FTSE 100 Live: GDP ‘stumbles’ to end of year, Premier Inn owner’s earnings dip

Good morning from the City PM liveblog team.

Amid all the doom and gloom, it was a moment to cheer for bankers in the Square Mile yesterday.

Rules governing bonuses are getting relaxed, which could lead to a tastier payout come the new year.

The new rules will allow part-payment of bonuses for the most senior bankers from year one, rather than year three under previous rules.

The amount of time that senior bankers must now wait before receiving their full bonus, known as a deferral period – will be cut from eight to four years.

The proposals bring the UK more closely in line with many other major jurisdictions, according to the Prudential Regulatory Authority (PRA).

The changes will also include the lifting of restrictions on the proportion of bonuses that need to be deferred, going further than measures considered by the consultation, as well as new rules to give firms more flexibility to allow a greater share of the cash element of bonuses to be received up front.

The PRA said the reforms strengthen the link between the actions of senior bankers and their financial rewards, strongly encouraging firms to tie bonuses closer to the successes of executives as well as any risk-management failures.

The changes follow a decision by then-chancellor Kwasi Kwarteng to scrap the bonus cap, an EU rule that restricted the size of banker bonus awards as a proportion of their fixed pay.

Here’s a summary of our other top headlines from yesterday:

• IMF sounds alarm on soaring sovereign debt
• ICO fines Capita £14m after millions affected by data breach
• Royal Mail slapped with £21m Ofcom fine for late deliveries
• Wall Street banks toast to $130bn revenue in deal making boom
• Reeves revives plan to cut cash ISA despite backlash
• Mining has its mojo back – will London miss out?