Image source, Reuters

Economic uncertainty is now far higher than during both the financial downturn and the eurozone crisis, according to Albert Edwards, strategist at Societe Generale.

Mr Edwards says that corporate bond spreads should be much wider given current political instability. However, markets seem content to shrug-off a series of extraordinary events including Brexit, Donald Trump's election and the result of the Italian referendum which ousted Prime Minister Matteo Renzi (pictured). 

He cites evidence from academics in the US called Baker, Bloom and Davis that the world is now more uncertain than it was in 2008 and 2012 yet spreads are currently far below trend.

Mr Edward concludes: "...it should worry everybody. On our analysis, US credit and corporate debt is the vortex of debility for the next recession."   

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Sports Direct also disclosed this morning that it has entered into an agreement with a company in which Mike Ashley's daughter, Matilda, is a director.

The retailer has signed a deal with Double Take Limited for the exclusive rights to a cosmetics brand called SPORT FX. Double Take has Ms Ashley as a director and is owned by Mash Holdings which is controlled by Mr Ashley.

Sports Direct is being investigated by the Financial Reporting Council over an arrangement between the business and Barlin Delivery, which is owned by John Ashley, Mr Ashley's elder brother. 

Sports Direct also purchases consultancy services from MM Prop Consultancy, which is controlled by Michael Murray, the boyfriend of Anna Ashley, the eldest daughter of Mr Ashley.

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Time to dust off the old CV, there's a dream job up for grabs - as a Formula One driver. 

Mercedes has taken out an advert in Autosport magazine to find a replacement for world champion, Nico Rosberg, who stunned the F1 world by announcing his retirement.  

While some may think the ability to do donuts in a car park will qualify them for the role, the tongue in cheek ad wants someone with “a proven track record in skills including steering, braking and, in particular, accelerating”.

A new team mate for fellow Mercedes driver, Lewis Hamilton, will be offered a “competitive package” including “life assurance, private medical cover, on-site gym and subsidised restaurant”.

National Grid's chief executive, John Pettigrew, has defended the group which is purchasing a majority stake in its UK gas distribution business, telling the BBC's industry and employment correspondent, John Moylan, it has a long track record of investing in British assets.

Dominic O'Connell
Business Presenter, BBC Radio 4 Today programme

Image source, Getty Images

We reported earlier on the US Surgeon General’s report into the risks of rising e-cigarette use among teenagers and young adults. Dominic O'Connell, Today Business Presenter, explains:

This will be a big blow to advocates of e-cigarettes, which as well as tobacco companies include British public health authorities. The makers of e-cigarettes, which convey nicotine on water vapour rather than tobacco smoke, as much less harmful than conventional cigarettes. 

In the UK, the Royal College of Physicians has argued that e-cigarettes should be promoted as a means to help adults quit smoking.

The Surgeon General will say later today that the use of e-cigarettes by children and teenagers is a major public health concern, saying that nicotine addiction could lead to mood swings and attention deficits – and may make young people more likely to try conventional tobacco. The report says e-cigarettes should face increased regulation and taxation.

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France's former budget finance minister, whose government role involved cracking down on tax dodging, has been sentenced to three years in prison for tax fraud and money laundering.

Jerome Cahuzac, who was a minister under President Francois Hollande, has admitted that he hid funds offshore to maintain his family's luxury lifestyle.

His ex-wife, Patricia Menard, was handed a two-year sentence after it was discovered that she moved millions of euros abroad from the couple's lucrative hair transplant business.

The scandal prompted Mr Hollande to order his ministers to disclose their personal wealth. 

Part of that National Grid will see £150m distributed to benefit energy customers. BBC industrial correspondent John Moylan has this update:

Image source, EPA

A bit more on National Grid's deal to sell a major stake in its £13.8bn gas distribution business to a consortium of investors.

One of the investors, UK asset manager Hermes, is delighted with the deal. 

It says there's a long-term, sustainable demand for gas, and that as inflation goes up, so too will the networks' revenues.

All in all, the gas networks are "strategic UK infrastructure assets and an excellent fit within our core investment strategy," it says.

Unions have warned the sale of the company, which distributes gas to 11 million UK homes and businesses, could end up being a bad deal for consumers.  

Ashleigh Nghiem
Business reporter in Singapore

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Asian shares finished the day off strongly, with South Korea, Japan and Australia's indices among the big winners.

Seoul's Kospi surged nearly 2%, Tokyo's Nikkei 225 ended the day 1.5% higher and Sydney's ASX200 climbed around 1.2%.

Japan's GDP was later revised down quite sharply to 1.3% for the three months to the end of September, compared with an initial estimate of 2.2%.

Hong Kong's Hang Seng index made more modest gains of 0.3% and the Shanghai Composite bucked the regional trend, closing around 0.2% lower, despite upbeat Chinese trade figures. 

BBC Radio 5 live

Iceland's Foreign Minister Lilja Alfreðsdóttir has been talking to BBC 5 live's Colletta Smith about the country's argument with the UK shopping chain with the same name. 

Unsuccessful talks about use of the "Iceland" trademark took place at the weekend to try to resolve the matter. 

Kevin Peachey
Personal finance reporter

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The annual review of the UK's final salary pension schemes makes worrying reading for those banking on saving into such a scheme for years to come.

The so-called Purple Book by the Pension Protection Fund (PPF) lifeboat scheme reveals collective scheme deficits of £222bn by the end of March - but big fluctuations subsequently since June. 

The longer-term picture suggests little progress has been made in strengthening these schemes.

"When we look back at what progress schemes have made over the last decade it appears that many schemes are just treading water," says Andrew McKinnon, chief financial officer of the PPF.

"The average recovery plan length, at around eight years, has barely improved, which brings home the challenge we now face."

John Moylan
BBC industry & employment correspondent

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The Unison trade union has criticised National Grid's sale of a 61% stake in its UK gas distribution business to a group led by Macquarie, the Australian infrastructure investor which also owns Thames Water. 

Unison union general secretary Dave Prentis says Macquarie has "poor form". 

"The experience of Thames Water customers when Macquarie was running the show should have been a red flag to ministers and regulators as how unsuitable this company is to be in charge of the UK's gas supply."  

He adds: "The company has already proved it can't be trusted with the nation's water supply, but now it is to be in charge of gas pipes to millions of homes and businesses."  

Long-suffering customers of Southern Rail will learn later today if they face yet more disruption.

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Shares in Capita are trading at their lowest price in more than 10 years after the outsourcing group issued a profit warning.

The company, which is undergoing a reorganisation, now expects underlying profit for 2016 to reach £515m before restructuring costs of around £50m. It reported underlying pre-tax profit of £585.5m for its last full-financial year.

Capita, which operates the London congestion charge, said it had experienced a lower number of contracts or delays as customers cut costs. It also said that the performance in its IT Enterprise Services division had weakened further.

It expects the trend to continue into the first half of 2017 before improving.

Shares fell by 8% to 519p, the lowest since mid-2006.

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Bookmakers have also taken a hit in early trading after it was reported that a group of MPs will call for stricter controls on high-stakes gambling machines.

The Times says that MPs will today call for the maximum stake to be cut from £100 and the speed slowed down on the fixed-odds betting terminals found in betting shops.

The MPs' findings aren't binding, but they hope to influence a government review currently being held into the controversial machines.

William Hill shares are down 8% and Ladbrokes is off 7%. 

Image source, Reuters

The FTSE 100 is holding onto the gains it made yesterday when the UK index posted its biggest rise for three months.

It's up eight points at 6,910 in the first hour of trading. 

Ad agency WPP is one of the big winners after its stock was upgraded by analysts at Jefferies.

Outsourcing company Capita is the heaviest faller after it warned that profits for 2016 would drop.

Image source, Getty Images

Mikhail Khodorkovsky, the Russia oligarch who was once the country's richest man, has won a legal victory to recover $100m worth of assets that were frozen in Ireland.

The freezing order was revoked by Dublin's District Court on Wednesday after Irish police had conducted an investigation in the wake of Mr Khodorkovsky's 2010 conviction in Russia for money laundering.

The head of the International Centre for Legal Protection, which is coordinating legal cases related to Yukos, which Khodorkovsky used to head, said Russia was "extremely surprised" by the ruling.

Image source, Getty Images

National Grid is to sell a majority stake in its gas distribution business to a group of Australian, Qatari and Chinese investors. 

A consortium led by Australian asset manager Macquarie, and including the Qatar Investment Authority and China Investment Corporation, want to buy 61% in the business which distributes gas to nearly 11 million UK households and businesses. The deal will value the entire UK gas distribution business at £13.8bn. 

National Grid says it will return £4bn to shareholders and will make a "voluntary distribution of £150 million for the benefit of energy consumers".

Shares in National Grid rose by 1.2% in early trading. 

Dominic O'Connell
Business Presenter, BBC Radio 4 Today programme

A subtle sign of the change in mindset at Sports Direct comes deep in the fine print of today’s interim results.

Under the prim heading “corporate assets and facilities” the company says it is about to take delivery of a corporate plane. Business aircraft are always a potential source of embarrassing headlines, and Sports Direct has had its fair share of those over the last year. But finally it has shown it has learned one of the ways to avoid such headlines – be upfront about what is happening and explain it, and the sting is drawn.

Elsewhere, the company’s critics were given a few sops. The veteran banker David Brayshaw has been recruited as an independent director, and may perhaps be in line to take over as chairman should Keith Hellawell, the incumbent, not survive another vote on his tenure on 5 January.