Tight labour market will force interest rate rise, says Bank official

Good morning. 

Oil has entered a downward slide this morning amid growing speculation that the US will tap into its strategic reserves.

Joe Biden’s administration is thought to have thrashed out a plan with Asian consumers to beef up supply in the market in an effort to tame prices after Opec repeatedly rebuffed calls for higher output.

The move sets up a potential stand-off between producers and consumers, as the two sides battle for control of the global oil market.

5 things to start your day 

1) Light at the end of the tunnel for Crossrail property speculators  Suburban house prices are growing faster compared to the City as the new line begins its ‘dress rehearsal’

2) Attack on the City puts EU competitiveness at risk  Brussels is under fire for making finance companies set up subsidiaries within the single market

3) Paul Dacre returns to Daily Mail publisher as editor-in-chief  Veteran editor makes surprise comeback after withdrawing from the race to become Ofcom chairman

4) John Lewis takes aim at ‘throwaway’ culture in retail sector  Retailer to offer grants of up to £300,000 to the most innovative ideas that challenge the industry’s ‘outdated’ approach

5) British Airways customers bemoan yet another IT mishap  Airline’s Executive Club website was offline for almost 10 days after planned maintenance took far longer than expected

What happened overnight 

Asian stocks were mostly lower on Tuesday, tracking a retreat on Wall Street after President Joe Biden picked Federal Reserve chair Jerome Powell to lead the central bank for a second term, reinforcing expectations the US will taper its stimulus soon.

MSCI’s gauge of Asia Pacific stocks outside Japan fell 0.49pc, while Hong Kong’s Hang Seng Index and China’s benchmark CSI300 Index opened 1.1pc and 0.2pc lower, respectively.

Australia’s S&P/ASX 200 outperformed with a 0.55pc gain, boosted by miners and energy stocks. Japanese markets were closed for a public holiday.

Coming up today

• Corporate: Compass (Full-year results); AO World, Cranswick, Pets At Home, Severn Trent, Victoria (Interims)
• Economics: PMIs (UK, EU, US); GDP (Ger)