Stocks bounce as UK awaits signs of border reopening with France – as it happened

Rolling coverage of the latest business and markets news, as borders continue to shut in response to the UK's new Covid strain

• Johnson appeals to French president but freight Covid ban remains
• New Covid strain means short-term prospects for UK economy are bleak
• See all our coronavirus coverage

3.03pm GMT

Investors started the session fretting over the fallout of the new Covid strain, which has prompted more than 40 countries to shut their borders to Britain, and raised concerns about how quickly supply chains will come under threat.

But after an initial dip, the FTSE 100 followed European indexes higher as investors took advantage of cheaper stocks following Monday's market turmoil. Later, the EU Commission also recommended lifting the blanket bans on UK arrivals, saying it poses risks to essential travel and supply chain.

2.46pm GMT

Apple shares are up more than 2.8% amid reports that the consumer tech giant is planning to move into self driving car and battery production.

The iPhone maker's automotive efforts, known as Project Titan, have proceeded unevenly since 2014 when it first started to design its own vehicle from scratch. At one point, Apple scaled back the effort to focus on software and reassessed its goals. Doug Field, an Apple veteran who had worked at Tesla, returned to oversee the project in 2018 and laid off 190 people from the team in 2019.

Since then, Apple has progressed enough that it now aims to build a vehicle for consumers, two people familiar with the effort said, asking not to be named because Apple's plans are not public.

Related: Apple plans self-driving car 'in 2024 with next-level battery technology'

2.31pm GMT

Wall Street is open for trading and US stocks are mixed:

U.S. markets open very slightly higher https://t.co/GSLeH3CTr5 pic.twitter.com/NwugliVEzh

2.11pm GMT

Catching up on US data, the American economy grew at a record pace in the third quarter at 33.4%

That was revised higher from the first reading of 33.1%, and followed the 31.4% contraction in Q2.

1.50pm GMT

The EU Commission has recommended lifting the blanket bans on UK arrivals, saying it poses risks to essential travel and supply chain.

Cargo flows need to continue uninterrupted, in accordance with the Green Lanes and the Air Cargo Communication, not least to ensure the timely distribution of COVID-19 vaccines, for example.

Our Recommendation to ensure EU coordinated approach to travel restrictions:

Non-essential travel discouraged, but transit should be facilitated.
Flight and train bans should stop: need to avoid supply chain disruptions.

More here: https://t.co/PKuvnd9kQQ pic.twitter.com/I7cPslhlWc

1.15pm GMT

BREAKING: Ireland is heading into a fresh lockdown on Christmas Eve, Reuters is reporting.

Fresh restrictions will apply from 24 December until 12 January. However, non-essential shops will be allowed to stay open, as will schools and childcare services. However, restaurants and bars are to shut from 3pm on 24 December.

1.03pm GMT

Industry body Scotland Food and Drink is warning over an irrecoverable loss of income for food exporters whose products are being held up at UK border crossings.

They've said it could be an a fatal blow" for some small businesses.

STATEMENT, UK/France freight blockage, Tues, 11.30am.
- The situation is worse and deteriorating for food exporters.
- Protocol for freight movements needed today, but already too late for most Christmas orders. pic.twitter.com/DV6IEeEKQB

12.18pm GMT

The Bank of England's chief economist, Andy Haldane, has said the policy support that prevented UK unemployment from rising as high as 5 million during this year's pandemic should be removed only once the risk to jobs has been reduced.

In an interview with the Guardian before the introduction of new tier 4 curbs for London and much of south-east England, Haldane said he was hopeful of a rapid bounce-back in activity thanks to the vaccine but it was not the time to remove the insurance policy" that had so far spared Britain from a return to the mass joblessness of the 1980s.

Policy has been tremendously important. A huge amount of insurance has been provided by the government and the Bank of England - supporting people's jobs, supporting incomes, supporting businesses and supporting borrowing costs.

Without that insurance the outcome for jobs, incomes and the economy would have been massively, massively worse.

Related: UK jobs support should end only when Covid crisis is over - Haldane

12.12pm GMT

European stocks have cooled slightly since their surge this morning.

A solution is being worked on and will be announced during the course of the day.

The 48-hour suspension was always an emergency measure, to allow us to find practical solutions and to consult with our EU partners.

Related: Covid: France expects to reopen border as UK plans to test lorry drivers

11.59am GMT

Rose, one of Europe's biggest online retailers of bicycles and bike parts, has announced it is pulling out of the UK market due to Brexit, and will not process any further orders after 20 December.

The bike site popular with UK bike riders now has a pop-up warning UK buyers of the change in policy.

Due to Brexit and the withdrawal from the EU domestic market without a Free Trade Agreement from the 01.01.2021, we can no longer fulfill any orders from the UK.

Already ordered goods, that can be shipped until 20.12.2020 will be sent out.

11.30am GMT

Sounds like the Post Offices wants to avoid adding extra mailbags to stranded freight at the Dover crossing.

The Times' financial editor says Post Offices are trying to stop mail to France at the source:

Eh? Local Post Office is refusing to sell stamps for letters to France. Says it's a directive from head office

11.25am GMT

Turning back to the UK GDP figures release earlier this morning, our economics editor Larry Elliot says the economic rebound came at a price:

Never in history has the UK economy grown more quickly than it did in the third quarter of 2020. Official figures show that the spending spree of the summer was even stronger than previously expected, resulting in a 16% increase in national output.

Related: UK economic rebound came at a price - and there's more to pay

10.41am GMT

A bit more insight on the market bounce from David Madden, market analyst at CMC Markets UK:

Stock markets have rebounded from the brutal declines that were witnessed yesterday.

Fears in relation to the new strain of the coronavirus have faded a little and so have some of the concerns that the UK could suffer a prolonged period of isolation.

10.21am GMT

The EU's chief negotiator Michel Barnier is set to update EU member states on the latest in Brexit talks at 3pm today, according to Reuters

(No clarification about whether that's GMT or otherwise, but we'll keep you posted)

10.12am GMT

Bloomberg () is saying that the EU has rejected a proposal that would see the EU reduce the value of fish it catches in UK waters by 30%.

The UK was originally calling for a 60% cut last week.

BREAKING: The EU rejects the U.K.'s latest concessions on fishing, officials say, in a setback to efforts to secure a post-Brexit trade deal https://t.co/uZHkfAVEp4 pic.twitter.com/aYQC1Od4Nm

10.09am GMT

Twitter speculation suggests the sterling sell-off is linked to reports that UK's Brexit offer has been rejected by the EU, raising fears that a deal may not be reached.

Sterling slumps again on apparent confirmation that UK's latest Brexit offer on fish has been rejected - Bbg#GBPUSD 1.33797 -0.63%#EURGBP 0.91242 +0.31%

10.06am GMT

The pound has been on a roller coaster ride of its own this morning, and has been dropping quickly in the past couple of minutes alone.

Against the US dollar, the pound is now down more than 0.6% at 1.3378 and down 0.3% versus the euro at 1.0954.

9.35am GMT

While some investors might be comforted by the fact that stocks are recovering, Russ Mould, investment director at AJ Bell, ways January could deliver further pain for equities.

After yesterday's carnage on the markets with approximately 2% declines seen across Europe, investors are in a better mood as we draw closer to Christmas," says

Yesterday's declines were driven by investors getting a cold shower from Covid-related setbacks. Optimism had been running high and so the sudden escalation of the new virus variant and subsequent movement and business trading restrictions caught investors off guard.

The Covid crisis and Brexit uncertainty look set to hang over equities for the rest of the calendar year and January could be a difficult period unless there is progress in getting the virus under control and clarity on when more people will get vaccinated.

9.20am GMT

While investors are hopeful that Covid border restrictions will blow over, some companies are unwilling to take any chances.

Related: Toyota to close UK and French plants early due to Covid border chaos

9.16am GMT

US futures are also edging into positive territory amid the European relief rally.

S&P 500 futures are marginally higher, up 0.05%. Nasdaq futures are the standout, of course, up 0.2% as investors bet that tech stocks will remain immune to new Covid pressures.

9.05am GMT

Some of yesterday's biggest fallers on the FTSE 100 are now topping the index, pointing to a relief rally and investors taking advantage of cheaper prices.

They include UK banks like Lloyds, NatWest and Barclays - which suffered on Monday amid fears that their customers might struggle amid a prolonged recovery and supply chain disruption.

8.41am GMT

The FTSE 100 has reversed its losses and is now trading higher by 0.2% at 6,430 points.

The FTSE 250 is up more than 1%.

8.27am GMT

Investors seem to be finding some encouragement from CNN reports that Pfizer and Moderna are testing their vaccines against the new Covid strain discovered in the UK.

Based on the data to date, we expect that the Moderna vaccine-induced immunity would be protective against the variants recently described in the UK.

We will be performing additional tests in the coming weeks to confirm this expectation.

8.18am GMT

The UK government's efforts to get the economy moving during the summer months, with moves including the eat out to help out subsidy in restaurants and cafes, had a greater effect than first thought.

However the public finances appear to have taken a bigger hit as a result, with the government's borrowing soaring to a 50-year high.

As part of our Plan for Jobs we've invested 280bn to protect millions of jobs and businesses across the UK.

This is the right thing to do to protect lives and livelihoods during this acute phase of the crisis. When our economy recovers, it's right that we take the necessary steps to put the public finances on a more sustainable footing so we are able to respond to future crises in the way we have done this year.

8.11am GMT

Britain's economy staged a faster recovery in the third quarter of the year than was first estimated, following a rapid return to work after the first lockdown, Phillip Inman writes.

The Office for National Statistics said national income, or GDP, increased by a record 16% in the three months to the end of September rather than the 15.5% in its first estimate. This leaves the economy 8.6% smaller than the year before, rather than the 9.7% estimated initially.

At least the drop in the saving rate left it far above its long-run average of 8.0%. That implies there is plenty of scope for household spending, and GDP, to rebound strongly once the restrictions are lifted.

8.07am GMT

Investors seem to be snapping up Britain's domestic stocks that were made cheaper following a 2.1% slump on Monday.

The FTSE 250 is up 0.4% at 19,773 points

8.03am GMT

UK stocks are the odd ones out, falling further into the red while European stocks rise at the open.

Here is a snapshot of the initial prints:

7.58am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

UK stocks are set to come under pressure this morning as the government deals with the fallout of the new Covid strain, which has prompted more than 40 countries to shut their borders to Britain, and raised concerns about how quickly supply chains will come under threat.

European Opening Calls:#FTSE 6380 -0.56%#DAX 13264 +0.14%#CAC 5403 +0.18%#AEX 610 +0.10%#MIB 21448 +0.18%#IBEX 7803 +0.17%#OMX 1848 +0.17%#STOXX 3457 +0.24%#IGOpeningCall