Oil prices surge to seven-year high after Abu Dhabi drone strike

Good morning. 

Fresh figures from the ONS this morning give a mixed picture of the labour market.

While jobs numbers strengthened – payrolls increased by 184,000 in December and the unemployment rate fell to 4.1pc between September and November – there are worries about a looming cost of living crisis.

A surge in inflation meant wage growth was wiped out in real terms over the three-month period. What’s more, in November, pay fell 1pc in real terms.

Job vacancies also hit a record high of 1.25m, highlighting the skills shortage facing businesses.

5 things to start your day 

1) Start-up plans driverless deliveries for Ocado and Asda this year  Wayve raises $200m from investors including Sir Richard Branson  

2) Nicola Sturgeon reaps £700m from auction to triple UK’s offshore wind power  Shell, BP and Scottish Power want to build more floating and fixed turbines but face opposition from fishermen and conservationists

3) Antonio Horta-Osorio could pocket £3.8m on way out of Credit Suisse  Former Lloyds boss is replaced over trip to Wimbledon in breach of Covid rules 

4) Sadiq Khan threatens to take Boris buses off London’s roads in funding row  Boris Johnson’s fleet of New Routemasters in jeopardy as TfL seeks further Government financing

5) Online car auction site threatens ‘dinosaur’ rivals  High-end buyers raced to snap up new toys on the Collecting Cars website, often without even viewing them first

What happened overnight 

With Wall Street closed, Asian markets recovered slightly from Monday’s travails as investors took some of their lead from Europe. Tokyo was among the best performers, rallying 0.9pc in the morning, while Hong Kong, Shanghai, Sydney, Singapore, Taipei and Manila were also up. Seoul, Jakarta and Wellington dipped slightly. 

Coming up today

• Corporate: Marshalls, Elementis, Qinetiq, Energean, IntegraFin, 888 Holdings, The Hut Group (Trading update)
• Economics: Unemployment rate (UK), claimant count change (UK), average earnings (UK), ZEW economic sentiment (EU)