Business news and markets: live

Anything that clears the air and helps rebuild trust in the industry must be a good thing. Britain’s energy market is highly competitive and we believe that a full independent review by a respected regulatory authority would demonstrate precisely that.

Competition is working, providing choice for consumers and some of the lowest prices in Europe

We hope that a lengthy review process will not damage confidence in the market, when over £100 billion of investment in new infrastructure is needed. A prolonged period of uncertainty could damage investment at a time when Britain’s energy security is being seriously challenged.

For our customers, we offer competitive tariffs and were the first to cut prices this year. Our focus remains on providing affordable energy, excellent service and innovative products that help customers reduce their consumption and save money on their energy bills.

But as our Energy Editor Emily Gosden notes, most competition inquiries end up in a market overhaul:

IMF mission chief declines to say how big initial tranche of aid will be

08.35 Nikolay Gueorguiev, the IMF mission chief to Ukraine, is speaking at a press conference in Kiev. He says the IMF executive board will meet in April to consider the Ukraine agreement - which is still subject to their approval. However he has refused to reveal how much the first tranche of aid will be should the deal be given the green light.

IMF funding contingent on reforms to 'stabilise economy'

08.13 The IMF's $14bn - $18bn package is contingent on the government's adoption of a "strong and comprehensive package of prior actions aiming to stabilise the economy and create conditions for sustained growth", Nikolay Gueorguiev, mission chief to Ukraine, has said in a press release . He adds:

The goal of the authorities’ economic reform program is to restore macroeconomic stability and put the country on the path of sound governance and sustainable economic growth while protecting the vulnerable in the society. The program will focus on reforms in the following key areas: monetary and exchange rate policies; the financial sector; fiscal policies; the energy sector; and governance, transparency, and the business climate.

BREAKING: IMF agrees $14 - $18bn standby agreement for Ukraine

08.05 More details to follow.

Corporate news round-up

08.00 Louise Armitstead had taken a look at this morning's company announcements in the City Briefing email (sign up here ).

Babcock International, the UK engineering group, has unveiled an agreement to buy Avincis, a helicopter specialist, for £920m. The deal, which includes taking on £705m of Avincis debt, will be funded by a £1.1bn rights issue. Peter Rogers, chief executive of Babcock, has said the deal will "generate even greater expansion opportunities and value creation" for shareholders.

Serco Group has won a 22-month interim contract to continue operating the Northern Rail Franchise on behalf of the Department for Transport. The contract follows the lifting of its ban on bidding for Government contracts that was imposed after the electronic tagging debacle. Gatwick has signed a new seven year deal with easyJet which will "incentivise the airline to grow at the airport." Airbus, the European jet manufacturer, has signed a £6bn deal to supply China with 70 new planes. The deal was signed during a state visit to France by the Chinese President, Xi Jinping.

Laura Ashley has reported a 2pc rise in annual pre-tax profits to £20.5m despite a drop in sales of 1.4pc or 0.4pc on a like-for-like basis. The high street retailer has pointed to an improved second half when like-for-like sales grew 1.2pc.

DMGT has reported a 1pc drop in half year revenues. In the Daily Mail media division, underlying circulation revenues were down 2pc but a 51pc jump in digital advertising revenues, from £15m to £23m, helped offset a drop the decline in print advertising. Thomas Cook has reported "satisfactory" winter trading, despite "significant market disruption" due to the continued unrest in Egypt. Harriet Green, chief executive, has UK bookings are 2pc higher but selling prices are 3pc lower than last year.

IMF poised to unveil rush bail-out for Ukraine

07.42 The International Monetary Fund (IMF) is reported to have wrapped up talks with Ukraine overnight, paving the way for an announcement this morning. The deal will hinge on Ukraine's agreement to reform government subsidies and to raise domestic gas prices by 50pc. Andrew Critchlow reported last night that the IMF plans to push through a $15bn (£9bn) aid package , less than the $20bn the Ukrainian government had hoped for.

Big Six energy companies face break up over excess profits

07.36 The energy regulator has referred the sector to the competition watchdog to investigate "once and for all" whether millions of households are paying too much for gas and electricity. If the answer is 'yes' then the Big Six could face being broken up. Here's Dermot Nolan, chief executive of Ofgem:

Ofgem believes a referral offers the opportunity to once and for all clear the air and decide if there are any further barriers which are preventing competition from bearing down as hard as possible on prices.

The CMA has powers, not available to Ofgem, to address any structural barriers that would undermine competition. Now consumers are protected by our simpler, clearer and fairer reforms, we think a market investigation is in their long-term interests.

I want to make sure that consumers are put at the heart of this market, so we will continue to take action to help consumers. This includes from today putting the industry on notice that any new serious breach of the rules which comes to light will be likely to attract a higher penalty from Ofgem. I am determined that energy companies use our reforms to transform their relationship with consumers.

Today's business stories

07.30 Here's what's leading our business pages this morning

• Alistair Osborne writes that the boss of Legal & General has warned changes to Britain’s pension rules must not be allowed to create an “open-ended liability” for the insurance industry .

• Adair Turner has warned that Britain's property obsession has left the country at risk of another major financial shock , has warned, writes Szu Ping Chan.

• Nathalie Thomas reports on Ryanair's latest attempt to push its new "cuddly" image

Good morning

07.00 Good morning and welcome to our daily business and markets live blog, your one stop shop for all the breaking business stories of the day.

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