BUSINESS LIFE: GDP shrinks 0.1%; Oil prices are rising; Retail sales are rising

Thomas Pugh, economist at RSM UK:

'The sharp rise in retail sales in November should help allay fears that the economy contracted again in the fourth quarter, following a 0.1% contraction in the third quarter.

'The fact that retail sales were strong across the board is consistent with many surveys, including the RSMUK MMBI Q4 results, suggesting the economy continued to show some growth in the final quarter of the year. Indeed, there are good reasons to expect consumer spending to rise in the fourth quarter and next year. The sharp fall in inflation in November means that real wages are rising now and should rise sharply in the coming year, as inflation falls faster than wage growth.

'Moreover, consumer confidence has almost fully recovered from the sharp decline in October, although it is still below pre-crisis levels. That will encourage consumers to spend more instead of saving.

'For a large proportion of households, however, any increase in income will only be eaten up by higher mortgage and rental costs, reducing their disposable income. Therefore, while we expect consumer spending and retail sales to increase gradually, we do not expect a boom in consumer spending.”

Shares of Britain's biggest North Sea oil and gas producer soared after a deal worth almost £9 billion put the country on course to become a major global player.

On a peak day for investors ahead of the Christmas holidays, Harbor Energy rose 21.1 per cent, or 51.5p, to 295.5p after agreeing to buy Wintershall Dea's non-Russian assets for £8.8bn .

Two of the world's largest film and TV studios, Warner Brothers and Paramount, are in talks to merge and take on rivals like Netflix and Disney.

According to reports, Warner chief David Zaslav met with Paramount CEO Bob Bakish in New York this week to discuss a partnership.

Although the discussions are thought to have been merely an expression of interest, a merger would create a media titan worth almost £30 billion.

Oil prices rose as much as 1 percent today as tensions persist in the Middle East following Houthi attacks on ships in the Red Sea, although Angola's decision to leave OPEC raised questions about the group's effectiveness in supporting prices.

Brent crude futures rose to $80.09 per barrel at 7am GMT, while US West Texas Intermediate crude futures rose 0.9 percent to $74.55 per barrel.

Both contracts rose for a second week, each by more than 4 percent, as shipping prices increased.

A major investor in payments app Revolut has admitted to being 'impatient' in its protracted attempt to obtain a UK banking licence.

The fintech company insisted in March that it would be licensed soon, but 297 days later it is still waiting.

The ONS also reported that retail sales in Britain rose 1.3 percent in November compared to the previous month, beating economists' forecasts of 0.4 percent growth.

Retail sales were up 0.1 percent from November 2022, easily exceeding expectations of a 1.3 percent slump.

Excluding gasoline sales, sales volumes increased by 1.3 percent this month and amounted to 0.3 percent

higher compared to November 2022.

The UK economy shrank 0.1 percent in the third quarter, revised down from previous estimates of flat growth for the period, new data from the Office for National Statistics showed.