Ryanair doubles annual loss forecast over Omicron; gas prices near record – as it happened

Rolling coverage of the latest economic and financial news

• Latest: Ryanair predicts higher loss and cuts January capacity
• European gas prices hit record highs on Tuesday as flows on key pipeline move towards Russia
• Investec: UK energy bills could hit 2,000 next year when cap lifted
• Sunak accused of not doing enough to help Omicron-hit businesses
• Yesterday: Mixed reactions to chancellor's 1bn bailout for hospitality - as it happened
• UK economy grew slower than expected in Q3...

The news that the UK economy grew slower than thought in the July-September quarter (1.1%, not the 1.3% first reported) has disappointed economists and investors.

Bethany Beckett, UK economist at Capital Economics, told clients:

Today's release indicates the economy had a bit less momentum in Q3 than we had previously thought. And, with early signs the Omicron variant has hit activity, growth is sure to have slowed further in Q4.

The expenditure breakdown for the third quarter revealed a stronger contribution from consumer spending, but a greater drag from de-stocking, caused by supply chain disruption.

The savings ratio fell from 10.7% in Q2 to 8.6% in the third quarter. Although this was still some way above the 2010-2019 average of 7.3%, it was the lowest figure reported since the pandemic began and suggested that consumer behaviour was increasingly normalising prior to the emergence of Omicron.

It's not a huge gap but the fact there was still a gap before this latest hit will give policy makers pause. Other countries including many of our European neighbours have recovered faster.

Trade is an issue and there will be many wondering exactly what part Brexit has played and whether the current volatility is an understandable blip or a worrying sign of things to come."