An early rise in interest rates has been all but confirmed after the most dovish of the Bank of England's nine policymakers revealed yesterday that he expects to vote for an increase by May of next year. In words that underscored the governor's surprise statement last Thursday that rates could rise "sooner than markets currently expect", David Miles, an external member of the Monetary Policy Committee, signalled that he would vote for an increase before his term ends in 11 months' time. - The TimesVoters in Britain have grasped that an economic recovery is under way, but precious few are feeling the benefit, according to a Guardian/ICM poll that shines a spotlight on the anxiety of a nation. A majority of the public (56%) accept that the economic recovery is real, but fewer than one in five voters, just 18%, say their families are benefiting. However, if the initial findings appear to validate Ed Miliband's focus on the cost of living, when asked what underlies their economic uncertainty, voters point the finger at immigrants undercutting employment terms and conditions more than anything else. - The GuardianThe prospect of an imminent cut in British household energy bills has been scuppered after Russia cut off gas supplies to Ukraine, triggering fears of a European energy crisis. Wholesale gas prices in the UK jumped 6% yesterday after Gazprom announced that it would only supply Ukraine if it received payment upfront. With Ukraine unable or unwilling to pay, Gazprom confirmed that it had stopped delivering gas. - The Times Britain's biggest oil majors, BP and Shell, will unveil multi-billion pound agreements to supply liquefied natural gas (LNG) to China in two of the biggest deals to be announced by David Cameron and Premier Li Keqiang today. BP is expected to announce a deal worth more than £5bn LNG deal as part of Beijing's drive to reduce its carbon emissions. Shell has secured an agreement with the state-owned energy giant, China National Offshore Oil Corporation (CNOOC), to work on projects around the world, including LNG. - The Daily TelegraphMoody's has increased the pressure on Tesco by cutting the credit rating of Britain's biggest retailer after its worst trading period in decades. The ratings agency blamed last year's profit fall, weak sales in the first quarter of this year and an increase in Tesco's pension deficit for the cut, and said it expected the conditions to bear down on Tesco's profit margins and affect its credit quality for the next 12-18 months. Moody's cut its rating on Tesco's long-term debt to Baa2 from Baa1. The agency said the firm's difficulties meant debt levels were unlikely to improve enough to justify the earlier higher rating. - The GuardianHe is not a man known for his patience, but Sir Philip Green yesterday shrugged off a mistake by City advisers that briefly marred his return to the public markets after a two-decade absence. Shares in MySale, the Australian online flash sale retailer that he backed, fell sharply on their debut after the stock was mistakenly priced in pounds rather than pence by corporate financers at Macquarie, the stock broker sponsoring the issue. When trading kicked off at 8am, MySale appeared to be priced at 2.26p, instead of 226p. - The Times The US Supreme Court has declined to hear Argentina's appeal over its battle with hedge funds that refused to take part in its debt restructurings, an unexpected move that risks toppling the Latin American country into a new default. The high court left intact lower court rulings that ordered Argentina to pay $1.33bn to the so-called holdouts who refused 2005 and 2010 debt swaps in the wake of its catastrophic 2001-02 default on $100bn. This could open the door to claims from other holdouts worth as much as $15bn, a hefty sum for a slowing economy struggling with rapidly dwindling foreign reserves. - The Daily TelegraphAB
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