There is another unwelcome reminder of the cost of living crisis this morning as new data from the ONS showed real incomes fell at their fastest pace in eight years in December.
Adjusted for inflation, the average salary excluding bonuses fell by 1.2 pc. This is the biggest drop since 2014.
In addition, pressure on disposable income is expected to increase, with higher energy bills, tax hikes and further interest rate hikes, which will put further pressure on household budgets in spring.
5 things to start your day
1) Taxman opens 20 investigations into crypto assets: HMRC has opened over 20 criminal investigations involving crypto assets such as Bitcoin
2) The low-cost company Wizz applies for a transatlantic license: Budget airline Wizz Air is planning its first transatlantic flights, The Telegraph can reveal
3) City councilors prepare for sanctions against Kremlin-controlled Gazprom: The city’s bankers, lawyers and PR consultants plan to cut ties with Kremlin-controlled energy giant Gazprom, fearing it could face sanctions
4) Sadiq Khan hits commuters with the biggest increase in subway fares in over a decade: Mayor blames TfL funding crisis for raising Tube fares by 4.8% and bus fares by 6.5%
5) Moderna set to strike deal for UK vaccination centre: US biotech in advanced talks with ministers over opening UK vaccine research and manufacturing facility
What happened overnight
Asian markets mostly fell again on Tuesday, extending a global selloff fueled by fears that Russia is about to invade Ukraine. Hong Kong, Sydney, Seoul, Wellington and Manila fell, but Shanghai, Taipei and Jakarta rose slightly. Tokyo plunged as investors brushed off data showing Japan’s economy rebounded in the last three months of 2021.
Business : Glencore, Plus500 (annual results)
Economy: Unemployment (UK), change in the number of applicants (UK), average salary (UK), GDP (EU), ZEW economic sentiment (EU), producer price index (United States)