BUSINESS LIVE: GDP shrinks 0.1%; Oil prices rise; Retail sales volumes jump

Ask the average founder or chief executive what gets them out of bed, and most mumble a mistruth about making a difference, while quietly pocketing a seven-figure salary.

Not Charlie Mullins. ‘Money motivates me,’ declares the spiky-haired entrepreneur who sold Pimlico Plumbers to US home services giant Neighborly in 2021 for £140million.

Victoria Scholar, head of investment at Interactive Investor:

‘UK retail sales rose by 1.3% month-on-month in November, outpacing analysts’ expectations for a rise of 0.4%. However over the three months to November, sales dropped by 0.8% versus the previous three months.

‘The Black Friday, Cyber Monday shopping weekend provided a much-needed boost to the languishing retail sector, particularly household goods retailers, clothes shops and department stores. Supermarkets also benefitted with shoppers stocking up on specialist food and drinks for the festive season.

‘Consumers, who are particularly price sensitive amid the cost-of-living crisis have been capitalising on these discount opportunities, carrying out their Christmas shopping in November, earlier than normal. While there was a notable pick up in spending in November versus October, the broader trend continues to point to a slowdown in retail spending with January likely to be even more difficult for the sector, which is having to rely more and more on discounts and promotions, which eat into margins.’

Stanley Gibbons looks set to fall into administration as part of a plan to secure the future of the 167-year-old rare stamp dealer.

The firm, which one of the most prominent names in the stamp and coin collecting world, will appoint administrators at PricewaterhouseCooper as soon as today.

Deciding on where to put your money at the moment isn’t easy.

Thomas Pugh, economist at RSM UK:

‘The sharp rise in retail sales volumes in November should help to allay fears that the economy contracted again in Q4 after shrinking by 0.1% in Q3.

‘The fact that retail sales were strong across the board chimes with many surveys, including the RSMUK MMBI Q4 results, which suggests that the economy continued to eke out some growth in the final quarter of the year. Indeed, there are good reasons to expect consumer spending to rise in Q4 and through next year. The sharp fall in inflation in November means real wages are now rising and should increase sharply over the next year as inflation drops more steeply than wage growth.

‘What’s more, consumer confidence has almost completely recovered from its sharp drop in October, although it is still below its pre-crisis level. That will prompt consumers to spend more rather than save.

‘However, for a large portion of households any increase in incomes will just be eaten up by higher mortgage and rent costs, reducing their disposable income. As a result, while we do expect consumer spending and retail sales volumes to gradually rise, we aren’t expecting a boom in consumer spending.’

Shares in Britain’s biggest North Sea oil and gas producer soared after a near-£9billion deal put it on course to become a major global player.

On a bumper day for investors ahead of the Christmas break, Harbour Energy jumped 21.1 per cent, or 51.5p, to 295.5p after it agreed to buy Wintershall Dea’s non-Russian assets for £8.8billion.

Two of the world’s biggest film and TV studios, Warner Brothers and Paramount, are in talks to merge to take on rivals such as Netflix and Disney.

David Zaslav, the head of Warner, met Paramount chief executive Bob Bakish in New York this week to discuss a tie-up, according to reports.

While the discussions are thought to only have been an expression of interest, a merger would create a media titan worth nearly £30billion.

Oil prices are up as much as 1 per cent 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 over the group’s effectiveness in supporting prices.

Brent crude futures were up to $80.09 a barrel by 7am GMT, while US West Texas Intermediate crude futures were up 0.9 per cent to $74.55 a barrel.

Both of the contracts have risen for a second week, each up over 4 per cent, as the shipping concerns buoyed prices.

A major investor in payments app Revolut has admitted being ‘impatient’ at its prolonged attempt to gain a UK banking licence.

The fintech firm insisted in March it would be granted a licence imminently – but 297 days later it is still waiting.

The ONS also reported that UK retail sales volumes rose by 1.3 per cent in November compared with the month before, beating economist forecasts of 0.4 per cent growth.

Retail sales were 0.1 per cent higher than in November 2022, far exceeding forecasts of a 1.3 per cent slump.

Excluding sales of petrol, sales volumes rose 1.3 per cent on the month and were 0.3 per cent

higher compared with November 2022.

The UK economy shrank by 0.1 per cent in the third quarter, revised down from previous estimates of flat growth for the period, fresh data from the Office for National Statistics shows.