Business
Household energy bill drop ‘short-lived respite’ amid fears of July hike
Household energy prices are falling by 7% from Wednesday in a “short-lived respite” for households already braced for a predicted 18% hike from July.
Ofgem’s price cap has dropped from £1,758 to £1,641 – a reduction of £117 or around £10 a month for the average household using both electricity and gas.
This is an 11% fall year on year, but still £600 more than bills were in the winter of 2020 to 2021.
The reduction is lower than the average £150 cut to bills pledged by the Chancellor in November, when she moved 75% of the cost of the renewables obligation from household bills onto general taxation and scrapped the energy company obligation (Eco) scheme.
And it comes amid increasing concern about the amount energy bills could rise by from July as a result of the Middle East conflict, with latest predictions from Cornwall Insight suggesting this could be 18% or £288 a year – to almost £900 above pre-crisis levels.
In the meantime, consumer groups have urged households to send in meter readings to ensure their energy usage is billed at the lowest possible rate, and investigate fixed rate deals if they remain on their firm’s standard variable rate.
A spokesman for Energy UK, which represents firms, said: “Suppliers are required to set direct debits as accurately as possible based on the best and most current information available.
“So – as well as factors like current balance, payment record and previous energy usage – this will also include the latest projection of energy costs over the coming months.
“Suppliers regularly review direct debt levels so any current assessment for price cap customers would likely take into account that bills look set to go up again in July. Customers on fixed deals however will not see any increase until their current deal comes to an end.”
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “The fall in bills from April 1 offers brief relief for households, but the respite will be short-lived.
“Given the ongoing profits made by the energy industry, households deserve more than a temporary reprieve before prices rise again.
“For the millions of households already in energy debt to their suppliers, this is a real concern and risks pushing more people into crisis.
“The Government must use the window between now and July to act. That means targeted support for those hit first and hardest, including households off the gas grid and those on heat networks, faster action on energy debt, and preparations to bring costs down if prices deteriorate further.”
National Energy Action chief executive Adam Scorer said: “Any price drop is good news, but everyone knows that it will be overtaken by events.
“It is likely to be a false dawn. And the people who know that the best are those already struggling to afford their energy bills and know the real cost of an energy crisis.
“Unfortunately, today’s good news is hugely overshadowed by the fear and dread of what may be to come.”
Which? energy editor Emily Seymour said: “April’s energy price cap fall will bring much needed relief for households. What you save will vary depending on how much you use.
“Despite this drop, many households are already concerned about the next price cap announcement in May, which will set rates from July and is currently predicted to rise by £288, or 18%, per year for the average household.
“It’s important to remember this isn’t confirmed yet, so don’t feel pressured into making quick decisions.
“If you’re currently paying variable rates, it’s worth checking the market to see what fixed deals are available. Fixing could offer protection against future increases, but only if the price is right.
“Options have reduced in the last few weeks, but some energy companies are still offering fixes with prices around those of the January-March price cap.
“If you’re worried about paying your energy bills, contact your supplier as soon as possible. Energy companies are obliged to help if you’re struggling to pay and won’t disconnect you for missing a payment. Request a review or break in payments, and access any available hardship funds.”
Business sentiment among major Japanese manufacturers rose from 16 to 17 in March, according to the Bank of Japan’s quarterly survey released on Wednesday.
The improvement in the so-called diffusion index in the closely watched “tankan” report, recorded for the fourth quarter straight, comes even as worries grow about Japan’s economic growth and oil supplies because of the US-Israeli war on Iran.
The survey is an indicator of companies foreseeing good conditions minus those feeling pessimistic.
The index for large non-manufacturers, such as the service sector, stood unchanged from the last tankan at 36.
Japan’s inflation has so far remained relatively moderate, but worries are growing about prices at the gas stands and other products. Investors and consumers alike are filled with uncertainty about how much longer the war may last and what US president Donald Trump might say next. Japan’s benchmark Nikkei 225 has gyrated wildly in recent weeks.
Analysts say the Bank of Japan may start to raise interest rates because of concerns about inflation, given the soaring energy costs and declining yen, two elements that greatly affect living costs for the average Japanese consumer.
Historically, Japan has benefited from a weak yen because of its giant exports, exemplified in autos and electronics. A weak yen raises the value of exports’ earnings when converted into yen.
But in recent years, a weak yen is working as a negative, as resource-poor Japan imports much of its energy, as well as other key products such as food and manufacturing components.
The US dollar has been soaring against the yen lately.
Japan’s central bank had a negative interest rate policy for years to fight deflation until it normalised policy in 2024. It kept the rate unchanged at 0.75 per cent in March. The next Bank of Japan monetary policy board meeting is set for April 27 and 28.
The price of Brent crude oil to be delivered in May rose by a record 64% in March as the conflict disrupted energy supplies.
Source link
A Nike logo is displayed at a Nike store in Austin, Texas, Feb. 5, 2026.
Brandon Bell | Getty Images
Shares of Nike fell in extended trading Tuesday after the retailer warned sales will fall for the rest of the calendar year, led by an expected 20% decline in its key China market during the current quarter.
Chief Financial Officer Matt Friend said during the company’s earnings call that Nike expects sales for its current fiscal fourth quarter to drop between 2% and 4%, compared with Wall Street estimates of a 1.9% increase, according to LSEG.
For the duration of the calendar year, Friend said, the company expects sales to fall by a low single-digit percentage, led by growth in North America and offset by declines in China. That outlook wasn’t comparable to estimates.
Nike beat expectations across the business on both the top and bottom lines for its fiscal third quarter, but its guidance left investors with more questions about how long its turnaround will take. Friend also cautioned that Nike’s guidance was based off of where the global economic picture stands today — and it could change given recent geopolitical volatility.
“We also recognize that the environment around us has become increasingly dynamic, and we could experience unplanned volatility due to the disruption in the Middle East, rising oil prices and other factors that could impact either input costs or consumer behavior,” said Friend. “We are focused on what we can control.”
Shares fell more than 8% in extended trading.
Here’s how the world’s largest sneaker company did for its fiscal third quarter, compared with estimates from analysts polled by LSEG:
- Earnings per share: 35 cents vs. 28 cents expected
- Revenue: $11.28 billion vs. $11.24 billion expected
The company’s reported net income for the three-month period that ended Feb. 28 was $520 million, or 35 cents per share. That’s a 35% decline from $794 million, or 54 cents per share, a year earlier. That plunge came as Nike’s gross profit margin slid 1.3 percentage points to 40.2%, “primarily due to higher tariffs in North America,” the company said.
Sales were flat at $11.28 billion, compared to $11.27 billion last year.
While Nike beat expectations on the top and bottom lines, it posted a mixed picture regionally. Nike’s largest market of North America continued to show steady growth, as revenue climbed 3% to $5.03 billion, but that was just shy of Wall Street’s expectations of $5.04 billion, according to StreetAccount.
Meanwhile, Nike’s Greater China market continued to shrink, with revenue down 7% to $1.62 billion during the quarter. Still, that total beat analyst estimates of $1.50 billion, according to StreetAccount.
Nike is continuing to work through a colossal turnaround under CEO Elliott Hill. About a year and a half into his tenure, Hill has made strides in repairing parts of the business, but has been clear that it’ll take time for the entire company to improve given the retailer’s scale and complexity.
He reiterated that expectation on Tuesday, saying in a news release that “the pace of progress is different across the portfolio.”
“The areas we prioritized first continue to drive momentum,” Hill said. “The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of NIKE.”
Friend said Nike’s turnaround efforts “will continue to impact results over the balance of the calendar year.”
Nike’s recovery was already coming at a tough time as a global trade war dented its efforts to improve profitability and drive sales from inflation-weary shoppers. But now the athletic company will have to contend with a new war in the Middle East that’s already led to rising gas prices and is expected to send consumer prices even higher, which could push shoppers to cut back on nice-to-haves like new clothes and shoes to save money elsewhere.
“We continue to be encouraged by the momentum in North America. We’ve got a strong order book for summer,” Friend said. “We’re seeing positive signs and sell through. We’re not seeing a consumer reaction to what’s going on in the Middle East at this point in time, in North America.”
Hill has focused in part on revitalizing Nike’s business with wholesale partners as opposed to direct sales on its website and in stores. Wholesale revenue climbed 5% to $6.5 billion.
Meanwhile, direct sales slid 4% to $4.5 billion.
Sweden’s H&M’s Q1 FY26 sales dip but margins improve on cost control
The Best Babbel Promo Codes and Deals for April 2026
Iran war worries fail to dampen business sentiment in Japan
-
Politics1 week agoAfghanistan announces release of detained US citizen
-
Sports1 week agoBroadcast industry CEO says consolidation is ‘essential’ to compete for NFL soaring media rights prices
-
Business1 week agoProperty Play: Home flippers see smallest profits since the Great Recession, real estate data firm says
-
Entertainment1 week agoUN warns migratory freshwater fish numbers are spiralling
-
Tech1 week agoCan a Home Appliance Fix the Problem of Soft-Plastic Waste?
-
Business1 week agoGold prices soar in Pakistan – SUCH TV
-
Fashion1 week agoICE cotton slips on weaker crude, profit booking
-
Business1 week agoMore women are entering wealth management, but few are in advisory roles, study finds