Well that’s all from us today, thanks for following along.

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US consumer confidence fell in December for the first time in three months.

The fall suggests concerns about the outlook for the economy amid uncertainty around the incoming Trump administration’s policies.

The Conference Board’s gauge of confidence decreased to 104.7, led by consumers over 35 years old, data released Monday showed.

The median estimate in a Bloomberg survey of economists called for a reading of 113.2.In write-in responses to the survey, consumers increasingly cited politics and tariffs.

A special question showed that 46% of respondents expected tariffs to raise the cost of living, while 21% expected tariffs to create more US jobs.

The latest rental market insight from Zero Deposit, the tenancy deposit alternative, has shown that 73% of tenants feel an increased sense of pressure during the festive period due to the additional financial strain that comes at this time of year.

The survey of tenants, commissioned by Zero Deposit, found that: -

• 65% struggle with the cost of living once they’ve covered the cost of rent and other outgoings such as utility bills.

• Additional analysis by Zero Deposit further highlights why so many renters are struggling. Zero Deposit found that the average cost of rent in England currently stands at £1,348 per month. On average, tenants also pay out £415 per month to cover council tax, energy and water bills and other monthly costs such as broadband.

• With the average monthly net income currently standing at £2,634, this means that 67% of a tenants monthly earnings go towards the cost of their rental property.

• No surprise then, that once these costs have been accounted for, 74% of renters surveyed by Zero Deposit say they struggle to afford other outgoings such as social occasions, leisure activities and other non-essential purchases.

• Christmas can be a particularly difficult time of year as costs ramp up due to an increase in social occasions, the requirement of purchasing gifts and other increased spends such as food and drink.

• 73% of those surveyed by Zero Deposit stated that they feel an increased sense of pressure during the festive season due to their financial situation and expectations to spend more at Christmas.

• Purchasing gifts for friends and family ranked top when asked which aspects put them under the most pressure, with the expectation to spend more on food and drink, as well as a busier social calendar also ranking highly.

• So much so that 66% are planning to cut back on their usual Christmas spending habits this Christmas, with social occasions ranking as the top area where they will look to save.

The festive season has been cruel for retailers with new data from retail technology firm Sensormatic showing that footfall in UK stores last week was 11.4% lower than a year ago, This is despite a near-15% rise week-on-week.

Super Saturday appears to have disappointed too – football was only 4.1% higher than the previous week, and 0.9% up compared with the final Saturday before Christmas in 2023. That may mean hopes of a surge in spending have been dashed.

Diane Wehrle, chief executive of Rendle Intelligence and Insights, said:

Palantir Technologies (PLTR) and Anduril Industries, two of the largest US defence technology firms, are reportedly in discussions with around a dozen other high-profile competitors, including OpenAI and SpaceX, to form a consortium aimed at securing US government contracts.

This new group intends to challenge the dominance of traditional defence heavyweights such as Lockheed Martin (LMT) , Northrop Grumman (NOC), Boeing (BA), and Raytheon Technologies (^RTX), according the Financial Times.

One anonymous participant in the talks described the initiative as a bid to create “a new generation of defence contractors,” while another suggested it could be a more efficient model for delivering cutting-edge weapons and technologies to the Pentagon. The collaboration could help provide more advanced solutions for the US military, bypassing the bureaucratic and costly structures of traditional defence firms.

Read more from Yahoo Finance UK

Gold (GC=F) has had a bumper year in 2024, climbing to new highs and setting records. However, the question among investors is can it push higher in 2025?

The precious metal has broken record after record, rising more than 30% in 2024 while hitting an all-time high of $2,748.23 in October. It is currently trading around the $2,600 mark.

Gold will rally to a record next year on central-bank buying and US interest rate cuts, according to Goldman Sachs (GS), which listed the metal among its top commodity trades for 2025 and said prices could extend gains during Donald Trump’s presidency.

Goldman Sachs expects gold prices to jump to $3,000 per troy ounce, an increase of 19% from the current level, if concerns over US fiscal sustainability grow. The yellow metal acts as a good hedge against inflation and rising geopolitical tension.

“Go for gold,” analysts said in a note, reiterating a target of $3,000 an ounce by December 2025. The structural driver of the forecast is higher demand from central banks, while a cyclical lift would come from flows to exchange-traded funds as the Federal Reserve cuts, they said.

Gold prices have increased sharply over the previous 12 as investors have piled in, seeking to protect their portfolios.

In the view of Goldman Sachs’ analysts, this rally could now be set to continue, despite expectations of continued increases in the value of the dollar.

Honda (7267.T), Nissan (7201.T) and Mitsubishi (7211.T) have confirmed they are in talks over a possible three-way merger as the Japanese companies struggle with falling sales and competition from Chinese brands.

Honda and Nissan have signed a memorandum of understanding to begin talks that could lead to the largest domestic merger in Japanese automotive history, potentially creating the world’s third-largest carmaker by sales.

The two companies announced at a press conference in Tokyo on Monday that they aim to reach a definitive merger agreement by June, with the deal expected to be completed by 2026.

The memorandum of understanding also includes Mitsubishi Motors (7211.T), a smaller member of the Nissan Alliance, in the discussions about the proposed integration.

The consolidated group would rank as the world’s third-largest carmaker by vehicle sales, behind Toyota (7203.T) and Volkswagen (VOW3.DE)

Gold prices edged higher in early European trading before later declining positive momentum from the end of last week.

Ricardo Evangelista, senior ActivTrades analyst, said:

Well we're already in the afternoon, so let's have a look at what's happening in equity markets today despite news being thin on the ground.

• Insurer Direct Line (DLG.L) jumped after agreeing to be bought by rival Aviva for £3.75bn.

• The offer values each Direct Line Share at 275p, a premium of 73.3% to the closing price of 158.7p on 27 November.

• Aviva (AV.L) said it plans to achieve annual pre-tax cost savings of at least £125m through job cuts, "economies of scale and increased efficiency".

• Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Christmas has come early for Direct Line investors, as Aviva's £3.7bn buyout has officially been signed, sealed, and delivered. The terms of the deal remain unchanged from what was floated to the markets earlier this month, and the festive confirmation has wrapped up what many investors had already baked into expectations, leaving little surprise under the tree.

• "This deal strikes a balance that seems to deliver value for both parties. Direct Line has been navigating choppy waters, with its market share steadily eroding and a history of missteps from previous management leaving the ship off course. While the new management team has been working to steady the vessel, even they couldn't deny that Aviva's offer was the golden ticket they'd struggle to replicate on their own. Though they've expressed confidence in their independent strategy, this proposal was simply too compelling to pass up.

• "For Aviva, the price tag is sitting on the edge of what might be considered a bargain, but the strategic potential could prove to be a real cracker. Acquiring Direct Line cements Aviva's status as the heavyweight champion in the UK home and motor insurance markets. Beyond bolstering their market dominance, the deal unlocks opportunities to put the Direct Line transformation on the fast track, while capitalizing on the efficiency gains that come with increased scale. It's a bold move that could turn out to be a gift that keeps on giving."

In a year marked by record highs in markets and further uncertainty, here are some of the stocks that have reflected key trends and been closely monitored by investors.

Strong earnings, particularly out of the major US technology companies, have helped drive market movements this year.

The S&P 500 (^GSPC) hit the 6,000 points mark in November on the back of Donald Trump's US election win. The tech-heavy Nasdaq (^IXIC) also recently topped 20,000 for the first time.

In addition to record earnings, central banks started to cut interest rates as inflation cooled, which has further fuelled market momentum.

However, there have been elements of instability, with conflict in the Middle East and the continuation of the Russia-Ukraine war.

Read more from Yahoo Finance UK

This morning’s GDP downgrade means that the UK was the joint-slowest member of the G7 in the third quarter of the year, with no growth in July-September.

Here’s the latest estimates from other leading advanced economies in Q3 2024:

• US: grew by nearly 0.8%

• France: grew by 0.4%

• Japan: grew by 0.3%

• Canada: grew by 0.3%

• Germany: grew by 0.1%

• Italy: stagnated

GDP per head fell 0.2%, with only Canada doing worse.

Chancellor Rachel Reeves has warned that the government is facing a “huge” challenge to fix the UK economy.

Reacting to this morning’s news from the ONS that the economy failed to grow in July-September, she said:

More landlords are opting to offer bills included within their asking rent expectations.

This has been deemed as a proactive approach to boosting EPC ratings to help improve profit margins and reduce energy bills.

The analysis of current rental market listings by epIMS shows that:

• 14% of all current rental properties on the market offer the cost of bills included within the monthly asking rent.

• This number of rental properties offering bills included within the asking rent has increased by 57% in the last year alone when just 12% of all rental market listings came with the cost of bills included.

• Further research by epIMS shows that, for those landlords offering a bills included rental, improving the energy efficiency of their property could see them dramatically increase their profit margins.

• As per new government guidelines, landlords will also be required to hold a mandatory rating of C by 2030 anyway and so making improvements now helps them get ahead of this compliance requirement.

Strong winds disrupted UK travel yesterday as Heathrow said around 100 flights had been cancelled ahead of Christmas.

A Heathrow spokesperson said "a small number" of flights had been cancelled "due to strong winds and airspace restrictions".

The airport advised passengers to check with their airline for the latest information about their flight.

A spokesperson for British Airways said that "adverse weather" and "restrictions" on the number of flights able to take off and land had led to "a small number of cancellations".

They added:

The weather has also led to the "widescale cancellation" of ferry services across the Irish Sea and along the Scottish coast, road closures to high-sided vehicles and rail disruption.

A yellow warning for ice in north-east Scotland is in force until 10am on Monday morning.

European Central Bank (ECB) president Christine Lagarde said the eurozone was getting "very close" to reaching the central bank's medium-term inflation goal.

According to an interview published by the Financial Times today, Lagarde said that the central bank would cut interest rates further if inflation continued to ease towards its 2% target, as curbing growth was no longer necessary.

She opposed retaliation by Europe to tariff threats made by incoming US President Donald Trump.

A survey by the British Retail Consortium (BRC), which represents UK retailers predicted that a "January spending squeeze on the horizon" for consumers.

It said "public confidence in the state of the economy took a nosedive" this month, according to its consumer sentiment survey.

UK economic growth came in weaker than initially estimated between July and September, according to official figures on Monday.

The Office for National Statistics revised down its estimate of gross domestic product (GDP) growth in the third-quarter of this year, to 0%, down from 0.1% previously expected.

The latest GDP quarterly national accounts report also shows that real GDP per head fell by 0.2% in the period, and is 0.2% lower compared with the same quarter a year ago.

On an output basis there was no growth in the services sector in the latest quarter, whilst a 0.7% increase in construction was offset by a 0.4% fall in production.

Liz McKeown, ONS director of economic statistics, said:

The ONS also revised down its estimate for growth in April-June to 0.4%, down from 0.5% growth estimated earlier.

The cost of the average home is increasing across all regions and countries ranging from a 0.7% bump in the South East to 6.8% in Northern Ireland.

In England, the average price rose by 3% year on year to £309,000, while in Wales it was up by 4% to £222,000.

Scotland saw prices increase by 5.5% to £197,000. In Northern Ireland, the average house price rose by 6.2% to £191,000 year on year, the ONS said.

"It remains a buyer’s market and signs of increased caution amongst home buyers will keep UK house price growth in check over 2025," Zoopla said.

The housing market remains cautious heading into 2025, despite a rush of sales agreed in an attempt to take advantage of the stamp duty discount.

According to Zoopla data, prices returned to growth in November, with the average house price at £267,500, 1.9% higher than a year ago.

The data tracks that of the Office for National Statistics, which reported earlier this week that UK house prices increased by £10,000 in the year to October with the average property costing £292,000.

The sales pipeline is also around 30% higher than this time last year, the housing platform said, with 283,000 homes worth £104bn set to progress to a sale in 2025.

Part of the reason for the rush can be attributed to the fact that, from 1 April 2025, stamp duty discounts afforded to buyers expire.

Despite this movement, however, buyers have become more price-sensitive since the Autumn Budget, agreeing sales price at 3.6% below the asking price, up from 3.2% in July.

Read more from Yahoo Finance UK

Aviva (AV.L) has agreed a deal to buy rival insurer Direct Line (DLG.L) in a £3.7bn deal. The FTSE 100 (^FTSE) insurer is set to purchase its smaller competitor after a £3.3bn was bid turned down in November.

The companies had been locked in talks ahead of a Christmas Day deadline.

A deal between the two firms would create a significant force in the motor insurance sector, estimated to cover more than a fifth of the total UK market.

Aviva chief executive Amanda Blanc said the deal is “excellent news” for both companies’ customers.

The takeover will see Aviva pay 129.7 pence in cash and 0.2867 of its own shares for each Direct Line share.

It will also pay up to 5p in dividend payments per share to Direct Line shareholders as part of the deal.