Pound falls after May's Brexit blow in Brussels - as it happened

The pound is down against the dollar and the euro after Theresa May failed to make progress during her Brexit trip to Brussels

• EU leaders reject May's idea to salvage her Brexit deal
• European markets suffer heavy losses after weak China data
• New EU car sales; 'gilet jaunes' protests weigh on growth
• The bumper business Christmas quiz 2018

2.19pm GMT

Before closing up for the day, here are the latest scores across European markets:

2.04pm GMT

A reminder of how the pound has fared against the dollar since just before the EU referendum on 23 June 2016:

1.57pm GMT

US retail sales rose 0.2% in November, as expected. October's number was revised up, to show growth of 1.1%, versus an initial estimate of 0.8%.

Happy holidays! US retail sales from November post solid gains, led by (surprise!) nonstore retailers. I.e. E-commerce. AKA Amazon. https://t.co/s5zeFMP3xq

1.32pm GMT

The brief press conference is over and the pound is off a little more since the Prime Minister stood up.

She was in defiant mood, insisting EU leaders are committed to seeing her deal get over the line in parliament.

1.25pm GMT

Theresa May is giving a press conference in Brussels. For all the details follow our politics live blog:

Related: Brexit: Theresa May holds press conference in Brussels - Politics live

1.18pm GMT

A quick recap on the pound, which is still having a bad day:

12.39pm GMT

George Osborne, the former Tory Chancellor who was sacked by Theresa May, has landed another job. Not satisfied with eight, he's taking on a ninth role.

Related: Nine jobs George: Osborne adds new role at venture capital firm

11.38am GMT

A couple of details from the Bank of England's expenses policy..

11.15am GMT

The Bank of England has published an updated expenses policy, six months after some fairly shocking details emerged of huge expense claims.

At that time, MPs on the Treasury select committee criticised travel expenses amassed by two officials of almost 400,000, huge subsidies for the Bank's staff at its south London sports club and a Christmas party costing 100,000.

Given the staggeringly high level of expenses claimed by some members of the Bank of England's policy committees, the review of its expenses policy is welcome. The Bank must now ensure that the new rules are followed in both letter and spirit by all staff across the organisation.

The Treasury Committee will examine the Bank's expenses, as well as the review itself, in detail when we take evidence from the Court of the Bank of England in the New Year.

Related: Mark Carney defends 'staggering' Bank of England expenses bill

10.33am GMT

Feeling festive? Why not have a go at our annual business Christmas quiz?

Related: The bumper business Christmas quiz 2018

It wouldn't be Christmas without ... https://t.co/WlyKXuajEw

10.29am GMT

Jack Allen, senior European economist at Capital Economics, says that although disruption caused by the 'gilets jaunes' protests was a drag on the wider eurozone economy in December, the underlying picture is also weakening:

December's fall in the eurozone composite PMI was almost entirely driven by a sharp drop in France, perhaps suggesting that the 'gilets jaunes' protests have had a serious economic effect.

But even if France's PMI bounces back as the effects of the protests fade, the eurozone economy has clearly shifted down a gear and looks set to grow at a more moderate pace next year.

10.12am GMT

Let's take a look at how European markets are faring now. With little in the way of good news - either politically or in terms of economic data - it's a sea of red this morning:

9.52am GMT

The pound is now down 0.6% against the dollar, at $1.2583, and 0.6% against the euro at a1.1292.

Travellers heading off for a festive break are finding their sterling isn't stretching so far at some airports. As the BBC reports, people changing money at Heathrow are being offered as little as $1.05 for 1. Ouch.

A rip-off but sterling weakness is not good news for anyone having a #Christmas break in the #US ! #Sterling also getting below parity against #euro in some paces BBC News - Travellers see #pound close to #dollar parity https://t.co/gBxy0aPi3M

9.43am GMT

French private sector output contracted for the first time in two-and-a-half years in December as activity at firms was disrupted by the so-called 'gilets jaunes' protests.

Disruptions to business and travel in France arising from the 'gilets jaunes' protests added to the weaker demand environment, contributing to the first fall in French business activity for two-and- a-half years. Output fell in both manufacturing and services.

9.25am GMT

The eurozone 'flash' PMI survey for December is in and it's much weaker than expected, signalling a weak end to 2018 for the region's economy.

The headline index on the composite index - which combines activity at manufacturing and services firms - fell to 51.3 in December from 52.7 in November, where anything above 50 indicates growth.

The Eurozone economy saw a disappointing end to 2018, with growth slowing to the weakest for four years.

Companies are worried about the global economic and political climate, with trade wars and Brexit adding to increased political tensions within the euro area. The surveys also point to further signs that the struggling autos sector continued to act as a drag on the region's economy.

9.03am GMT

Data from China overnight has spooked investors in Asia and is now having a similar effect in Europe where a sell-off is underway.

Retail sales grew by 8.1% in November, compared with a year earlier, the slowest since May 2003 and missing forecasts of an 8.8% rise.

Investors are right to be worried about global growth as China's economy continues to sputter. The weaker than expected retails sales print, a more significant part of the Chinese economy than exports, was weaker than expected.

The data lend support to the market's view that things will get worse in China before they get better, this despite investment rising.

8.31am GMT

The pound is having a bad morning, after Theresa May failed to make progress on Brexit during her trip to Brussels on Thursday.

The pound is down 0.5% against the dollar at $1.2594, and down 0.3% against the euro at a1.1330. Bad news for Brits planning a festive break in the US and Europe.

Related: EU leaders reject May's idea to salvage her Brexit deal

8.10am GMT

Trading is underway in Europe and all major indices have opened lower. It follows earlier falls in Asia, with the Hang Seng down -1.7% and the Nikkei falling 2%.

Investors have been spooked by data from China this morning, which showed retail sales grew at the slowest rate in 15 years in November, prompting fears of a slowdown in the world's second largest economy.

8.00am GMT

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

November was another poor month for European car manufacturers, with sales of new cars down 8% - the third monthly fall in a row.