Monday newspaper round-up: Gas prices, EY, ECB, Iceland

Analysts are expecting gas prices to surge to record highs this week after Russia shut down a key pipeline to Europe. At the same time, a growing number of UK manufacturers have said they are already cutting production or making job cuts as a direct result of “out of control” energy bills. – Guardian

Every household in Britain should have some of their energy bill paid for by the government to help protect the poorest families, according to a report. Setting out radical plans to tackle the energy crisis, the New Economics Foundation thinktank (NEF) said a system of “free basic energy” could be launched as early as next year to replace the consumer price cap for gas and electricity bills. – Guardian

Senior staff at EY are seeking to defect to rival Big Four firms in a sign of growing internal strife over its proposed break-up. KPMG and PwC are among firms that have seen a significant increase in the number of applications from senior managers, directors and even new partners at EY in recent months, The Telegraph can reveal. Senior industry sources said those looking for an exit predominantly include senior EY staff below partner level who are less likely to cash in on a potential split of its audit and consulting business. – Telegraph

The European Central Bank is poised to unleash its biggest monetary policy tightening this week, ramping up its fight against inflation, according to money markets. The ECB, the eurozone’s monetary authority, is expected to raise interest rates by 75 basis points, its largest single increase, after inflation figures pointed to price pressures spreading across the 19-bloc economy. The ECB increased interest rates for the first time in 11 years in July by 50 basis points, raising its main rate to 0 per cent after eight years of negative rates. Investors are now betting that the Frankfurt-based bank will have to accelerate its efforts as inflation has hit a record 9.1 per cent and energy prices have rocketed in recent weeks. – The Times

The managing director of Iceland has said that the frozen food chain had to put expansion plans on hold because of a rise in energy bills. Richard Walker said the company’s latest energy bill had more than doubled to £20 million, which had left the group “fighting to keep the lights on”. – The Times