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UK profit warnings higher than in 2008 crisis; oil rises as Middle East tensions escalate
Live  
UK profit warnings higher than in 2008 crisis; oil rises as Middle East tensions escalate
Rolling coverage of the latest economic and financial news
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Evergrande  
Hong Kong court orders liquidation of China property giant
Hong Kong court orders liquidation of China property giant
Rail industry  
Train drivers will keep striking to ‘raise profile’ of pay dispute, says Aslef boss
Politics  
Iceland supermarket boss and ex-Tory donor backs Starmer for PM
Exclusive  
Tata Steel ‘open to more UK investment’ despite Port Talbot job cuts
Manufacturing  
Welsh semiconductor factory ‘left in limbo’ as Westminster fails to approve US takeover
Post Office  
Minister hints at wider shake-up after departure of chair
Jeremy Hunt  
Chancellor considers further national insurance cut to take heat off Rishi Sunak
Exclusive  
Angela Rayner: Tories’ council fund is cynical pre-election sticking plaster
Energy  
Millions of households in England ‘will still be in fuel poverty by end of decade’
Gambling  
FanDuel owner Flutter to list in New York amid US boom
TfL  
Off-peak tube and rail fare trial to start on Fridays in London
Today's agenda
High interest rates and weakening confidence have been blamed for pushing more UK companies into issuing profit warnings.

New data from EY-Parthenon this morning show that over 18% of public firms issued warnings in 2023, which is a higher proportion than at the peak of the financial crisis in 2008.

In total, 294 profit warnings were issued by businesses in 2023, which is a slight drop on the 305 in 2022 – highlighting how tough the last two years have been for companies.

More than a quarter of warnings (26%) in 2023 were attributed to delayed contracts or decisions, 19% were due to increased costs and a further 19% cited the impact of higher interest rates.

The survey showed that profit warnings blamed on rising costs fell through the year, but there was an increase in warnings blamed on corporate spending delays and higher borrowing costs.

During 2023, 39 listed companies issued their third or more consecutive profit warning in 12 months.

Firms issuing profit warnings in 2023 included online shopping group THG, which blamed delivery disruption, contract delays and falling sales at one division, Kingfisher, the owner of B&Q and Screwfix, and drinks giant Diageo, while shoemaker Dr Martens racked up four profit warnings in the year.

Meanwhile, the oil price has rallied this morning after a missile attack by Houthi rebels on a fuel tanker in the Red Sea on Friday.

The energy markets are also on edge after three US soldiers were killed in a drone attack on a US service base on the border of Jordan and Syria.

Brent crude jumped 1.5% to $84.80 a barrel, the highest since early November, before slipping back to $83.73 a barrel.

The attack on on oil tanker operated by commodities group Trafigura has bolstered fears of supply disruption. Trafigura says it is assessing the security risks of further Red Sea voyages while the UK government has said Britain and its allies “reserve the right to respond appropriately”.

These developments have left investors fretting that the ongoing conflict between Israel and Hamas could escalate into a more significant regional and international crisis.

Also coming up
• 7am GMT: Sweden’s GDP report for Q4 2023
• 10am GMT: Belgium’s GDP report for Q4 2023
• 3.30pm GMT: Dallas Fed Manufacturing Index for January

We’ll be tracking all the main events throughout the day ...
Opinion
Governments facing wipeout will always cut taxes but there are better uses for UK’s £20bn windfall
Larry Elliott
Governments facing wipeout will always cut taxes but there are better uses for UK’s £20bn windfall
Britain needs sound leadership after years of chaos. That’s why I quit the Tories – and now back Labour
Richard Walker
To get to net zero, we may have to sell off the UK’s future
Phillip Inman
Healthy competition is good for keeping wages up, as well as prices down
Torsten Bell
Economics  
What state are government finances in and what legacy is Reeves likely to inherit?
Analysis  
After the latest Max crisis, Boeing must focus on flight, not finance
Media
Channel 4  
Broadcaster set to announce plan to axe almost 250 jobs
Broadcaster set to announce plan to axe almost 250 jobs
X  
Taylor Swift searches blocked after fake explicit images of pop singer spread
Spotlight
What are the cost pressures facing English councils?
Social care to homelessness  
What are the cost pressures facing English councils?
A decade of cuts has reduced local authorities’ ability to deal with key long-term issues, from child protection to an ageing society
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