Rail workers union TSSA accepts pay deal rejected by RMT

That's it from me! But before I go, here are the latest business stories:

1. Holidaymakers risk higher costs because of corporation tax raid, suggests British Airways | Increases are always 'passed on to customer in some way', says IAG

2. Landlords face crisis as mortgage costs surge higher than rents | Imploding buy-to-let business model forces investors to sell up

3. French owner of Orient Express claims pulling out of Russia is ‘not an option’ | Western nations need to ‘go further’ with sanctions to force withdrawal

Don't just blame the weather for the fruit and vegetable shortage - British supermarkets don't want to pay higher prices for stock, suppliers and independent grocers told Reuters. 

"There is no shortage," said Volkert Engelsman, chief executive of Eosta BV, a Netherlands-based supplier of organic produce to supermarkets in Britain and continental Europe.

"If retailers would pay the right price there would be plenty of food."

Still not clear why UK supermarkets are rationing fruit and veg? Senior business reporter Daniel Woolfson has you covered.

Britain's blue-chip index logged weekly declines of 1.6pc, its worst performance since mid-December.

There's two possible reasons, according to Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. 

First: concerns that the US Federal Reserve will raise interest rates further, keeping them high for longer.

"They (markets) are taking a cue largely from Wall Street," she said. "Investor optimism is deflating more rapidly as this latest data indicated that the work in taming inflation is far from over."

Second: mining stocks.

"A lot of the stocks are internationally focussed and they'll be concerned about downturn in demand in the global economy, which is why you've seen mining stocks fall back," Ms Streeter added.

Muted earnings forecasts amid falling commodity markets saw share prices for mega-miners Anglo American drop 4.81pc and Rio Tinto fall 3.63pc.

Goldman Sachs has approved plans to repurchase up to $30bn (£25bn) of its own shares, according to a new regulatory filing.

No timetable was provided for the new share buyback scheme.

Goldman Sachs has already increased the pace of its buybacks. The investment bank has already repurchased $2.25bn of shares this quarter, compared with $3.5bn bought for all of last year. 

Firms typically approve new plans when their existing buyback authorisation is running low.

Goldman previously provided the number of shares it had the ability to repurchase. The investment bank now is giving buyers a dollar figure of the total amount they could repurchase over an undefined timeline.  

The new scheme amounts to nearly a quarter of the bank's current market cap of $122.47bn.

So far, Goldman's share price has fallen 0.51pc today. 

Meanwhile, the FTSE 250 also closed 0.47pc lower at 19,696.53, undoing yesterday's gains.

The domestically focused index was weighed down by top faller Domino's Pizza Group, which saw its share price fall 5.42pc as delivery woes and softening demand led to lower-than-expected fourth quarter sales.

The share price of Wizz Air Holdings also continued to decline, closing 3.68pc lower at 2,516p. Earlier this week, it was named the worst airline for short-haul flights after customers suffer repeated delays.

The FTSE 100 has closed down 0.37pc to 7,878.66. It ends a choppy trading week for the blue-chip index, which has fallen further and further below the 8,000 benchmark. 

The index was dragged down by British Airways-owner IAG, which saw its share price drop 6.33pc to 154.96p.

While IAG's earnings showed that it had returned to profit after challenges during the pandemic years, its share price fell sharply amid concerns about rising operation costs, including fuel, and the airlines' debt levels which aren't expected to fall this year. 

Citigroup and Goldman Sachs have joined the crackdown on traders’ use of ChatGPT, according to reports.

The two investment banks have blocked employees' use of the artificial intelligence software, Financial News reported.

Goldman is said to have restricted access to ChatGPT on its trading floor, while Citigroup has reportedly denied access across the firm.

They join JP Morgan which has placed temporarily restricted access to chatbot tools, as employers grow increasingly nervous over sensitive data being exposed. My colleagues Matthew Field and James Titcomb explained why.

The encrypted messaging app Signal has threatened to shut down its service in Britain if the Government's controversial Online Safety Bill forces it to violate users' privacy.

Signal, which has around 40 million active users worldwide, would “absolutely, 100pc walk” if the bill goes ahead in its current form, according to company president Meredith Whittaker.

Critics claim that the Online Safety Bill, the government’s flagship internet regulation law, would force companies to break their own encryption so users' messages can be read.

Senior technology reporter Gareth Corfield has the details.

Ok that is all from me for this week. Adam Mawardi will take control from here and guide you into the weekend.

The US will impose a 200pc tariff on all imports of Russian-made aluminium, as well as aluminium products made with metal smelted or cast in the country, in a move that could ripple through global manufacturing supply chains.

 The decision threatens to force manufacturers elsewhere who sell into the US market to rethink their entire manufacturing process.

The White House, which said it is taking the action to protect its domestic industry, may exempt other countries that impose their own 200pc tariff on Russian aluminium imports. 

The tariff will take effect March 10, and aluminium products which are manufactured using any amount of aluminium cast or smelted in Russia, will be affected from April 10.

Joe Biden said in the proclamation the decision would be "a significant step toward ensuring the viability of the domestic aluminum industry".

Wall Street's main indexes fell more than 1pc as a surge in consumer spending and inflation in January sparked concerns that the Federal Reserve will stick to its hawkish stance for longer.

The three major US indexes are on track for weekly losses despite a modest rebound on Thursday, with the blue-chip Dow Jones Industrial Average set for a fourth consecutive week of declines.

The Dow has fallen 1.2pc to 32,768.35, while the broad-based S&P 500 sank 1.4pc to 3,954.84. The Nasdaq Composite was down 1.9pc to 11,372.07.

All the 11 major S&P sectors fell in early trading, with technology and consumer discretionary leading losses.

Megacap stocks including Tesla, Amazon and Nvidia slid in the range of 1.2pc and 2.5pc as the yield on the benchmark US 10-year Treasury notes rose.

Boeing slid 3.8pc after the Federal Aviation Administration said the planemaker temporarily halted deliveries of its 787 Dreamliner jets.

Warner Bros Discovery fell 2.3pc after reporting a greater-than-expected quarterly loss due to one-off charges related to its merger.

Block rose 3.4pc after the payments firm said it is slowing the pace of hiring this year to control costs and gave an upbeat forecast for a key profit metric.

Some food for thought for anyone wondering why consumption numbers in the US continue to surprise analysts:

The two-year yield in the US has surged to its highest level since 2007 after as figures showed consumer consumption stayed strong in January.

The Treasury's two-year rate hit 4.8pc as investors abandoned stock markets in favour of bonds as they position for the US Federal Reserve to continue raising interest rates higher for longer.

Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said:

It is much too soon for the Fed to say 'mission accomplished.' 

It is far too early to extend duration and buy the dips in bond prices, let alone trying to continue to buy the dips in the stock market. 

We have been exercising much more caution and have advised our clients to be careful and not aggressive at this point in the economic cycle.

Matt Maley, chief market strategist at Miller Tabak + Co, said: "The stock market is responding the moves in Treasury
yields. 

"If these yields remain at/near their recent highs, it's likely going to be a rough day for the stock market."

It has been a brutal opening for markets on Wall Street after stronger than expected consumer consumption figures forced traders to reassess their outlook for interest rates in the US.

The Dow Jones Industrial Average plummeted 1.1pc after the opening bell, while the S&P 500 was plunged 1.2pc to 3,962.54.

The tech-heavy Nasdaq Composite has fared worse, falling 1.5pc to 11,412.70.

After members voted to accept the pay deal offered by Rail Delivery Group on behalf of train operators, a TSSA spokesman said: 

This is a clear decision from our members which will end our long-running dispute – something which could have happened months ago had it not been for government intransigence.  

The incredible resolve we have seen from our members has resulted in a significantly improved pay deal over two years, commitments for no compulsory redundancies, improved opportunities for redeployment, as well as full consultation over proposed reforms to ticket offices and any changes to terms and conditions.

Thanks to the great commitment of our members across the train companies they have collectively won a better future and can be rightly proud of their actions in this historic dispute.  

We will continue to hold the train companies and the government to account as we go forward because Britain needs a fully functioning rail network at the heart of our green industrial future, and as a means of rebuilding our economy in the wake of the Covid pandemic.

The offer accepted by the TSSA union includes a two year pay deal.

It provides for a 5pc increase or a minimum increase of £1,750 whichever is the greater in 2022/2023, and a further 4pc increase in 2023/2024. 

It also secures no compulsory redundancies among employees within the grades directly affected by new workforce changes until the end of next year. 

A voluntary redundancy scheme will also be put in place.

The train companies involved in the scope of the new offer are - Avanti West Coast, C2C, Chiltern Railways, Cross Country, East Midlands Railway, Govia Thameslink Railway, Greater Anglia, Great Western Railway, London North Eastern Railway, Northern Trains Limited, South Eastern Railway, South Western Railway, Trans Pennine Express, West Midlands Trains. 

Thousands of rail staff have accepted a pay deal rejected earlier this month by the RMT union.

Members of the Transport Salaried Staffs Association (TSSA) have voted to accept offers by train companies in the long-running dispute over pay, job security and conditions, the union announced.

The offer accepted by the union's 3,000 members includes at least a 9pc increase over two years, rising to over 14pc for the lowest paid workers.

TSSA staff held the first ever strikes on Crossrail - the new Elizabeth Line - earlier this year.

The union said 80pc of management grade staff and 60pc of general grade members voted to accept the offers.

The RMT, which represents 40,000 workers across Network Rail and 14 train operators, rejected the offer this month and instead announced a fresh wave of rail strikes for Thursday, March 16, Saturday, March 18, Thursday, March 30, and Saturday, April 1.

The FTSE 100 also moved sharply downwards following the latest data on consumer consumption in the US.

The blue chip index immediate dropped 0.4pc and is close to 7,880 - its lowest level in a fortnight and more than 160 points of its record highs set earlier this month.

The Federal Reserve's preferred inflation metrics accelerated in January more than expected and consumer spending increased by the most since 2021, a combination that puts pressure on policymakers to keep ratcheting up interest rates.

The FTSE 100 is more exposed to strengthening in the dollar as its companies conduct more trade internationally.

In the US, the personal consumption expenditures price index increased 0.6pc from a month earlier, the most since June, Commerce Department data showed. 

Excluding food and energy, the core PCE price index also climbed 0.6pc.

Personal spending, after adjusting for changes in prices, jumped 1.1pc, rebounding from weakness at the end of last year.

From a year earlier, the PCE price index was up 5.4pc in January, an acceleration from December. The core metric was up 4.7pc, also faster than the previous month.

The pound has slumped 0.5pc against the dollar after data indicated a strong US economy as consumer spending rebounded sharply in January.

Consumer spending, which accounts for more than two-thirds of US economic activity, jumped 1.8pc last month, the Commerce Department said. 

Data for December was revised higher to show spending dipping 0.1pc instead falling 0.2pc as previously reported. 

The personal consumption expenditures (PCE) price index shot up 0.6pc last month after gaining 0.2pc in December. 

In the 12 months through January, the PCE price index accelerated 5.4pc after rising 5.3pc in December.

The pound has fallen below $1.20 in trading today.

Ericsson plans to lay off 8,500 staff worldwide as part of its wide-ranging cost-cutting plans.

The Swedish 5G networks business said most of the redundancies would happen in the first half of the year, although some would happen in 2024.

The cuts are equivalent to 8pc of its workforce as it seeks to slash 9bn kronor (£720m) in costs by the end of the year.

A spokesman said: "We see a potential to simplify and become more efficient throughout the company, especially when it comes to structural costs."

The Indian businessman at the centre of a storm over an alleged $577m nickel fraud has pledged to challenge the worldwide freezing order held over him.

Prateek Gupta said he plans a "robust response" to allegations levelled by commodities trader Trafigura Group.

The company said earlier this month that it is facing more than $500m (£400m) in losses after discovering that metal cargoes it bought did not contain the nickel they were supposed to.

Trafigura said it spent past two months uncovering what it claims is a systematic fraud against it, before starting legal action against Mr Gupta and several companies connected to him.

Following a short online court hearing in London today, Mr Gupta's spokesman said he will seek to remove the $625m freezing order before April 6.

Meal-kit delivery business Gousto has axed 14pc of its workforce and scaled back plans to recruit 1,000 new staff, according to reports.

The redundancies affected fewer than 100 employees, according to Sky News.

A spokesman for the company backed by celebrity fitness guru Joe Wicks told the broadcaster that the affected staff had left the business by the end of last year.

Britain granted residence visas last year at almost double the pace it did before the pandemic as more people came to work and study in the UK.

The Home Office issued a total of 1.4m visas last year, up from 714,300 in 2019 before coronavirus lockdowns halted much travel. 

Work visas made up a big proportion of this, with one in three of these going to Indian workers. There also were big increases for those entering from Hong Kong and Ukraine.

The figures mark a contrast with the goal of the Government cut immigration sharply, one of the main things the Conservatives promised to deliver after Brexit.

Almost a third of Britons consider immigration one of the top three concerns, according to a YouGov poll in December.

Markets on Wall Street are on course to open lower as investors turn cautious ahead of a fresh reading of monthly inflation in the US due to be published this afternoon.

The core personal consumption expenditure (PCE) index is expected to have risen 0.4pc% on a monthly basis in January from 0.3pc in December. 

Annual core PCE, however, is seen easing to 4.3pc last month from 4.4pc. The metric is the US Federal Reserve's preferred indicator of inflation, meaning the results will give a strong hint at the direction of interest rates in the coming months.

The three major US stock market indexes are set for weekly losses despite a modest rebound in the previous session, with the Dow Jones Industrial Average expected to post losses for February.

Futures on the US's blue-chip index were down 0.5pc, while S&P 500 contracts have fallen 0.6pc. Nasdaq 100 futures were down 0.9pc.

The RMT is calling on the Scottish Government to take the Caledonian Sleeper train into public ownership.

The Rail, Maritime and Transport union said it expects a decision next week on who will operate the service between Inverness and London from this summer.

It is currently operated by private company Serco.

RMT general secretary Mick Lynch said: 

We have pressured the Scottish Government alongside politicians and others to do the right thing and take Caledonian Sleeper into public ownership.

It is what our members on the service want and would be in the interests of the travelling public.

The pound has fallen today and is headed for its first monthly drop since September.

This comes despite consumers becoming more optimistic about their personal finances and the outlook for the economy, according to data from market research firm GfK.

Sterling has lost 0.3pc against the dollar, taking it below $1.20. 

The pound has lost 2.8pc in value so far in February, the first month it has fallen since September's near-4pc fall to a record low in the wake of Liz Truss's mini-Budget.

Against the euro, the pound has lost about 0.2pc on the day. A euro is worth 88p. 

Oil has risen for a second session — trimming a modest weekly loss — ahead of US data that will help shape the debate over monetary policy.

Brent crude, the international benchmark, has gained 0.6pc taking it toward $83 a barrel - leaving it down about 0.3pc so far this week.

US-produced West Texas Intermediate also climbed 0.6pc to take it near $76 after closing almost 2pc higher in the previous session. 

Investors will be watching personal spending data later today for clues on the path forward for interest rates. Minutes from the Federal Reserve this week signalled there are more rises to come.

Investors will closely monitor data on the personal consumption index released this afternoon to try to assess the pace of interest rate increases. It is the US Federal Reserve's preferred gauge of inflation.

Consumers who were subject to illegal currency trading promotions will be paid money secured by financial regulators, the UK watchdog has said.

The Financial Conduct Authority said it has received a payment of more than £106,000 from the official receiver which it will distribute to those affected by the activities of Mohammed Maricar, director of 24HR Trading Academy.

In March 2021, the High Court ordered that Mr Maricar and his company pay £530,000 by way of restitution or compensation for the benefit of consumers.

Mr Maricar failed to pay the money, so the FCA petitioned for his bankruptcy, with the High Court making a bankruptcy order against Mr Maricar in August last year.

Customers caught up by the illegal contracts-for-difference promotions will soon receive funds from the FCA after the official receiver was appointed over Mr Maricar's estate and paid the regulator more than £106,000.

European gas prices have extended gains for a third day as icy weather is forecast in western parts next week, with the potential for the cold to spread across the whole of the region.

Benchmark futures rose as much as 4pc as traders weigh up the potential increase in demand from lower temperatures over the next two weeks. 

Paris will be more than 5C below the seasonal average on Monday and Tuesday, according to Maxar.

Natural gas is set to post only its third weekly gain this year, as mostly mild weather has taken the pressure off prices.

Inventories in Europe are still well above usual levels for this time of the year, at 63pc full, but the cold snap at the end of the heating season will increase pressure on storage and may potentially require higher injections over the summer season.

Despite the weekly gain, gas prices are still down more than 30pc this year after rising to record levels last year, hurting industrial demand. 

Front-month gas futures rose 2.8pc to €52.20 per megawatt-hour, heading for a weekly gain of more than 5pc.

Leeks could become the latest vegetables to be rationed after a poor growing season, growers have warned.

Leek growers have suffered amid high temperatures and low rainfall - meaning supplies could run out by April.

Tim Casey, chairman of the Leek Growers Association, said customers might have to rely on imported crops through May and June.

He told the Telegraph: "The drought and the high temperatures in the summer stunted growth. Although we were irrigating the leeks like mad, all we were really doing was keeping them on life support and stopping them from dying.

"We had a relatively kind autumn and a lot of growth but it wasn't able to make up time for the crops before the winter came with cold weather and everything stopped." 

It comes as Tesco and Aldi have been rationing supplies of tomatoes, peppers and cucumbers this week amid a shortage of supply linked to bad weather in Morocco and Spain.

Asda has also put limits on the sale of lettuce, salad bags, broccoli, cauliflower and raspberries, while Morrisons is also limiting sales of lettuce.

The National Farmers Union warned late last year that Britain could be "sleepwalking" into a food security crisis after many farmers scaled back production in 2022 as costs for energy, feed and fertiliser soared.

Environment Secretary Therese Coffey suggested on Thursday that British consumers should eat more turnips instead of imported food.

Andrew Blenkiron, a root vegetable farmer in Suffolk, said he is planning to reduce the size of his crop this season by 300 acres in case there is more hot and dry weather like last year.

East Anglia still remains in drought status, along with Devon, Cornwall and the Isles of Scilly.

The National Drought Group has said the country is one hot, dry spell away from plunging more areas into drought conditions. Mr Blenkiron said:

We dare not take the risk of planting these crops that demand volumes of water through the summer if we can't guarantee that supply.

So we've had to back off. And I would suggest that's fairly common across certainly East Anglia.

This last summer we just had enough water in our reservoirs.

Because of the intense heat, principally in the high evapotranspiration rates on crops of potatoes and onions, we found ourselves using 25pc more water than we would have in the usual season.

It completely depleted our reservoir stocks and it increased the costs significantly. And the cost increase wasn't just because of the extra 25pc, it was because of the 400oc increase in electricity costs as well. So it was a real double whammy.

The world's largest chemical producer BASF plans to cut 2,600 jobs globally as it contends with a deteriorating world economy amid Europe's energy crisis.

The company will reduce its workforce by about 2pc until the end of 2024 as it forecast lower profits for this year

The business is also ending a €3bn (£2.6bn) share buyback early as it adjusts to a future without cheap Russian gas. 

To save costs, BASF is closing a number of energy-intensive factories, including two ammonia plants and related fertiliser facilities, resulting in 700 job cuts at its main Ludwigshafen plant in Germany.

The shares fell as much as 5.1pc in early Frankfurt trading, the most since October.  

Renting a home in Britain is now cheaper than taking out a new mortgage for the first time in 14 years, new research indicates.

The average mortgage repayment has topped £1,000 a month for the first time ever as interest costs doubled over the last two years, according to Capital Economics.

Meanwhile, average rent payments remained relatively stable last year, between £900 and £1,000 a month, the consultancy said.

The Bank of England's interest rate rises and market panic following Liz Truss's mini-Budget helped push up the cost of home loans.

Germany risks falling into recession this year as data showed its economy shrank more than expected at the end of last year.

Output shrank by 0.4pc in Europe's largest economy in the fourth quarter of 2022 compared with the previous three months, the statistics office said today.

Preliminary data from the office had pointed to a 0.2pc contraction over the period but the figure worsened as inflation and the energy crisis took their toll on household consumption and capital investment.

Economists predict another negative result this quarter, which would tip the economy into a recession. 

Even so, an unusually warm winter has meant Germany dodged the gloomier scenarios feared when Russia invaded Ukraine a year ago.

After relief measures such as the country’s fuel discount and a €9 transport ticket ended, consumers spent less on consumption in the fourth quarter than in the third quarter, the statistics office said. Household spending was down 1pc.

However, German consumers are feeling more optimistic heading into March, a key survey found.

Pollster GfK said its forward-looking survey of around 2,000 people climbed 3.3 points to reach minus 30.5 points for March, the fifth consecutive monthly increase.

Here is some more analysis on the state of the German economy:

Shares in British Airways owner IAG are the worst performing on the FTSE 100, declining 2.8pc since it announced hopes to nearly double profits this year and a recovery in revenues to pre-pandemic levels.

Julie Palmer, partner at Begbies Traynor, sheds some light on why:

The scale of the post-pandemic recovery for airlines is spelled out in British Airways-owner IAG’s results, with revenues bouncing back to levels seen before Covid grounded flights.

However, the story was not the same for profits. Although IAG did return to the black, the cost of running airlines has soared; despite hedging contracts to protect IAG, the fuel bill was almost a third higher and other costs rose by a quarter compared to 2019.

Management say they want to return to previous profit levels within a few years. 

However, that's going to need oil prices dropping to levels not seen for a long time, something unlikely in an increasingly unstable world, management squeezing efficiencies out of the business, a task they've battled with previously, or ticket prices going up.

In an increasingly uncertain world and the highly regulated aviation industry, I'd expect it will be passengers who pay the price of bringing profits back to where the once were.

Shares rose in early trading as energy giants took an early lead supported by higher oil prices, but the stock market is on track for a weekly decline.

The blue-chip FTSE 100 gained 0.3pc but the index is poised to post about a 1pc drop for the week.

Energy majors Shell and BP were amongst early gainers, rising 0.8pc and 1.2pc respectively, as oil prices extended gains for a second session, with the prospect of lower exports from Russia offsetting concerns over rising inventories in the United States.

The broader oil and gas sector rose 1pc.

The more domestically-inclined FTSE 250 midcap index rose 0.1pc, as shares of asset manager Jupiter Fund Management surged 13pc after its full-year results.

Cineworld cratered 39.4pc after the world's second-biggest cinema chain operator said shareholders' equity might be wiped out by its plans to exit from Chapter 11 bankruptcy protection after failing to find a buyer for the whole business.

Russia's economy will contract by 3pc this year as international sanctions become more severe, Moody's has predicted.

The credit rating agency acknowledged that the Russian economy has weathered sanctions better than it expected last year, in part due to higher prices for oil, gas and other commodities.

However, Western sanctions will hinder exports more significantly this year, it said, particularly the EU embargo on seaborne crude oil that came into effect in December.

This will hit an estimated 14pc of Russian goods exports as it combines with the EU embargo on refined oil products that came into force this month.

It said at the same time, the price cap imposed by the G7, EU and Australia on Russian oil and oil products will also curtail Russia's access to foreign exchange over time.

According to preliminary estimates, the Russian economy shrank 2.1pc last year, compared to Moody's initial forecast of a contraction of 7pc.

Jupiter Fund Management has leapt to the top of the FTSE 250 as performance fees and more resilient margins delivered pre-tax profits ahead of market expectations.

Shares in the company have risen 12.7pc as its levels of assets under management also delivered an unexpected surprise.

Its strong gains come even as it failed to stop clients yanking money from its funds for a fifth year in a row.

The London-based asset manager recorded net outflows of £3.5bn last year, although it was less than the £4.9bn estimated by analysts. 

The outflows coupled with negative investment performance dragged assets under management down 17pc to £50.2bn.

Matthew Beesley, who became the firm’s chief executive officer in October, said: "The past year has clearly been difficult, with macro-economic events significantly impacting investor sentiment and asset valuations."

Markets received a lift after Wall Street broke its longest losing streak since December with a modest rally led by tech stocks.

The FTSE 100 climbed 0.3pc to 7,928.67 while the FTSE 250 lifted 0.8pc to 19,828.41.

Germany's economy shrank more than expected at the end of 2022, putting it on course for a recession this year.

Output contracted 0.4pc, compared with a previous reading of losing 0.2pc. 

The statistics office said that a drop in capital investment and private consumption were primarily to blame, while government spending had a positive effect. 

Economists predict another negative result this quarter, which would tip the economy into a recession. 

Even so, an unusually warm winter has meant Germany dodged the gloomier scenarios feared when Russia invaded Ukraine a year ago.

Recent indicators have given reason for optimism in Germany's resilience, with Ifo and ZEW expectation gauges published earlier this week both increasing more than anticipated. 

Similarly, surveys of purchasing managers signalled private activity returned to growth this month after more than half a year of negative readings, with an easing of supply shortages and expansion in the services sector driving the rebound. 

The world's second largest cinema chain Cineworld expects to come out of bankruptcy protection in the US in the first half of this year, as it chases a rescue deal which could wipe out shareholders.

The business said that it had received a number of offers for parts of the company, but no potential buyers wanted to pay cash for the whole of the debt-ridden business.

Cineworld said today that none of the proposals it has been approached with would "provide any recovery for the holders of the company's equity interests".

However, the discussions Cineworld is having at least suggests that there is a way out of bankruptcy protection.

The deal is thought to involve handing all the company's shares to those owed money by the business.

British Airways owner IAG has said that it plans to buy the remaining 80pc of shares that it does not own in Spain's third largest airline Air Europa for €400m (£353m) as it also revealed it expects profit might double this year.

The business said that it made an operating profit before exceptional items of €1.3bn (£1.1bn), a swing from a nearly €3bn (£2.6bn) loss the year before. 

This financial year the airline expects to make between €1.8bn and €2.3bn (£1.6bn to £2bn).

Chief executive Luis Gallego said: 

With the acquisition of Air Europa now agreed but subject to regulatory and other approvals which could take
around 18 months, we are intending to welcome another leading airline to the Group. 

This acquisition will enable us to grow Madrid as a hub, offering a gateway to Latin America and beyond, with benefits for customers, employees and shareholders.

IAG chief executive Luis Gallego said: 

2022 was a year of strong recovery, driven by sustained leisure demand and markets reopening. 

At this point of the year we continue to see robust forward-bookings, while also remaining conscious of global macro-economic uncertainties. 

We are transforming our businesses, with the intention of returning IAG to pre-Covid levels of profit within the next few years, through major initiatives to improve customer experience and operational performance. 

Our unique group structure allows us to maximise revenue and cost synergies, and invest capital to achieve strong returns, whilst continuing progress towards net zero by 2050. 

British Airways owner IAG has returned to profit after the ravages of the pandemic years but has opted against returning a dividend to shareholders.

The airline operator said it made a strong recovery in its core markets as Covid restrictions were lifted, with revenues surging to £23bn in 2022 from £8bn the year before.

It returned to an operating profit of nearly €1.3bn (£1.1bn), compared to losses of nearly €3bn (£2.6bn) in 2021.

Operating profit before exceptional items is expected to be in the range of €1.8bn to €2.3bn (£1.6bn to £2bn) this year.

However, the company said it remained "mindful of uncertainty" in the macro economic environment caused by inflation.

Linda Ellett, UK head of retail and leisure consumer markets for KPMG, was more pessimistic about the economy despite the unexpectedly positive consumer confidence data. She said: 

Household budgets are squeezed by higher prices, with energy, broadband and mobile phone costs set to rise for many households in April. Despite the uptick in consumer confidence, levels remain low overall.

With no end in sight to this higher cost landscape, many consumers continue to take steps to reduce spend where they can, switching where they shop, what they buy, whilst also cutting back on some activities, such as eating out and takeaways.

Despite those steps, nearly half of consumers surveyed by KPMG say they are using savings to help meet their higher essential costs, whilst one in 10 are using credit more.

Consumer confidence has made a surprise rebound from historic lows despite ongoing cost-of-living woes, figures show.

GfK's long-running consumer confidence index rose by a significant seven points in February, although the headline score remains at a "severely depressed" negative 38.

Confidence in the general economic situation over the next 12 months is up by 11 points but remains at negative 43 and on a par with last February.

Confidence in personal finances looking ahead to the next year increased by nine points to negative 18, which is four points lower than this time last year.

The major purchase index, an indicator of confidence in buying big ticket items, is up three points to negative 37 - 22 points lower than a year ago.

The overall uptick follows the index falling three points to a near-historic low of negative 45 in January amid inflation woes and growing concern about another jump in energy bills.

Joe Staton, client strategy director at GfK, said the unexpected rebound in consumer confidence "might be what we need to soften any downturn in 2023". He said:

Despite widely reported headwinds of inflation continuing to outstrip wage rises, and the ongoing household challenge from the cost-of-living crisis, consumers have suddenly shown more optimism about the state of their personal finances and the general economic situation, especially for the coming year.

While it's too early to talk about 'green shoots of recovery', the uptick across all measures should be welcomed.

The headline consumer confidence score is still severely depressed and the mood as well as the economy remains a long way off pre-lockdown levels, but a little consumer resilience might be what we need to soften any downturn in 2023.

Household confidence in Britain bounced back by the most in nearly two years in February amid the first signs that inflation is beginning to ease.

GfK's consumer confidence indicator jumped seven points to a minus 38 after inflation fell for a third straight month to 10.1pc in January. 

5 things to start your day 

1)  Hunt warned his tax raid risks wrecking green shoots of recovery | Corporation tax increase will reverse surprise increase in consumer confidence, experts say

2) Rationing is back because we failed to learn the lessons of Covid | The fruit and veg shortage has once again exposed Britain's over-reliance on its neighbours

3) Britain risks squandering lead in mini-nukes race, warns Rolls-Royce |Ministers urged to throw their support behind key project

4) Energy bosses attack Lords for ‘unevidenced’ claims on hydrogen | Intervention comes after committee claimed heat pump rollout is being undermined

5) Why are UK supermarkets rationing fruit and vegetables? | Tesco, Aldi, Asda and Morrisons all face weeks of shortages as they limit purchases

What happened overnight 

 Asian share markets were dragged lower by the slide in Chinese stocks, though investors took heart from the incoming head of Japan's central bank ruling out an early end to super-easy monetary policy, nudging bond yields lower globally.

During a lower house confirmation hearing, Kazuo Ueda, who will take over as governor of the Bank of Japan (BOJ) in April, said the central bank must maintain ultra-low interest rates to support the fragile economy, warning of the dangers of responding to cost-driven inflation with monetary tightening.

Japan's five-year government bond yield fell to 0.235pc, from the previous close of 0.240pc, while the 20-year yields eased two basis points to to 1.28pc.

Tokyo stocks closed higher after the comments. The benchmark Nikkei 225 index gained 1.3pc, to end at 27,453.48, while the broader Topix index climbed 0.7pc to 1,988.40.

Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8pc, heading for a hefty weekly drop of 2pc.

In particular, Chinese blue chips tumbled 1pc and Hong Kong's Hang Seng Index dropped 1.3pc while Australia's resources-rich shares edged up 0.3pc.

US stocks shook off a midday slump and ended higher after a rollercoaster session.

The S&P 500 climbed back above 4,000, after finishing 0.5pc higher at 4,012.32 - ending its four-day slide. The Dow Jones Industrial Average reversed its losing streak too, finishing 0.3pc higher at 33,153.91.

The tech-rich Nasdaq Composite also grew 0.7pc to 11,590.40, lifted by tech stocks Microsoft, Apple and particularly AI chipmaker Nvidia which posted better-than-expected revenue forecasts.

The yield on 10-year Treasuries declined four basis points to 3.87pc on Thursday, as revised data showed that US economic growth in the fourth quarter was weaker than initially estimated.