3.20pm BST
Closing summary Inflation surged to 3.5% last month while the government deficit was a worse-than-forecast £24.5bn, in a double dose of bad news for John Healey before next week’s budget.
The Office for National Statistics said annual inflation rose from 3.1% in August , overshooting City forecasts of a rise in the consumer prices index (CPI) to 3.4%, as a result of the surging cost of fuel.
Oil and gas prices have soared since the end of February, when the US and Israel launched their war on Iran , throttling the flow of fuel through the strait of Hormuz.
Rising inflation has also contributed to higher government borrowing costs – the key factor behind the deterioration in the public finances since the spring statement in March.
Related: Double blow to Healey as inflation rises to 3.5% and monthly deficit hits £24bn
While the Jackdaw gasfield in the North Sea was approved by the UK government today, Miatta Fahnbulleh is leaning towards rejecting the giant Rosebank oilfield, the Guardian understands, in what would be a blow for the North Sea energy industry and a major victory for climate campaigners.
Officials say the energy secretary is minded to refuse approval for the field, which would be one of the biggest in the North Sea. Fahnbulleh approved the smaller Jackdaw gasfield on Wednesday, prompting protests from some in the green movement.
But she told the Guardian that the rationale behind Jackdaw did not apply to Rosebank, saying the UK would rely on gas as it made the transition to net zero and that it would be better to take it from relatively low-carbon sources in the North Sea than importing it.
One is a gasfield that caters for the domestic market, while the other is an oilfield that is mainly for export. It is right that we judge each application in its own right, and it is absolutely critical that the decision is consistent with our climate obligations, our carbon budgets and the end destination we need to get to with the energy transition.
Related: Energy secretary leaning towards rejecting Rosebank oilfield
France’s borrowing costs have climbed above 5% for the first time in 24 years as political concerns and the government’s failure to agree a much-delayed budget spook the financial markets.
With some civic buildings still smouldering from recent riots, a fresh bout of selling pushed up the yield – or interest rate – on bonds issued by the second largest economy in the eurozone.
The yield on the benchmark 10-year bond – known as obligation assimilable du Trésor ( Oat ) , issued by the French Treasury – rose more than 8 basis points to 5% in morning trading, before easing to 4.99%.
The French government has yet to pass its budget for next year, while the country has been rocked by increasingly violent street protests in recent weeks.
Related: French borrowing costs hit 24-year high as civil unrest and budget fears spook markets
Thank you for reading. We’ll be back tomorrow. Take care! – JK
2.56pm BST
Ambani's Jio IPO oversubscribed within hours in record Indian sale Jio Platforms , the Mumbai-based telecoms company backed by Meta Platforms and Google , has seen huge demand for its shares as it launched its $3.2bn initial public offering (IPO), the biggest-ever in India.
India’s second-richest man, Mukesh Ambani , launched the IPO despite a stock market downturn. It drew bids for more than double the shares available and was oversubscribed in less than two hours, according to Reuters.
The IPO values Jio at up to $108.3bn, and is expected to turn it into one of India’s biggest companies by market value when the shares start trading next Wednesday. Around a third of the shares were reserved for retail investors, and the company encouraged is 400,000 staff to buy shares at a discount.
Set up a decade ago as a subsidiary of Ambani’s conglomerate Reliance Industries , and led by Akash Ambani , the oldest son of patriarch Mukesh, Jio offers low-cost broadband to millions of Indians. It has grown into India’s biggest telecoms company with more than 500 million subscribers.
Related: Billionaire Mukesh Ambani launches India’s biggest-ever IPO
2.43pm BST
GSK's chronic hepatitis B drug approved in US; experts talk of 'new era' Also on the medical front, GSK , the UK’s second-biggest pharmaceutical company, said its drug Hibsago, or bepirovirsen, has been approved in the US for the treatment of chronic hepatitis B (CHB).
It offers “functional cure” after just six months treatment, leading experts to talk of a “new era in treating people living with CHB”.
Data from late-stage clinical trials showed unprecedented rates of functional cure compared to the current standard of care. GSK expets the drug to generate annual sales of more than £2bn at its peak.
CHB affects about 1.7 million people in the US. The US regulator FDA gave the medication the green light after a priority review and breakthrough therapy designation, which speeded up the process.
Functional cure occurs when HBV DNA and viral protein - HBsAg - are undetectable for at least 24 weeks after stopping all treatment, indicating the disease is controlled by the immune system without medication, GSK said.
It’s a six-month treatment and can be injected by patients themselves after the first dose.
The medication has been submitted for regulatory approval in the UK and the rest of Europe.
Tony Wood , chief scientific officer at GSK, said:
Despite current therapies, many people living with chronic hepatitis B remain on treatment indefinitely and continue to face the risk of serious liver complications. For the first time, with Hibsago , US patients have the potential to achieve functional cure after a six-month treatment course, with the added convenience of the option of self-administration after the first dose.
Hepatitis B is a viral infection that can cause both acute and chronic liver disease. Chronic hepatitis B occurs when the immune system is unable to clear the virus, resulting in long-lasting infection that affects more than 240 million people worldwide.
The disease leads t 1.1 million deaths each year and is the main cause of liver cancer cases globally. At the moment, many patients often require lifelong antiviral therapy for viral suppression.
Dr. Norah Terrault , chief of gastroenterology & hepatology, at the USC Keck Medical Centre in Los Angeles, said:
This is the start of a new era in treating people living with CHB. Bepirovirsen offers patients the potential to achieve functional cure after a short period of treatment, a long-standing goal for patients and physicians alike.
Updated at 3.23pm BST
2.24pm BST
GSK executive appointed CEO of Australian biotech CSL On the corporate front, GSK executive Deborah Waterhouse has been appointed chief executive of the struggling Australian biotechnology company CSL .
Waterhouse, currently the chief executive of UK drugmaker GSK’s HIV drugs venture ViiV Healthcare , will be the first woman to lead Melbourne-based CSL since it was set up more than three decades ago. She will replace interim CEO Gordon Naylor and be based in Britain.
Her appointment follows a months-long search after the abrupt departure of former boss Paul McKenzie in February, who had come under pressure from investors over CSL’s falling share price.
Once Australia’s most valuable listed company, CSL has had a series of profit and revenue downgrades and announced plans to slash 3,000 jobs.
Investor sentiment has improved after CSL forecast growth for fiscal 2027, with its shares more than doubling from a decade low reached in June.
The company’s chair Brian McNamee said Waterhouse had the experience needed to build on the company’s recent improvement.
In February this year we said CSL’s next chief executive would need the ability to continue the momentum of our commercial performance, renew our pipeline and simplify our operations without losing the science and purpose that built this great company.
Deborah has done all those things on multiple occasions.
As well as running ViiV Healthcare, Waterhouse serves as president of GSK Global Health. She previously ran its US vaccines and primary care businesses and held several other senior roles at the British drugmaker, including general manager for Australia and New Zealand from 2008 to 2012.
Analysts at the investment bank Citi said her tenure at ViiV showed an ability to run a global business in a highly competitive market.
Ms. Waterhouse has been thorough and consistent, and demonstrated sound commercial acumen.
I interviewed her in 2022:
Related: Deborah Waterhouse: ‘The HIV stigma remains, and this is a battle we’ve got to fight’
CSL reported a net loss after tax of $2.6 for the most recent year, its first annual loss since listing on the Australian stock exchange in 1994, driven by $7.1bn in write-offs mostly due to its 2022 acquisition of the Swiss drugmaker Vifor .
CSL shares closed 0.1% lower at A$196.08 on Wednesday, while the broader stock market rose 0.2%.
Updated at 2.24pm BST
2.06pm BST
With inflation across the UK heading higher again (to 3.5% in September) and just two paydays remaining before Christmas, many consumers are already thinking about how to balance festive spending with everyday costs.
Dave Jones , head of UK consumer at PayPal UK, said:
With only two paydays left before Christmas, many households will be starting to think carefully about how they manage their money in the weeks ahead. While people understandably want to make the festive season special, it’s also a period when spending can add up. With the Consumer Price Index rising by again this month, consumers are looking at how to best manage their budget.
Planning ahead can make a real difference; we know nine in ten Brits are taking steps to control holiday costs. By thinking about Christmas purchases early, setting a realistic budget and spreading costs over the coming weeks, consumers can help avoid a financial squeeze later in the year.
We’re seeing shoppers increasingly look for flexibility and control at checkout, particularly for larger planned purchases. Consumers want payment options that fit their budget and help them manage spending in a way that works for them. Over half of Brits say that knowing how a payment will be split in advance matters.
For those making bigger seasonal purchases, responsible lending options can offer additional flexibility when used appropriately. Solutions such as PayPal Pay in 3 allow eligible customers to spread the cost of purchases over time with no interest or late fees, helping them manage cash flow while staying in control of their finances. One in three Brits have used, or are planning to use Buy Now, Pay Later this festive season.
Ultimately, the run-up to Christmas is less about spending more and more about planning ahead. Taking a considered approach to budgeting, prioritising essential costs and choosing payment options that suit individual circumstances can help consumers enjoy the festive season with greater confidence and peace of mind.
1.32pm BST
Roger Lee , head of equity strategy at investment bank Cavendish , said the higher UK borrowing figures, with total debt exceeding £3tn in September for the first time, will “intensify scrutiny of the government’s deficit reduction plans”.
The combination of stronger-than-expected inflation, a resilient labour market, and firmer wage growth has materially increased the likelihood of an ‘insurance’ rate rise in November, especially given that the oil price remains elevated above $110/bbl. and there is no obvious reason why it will fall in the near future.
Higher interest rates, alongside rising government debt, will further complicate the UK’s fiscal outlook ahead of next week’s Budget.
12.47pm BST
Italy: Two airports run out of jet fuel, food and medicine shortages in the south As far as protests go, Lorenzo Tondo in Palermo has sent us this report.