Putins gas cuts will push Europe into recession, warns Morgan Stanley

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Good morning.

Britain will cut off gas supplies to mainland Europe as part of an emergency plan drawn up to counter the Russian energy crisis.

The so-called interconnector pipelines to the Netherlands and Belgium would be shut down by National Grid if supplies fall short in the coming months, the Financial Times reports.

It’s part of a four-stage emergency plan that could also include rationing gas to large industrial users and urgent households to cut consumption.

But European gas firms warned it would undermine efforts to counter Putin’s aggression and exacerbate the energy crisis on the continent.

Germany and the Netherlands have already triggered their own emergency plans after Russia slashed gas supplies to Europe, sparking fears of shortages this winter.

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what happened overnight

Hong Kong stocks dropped more than 1pc this morning, following a sharp sell-off on Wall Street amid concerns about the impact of runaway inflation on the economy.

The Hang Seng Index fell 1.3pc, the Shanghai Composite Index slipped 0.3pc and the Shenzhen Composite Index on China’s second exchange also fell 0.3pc.

Tokyo stocks opened lower, with the benchmark Nikkei 225 index down 0.7pc, while the broader Topix index slipped 0.8pc.

Coming up today Corporate:Moonpig, Mulberry(full-year results); B&M, Meggitt(trading statement) Economics:GDP(US), core personal consumption expenditures(US), business climate(EU), consumer confidence(EU)

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