Closing summary - US stock markets open higher

Wall Street’s main indices rose higher at the open on Tuesday, following the lead of Europe and Asia, rebounding from the previous day’s falls. Stocks were also boosted by strong financial results from the likes of Nike.

European stock markets remained positive in afternoon trade on Tuesday, after the tumble in the previous session, as investors weigh up what the spread of Omicron means for the global economic recovery.

London’s FTSE100, Germany’s DAX and the pan-European STOXX 600 all remained around 1.4% higher on the day during late-afternoon trade.

The big story of the day in the UK was when chancellor Rishi Sunak finally delivered the Christmas gift that hospitality and leisure businesses had been demanding, ever since concerns about the Omicron variant caused their customers to cancel their festive plans, causing a severe decline in trade.

However the size and scope of the £1bn funding package left many - including nightclubs and travel firms - expressing their disappointment.

• UK public borrowing surged in November as Covid cases started to rise again
• The spread of Omicron darkened the mood of German consumers, amid reports that Europe’s largest economy is about to reimpose tighter rules on social contact, before the new year. The move is expected the closure of nightclubs, restrictions on meetings of more than 10 vaccinated people and moving larger sports events back behind closed doors.

Read my colleague Richard Partington’s analysis of Sunak’s bailout here:

And to keep up with all the latest political developments, be sure to keep an eye on the Guardian’s Politics Live blog. My colleagues there are following the most recent announcements, including the decision by Scotland’s Nicola Sturgeon to cancel traditional Hogmanay street parties and move sporting events behind closed doors.

You can follow all of the coronavirus news from around the world here:

Thanks for joining me today, and we’ll be back with more news from the world of business, economics and the financial markets tomorrow morning. JP

The Turkish lira is continuing its recent wild ride today, despite moves from the government to try to reduce the impact of currency swings on Turkish citizens.

On Monday, President Erdogan announced a series of measures aimed at encouraging Turks to hold their savings in the lira, rather than other currencies such as US dollars.

It came after the Turkish lira crashed to a record low against the dollar, after Erdogan insisted over the weekend that he was sticking to his economic plans, which have seen multiple interest rates cuts that have sent the currency tumbling.

On Monday, the lira plunged by 10%, reaching a level of 18.4 to the US dollar, before shooting up to 12 after Erdogan’s announcement. It came after Turkey’s worst currency crisis in years, which saw the lira crash by around 40% in a little over a month.

The lira has been trading lower today, at around 12.6 to the dollar, but remains volatile.

Victoria Scholar, head of investment, at interactive investor, said the Turkish lira has fluctuated wildly in the last 24 hours:

“After slumping 10% on Monday, the lira closed the session up over 20% in the biggest one-day trading range on record.”

Reuters is reporting (quoting banking sources) that some foreign banks are reviewing their dollar lending limits for Turkish businesses, because of the currency’s wild movements. If this happened, it could push up borrowing costs.

You read an in-depth report from Istanbul about the currency crisis and Turkey’s economy here:

Trade unions and economists have criticised the government for - as they see it - not focusing on workers in today’s bailout announcement.

The Trades Union Congress (TUC) said ministers should have offered targeted support for wages in today’s announcement, or should have increased sick pay. It’s calling for a new furlough scheme.

Frances O’Grady, the TUC’s general secretary, said:

The government has abandoned hospitality, arts and leisure staff.

Millions of workers will go into Christmas worrying for their jobs and anxious about what they will do if asked to self-isolate.

The chancellor must go back to the drawing board. We need a new targeted furlough scheme that covers at least 80 per cent of workers’ wages, and that guarantees that no-one furloughed is paid less than the minimum wage.

Here’s the view of Torsten Bell, chief executive of the Resolution Foundation think tank:

Representatives of the travel industry are also not impressed by the chancellor’s announcement, complaining they have been overlooked.

Association of British Travel Agents (Abta) has accused Rishi Sunak of ignoring “the direct impact of government policy decisions on businesses reliant on international travel.”

Luke Petherbridge, director of public affairs for Abta, said:

Travel agents, tour operators and travel management companies will rightly be asking why they haven’t been given the same treatment as other businesses that are suffering at this time.

Average annual revenue across the travel industry is down by nearly 80% on pre-crisis levels even before Omicron emerged, and the re-introduction of enhanced testing – both pre and post arrival – have added significant costs and notably dampened consumer demand.

He added:

“While extra funding has been allocated to the additional restrictions grants scheme, this will not go far enough to support a sector that has endured 21 months of restrictions. What’s more, travel businesses will have to compete with companies in other industry sectors to get some of this cash.”

Abta is calling for, among other things, the extension of rates relief for all travel businesses in the financial year 2022-23, help for businesses which have to repay loans at the time of no income, and tailored winter resilience grants for the travel sector.

Abta also is urging ministers to “urgently consider the case for furlough and other income support, especially if travel restrictions are going to be maintained for any significant period.”

Meanwhile, Clive Wratten, chief executive of the Business Travel Association, said:

It’s imperative that the arts, hospitality and leisure are given help through the latest wave of the pandemic. However, a vital part of the UK economy and the driver behind global Britain is being left in the cold.

We urgently need the Treasury to correct this oversight and support our industry into 2022. This is the only way for there to be a safe return to international travel when conditions allow.

Reactions are rolling in to the chancellor’s announcement of £1bn funding for hospitality firms, and while the support is broadly welcomed, it’s clear that plenty of businesses are feeling like this pre-Christmas offer is too small and too limited.

The British Beer and Pub Association said this assistance is a “vital lifeline for many”.

Emma McClarkin, the BBPA’s chief executive, said:

“It will be absolutely essential that the government continues to monitor and support our sector for the long-term as we ride out the pandemic and into recovery. Ensuring our pubs and brewers continue to have the support they need, including further financial support if further restrictions are introduced, along with a clear timeline for the lifting any such measures. Our overwhelming hope is to remain trading and serving our customers and communities.”

Business group the Institute of Directors called this a “welcome relief to many businesses.”

Roger Barker, director of policy at the Institute of Directors, said:

These measures will go some way to protect and compensate those most adversely affected.

However, with the unwinding of a number of remaining support schemes at the end of Q1 2022, such as the VAT reduction for hospitality and business rates support, businesses also need the reassurance that these measures will now last for longer into 2022.

Yet many businesses in the hospitality sector had been calling for much more sweeping assistance, including support with paying business rates.

Trade body, the Night Time Industries Association (NTIA), has been sounding the alarm for a couple of weeks over the steep decline in trade. They are also fearful of the potential for further restrictions, which could see nightclubs closed entirely just before the crucial New Year’s Eve party (nightclubs in Wales have already been informed they have to close from 27th Dec).

Michael Kill, chief executive of the NTIA said:

“At this critical point, we need strong leadership and a clear pathway from government with a long term strategy for new Covid variants. The open/close strategy is crucifying businesses.”

“Every pound of help is much needed. But this package is far too little and borders on the insulting.”

Sacha Lord, the night time economy adviser for Greater Manchester, did not mince his words.

The Welsh Government has announced new fines for employers - and workers - if they ignore new working from home rules.

Workers in Wales could now face a fine if they continue to go into the office when they are able to work from home. It became a legal requirement in Wales to work from home yesterday, unless there is a “reasonable excuse” not to. The Welsh Government has also called on employers to make it possible for their staff to work from home.

Someone could be fined £60 for going to work instead of working from home.

Meanwhile employers could have to pay a penalty of £1,000 (rising to a possible £10,000 for repeated failure to comply ) for failing to allow their workforce to work from home.

A Welsh Government spokesperson said:

Additional measures have been introduced to limit the spread of the virus and protect public health.

Further to our long-standing advice for people to work from home wherever possible, from Monday this will now be a legal requirement to work from home unless there is a reasonable excuse not to. We expect employers to take all reasonable steps to facilitate home working and provide employees with the support they need.

The move came alongside a range of other measures being introduced in Wales to try to stop the spread of the Omicron variant.

Indoor and outdoor sporting events will be played behind closed doors from Boxing Day onwards.

Wales’ economy minister Vaughan Gething announced the changes.

Sporting events over the Christmas period are one of the big highlights of the year. Unfortunately, the new Omicron variant is a significant development in the pandemic and could cause a large number of infections.

He added: “Crowds will come back as soon as possible. We want everyone to be here to enjoy their favourite sports.”

Gething also announced £3m spectator sports fund which will be made available to affected clubs and sporting venue.

In addition, nightclubs in the nation are to be closed from 27th December.

Oil prices are also holding steady this morning following the previous day’s falls.

Taking a look at what’s going on with oil prices, they’ve somewhat shaken off Monday’s steep decline, and are trading slightly higher this morning, mirroring Tuesday’s muted European stock market rises. This comes despite investors’ concerns about the spread of Omicron and what it will mean for the global recovery, and of course demand for oil.

Brent crude was trading 0.7% higher at $72.08 at 1030 GMT, while US West Texas Intermediate (WTI) crude was just over 1% higher at $69.35.

ICYMI - some large UK retailers are selling off Christmas trees for bargain basement prices, after consumers stayed away from shops over fears of the Omicron variant during a key trading weekend.

My colleague Sarah Butler writes:

Major retailers are having to offload Christmas trees for £1 or less after shoppers shied away from UK high streets and retail centres in the last weekend before Christmas.

B&Q has cut the price of its fresh trees – some costing £49 or more – to £1 or less at stores around the country. One shopper posted a picture on social media of trees priced as little as 10p in Abingdon, Oxfordshire.

Homebase, which had already cut the price of all its fresh trees to £10 about a week ago, slashed prices to £5, while in some stores they were only £3.50.

Industry insiders said some of the major chains appeared to have overbought trees in reaction to last year when many sold out about two weeks early.

The Garden Centre Association said its members had mainly been cautious and so had mostly almost sold out. Iain Wylie, the chief executive, said Christmas trade in some areas had been affected by concerns about the spread of the Omicron variant of Covid-19 and anyone with too many trees would need to discount heavily now to clear them.

“You can’t just leave them – they are not worth a penny after Christmas,” he said.

Read the rest of Sarah’s story here:

The UK government borrowed £17.4bn in November, outstripping economists’ predictions and suggesting debt could far overshoot officials’ forecasts if the Omicron coronavirus variant slows the economy as expected.

It was the highest November borrowing since comparable records began 30 years ago, barring last year. Last year during the furlough scheme the Treasury under Rishi Sunak set successive peacetime records for monthly borrowing as it covered the costs of 80% of salaries for millions of people as well as support schemes for businesses.

Significant borrowing has continued in 2021, with £136bn borrowed between April and November, according to data published on Tuesday by the Office for National Statistics. That was the second highest since records began in 1993.

Sunak and the Treasury are thought to have pushed back against proposals for more coronavirus restrictions partly because of the cost to the government of reintroducing financial support for businesses that would be forced to close, and officials have previously briefed about the costs of regular booster jabs. Yet businesses have argued that they are suffering from a quasi-lockdown anyway, with customers deserting crowded spaces in order to avoid catching coronavirus before Christmas.

Read the rest of Jasper’s story here:

A check in on how the European stock markets are faring this morning.

As expected, shares across the region are on the rise - albeit in a moderate way - following yesterday’s falls.
This comes after Asian shares gained on Tuesday. Investors are trying to assess how the spread of the Omicron variant will hit the global economic recovery

At 0900 GMT:

The UK’s FTSE100 - 1% up
Germany’s DAX - 0.7% up
France’s CAC40 - 0.7% up
Pan-European STOXX 600 - 0.9% up

Among the gainers in London on the FTSE are miner Rio Tinto (leading the risers), clothing and footwear brand JD Sports, and housebuilders Persimmon, Barratt Developments and Taylor Wimpey.