The latest from London: Bad news accumulate for the British economy

Volatility remains high, and after yesterday’s 1.3% gain, the UK's FTSE 100 was down 0.2% this morning, as concerns linger over the impact of the Omicron coronavirus variant on the global economic recovery.

Adding to the dire mood is new data showing that Britain’s third quarter GDP growth grew at a slower pace than expected, at 1.1%, which was even before the surge of the Omicron variant in the country. The economy is still 1.5% smaller than before the start of the pandemic. It was also revealed that business investment fell by 2.5% year-on-year in the third quarter and was more than 11% below its pre-pandemic level.

Among stocks, Rolls Royce gained 1.1% after unveiling plans to invest in methanol technology for climate-friendly shipping.

 

Things to read today:

Wall Street Ends Crazy Year With Existential Angst and Big Bonuses (Bloomberg)

Boris Johnson’s personality politics offer diminishing returns (Financial Times)