(Bloomberg) -- The Bank of England intervention in the bond market this morning came after a gilt sell-off yesterday and despite efforts by the government to reassure the markets by bringing forward the chancellor’s fiscal statement. Executing that statement will be a challenge for Kwasi Kwarteng, who will have to find cuts about double the size of the defense budget, according to the IFS. Here’s the key business news from London-listed companies this morning:

Bank of England: The Bank of England will widen its bond buying to include inflation-linked gilts after a record selloff unleashed new chaos in the market on Monday.

  • This intervention follows another one yesterday to expand the bank’s bond-buying program before it ends on Friday
  • The BOE said “dysfunction” in the index-linked bond market and the possibility of “fire sale” dynamics pose a “material risk” to the UK’s financial stability

Ferrexpo Plc: The London-listed metals company temporarily suspended its operations in Ukraine after Russian missile attacks on Ukraine limited its power supplies.

  • Power is being prioritized for “critical equipment” needed for essential services and local communities

Heathrow Airport Ltd: Britain’s busiest airport says it had the busiest summer out of any European hub airport, even though it was 15% lower than 2019 levels, and despite a cap on departing passengers.

  • The airport is now gearing up for the Christmas period, which it expects to be “very busy”

AstraZeneca Plc: The pharmaceutical giant’s nasal spray vaccine failed to elicit a strong immune response to Covid-19 in an early trial, a blow to the UK drug giant’s ambitions for developing an alternative approach to preventing the disease.

Outside The City

Britain is facing calls to slash public spending by an amount twice as big as the annual defence budget to stabilize the public finances and halt a snowballing market rout. 

Chancellor Kwasi Kwarteng brought forward his planned statement by three weeks in response to weakness in the pound and government bonds, which intensified after his action yesterday. Investors also shook off the second intervention by the Bank of England in the past month. 

Meanwhile, Britons took action to curtail their energy use this winter by buying blankets, warm clothing and energy-efficient appliances, according to the latest survey from the British Retail Consortium. 

In Case You Missed It 

Here’s a deep dive into how London’s deadly, polluted air turned the city into an electric-vehicle pioneer.

As UK pension plans scrambled to meet margin calls last month by dumping large chunks of their fixed-income holdings, Apollo Global Management was buying at least one type of debt: collateralized loan obligations. Now the firm is sitting on big gains.

HSBC Holdings Plc has spent the past six months fighting calls from its largest shareholder to split up. That isn’t stopping the bank ramping up its own dealmaking program.

Looking Ahead

Homebuilder Barratt Developments Plc is set to report a trading update tomorrow. Investors will likely focus on any comments that may suggest just how high the pressure on the property market is. 

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