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Italy’s deputy prime minister has hit out at Vauxhall parent Stellantis, saying its problems are as much the fault of billionaire investors the Agnelli family as its ousted boss Carlos Tavares.
Matteo Salvini, who also serves as transport minister in Italy’s coalition government, said the issues at Stellantis are “more about its ownership” than Mr Tavares’s leadership. Mr Tavares resigned over the weekend after overseeing a sharp drop in car sales.
However, the deputy prime minister said Stellantis’s owners should take some of the blame for issues at the car maker. Mr Salvini claimed that Stellantis, formed from a merger of Fiat-Chrysler and PSA, the owner of Peugeot, Citroen, Vauxhall and Opel, had relied on state handouts from Italy for years while running down manufacturing in the country to shift production to cheaper sites overseas.
He said: “It’s an ownership that has little that is Italian at this point, that has received money in Italy for decades to open factories abroad.
“It’s one of the worst examples of how not to do entrepreneurship – with public money. There are still loans guaranteed by the state for billions of euros and in return we have closures, furloughs and layoffs.”
Aid has included a €6.3bn (£5.2bn) guarantee following Covid that represented the biggest bailout for any European carmaker in the wake of the pandemic.
Such handouts have come under scrutiny in recent months, with politicians including Giorgia Meloni claiming the company is arguably more French than Italian.
Italy’s representation in Stellantis is confined to the Agnelli family, which founded Fiat in 1899 and remains the group’s leading shareholder with a 14.2pc stake.
France, by contrast, has a 6pc holding via state-owned bank Bpifrance, which sits alongside the 7pc controlled by Peugeot Invest, the French Peugeot family’s holding arm.
Mr Salvini aimed particular criticism at Stellantis’s chairman John Elkann, the American-born Agnelli scion chosen by his grandfather to run Fiat at the age of 22, for turning down an invitation to address the Italian parliament.
He said: “Elkann should have come to parliament with a cheque, not with words, with a cheque that takes into account how many billions in public money this company has taken in the face of economic results and firings.”
Mr Salvini had said last month that Mr Tavares “should be ashamed” of his mismanagement of Stellantis after the then-CEO said that producing cars in Italy was too expensive.
His League party, the junior partner to Prime Minister Ms Meloni’s Brothers of Italy in the Italian government, said it was “launching Operation Truth” against the group over the taxpayer funding it received while laying off Italian workers and opening factories abroad.
Ms Meloni herself criticised Mr Elkann earlier this year, saying that choices he had made were “far from the Italian national interest” and that the foundation of Stellantis had amounted to a “takeover by the French.”
The premier said Monday that her priority would be protecting Stellantis workers and that she expected the company to act as a protagonist in Italy’s industrial policy.
Stellantis declined to comment.
Read the latest updates below.
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The Chancellor has acknowledged it would not be “easy” for businesses, charities or local authorities to “absorb” increases in employers’ national insurance contributions.
Defending her Budget at the Yorkshire Post’s great northern conference in Hull, Rachel Reeves said: “I’m not going to pretend that it’s going to be easy for businesses, or indeed for charities or local authorities, to absorb, especially, the national insurance increase.
“But we made a commitment during the general election, for a reason, that we wouldn’t increase taxes on working people, because over the last few years it has been working people that have had to bear the brunt of tax increases.
“And so we said income tax, VAT and National Insurance on employees would not go up, and we have managed to stick to that manifesto commitment, as well as freezing the fuel duty for another year.
“That has meant we have had to increase taxes, particularly National Insurance, but also some of the taxes on the wealthiest in society.”
The manifesto said that Labour “will not increase National Insurance”.
Two out of three of the main Wall Street indexes have fallen this afternoon as investors weigh a surprise move by South Korean president Yoon Suk Yeol to declare martial law.
The S&P 500 and Dow Jones fell 0.1pc, while the Nasdaq rose 0.1pc.
It follows the Nasdaq and the S&P 500 hitting record closing highs yesterday, as the tech rally spilled into December after US stocks’ stellar November performance.
“A lot of people are saying, look, don’t fight the trend. There’s a lot of momentum and people are looking for reasons to be optimistic,” said Patrick Kaser, portfolio manager at Brandywine Global.
“The flip side of that is at some point everybody’s expecting good things and evaluations are not supportive of anything other than this good scenario, so there will come a time when the good news starts to mean too much good news.”
US stocks were boosted last month after Donald Trump recaptured the White House in the election and his Republican Party swept both houses of Congress.
Analysts have labelled Mr Trump’s potential plans for tax cuts and deregulation as a positive for stocks, though tariffs could be a negative on concerns of fresh inflationary pressures and a global trade war.
European stocks closed at a one-month high on Tuesday, with Germany’s Dax briefly touching the 20,000 mark for the first time, as investors monitored France’s political turmoil with the government on the verge of collapse.
The pan-European Stoxx 600 rose 0.3pc, logging its fourth session of gains. Retailers and defence stocks led sectoral advances with a more than 1.4pc rise each.
Germany’s Dax closed up 0.4pc, boosted by tech stocks such as SAP, while Italy added 1pc and Spain rose 1.1pc.
France’s Cac 40 index closed a choppy session up 0.2pc, with markets on edge ahead of an all but certain collapse of the country’s three-month old government on either Wednesday or Thursday.
Hard-Right and Left-wing parties submitted no-confidence motions on Monday against prime minister Michel Barnier, who is facing strong opposition to his government’s budget.
On the day, the risk premium investors demand to hold French debt over German Bunds was close to its highest in more than 12 years.
The Cac 40 has lagged its regional peers since mid 2024, while its German counterpart has been the best-performing index in Europe even though the country is also preparing for domestic elections while facing a bleak economic picture.
British aerospace giant Rolls-Royce has risen to be worth above £50bn for the first time today.
The company, which has risen by 97pc on the stock market this year, has experienced a radical turnaround under chief executive Tufan Erginbilgiç.
Less than two years ago, Mr Erginbilgiç described the business as a “burning platform”.
“Given everything I know, this is our last chance,” he warned.
The FTSE 100 rose 0.6pc today as European stock indexes gained.
The top riser was M&S, up 3.5pc, followed by easyJet, up 3.3pc.
At the other end of the index, BT fell 2.6pc and British American Tobacco lost 1.8pc.
Meanwhile, the mid-cap FTSE 250 rose a similar 0.6pc, with electronic components group DiscoverIE rising 16pc.
US stocks got off to a muted start this afternoon, hovering near Monday’s record closing highs as tight labour market data and brewing geopolitical turmoil helped dampen investor risk appetite.
The S&P 500 and Dow Jones Industrial Average both fell 0.3pc, but the Nasdaq rose 0.2pc.
South Korea’s won tumbled to a two-year low against the dollar following a declaration of martial law, and crude prices gained amid supply concerns related to Opec+ output cuts and tensions in the Middle East.
“If you’re an investor right now, you’re not looking to sell; you don’t want to necessarily take trips off the table,” said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. “But man, it’s it. It’s tough to have high conviction at these valuations and given some of the geopolitical uncertainties.”
The US Labor Department released figures earlier this afternoon showing that the number of job openings in the US was little changed in October.
China has today banned exports to the United States of several critical minerals that have potential military applications.
The ban on sales of gallium, germanium and antimony come amid escalating trade tensions the day after Washington launched a further crackdown on China’s chip sector.
The order, which takes immediate effect, also requires stricter review of end-usage for graphite items shipped to the US. Graphite is a component of EV batteries.
“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the Chinese commerce ministry said.
The curbs strengthen enforcement of existing limits on exports of the critical minerals that Beijing began rolling out last year, but apply only to the US market, in the latest escalation of trade tensions between the world’s two largest economies ahead of president-elect Donald Trump taking office.
The US is assessing the new restrictions, but will take “necessary steps” in response, a White House spokesman said, without giving details.
“These new controls only underscore the importance of strengthening our efforts with other countries to de-risk and diversify critical supply chains away from PRC [China],” the spokesman said.
The use of martial law in South Korea is likely to hamper investment and could cause its stock market to perform poorly, two economists have said.
Mark Williams and Gareth Leather, who focus on Asia at Capital Economics, said: “Korea runs a large current account surplus, so doesn’t depend on the willingness of foreigners to hold won assets. But these events will leave a huge dent in investor confidence in the economy and its financial markets.
“There had been excitement that October’s decision to include Korean government bonds in the benchmark FTSE Russell World Government Bond Index from Nov 2025 would help close the “Korea discount” on local asset prices. The decision to include Korean bonds in the index followed government efforts to address foreign investors’ concerns.
“Further ahead, political polarisation and resulting uncertainty will leave the consumer nervous and is likely to hold back investment in Korea. Thailand stands as a salutary lesson of a politically-divided country in Asia in which martial law was declared a decade ago in the context of a coup and which subsequently has underperformed.
Opec’s oil output rose in November for the second month in a row as Libya’s production recovered after resolution of a political crisis.
The Organisation of the Petroleum Exporting Countries pumped 26.51m barrels per day (bpd) last month, up 180,000 bpd from October, with Libya posting the largest increase.
Libyan output recovered after resolution of a dispute over control of the central bank, allowing full production to resume at oilfields and applying downward pressure on prices.
However, the figures, which were compiled by Reuters, also show that members making cuts pledged among the wider Opec+ alliance kept output broadly steady.
Libya is exempt from agreements by the broader Opec+ group of producers to limit output.
Opec+ is scheduled to meet on Thursday and could extend output cuts into 2025 in the face of global demand concerns and rising output outside the group.
South Korea’s finance minister has said the government will deploy all possible measures to stabilise financial markets, if needed, after President Yoon Suk Yeol declared martial law.
“We will mobilise all possible financial and foreign exchange market stabilisation measures, including unlimited liquidity injections,” Choi Sang-mok said in an emergency meeting with top economic officials in Seoul.
US-listed shares of South Korean companies fell this afternoon after President Yoon Suk Yeol declared martial law in the country.
The iShares MSCI South Korea ETF, which tracks an index of South Korean equities, fell 5.7pc.
Korean Exchange has confirmed that it will open tomorrow, according to Bloomberg.
Earlier, reports said it was reviewing whether to allow proceed.
The pound hit its highest against the South Korean won in nine years after the country’s president declared martial law.
Sterling was up 2.6pc versus the currency to 1,824, the most since 2015.
I will head off now and hand over to Alex Singleton, who will cover all the market reaction from here.
Korea Exchange has said it is reviewing whether trading will resume on the country’s stock market following the declaration of martial law.
The stock market told Bloomberg it was reviewing the situation, retracting an earlier statement saying that trading would continue as normal.
It comes as all political activities have been banned in South Korea following the imposition of martial law on Tuesday.
All media will be subject to government monitoring, martial law commander Park An-su said.
He said: “All political activities, including those of the National Assembly, local councils, political parties, and political associations, as well as assemblies and demonstrations, are strictly prohibited.
“All media and publications shall be subject to the control of the Martial Law Command.”
The number of job openings in the US was little changed in October, official figures show, in a boost for hopes that the Federal Reserve will cut interest rates later this month.
The Job Openings and Labor Turnover Summary (JOLTS) report said there were 7.7m vacancies on the last business day of October.
This was little changed from the previous month was down by 941,000 over the year. It was higher than analyst expectations of 7.5m.
Analysts said the data show it is a “hard time to find a job” in the US:
The National Electricity System Operator has cancelled its alert putting power generators on standby after concerns about weak supplies.
Wall Street opened a touch lower a day after the S&P 500 and the Nasdaq notched record highs.
The Dow Jones Industrial Average fell 12.4 points, or less than 0.1pc, at the open to 44,769.58 ahead of job vacancy figures that could add weight to pressure for interest rate cuts from the Federal Reserve.
The S&P 500 fell 4.2 points, or 0.1pc, at the open to 6042.97​, while the Nasdaq Composite dropped 39.6 points, or 0.2pc, to 19364.34.
The South Korean won sank to a two-year low as its president declared martial law.
The currency dropped more than 1pc to 1,430 to the US dollar following the unexpected announcement by President Yoon Suk Yeol.
Meanwhile, London-listed shares of Samsung plunged as much as 5.5pc.
The tech giant is the biggest stock on South Korea’s Kospi stock index, weighted at about 16pc of the market.
The South Korean president has declared emergency martial law, citing North Korean threats and domestic “anti-state forces”, writes Daniel Hardaker.
In a televised address to the nation, Yoon Suk Yeol vowed to “eradicate pro-North Korean forces and protect the constitutional democratic order”.
He said the opposition’s impeachment attempts and budget cuts had paralysed the government, but promised swift action to “rebuild and protect” the country.
Read on for details on this developing story.
Neso has issued its capacity market notice as wind and solar power sources produced less than 20pc of Britain’s power today, National Grid figures show.
By contrast, gas is fuelling 55pc of the electric power transmission network for the country.
Over the last week, renewables and gas had contributed 35pc and 39pc to the UK network, respectively.
However, this year solar and wind power were ahead of fossil fuel production, contributing 38pc and 28pc, respectively.
Britain has put dozens of power stations across the country on alert under its anti-blackout contingency plans as poor weather hit renewable energy generation.
The National Energy System Operator, known as Neso, has sent out a notice to power companies telling them to be on standby if the grid needs an emergency boost.
The “capacity market notice” was issued after Britain and Europe’s renewable energy capabilities were recently depleted by tepid weather conditions.
The so-called “dunkelflaute” event – a German term – meant low winds left turbines unable to generate enough power, while cloudy conditions impacted solar panel electricity production.
Dunkelflaute means an extended period of minimal winds and low sunlight.
As a result, generators have been told to be ready to bring online back-up systems for when demand spikes later amid fears the amount of spare power capacity has grown unacceptably small.
NESO said it “is confident that electricity margins are sufficient for this evening”.
It added: “However, a capacity market notice (CMN) has been triggered by the automated system.”
Power generators will know if they are required to start-up emergency provisions by 5.30pm.
The price of oil rose amid expectations that the Opec cartel of crude producing nations will delay a scheduled increase in production.
Brent tipped back above $73 a barrel as it gained 1.7pc ahead of the Opec+ meeting on Thursday.
The group of nations had previously said it would ramp up production from December but analysts think this is unlikely amid weakening prices and the allure of a tick-up in demand in China.
Figures this week indicated a recovery in factory activity in November in the world’s second-largest economy.
John Evans an analyst at PVM, said: “The likelihood of another Opec roll of cuts into the first quarter is all but priced in.”
GB News has overtaken Sky News for the first time as viewers flocked to the broadcaster for its coverage of the farmers’ protests.
The challenger news channel secured an average audience of 70,430 in November – eclipsing Sky’s 67,670, according to data from TV ratings body Barb.
While GB News has frequently beat its rivals on individual days, it marks the first time it has done so across an entire month.
Read its highlights during the period.
US stock indexes were subdued in premarket trading after the S&P 500 and the Nasdaq notched record highs on Monday.
Investors will wait to see the outcome of October’s job openings survey (JOLTS) due at 3pm UK time, ahead of hotly anticipated monthly payrolls figures on Friday.
The two-figures will help Federal Reserve policymakers decide whether to cut interest rates in December.
Traders currently see a more than 72pc chance of the Fed cutting interest rates by a quarter of a percentage point.
Fed Governor Christopher Waller, whose views are often a bellwether for US monetary policy, said on Monday that with inflation still forecast to fall to 2pc he is inclined “at present” to support another interest rate cut.
However, New York Fed President John Williams said late on Monday that while it was clear interest rates are likely go down over time, he could not yet say what the central bank’s next move will be.
In premarket trading, the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were all little changed.
More people are paying for their holidays through monthly instalments amid concerns about the impact of the Budget on disposable income and job prospects, according to an online travel agent.
On The Beach said some 80pc of customers are resorting to flexible payment options to afford their week away, including monthly instalments or the payment of a deposit followed by further charges to clear the balance.
Chief executive Shaun Morton said Britons are using the schemes to cling on to the more upscale breaks they’ve been enjoying since the end of the pandemic.
He said: “People are looking for value. They’re taking advantage of low-deposit schemes to spread the cost while looking at destinations that offer them a level of affordable luxury.”
Though On the Beach holidays range from £250 to £5,000 per person per week, around 80pc of bookings are for four- and five-star hotels.
Popular locations include Turkey, Egypt, Tunisia and Morocco, where a week’s break priced at £800 per person with flights would cost for less than £70 a month over a full year.
Should Labour’s National Insurance hike begin to impact wages and employment, Mr Morton said he expects some changes in holiday habits but no erosion of the higher levels of foreign travel seen since Covid.
He said: “I’m not sure what the future holds in terms of consumer confidence, but people will tend to trade down or look for better value rather than trade out of a holiday completely.”
Danish brewer Carlsberg has announced an agreement to sell its shares in its Russian unit, a day after Vladimir Putin signed a decree ending state control of the business.
Carlsberg, like many other Western companies, had announced in March 2022 that it would leave Russia, where it employed 8,400 people, following Moscow’s invasion of Ukraine.
But a year later, Putin placed Carlsberg’s local unit, Baltika Breweries, under state management and the Danish company’s chief executive, Jacob Aarup-Andersen, declared that its Russian business had been “stolen”.
With Putin ending state control over Baltika, Carlsberg said on Tuesday that it had an agreement to sell its shares in the local company for an undisclosed “cash consideration”.
Carlsberg will also receive Baltika’s shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan.
“The new controlling shareholder of Baltika Breweries will be a company owned equally by two longstanding Baltika employees, currently holding leading positions in the company,” the statement said.
The transaction is expected to close “within the next couple of days”.
Pictet Asset Management predicted that earnings per share will average 5.7pc for UK stocks next year, well ahead of the eurozone’s 4pc and Japan at 4.7pc.
However, the US will remain higher at 7.4pc.
Arun Sai, senior multi-asset strategist, said: “There is a case for the UK to outperform next year, along with the US. We still have a preference for the US in global equities, but the UK could be the wild card.”
Meanwhile, the investor takes a gloomy view of the eurozone, which it predicts will register only 1.2pc growth next year, behind the UK at 1.4pc.
The strategists warned that the continent faces a toxic cocktail of languishing growth, lacking leadership and vulnerable manufacturing sectors.
Mr Paolini said: “Every time you put some kind of hope in Europe, it has this incredible ability to disappoint. You have the biggest country in recession [and] a lack of political leadership, which is very important at a time of war and a potential global trade war.”
The asset manager described Europe as “incredibly vulnerable” in the face of a trade war, highlighting Germany in particular. Meanwhile, the UK is one of few major European countries with a government with a large majority, they noted.
Mr Paolini added: “The UK is less exposed to tariff risk because the UK has effectively no trade surplus relative to the US and is the second biggest service exporter in the world. Services will not be taxed. So the UK is in a better position than Europe.”
The pound rose against the dollar after a Federal Reserve official said they were minded to support more interest rate cuts in the US.
Sterling was up 0.1pc at $1.266 after losing 0.7pc on Monday when the US currency resumed its rally since the election of Donald Trump.
Federal Reserve Governor Christopher Waller said later on Monday that with inflation still forecast to fall to 2pc, he is inclined “at present” to support another interest rate cut later this month.
Markets are now pricing in a 70pc likelihood of a 25 basis point rate cut at the Fed’s next meeting on December 18, compared to about 50pc just over a week ago.
Meanwhile, the chances of the Bank of England cutting interest rates are placed at just 11pc.
Elsewhere, the euro recovered slightly against the pound following the political turmoil in France.
The single currency was up 0.2pc to 83.1p.
Britain’s stock market will receive a boost if Donald Trump unleashes a trade war, a leading investment manager has said.
Swiss investor Pictet Asset Management said UK assets were a “wild card” that could pay off next year if the president-elect follows up on threats to dish out tariffs on all imports.
Donald Trump was elected on a mandate of slapping tariffs up to 20pc on all imports, while imposing a 60pc levy on China.
Last week he pledged to go further by introducing 25pc levies on Canadian and Mexican imports, while placing an additional 10pc tariff on China from day one.
This has since been followed by a further threat to introduce 100pc tariffs on countries in the Brics alliance – a bloc which includes the likes of Brazil, Russia and India.
Mr Trump said on Saturday that he would impose the charges unless the Brics nations agreed not to go ahead with plans to introduce an alternative currency to replace the US dollar, an idea introduced at the Brics summit last year.
However, Britain’s position outside any major bloc could prove beneficial if it manages to stay out of the firing line in a brewing trade war.
Luca Paolini, chief strategist at Pictet, said: “The UK market is effectively what we call the stagflation play with a combination of energy sector and defensives, which in a global trade war should outperform.
“If everything falls the UK will be a little bit more resilient. We have the UK as a potential market that can do quite well in this kind of Trump scenario.”
The FTSE 100 has been boosted by a rise in oil prices and a “Santa rally” that has lifted stocks higher.
The blue-chip FTSE 100 rose 0.7pc as heavyweight energy shares were lifted by the rise in Brent crude, which has gained 0.9pc to more than $72 a barrel.
The energy sector provided a major boost as it gained as much as 1.8pc after oil prices nudged higher ahead of an Opec+ meeting later this week, where the cartel is expected to delay plans to increase production.
Meanwhile, shares around the world were moving higher in the run-up to Christmas.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “December is here, and while the famed ‘Santa rally’ doesn’t typically kick in until Christmas week, this remains the most likely month for market gains.”
Kathleen Brooks, research director at XTB, added: “December is Santa rally territory and so far, it’s got off to a good start. European equity markets are a sea of green on Tuesday, and French markets are bouncing back.”
EasyJet was the biggest gainer on the FTSE 100 as it jumped to a near eight-month high after multiple brokerages including Morgan Stanley raised their target price on the budget airline.
Miners Rio Tinto, Antofagasta and Glencore advanced between 1pc to 2.1pc as copper prices rebounded following a sell-off on Monday.
Victrex PLC was the biggest gainer on the FTSE 250, soaring 15.4pc following its full-year earnings report.
Britain’s productivity crisis is even worse than feared amid surging net migration, official figures show.
The Office for National Statistics (ONS) on Tuesday admitted that Britain’s productivity was shrinking faster than thought because it had underestimated the true level of net migration.
Output per hour worked, a key indicator of productivity, fell by -0.9pc between April and June this year, a much steeper drop than the -0.3pc fall the ONS had previously estimated.
Read how net migration was also higher than previously thought.
Global shares were mostly higher after technology stocks pulled Wall Street to another record finish.
France’s Cac 40 added as much as 1.2pc in early trading, reversing sharp losses on Monday as its government was pushed to the brink of collapse.
The FTSE 100 rose as much as 0.7pc to 8,373.57 while Germany’s Dax rose 0.7pc to a record 20,041.15.
Japan’s benchmark Nikkei 225 jumped 1.9pc to finish at 39,248.86. Shares in Tokyo Electron surged 4.3pc after the US Commerce Department expanded the list of Chinese computer chip-related companies subject to export controls.
Some analysts think Japanese stocks could end up benefiting from Donald Trump’s latest threats to raise tariffs on China and other countries.
During the weekend, the president-elect threatened 100pc tariffs against a group of developing economies, including China and Brazil, if they act to undermine the US dollar.
Taiwan’s Taiex gained 1.3pc and the Sensex in India was up 0.8pc.
Australia’s S&P/ASX 200 gained 0.6pc to close at a record high 8,495.21. South Korea’s Kospi jumped 1.9pc to 2,500.10, after inflation data showed a rebound but remained low enough to keep rate-cut hopes alive for early 2025.
Hong Kong’s Hang Seng added 1pc to 19,746.32, while the Shanghai Composite edged up 0.4pc to 3,378.81.
The chief executive of Britain’s most valuable fintech start-up has taken a swipe at the UK stock market saying it is “not rational” to float in London.
Nikolay Storonsky, who runs online bank Revolut, said the UK “can’t compete” and was “much worse” than American stock markets because of stamp duty taxes on buying shares.
“The problem with the UK – if you think about the UK versus the US – is the US is much more liquid [and] trading in the US is free.
“If you look at trading in the UK, you always pay a stamp duty tax which is 0.5pc. I just don’t understand how the product which is being provided by the UK can compete with the product provided by the US,” Mr Storonsky told the 20VC podcast.
He is not the only person hitting out at stamp duty taxes.
The boss of NatWest has said it would be a “symbolic” moment when the bank returns to private ownership, which could be achieved in the first half of next year.
Paul Thwaite, speaking at the Financial Times’ Global Banking Summit, said: “I think it is reasonable to expect that we will be back to private ownership next year, maybe as early as the first half.”
The Government has been steadily offloading its share in NatWest since it was bailed out by taxpayers during the 2008 financial crisis.
Mr Thwaite said it was “on a fast trajectory” to private ownership which “means we would be able to talk about the future of the bank rather than having to talk about its past”.
Speaking more broadly about the UK economy, the bank boss said the Government made “tough choices” in the autumn Budget, adding that businesses were working out how to mitigate the impact of the planned increase to employer national insurance contributions especially.
European shares rose despite the confirmation that the French government will face a no confidence vote on Wednesday.
Although up 0.6pc on the day, France’s Cac 40 blue-chip index continues to underperform its peers after the hard-Right RN and left-wing parties submitted no-confidence motions against Prime Minister Michel Barnier.
The index is underperforming Germany’s stock benchmark by the most in three decades, and is down 3.1pc this year, while a version of Germany’s Dax index that excludes dividends has climbed 16pc, the biggest annual underperformance since 1993.
Germany’s blue-chip Dax stock index jumped above 20,000 points for the first time today following gains on US and Asian markets.
The index, which groups the 40 largest publicly-traded German companies, reached 20,022 points despite Europe’s largest economy being on course for a second straight year of contraction.
Ulrich Stephan, head of investment strategy at Deutsche Bank, said this is in part because the index is not domestically focused, with “84pc of the turnover of Dax companies generated abroad”.
Among individual companies, Mercedes-Benz dropped 2pc after Barclays cut its rating on the German carmaker’s shares to “underweight” from “equal-weight”.
Supermarket sandwich maker Greencore saw profits jump more than a third after a “stronger than expected” year.
The food-to-go specialist hailed the performance despite a fall in revenues, driven by disposals and the end of less profitable contracts.
The group, which supplies all major UK supermarkets, saw shares rise by more than 10pc in early trading.
Greencore told shareholders that group revenues were down 5.6pc at £1.8bn for the year to September 27.
It said this was caused by the sale of Trilby Trading vegetable oil business to KTC last September, and a decision to “exit a number of low-returning contracts” during the previous financial year.
These factors were however partly offset by price inflation and stronger sales volumes, with like-for-like sales up 3.4pc over the year.
Greencore also reported that pre-tax profits lifted by 36.1pc to £61.5m for the year.
Investors are beginning to shift their money away from the EU and towards Britain amid growing political turmoil in the bloc, a top lawyer has indicated.
Mark Austin, a partner at Latham & Watkins, which recently advised on ABC Technologies’ £1bn takeover of FTSE 250-listed TI Fluid Systems, said many were questioning whether Europe is the right place to invest.
His comments come as French markets were in turmoil at the start of this week amid the expected collapse of its government over its failure to secure agreement on its budget.
Mr Austin told BBC Radio 4’s Today programme: “We are seeing a lot of inquiries from people who think ‘actually, is Continental Europe a place where I would want to list a business right now?
“The same has been happening in Asia. There was a company that listed in August, CK Infrastructure, two weeks after the FCA’s rules changed because they didn’t want sole exposure to Asia.
“There is a sense that the UK is starting to establish itself as an independent financial centre, well-regulated, good time zone and it is not Asia, it’s not the EU and it’s not the US.”
The Guardian is offering to conceal the identity of journalists who cross the picket line as the Left-wing newspaper braces for its first significant strike in more than four decades.
Bosses have told reporters that if they fear colleagues’ reaction they do not need to put their names on their stories if they choose to come into work during this week’s planned walkout over plans to sell The Observer to a loss-making startup.
Any stories written by strike-breakers can instead run under a generic “Guardian staff” byline, employees have been told.
The Guardian has a hybrid working policy, allowing journalists to work from home part-time, so those who choose to work may not have to walk past a physical picket line.
Read how the newspaper is scrambling to limit the damage as hundreds of journalists prepare to strike for 48 hours from Wednesday.
Germany’s blue-chip Dax stock index jumped above 20,000 points for the first time, following a positive lead from US and Asian markets.
The index rose as much as 0.4pc to 20,006.8 points, beating its previous record set on Monday.
Stock markets in London moved higher after a series of strong company results.
The FTSE 100 and the FTSE 250 were both up 0.4pc on a busy morning of announcements.
Upper Crust owner SSP jumped 11.5pc to lead gains on the FTSE 250 after it raised its profit target despite pressure on labour costs from the Budget.
Close behind was sandwich maker Greencore, which jumped 9.8pc after it reinstated its dividend and launched an additional £10m share buyback after reporting its annual results.
Pub group Marston’s gained 5.2pc as it bounced back to profit and slashed its debt pile after selling off its remaining brewing business.
Curry’s dropped as much as 6.7pc to the bottom of the FTSE 250 after its stock rating was cut to “hold” by Deutsche Bank.
Holiday booking website On The Beach revealed surging revenues and profits as it secured a deal to offer Ryanair flights.
The company said total transaction value rose for a third straight year, rising by 15pc to £1.2bn after it signed a partnership agreement with the Irish budget airline.
In February, Ryanian struck a peace deal with the online travel agent weeks after it was branded a “pirate” by the carrier’s chief executive Michael O’Leary.
In its results for the year to September, On The Beach said revenue increased 14pc to £128.2m while adjusted pre-tax profits increased 25pc to £31m.
Its stock price rose by 9.6pc as it launched a £25m share buyback.
Chief executive Shaun Morton said: “This performance was driven by a combination of initiatives, including the successful integration with Ryanair, ongoing investment in our proprietary technology platform and further enhancements to our differentiated customer proposition.
“The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an OTB package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value.
“What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland.”
The FTSE 100 began the day higher following gains overnight in Asia and on Wall Street.
The UK’s blue chip index rose 0.3pc to 8,335.45 while the midcap FTSE 250 jumped 0.4pc to 20,849.58.
The so-called “risk premium” applied to French bonds hit its highest level in 12 years as Michel Barnier’s government nears collapse.
The difference between what investors are demanding to buy French government debt and German bonds reached its widest point since 2012 amid turmoil in Paris.
Barring a last-minute surprise, Prime Minister Michel Barnier’s fragile coalition will be the first French government to be forced out by a no-confidence vote since 1962 after he decided to use executive powers to attempt to force through his deficit-cutting budget.
German 10-year government bond yields have been on an eight-day falling streak as the political crisis in France sent investors to rush into safe-haven Bunds. Bond prices move inversely with yields.
The gap between French and German yields – a gauge of the premium investors demand to hold France’s debt – tightened slightly by 0.2 basis points (bps) to 86.7bps, after hitting 90bps on Monday, its widest level since 2012.
Germany’s 10-year yield, the benchmark for the eurozone, was up one basis point to 2.04pc.
Upper Crust owner SSP has revealed annual profits jumped by more than a third and said it expects further growth across the UK despite soaring wage costs due to recent Budget measures.
The group, which runs food outlets at global travel locations such as airports and train stations, reported pre-tax profits up 35pc to £118.6m in the year to September 30.
On an underlying basis, operating profits rose 26pc to £206m, or 32pc higher with currency movements stripped out.
The group flagged UK “cost headwinds” in the second half of its new financial year before the Government’s move to increase employers’ national insurance contributions (Nics) and the minimum wage, both taking effect from next April.
But it said it still expects “further growth and margin progression” in the UK despite the higher costs.
Turkey’s annual inflation rate slowed for the sixth month in a row in November, official data showed.
Consumer prices rose by 47.1pc last month, down from 48.6pc in October, according to the Turkish statistics agency.
It had peaked at 85.525pc in May 2022 and peaked again at 75.45pc in May this year but has reversed course after President Recep Tayyip Erdoğan reversed his controversial policy of tackling inflation with low interest rates.
Its main interest rate has been kept at 50pc for the past eight months.
Marston’s has revealed surging profits after it pulled out of brewing and sold the remainder of its beer business to Carlsberg for £206m.
The company, which brewed beer for 186 years, offloaded the outstanding 40pc stake in its brewery business in July as part of a push to focus on pubs.
It revealed today that underlying pre-tax profits rose by 64.5pc to £42.1m in the year to September, as its pub operating earnings increased by 17.9pc to £147.2m. It operates 1,339 pubs across the UK.
Chief executive Justin Platt said: “2024 has been a defining year for Marston’s as we began an exciting new chapter as a leading pure-play hospitality business.
“The sale of our stake in CMBC (Carlsberg Marstons Brewing Company) has been transformational, enabling us to significantly reduce debt, increase our flexibility and focus on what we do best: running great local pubs.
“This single-minded focus, combined with our rejuvenated strategy, is already showing in strong financial results. We’ve delivered like-for-like sales growth ahead of the market, significant margin improvements and robust cash flow, while current trading is encouraging with Christmas bookings already ahead of last year.
“Community-based pubs like ours play an essential role in UK society, backed by our hardworking local teams who give our guests great experiences every single day.
“All this gives Marston’s a superb foundation for sustainable, long-term growth, and fills us with confidence for 2025 and beyond.”
Donald Trump said he would “block” a planned takeover of US Steel by Japanese company Nippon Steel, a deal worth $14.9bn (£11.8bn) including debts.
“I am totally against the once great and powerful US Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump wrote on his Truth Social platform.
“Through a series of Tax Incentives and Tariffs, we will make US Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening.”
Embattled US Steel has argued that it needs the Nippon deal to ensure sufficient investment in its Mon Valley plants in Pennsylvania, which it says it may have to shutter if the sale is blocked.
Nippon Steel said after Trump’s comments that it was “determined to protect and grow US Steel in a manner that reinforces American industry, domestic supply chain resiliency, and US national security.”
The Barclays data came as separate figures from the British Retail Consortium (BRC) revealed a dip in sales last month, both in-store and online.
Total retail sales were down 3.3pc in the four weeks to November 23 compared to a year earlier.
Helen Dickinson, the chief executive of the BRC, said the fall was partly down to Black Friday falling a week later this year.
However, she said: “Even so, low consumer confidence and rising energy bills have clearly dented non-food spending.
“Spending on fashion was particularly weak as households delayed purchases of new winter clothing, while health spending was boosted by the season’s arrival of coughs and colds.
“Retailers will be hoping that seasonal spending is delayed, not diminished and that customers get spending in the remaining weeks running up to Christmas. If not, retailers will be feeling the squeeze from both sides as reduced revenues are met with huge additional costs next year.”
Sales are suffering as retailers warn they will have little choice but to put up prices in response to the Budget. In October, the Chancellor unveiled £40bn of tax rises, including a £25bn increase in employers’ National Insurance contributions.
Retail leaders including Sainsbury’s boss Simon Roberts and Asda’s outgoing chairman Lord Stuart Rose have warned that the higher costs risk leading to price rises in supermarkets.
Spending on household essentials has fallen at its sharpest pace in five years as Budget gloom hits consumer confidence.
Supermarket spend fell 1.8pc last month, according to new figures from Barclays, while spending on essentials, including groceries and fuel, were down 3.1pc over the month.
This was the steepest drop since 2019 when Barclays first started collecting the data.
Two thirds of people are looking for ways to reduce the cost of their weekly shop, according to Barclays, which cited growing concerns among shoppers about the state of the UK economy.
Spending on debit and credit cards was down by 0.5pc in November compared to last year. Jack Meaning, chief UK economist at Barclays, said: “Understandably, a number of factors weighed on consumer spending in November, notably easing consumer confidence post-summer, and expectations that post-Budget, inflation and interest rates will stay higher in the coming months.”
Confidence in the UK and global economies tumbled last month, Barclays said, while more people were concerned about inflation.
Thanks for joining us. We start the day with figures on supermarket shopping, which fell last month amid concerns about the economy, according to Barclays.
The bank revealed that spending on essentials in November, including groceries and fuel, fell at its sharpest pace since 2019.
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Asian stocks jumped as its tech sector rallied following record highs on Wall Street.
Meanwhile the dollar recovered lost ground against major rivals as traders weighed the outlook for US interest rates.
Investors were also monitoring the political turmoil in France as the government there teetered on the brink of collapse, leaving the euro languishing against the pound and the dollar.
The Chinese yuan faced its own challenges from the growing threat of more US tariffs on China, pushing it down to a 13-month low.
Japan’s tech-heavy Nikkei rallied 1.7pc, and South Korea’s Kospi advanced 1.8pc. Taiwanese shares gained 1.3pc.
Australia’s stocks benchmark rose 0.6pc and reached a fresh all-time high. Singapore’s Straits Times index rose more than 1.1pc to a 17-year peak.
Hong Kong’s Hang Seng rose 0.6pc but China’s mainland blue chips rose just 0.1pc.
On Wall Street, the Dow Jones Industrial Average fell 0.3pc to 44,782, the S&P 500 rose 0.2pc to 6,047 and the Nasdaq Composite rose about 1pc to 19,403.
In the bond market, the yield on benchmark US 10-year Treasury notes was flat on the day at 4.19pc.
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