Energy crisis adds £100 to every bill, warns British Gas chief

That's all for today, thank you for following.

We'll be back tomorrow to bring you all the latest updates and excitement of the Budget.

An executive at TikTok, owned by Beijing-based ByteDance, said during a congressional hearing today that the social media app does not share information with the Chinese government and that it has taken steps to safeguard US data.

Senator Marsha Blackburn, the top Republican on the Senate Commerce Committee subcommittee that held the hearing, said she is concerned about TikTok's data collection, including audio and user location, and the potential for the Chinese government to gain access to the information.

"We do not share information with the Chinese government," said Michael Beckerman, TikTok's head of public policy for the Americas.

Mr Beckerman also said that outside researchers have found that TikTok has collected less data on users than its tech industry peers. He testified that TikTok's American user data is stored in the United States, with backups in Singapore.

Cold and flu season is worse this year than normal, figures from Lemsip and Nurofen maker Reckitt have suggested, as the company raised its sales forecasts, writes my colleague Hannah Boland.  

It reported like-for-like revenue growth of 3.3pc for the three months to September 30, boosted by a spike in sales in its hygiene unit. Analysts had been forecasting a dip in growth. 

Reckitt's chief executive, Laxman Narasimhan, said: "For cold and flu, it's early days in the season, but what we are seeing at this point in time is that [sales are] at levels which are higher than where we were in 2019."

Read the full story here. 

The FTSE 100 was up 54.80 to 7277.62 at the close today. 

The index rose for a third straight session, being boosted by consumer goods company Reckitt Benckiser after it lifted its sales forecast.

Meanwhile, Wall Street pushed into record territory as a host of tech firms prepared to announce their results.

The S&P 500 and Dow both powered to new intra-day highs as the opening bell rang after having closed at record levels on Monday.

President Joe Biden will discuss energy prices and supply chain issues during his trip to Europe this week to attend a meeting of G20 leaders, U.S. national security adviser Jake Sullivan said today.

Mr Biden will also attempt to make progress on a global minimum corporation tax during his trip.

"He'll be laser focused on supply chains and energy prices because he knows that these issues impact working families here in America," Mr Sullivan said. 

The President leaves for Italy on Thursday. He is expected to meet with Pope Francis at the Vatican on Friday before kicking off meetings with leaders of the world's largest economies in Rome.

After the G20 meetings, Mr Biden travels to Glasgow to attend the UN climate change conference COP26.

Spanish railway company Renfe wants to begin a high-speed train service between Paris and London, taking advantage of the slots still available in the tunnel under the English Channel, the company said today.

"Renfe wants to operate on the Paris-London high-speed line through the Eurotunnel, and has already started initial contacts to compete with Eurostar," the Spanish company told AFP, confirming a report in Spanish daily El Pais.

"At the moment there are available paths and capacity to operate on the High Speed line," Renfe added, specifying that it had already carried out a market study showing that the plans would be profitable.

The Spanish company wants to operate the service with its own trains, starting with a minimum of seven, and believes taking a share of the London-Paris line will help it enter the French market.

"In a second phase, the service could be extended to new French and international destinations," the company said.

Tesla is likely to get a year-end revenue boost from helping Jaguar Land Rover meet European Union rules governing greenhouse gas emissions from cars and sport utility vehicles.

The American carmaker intends to pool the fleet of all-electric vehicles it sells in the EU with vehicles the Tata Motors-owned manufacturer delivers to customers, according to a filing on the European Commission’s website.

Tesla has generated billions in revenue by helping other automakers comply with stricter emissions regulations, including about $1.15bn in the first nine months of this year. The carmaker doesn’t specify how much of the revenue is coming from particular manufacturers or give regional breakdowns.

That's all from me today, thanks for following along. My colleague Sam Hall will see you through the rest of the day.

A bankrupt Labour council has been taken over by ministers after blowing a £100m black hole in its finances following a string of major property investments, writes Tom Rees.

Slough council has been forced to implement a three-year rescue plan overseen by Government-appointed commissioners.

The town's leaders have admitted that it needs more than £100m of additional financial support in 2021-22, far higher than initial estimates of £15m.

The borough spent £96m betting on commercial property before Covid hit, with investments including a cinema in Basingstoke and superstores in Gosport and Wolverhampton.

Slough is now trying to sell off half of its £1.2bn of assets, and ministers have criticised the council's leadership for “deeply concerning” mismanagement of its finances.

Read Tom's full story here

The Oil and Gas Authority (OGA) has launched an investigation into a $1bn (£725 million) oil field deal in the North Sea, which it says is progressing too slowly.

The regulator said it will probe Esso's plans to sell 13 oil fields to NEO Energy. Negotiations began on the deal in February, but have still not reached a conclusion.

The OGA said it's worried the delay is deterring further investment in the region and has now stepped in.

It said: "The investigation will now examine the engagement between the parties since EEPUK (Esso) and NEO Energy announced the proposed transaction in February 2021. This includes serving the parties with information notices which ask them to account for their actions since the transaction was proposed."

The investigation will not stop the deal from going ahead.

It's been another miserable day for THG, the ecommerce group battling a crisis of investor confidence.

The company's shares have plunged more than 20pc, reversing earlier gains to hit a new record low.

It followed a trading update that showed revenue growth slowed to 38pc in the third quarter, down from 45pc in the first half.

THG lifted revenue forecasts for its troubled Ingenuity tech division and said it would appoint a new independent chair.

But the numbers failed to impress investors, with RBC analyst Sherri Malek branding the results "underwhelming".

The RAC has welcomed reports that Rishi Sunak has ditched plans to increase fuel duty, but called for a VAT cut to help ease prices at the pumps and urged retails to slim down their profit margins.

RAC fuel spokesman Simon Williams said:

The Chancellor had already committed to a fuel duty freeze until at least next year, so reports he won’t be tampering with it are welcome. With petrol prices at record highs, now would have been the worst possible time to change tack and hike up prices still further at the forecourt. 

Instead, we urge him to help ease the burden at the pumps by temporarily reducing VAT – and we encourage the biggest fuel retailers to bring the amount they make on every litre of petrol back down to the level it was prior to the pandemic.

Shares in BT have jumped this afternoon following reports the telecoms giant has beefed up its defences against a possible takeover bid.

Sky News reports that BT has hired Robey Warshaw, the advisory firm that hired George Osborne earlier this year, to help fend off a potential move by French billionaire Patrick Drahi.

Shares jumped almost 6pc to £1.43.

US consumer confidence rose in October for the first time in four months as concerns around the delta Covid variant eased.

The Conference Board’s index rose to 113.8 from an upwardly revised 109.8 reading in September. This was ahead of expectations, with a Bloomberg survey of economists predicting a drop to 108.

The upbeat figures suggest a fallback in new Covid infections is beginning to boost consumers' outlook for the economy.

The data suggest that a recent drop in new Covid-19 infections is beginning to boost consumers’ outlook for the economy. However, higher prices for household goods continue to threaten confidence levels.

Lynn Franco of the Conference Board said: “While short-term inflation concerns rose to a 13-year high, the impact on confidence was muted. The proportion of consumers planning to purchase homes, automobiles, and major appliances all increased in October.”

BT has stepped up its defences against a potential takeover bid by French billionaire Patrick Drahi by hiring the advisory firm that employs George Osborne.

Robey Warshaw, the boutique investment bank that hired the former Chancellor earlier this year, was formally appointed in recent weeks alongside Goldman Sachs, Sky News reports.

It comes after Mr Drahi's telecoms firm Altice paid £2bn for a 12pc stake in BT in June. Altice said it had no intention of making a formal takeover offer, which triggered a six month ban on making a bid.

But the French group will be released from this commitment on 10 December.

BT is said to be preparing for a range of possible scenarios, including a full takeover bid by Altice or a demand that the company spins off either its consumer arm – which includes mobile network EE – or its broadband division Openreach.

While we've been focusing on nuclear power stations, across the pond Wall Street has opened at record highs.

The benchmark S&P 500 was up 0.3pc at the open, while the Dow Jones gained 0.1pc. Both marked new record peaks. The tech-heavy Nasdaq jumped 0.6pc at the opening bell.

The indices were pushed higher by upbeat results from companies including UPS, while investor focus is turning towards Alphabet, Microsoft and Twitter later today.

Meanwhile, Sizewell C has welcomed the planned reforms.

A spokesperson said:

This legislation is a big step forward and will allow us to fund Sizewell C so that it delivers reliable low carbon nuclear power at a lower cost to consumers. With the appropriate consents in place, Sizewell C will be ready to begin construction in this Parliament.

It is a once-in-a-generation opportunity to create thousands of jobs and training opportunities in East Suffolk. Building on the success of Hinkley Point C, it will also deliver another big boost to thousands of supply chain companies up and down the country.

70pc of the construction value will go to British companies and the legislation means Sizewell C could be majority owned by British investors. Sizewell C will provide home-grown low carbon electricity to 6m households and will help to reduce our reliance on energy imports. It will play a key role in helping the UK achieve net zero.

The Government's plan for a new RAB funding model for nuclear power station has stirred up some vocal opposition from campaign groups.

Dr Doug Parr, chief scientist for Greenpeace UK, said:

The funding model that EDF has been lobbying hard for to pay for their expensive nuclear power plants has already been tested in the USA. The results were disastrous [...]

This government has not learnt the lesson that new nuclear power can’t deliver electricity on schedule or for an affordable price for consumers, and so its fascination with new nuclear will become a hindrance to climate action, not a help.

The government should be focusing on expanding renewables power at greater speed and scale than their current ambition, with a smart grid, home insulation and storage capable of providing the UK with a  clean, secure energy system without bankrupting bill-payers.

Alison Downes of Stop Sizewell C said:

RAB is a desperate measure to attract investment for Sizewell C, a project so toxic that no one wants to pay for it.

Compared to other energy solutions, Sizewell C is an expensive distraction - too damaging, too slow for our climate emergency and with serious question marks over its reactor technology.

Whichever way you look at it RAB spells tax, with every single energy bill payer forced to contribute to the construction of Sizewell C whether they like it or not, adding to households' rising costs, the risk of fuel poverty and putting us all on the hook for likely cost overruns and delays.

The Government has set out a new model to fund the construction of nuclear power stations in a bid to attract more domestic investment in renewable energy projects.

The new model, known as a regulated asset base (RAB), is aimed at reducing Britain's reliance on overseas investors. Ministers said it would reduce the cost to consumers in the long run.

The RAB model, which has been used for previous projects such as Heathrow Terminal 5, is designed to increase the pool of private investors such as pension funds and insurers.

Under existing funding methods, developers must pay for construction and only receive revenue when the station starts to generate electricity. The RAB system means consumers pay for the project as it's being built, providing a steadier return for investors.

The overhaul will be a key step forward in efforts to build the £20bn Sizewell C project in Suffolk.

Business Secretary Kwasi Kwarteng said:

The existing financing scheme led to too many overseas nuclear developers walking away from projects, setting Britain back years. We urgently need a new approach to attract British funds and other private investors to back new large-scale nuclear power stations in the UK.

Our new model is a win-win for nuclear in our country. Not only will we be able to encourage a greater diversity of private investment, but this will ultimately lower the cost of financing new nuclear power and reduce the costs to consumers and businesses.

Elon Musk has backed a rebound for German car manufacturers after Tesla's Model 3 topped European monthly sales figures for the first time.

He wrote on Twitter: "German car manufacturers will rebound strongly. They possess great talent, which will not sit idle."

The Tesla founder was responding to a Twitter user, who cited a German news report describing the Model 3's usurping of the Volkswagen Golf as the "end of an era".

He added: "Also, Tesla will soon be a German car manufacturer."

DraftKings has walked away from a potential £16bn takeover bid for Ladbrokes owner Entain, saying it won't make a final offer.

The US betting group had tabled a £28-per-share offer for Entain after increasing its earlier £25 bid.

The two sides were granted an extension to a deadline for finalising the bid after they failed to reach an agreement over a technology licensing agreement and governance structure for BetMGM, an online joint venture between Entain and MGM.

But DraftKings today said talks had ended and it had decided not to make a firm offer.

Chief executive Jason Robins said: "After several discussions with Entain leadership, DraftKings has decided that it will not make a firm offer for Entain at this time.

"We are highly confident in our ability to maintain a leadership position and achieve our long-term growth plans in the rapidly growing North America market."

Shares in Entain sank as much as 11pc following the announcement, while DraftKings was up 7pc in premarket trading.

The Ladbrokes owner said it was "confident" in its future prospects despite the collapse of the deal.

A group of tanker drivers in Liverpool has secured a 17.5pc pay rise as businesses grapple with shortages that have sparked widespread supply chain disruption.

Two dozen drivers, employed by transport group Turners, will receive a 17.5pc increase in all elements of their pay for the year starting April 2021, which will be backdated, the union Unite said.

The drivers, who deliver bulk liquid food products to food manufacturers across the UK, will also receive a 4.55pc increase for paid meal breaks.

It comes as a shortage of workers – in particular HGV drivers – has forced many businesses to ramp up pay to hire and retain staff.

Unite general secretary Sharon Graham said: 

This is an excellent result for our driver members on the Cargill contract in Liverpool. It demonstrates what can be achieved when workers are organised in Unite and take a stand.

But fair play to Turners, the employers, they changed their minds and made a dramatically-improved new offer. That is an example to the rest of the haulage industry about how to go about offering decent wages.

US delivery giant UPS has published better-than-expected results and lifted its annual forecast as it cashed in on booming ecommerce during the pandemic.

AFP has the details:

The Atlanta-based group posted sales of $23.2bn from July to September, up 9.2pc from last year and higher than the $22.6bn expected by the market.

Its revenues grew 15.5pc on the international market and 7.4pc on the US market, which represents the main source of its income.

Activities related to supply chain solutions grew 8.4pc. The group's net profit was $2.3bn for the quarter.

Per-share profit, excluding exceptional items, was $2.71, better than the $2.54 expected by analysts.

The results have allowed UPS to increase its operating margin estimates for 2021: it should now stand at 13pc, compared with 12.7pc forecast in the previous quarter.

UPS stocks climbed nearly 5pc in electronic trading before Wall Street opened.

Here's some more details on Chris O'Shea's comments from my colleague Matt Oliver:

Chris O'Shea, chief executive of British Gas owner Centrica, has warned peers that the collapse of several small energy firms is set to pile £100 of extra costs on "every single home in the UK".

Speaking to a House of Lords committee, he also called for "regressive" taxes related to the green energy transition to be scrubbed from bills.

Mr O'Shea said: "The current retail market failures will put £100 on the bills of every single home in the UK. 

"Whether that is a house in Belgravia or a studio flat in a deprived area of Glasgow, it will be the same amount - and that is the same with the policy costs at the moment.

"If we put these costs on bills at a flat rate then that will not achieve a just transition. It will ensure that people are left behind."

He added: "I do not think we can put these costs on bills because it hits the poorest in society hardest, and that concerns me. 

"When I think of our customers, we have 1.2m people on pre-payment meters because they won't pass credit checks."

Another 4m customers are classed as "vulnerable", he said. 

Households expectations for inflation over the next year have surged to their highest level since the financial crisis in 2008, according to a survey from Citigroup and YouGov.

Households now expect inflation to hit 4.4pc over the next 12 months, up 0.3 percentage points on the previous month's reading.

Tightness in consumer goods markets and the recent surge in energy prices were cited as the driving force behind the increases.

Expectations for the next five to 10 years stabilised at 3.7pc following sharp jumps in August and September. However, this is still the highest level since the second quarter of 2013.

The figures underline the challenge faced by the Bank of England's Monetary Policy Committee when it meets to vote on interest rates next week.

Wall Street is poised to open this afternoon, continuing a Tesla-led rally that drove shares to record highs last night.

Futures on the S&P 500 and Dow Jones were up 0.4pc and 0.3pc respectively, while the Nasdaq rose 0.7pc.

The tech-heavy index led last night's gains as Tesla surged to a $1 trillion valuation. Facebook rose more than 2pc in pre-market trading after reporting strong user growth and a $50bn share buyback.

Twitter, Google parent company Alphabet and Microsoft are all releasing results later today.

Reports that Rishi Sunak will maintain VAT on energy bills in his Budget tomorrow show resistance to growing calls from opposition MPs.

Rachel Reeves, the shadow chancellor, has urged the Government to cut the tax to help families through a "tough winter".

But the Treasury appears to have ruled out the move, which it considers poorly targeted. Instead, it's pointed to the £500m Household Support Fund, which is designed for low-income families struggling with food and energy bills.

Still, a tax cut would have offered relief at a time when surging wholesale gas prices are pushing up bills. The price cap was increased at the beginning of this month, with expectations that it will be lifted further in April.

Read more on this story

Shop stock levels slumped to a record low October as businesses grapple with the impact of material and labour shortages on supply chains.

A survey by the CBI revealed stocks in relation to expected sales were at their lowest level since the survey began in 1985 – the seventh consecutive month this has happened – although a slight easing in stock pressures is expected next month.

Meanwhile, retail sales were broadly average for the time of year. Growth in retail sales and orders picked up in the year to October, compared to the year to September. However, this may reflect a comparison with October 2020, when sales and orders both declined amid a tightening of Covid restrictions.

The pace of internet sales growth for the year to October slowed further below the long-run average rate, though this may also be due to a surge in ecommerce in the equivalent period last year.

Ben Jones, CBI principal economist, said:

The UK’s economic recovery has been pretty bumpy lately and the same seems true of the retail sector. Sales performance has jumped around in recent months, while stock shortages continue to bite.

Disruption to supply chains, combined with staff shortages and uncertain public health conditions mean retailers are finding it difficult to plan for the winter ahead.

Ikea has snapped up Topshop's former flagship store on Oxford Street for £378m.

The Swedish retailer will take retail and office space in the building, which boasts 239,000 square feet of space over seven floors. Nike and Vans are also tenants.

The new Ikea store, which is set to open in autumn 2023, will be the brand's second smaller store format following the opening of its new Hammersmith site this winter.

The company said it formed part of its strategy of bring Ikea closer to customers by setting up stores in city locations and described the move as a vote of confidence in London's real estate market.

The new site will have a focus on home furnishings and create 150 new local jobs.

Krister Mattsson, managing director of Ingka Investments, part of Ikea's parent company, said:

We are delighted to have signed this agreement for a property on one of Europe’s busiest shopping streets and it represents another opportunity to create a more accessible, affordable and sustainable Ikea for our customers.

This property offers great potential for retail space, and we firmly believe in the long-term value of the real estate market in London. 

Gas prices have pushed higher for the second day as weaker flows from Russia and outages in Norway spark concerns about a winter supply crunch.

Russian shipments to central Europe through Ukraine and Poland have declined more than 40pc since Friday. Flows via a key link to Germany are averaging far less than in September, though they have picked up from Monday.

Outages in Norway are further adding to the supply strain, and demand is expected to increase in the coming days as a cold snap hits western Europe.

Benchmark Dutch gas prices rose 1.6pc to €90.10 euros a megawatt-hour after closing 1.5pc higher on Monday. The UK equivalent climbed 1.7pc to 227.06p a therm, extending yesterday's 1.8pc gain.

Sticking with interest rates, HSBC analysts reckon Andrew Bailey will vote to hold the base rate at a meeting next week, despite a flurry of hawkish comments from the Bank of England governor.

While markets are expecting a 15 basis point increase in rates at the Nov 4 meeting, HSBC expects the nine-member Monetary Policy Committee to vote 7-2 to keep borrowing costs on hold.

Senior economist Liz Martins predicts that only Michael Saunders and Dave Ramsden, who pushed for an early end to bond purchases in September, will vote to lift the rate.

The predictions will come as a major surprise, especially given recent warnings from Mr Bailey that the Bank will have to act to rein in inflation.

It's not just the FTSE that's hitting fresh highs today – the pound has also risen to a 20-month peak against the euro.

Sterling is trading at 84.2p to the euro, 0.2pc higher and the best since February 2020. It's also up 0.2pc against the dollar at $1.3792.

It comes amid diverging expectations for interest rates for the UK and the eurozone. Money markets are pricing in a Bank of England rate hike at next week's meeting, while the European Central Bank is expected to wait much longer before intervening.

Still, concerns over economic growth and persistent jitters relating to post-Brexit wrangling over Northern Ireland have kept a cap on gains.

There are deepening divides among EU countries about how to respond to a surge in energy prices ahead of an emergency meeting of ministers today.

Most nations have responded to the price spike with measures such as price caps and subsidies to help keep a lid on consumer bills. But they're struggling to agree on a longer-term solution.

Some countries – including Spain and France – have proposed a radical shake-up of the bloc's energy market strategy, including a decoupling of electricity and gas prices and joint gas buying.

But other nations, including Germany, have said they wouldn't support the reforms.

The impasse could lead to further splintering, with Spanish media reporting this morning that the country will ask the EU for permission to exit the bloc's common electricity policy and establish its own pricing mechanism.

The FTSE 100 has continued its upward march this morning – it's now up 0.7pc.

The rise means the blue-chip index is now at its highest level since February 2020. Earlier this month it regained levels last seen in March last year, clawing back all its pandemic losses.

Today's gains are being led by Reckitt Benckiser, which reported upbeat third-quarter figures thanks to higher demand for cold and flu products.

It comes after both the S&P 500 and Dow Jones hit record highs last night, fuelled by major gains for Tesla, which became the first car maker to hit a valuation of $1 trillion.

Co-op Bank is determined to pursue a takeover of TSB despite being snubbed by the lender's Spanish owner, writes my colleague Lucy Burton.

Insiders said that Co-op's board is determined to pursue a deal and feel "optimistic that there will be discussions" over the coming weeks despite being publicly rebuffed by TSB's Spanish parent Banco de Sabadell over the weekend.

The bank sent Sabadell a letter outlining its offer around three weeks ago. Despite being publicly rejected - Sabadell has said this is not a deal it wishes to explore - insiders believe they can get an offer back on the table.

The Co-op Bank, which cut its historic ties with the wider Co-operative Group following a rescue deal in 2017, confirmed on Monday that it had approached Sabadell about the potential deal but that no discussions were taking place.

Shares in plastics company Essentra have jumped 4.6pc this morning after it unveiled plans to become a pure-play components business.

The FTSE 250 group, which makes component parts, packaging and cigarette filters, said over time it will focus on just making products such as caps, plugs, knobs, handles and grips.

It said the first step will to be carry out a full review of strategic options for its filters division.

It came as Essentra reported a 5.1pc increase in third-quarter sales, with price increases partially offsetting higher costs. Full-year operating profit is expected to be in line with analysts' forecasts.

The UK's three spy agencies have signed a contract with Amazon to host classified material as they look to bolster their use of data analytics.

The Financial Times reports that GCHQ led the push for a high-security cloud storage system, with sister agencies MI5 and MI6 also involved. Other government departments such as the Ministry of Defence will also use the service during joint operations.

The deal, signed with Amazon Web Services, is estimated to be worth between £500m and $1bn over the next decade.

All data will be held in Britain and Amazon will have no access to it, according to the report. Still, the move is likely to reignite concerns over sovereignty and the transfer of key British assets to US companies.

Embattled ecommerce group THG has said it will appoint a non-executive chair as it looks to calm investor concerns about its corporate governance.

The company, founded by billionaire Matt Moulding, said it's hired executive search firm Russell Reynolds Associates to hire for the new role. It also said Andreas Hansson, a managing director at SoftBank, would join the board.

THG has come under pressure in recent weeks, with shares slumping amid questions over Mr Moulding's control over the company and the lofty valuation of its Ingenuity technology division.

The retailer has already announced plans to move its listing to the premium segment of the London Stock Exchange, while the founder will give up his special share rights and has unwound a personal loan that was secured against his stake in the company.

In a trading update this morning, THG said third-quarter revenue was up 34pc at £508m, while Ingenuity's sales grew 44pc to £51m.

But the figures failed to impress investors, and shares dropped a further 8.5pc in morning trading.

Elsewhere, there's a major government leak that's revealed just how damaging the Government's so-called Plan B for tackling Covid would be for the economy.

The Cabinet Office is weighing up plans to move to Plan B until March 2022 in a bid to tackle rising cases. This raises the prospect of five months of mask wearing, Covid passports and a return to working from home.

But an internal impact assessment by the Treasury, seen by Politico's Playbook, warns this would cost the economy between £11bn and £18bn – or more than £800m per week.

The paper warns the main impact would be on businesses as millions of people go back to working from home.

A separate document obtained by the Telegraph shows vaccine passports could cost companies in the events sector between £1.4bn and £2.3bn.

Read more on this story here

The ditching of the fuel duty increase will be a major relief to drivers, who are already facing much higher prices on the forecourts.

According to the RAC, the main driving force behind the rise is escalating oil costs. However, the switch to greener, more expensive E10 fuels has also pushed up prices. 

Moreover, many retailers have ramped up their profit margins in a bid to claw back pandemic losses. Since April 2020, retailers have increased their average margin on a litre by 2p from around 5.5p to 7.5p a litre.

Here's a full breakdown of the costs:

The FTSE 100 has made a strong start to the day, up 0.2pc to 7,240 points in its third straight session of gains.

Reckitt Benckiser jumped to the top of the index, rising 4.5pc after the Strepsils maker lifted its full-year forecasts thanks to strong demand for cold and flu medicine.

Premier Inn owner Whitbread also rose as much as 3pc after it reported a narrower loss thanks to a travel rebound and said it expected a return to normality this year.

The domestically-focused FTSE 250 was also up 0.2pc, with IT services firm Softcat sliding as much as 6pc after reporting its full-year results.

While Heathrow may be battling a travel slump, things are looking brighter for the owner of Premier Inn hotels.

Whitbread said Premier Inn's recovery was ahead of the wider market, adding it expected a return to pre-pandemic levels of occupancy at some point this year.

First-half revenues were down 39pc as a result of tough UK restrictions until 17 May, while adjusted loss before tax hit £56.6m.

However, the firm said Premier Inn's sales were 12 percentage points ahead of the wider market as it cashed in on a staycation boom after restrictions were eased, while its expansion in Germany continued at pace.

Alison Brittain, Whitbread chief executive, said: "The operating environment during the summer and into autumn has been challenging largely as a result of our very high occupancy levels, market-wide supply chain issues and a tighter labour supply in the hospitality sector."

But the company said it was better placed than many of its rivals to deal with cost increase such as wage growth and rising utility bills.

Shares rose 0.5pc following the update.

The FTSE 100 has opened higher as investor confidence was buoyed by fresh records on Wall Street last night.

The blue-chip index opened up 0.2pc at 7,239 points.

Heathrow Airport has posted another hefty loss and warned it doesn't expect traffic to fully recover until 2026, even as travel demand started to pick up in the third quarter.

The London airport said passenger numbers recovered to 28pc of pre-pandemic levels in the three months to the end of September – the first full quarter of growth since 2019.

But its cumulative losses since the start of the pandemic have now hit £3.4bn, which it said underscored the "long road ahead".

John Holland-Kaye, chief executive of Heathrow, said: “We are on the cusp of a recovery which will unleash pent-up demand, create new quality jobs and see Britain’s trade roar back to life – but it risks a hard landing unless secured for the long-haul."

Last week, the aviation regulator said Heathrow will not be permitted to raise passenger charges by as much as it had wanted, but airlines opposed the scale of the hike as the hub and carriers battle to recoup pandemic losses.

In its statement today the airport said the Civil Aviation Authority's proposals did not go far enough.

Heathrow said it has £4.1bn in cash to help it through until the market recovers.

Consumer goods group Reckitt has raised its outlook for full-year sales after the Strepsils maker cashed in on higher demand for cold and flu medicines.

The FTSE 100 company said it expected like-for-like sales growth of between 1pc and 3pc this year – up from previous guidance of between 0pc and 2pc.

For the third quarter, like-for-like sales grew 3.3pc. Reckitt said this was driven by an "encouraging" start to cold and flu season, with many Britons coming down with the so-called super cold.

Reckitt, which also makes Dettol, said nine out of 10 of its best-selling products had grown more than 10pc over the last two years.

However, it warned that ongoing performance was sensitive to Covid dynamics, as well as cost increases.

Good morning. 

The FTSE 100 is gearing up for a strong open today, fuelled by record highs for Wall Street and continued strength in oil prices.

Tesla's surge to $1 trillion helped drive the S&P 500 and Dow Jones to new peaks last night, and the sentiment is set to pass into European trading this morning.

Investors will also be turning their attention to tomorrow's Budget, though many of Chancellor Rishi Sunak's announcements have already been trailed, including lifting the public sector pay freeze and an increase to the minimum wage.

5 things to start your day 

1)  Tesla becomes first $1 trillion car maker The surge has increased Mr Musk's fortune by $28bn to $281bn, far ahead of Amazon founder Jeff Bezos's $193bn worth.

2) Under-fire Facebook warns growth to slow Apple’s recent privacy changes are believed to have hit Facebook particularly hard.

3) Petrol heads for 150p a litre after hitting record high RAC calls on the Government to ease taxes on petrol, which represents more than four fifths of the pump price.

4) Darktrace shares crash after analysts slash its value  Just days before it joins the FTSE 100, Darktrace shares plummeted after analysts said the cybersecurity company is only worth half of its market value.

5) Infrastructure spending stalls in Tories' Red Wall seats Spending on rail, roads and buses has flatlined over the past five years in much of the Red Wall despite Conservative pledges to boost investment in the North.

What happened overnight 

Asian markets mostly rose on Tuesday following fresh records on Wall Street. Tokyo led gains, adding 1.8pc in the morning while Shanghai, Sydney, Seoul, Wellington, Taipei, Manila and Jakarta also rose. Hong Kong edged slightly lower and Singapore dropped, while the Hang Seng Mainland Properties Index fell nearly 5pc in the morning session.

Coming up today

Corporate: Whitbread, Polymetal International, Reckitt Benckiser, Hochschild Mining (interims); Essentra, Bunzl, Petra Diamonds, THG (trading update)

Economics: BRC shop price index (UK), House price index (US), new home sales (US), consumer confidence (US), ECB bank lending survey (EU)