Bank of England's Bailey says rise in borrowing costs is not just a UK issue
"We have seen steepening of yield curves going on now," Bailey told lawmakers on parliament's Treasury Committee.
"I think the important thing to say is that is a global phenomenon. It's not in any sense unique to this country. In fact, the pattern in this country is not in any sense out of line with what we've seen in other markets, and we've seen steeper increases in some other markets."
Rising borrowing costs were being driven by concerns about the impact on global trade from trade policy decisions and uncertainty about fiscal policy, he said.
U.S. President Donald Trump has imposed tariffs on imports of many goods and has also won approval in Congress for tax cuts that are forecast to push up U.S. public debt.
Bailey was speaking to the Treasury Committee alongside other members of the BoE's Financial Policy Committee.
Randall Kroszner, a former U.S. Federal Reserve official who is a member of the FPC, said he saw no clash between financial stability and a relaxation of regulations announced by finance minister Rachel Reeves.
"But always the devil is in the detail," Kroszner said.
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Reuters
14 minutes ago
- Reuters
Russian energy export disruptions since start of Ukraine war
Aug 15 (Reuters) - When U.S. President Donald Trump meets Russian President Vladimir Putin on Friday, one of his bargaining chips to encourage Putin to make progress toward a ceasefire in Ukraine will be to ease U.S. sanctions on Russia's energy industry and exports. Trump has also threatened tougher sanctions if there is no progress. Here is how sanctions have impacted Russian energy exports since the start of the conflict. Russia was the top supplier of natural gas to Europe before the war. Most gas travelled through four pipeline routes: Nord Stream running under the Baltic Sea, the Yamal line crossing Poland, transit via Ukraine, and the Turkstream line. Europe also imports Russian liquefied natural gas (LNG). In 2021, total Russian gas imports to the EU totalled 150 billion cubic metres (bcm) per year, or 45% of its total imports, and have fallen to 52 bcm or 19% since, according to the European Commission. While the EU has not imposed sanctions on Russian pipeline gas imports, contract disputes and damage to Nord Stream caused by an explosion, have cut supplies. As part of a fresh round of sanctions announced in July, the European Union has now banned transactions including any provision of goods or services related to Nord Stream, which albeit damaged could be revived as a gas supply route. Transit via Ukraine ended at the end of 2024, leaving just Turkstream as a functioning route for Russian pipeline gas to Europe. The European Commission has also proposed a legally binding ban on EU imports of Russian gas and LNG by the end of 2027, but this has not been passed into legislation yet. The U.S. in 2024 imposed sanctions on companies supporting the development of Russia's Arctic LNG 2 project, which would become Russia's largest plant with an eventual output of 19.8 million metric tons per year. The U.S., UK, and EU all prohibited the import of seaborne crude oil and refined petroleum products from Russia during the first year of the war in Ukraine. In addition to the embargoes, the G7 group of countries (including the US, UK, and EU) imposed a price cap on Russian seaborne crude oil for third countries at $60 per barrel in December 2022, and a cap on fuels the following February. The EU and UK altered the crude price cap level in June 2025 to $47.60, or 15% below the average market price, but the U.S. did not back the move. The price cap aims to reduce Russia's revenues from oil sales by prohibiting shipping, insurance and reinsurance companies from handling tankers carrying crude traded above the cap level. Western powers have also imposed sanctions on more than 440 tankers belonging to the so-called shadow fleet that transports sanctioned oil outside of Western services and the price cap. Russia's leading shipper Sovcomflot is also under sanctions in the West. The U.S. has also sanctioned major Russian oil companies including Gazprom Neft ( opens new tab and Surgutneftegaz ( opens new tab. The measures banning Russian oil imports in the west and restricting Russian oil trade elsewhere have redirected Russian oil flows towards Asia, with China, India, and Turkey emerging as the major buyers for Russian crude. The price cap was meant to keep Russian oil flowing to prevent a spike in global oil prices which would have followed a halt or severe drop in Russian exports. Trump has, however, signalled a change in policy in recent weeks by threatening to impose secondary sanctions on India and China for buying Russian oil to put pressure on Putin to agree to a ceasefire in Ukraine. The European Union banned imports of Russian coal in 2022, seeing volumes drop from 50 million metric tonnes in 2021 to zero by 2023, according to data from Eurostat.
BreakingNews.ie
14 minutes ago
- BreakingNews.ie
Dublin City Council refuse planning retention to 10 apartment Airbnb operator
Dublin City Council has refused planning retention to a significant Airbnb operator close to Dublin Castle and Temple Bar to continue offering its apartments for short-term letting to tourists. Dublin Castle Suites advertises its 10 apartments on the Airbnb platform and can earn up to €350 per night per apartment on busy weekends. Advertisement The owner of the apartments facing onto Parliament Street and Dame Street would earn only a fraction of its current rental income if the apartments are to be rented for long-term letting only. A question mark has now been put over the lucrative enterprise following the City Council's decision to refuse planning retention to allow the apartments to continue to be used for short-term letting. Applicants, Olympia Real Estate Limited, now have the option of appealing the decision to An Coimisiún Pleanála, which may reverse the council's planning refusal. However, in its decision, the city council pointed out that there is a general presumption in the Dublin City Council Development Plan against the provision of dedicated short-term tourist rental accommodation in the city due to the impact on the availability of housing stock. Advertisement In refusing planning permission, the Council stated that Olympia Real Estate Ltd has not provided a sufficient justification for the provision of short-lease apartments at this location. The Council found that the proposal to continue the apartments for short-term letting 'would create an undesirable precedent for similar type development and would devalue property in the vicinity'. The planners concluded that the proposed retention of short-term residential use is not compatible with the architectural character, historic fabric and special interests of the protected structure. The Council planning report which recommended a refusal concluded that the continued use of the apartments for tourist accommodation 'would result in existing residential stock being lost to the residential housing system, meaning less long-term and secure accommodation will be available to the growing number of families and people who need it'. Advertisement Olympia Real Estate Limited lodged the planning application after the Council issued it with a Warning Letter over the use of the apartments for short-term letting. Planning consultants for the applicants, Cunnane Stratton Reynolds (CSR) state that 'enabling housing as short-term let accommodation in this instance redirects such demand away from mainstream housing'. The consultants state that 'the proposed tourism accommodation will assist in the attractiveness of the area for tourists and will promote a continued busy and vibrant city centre'. CSR states that its client's ability to acoustically meet the standards of normal accommodation is not available, given the protected status of the subject premises. Advertisement They state, 'in a period of substantial housing crisis these units cannot remain vacant'. Objecting to the planned retention, Fiachra Brennan of Oakcourt Park, Dublin 20 and who works on Parliament Street, said that 'these are high-quality urban apartments which should be available on the long-term rental market'. He said: 'The applicant has pointed to issues with regards to soundproofing and insulation – this should not preclude the use of the property for its intended purpose. He added: 'I work on Parliament Street – it is a vibrant area with a range of commercial and hospitality businesses but is also an important urban, residential city neighbourhood. This status should be protected.'
North Wales Chronicle
23 minutes ago
- North Wales Chronicle
Bioethanol plant deems lack of Government support an ‘act of economic self-harm'
Vivergo Fuels, near Hull, warned earlier this year that it was in imminent danger of closure as crisis talks continued with the Government. This followed the end of the 19% tariff on American bioethanol imports as part of the recent UK-US trade deal. On Friday, the Government said: 'This Government will always take decisions in the national interest. 'That's why we negotiated a landmark deal with the US which protected hundreds of thousands of jobs in sectors like auto and aerospace. 'We have worked closely with the companies since June to understand the financial challenges they have faced over the past decade, and have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces. 'We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process. 'We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector.' Ben Hackett, managing director of Vivergo Fuels, said: 'The Government's failure to back Vivergo has forced us to cease operations and move to closure immediately. 'This is a flagrant act of economic self-harm that will have far-reaching consequences. 'This is a massive blow to Hull and the Humber. 'We have fought from day one to support our workers and we are truly sorry that this is not the outcome any of us wanted. 'This decision by ministers will have a huge impact on our region and the thousands of livelihoods in the supply chain that rely on Vivergo, from farmers to hauliers and engineers.' Mr Hackett said the industry has faced 'unfair regulations' for years that favoured overseas producers, and the recent US-UK trade deal pushed the sector 'to the point of collapse'. He said: 'We did everything we possibly could to avoid closure, but in the end it was the Government that decided the British bioethanol sector was something that could be traded away with little regard for the impact it would have on ordinary hard-working people. 'We did not go down without a fight and I hope that the noise we generated over the past three months will make the Government think twice before it decides to sign away whole industries as part of future trade negotiations.' A spokesman for Associated British Foods, which owns Vivergo, said: 'It is deeply regrettable that the Government has chosen not to support a key national asset. 'We have been left with no choice but to announce the closure of Vivergo and we have informed our people. 'We have been fighting for months to keep this plant open. 'We initiated and led talks with Government in good faith. We presented a clear plan to restore Vivergo to profitability within two years under policy levers already aligned with the Government's own green industrial strategy.' The spokesman said the Government had 'thrown away billions in potential growth in the Humber and a sovereign capability in clean fuels that had the chance to lead the world'. The bioethanol industry, which also includes the Ensus plant on Teesside, has argued the trade deal, coupled with regulatory constraints, has made it impossible to compete with heavily subsidised American products. Vivergo said the Hull plant, which employs about 160 people, can produce up to 420 million litres of bioethanol from wheat sourced from thousands of UK farms. It has described bioethanol production as 'a key national strategic asset' which helps reduce emissions from petrol and is expected to be a key component in sustainable aircraft fuel in the future. The firm recently signed a £1.25 billion memorandum of understanding with Meld Energy to anchor a 'world-class' sustainable aviation fuel facility at the site. But Meld Energy said earlier this month uncertainly over the bioethanol industry was putting this plan in jeopardy. The Vivergo plant is also the UK's largest single production site for animal feed, and the company says it indirectly supports about 4,000 jobs in the Humber and Lincolnshire region. Vivergo has said it buys more than a million tonnes of British wheat each year from more than 4,000 farms, and has purchased from 12,000 individual farms over the past decade. But it took its last wheat shipment earlier this month. The farmers' union described the imminent closure of the Vivergo plant as a 'huge blow'. NFU combinable crops board chairman Jamie Burrows said: 'Not only is it terrible news for those hundreds of workers who will lose their jobs but also for the thousands of people whose livelihoods depend on this supply chain – that includes local farmers who have lost a vital market for their product.' The Ensus plant in Teesside differs from the Vivergo operation because it also produces CO2 as part of the process. Ensus, which is owned by CropEnergies, part of the German firm Sudzucker, is the UK's only large scale manufacturer of CO2, which is used in a wide range of sectors, including in drinks and the nuclear industry. Grant Pearson, chairman of Ensus UK, said on Friday: 'I met with Sarah Jones, the minister for business, today, to receive the Government's response to our request for financial support and the policy changes required to ensure that the Ensus facilities can continue to operate. 'The minister confirmed that they value both our contribution to the UK economy, the jobs we provide and support in the north east of England and in particular our production of biogenic CO2 which is a product of critical national importance. 'They are therefore looking at options to secure an ongoing supply of CO2 from the Ensus facility. 'This is positive news, however it is likely to take time to agree upon and finalise and therefore urgent discussions will be taking place to provide a level of assurance to the Sudzucker and CropEnergies' boards that there is a very high level of confidence that an acceptable long-term arrangement can be reached.'
