Here are the stories making the business headlines across Scotland and the UK this morning.
Higher energy bills forecast for UK households next year
UK households could face higher energy bills next year, after a leading forecaster said electricity market prices will rise in 2024 – and remain well above pre-energy crisis levels for the rest of the decade.
Analysts at Cornwall Insight predicted that Britain’s wholesale power prices would rise from an average of £96.64 per megawatt-hour so far this year to £129/MWh next year, due to higher gas prices triggered by the war in Ukraine.
The analysis was undertaken based on the commodity futures markets at the end of September. Since then, gas and electricity markets have climbed further due to fears that the Israel-Hamas war could pose a risk to oil and gas supplies.
Electricity prices were also forecast to stay elevated until the end of the decade, remaining at least 60% higher than they were in 2021 before the global economic recovery from the Covid-19 pandemic caused markets to climb.
Cap on bank bonuses to be scrapped
The cap on bankers’ bonuses is to be removed next week as part of post-Brexit changes to City rules, the financial regulator has confirmed.
The scrapping of the cap was first revealed last year by Kwasi Kwarteng when he was the chancellor. It aims to take advantage of the UK’s freedom to make its own rules after leaving the European Union and increase the competitiveness of the City.
The Financial Conduct Authority (FCA) and Bank of England’s Prudential Regulatory Authority (PRA) confirmed that the bonus cap would be lifted on October 31.
The cap was introduced in 2014 to deter bankers from the type of risky behaviour that caused the 2008 financial crisis. Under the rules, bonuses have been limited to twice the base rate of pay for employees of banks and building societies.
World at ‘tipping point’ following government debt binges, says HSBC boss
The world is at a “tipping point” on debt that threatens to spark a global reckoning after years of government borrowing binges, the boss of HSBC has warned.
Noel Quinn, chief executive of the bank, which is one of the world’s biggest, said countries risked being “hit hard” after allowing borrowing to balloon in the wake of the financial crisis and pandemic.
Speaking at the Future Investment Initiative Institute’s summit in Saudi Arabia, known as Davos in the Desert, Mr Quinn said the current rate of borrowing was unsustainable.
He said: “I’m concerned about a tipping point on fiscal deficits. When it comes, it will come fast and I think there are a number of economies in the world where there could be a tipping point and it will hit hard.”
Tsingtao: Chinese brand responds after man filmed urinating in beer vats
A man was seen urinating into a vat at a Tsingtao beer factory, with the brand now opening a probe into the incident.
Video shows a man dressed in a hard hat and blue overalls climbing down into a malt container at the Chinese beer factory in Pingdu, unzipping his trousers and relieving himself.
Tsingtao, which describes itself as the sixth-largest global beer maker, said they have sealed all batches linked to the incident.
They said in a statement: "Our company attaches high importance to the relevant video that emerged from Tsingtao Brewery No. 3 on 19 October.
"We reported the incident to the police at the earliest opportunity, and public security organisations are involved in the investigation.
"At present, the batch of malt in question has been completely sealed. The company continues to strengthen its management procedures and ensure product quality."