Biden bans new offshore oil and fuel drilling in most US coastal waters – enterprise reside

Environmental campaigners hailed the outgoing president’s motion, saying new oil and fuel drilling should be sharply curtailed to scale back greenhouse fuel emissions that contribute to international warming. 2024 was the most popular 12 months on document.

Joseph Gordon, marketing campaign director for the environmental group Oceana, stated:

That is an epic ocean victory!

He thanked Joe Biden “for listening to the voices from coastal communities” that oppose drilling and “contributing to the bipartisan custom of defending our coasts”.

A spokeswoman for Trump mocked Biden, saying: “Joe Biden clearly desires excessive fuel costs to be his legacy.”

The spokeswoman, Karoline Leavitt, referred to as Biden’s motion

a disgraceful resolution designed to actual political revenge on the American individuals who gave President Trump a mandate to extend drilling and decrease fuel costs. Relaxation assured, Joe Biden will fail, and we are going to drill, child, drill.

Biden, whose resolution to approve the massive Willow oil undertaking in Alaska was strongly condemned by environmental teams, has beforehand restricted offshore drilling in different areas of Alaska and the Arctic Ocean.

Joe Biden is shifting to ban new offshore oil and fuel drilling in most US coastal waters, two weeks earlier than Donald Trump takes workplace, who has pledged to broaden offshore drilling.

In a last-ditch effort, Biden stated he’s utilizing authority beneath the federal Outer Continental Shelf Lands Act to guard offshore areas alongside the east and west coasts, the jap Gulf of Mexico and parts of Alaska’s Northern Bering Sea from future oil and pure fuel leasing.

Biden stated in a press release:

My resolution displays what coastal communities, companies and beachgoers have recognized for a very long time: that drilling off these coasts may trigger irreversible harm to locations we maintain expensive and is pointless to satisfy our nation’s vitality wants,”

Because the local weather disaster continues to threaten communities throughout the nation and we’re transitioning to a clear vitality economic system, now’s the time to guard these coasts for our kids and grandchildren.

Biden’s orders is not going to have an effect on massive swathes of the Gulf of Mexico, the place most US offshore drilling happens, however will shield coastlines alongside California, Florida and different states from future drilling. In whole, they are going to shield greater than 625m acres of federal waters.

The orders might be troublesome for Trump to unwind as a result of they’re prone to require an act of Congress to repeal.

Trump himself has a sophisticated historical past on offshore drilling. He signed a memorandum in 2020 directing the inside secretary to ban drilling within the waters off each Florida coasts, and off the coasts of Georgia and South Carolina till 2032.

This got here after Trump initially moved to vastly broaden offshore drilling, earlier than retreating amid widespread opposition in Florida and different coastal states.

This time spherical, Trump has vowed to determine what he calls American “vitality dominance” around the globe as he seeks to spice up US oil and fuel drilling and transfer away from Biden’s deal with local weather change.

Investor morale within the eurozone has fallen to the bottom stage in additional than a 12 months, with Germany a continued drag on the bloc.

The Sentix index for the eurozone dropped to -17.7 factors in January from 17.5 in December, the bottom since November 2023 – although not as dangerous because the -18 forecast by economists polled by Reuters.

“Within the eurozone, the financial engine is threatening to freeze up for the long-term,” the survey stated, including that Germany’s economic system “is hanging on to the eurozone like a lead weight”.

The survey of 1,121 traders confirmed expectations barely improved to -5.0 in January from -5.8 factors final month. However this was outweighed by the worsening view of the present scenario, which fell to -29.5 in January from -28.5 in December – marking the bottom stage since October 2022.

The survey additionally discovered that Germany – Europe’s largest economic system, which is holding a common election subsequent month – seems to be in recession and is unlikely to emerge from it any time quickly.

Separate PMI surveys confirmed an enchancment within the eurozone’s companies trade in December, however total enterprise output continued to say no.

In its month-to-month snapshot, Hamburg Industrial Financial institution stated the composite PMI output index, which includes manufacturing and companies, rose to 49.6 from 48.3 in November.

For the companies sector, the enterprise exercise index climbed to 51.6 from 49.5 in November, indicating a return to progress. The 50 mark divides growth from contraction.

The Excessive Velocity 1 line that carries Eurostar trains from London to the Channel Tunnel has been pressured by the regulator to chop the costs it expenses operators in a push to open up the path to extra firms.

The Workplace of Rail and Highway (ORR) stated it hoped the £5m annual reductions in what HS1 Restricted might cost these utilizing the road as much as 2030 will assist progress, “together with the introduction of recent operators”.

Eurostar operates the one worldwide prepare companies from Nice Britain, however two firms – Spanish rail agency Evolyn and the Dutch prepare startup Heuro – have stated they’re inquisitive about providing rival companies amid criticisms of the price of Eurostar. The operator of the Channel Tunnel, Getlink, stated a 12 months in the past that new direct high-speed prepare routes from London to Cologne, Frankfurt, Geneva and Zurich might be up and operating inside 5 years.

Any firm working a service on HS1 should pay expenses to entry the 109km line. Whereas the proprietor is a non-public firm, the quantity it could cost is regulated as a result of it holds a monopoly.

The ORR stated that HS1 wanted to chop its charges by 3.8% in contrast with what it had deliberate, together with decreasing expenses for renewing tracks and London St Pancras stations and decreasing upkeep prices.

It is a stark statistic: the chief executives of FTSE 100 firms can have made more cash in 2025 by noon on Monday than their common employee does in a complete 12 months, in accordance with the newest measure of inequality between bosses and their staff.

Median pay for FTSE 100 chief executives is £4.22m, 113 occasions the median full-time employee’s pay of £37,430, in accordance with the Excessive Pay Centre, a marketing campaign group. Which means UK bosses will exceed their staff’ annual pay inside 29 hours – or at about 11:30am on Monday, in the event that they began work straight after the brand new 12 months vacation.

Bosses will hit the milestone marginally faster this 12 months than final, when it was reached at 1pm on the third working day of the 12 months.

Employees’ pay did enhance considerably sooner over the 12 months, in accordance with figures disclosed by the businesses. Pay for bosses rose by 2.5%, towards 7% for staff. Nevertheless, bosses’ pay is at document ranges.

The annual research goals to focus on the massive disparity in pay for bosses and their employees, a spot that has grown greater in current many years, prompting requires motion from unions and a few politicians.

Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, stated:

The barrage of shocks to companies within the type of budgetary tax will increase, geopolitical tensions, and the election of tariff-supporting Mr. Trump continued to weigh on sentiment in December. After a downward revision from the Flash launch, the composite PMI now sits at a 14-month low…

We expect that the PMI ought to rise in 2025 because the finances delivers a lift to spending and progress. What’s extra, we predict that the autumn within the employment steadiness—probably the most notable transfer within the PMI’s balances because the finances — is overdone.

The fourth-quarter BCC survey, for example, revealed this morning factors to a much less extreme deterioration in job progress. Accelerating inflation and slowing progress, attributable to the chancellor’s payroll tax hikes leaves the financial coverage committee in a quandary. Charge setters highlighted the uncertainty over the outlook within the minutes of their final assembly and they’ll seemingly proceed to be cautious till the exhausting information resolve exactly how a lot progress is slowing and inflation is rising. We count on the MPC to chop charges 25 foundation factors in February after which twice extra this 12 months, in August and November.

Britain’s non-public sector barely expanded final month, in accordance with surveys, recording the bottom enterprise exercise since October 2023, as companies within the dominant companies laid off employees on the quickest fee since January 2021, when a Covid lockdown was in pressure.

The ultimate studying for the composite PMI (which incorporates manufacturing and companies), from S&P International, exhibits that the principle enterprise exercise index fell to 50.4 in December from 50.5 in November, the bottom since October 2023 and barely above the 50 mark that separates growth from contraction. It’s barely beneath the flash estimate of fifty.5.

The headline index for the companies sector rose to 51.1 in December from 50.8 in November, however was beneath the flash estimate of 51.4. Enter price pressures accelerated to an eight-month excessive, the survey confirmed.

Tim Moore, economics Director at S&P International Market Intelligence, stated:

The service sector ended final 12 months with solely a marginal upturn in enterprise exercise and a near-stalling of incoming new work. Survey respondents instructed that falling enterprise and shopper confidence, largely on account of worries about home financial prospects in 2025, had led to a substantial lack of progress momentum. Whereas most elements of the UK service economic system famous weak demand and cutbacks to shopper budgets, there remained pockets of robust progress in areas corresponding to know-how companies.

A post-Finances droop in enterprise optimism endured in December, with output progress expectations for the 12 months forward unchanged from November’s 23-month low. Issues concerning the impression of rising payroll prices, alongside a common unease concerning the local weather for enterprise funding, had been reported as the principle components weighing on prospects for progress in 2025.

Rising enter worth inflation added to the gloomy near-term outlook for service suppliers, with total price pressures reaching an eight-month excessive in December. Costs charged inflation in the meantime intensified on the finish of final 12 months and remained properly in extra of pre-pandemic tendencies.

Confronted with subdued demand and rises in employment prices, many companies companies scaled again their employees hiring and delayed backfilling roles in December. Almost one in 4 reported an total decline of their payroll numbers. Excluding the pandemic, this represented the steepest tempo of job shedding for greater than 15 years.

Aldi celebrates ‘greatest Christmas ever’ as gross sales high £1.6bn

Jasper Jolly

Aldi has reported its “greatest Christmas ever” after Britain’s fourth-biggest grocer stated it made gross sales of greater than £1.6bn within the 4 weeks to Christmas Eve, thanks partly to customers buying and selling as much as its premium vary.

The grocery store chain stated whole gross sales for the essential vacation interval elevated by 3.4% year-on-year, helped by a 12% improve in gross sales of its Specifically Chosen own-label merchandise.

The German-owned retailer’s annual gross sales progress was slower than the 8% it recorded throughout Christmas in 2023, but it surely was nonetheless a consecutive document 12 months for gross sales through the interval.

The final three months of the 12 months are recognized of because the “golden quarter” within the retail trade as households go on a spending spree for presents and meals. Aldi stated that Monday 23 December 2024 was its busiest ever buying and selling day, with 3 million clients visiting. Its earlier busiest day was Friday 22 December the 12 months earlier than.

It got here after its fellow German-owned rival, Lidl, additionally reported document Christmas gross sales of greater than £1bn. Lidl gross sales rose by 7% for the interval, albeit after it elevated its flooring house by 3%. The 2 German chains have modified British spending habits by emphasising decrease costs over in depth selection.

Man Gittins, chief government of Foxtons, echoed her feedback, and painted a optimistic outlook for the property sector.

He stated the property company chain’s under-offer gross sales pipeline is at its highest because the EU referendum in 2016.

I mirror a really comparable optimistic outlook on on the 12 months forward, notably while you have a look at the gross sales and lettings markets nonetheless recovering from what occurred with the Covid shock and the finances of 2022 the market, we all know for positive the gross sales market will probably be significantly higher in 2025 than it was in 2024.

Every time we see even, even a small rate of interest discount brings with it a wave of recent consumers with the ability to come again into the market. So we begin firstly of this 12 months with nice momentum. We’ve seen our beneath supply gross sales pipeline – that’s the variety of gross sales that we’ve positioned into solicitors fingers – the worth and the quantity of that pipeline is definitely at its highest fee because the EU referendum.

Nevertheless it’s not all doom and gloom.

The consultancy agency KPMG reckons the UK economic system will develop by 1.7% this 12 months, double the estimated fee for final 12 months.

Dame Irene Hays, the proprietor and chair of Hays Journey, Britain’s largest unbiased journey agent, can be upbeat. She instructed BBC radio 4’s Right now programme:

I don’t see much less confidence within the sector. The truth is, I do know it’s early days in January, however we had been up in 2024 by 18.4% and simply trying on the early begin we’ve needed to January, we’re up by 22% so there’s common confidence within the sector.

There’s an acknowledgement that there are further funds to be made when it comes to nationwide insurance coverage and nationwide dwelling wage. However we’ve been round for 45 years now, and now we have managed a enterprise by plenty of totally different administrations, and all we do is admittedly perceive the principles of the sport and attempt to play it higher than anyone else.

The British Chambers of Commerce’s Shevaun Haviland was on BBC radio 4’s Right now programme this morning, speaking concerning the newest enterprise survey, which confirmed that 55% of companies intend to place up their costs, as they face rising prices from greater nationwide insurance coverage expenses and the nationwide minimal wage, which each kick in in April.

Tax is now a document excessive concern. Solely half [of businesses] predict to extend their turnover and when prices go up, after all, at your entrance finish, there’s solely so many issues you are able to do, proper? There’s solely a lot cash within the financial institution. So are you going to consider placing up costs, which companies don’t actually wish to do, otherwise you’ve received to take that hit in your margin, which suggests you’ve gotten much less cash to speculate sooner or later. Otherwise you’ve received to take a look at your recruitment and your employees prices. So it’s actually, actually powerful.

She was requested whether or not enterprise confidence would return in the long term.

We’re fairly a powerful economic system… We’ve got unimaginable companies. They’re resilient, they’re revolutionary, however what they want is the precise assist, and that is simply extra price strain. And the federal government does have some methods coming down the observe. So in June, we count on to see the economic technique, commerce technique, a brand new infrastructure plan that’s good, however within the meantime, we have to see faster progress.

British medium-sized companies are gearing up for a difficult begin to 2025 amid provide chain pressures and rising prices, in accordance with one other enterprise survey, from the accounting and advisory agency BDO.

Greater than 1 / 4 (29%) of companies are grappling with important provide chain challenges, with delayed deliveries and stock shortages disrupting operations and affecting their means to satisfy buyer demand.

On high of this, companies fear about financial and geopolitical tensions, and the prospect of recent tariffs on worldwide commerce from Donald Trump, who turns into US president on 20 January.

Rising working prices are one other main problem, with 28% of firms concerning the rising monetary burden as their high concern going into the brand new 12 months. Nearly a 3rd, 32%, of mid-sized companies say they want further monetary assist – together with financial institution loans or authorities grants – to assist navigate the hurdles of 2025.

Even so, a lot of them are extra assured that they had been firstly of the last decade.

Almost half (49%) really feel they’re in a stronger place than earlier than the Covid-19 pandemic started in March 2020. That is mirrored of their funding intentions, with a mean of £4.6m earmarked by mid-sized firms over the following two to 5 years.

As a part of their funding plans, nearly half (47%) of firms need to combine AI into their provide chain operations to streamline processes, scale back errors and enhance total effectivity. Nearly 1 / 4 (23%) are planning to rent folks in particular roles to assist AI adoption.

Richard Austin, companion at BDO, stated:

Mid-sized companies have confronted a troublesome decade to this point however, regardless of ongoing provide chain challenges and elevated prices, they’re getting into 2025 in a stronger place and with robust intent to put money into future progress.

We’d like the federal government to throw its weight behind these formidable, resilient mid-sized companies. They’re the engine room of the economic system, using greater than eight million folks throughout the UK. They want a extra beneficial working surroundings, underpinned by coverage and taxation, that permits higher entry to capital and encourages ongoing funding in new applied sciences.

Right here is our full story on the autumn in UK enterprise confidence, as reported by the British Chambers of Commerce:

European inventory markets have opened greater, except for the FTSE 100 index in London, which is buying and selling some 20 factors decrease, down 0.2% at 8,205.

Germany’s Dax and Italy’s FTSE MiB are about 0.3% forward, whereas France’s CAC has gained almost 0.7%.

Richard Hunter, head of markets at interactive investor, stated:

Buyers lastly discovered their footing within the new 12 months, with markets snapping a five-day shedding streak as AI [artificial intelligence] resumed its mantle as a serious driver.

Microsoft introduced on Friday that it could be spending some $80bn on AI-enabled information centres this 12 months, which spilled over into the broader mega tech sector. Nvidia shares added nearly 5%, Tremendous Micro Laptop superior by 11%, with some energy additionally in proof within the likes of Amazon and Meta Platforms.

Nevertheless, heightened valuations signifies that markets will probably be liable to disappointments this 12 months. The benchmark S&P500 ended 2024 with a achieve of 23%, having posted an increase of 24% the earlier 12 months. For the Nasdaq the energy has been much more pronounced, with a spike of 29% final 12 months following on from a leap of 43% in 2023.

Within the meantime, US markets are topic to a different four-day buying and selling week as markets will probably be closed on Thursday in honour of former president Jimmy Carter, who died on the finish of December. On Friday, the primary acid check of the 12 months comes within the type of the discharge of the non-farm payrolls report, the place the present consensus is that 150000 jobs can have been added in December, after posting a achieve of 227000 in November.

Turning to Asia and the UK, he stated:

Asian markets had been decrease in a single day, failing to reply to feedback from the Japanese authorities that it could act to safe financial progress by wage will increase and funding. Equally, and regardless of a report indicating that China’s companies economic system grew on the quickest fee in a number of months, the overarching menace of elevated tariffs from the brand new US administration proceed to weigh. Sentiment was additional dented after president Joe Biden blocked an tried $15bn bid for US Metal Corp by Nippon Metal, additional ratcheting up geopolitical pressure.

Markets struggled to make any significant progress within the UK on the open, with Unilever and Rolls-Royce among the many early fallers after dealer downgrades, though for the latter the markdown made little distinction to a share worth which has risen by 89% over the past 12 months. On the flipside, there was some energy within the shares of Barratt Redrow after a dealer improve, the place a 23% decline within the worth within the final 12 months has mirrored disappointment throughout the sector as a complete that the anticipated restoration in housebuilders has didn’t materialise.

Extra on China.

The tightly managed yuan has weakened to its lowest stage in 16 months whereas China’s blue-chip inventory slipped, and has misplaced 4.1% to this point this 12 months. The forex has had a rocky experience, with two weeks to go till Donald Trump turns into US president. He has threatened large US tariffs on Chinese language imports.

Chinese language authorities have launched a lot of measures to assist the yuan, corresponding to swap and relending schemes totalling 800 billion yuan to shore up investor confidence. The specter of US tariffs together with worries about China’s sluggish financial restoration have triggered capital outflows.

The Individuals’s Financial institution of China may concern extra yuan payments in Hong Kong, state-owned information outlet Yicai reported on Monday. Monetary Information, a central financial institution publication, stated the PBOC has the instruments and the expertise to reply to the forex’s depreciation.

Charu Chanana, chief funding strategist at Denmark’s Saxo Financial institution, stated:

The choice to permit the yuan to weaken final week has heightened issues about capital outflows, additional dampening investor sentiment.

Stopping a pointy decline of the yuan will probably be essential for China’s restoration. Any tactical restoration this 12 months will want extra than simply stimulus measures, notably whether or not China can negotiate a take care of president-elect Trump.

The Shanghai and Shenzhen inventory exchanges have held conferences with overseas traders, to guarantee them they might proceed to open up China’s capital markets, the 2 bourses stated on Sunday evening.

Good morning, and welcome to our rolling protection of enterprise, the monetary markets and the world economic system.

Confidence amongst British companies has plummeted to the bottom ranges since ex-prime minister Liz Truss’s mini-budget in September 2022 following the autumn finances’s massive tax will increase.

A survey of almost 5,000 companies from the British Chambers of Commerce confirmed issues over taxation had been the very best since 2017, whereas confidence about gross sales over the following 12 months was the bottom since late 2022.

The BCC’s director common Shevaun Haviland stated:

The worrying reverberations of the finances are clear to see in our survey information. Companies confidence has slumped in a strain cooker of rising prices and taxes.

The chancellor, Rachel Reeves, introduced £40bn of tax rises on 30 October, with a giant burden on companies, who should pay greater social safety expenses from April, together with a better nationwide minimal wage.

Whereas the Financial institution of England estimates that greater public spending will briefly enhance progress subsequent 12 months, the tax rises are additionally anticipated to push up inflation barely.

The BCC stated 55% of companies plan to lift costs, up from 39% the quarter earlier than, whereas 24% intend to cut back funding, up from 18% beforehand.

Development within the UK economic system picked up within the first half of 2024 because it recovered from a shallow recession in late 2023, however flatlined within the third quarter. The Financial institution of England has forecast zero progress for the fourth quarter, and an growth of 1.5% in 2025.

In China, companies progress has risen to a seven-month peak, in accordance with a closely-watched survey.

The Caixin buying managers’ index (PMI) rose to 52.2 in December from 51.5 in November, signalling the strongest progress within the service sector since Might, as new orders accelerated, regardless of a contemporary fall in exports. Confidence remained upbeat regardless of greater price pressures.

Nevertheless, authorities are struggling to prop up the yuan, which has fallen to a 16-year low amid issues concerning the economic system and US tariffs.

Chinese language shares slipped on Monday, with the benchmark CSI 300 index down by 0.16%, because the nation’s two largest inventory exchanges stated they met overseas traders over the weekend.

The Shanghai and Shenzhen inventory exchanges each held weekend symposiums with overseas traders “to solicit opinions and options on the current A-share market scenario,” referring to shares from firms in mainland China that commerce on the 2 inventory exchanges.

The Shenzhen Composite index fell by almost 0.4% on Monday, whereas the SSE Composite (shares which can be traded on the Shanghai Inventory Alternate) edged 0.14% decrease.

The South Korean Kospi led features in Asia, rising by 2.3%, regardless of political turmoil within the nation. Police will contemplate arresting members of the presidential safety service in the event that they attempt to block investigators, in an try to execute an arrest warrant for impeached president Yoon Suk Yeol, in accordance with the Yonhap information company and Reuters.

The Agenda

• 9am GMT: Eurozone HCOB PMI composite and companies last for December

• 1pm GMT: Germany inflation for December

• 2.45pm GMT: US S&P International composite and companies PMIs last for December

• 3pm GMT: US Manufacturing unit Orders for November