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Sunday newspaper round-up: Energy sector, EdF, Fracking

(Sharecast News) - Industry sources are warning that the energy sector needs to know the details of the new Prime Ministers' plans to support businesses in order for them to take effect during the next winter. The government has indicated that a more complete plan for businesses will be announced as soon as possible. In another development, Centrica chief executive officer, Chris O'Shea, voiced support for using contracts for difference for long-term electricity prices as part of efforts to ensure lower prices for consumers over the years ahead. - The Sunday Telegraph France's EdF is in talk with ministers regarding a voluntary limit on prices for its electricity. Ministers have promised that they will break the long-standing link between the price of low-cost energy, including that generated by wind and nuclear power, and that for natural gas, which has surged in the wake of the Russian invasion of Ukraine. EdF runs the UK's five remaining nuclear plants. Nonetheless, EdF's managing director, Matt Sykes, said EdF's output for the year ahead had already been sold at much lower prices than the going rate for gas. That, he explained, meant that the company had not benefitted from high, short-term prices. - Sunday Times

Fracking, the process by which shale gas is extracted, may overtake production from the North Sea within the next 15 years after the new Prime Minister lifted a controversial ban. According to data from National Grid, fracking's contribution to meeting the country's energy needs may match that of the North Sea by 2037 and then go on to surpass it during the following year. And Liz Truss has claimed that fracking may start making a contribution within six months, meaning that its peak production may be reached far sooner. - Financial Mail on Sunday

The Bank of England under Governor Andrew Bailey helped stabilise the UK economy amid the onset of the Covid-19 pandemic. With Bailey just days into the job, Bank launched its biggest round of quantitative easing ever, to the tune of £200bn. This time around however, the relationship between the BoE and Whitehall looks very different. Bank is selling bonds even as the new PM plans to raise as much as £200bn to help limit the impact of the energy crisis.- The Sunday Telegraph

Air carriers are heading into a bleak winter in the wake of the end of government support, analysts at Bernstein warn. A string of failures is possible should travellers cut back on flying amid higher household bills, they said. Adding to the sector's woes, autumn tends to be painful for companies in the sector regardless. That is because of the need to settle bills even as demand dwindles. Central and Eastern European carriers are at the highest risk, they added. RyanAir on the other hand was best placed to ride out the storm, followed by EasyJet, Jet2, IAG and TUI, in that order. - Financial Mail on Sunday

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(Sharecast News) - Syrian President Bashar al-Assad's regime appeared to collapse on Sunday morning, after rebels entered the capital Damascus. Assad's whereabouts are not clear but Moscow or Tehran are possibilities. One source told Reuters that Assad's plane disappeared off the radar when it was headed towards the country's coastal region. It made an abrupt turn before vanishing from the map. The pilot may have turned off the transponder but it's more likely that it was shot down. - Sunday Times
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(Sharecast News) - Ten years ago, marketing executives at Britain's biggest supermarket had a brainwave: might slashing the price of basic vegetables tempt shoppers to do their Christmas shop with them? Tesco, under chief executive Dave Lewis, was trying to revive a business reeling after falling sales, five profit warnings and an accounting scandal. That promotion in December 2014, dubbed its Festive Five, offered bags of carrots, potatoes, brussels sprouts, parsnips and a cauliflower for 49p each. - Guardian
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(Sharecast News) - Ministers are considering renationalising British Steel in a last-ditch attempt to save thousands of jobs, amid a standoff between the government and the company's Chinese owners over a £1bn investment. Jonathan Reynolds, the business secretary, is locked in talks with British Steel and its owner, Jingye, to agree how much each party should put into a rescue plan for its main Scunthorpe site. - Guardian
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(Sharecast News) - Ministers are considering renationalising British Steel in a last-ditch attempt to save thousands of jobs, amid a standoff between the government and the company's Chinese owners over a £1bn investment. Jonathan Reynolds, the business secretary, is locked in talks with British Steel and its owner, Jingye, to agree how much each party should put into a rescue plan for its main Scunthorpe site. - Guardian

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