UK threw us under the bus, says French vaccine maker Valneva

Valneva Covid-19 vaccine UK contract
The UK cancelled a €1.4bn (£1.2bn) deal for Valneva's Covid vaccines Credit: Andrew Parsons / No 10 Downing Street

The UK threw Valneva “under the bus” when it scrapped a €1.4bn (£1.2bn) deal to supply Covid vaccines, the boss of the French company has said.

The Government cancelled the deal over an alleged breach of contract in a shock move in September, sparking a 42pc plunge in the company’s stock.

Chief executive Thomas Lingelbach said the move blindsided Valneva and came after it had spent months renegotiating its agreement with the vaccines taskforce.

He said: “They threw us under the bus at I would say the most difficult point in time... We continue to believe that there is some level of accountability that the UK government has to take.”

    Wrapping up

    Germany's new government to set up €60bn climate fund

    Germany’s new government is planning to allocate €60bn (£50.4bn) to support its climate goals over the next four years.

    Incoming  Chancellor Olaf Scholz will raise the cash via a supplementary budget from existing outlays, Bloomberg reported.

    Olaf Scholz Credit: HANNIBAL HANSCHKE/REUTERS

    The plan is to boost renewable resources to reach 80% of the energy mix, as part of plans to phase out coal-fired power by 2030.

    The government has pledged to reach net-zero carbon emissions by 2045.

    FTSE 100 adds to gains

    The FTSE 100 has once again closed in the green this week, up 0.3pc to 7,310.

    Gains in consumer stocks offset losses coming from Vodafone's ex-dividend trading, which prompted a 3.1pc fall in the telecoms giant.

    Diageo, Unilever, British American Tobacco and Reckitt Benckiser were boosted by a weaker pound.

    Premier Inn owner Whitbread was still leading the pack, rising 3.2pc to 3,122, following a recommendation upgrade by Jefferies.

    It took over competitor Intercontinental Hotels, which was the top riser earlier today also following a positive broker note.

    Handing over

    That's all from me for today - thanks for following along. I'll hand over to Giulia Bottaro to take you through to the end of the day.

    ... and Greencore boss moves to SSP

    That didn't take long.

    Shortly after Greencore announced the departure of boss Patrick Coveney, SSP has identified itself as the poacher.

    The food group, which owns brands including Upper Crust, said Mr Coveney will take up the role of chief executive from 31 March.

    Shares in SSP rose 3.3pc, while Greencore is up 1.6pc.

    Cannabis firm plots float in the Big Smoke

    A medical cannabis company whose products are stocked in Selfridges is planning a London float to help develop a UK production site and reduce Britain’s reliance on imports. 

    Hannah Boland has more:

    Equinox International said it already had a licence from the Home Office to make, possess and supply medical cannabis at its 20-acre UK site, as well as pre-planning approval for a facility. 

    Cash raised in a float on London's Aim market will allow the company to build a cultivation, extraction and production facility on its land.

    It will mark a major step forward for the UK, which relies solely on foreign production and imports all medical cannabis.

    Xan Morgan, co-founder and chief executive of Equinox, said: "The UK medical cannabis market is forecast to be one of the largest in Europe and Equinox has a significant first-mover advantage to build a British champion and transform patients' lives."

    Equinox, backed by private equity firm Kingsley Capital Partners, is expecting the UK medical cannabis market to be worth up to £7.5bn within the next seven years. 

    Greencore boss to step down

    Greencore chief executive Patrick Coveney Credit: Paul Grover

    The boss of Irish food group Greencore is stepping down from his position, the company has announced.

    Patrick Coveney has told the board he'll step down as chief executive and director at the end of March 2022 to take up a new role in a different sector.

    The FTSE 250 firm said the search for Mr Coveney's successor would begin immediately.

    Gary Kennedy, chair of Greencore said:

    On behalf of the Board, I would like to express our deep gratitude to Patrick for leading the business for the past 14 years and for transforming Greencore into the UK's leading convenience food business.

    We wish him well in the future. We will commence a search process to appoint a new chief executive immediately and we will update on progress in due course.

    Fed to ramp up rate hikes faster than expected, says Goldman Sachs

    The Federal Reserve will withdraw stimulus measures and lift interest rates faster than previously thoughr due to surging inflation.

    That's according to Goldman Sachs, which predicted that the central bank will double the pace it’s withdrawing its massive asset purchase program to $30bn (£22.5bn) a month from January.

    It also predicted a rise in interest rates from near zero in June, followed by hikes in September and December, as well as two more in 2023.

    Economists at the bank had previously forecast increases in July and November.

    Under the new scenario, Goldman reckons the Fed will wrap up its asset purchase program in the middle of March.

    There's a “realistic possibility” for the central bank to start raising borrowing costs in May, followed by increases in July and November, they said.

    Britain suffers EU worker exodus

    Tom Rees has got some more on those ONS exodus figures from earlier today:

    More than 300,000 European workers have left Britain in the past two years as a pandemic exodus deepens labour shortages that are stifling the economic recovery.

    The number of EU nationals in the UK slipped by a further 5pc in the year to June 2021 despite the end of the winter lockdowns raising hopes of a rebound, according to the Office for National Statistics.

    Since mid-2019, the number of EU nationals in Britain has tumbled by almost a tenth to 3.4m in the wake of the pandemic and stricter immigration rules.

    The decline comes amid record job vacancies in the UK as sectors, such as hospitality and haulage, struggle to cope with widespread worker shortages.

    While EU nationals are leaving the UK, those from outside the EU are creeping higher. The number of non-EU nationals rose by 136,000 in the last two years to 2.6m, partially offsetting the fall from the Continent.

    Read Tom's full story here

    Londoners braced for mass Tube strike

    Credit: Anthony Devlin/PA Wire

    Any Londoners who weren't already planning to work from home tomorrow may want to change their plans.

    Tube drivers have confirmed they're going ahead with a large-scale strike on Friday that promises to bring chaos to public transport in the capital.

    The 24-hour walkout will start at 4.30am and affect the Central, Jubilee, Northern, Victoria and Piccadilly lines. Further strikes are planned on night-time services every weekend in December.

    The strike, organised by the RMT union, comes amid a dispute between train drivers and Transport for London over staffing for the Night Tube, which was due to restart tomorrow.

    Staff have demanded that the transport body reinstates a dedicated workforce for the Night Tube. This was dismantled when the service shut down during the pandemic, with drivers now part of the wider rotation.

    The union has argued that forcing other drivers to work night and weekend services will "wreck" their work-life balance.

    TfL said it's seeking talks to avoid the disruption and has assured the union there will be no job cuts as a result of the plans.

    Watchdog warns Google over cookie killing plans

    The data watchdog has warned Google that its plan to kill off “cookies” risks a fresh wave of invasive internet tracking.

    My colleague Matthew Field reports:

    The Information Commissioner’s Office published a “warning to companies that are designing new methods of online advertising” to stop excessive data collection.

    The privacy regulator added that planned changes by Google that will put an end to third-party cookies, or tracking tokens that feature on websites across the internet, must not simply replace them with other forms of invasive snooping.

    Google is planning to ban third-party cookies on its products by 2023, but will introduce alternatives so advertisers can continue their campaigns as part of its Privacy Sandbox project.

    The proposals have infuriated adtech rivals, which argue it will concentrate power around Google and allow it to act as a gatekeeper. Google has said its plans will help improve user privacy and choice.

    Laing O'Rourke chief to step down after 45 years

    Ray O'Rourke, founder and chief executive of Laing O'Rourke, is stepping down after 45 years as the construction giant gears up for a stock market float.

    Mr O'Rourke, who set up the company with his brother Des in 1978 with an initial project worth £2,500, will join Des as a deputy chairman.

    He will be replaced as chief executive next year by Seamus French, the current boss of Anglo American's bulk commodities and other minerals division.

    It comes as Laing O'Rourke, which has been involved in major UK infrastructure projects including Hinkley Point C, Heathrow Terminal 5 and Crossrail, prepares for an initial public offering by 2024.

    Retail sales rise at fastest pace since 1990

    Credit: Hollie Adams/Getty Images

    UK shoppers are facing a huge bill for their Christmas shopping this year, as retail prices rise at the fastest pace in more than three decades.

    New figures from the CBI showed retail selling prices leapt 77pc in November – the biggest jump since May 1990 – with a similar pace of growth expected next month as well.

    The stark figures highlight the impact of supply chain disruption, as well as inflation pressures such as soaring energy prices, ahead of the key Christmas trading period.

    Retailers reported that sales this month were strong for the time of year, helped in part by shoppers bringing forward their festive purchases amid fears of shortages this winter.

    Ben Jones, lead economist at the CBI, said:

    Christmas seems to have come early for retailers, with clothing and department stores in particular seeing a big upward swing in sales volumes in November.

    It seems likely that reports of supply chain disruptions prompted consumers to start their Christmas shopping early. And there are encouraging signs that retailers’ efforts to help avoid any festive disappointments may be paying off, with stock levels seen as adequate for the first time in seven months.

    Overall, retailers are becoming more optimistic, with both employment growth and investment intentions picking up strongly. Cost pressures remain a very real concern, however, with selling prices growing at the fastest pace since 1990.

    Intercontinental Hotels rises on bullish travel outlook

    Intercontinental Hotels Group is leading the FTSE risers today after analysts at Jefferies issued a bullish note on the outlook for travel.

    The brokers double upgraded their rating on IHG to buy, saying they saw a range of opportunities for hotels in 2022 as travel rebounds, including consolidation in the market.

    The group, which owns brands including Holiday Inn, rose 2.9pc to the top of the blue-chip index. 

    Jefferies also raised Premier Inn owner Whitbread to buy, pushing its shares 2.5pc higher.

    Office Christmas parties at risk as pub bookings struggle 

    Credit: Getty Images

    The office Christmas party remains on the endangered list as fewer employers book pubs for gatherings this festive season, the boss of Slug & Lettuce's owner has warned, writes Hannah Boland.

    Phil Urban, chief executive of Mitchells & Butlers, said he was expecting to see "less of the big office party but more smaller groups meeting" this festive season.

    "This is simply because not all offices have come back, so places like Canary Wharf still feel quiet,” he said.

    “Those offices that were doing big parties and coming in to ask if they could book a whole venue out. We've probably seen less of that."

    The comments were echoed by Patrick Dardis, chief executive of Young's, who said the pub chain was experiencing "very similar" trends on office party bookings to Mitchells & Butlers.

    However, he said, with smaller bookings having ramped up, "covers are well up for the festive period versus 2019 and some pubs have waiting lists for Christmas Day". 

    Gas prices fluctuate as carbon hits record high

    Gas prices are swinging between gains and losses as carbon prices climb to a new record high.

    Benchmark Dutch prices rose for a second day earlier this morning – extending their gains from Wednesday when the new German government unveiled climate plans proposing a price floor for carbon. Higher carbon costs can drive up demand for cleaner fuels such as gas.

    But this is being offset by signs of higher inflows that are helping to ease the supply crunch.

    Dutch prices dipped 0.2pc, while the UK equivalent has settled up a marginal 0.06pc.

    Huel looks to shake up market with London float

    Credit: Huel

    Huel is said to be gearing up for a London stock market float after enjoying booming demand for its products during the pandemic health craze.

    The plant-based meal replacement firm has hired bankers from Goldman Sachs and JP Morgan to advise on an initial public offering that could take place next year, the FT reports.

    The banks are also advising on a potential sale, though a listing is said to be the preferred option.

    Huel, which makes powders, drinks and snacks designed as healthy meal alternatives, has enjoyed a popular reception, particularly among younger more health-conscious consumers.

    It posted turnover of £71.6m in the year to July 2020, up from £50.2m a year earlier.

    European shares rise as Remy Cointreau hits new high

    It's a quiet day on the markets, with Wall Street shut for the Thanksgiving holiday in the US.

    But European stocks are faring well thanks to gains for utilities stocks and a sharp jump for drinks maker Remy Cointreau.

    The Europe-wide Stoxx 600 index rose 0.4pc, bouncing back from three-week lows hit on Wednesday amid concerns about fresh Covid restrictions.

    Utilities and healthcare stocks – which are seen as safer bets during times of economic uncertainty – were among the biggest gainers. Tech stocks also rose 0.8pc.

    Upmarket booze brand Remy Cointreau jumped more than 10pc to a record high after it raised full-year profit outlook on strong demand for its premium cognac.

    This helped push up rival Pernod Ricard, which gained 1.9pc, while London-listed Diageo climbed 0.9pc.

    Government hangs up on phone mast overhaul 

    Credit: Jason Alden/Bloomberg

    Community groups across the country are set to miss out on millions of pounds in rent payments from telecoms giants for phone masts on their land after the Government rejected calls for a rule change.

    PA has more details:

    Visitor centres, churches and schools had been urging ministers to overturn controversial rules that led to a recalculation of rental values, leaving them around £1bn out of pocket since 2017.

    The Digital Economy Act saw rents reduced by 90pc for organisations and landowners that host masts and telecoms infrastructure.

    A consultation was opened by the Department for Culture, Media and Sport, to look at changing the rules but the Government has now rejected them, instead offering a new complaints process.

    Campaigners reacted with fury at the decision and warned that charities and organisations could suffer.

    UK accused of handing out £14bn in oil and gas subsidies

    Britain has been accused of handing out almost £14bn in subsidies to the oil and gas industry since signing the Paris climate deal five years ago.

    Companies received £9.9bn in tax relief for new exploration and production, as well as £3.7bn in payments for decommissioning sites between 2016 and 2020, according to campaign group Paid to Pollute, which cited OECD analysts.

    The Government denied subsidising the fossil fuel industry, saying it follows guidelines issued by the International Energy Agency on phasing out subsidies.

    Campaigners will appear in the High Court next month to argue that the UK's oil and gas production strategy conflicts with its commitment to reaching net zero by 2050. They're citing the development of a new oil field off the coast of Scotland, which is part-owned by Shell.

    A number of countries committed to gradually eliminating fossil fuel subsidies at the COP26 climate summit this month. However, the UK refused to join an alliance of nations that set a date for phasing out production.

    BBC Three gets green light for TV relaunch

    BBC Three has been home to a string of recent hits including Killing Eve Credit: Aimee Spinks/BBC America

    BBC Three will return to TV screens for the first time in six years after the plans were given the green light by regulator Ofcom.

    The youth-focused channel was made online-only in 2016 as part of a major cost-cutting drive by the public service broadcaster.

    But after a string of popular hits – including Normal People, Fleabag and Killing Eve – the BBC will bring the channel back on air in January.

    Ofcom, which carried out a lengthy review of the proposals, said the move will help the BBC improve its reach among younger underserved viewers. The regulator will require 75pc of BBC Three's shows to be original UK productions.

    US urges Russia to open the taps as oil prices surge

    The US is trying to persuade Russia to ramp up its oil output in an effort to tame the recent surge in prices.

    The White House, which this week announced it would release 50m barrels of oils from its strategic reserves, is now lobbying the Kremlin to step up production, the Interfax news agency reported, citing Russia's foreign ministry.

    Tensions are rising between production cartel Opec – alongside allies such as Russia – and major consumers as they grapple for control over the turbulent global oil market.

    The coordinate release of reserves by countries including the US, China and the UK comes after Opec resisted repeated calls to accelerate its production to help ease prices.

    The production group is now said to be considering a pause to increases in its output in retaliation.

    Read more on this story:  Joe Biden to release millions of barrels of oil along with UK to drive down fuel prices

    Boris Johnson overhauls business advisers after CBI speech shocker

    Credit: Owen Humphreys / POOL / AFP

    Downing Street is said to have started shaking up Boris Johnson's business advisers amid a backlash over his bizarre speech at the CBI's annual conference.

    Sky News reports that officials in No. 10 have contacted members of the Build Back Better Council (BBBC) in recent weeks to inform them that their involvement would not be required in 2022.

    The group, launched in January this year, had 30 members, including BP, British Airways, HSBC, BT and GlaxoSmithKline.

    They were appointed for a term of 12 months, and the Government is now looking at bringing in a slate of new names.

    It comes amid widespread criticism of the Prime Minister's speech earlier this week in which he lost his thread several times and began trumpeting the children's cartoon character Peppa Pig.

    Airbus skirmishes with Italian rival in MoD helicopter deal row

    Airbus has hit out at an Italian rival for “dangling carrots” over UK investment as the two companies battle to win a major helicopter contract from the Ministry of Defence.

    My colleague Howard Mustoe has more:

    Leonardo, which owns AgustaWestland, has promised to invest £1bn in Britain if its bid to replace the ageing fleet of Puma medium-lift helicopters in 2025 is successful.

    However Colin James, the UK boss of Airbus Helicopters, said his company invested about £300m a year in the UK, where it makes wings and landing gear for civilian aircraft.

    “I haven’t heard [Leonardo] say what that £1bn will be used for, and I haven’t heard them say in what time period we’re talking about,” said Mr James. 

    “But what we can unequivocally say is that in any three-year period, Airbus is doing £1bn of investment in the UK and we’re not in the business of dangling carrots.”

    Read Howard's full story here

    Farfetch taps Clipper Logistics amid supply chain crunch

    Credit: REUTERS/Brendan McDermid/File Photo

    Luxury online retailer Farfetch has launched a joint venture with Clipper Logistics as it looks for extra support amid supply chain bottlenecks.

    The companies said the 50:50 tie-up would create a logistics system for inventory from Farfetch's businesses, as well as stock from other luxury brands.

    The joint venture is expected to launch early next year, initially offering online fulfillment services in Europe, Asia and North America before expanded into more areas.

    It comes after Farfetch said it's in advanced talks to enhance its partnership with Cartier owner Richemont, which would see the company taking a minority stake in Yoox Net-a-Porter.

    Two more energy suppliers go bust

    Two more energy suppliers have collapsed, regulator Ofgem has announced.

    Mansfield-based Entice Energy and London supplier Orbit Energy are both ceasing to trade.

    It comes after Bulb collapsed into special administration last night, leaving taxpayers to pick up the £1.7bn bill.

    Pound steadies ahead of Andrew Bailey speech

    Sterling has steadied near its 2021 low against the dollar as traders turn their attention to a speech by Bank of England Governor Andrew Bailey later today.

    The pound flattened at $1.3331 after hitting its lowest level since December 2020 on Wednesday.

    Analysts are looking for any indications of whether the Bank of England will lift interest rates at its meeting on 16 December after it shocked markets by holding steady earlier this month.

    That sent the pound crashing 1.2pc, which has fallen further against the dollar amid a strengthening for the US currency on expectations the Fed will lift rates.

    Against the euro, sterling edged 0.1pc lower at 84.15p, remaining close to a 21-month high reached on Monday as fresh Covid fears take their toll on the single currency.

    EU nationals flee Britain as Covid and Brexit hit

    The number of EU nationals in the UK has dropped sharply over the last year, highlighting the exodus from Britain that has contributed to acute worker shortages.

    The population of EU nationals fell by 182,000 to 3.4m in the year to the end of June. Since June 2019, it's fallen by more than 300,000.

    ONS data also showed net migration fell "considerably" in 2020, with 94,000 more EU nationals estimated to have left the UK than to have arrived.

    The body said the reduction in immigration was "most likely to be because of a combination of the impact of both the coronavirus pandemic and Brexit".

    Credit: ONS

    Brits rush to crisps and turkeys amid Christmas shortage fears

    With growing fears of empty shelves this Christmas, Britons are rushing to stock up in good time. The most popular items? Multipack crisps and frozen turkeys.

    The latest weekly data from the ONS and Kantar revealed stocks were lowest for multipacks of crisps, with shelf availability in 24pc of locations recorded as "low" or "none".

    Frozen turkey was completely unavailable in 10pc of locations – the highest of any item – as shoppers raced to get their Christmas dinners sorted.

    Paracetamol and Ibuprofen were also among the least available items, which may suggest Britons are gearing up for some festive hangovers.

    Credit: ONS/Kantar

    Barclays: Flutter and Entain now price in 'significant risk'

    Analysts at Barclays reckon Flutter and Entain shares now price in "significant risk" and seem cheap amid the looming threat of tighter regulation.

    The bank writes that recent coverage on problem gambling in the UK has added pressure on the Government ahead of the publication of the Gambling Review's white paper, expected early next year.

    Ladbrokes owner Entain and Flutter, which owns Paddy Power and Betfair, both dropped on Wednesday following a Telegraph report that more than 160 MPs and peers are calling for a £2 cap on online betting.

    Barclays said Flutter shares were pricing in a 60pc cut to online earnings, while Entain shares were pricing in a downgrade of around 40pc.

    Read more: Limit online bets to maximum of £2, say gambling reformers

    Hochschild surges as Peru backs down on mine closures

    Miner Hochschild has been given a much-needed boost this morning after Peru appeared to back down from threats to shut two of the company's key mines.

    The FTSE 250 firm lost a third of its value on Monday after it emerged the Peruvian government may force it to shutter two silver miners.

    But Hochschild surged as much as 26pc this morning – clawing back much of its losses – after the threats appeared to ease.

    Chief executive Ignacio Bustamante said:

    We are pleased that our Inmaculada and Pallancata mines can continue to operate without further uncertainty and, furthermore, we reaffirm our goal to increasing our resources and extending our mine lives, in accordance with current legislation.

    Sir, this is a(nother) Wendy's

    Credit: Adam Gerrard

    American fast food favourite Wendy's could be given a new lease of life in the UK as bosses look to expand its presence in Blighty after a successful relaunch.

    Wendy's, which returned to the UK in June after a two-decade hiatus, is planning to open a further 50 sites across the country next year.

    The burger chain said it was seeking franchise partners and also had its eye on Europe, with launches in France, Germany and Spain.

    Abigail Pringle, Wendy's chief development officer, said: "We have seen incredible success that outperformed our expectations, and it's clear to us that customers are loving our fresh, high-quality food."

    Wendy's opened five restaurants in Reading, Stratford, Oxford, Croydon and Romford earlier this year. New locations planned for 2022 include Brighton, the Midlands and discussions are ongoing with franchise partners in Scotland, Wales, Northern Ireland and the Republic of Ireland.

    Fuel retailer Vivo Energy snapped up in £1.7bn deal

    Shares in Vivo Energy have jumped this morning after it secured a takeover deal from trading giant Vitol Group worth around $2.3bn (£1.7bn).

    Rotterdam-based Vitol, which already owns 36pc of Vivo, will pay $1.85 per share for the company, which distributes and markets Shell and Engen branded fuels across Africa.

    The deal brings Vivo back in house for the oil trader, which floated the British firm in a £2bn stock market debut in 2018.

    It marks efforts by the world's biggest independent oil trader to find new outlets for traditional fuels as Western companies accelerate their shift to green energy.

    Shares in Vivo leapt as much as 20pc following the announcement.

    FTSE risers and fallers

    The FTSE 100 has edged higher this morning, spurred on by gains for mining stocks amid rising commodity prices.

    The blue-chip index rose as much as 0.2pc before paring gains, with FergusonBHP and Anglo American among the biggest driving forces.

    The progress was held back by heavyweight stocks Vodafone and Imperial Brands, however, which both fell nearly 4pc as they began trading ex-dividend.

    The FTSE 250 gained 0.3pc, with All Bar One owner Mitchells & Butler rising as much as 7pc after narrowing losses. The biggest gainer was Vivo Energy, which jumped 20pc after it announced a $2.3bn (£1.7bn) takeover deal.

    UK threw us under the bus, says French vaccine maker Valneva

     REUTERS/Stephane Mahe/File Photo

    The Government threw Valneva "under the bus" when it scrapped a €1.4bn (£1.2bn) Covid vaccine agreement, the boss of the French company has said.

    Britain cancelled the deal over an alleged breach of contract in a shock move in September, sparking a 42pc plunge in the company's stock.

    Chief executive Thomas Lingelbach said the move blindsided Valneva and came after it had spent months renegotiating its agreement with the Vaccines Taskforce.

    He said: “They threw us under the bus at I would say the most difficult point in time... We continue to believe that there is some level of accountability that the UK government has to take.”

    On Wednesday Boris Johnson said he was disappointed the Valneva jab hadn't gained approval in Britain.

    China hits back at US over latest sanctions

    Tensions between the US and China continue to escalate this morning, with Beijing saying it will take all measures necessary to protect its companies and threatening retaliation over the latest wave of US sanctions.

    The US government added 12 firms to its trade blacklist on Wednesday over national security and foreign policy concerns, in some cases citing their help in developing the Chinese military's quantum-computing efforts. 

    Commerce ministry spokesperson Shu Jueting described the measures as groundless and said China reserved the right to take countermeasures.

    All Bar One owner jumps despite cost warning

    Credit: Jim Winslet

    All Bar One owner Mitchells & Butlers has narrowed its losses for the year, but warned it was facing a hit from surging energy and wage costs.

    The pub and restaurant group, which also owns brands including Toby Carvery, Miller & Carter and Browns, slimmed its pre-tax losses to £42m for the year to 25 September, down from £123m the previous year.

    Sales dropped 9.6pc over the year due to lockdown closures, but the company said trading had picked up 2.7pc in the last eight weeks as punters flocked back. Shares jumped as much as 7.6pc in early trading.

    However, Mitchells & Butlers issued a cautious outlook on the upcoming year, saying it was battling a rise in costs, especially in utilities and employment.

    The group said that while it was mitigating the impact of these cost rises, there would "inevitably" be an impact on its full-year performance.

    Chief executive Phil Urban said: 

    The trading environment remains challenging and cost headwinds continue to put pressure on the sector. 

    However, we have strengthened our balance sheet and returned to profitability and cash generation, allowing us to resume our capital plan and Ignite programme which will deliver sales and efficiency improvements to help combat these challenges. 

    FTSE ticks up at the open

    The FTSE 100 has nudged higher at the open as it targets its fourth day of gains.

    The blue-chip index is up 0.1pc at 7,294 points.

    How bad is the German fourth wave?

    Germany was already battling huge inflation and supply chain troubles, which have taken their toll on its key manufacturing sector.

    But a recent resurgence of Covid cases and tighter restrictions now threaten to derail its services sector too.

    Official figures released today show Germany has become the latest country to surpass 100,000 deaths from Covid since the pandemic began.

    The country's disease control agency said it recorded 351 additional deaths over the past 24 hours, taking the total toll to 100,119.

    It's the fifth European country to pass this mark after Russia, the UK, Italy and France. However, its current case numbers are the worst across the continent.

    Outlook for Christmas 'somewhat bleak'

    The latest barrage of downbeat economic data is casting something of a shadow over the upcoming arrival of Olaf Scholz, who yesterday secured an agreement to replace Angela Merkel as Chancellor at the helm of a new coalition government.

    Germany has tightened some restrictions to combat rising cases, including shutting Christmas markets and barring unvaccinated people from bars, gyms and leisure centres in some regions.

    But fears are growing about a full-blown lockdown in line with neighbouring Austria.

    The GfK survey found that Germans were significantly more pessimistic about the outlook for the economy than last month. Income expectations also dropped, while the willingness to splash out on big purchases hit a nine-month low.

    GfK consumer expert Rolf Buerkl said:

    Consumer sentiment is currently being squeezed from two sides. On the one hand, the number of cases in the fourth wave of the coronavirus pandemic is exploding, which threatens to overwhelm the health system and could lead to further restrictions.

    On the other hand, the purchasing power of consumers is dwindling due to a high inflation rate of 4pc. The outlook for the upcoming Christmas season is now somewhat bleak.

    Read more: Germany faces winter of stagnation as Covid surge savages eurozone economy

    German consumer confidence slumps

    Good morning. 

    There's even more misery over in Germany this morning, where a slew of new data has compounded fears about the outlook for Europe's largest economy.

    The forward-looking GfK barometer showed consumer confidence tumbled to -1.6 for December, down 2.6 points from the previous month.

    Meanwhile, estimates for economic growth in the third quarter were revised down from 1.8pc to 1.7pc.

    The figures reflect the huge inflationary pressures weighing on Germany's manufacturing-heavy economy. These are now being compounded by renewed Covid worries, with a recent surge in cases sparking fears of another lockdown.

    5 things to start your day 

    1)  Germany faces winter of stagnation  Business confidence sinks to a seven-month low as as a fourth Covid wave and climbing energy prices batter companies

    2)  New Zealand raises interest rates again  Country races to tackle rocketing prices after 'zero Covid' strategy fails to protect economy from pandemic

    3)  JP Morgan's Jamie Dimon apologises twice for Chinese Communist Party joke  Bank chief said ‘they are probably listening anyway’

    4)  Boss of French telecoms firm Orange quits after fraud trial  Stephane Richard was found guilty of complicity in misuse of public funds

    5)  Google staff protests over compulsory jabs show cracks in Joe Biden’s vaccine policy  Hundreds of the tech giant's staff sign petition against mandatory vaccines 

    What happened overnight 

    Equity markets in Asia mostly fell on Thursday as a batch of strong economic data spurred expectations that the Federal Reserve will withdraw its vast financial support and lift interest rates earlier than thought. The S&P 500 and Nasdaq closed on Wednesday with healthy gains ahead of the Thanksgiving break. But the Dow edged slightly lower, and Asia largely followed suit.

    Coming up today

    • Corporate: Mitchells & Butlers, MJ Hudson (Full-year results); Aviva (Trading update)
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