministers warned – Carmakers are attributing the declining demand for battery-powered vehicles to a lack of incentives, urging the government to reduce taxes to support the electric car industry.
3. Elon Musk brands Saudi Arabia Tesla factory claims ‘utterly false’ – Reports suggesting a potential Tesla factory in Saudi Arabia have been dismissed by Elon Musk, who labeled them as “utterly false.” Musk is currently exploring options for a new manufacturing site.
4. Sainsbury’s slaughters beef cattle months earlier as part of net zero ambitions – As part of their net zero goals, Sainsbury’s supermarket has implemented improved efficiency measures on farms, resulting in the earlier timing for beef cattle consumption.
5. British farmers are ‘struggling to survive’, warn celebrity chefs – Renowned chefs Rick Stein and Hugh Fearnley-Whittingstall have raised concerns about the survival of British farmers, emphasizing the challenges they currently face.

Here’s what happened overnight:

• Asian shares experienced a decline due to concerns surrounding the Chinese property sector, impacting markets from Hong Kong to Australia. In Japan, investors sold chip stocks following a holiday-extended weekend.
• Benchmark US Treasury yields remain near 16-year highs, and the dollar maintains its position close to six-month highs as traders anticipate rate decisions from the Federal Reserve, the Bank of Japan, and the Bank of England.
• Crude oil prices continue to rise as supply tightens, leading to worries about stagflation.
• MSCI’s broadest index of Asia-Pacific shares decreased by 0.3%.
• The Nikkei in Japan declined by 1.1% due to significant losses in chip-related stocks, including Tokyo Electron and Advantest.
• US markets closed slightly higher, with the S&P 500 edging up 0.1% and the Dow Jones Industrial Average and Nasdaq Composite showing minimal increases.