Confidence in economy slumps as business leaders view Brexit deadlock ‘with trepidation’. Confidence in the economy among business leaders has collapsed to its weakest point in 18 months as Britain’s exit from the EU ticks closer. Company bosses surveyed by the Institute of Directors (IoD) revealed a deepening pessimism for the year ahead as economic confidence hits its lowest ebb since the Government lost its majority in the House of Commons in last year’s snap general election. Leaders fear continued uncertainty could damage the economy by scuppering the UK’s existing trade ties and squeezing the tight labour market.
Outsourcers falling out of favour after Carillion’s collapse. More than £4bn has been wiped off the value of London-listed outsourcers this year as investors have turned their back on the sector in the wake of Carillion’s sudden demise. Interserve (IRV), G4S (GFS), Babcock International Group (BAB), Kier Group (KIE), Capita (CPI) and Mitie Group (MTO) have seen their combined market value fall by around 40% since their fellow contractor went under in January. Carillion, whose work ranged from building roads to cleaning prisons and feeding schoolchildren, collapsed under billions of pounds of debt, leaving the Government to pick up the pieces and an air of negative sentiment over the sector. The biggest falls in absolute terms were at giants G4S, a security specialist, and defence contractor Babcock, which each saw their market value drop by around £1.1bn.
Scottish Power in talks with Nissan over electric car drive. Scottish Power is planning a fresh strategic alliance with Nissan to accelerate its drive into the electric car charging market. The “big six” energy supplier is understood to be in talks with the Japanese giant over a partnership that would offer new electric vehicle buyers an inclusive car charging package. The first strategic deal between a major UK energy company and an electric carmaker could emerge within weeks, and is expected to be similar to Scottish Power’s deal with the Arnold Clark motor dealership announced last month. Under the terms of the “one-stop” charging plan, the nationwide dealership allows Scottish Power customers to sign up for a green energy tariff and home charger installation at the same time as their electric vehicle lease agreement.
Wall Street surges as Dow soars 1,000 points in biggest single-day gain ever. Stocks rocketed on Wednesday in Wall Street’s best day in 10 years, snapping a stomach-churning, four-day losing streak and giving some post-Christmas cheer to a market that has been battered this December. The Dow Jones Industrial Average shot up more than 1,000 points – its biggest single-day point gain ever – rising nearly 5% as investors returned from a one-day Christmas break. The broader S&P 500 index also gained 5%, and the technology-heavy Nasdaq rose 5.8%. But even with the rally, the market remains on track for its worst December since 1931, during the depths of the Depression, and could finish 2018 with its steepest losses in a decade.
Oil in the doldrums after slipping below $50 a barrel. Global oil prices are struggling to move higher after sliding below $50 a barrel for the first time in more than a year. The benchmark Brent crude price slid to $49.93 on Christmas Eve after collapsing by more than 6% under the weight of growing fears of a US shale resurgence. Oil edged back to around $50.50 yesterday but was still about 40% lower than in October, when prices rose ahead of fresh US sanctions against Iran. The latest slump comes after the world’s largest oil producers agreed to keep a rein on crude exports to help shore up prices.
