Good morning.
Russian energy imports are back in focus this morning after France called on other European nations to support fresh sanctions.
Bruno Le Maire, France’s finance minister, said it was necessary “more than ever” to implement a ban on Russian oil, cutting off a key source of revenue for the Kremlin.
While the US and UK have already announced plans to phase out Russian oil, the EU has been more reluctant to move. The continent is heavily reliant on Russia’s energy, and largest economy Germany has resisted further sanctions.
It comes as the war moves into its second phase. Ukrainian President Volodymyr Zelensky warned Russia had its assault on the eastern Donbas region.
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5 things to start your day
1) Safety fears leave P&O Ferries facing ‘sky high’ insurance bill. The company’s safety performance is expected to be deemed “very low”, according to analysis of an official international database of inspections.
2) Rolls-Royce backs the ‘new Hawk’ fighter jet trainer. British-designed Aeralis aims to have a demonstrator ready by 2025.
3) Tesla forces Shanghai workers to sleep on the floor. Elon Musk’s Chinese factory using ‘closed loop’ system to restart production amid stringent Covid lockdown.
4) Zero-Covid lockdowns take their toll on China’s economy. Retail sales fell by 3.5pc last month in first fall for almost two years, while IMF warns debt explosion threatens global recovery.
5) Deloitte cashes in on government contracts as KPMG stands aside. Rival’s withdrawal from public sector work helps land consultant a £53m payday.
What happened overnight
Earlier in the Asian trading day, the S&P 500 e-minis were up by two per cent, while MSCI’s broadest index of Asia-Pacific shares outside Japan dropped by 0.5pc.
Australia’s S&P/ASX 200 rose by 0.66pc, as strong commodity prices lifted mining and energy stocks, and Japan’s Nikkei grew by 0.18pc.
Coming up today
Corporate: JTC (full-year results); Kainos Group, Petropavlovsk (trading statements)
Economics: Housing starts, building permits (US)