Emergency funding deal would give struggling water company £3bn lifeline

Thames Water has been teetering on the brink of collapse since being described as “uninvestible” in March when shareholders refused to pour in more cash .

The government has been on standby for nationalisation through a special administration regime.

This is a decisive vote of confidence in the first stage of our restructuring plan for Thames Water from a large group of its creditors, which include a significant number of long-term infrastructure investors. It shows that there is a genuine will to develop a market-based solution which saves UK taxpayers from shouldering the costs of special administration.

Our group is working intensively with the company and providing it with the resources and turnaround expertise it needs to ultimately attract strategic equity and rebuild so all parties can focus once again on delivering a better service for customers and the environment.

US yields pushed higher and the dollar rally gained further momentum yesterday, as investors continued to surf on the idea that Donald Trump’s pro-growth policies and tariffs would boost inflation in the US and limit the Federal Reserve’s capacity to ease the monetary policy as much as previously anticipated. The US 2-year yield, for example, which best captures the rate expectations, is up by 85bp since the September dip, we could see a similar jump in the US 10-year yield.

The CPI [consumer price index] data has regained importance since Donald Trump was re-elected president of the US. Jobs data remains crucial for the Fed’s policy path, as the last thing the Fed wants is to panic and lose control of the situation, but the Fed’s victory over inflation looks more vulnerable today than it did a month ago. And that’s supportive of the US dollar.

Noon GMT: US MBA mortgage applications for last week

1.30pm GMT: US inflation for October (forecast: 2.6%, previous: 2.4%)