Full story: US president Joe Biden on Friday followed through on his pledge to block Nippon Steel’s $14.9bn bid for US Steel, citing concerns the deal could hurt national security.

“US Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers – the best in the world,” Biden said in a statement.

The move, long expected, cuts off a critical lifeline of capital for the beleaguered American icon, which has said it would have to idle key mills without the nearly $3bn in promised investment from the Japanese firm.

It also represents the final chapter in a high-profile national security review, led by the Committee on Foreign Investment in the United States (CFIUS), which vets investment for national security risks and had until 23 December to approve, extend the timeline or recommend that Biden block the deal.

The proposed tie-up has faced high-level opposition within the United States since it was announced a year ago, with both Biden and his incoming successor, Donald Trump, taking aim at it as they sought to woo union voters in the swing state of Pennsylvania, where US Steel is headquartered. Trump and Biden both asserted the company should remain American-owned.

The merger appeared to be on the fast track to be blocked after the companies received a 31 August letter from the CFIUS, seen by Reuters, arguing the deal could hurt the supply of steel needed for critical transportation, construction and agriculture projects.

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The White House has released a full statement from US president Joe Biden on the blocked US Steel deal.

He stresses that US companies handling critical US resources must continue “leading the fight on behalf of America’s national interests.”

As a committee of national security and trade experts across the executive branch determined, this acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.

So, that is why I am taking action to block this deal.

Biden adds that it is his “solemn responsibility as president” to ensure that the US has a strong domestically owned and operated steel industry that can continue to power its “national sources of strength at home and abroad” :

And it is a fulfillment of that responsibility to block foreign ownership of this vital American company. U.S. Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers – the best in the world.

Today’s action reflects my unflinching commitment to utilize all authorities available to me as president to defend US national security, including by ensuring that American companies continue to play a central role in sectors that are critical for our national security.

As I have made clear since day one: I will never hesitate to act to protect the security of this nation and its infrastructure as well as the resilience of its supply chains.

Green campaigners have taken aim at the US president-elect after Donald Trump took to his social media platform Truth Social earlier today to hit out at the UK for taxing oil companies and allowing windmills in the North Sea.

Tessa Khan, executive director at Uplift, a group which campaigns for swift but fair transition away from oil and gas production in the UK, said Trump was “clearly looking after the interests of US oil and gas firms who have made billions during the recent energy crisis” :

His team is shot through with oil and gas interests that want the rest of the world, the UK included, to slow its transition to clean energy and remain hooked on oil and gas for years to come just so they can keep profiting.

For the UK to be free from fossil fuel politics, it must take advantage of the immense opportunities at its fingertips in wind power, which offers a long-term solution to energy security and job creation, and continue to tax the energy giants who have driven millions into fuel poverty accordingly.

Khan said that the UK, and Scotland in particular could use “some of the best wind resources in the world” to help secure Britain’s energy supplies as the North Sea oil and gas basin declines:

Ill informed attacks on the UK’s efforts to become a clean energy superpower will not change reality - the nation has burnt most of its gas, and what’s left of our oil is mainly exported.

Some further background on the now-blocked deal:

The deal was meant to see Nippon Steel, Japan’s largest steelmaker, takeover US Steel, the Pittsburgh steel producer established in 1901 that played a vital role in America’s industrialisation,.

The deal, which was announced last year, faced criticism from the United Steelworkers union as well as several lawmakers, who viewed the deal as a threat to national security, job security and workers’ pensions.

Biden and the vice-president, Kamala Harris had long expressed opposition to the deal.

It was put under review by the Committee on Foreign Investments in the United States, a government panel that reviews foreign acquisitions of American companies.

In September, the Biden administration extended that review, which delayed a decision until after the presidential election.

While Biden pulled the trigger on blocking the deal, it appeared as if his successor was ready to do the same.

President-elect Donald Trump said in early December that he also opposed the proposed takeover:

I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan.

Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!

US Steel shares are currently down 7.8% at $30.03 in pre-market trading

Commenting on the Bank of England data, the Nathan Emerson, the CEO of Propertymark – a membership organisation for estate agents – says lower interest rates will be key for bolstering the mortgage market in the months ahead.

Emerson says:

The impact of higher interest rates without doubt has had a profound impact across the housing market.

Consumers need to feel a degree of confidence within their financial position to approach the buying and selling process, and it is essential that aspects such as inflation are managed robustly to keep long-term stability across the economy, which is needed for a healthy and secure housing market.

Propertymark is keen to see interest rates lowered further when conditions permit to help spur growth in 2025.

HSBC has announced a raft mortgage rate reductions, in a sign that it is trying to lure buyers racing to complete purchases before stamp duty hikes comes into force in April.

Nicolas Mendes of broker John Charcol says it will be welcome news for the housing market:

Following the festive period, this change comes at a crucial time, as many potential home movers start reengaging with plans for the year ahead and first-time buyers look to act swiftly ahead of the stamp duty changes.

The cuts span across products, and includes existing residential customers who are switching to a new contract, those looking to borrow more, as well as first-time buyers, home movers, and those seeking green mortgages for energy-efficient homes.

Mendes adds:

These reductions, covering fixed terms from 2 to 10 years and LTVs of up to 95%, reflect HSBC’s efforts to remain competitive and capturing a diverse range of customers.

Buy-to-let investors and international clients are also included, widening the appeal.

Budget airlines Ryanair and Wizz Air have reported a jump in passenger numbers in December, despite flight disruptions over the holiday period.

Ryanair carried 13.6 million passengers in December, up 8% on the same period last year. It operated 77,000 flights over the month, with a load factor - a metric used to indicate how full flights are - of 92%.

It means the Irish airline carried 197.2 million passengers for the whole of 2024, up 8% on 2023.

Wizz Air, meanwhile, carried 5.1 million passengers, up 1.9% year-on-year. Its rolling total for the year came to 62.7 million passengers, up 3.9% on the previous year.

That is despite disruption to flights over the holiday period, at several UK airports, including Stansted and Gatwick, which suffered fog-related delays and cancellations.

While November’s mortgage lending figures fell short of analyst forecasts, mortgage brokers say homebuyer demand has been strong as of late.

Charles Yuille, managing director at Willow Brook Mortgages said:

November was an average month, possibly due to the Autumn Budget taking the steam out of the market and hitting sentiment. That appears to be reflected in this data.

Mortgage rates also edged up slightly, which may have dampened demand. But demand was still there due to the approaching stamp duty deadline.

December, though, was one of the broker’s busiest months of the year:

Enquiry levels were strong among home movers and first-time buyers alike, keen to save money on stamp duty.

We expect a strong start to the year and for other lenders to follow the likes of Halifax and Leeds in cutting rates.

Lenders like Santander will be resetting their targets and Nationwide is approaching its year end so lenders will want to fill their boots with borrowers.

The next few months should be a favourable time for anyone looking to buy and we know that demand for property, whatever the economic conditions, tends to remain strong.

Laura Ashley has been acquired by New York-based Marquee Brands, the owner of 17 businesses including Ben Sherman and Martha Stewart.

The clothing and home furnishings brand, best known for its floaty floral frocks, has been sold by Gordon Brothers.

Gordon Brothers has owned Laura Ashley since 2020, when the US restructuring specialist bought the business out of administration after it became the first major retail casualty of the Covid pandemic.

The company, which has no stores of its own, made a return to the high street the following year through a deal with Next.

Laura Ashley also has deals in place with DFS and John Lewis in the UK, and is available in 150 shops globally via a network of overseas licensees.

The deal with Marquee Brands will result in Laura Ashley’s UK-based team, which is run by Poppy Marshall-Lawton, being retained and the US company opening its first European headquarters in London.

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November’s money and lending data suggests that consumer caution around borrowing and saving has failed to fade in the wake of the Labour government’s budget, according to Capital Economics.

Its analysts say this adds further downside risk to its Q4 GDP forecast of 0.0%.

Elias Hilmer, assistant economist at Capital Economics said:

The £0.9bn rise in consumer credit in November was a bit lower than October’s rise of £1.0bn and the average gain of £1.2bn over the previous six months.

This suggests households have become a bit less willing to take on more unsecured credit and it chimes with the retail sales figures which indicate households reined in their spending in Q4.

What’s more, following October’s £18.8bn surge in households’ bank deposits, deposits rose again by £0.2bn in November, suggesting that households’ caution has lasted a bit longer than we anticipated.

Overall, data released today suggests that the rise in consumer caution ahead of the Budget hasn’t gone away. This adds further downside risk to our forecast for GDP to stagnate in Q4.

Profits at the hedge fund co-founded by the GB News and Spectator owner Sir Paul Marshall plunged by almost two-thirds last year, resulting in significantly reduced payouts for its partners.

Marshall Wace, one of London’s most successful hedge funds, has declared profits of £192m in the year to the end of February 2024, a sharp fall of 64% compared with the £538m the previous year.

Marshall Wace was founded in 1997 by Marshall and Ian Wace and manages more than $71bn (£57.2bn) in funds, making it one of the largest of its kind in the world.

Last year, Marshall sealed a £100m takeover of the Spectator magazine, adding to a media empire that includes backing the often controversial GB News TV channel and the UnHerd website.

Total turnover at Marshall Wace dropped from £1.2bn in 2023 to £768m last year, according to accounts filed this week at Companies House.

The latest accounts show that management fees and other income fell from £637m to £605m.

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Andy Sumpter, retail consultant for EMEA for Sensormatic, says retailers will need to get innovative if they hope to reverse the dismal footfall trend that plagued them throughout 2024:

While December saw some flurries of festive footfall around a few key trading days, overall, the picture was filled with much less sparkle as shopper traffic remained subdued in what should have been the highlight of the Golden Quarter.

While store visits did build ahead of Christmas, it was never quite enough to reverse the shopper count deficit against last year.

As footfall limped towards the festive finish line, December’s lacklustre performance compounds a disappointing end to 2024, marking the second consecutive year of declining store traffic.

Retailers will now need to look afresh to 2025 and chart a course to adopt innovative strategies to reverse this trend or maximise the sales potential of fewer visitors, finding new ways to make each store visit count.

Full story: High streets and other shopping destinations have had a “drab December”, ending another year of falling visitor numbers and raising fears of disappointing sales in the most important month for retailers.

Attendance at UK shopping centres, retail parks and high streets was down 2.2% in December compared with the same period in 2023, according to data from the British Retail Consortium (BRC) and analysts at Sensormatic. The decrease was led by a 3.3% decline at shopping centres.

While footfall is no longer a clear guide to potential sales because of the increase in online shopping, the figures will add to anxieties about how retailers performed in the run-up to Christmas.

A swathe of industry trading statements revealing how the crucial period went starts on Tuesday with figures from the clothing and homewares chain Next, which is expected to have gained market share.

Sainsbury’s, Tesco and Marks & Spencer are also likely to have done well, but some clothing and footwear specialists are expected to have struggled, with Quiz and Shoe Zone both issuing profit warnings before Christmas.

Some food businesses, including Morrisons and Asda, are also thought to have faced difficulties amid some operational problems and heavy competition with some discounting of festive vegetables to as little as 8p a bag.

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Back to the shopping footfall, the BRC pins part of the problem on the fact that high street shops have not had the extra cash to invest in the kind of ‘experiences’ that can lure consumers.

BRC CEO Helen Dickinson says that is partly the fault of high taxes and burdensome regulations. Retailers are currently fearing a pinch from a hike in employer national insurance contributions and the minimum wage.

Dickinson says:

Shopping habits have been changing fast and customers are increasingly looking for more experiential shopping, as well as a variety of cafes, services and things to do.

Unfortunately, investment in town centres and high streets is held back by our outdated business rates system, which penalises town and city centes.

The government’s proposals to reform business rates may ease the burden for some retailers, but it is vital that, ultimately, no shop ends up paying more in rates than before.

With retailers facing £7bn in additional costs this year from increased tax and regulations, the changes to the business rates system must be made in way that supports retail investment and growth in the years ahead.

Markets have opened for trading on this chilly Friday morning and we’ve got a mixed picture across Europe:

• FTSE 100 is flat

• France’s CAC 40 is down 0.2%

• Spain’s IBEX is up 0.1%

• Germany’s Xetra DAX is flat

• Italy’s FTSE MIB is down 0.35%