FTSE 100 and oil slide as Moderna boss casts doubts over vaccines - live updates

Turkey's economic growth eclipsed most of its peers to expand 7.4pc in the third quarter, but surging inflation and a currency crisis means the boom could be short-lived.

Growth in the three months to the end of September was in line with forecasts. On an adjusted basis, the figures showed an expansion of 2.7pc from the previous three months, when GDP surged 22pc as the economy bounced back from the worst phase of the pandemic.

The lira weakened after the data release, trading 0.5pc lower at 12.89 against the dollar. It's hit a series of record lows in recent weeks as a string of interest rate cuts boosts growth but takes its toll on incomes.

Economists have urged President Recep Tayyip Erdogan, who has pushed through rate cuts at the central bank, to reverse course, arguing that uncontrolled inflation would ultimately act as a brake on growth, and even drag the economy into recession. 

But he's doubled down on his position, vowing victory in his "economic war of independence".

Inflation in the eurozone has rocketed to its highest level since the launch of the single currency in 1999, piling further pressure on the European Central Bank to act ahead of its meeting next month.

Consumer prices rose 4.9pc on an annual basis in November, topping forecasts of 4.5pc. A separate figure that excludes volatile components such as food and energy also hit a record high.

It comes after Germany reported inflation of 6pc this month – the fastest since the early 1990s – while French prices leapt at the fastest pace in more than a decade.

The ECB has resisted calls for a tightening of monetary policy, insisting that the current spike in inflation will be short-lived.

While President Christine Lagarde is sticking to the script, some officials have warned that price pressures could take longer to subside.

The central bank meets on 16 December, when it's set to announce the end of its pandemic bond-buying plan and outline how regular purchases and interest rates will develop.

Euro area #inflation up to 4.9% in November: energy +27.4%, services +2.7%, other goods +2.4%, food +2.2% - flash estimate https://t.co/akdo6EUq8b pic.twitter.com/PkNsUmYd7F

— EU_Eurostat (@EU_Eurostat) November 30, 2021

Regulators have ordered Facebook to undo its $400m (£290m) takeover of Giphy after concluding the deal would reduce competition between social media firms.

The Competition and Markets Authority said the merger would enable Facebook to increase its market power by requiring rivals to hand over more data in exchange for access to gifs, or even blocking their access altogether.

It also said the deal would harm social media users, as well as the UK advertising market.

The verdict is the first time the CMA has blocked a Big Tech takeover and comes as the watchdog launches a crackdown on anti-competitive behaviour by Silicon Valley giants.

Stuart McIntosh, chair of the CMA's investigation, said:

The tie-up between Facebook and Giphy has already removed a potential challenger in the display advertising market.

Without action, it will also allow Facebook to increase its significant market power in social media even further, through controlling competitors’ access to Giphy GIFs.

By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising.

Glencore is coming under fierce pressure from an activist investor to spin off its coal business amid concerns it's putting off environmentally-conscious investors.

Hedge fund Bluebell Capital said the mining giant could create more value for shareholders if it separates that business, simplifies its asset base, disposes of non-core asset Viterra, and tackles governance issues.

In a letter to the company, seen by Bloomberg, Bluebell's partners wrote: “Due to its coal business, Glencore is not an investible company for investors who place sustainability at the heart of their investment process.

“A clear separation between carbonised and de-carbonised assets is needed to increase shareholder value and remove the ‘coal discount’, whilst simultaneously ensuring that coal assets will be managed responsibly.”

It described Glencore's plans to keep thermal coal as part of its portfolio until 2050 as both “morally unacceptable and financially flawed”.

It's the latest intervention by London-based Bluebell, which has launched activist campaigns at a string of companies including GlaxoSmithKline.

Accenture will create 3,000 new jobs in the UK over the next three years as part of a push into technology services, with half of the roles to be based outside London. 

Simon Foy has the details:

The professional services firm said the new jobs are being driven by increased client demand for services in cybersecurity, cloud engineering, data, intelligent operations and platforms. 

Half of the positions will be based in the capital, with the rest split across Accenture’s offices in Newcastle, Manchester, Leeds, Edinburgh and Glasgow in a boost for the country’s regional economies. 

The move represents a vote of confidence in Britain's tech industry as firms increasingly seek advice on how to boost their digital offerings. 

The move is the latest example of a major international employer boosting their workforce in the UK’s regions. 

In April, the US investment bank Goldman Sachs announced it was opening a new office in Birmingham, its biggest site in the UK outside of London, creating hundreds of tech jobs in the process.

Sterling has dropped to a two-week low against the euro as traders fear the new omicron variant will lead the Bank of England to keep interest rates unchanged.

The pound slipped 0.3pc to 85.02p after touching a two-week low earlier today. Against the dollar, it's up 0.5pc at $1.3366 after crashing to an 11-month low at the end of last week.

Markets have come under further pressure today after Moderna's chief executive warned existing Covid vaccines were unlikely to be effective against the new strain.

The UK is getting a new clearing bank for only the second time in the last 250 years – and it's launching with valuation of $1bn (£750m).

Bank of London, founded by former Barclays executive Anthony Watson, is aiming to compete with the Big Four UK banks that dominate the market for approving and processing payments, the Financial Times reports.

The new upstart says it will offer cheaper, faster and safer transactions that the incumbents. Its services will include moving money around the world, cash management and compliance.

Bank of London secured its $1.1bn valuation following a $90m funding round led by New York-based investment company ForgeLight,

Natural gas prices are on the rise again, with Europe's benchmark rising above €100 (£85) ahead of a series of auctions for Russian supplies.

Day-ahead auctions for space on Ukrainian pipelines and capacity at a German station are being seen as a key test of how willing Moscow is to increase flows to Europe.

While Russia has said it aims to keep refilling storage sites on the continent until the end of December, it so far hasn't used short-term auctions to turn up supplies.

Dutch benchmark prices extended yesterday's gains to as much as €101 per megawatt-hour, while the UK equivalent jumped 6.5pc.

West End landlord Shaftesbury has brought back its dividend after a rebound in footfall for restaurants, bars and retailers helped it cut its annual loss.

The FTSE 250 group, which owns swathes of properties in Soho, Carnaby and Chinatown, has bounced back strongly since the easing of restrictions in July, with footfall at weekends now back to pre-Covid levels and weekdays at around 80pc.

This helped it narrow losses to £195m from £696m a year earlier, and the company recommended a final dividend of 4p per share.

But in a sign of the pandemic's lingering impact, Shaftesbury said net asset value per share – a key measure of the value of its buildings – had fallen 15pc to £6.19, while overall portfolio valuation declined 5.4pc on a like-for-like basis.

Shares fell 2.5pc in early trading.

Brian Bickell, chief executive of Shaftesbury, said:

There has been great progress on Shaftesbury's road to recovery in recent months.

Although there is still further to travel before certainty and confidence fully returns, we believe that the combination of our exceptional and adaptable portfolio, and our culture, people and relationships will deliver a sustained return to growth and prosperity, and ensure we live up to the expectations of our shareholders and other stakeholders, for many years to come.

French inflation accelerated at its fastest pace in more than a decade in November as surging energy costs offset a fall in fresh food prices.

Inflation in the eurozone's second-largest economy hit 3.4pc this morning – ahead of economists' expectations and the sharpest annual increase since 2008.

It comes after Germany recorded a 6pc increase in its price index, marking the highest level in more than three decades.

The numbers will put even more pressure on the ECB, which is reluctant to increase interest rates, saying the spike in inflation is only temporary.

Data for inflation across the eurozone is due out later this morning.

Zara owner Inditex has appointed Marta Ortega as its new chairman in a generational change that hands over the reins of power to its founder's daughter.

Ms Ortega will replace current chairman Pablo Isla, who is stepping down at the age of 57. Oscar Garcia Maceiras will become chief executive immediately, replacing Carlos Crespo, who held the position for two years.

The executive reshuffle marks the long-awaited handover of power to the 37-year-old daughter of Inditex founder Amancio Ortega.

But the appointment of a new chief executive at the world's largest fashion retailer took analysts off guard, and shares fell more than 3pc.

It's a rather miserable start to the day for the FTSE 100, which has shed 1pc on renewed worries about the omicron variant.

The blue-chip index had staged a modest rebound from last week's rout, but this appears to have been short-lived and it's now on course for its worst month in more than a year.

Warnings from Moderna's boss over vaccine efficacy dragged AstraZeneca down 1.5pc.

Banking stocks fell as Covid jitters dented expectations of an interest rates rise, while oil majors BP and Shell also lost ground as crude prices tumbled once again.

EasyJet rose 0.8pc even as it warned the new variant was denting travel demand, with its full-year loss coming in at the better end of expectations.

The domestically-focused FTSE 250 has fallen 0.7pc, with published Future jumping 16pc after upgrading its profit forecasts.

Online gambling group 888 said it expects to complete its £2.2bn takeover of rival William Hill's European business in early 2022.

The two firms agreed the tie-up, which will return the group's 1,400 betting shops to British hands, in September.  888 said it's now received all the relevant regulatory approvals, with a shareholder vote expected next year.

The merger will see 888 take over William Hill's international arm from Las Vegas casino operator Caesars Entertainment, which had acquired the gambling giant in April for £2.9bn.

888 said the deal will create a combined group with more than 12,000 employees and annual revenues of $2.5bn (£1.8bn).

The online betting firm – which will make its first foray into physical betting shops through the deal – has said it also plans to raise around £500m in equity before the acquisition is completed.

Itai Pazner, chief executive of 888, said:

This transaction will create one of the world's leading online betting and gaming groups with superior scale, leading technology, increased diversification, and a platform for strong growth, supported by a portfolio of iconic brands [...]

Given the strong progress we have made, we now expect the transaction to complete in the first quarter of 2022 and are excited about the opportunities ahead of us as we combine two powerful and complementary businesses.

It's not all bad news this morning...

Shares in Future have jumped after the media group hailed another strong year of growth and lifted its forecasts for both revenue and profit.

The FTSE 250 company, which owns Go Compare and magazine titles including Country Life, posted a 79pc increase in revenue to £606.8m and more than doubled its pre-tax profit to over £100m in the year to the end of September.

Chief executive Zillah Byng-Thorne said: "As we transition from the Covid-19 boosted comparators, we expect the growth to accelerate in the second half next year. We expect our operating model to drive enhance scalability and operating leverage, leading to further margin expansion."

As a result, Future said results for the 2022 full year would come in materially ahead of expectations.

Shares jumped as much as 15pc to the top of the FTSE 250.

EasyJet has insisted it's not writing off winter just yet, despite fresh travel curbs that are piling further pressure on the sector's recovery.

Boss Johan Lundgren said the Government had been clear it would review its restrictions and wanted to remove them as soon as possible.

He told the BBC: "Clearly they want to have the ability as soon as it is safe to do so to remove all the restrictions. So we take a lot of comfort in that... So we're not writing off the winter.

"But having said that, we thought always that this year was going to be a year of two halves, where the winter was going to be, you know, something that had a lot of uncertainty... and that assumption seems to be the right one."

The FTSE 100 is back in negative territory this morning, undoing its modest rebound at the start of the week.

The blue-chip index is down 1pc at the open at 7,041 points.

In more grim airline news, Virgin Atlantic's future has been plunged into uncertainty by the latest travel bans.

Hannah Boland has more:

An effort by Virgin Atlantic to raise £400m in rescue funding has been thrown into doubt by fears of new travel curbs, raising concerns among industry observers about its prospects over winter.

Sir Richard Branson’s airline has been in talks with existing shareholders and lenders over a cash lifeline in recent weeks, after extended restrictions on travel from the UK to the United States forced it to shelve plans for a public listing.

Now Virgin Atlantic’s finances face yet more strain as the omicron variant prompts the suspension of some long-haul routes and renewed testing and quarantine obligations for travellers.

The airline, which has already made deep cost cuts and borrowed heavily, is viewed as especially vulnerable to a resurgence of coronavirus compared with listed rivals such as International Airlines Group, the owner of British Airways.

Gerald Khoo, an analyst at Liberum, said omicron "certainly doesn’t make it any easier" for airlines to raise cash. Unlike Virgin Atlantic, “the major listed airlines have done what they need to do”, he added.

Read Hannah's full story

EasyJet has said the resurgence of the virus has hit bookings as it posted a £1.14bn loss for the year.

The budget airline has pulled back capacity plans for the first quarter as some passengers postpone or cancel their travel plans, with boss Johan Lundgren warning that "many uncertainties remain as we navigate the winter".

EasyJet had planned to hit 70pc of 2019 capacity over winter, but cut this to 65pc. It now expects 70pc in the second quarter, with summer 2022 close to pre-Covid levels.

It comes after Britain brought in fresh travel restrictions in the wake of the omicron strain, threatening to derail the sector's fragile recovery.

The company's loss was at the better end of its forecasts, but still marked the second year in a row with losses of more than £1bn. It did not give full financial forecasts.

Market rebounds have been cut abruptly short, and it's all because of one man's comments...

Stephane Bancel, chief of pharma giant Moderna, poured cold water over hopes that current vaccines will be able to handle the omicron variant.

He told the FT: "There is no world, I think, where [the effectiveness] is the same level . . . we had with [the] Delta [variant].

“I think it’s going to be a material drop. I just don’t know how much because we need to wait for the data. But all the scientists I’ve talked to . . . are like, ‘This is not going to be good’.”

Mr Bancel said scientists were worried because 32 of the 50 mutations in the new strain were on the spike protein, which current vaccines focus on to boost the human body’s immune system to combat Covid.

Good morning. 

It looks like it could be another tricky day on the markets, with sentiment over the new omicron Covid strain souring overnight.

While oil and stocks regained some ground on Monday following last week's sell-off, it seems the rebound may be short-lived.

It comes after downbeat comments from Moderna boss Stephane Bancel, who shunned the more optimistic noises coming from rivals such as Pfizer and BioNTech and warned current vaccines could struggle with the new strain.

1) Accenture to create 3,000 cybersecurity jobs  Half of the roles will be based outside London in a vote of confidence in Britain's growing tech industry

2) Twitter boss Jack Dorsey steps down  He said the social media platform needs to "break away" from his grip as its founder

3) AJ Bell woos young investors with no-commission trading app  The broker follows in Robinhood’s footsteps in wake of meme stocks trading frenzy

4) German inflation hits post-reunification high  The figure jumped to 5.2pc in November, up from 4.5pc the previous month, as energy bills rocket 

5) Afiniti founder quits investment firm in wake of sex assault claims  Zia Chishti stepped down from TRG Pakistan ahead of a board meeting to consider his future

Asian share markets weakened sharply in late trading Tuesday, giving up earlier gains as investors worried the Omicron variant will prove more resistant to vaccines and could cause more widespread global economic disruption.

The region's trading followed a brighter lead from Wall Street on Monday which reacted positively to news from US President Joe Biden that new lockdowns as a result of the variant were off the table for now.

Positive sentiment though was replaced swiftly with a sudden burst of risk aversion in most major asset markets across Asia after the head of drugmaker Moderna told the Financial Times that Covid-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.45pc lower on Tuesday.

In Australia, the S&P/ASX200 closed up 0.22pc after earlier being up 1.15pc. Japan's Nikkei retraced all of its 1.2pc gains notched earlier in the session and turned negative later on Tuesday.

Hong Kong's Hang Seng Index shed 1.86pc while China's blue chip CSI 300 index was off 0.3pc.

Activity in China's services sector grew at a slightly slower pace in November, official data showed on Tuesday, as the sector took a hit from fresh lockdown measures as authorities raced to contain the latest outbreak.

• Corporate: EasyJet, Shaftesbury, Future, Greencore, Countryside Properties, Topps Tiles (Full-year results); Pennon, Discoverie (Interims); Micro Focus (Trading update)
• Economics: PMI (US, China); consumer price index (EU); house price index (US); consumer confidence (US)