Summary

  • Opec announces details of output cut deal pushing oil prices higher

  • Brent and US crude prices soar more than 9%

  • Dow Jones and S&P 500 hit intraday highs, before falling back

  • FTSE closes at 6,783.79, led higher by energy stocks

  • RBS biggest failure in Bank of England stress tests

  • Brexit poses risk to UK financial stability: Bank of England

  • Get in touch: bizlivepage@bbc.co.uk and @BBCBusiness

  1. Rip it uppublished at 10:35

    Air France exexutiveImage source, Getty Images

    Three former Air France employees on trial for ripping company executives' shirts during a dispute over layoffs have been found guilty and given suspended prison sentences of three to four months.

    The October 2015 incident left one executive shirtless and another with his shirt and jacket in tatters.

    Two other workers who faced the same charges of "organised violence" were acquitted. 

    Ten other former and current Air France employees were fined €500 for damaging company property after they broke down a gate during the protest. 

  2. Smoked outpublished at 10:24 Greenwich Mean Time 30 November 2016
    Breaking

    Tobacco companies have been defeated in their Court of Appeal legal battle against the government's new plain-packaging rules. 

  3. Driving into Saudi debatepublished at 10:17

    Prince Alwaleed bin TalalImage source, Getty Images

    Prince Alwaleed bin Talal has waded into the debate on women not being allowed to drive in Saudi Arabia.

    He didn't mince his words: "Stop the debate: Time for women to drive," he said on his official Twitter account, @Alwaleed-Talal.

    The prince is a member of the Saudi royal family and chairs the Kingdom Holding Company, which holds stakes in companies including Citigroup and 21st Century Fox. He holds no political posts.

  4. Eurozone inflation uppublished at 10:06 Greenwich Mean Time 30 November 2016

    Euro signImage source, Getty Images

    Eurozone inflation hit a two-and-half year high in November as Europe moved further away from the low consumer prices that have put a fragile economic recovery under threat. 

    Eurostat said consumer prices in the 19 countries that use the euro rose by 0.6% this month - the first time it has hit that level since April 2014. 

  5. Saudi optimismpublished at 10:01

    Khaled al-FalihImage source, Getty Images

    Saudi Arabia's energy minister said that the sentiment was "optimistic" at an Opec meeting meant to agree the cartel's first oil output cut in eight years.

    "We don't know [if a deal will be reached]," Khaled al-Falih said in Vienna as the talks started. 

    "We will find out during the meeting. I think the sentiment generally is optimistic and positive." 

  6. Brent hits $50published at 09:51
    Breaking

    Oil pumpImage source, Getty Images

    Brent crude has jumped almost 6% to $50 a barrel this morning on hopes that Opec could agree a production cut at its meeting in Vienna.

    "There will be an agreement today," an Iraqi delegate said as he entered an informal gathering ahead of the official meeting.

    "I'm optimistic," said Iranian oil minister Bijan Zanganeh, adding there had been no request for Iran to cut output.

  7. Less toxic?published at 09:38

    Tobacco giant Philip Morris says it is moving away from conventional cigarettes. 

    Chief executive Andre Calantzopoulos tells Dominic O’Connell that he wants to encourage more smokers to move to less toxic alternatives.   

    The company is launching a new product in the UK which it says is less harmful because it heats rather than burns tobacco. But the new cigarette has yet to be subject to external tests on its health impact. 

    Media caption,

    Andre Calantzopoulos of Philip Morris

  8. Stress test scenariopublished at 09:26

    These were the assumptions used by the Bank of England for its stress tests:

    • UK house prices fall by 31%
    • UK GDP falls by 4.3%
    • UK unemployment rises to 9.5%
    • Global GDP falls nearly 2%
    • China enters recession with -0.5% growth
    • US and eurozone GDP fall by 3%
    • Oil drops to $20 a barrel
  9. Asian markets await Opec meetingpublished at 09:15

    Andreas Illmer
    Business reporter in Singapore

    Shanghai traderImage source, Getty Images

    Shares in Asia ended a day of subdued trading with investors nervously awaiting the outcome of the Opec meeting. 

    Japan's Nikkei 225 closed flat, ignoring some slightly optimistic economic data on consumer confidence and housing prices released in the morning. 

    In China, Hong Kong's Hang Seng also closed flat while the Shanghai Composite finished 1% lower. 

    In Australia, the ASX 200 was down 0.3%, while South Korea's Kospi index ended the day 0.3% higher. 

  10. FTSE higherpublished at 09:04

    After opening flat, the FTSE 100 is now 0.6% higher at 6,811 points. 

    RBS is still 2.7% lower, though the biggest faller is Capita, off 3.7%.

    Barclays is now 0.4% higher, and HSBC is up a similar amount.

  11. Why RBS was hit hardpublished at 08:52

    Simon Jack
    BBC Business Editor

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  12. Pray for RBS...published at 08:43 Greenwich Mean Time 30 November 2016

    RBSImage source, Getty Images

    Neil Wilson of ETX Capital says RBS could find it very difficult to raise an additional £2bn given that is yet to turn a profit some eight years after being bailed out.

    "The bank is still 73% owned by the taxpayer and a return to private ownership looks even further away than ever," he says. "It’s got to pray that Clydesdale Bank’s bid for Williams & Glyn goes through – RBS had wanted £1.9bn for the 315 branches but chances are it will be for a good bit less than that."

    While there was much better news elsewhere for the UK’s banking sector, Mr Wilson warns: "The banks have to be mindful of risks to financial stability from Brexit and the upcoming Italian referendum, which could send a shockwave through the European and UK banking sectors if a No vote trips up the many Italian banks teetering on the brink.”

  13. RBS 'lost its way'published at 08:34

    Mark Carney says RBS  "lost its way over the years" - but has made much progress in recent years, particularly around its core business franchise, which is to serve UK consumers and small businesses.

    Sam Woods, a deputy Bank governor and chief executive of the Prudential Regulation Authority, says RBS has got stronger since the last stress test and made major improvements.

    But because this year's test was more severe it had fallen short of the hurdles.

    The cost cuts, balance sheet cuts and other changes made by RBS are credible and will comfortably cover the shortfall, Mr Woods adds.

  14. Carney on Brexitpublished at 08:25

    Mark Carney tells the press conference at the Bank of England that financial institutions need less than two years to put changes into effect. However, he says that the more abrupt the change, the greater the risk to financial services.

    The government is weighing up a very broad range of issues as part of its Brexit negotiations, and only ministers are able to outline a plan, Mr Carney says.

    There will always be a period of transition once an agreement on leaving the EU is made, he adds.

  15. Brexit stability 'challenge'published at 08:19

    The outlook for the UK's financial stability following the Brexit vote "remains challenging" and depends on an orderly exit from the European Union, the Bank of England has said. 

    In its Financial Stability Report, external the Bank said that as a result of the 23 June vote, the likelihood of risks to financial stability "remains elevated". 

    "It will take time to clarify the United Kingdom's new relationships with the European Union and the rest of the world as well as for the UK economy to adjust to these changes. The orderliness of the adjustment will influence the risk to financial stability." 

  16. Trump trade threatpublished at 08:13 Greenwich Mean Time 30 November 2016

    Mark Carney is concerned that US president-elect Donald Trump's policies could contribute to the slowdown in global trade.

    That will have a knock-on effect in the UK, but he adds it is hard to imagine the impact would be worse than the scenario in the stress tests. They included a near- 2% fall in GDP.

  17. Non-mortgage debt riskpublished at 08:07 Greenwich Mean Time 30 November 2016

    Mark Carney

    More from Mark Carney: he says high levels of household debt is something the Bank watches closely.

    The Governor says it is important to put it in context: households in the UK worked hard over years since the crisis to pay down debt. In that process the number of highly indebted households has come down significantly. 

    That said, Mr Carney points out that debt is relatively high still and households have been running down their savings, with non-mortgage debt becoming a problem.

    However, the good thing is that households and businesses can still get access to credit on quite competitive terms, he adds.

  18. RBS fallspublished at 08:03 Greenwich Mean Time 30 November 2016
    Breaking

    Shares in RBS have opened 2.3% lower at 192.5p, while Barclays is down 0.3% and Standard Chartered is 0.4% lower.

    The FTSE 100 is flat at 6,770 points. 

  19. Borrowing - and spending - concernpublished at 07:58 Greenwich Mean Time 30 November 2016

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  20. The weakest linkspublished at 07:55 Greenwich Mean Time 30 November 2016

    Simon Jack
    BBC Business Editor

    Eight years on from the financial crisis and taxpayer-owned RBS is still short of money it needs to survive another one. 

    It came bottom of the class in the Bank of England's tests of financial strength and has been forced to beef up its finances.

    Barclays also scored poorly, but the proceeds of the sale of its African business helped it squeak through.

    These were the two weakest links in a system that overall has strengthened - and just as well. 

    The Bank's Financial Stability Report has plenty of reasons for concern. The UK’s reliance on foreign money to finance its trade deficit – the so-called kindness of strangers – is highlighted along with the vulnerability of the UK’s role in providing financial services to the European Union. 

    Add to that the rapid increase in debt in China and the world looks like a dangerous place – not for the first time. RBS has been found vulnerable.