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Rishi Sunak’s £10bn donation risks fueling inflation, IFS warns Business

ggood morning.

The IFS has sounded the alarm over Rishi Sunak’s plans to help UK households pay their energy bills.

Paul Johnson, director of the IFS, said extra support for the UK’s poorest households was “much needed” as energy bills continue to rise.

But he said blanket aid – which could cost around £10billion – meant the money would go to people who “don’t need it desperately” and could drive up inflation further.

The Chancellor is expected to unveil plans to ease household energy bills, which will be partly funded by a one-off tax on energy giants.

5 things to start your day

1) The government will intervene in the Chinese bid for the chip giant: Kwasi Kwarteng has ordered a detailed security review of the Chinese-backed takeover of Britain’s biggest microchip factory in the clearest sign yet that the deal will stall.

2) Britain is planning a rival summit in Davos to woo the international elite: The government is in the early stages of organizing the summit which is expected to be launched in autumn 2023 after Davos was shunned by many political and business leaders this year.

3) Volkswagen to give UK drivers £2,000 for ‘dieselgate’ scandal: The German carmaker will pay £193million after settling a five-year legal battle over the use of illegal software in its cars to manipulate pollution data during testing.

4) China must destroy Elon Musk’s satellites with a ‘hard kill’ weapon, scholars say: Researchers from the Beijing Institute of Telecommunications Tracking and Technology have called Starlink a threat to China’s national security because of its “huge potential for military applications”.

5) Oligarch Alexander Lebedev cuts ties with Independent after sanctions were applied: The billionaire was hit with an assets freeze and visa ban last Friday due to his ties to the Kremlin, while Vladimir Putin continues to wage war on Ukraine.

What happened overnight

Asian stock markets fell after minutes from the Federal Reserve’s early May meeting showed a majority backed half-percentage-point rate hikes in June and July, and lingering concerns about global growth undermined confidence.

MSCI’s broadest index of Asia-Pacific stocks outside Japan was dragged down 0.5% after trading higher early in the morning.

Chinese blue chips fell 1.1pc despite a further drop in Covid cases, where lockdowns threaten to undermine recent economic support measures.

coming today

Business : Johnson Matthey, Auto Trader, United Utilities (annual results); DP Eurasia, Kingfisher (commercial statement)

Economy: GDP (WE)Initial jobless claims (WE)

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Source: www.telegraph.co.uk
This notice was published: 2022-05-26 06:54:56

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