Bloomberg reports that UK businesses will get their energy bills cut in half in a government bailout package.
The market has been assuming that some kind of business bailout was coming and I'm not sure this is good enough. Consumer bills will be capped at £2500 and that same largess was never going to come to businesses but I suspect more than this was anticipated.
I've been arguing that we're starting to see the covid playbook from governments, where they take on all the financial risk of the crisis rather than letting businesses and consumers suffer. Instead, it's evolving into more of a covid-lite approach. Given that central banks are also raising rates and hurting the economy, it might not be enough to stave off a tough recession.
Cable is largely unmoved on this news but earlier today it trade to the lowest since 1985.
