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European and British wholesale natural gas prices moved higher on Wednesday as traders continued to monitor geopolitical developments in the Middle East and gas supply conditions ahead of the northern hemisphere winter.

The benchmark Dutch front-month gas contract rose 1.1% to €73.33 per megawatt-hour, extending its gains following an earlier pullback.

In Britain, the day-ahead wholesale gas contract increased 3.5% to 187.24 pence per therm.

British Gas Prices Head for 7.3% September Gain

The British wholesale gas contract was on course to end September 7.3% higher, which would mark its third consecutive monthly increase.

The supplied information cited demand from the power sector and regional export flows among the factors affecting the British gas market during the month.

By comparison, the benchmark Dutch contract was on track to finish September broadly unchanged following a month in which LNG flows and changing weather forecasts contributed to price movements.

European Gas Storage Remains Below Year-Ago Levels

European underground gas storage inventories were around 12 percentage points below their levels at the same point last year, according to the supplied information.

The lower storage level has maintained market attention on potential supply disruptions as Europe approaches the winter period.

European gas markets are also sensitive to changes in global liquefied natural gas flows, with competition for cargoes from Asian buyers representing another factor affecting supply availability.

Middle East Developments Remain in Focus

Geopolitical developments surrounding the Strait of Hormuz continued to be monitored by energy markets following the breakdown of recent ceasefire negotiations.

Brent crude remained above $106 a barrel, while traders assessed the potential implications of regional developments for global energy transportation and LNG cargo flows.

Potential changes to LNG shipping routes and competition for supplies ahead of winter remain among the factors being monitored as European gas markets enter the fourth quarter.

Pinewood Technologies (LSE:PINE) reported a wider preliminary loss for the first half of 2026 as costs associated with its North American expansion and acquisitions increased, while revenue and underlying EBITDA rose.

The automotive technology company recorded a loss of £7.7 million for the period, compared with a £0.7 million loss a year earlier.

Revenue increased 16.8% to £22.9 million, while underlying revenue rose 18.4% to £23.2 million. Underlying EBITDA increased 11.4% to £8.8 million.

Underlying Profit Before Tax Falls to £3.8 Million

Despite higher revenue, underlying profit before tax declined 13.6% to £3.8 million from £4.4 million a year earlier.

Underlying administrative expenses increased 23.3% to £15.9 million, reflecting spending associated with Pinewood’s expansion in North America.

The underlying gross margin declined to 85.3% from 86.7%, primarily reflecting the contribution from Seez following its acquisition.

Non-Underlying Costs Reach £13.5 Million

Pinewood recorded £13.5 million of non-underlying costs during the first half.

These included £9.1 million of expenses relating to Pinewood North America, £4.0 million of acquisition-related amortisation and £2.2 million of share-based payment costs.

The impact was partly offset by a £2.8 million fair-value gain on financial instruments and a £3.2 million non-underlying tax credit.

Lithia Rollout Expected to Begin in 2027

Pinewood said two Lithia dealerships in the US are scheduled to go live with its technology during the fourth quarter of 2026.

A broader rollout across Lithia’s North American dealership network is expected to begin during the first half of 2027, with completion planned for 2028.

Pinewood maintained its outlook for the current financial year, with underlying EBITDA expected to be in line with its previous expectation of £21 million.

The company also reaffirmed its target of £62 million in underlying EBITDA for the 2028 financial year.

Ridgeview Partners Acquisition Awaits Court Approval

The results come as Pinewood prepares for its proposed acquisition by Ridgeview Partners.

Shareholders approved the transaction on 25 September. The £4.48-per-share cash offer remains subject to sanction by the High Court, with a hearing scheduled for 7 October.

The UK economy grew 0.5% in the second quarter of 2026, exceeding expectations as services activity and exports increased, according to figures from the Office for National Statistics.

Gross domestic product expanded 0.5% between April and June compared with the previous quarter, above expectations for growth of 0.4%. This followed growth of 0.6% in the first quarter.

The level of UK GDP in the second quarter was 2.0% above its level in the fourth quarter of 2024.

Services Output Rises 0.6%

Services output increased 0.6% during the quarter, led by professional, scientific and technical activities, where output rose 2.3%.

Scientific research and development increased 6.7%, advertising and market research rose 5.4%, and legal activities advanced 3.3%.

Information and communication output grew 2.5%, supported by a 3.6% increase in computer programming and consultancy. Overall services output was 1.7% higher than a year earlier.

Construction output increased 0.8% quarter on quarter but remained 1.0% below its level a year earlier.

Production declined 0.1%, with lower output from electricity, gas, steam and air conditioning supply and from water, sewerage and waste management offsetting increases in manufacturing and mining.

Exports Increase 2.8%

Net trade provided the largest contribution to expenditure growth during the quarter.

Export volumes increased 2.8%, including a 3.7% rise in goods exports, primarily reflecting fuels. Services exports increased 2.0%.

Import volumes were unchanged overall. Goods imports declined 0.5%, led by machinery and transport equipment, while services imports increased 1.0%.

Household spending rose 0.3%, while business investment increased 1.8% during the quarter and was 5.2% higher than a year earlier.

Government consumption declined 0.5%, largely reflecting lower education activity following some school closures during June’s heatwave.

Inventories decreased by £3.40 billion, primarily due to lower manufacturing inventories.

Household Disposable Income Recovers

Nominal GDP increased 0.8% during the second quarter and was 3.8% higher than a year earlier.

Compensation of employees was unchanged overall. Wages and salaries increased 0.9%, while employers’ social contributions declined 3.4%.

Real household disposable income per head increased 1.0% to £6,577, reversing a 0.8% decline during the first quarter.

The household saving ratio increased to 8.8% from 8.6%.

Government Borrowing Rises

Government borrowing increased to 5.2% of GDP from 4.2% in the previous quarter.

Central government borrowing rose to £38.50 billion from £28.30 billion.

The ONS also revised its estimate of UK economic growth for the whole of 2025 down by 0.1 percentage points to 1.2%.

Among other G7 economies, second-quarter GDP increased 0.8% in Canada, 0.4% in the United States and Japan, 0.3% in Germany and 0.2% in Italy, while France recorded no growth.

Glencore Plc (LSE:GLEN) and Yancoal Australia Ltd. (LSE:ASX:YAN) have received approval for an expansion of their jointly owned coal mining operations in Australia’s Hunter Valley, allowing production to continue until 2045.

The New South Wales Independent Planning Commission approved the Hunter Valley Operations Continuation Project following a six-year assessment process.

The project will allow the operations to extract an additional 430 million tonnes of coal over their extended operating period.

Hunter Valley Operations Produce Around 42 Million Tonnes Annually

The Hunter Valley mines currently produce approximately 42 million tonnes of coal annually, with output exported for use by power stations and steel producers.

Glencore operates the mines and holds a 49% interest in the joint venture, while Yancoal owns the remaining 51%.

The approval extends the operating life of the mines until 2045 and provides for additional extraction from the existing Hunter Valley operations.

Approval Includes Environmental Conditions

The project approval includes several conditions relating to greenhouse gas emissions and energy use.

Coal exports from the operations will be restricted to jurisdictions with greenhouse gas reduction policies consistent with the objectives of the Paris Agreement.

The mines will also be required to maximise the use of renewable energy and purchase additional carbon offsets.

Expansion Follows Six-Year Approval Process

Approval of the continuation project follows a six-year planning and assessment process in New South Wales.

The decision enables Glencore and Yancoal to proceed with the planned extension subject to the conditions attached to the approval.

The Hunter Valley operations produce coal for international energy and steelmaking markets, with the additional approved extraction extending production from the jointly owned assets for almost two decades.

UK business confidence fell to its lowest level in 17 months in September as companies reported concerns over higher energy costs, inflation and economic uncertainty, according to the latest Lloyds Business Barometer.

The headline confidence measure declined 12 points to 41%, from 53% in August, marking its lowest reading since April 2025. Despite the decline, confidence remained above the survey’s long-term average of 30%, although it was below the 12-month average of 47%.

The survey followed renewed tensions in the Middle East, which have contributed to higher energy costs and increased uncertainty over the economic outlook.

Economic Optimism Declines to 31%

Businesses’ confidence in the wider economy fell 18 points to 31%, compared with a 12-month average of 37%.

The proportion of companies expressing optimism about the economy declined to 52% from 64%, while the proportion reporting pessimism increased to 21% from 15%.

Businesses cited factors including energy prices, broader cost pressures, inflation and global uncertainty.

Companies’ expectations for their own trading performance also weakened. The measure declined eight points to 50%, below its 12-month average of 56%.

The proportion of businesses expecting higher output over the next 12 months fell nine points to 57%, while the share anticipating lower activity edged down to 7%.

Price Expectations Edge Higher

The proportion of companies expecting to increase prices during the next 12 months rose one percentage point to 52%, ending three consecutive months of declines.

Price expectations nevertheless remained below their levels from a year earlier, as companies balanced increased costs against competitive pressures.

Manufacturing and Services Confidence Falls

Confidence declined across most of the sectors covered by the survey.

Manufacturing recorded a 19-point decline to 36%, while services fell 21 points to 35%. Construction confidence decreased eight points to 47%.

Retail was the exception, with confidence increasing three points to 51%, supported by stronger customer demand and improved economic news.

Smaller Businesses Record Larger Decline

Confidence among companies with annual turnover below £5 million declined 14 points to 39%.

Businesses with turnover between £5 million and £25 million recorded a five-point decrease to 54%, while confidence among companies generating between £25 million and £100 million increased three points to 75%.

Domestic-focused businesses recorded a 12-point decline in confidence to 32%, while the measure for internationally active companies fell 10 points to 49%.

Confidence Falls Across Most UK Regions

Business confidence declined across 10 of Britain’s 12 regions and nations.

The South West recorded a 30-point decline to 25%, while confidence in the East Midlands fell 31 points to 20%. Wales recorded the lowest reading at 16%, following a 38-point decrease.

The West Midlands recorded a 22-point increase to 69%, while confidence in the North East rose five points to 50%.

The latest decline in overall business confidence was comparable with the fall recorded earlier in 2026 following the initial escalation of the Middle East conflict.

British Prime Minister Andy Burnham said the government could consider rejoining the European Union as part of a longer-term review of Britain’s relationship with the bloc.

Speaking to BBC Radio 4’s Today programme on Wednesday, Burnham said he wanted to examine “what is doable”, with potential options including maintaining the current arrangements, joining a customs union, pursuing a single-market relationship or going further and rejoining the EU.

Burnham previously supported Britain rejoining the EU within his lifetime, although he said this was “not necessarily” his position now.

Government to Examine UK-EU Options

Burnham’s comments mark a change from the position set out in Labour’s 2024 election manifesto, which pledged to “make Brexit work” and ruled out rejoining the EU customs union or single market.

At the Labour Party conference on Tuesday, Burnham said the current relationship with the EU was “not good enough” and linked Brexit to difficulties surrounding immigration and the economy.

He plans to use a delayed EU summit later this year to set out different options for Britain’s future relationship with the bloc and seek consensus on a longer-term approach.

Burnham’s Position on Brexit Develops

During his campaign in the Makerfield by-election, Burnham pledged not to reopen the Brexit debate and said he was not proposing that Britain consider rejoining the EU.

Last week, however, he left open the possibility of seeking a mandate at the next general election to rejoin the bloc.

The government has not announced a policy to seek EU membership, with Burnham instead presenting rejoining as one of several possible longer-term arrangements to be considered.

Previous Government Pursued Limited EU Reset

Former prime minister Keir Starmer pursued closer cooperation with Brussels while stopping short of seeking membership of the single market or customs union.

Measures under that approach included closer alignment on food standards, a youth mobility agreement and reconnecting British industry with the EU’s carbon trading system.

The EU summit, which was delayed following Starmer’s departure, is expected to provide an opportunity for Burnham to outline his proposals for the future relationship.

Burnham has also said he intends to publish a 10-year plan for the British economy.

Conservatives Criticise Burnham’s Comments

Conservative deputy leader Alex Burghart criticised Burnham’s position, arguing that Labour should not attribute current economic problems to the Brexit vote, which took place more than a decade ago.

The Conservatives also accused Labour of reopening political divisions over Britain’s departure from the EU.