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Pound hits two year low on Brexit fears - business live Pound hits two year low on Brexit fears - business live
(35 minutes later)
3.30pm GMT
15:30
After the select committee meeting with EDF on a new nuclear plant at Hinckley Point, one of its MPs James Heappey has called on the French government to formally confirm the timetable for them to refinance the business. Heappey said:
This morning’s evidence session was hugely frustrating. EDF CEO Vincent de Rivaz opened by saying ‘categorically’ that Hinkley C would go ahead and seeming to confirm that a final investment decision would come in ‘early May’. But when pressed to confirm that date, he refused to do so.
It is clear from his responses to our questions that despite EDF’s undoubted commitment to Hinkley, the final decision on the project is entirely in the hands of President Hollande and the French Government.
Whatever EDF might want to do, they just don’t have the cash to do this unless the French Government agree to their re-capitalisation. EDF clearly expect this to be agreed by May but the UK Government must now seek further assurances from Paris that this timeline is realistic.
Here is our report on the committee hearing:
Related: EDF refuses to set timetable for decision on Hinkley Point reactor
2.40pm GMT2.40pm GMT
14:4014:40
Oil falls on higher than expected US inventory figuresOil falls on higher than expected US inventory figures
Crude prices, which have been supported by hopes that a meeting of producers next month can agree to freeze output to cope with the supply glut, have slipped back after new US inventory figures.Crude prices, which have been supported by hopes that a meeting of producers next month can agree to freeze output to cope with the supply glut, have slipped back after new US inventory figures.
US crude inventories rose by a much larger than forecast 9.4m barrels last week, more than three times higher than expected. Refineries cut output and imports jumped, adding to the crude stocks.US crude inventories rose by a much larger than forecast 9.4m barrels last week, more than three times higher than expected. Refineries cut output and imports jumped, adding to the crude stocks.
But gasoline stocks fell by 4.6m barrels compared to expectations of a 1.5m decline.But gasoline stocks fell by 4.6m barrels compared to expectations of a 1.5m decline.
And crude stocks at the Cushing delivery hub in Oklahoma dropped by 1.26m barrels, the first fall in seven weeks.And crude stocks at the Cushing delivery hub in Oklahoma dropped by 1.26m barrels, the first fall in seven weeks.
EIA Weekly Oil Inventories (Mar 18)Crude +9.36 Mln v +2.53 Mln exp, prev +1.32 MlnCushing -1.26 Mln v +0.34 Mln exp, prev +0.55 MlnEIA Weekly Oil Inventories (Mar 18)Crude +9.36 Mln v +2.53 Mln exp, prev +1.32 MlnCushing -1.26 Mln v +0.34 Mln exp, prev +0.55 Mln
The news has helped send Brent crude down 2.5% to $40.73 a barrel.The news has helped send Brent crude down 2.5% to $40.73 a barrel.
2.32pm GMT2.32pm GMT
14:3214:32
Over in the US , and new home sales rose 2% in February after a 7% fall in the previous month.Over in the US , and new home sales rose 2% in February after a 7% fall in the previous month.
But this was lower than the expected 3% rise, and sales fell in three of the main regions, with only the West seeing an increase, which took some of the gloss off the figures.But this was lower than the expected 3% rise, and sales fell in three of the main regions, with only the West seeing an increase, which took some of the gloss off the figures.
February sales rose to an annual rate of 512,000 compared to 502,000 in the previous month. The January figure was revised upwards from 494,000.February sales rose to an annual rate of 512,000 compared to 502,000 in the previous month. The January figure was revised upwards from 494,000.
On Wall Street, markets have taken the data in their stride, with the Dow Jones Industrial Average down just 20 points.On Wall Street, markets have taken the data in their stride, with the Dow Jones Industrial Average down just 20 points.
2.17pm GMT2.17pm GMT
14:1714:17
Here’s the opinion poll that is hitting sterling:Here’s the opinion poll that is hitting sterling:
#Remain leads #Leave by 7 points in latest ComRes poll for @itvnews Remain: 48%Leave: 41%Don't know: 11% pic.twitter.com/XFW2wFSShX#Remain leads #Leave by 7 points in latest ComRes poll for @itvnews Remain: 48%Leave: 41%Don't know: 11% pic.twitter.com/XFW2wFSShX
The polling was taken last week, on 16 March.The polling was taken last week, on 16 March.
UpdatedUpdated
at 2.18pm GMTat 2.18pm GMT
2.15pm GMT2.15pm GMT
14:1514:15
Sterling has just hit its lowest level against a basket of other currencies in more than two years. Thats’s via Reuters, who are citing data from the Bank of England.Sterling has just hit its lowest level against a basket of other currencies in more than two years. Thats’s via Reuters, who are citing data from the Bank of England.
2.09pm GMT2.09pm GMT
14:0914:09
Back to the other story of the morning... worries about the UK EU referendum.Back to the other story of the morning... worries about the UK EU referendum.
The pound is continuing to drop today, now down almost one cent against the US dollar at $1.4113.The pound is continuing to drop today, now down almost one cent against the US dollar at $1.4113.
This latest weakness is triggered by a new telephone poll from Comres, just released, which shows the Remain campaign with 48% of support, and Leave on 41%. That’s the narrowest lead since the general election of May 2015, according to Reuters.This latest weakness is triggered by a new telephone poll from Comres, just released, which shows the Remain campaign with 48% of support, and Leave on 41%. That’s the narrowest lead since the general election of May 2015, according to Reuters.
That follows the spike in sterling volatility we covered this morning, driven by new worries about Brexit.That follows the spike in sterling volatility we covered this morning, driven by new worries about Brexit.
1.46pm GMT1.46pm GMT
13:4613:46
There’s drama in the UK courts todayThere’s drama in the UK courts today
Tom Hayes, the only person jailed in the UK for conspiring to rig the Libor rate, has been ordered to pay $1.25m, or £878k, after a ‘proceeds of crime’ hearing.Tom Hayes, the only person jailed in the UK for conspiring to rig the Libor rate, has been ordered to pay $1.25m, or £878k, after a ‘proceeds of crime’ hearing.
It’s likely that Hayes, and wife Sarah, will now be forced to sell their house in Surrey.It’s likely that Hayes, and wife Sarah, will now be forced to sell their house in Surrey.
Related: Jailed Libor trader Tom Hayes must pay £878,000Related: Jailed Libor trader Tom Hayes must pay £878,000
Over at Westminster magistrates court, the alleged “flash crash trader” Navinder Singh Sarao has been told he can be extradited to the US.Over at Westminster magistrates court, the alleged “flash crash trader” Navinder Singh Sarao has been told he can be extradited to the US.
Sarao is accused of causing market turmoil on Wall Street in 2010, which briefly wiped 1,000 points off the Dow Jones industrial average.Sarao is accused of causing market turmoil on Wall Street in 2010, which briefly wiped 1,000 points off the Dow Jones industrial average.
From court, Rob Davies has the details:From court, Rob Davies has the details:
District judge Quentin Purdy at Westminster magistrates court on Wednesday ruled that Sarao’s alleged actions constituted a crime in the UK.District judge Quentin Purdy at Westminster magistrates court on Wednesday ruled that Sarao’s alleged actions constituted a crime in the UK.
The ruling means Sarao, 37, can be sent to the US to answer 22 counts of wire fraud, commodities fraud and market manipulation carrying a maximum sentence of 380 years’ imprisonment.The ruling means Sarao, 37, can be sent to the US to answer 22 counts of wire fraud, commodities fraud and market manipulation carrying a maximum sentence of 380 years’ imprisonment.
Sarao’s lawyer Richard Egan said: “We’re very disappointed. We definitely will be appealing. We think we’ve got a strong argument.”Sarao’s lawyer Richard Egan said: “We’re very disappointed. We definitely will be appealing. We think we’ve got a strong argument.”
Related: 'Flash crash trader' can be extradited to US, judge rulesRelated: 'Flash crash trader' can be extradited to US, judge rules
1.27pm GMT1.27pm GMT
13:2713:27
Energy and climate change committee member James Heappey shares our view of today’s hearing:Energy and climate change committee member James Heappey shares our view of today’s hearing:
After @CommonsECC #Hinkley session we know EDF want to do it but entirely in hands of French Govt. Their help v likely but not yet certain.After @CommonsECC #Hinkley session we know EDF want to do it but entirely in hands of French Govt. Their help v likely but not yet certain.
1.04pm GMT1.04pm GMT
13:0413:04
Good news for fans of British Home Stores.Good news for fans of British Home Stores.
The UK retailer has been rescued from closure, after its creditors voted in favour of the department store chain’s survival plan.The UK retailer has been rescued from closure, after its creditors voted in favour of the department store chain’s survival plan.
My colleague Graham Ruddick has the details:My colleague Graham Ruddick has the details:
Landlords, suppliers and other creditors approved the 88-year-old retailer’s company voluntary arrangement (CVA), an insolvency procedure, at a vital meeting in a hotel in west London on Wednesday.Landlords, suppliers and other creditors approved the 88-year-old retailer’s company voluntary arrangement (CVA), an insolvency procedure, at a vital meeting in a hotel in west London on Wednesday.
The approval of the CVA secures the short-term future of BHS’s 10,000 staff and 164 stores. However, the company still needs to restructure its pension scheme, which has a deficit of £571m and is likely to enter the Pension Protection Fund, and raise £100m so it can continue trading and fund a turnaround plan that includes modernising its shops and product range.The approval of the CVA secures the short-term future of BHS’s 10,000 staff and 164 stores. However, the company still needs to restructure its pension scheme, which has a deficit of £571m and is likely to enter the Pension Protection Fund, and raise £100m so it can continue trading and fund a turnaround plan that includes modernising its shops and product range.
The CVA involves landlords accepting sharp cuts to the rent on 87 of BHS’s 164 shops. As many as 40 of these shops could close in the next few months if a deal on the size of the rent reduction cannot be reached with property owners.The CVA involves landlords accepting sharp cuts to the rent on 87 of BHS’s 164 shops. As many as 40 of these shops could close in the next few months if a deal on the size of the rent reduction cannot be reached with property owners.
Related: BHS creditors approve rescue planRelated: BHS creditors approve rescue plan
12.50pm GMT12.50pm GMT
12:5012:50
Greenpeace chief scientist Doug Parr, who pointed to flaws in the Hinkley C project this morning, has issued a statement heavily criticising the situation:Greenpeace chief scientist Doug Parr, who pointed to flaws in the Hinkley C project this morning, has issued a statement heavily criticising the situation:
“This morning the committee began to come to terms with the fact that the UK’s energy policy has been annexed by EDF. It became very clear that Hinkley is dependant on the French state and the enthusiasm of the French and Chinese nuclear industries.“This morning the committee began to come to terms with the fact that the UK’s energy policy has been annexed by EDF. It became very clear that Hinkley is dependant on the French state and the enthusiasm of the French and Chinese nuclear industries.
This has distorted our national infrastructure planning, and has led to the UK government undermining our nascent but booming renewable energy businesses and scaring off investment. It is unconscionable that in reality the decisions pending about the future of our energy system and whether the UK meet our future carbon targets are in the hands of the French Economy Minister.”This has distorted our national infrastructure planning, and has led to the UK government undermining our nascent but booming renewable energy businesses and scaring off investment. It is unconscionable that in reality the decisions pending about the future of our energy system and whether the UK meet our future carbon targets are in the hands of the French Economy Minister.”
12.45pm GMT
12:45
Snap summary: The Hinkley Show rolls on
What have we just learned about Britain’s biggest nuclear power project in decades?
1) EDF are still committed. Despite the shock resignation of its CFO, and concerns over its own finances, France’s energy company is still planning to build Britain a new nuclear power station at Hinkley.
CEO Vincent de Rivaz insists that the controversial project is a good deal for all sides, and can be delivered. In a prepared statement, he said:
I will start by saying, clearly and categorically, that Hinkley Point C will go ahead.
That’s good news for the UK. It has been a long road. The project has successfully passed a huge number of regulatory, commercial and operational milestones.
EDF has already invested £2.4bn, and is spending another £55m per month.
Vincent de Rivaz, CEO @EDFEnergy speaking about #Hinkley Point C @CommonsECC pic.twitter.com/FHna7nLfIn
2) But the project is in the French government’s hands, rather than MPs in Westminster.
De Rivaz consistently failed to commit to signing a final investment decision in May. Why? Because he’s waiting for French ministers to agree a bailout for the company.
Emmanuel Macron, the French economy minister, is effectively deciding whether Britain embarks on the Hinkley project.
Conservative MP James Heappey summed the situation up, in this exchange.
If the French government doesn’t commit to that recapitalisation [of EDF], you can’t build us a power station because you’ve not got the cash.
.@JSHeappey: When will you take final Hinkley investment decision? De Rivaz says very soon. Cannot give precise date pic.twitter.com/xIonFdKBpo
3) Confidence isn’t enough. The committee shone a light on the nuclear industry’s black spots - plants are very difficult to build safely, and expensive to decommission afterwards.
Committee chair Angus MacNeil pointed to other projects where executive confidence has been followed by problems on the ground.
France’s troubled Flamanville nuclear project loomed over today’s session, given the problems with its reactor vessel. De Rivaz insisted that lessons have been learned, but that’s easier to say than prove.....
.@AngusMacNeilSNP EPR being built in Finland is 9 yrs behind & 5.2bn over budget. Flamanville 6 yrs late & 7.2bn ovr pic.twitter.com/Zqyev1DfxV
4) The climax is looming. While uranium has a half-life of 4.468bn years, the Hinkley C drama could be intensifying in just a few weeks. If EDF doesn’t sign on the dotted line to build Hinkley in early May, then the whole future of the project will be in serious doubt.
That would please many campaigners - such as the three experts who told MPs this morning that Hinkley is a bad deal and best abandoned. But I suspect it would prove career-limiting for de Rivaz.
Our environment editor Damian Carrington sums up today’s hearing:
My summary of @CommonsECC session: The #hinkley #nuclear emperor remains fully and resplendently clothed, says EDF
Updated
at 1.32pm GMT
12.06pm GMT
12:06
Energy committee threaten to recall EDF
The session ends with chairman Angus MacNeil saying the committee has heard EDF’s confidence about Hinkley “loud and clear.”
But they want to see action – a final investment decision on Hinkley by early May.
So it that doesn’t happen, and the Hinkley project isn’t in the Queens speech on May 18, Vincent de Rivaz and colleagues could be hauled back to parliament to explain themselves.
"If Hinkley C is not in Queen's Speech on 18 May, @CommonsECC reserves right to recall EDF", says @AngusMacNeilSNP pic.twitter.com/gJ8zE2nnSl
11.59am GMT
11:59
The committee turn to China’s Taishan nuclear power station, which is using similar technology as Hinkey C.
Q: When will Taishan be up and running?
China General Nuclear’s Zhu Minhong says it will definitely start operations in 2017.
Q: So why is it moving so much faster than Hinkley?
EDF’s Humphrey Cadoux-Hudson says Taishan has benefitted from some of the lessons learned at France’s Flamanville.
11.51am GMT
11:51
The committee are concerned about problems at the Flamanville nuclear power plant in France - will they affect Hinkley?
Humphrey Cadoux-Hudson, managing director for Nuclear New Build at EDF, says that engineers are already addressing concerns about Flamanville. Lessons can be learned for Hinkley.
[Background: back in April, the French nuclear regulator discovered flawed steel in EDF’s reactor in Flamanville]
#hinkley EDF says reactor pressure vessel will be made using diff process to flawed ones at Flamanville > so another "first of a kind"?
The Hinkley reactor pressure vessel is not made yet, so chances can be made if necessary, Cadoux-Hudson adds.
Q: Has a power station similar to Hinkley C been build before?
Cadoux-Hudson says not; Hinkley has taken lessons from Flamanville, and also from Japan’s Fukushima.
EDF say no EPR #nuclear reactors like #Hinkley operating in the world because thry take time & cutting edge. Or maybe because they're crap.
11.40am GMT
11:40
Labour’s Matthew Pennycook MP isn’t impressed with what he’s hearing this morning.
He tells the energy chiefs that:
If this power station was fuelled on confidence and passion it would be up and running, but it’s not.
11.38am GMT
11:38
The committee ask Zhu Minhong of China General Nuclear, EDF’s partner in the project, when he expects Hinkley to be signed off.
Zhu explains that CGN are happy to be involved in Hinkley, concluding that:
We are confident to say that this project will go ahead.
11.35am GMT
11:35
MP: Hinkley's future is in France's hands
Angus MacNeil, the committee chairman, nails it:
Isn’t the future of Hinkley Point C in the hands of the French government?
De Rivaz says the project is in “good hands” (sparking some tittering in the committee room).
He argues that the French government should be closely involved, as he is EDF’s major shareholder.
Updated
at 11.59am GMT
11.32am GMT
11:32
Conservative MP James Heappey moves in for the kill.
Heappey tells Vincent de Rivaz that he knows why EDF can’t give a categorical pledge to make the final investment decision in early May.
It’s because the French government is set to decide in early May on whether to recapitalise EDF.
Heappey says:
If the French government doesn’t commit to that recapitalisation, you can’t build us a power station because you’ve not got the cash.
De Rivaz repeats that he is fully confidence that the project will go ahead.
Heappey says it is “extraordinary”, given that confidence, that EDF won’t commit to make the final investment decision in early May. It doesn’t make sense to anyone, he adds.
Here’s our story about the possible recapitalisation of EDF:
Related: France agrees bailout for EDF to proceed with Hinkley Point C
11.24am GMT
11:24
The committee are concerned about the cost of (eventually) decommissioning Hinkley Point C. Is enough money being put aside?
De Rivaz says this cost is fully recognised in the contract -- it’s “an example of us and the UK government behaving in a responsible way”.
EDF will put money aside 'like a pension' to pay for decommissioning of Hinkley and says it will not be a cost to the UK taxpayer
EDF: Funding for #Hinkley decommissioning included in financial model. "It's very positive", says boss.
But MPs point out that the cost of cleaning up previous projects, such as Windscale/Sellafield has been massively higher than expected.
We’re in as different world today, De Rivaz insists. “What has been done badly in the past will not be done badly again”
11.20am GMT
11:20
Q: How much is Hinkley Point C actually going to cost? EDF say £18bn, but other estimates say £24.5bn
De Rivaz says the construction cost is £18bn. The larger figure comes from the European Union, and relates to another way by which the project could have been financed.
Q: It’s disappointing that you can’t tell us more about the discussions with the French government about new financial support for EDF. Can you assure us that they won’t be passed onto UK taxpayers in some way?
De Rivaz says various options are being discussed, including:
None of them would impact the UK taxpayer, he promises.