ProfessionalServices

JP Morgan boss warns trade tariffs could lead to US recession and stagflation

2025-08-08 18:37:25

Jamie Dimon, chairman and chief executive of JP Morgan, has cautioned that the stringent trade restrictions imposed by President Donald Trump could steer the US economy towards recession and stagflation. Dimon's comments came ahead of the multinational investment bank's financial results, which reported a revenue of $180.6bn and a net income of $58.5bn in 2024, as reported by City AM. He lauded the bank for playing "a forceful and essential role in advancing economic growth." In the banking giant's annual report, Dimon stated: "The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession." He added: "And even with the recent decline in market values, prices remain relatively high. These significant and somewhat unprecedented forces cause us to remain very cautious." Expanding on the risk of recession, Dimon said: "Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth." He further elaborated: "There are many uncertainties surrounding the new tariff policy: the potential retaliatory actions, including on services, by other countries, the effect on confidence, the impact on investments and capital flows, the effect on corporate profits and the possible effect on the U.S. dollar." He characterised JP Morgan Chase as "a company that historically has worked across borders and boundaries." The chief executive of the bank emphasised that the "long-term health of America, domestically, and the future of the free and democratic world" are intrinsic to the well-being of the investment bank. In a notable development, despite Trump reportedly using JPMorgan head Dimon as an informal consultant post-election as he prepared for a second term—considering him a "sounding board" for economic strategies—there appears to be a divide emerging over tariffs. Dimon remained impartial during the US presidential campaign, but there has been talk about his potential inclusion in the cabinet of either Trump or his then-rival Kamala Harris come 2024. Adding to the discourse, billionaire investor Bill Ackman has also made headlines with a stern warning on Sunday regarding Trump's trade policy, suggesting it could lead to an "economic nuclear winter."

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Santander announces closure of 95 branches impacting 750 jobs across the UK

2025-08-24 12:38:07

Santander UK is poised to make sweeping changes across its network, placing approximately 750 jobs at risk as it prepares to close 95 branches. The Spanish-owned banking titan disclosed plans for the closures starting in June, with additional adjustments affecting more than a third of its 444-strong network, including reduced operating hours at 36 sites and transforming 18 into counter-free locations. Following the overhaul, Santander will operate 349 branches, comprising 290 full-service outlets alongside five 'work cafes.' These measures come in reaction to a customer trend towards online banking, highlighted by a 63% increase in digital transactions since 2019, contrasted with a steep 61% decline in branch activity during the same period. A spokesperson for Santander UK remarked on the evolving nature of customer habits, stating: "As customer behaviour changes, we are ensuring that our branches remain fit for the future." To compensate for the branch closures, Santander plans to hire 95 community bankers in affected areas and aims to offer alternative roles to some current employees. These community bankers will engage with neighbourhoods weekly, operating from places like libraries and community centres. Branches set for closure and when they will shut: Aberdare, Glamorgan, Wales, June 24 Arbroath, Angus, Scotland, June 17 Armagh, County Armagh, Northern Ireland, July 1 Blackwood, Gwent, Wales, June 23 Blyth, Northumberland August 5 Bognor Regis, West Sussex, July 14 Borehamwood, Hertfordshire, July 1 Brecon, Powys, Wales, June 25 Brixton, London, August 11 Caernarfon, Gwynedd, Wales, July 07 Camborne, Cornwall, July 7 Canvey Island, Essex, August 5 Clacton, Essex, June 16 Cleveleys, Lancashire, June 23 Colne, Lancashire, July 14 Colwyn Bay, Clwyd, Wales, July 24 Crowborough, East Sussex, July 23 Croydon, Surrey, June 16 Cumbernauld, Lanarkshire, Scotland, July 7 Didsbury, Greater Manchester, July 8 Downpatrick, County Down, Northern Ireland, August 6 Dungannon, County Tyrone, Northern Ireland, June 23 Edgware Road, London, August 12 Eltham, London, June 23 Exmouth, Devon, July 15 Falmouth, Cornwall, July 21 Farnham, Surrey, July 29 Felixstowe, Suffolk, July 16 Finchley, London, August 6 Fleet, Hampshire, June 30 Formby, Merseyside, August 11 Gateshead Metro, Tyne & Wear, June 16 Glasgow LDHQ, Lanarkshire, Scotland, June 24 Glasgow MX, Lanarkshire, June 23 Greenford, Greater London, June 24 Hackney, London, July 15 Hawick, Roxburghshire, Scotland, July 24 Herne Bay, Kent, July 8 Hertford, Hertfordshire, July 29 Holloway, London, July 14 Holywell, Clwyd, Wales, Aug 13 Honiton, Devon, July 14 Kidderminster, Worcestershire, June 18 Kilburn, London, June 17 Kirkby, Merseyside, July 22 Launceston, Cornwall, June 16 Louth, Lincolnshire, June 17 Magherafelt, County Londonderry, Northern Ireland, June 24 Malvern, Worcestershire, July 2 Market Harborough, Leicestershire, July 01 Musselburgh, Midlothian, Scotland, June 30 New Milton, Hampshire, July 28 Peterhead, Aberdeenshire, June 26 Plympton, Devon, August 14 Portadown, County Armagh, Northern Ireland, June 30 Pudsey, West Yorkshire, July 28 Rawtenstall, Lancashire, July 15 Ross-On-Wye, Herefordshire, July 30 Ruislip, Greater London, July 7 Rustington, West Sussex, August 5 Saltcoats, Ayrshire, Scotland July 21 Seaford, East Sussex, July 15 Shaftesbury, Dorset, July 23 Sidcup, Kent, August 11 St Austell, Cornwall, July 8 St Neots, Cambridgeshire, July 30 Stokesley, Cleveland, July 31 Strabane, County Tyrone, Northern Ireland, July 23 Surrey Quays, London, November 10 Swadlincote, Derbyshire, June 30 Tenterden, Kent, July 7 Torquay, Devon, June 17 Tottenham, London, July 8 Whitley Bay, Tyne & Wear, August 6 Willerby, East Yorkshire, August 13 Wimborne, Dorset, August 4 Wishaw, Lanarkshire, Scotland July 22 Branches awaiting confirmed closure date: Bexhill, East Sussex Billericay, Essex Dover, Kent Droitwich, Worcestershire Dunstable, Bedfordshire East Grinstead, West Sussex Holyhead, Gwynedd, Wales Ilkley, West Yorkshire Larne, County Antrim, Northern Ireland Lytham St Annes, Lancashire Maldon, Essex Morley, West Yorkshire North Walsham, Norfolk Redcar, Cleveland Saffron Walden, Essex Turriff, Aberdeenshire, Scotland Uckfield, East Sussex

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Nikhil Rathi secures another five-year term as FCA chief amidst UK regulatory overhaul

2025-08-19 09:31:11

Nikhil Rathi has been reappointed as the chief executive of the Financial Conduct Authority (FCA) for a further five years, tasked with the government's new mandate to cut back on unnecessary and repetitive regulation, as confirmed by the Chancellor. Rathi, who previously served as a Treasury official and the CEO of the London Stock Exchange, will continue his leadership at the FCA, the UK's principal financial regulator, as reported by City AM. Should he complete this term, Rathi's tenure at the helm of the FCA will reach a full decade. The Chancellor has chosen to maintain stability in the role, highlighting that Rathi's contributions have been "crucial" to the government's ambitious regulatory reform efforts aimed at streamlining the UK's regulatory framework to eliminate perceived impediments to economic expansion. On Christmas Eve, Rachel Reeves and Keir Starmer issued a directive to the heads of the UK's ten leading regulatory bodies, urging them to "tear down the regulatory barriers" they believe are constraining economic progress. This initiative to orientate the UK's regulatory bodies towards promoting growth has led to the departure or removal of several regulatory leaders, including those at the Competition and Markets Authority and the Solicitors Regulation Authority. The campaign has also triggered a significant reshuffle within the financial regulatory landscape, exemplified last month by the merger of the Payments Systems Regulator with the FCA, which aims to minimise redundant regulatory obstacles for businesses. Rathi will oversee the seamless integration of the merger. Upon hearing of his reappointment, he commented: "I am honoured to be reappointed by the Chancellor. The FCA does vital work to enable a fair and thriving financial services sector for the good of consumers and the economy." In the previous month, both the FCA and the Bank of England's Prudential Regulation Authority abandoned their initiatives to regulate firms' diversity, equity and inclusion (DEI) performance. Reflecting on these actions and other measures to reduce regulatory burden, Rathi stated: "I am proud of the reforms we have delivered to support growth, bolster operational effectiveness, set higher standards and to keep our markets clean and open." Reeves expressed her approval, saying: "Nikhil Rathi has been crucial in this government's efforts to reform regulation so it supports growth and boosts investment – I am delighted he will be continuing his leadership of the FCA."

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London Stock Exchange's IPO market is 'nothing more than a dribble'

2025-08-05 00:06:22

With only four IPOs initiated on the London Stock Exchange this year compared to 15 takeover bids, there's a rising concern among analysts that London’s equity markets are losing robust companies at an alarming rate. Commenting on this trend, AJ Bell investment analyst Dan Coatsworth expressed concerns about the market's performance, as reported by City AM. "It's now been nine months since the UK general election and the pace of IPOs is nothing more than a dribble," he remarked. While three out of the four firms initiating public offerings joined the LSE's junior market AIM, Achilles Investment Company was the sole new entrant on the main market with its £54m valuation. The spectre of rising taxes coupled with the turmoil instigated by US President Donald Trump's tariffs is contributing to "considerable uncertainty" for businesses. This uncertain climate has caused many firms to hesitate in moving forward with IPOs due to fears of volatile market conditions, as pointed out by Coatsworth. In a related discourse yesterday, Peel Hunt head of research Charles Hall emphasized the "urgent" need to bolster London’s equity markets to raise their appeal for forthcoming IPOs. Nevertheless, some signs of a turnaround are starting to show, with announcements in March from both authentication technology company Quantum Base and accounting firm MHA that they plan to go public later in the year. On another front, this year's most significant takeover overtures have featured KKR's £1.6bn bid for Assura, the £1.2bn deal proposed by Greencore for Bakkavor, and Dowlais' £1.1bn proposition from American Axle & Manufacturing. Most of these acquisitions have been made at a significant premium to the company's market capitalisation, indicating that UK equity markets may still be undervalued. "The second quarter has already got off to a strong start with Qualcomm expressing interest in potentially buying Alphawave IP," observed Coatsworth. Despite a lacklustre performance from IPOs so far this year, Coatsworth noted that speculation about new entrants is ramping up. Potential candidates for a London float in the coming months include Waterstones, gold mining firm NMMC, and banking group Shawbrook, which was delisted in 2017. Coatsworth also mentioned rumours that CK Hutchison might list its European, Hong Kong and South-East Asian telecoms operations in London. In addition to the 15 ongoing takeover situations, Coatsworth pointed out that there are still many potential targets for bidders on the market. These include B&M, whose share price has halved over the past year and is currently trading at 7.6 times its forward earnings. "It's either a bargain at that price or the market doesn't believe the earnings forecasts," commented Coatsworth. Halfords is another retailer that many expect to become a target due to its low valuation and the need for radical changes to its business model. Lastly, Jet2's share price is currently at its lowest level since 2023, presenting a potential opportunity for rival airlines to attempt a takeover.

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Schroders share price target upgraded as analysts see 'upside risk'

2025-08-09 07:06:31

RBC analysts have raised their target price for Schroders' stock, taking into account the group's recently announced cost-cutting initiative. The bank has increased Schroders' target price from 395p to 475p. The stock is currently trading at 379p, having risen 17 per cent since the beginning of 2025, as reported by City AM. The cost-cutting strategy was unveiled when Schroders released its annual results earlier this month, which also showed a 14 per cent increase in pre-tax profit over the year. Schroders aims to achieve £150m in cost savings by 2027, with £20m already cut in the first quarter of this year and an additional £40m expected to be saved throughout 2025. Following the announcement of the plan, RBC revised its estimates for the group's adjusted operating earnings, raising them by up to nine per cent by 2027. RBC analyst Mandeep Jagpal anticipates Schroders' £603m adjusted operating profit from 2024 to continue growing, potentially reaching as high as £811m by 2027. However, RBC's expectations exceed the consensus among other analysts, who predict a more conservative £737m in adjusted operating profit by 2027. The bank also forecasts a recovery in inflows for Schroders this year, after investors withdrew £10.8bn from the company in 2024. Schroders' shares are currently trading at just 11 times its projected earnings, a 20 per cent discount to its historical average, as well as a discount to its sum-of-the-parts valuation used listed peer multiples. For instance, rival firm St James's Place is trading at a 13.8 times multiple, while Quilter is trading at a 12.8 times multiple. "These discounts underscore the persistently low market expectations for Schroders, and reinforce our view of more upside risk than downside from here," Jagpal stated.

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The latest acquisitions and equity investments in Wales

2025-08-03 23:39:22

Here we feature the latest equity funding raising and business acquisition deals in Wales. Game industry veterans Susan and Lee Cummings have secured a significant six-figure investment from Angels Invest Wales, PlayCap and the Games Angels for their new game development studio, 10six Games. The investment boost comes ahead of the upcoming first game release by 10six Games. The company has also announced the appointment of industry guru Nick Button-Brown as a company director. Led by lead investor Huw Bishop, the pre-seed round has been funded by a syndicate of 12 angel investors including members of PlayCap (a global angel network of women from the games industry who specialise in early-stage investments in studios, companies, and tech in games) and The Games Angels (a global angel network of Games Industry veterans). The Development Bank of Wales has provided match-funding from the Wales Angel Co-Investment Fund that is run by Angels Invest Wales. Susan and Lee Cummings previously set-up Tiny Rebel Games, the award-winning game production studio behind Doctor Who: Legacy and Infinity for mobile devices and computers. Susan also co-founded 2K Games, developing Bioshock, Borderlands, X-Com, 2K Sports, and Civilization. She is a visiting professor at the University of South Wales along with husband Lee who worked at Sony before moving to Rockstar Games’ Grand Theft Auto team where he was a producer on GTA: San Andreas and GTA 4, and where he was a key member of the redesign team on Bully. More recently, he has led the creative design for various award-winning games including Doctor Who, Star Trek, War of the Worlds, and Wallace & Gromit (under licence). Mr Button-Brown has worked across the tech and games industry for more than 20 years, including helping grow and scale Improbable, and helping take Sensible Object to a trade sale to Niantic. He is currently chair at Outright Games, Chair at Coherence and on the board at Adinmo. He founded The Games Angels in 2021, a community of games industry veterans investing and supporting start-ups. Nick is also on the board at UKIE (one of the UK’s games industry representative bodies) and OKRE (a charity promoting links between research and entertainment) as well as driving Funding Quest, a programme improving the investability of UK Games companies. Ms Cummings said: “Representation in video games is more important than ever, and technological limitations have long constrained the scale of customization developers could offer. With our proprietary technology and our upcoming game “You v Zoombies, we’re breaking those barriers—creating fully personalized, ever-evolving experiences for every player. This level of customisation was previously unattainable, but thanks to advancements in generative AI, we’re making it a reality right here in Wales.” Mr Cummings said:“Our technology enables autonomous AI-driven design decisions, from custom starting spells and upgrades to gameplay sequencing and story development. It’s an incredibly exciting breakthrough. “We’re also grateful for the support of gaming industry expert Nick Button-Brown and our funding partners, who share our vision for the future of personalized gaming.” Lead investor Mr Bishop said: “It was a pleasure to bring together a group of angels to support 10six Games, a new game development studio led by seasoned founders and gaming rockstars, Susan and Lee Cummings. They have a uniquely exciting vision for the next generation of player character and story customisation in games. Their track record is second to none and I look forward to supporting them in the future”. Tom Preene of Angels Invest Wales said: “This is a team surrounded by some of the top experts in the global games industry. They are working at the cutting edge of technology and are known for their innovation and creativity. Gaming is a growth industry, and it is exciting to think what it could mean for Wales as more developers start to recognise South Wales as a gaming hub.” The investment by the syndicate of angels was match funded by the Wales Angel Co-Investment Fund. With equity and loans from £25,000 to £250,000, the £8 million fund is available to syndicates of investors seeking to co-invest in Wales based SMEs. Syndicates are managed by Lead Investors who have been pre-approved by Angels Invest Wales. Cellar Drinks Powys-based Cellar Drinks has acquired Hurns Beer Company. The deal, the value of which hasn’t been disclosed, marks a significant milestone in Cellar Drinks’ ambitious growth plans. Hurns Beer Company will continue to operate from its existing depots in Swansea and Caerphilly and under its own name. The acquisition also brings opportunities for new and existing Hurns customers with an expanded product range, including new brewery partnerships, an extensive wine portfolio, premium spirits and soft drinks. Rhys Anstee, managing director of Crickhowell-based Cellar Drinks said: “I am thrilled to take on the stewardship of Hurns Beer Company and cannot wait to build upon its incredible legacy. Hurns has a rich history, and we are committed to honouring its past while also driving it forward into a new era. Our customers can look forward to unrivalled service levels as well as an expanded and diverse product offering, ensuring that we continue to be their trusted drinks supplier for years to come.” Connie Parry, from the Hurns family, said: “As a family, we are delighted to hand the keys over to Rhys. We have known each other for many years, and he is the ideal custodian to lead the business into its next chapter. The entire team is excited about the future and looks forward to working together to continue growing the business.” Chyrelle Anstee, director at Cellar Drinks Co, added:“Our new Hurns customers can look forward to a new online ordering facility, lots of engagement from key suppliers, and a new bi-monthly brochure that will allow them to focus on profitability in these uncertain times. We’re committed to offering innovative solutions that make doing business easier and more profitable for all of our customers.” The Hurns was originally established as the Hurns Mineral Water Company by Arthur A Hurn in the late 1800s. Burbank A Cardiff fintech start-up has raised £5m to support global expansion plans. It comes after Burbank earlier this month successfully demonstrated the world’s first certified online card-present transaction. Known as card-present over internet (CPoI) its tech platform redefines two-factor authentication so allowing shoppers online to simply tap their card to their mobile device and securely enter their PIN to complete a transaction, just like they do in-store. Until now, online payments were card-not-present (CNP) transactions, which have high and increasing levels of fraud. Currently, online merchants face over $40bn annually in fraud and charge backs, which is when a cardholder disputes a transaction and the merchant is obligated to provide a refund. The £5m seed funding round was led by Mouro Capital with participation from Anthemis (supported by Foxe Capital), Portfolio Ventures and others. These funds will accelerate the global roll out of Burbank’s platform. Justin Pike, the Newbridge-born founder and chief executive of Burbank, said, “We are extremely excited to bring this evolution in payments to the world. The payments experience should be the same for everyone, regardless of channel. “In-store we pay by tap and PIN, which is globally trusted and familiar, and now, for the first time ever, we’re enabling the same process in online channels. Simple, secure, and scalable. The way it should be.” Manuel Silva Martinez, general partner at Mouro Capital, said: “I’m thrilled to support Justin and his team of payments experts. Burbank offers a simple, seamless integration through a single while-label SDK (software development kit), which securely integrates into existing technology stacks, and supports multiple schemes on iOS and Android. It’s what the market needs.” Ruth Foxe Blader, general partner at Foxe Capital, added, “CPoI is the first protocol that legally shifts liability away from the merchant. It’s a massively scalable approach, with global demand.” Burbank’s advanced platform offers unparalleled convenience and robust security, empowering consumer-facing businesses to innovate in customer experience and unlock new revenue opportunities.” Burbank owns the intellectual property to its technology and said it will soon receive two global patents. Its revenue model will see it taking a percentage of the savings made for merchants on the cost of processing. Hugh James deal Cardiff headquartered legal firm Hugh James have advised the shareholders of Kent-based Highway Care Limited on its sale to Ramudden Global, a leading provider of infrastructure safety solutions. Kent-based Highway Care, a leading provider of innovative road safety solutions, offering a broad range of products, including permanent and temporary road barriers, mobile traffic products, automation systems, and security solutions. The acquisition by Ramudden Global ensures continued investment in the company’s product development, allowing it to expand its reach and enhance its service offering in the road safety sector. Huw James corporate and commercial partner Andrew Hoad led the deal, supported by solicitor Daniel Burke. Mr Hoad said: “It has been a great pleasure working with John and the Highway Care team throughout this sale. We congratulate Ramudden Global on their successful acquisition and look forward to seeing Highway Care continue to flourish under its new ownership.” Curtis Bowden & Thomas Acquisitive professional services firm Xeinadin has acquired south Wales accountancy firm Curtis Bowden & Thomas. The value of the deal for the firm, which has offices in Tonypandy and Bridgend, has not been disclosed. Established in 2003, Curtis Bowden & Thomas provides a range of general accounting and taxation services to local businesses. The 22-strong team will continue to operate from their offices with the support and resources of being part of Xeinadin’s network. The firm will continue to trade as Curtis Bowden & Thomas. Robert Lloyd, Stephen Smith, and Stephen Davies partners with Curtis Bowden & Thomas, said: “We’re excited to join Xeinadin and continue delivering the high-quality service our clients expect. South Wales faces distinctive challenges, from economic regeneration to skills shortages, and we’re confident that being part of Xeinadin will improve our ability to support local businesses. With access to a wider network of expertise and resources, we’ll be better equipped to help our clients navigate these challenges and drive sustainable growth.” Last year Xeinadin acquired Carmarthen-based accountancy firm Clay Shaw Butler and Bridgend-based Clay Shaw Thomas. Derry Crowley, chief executive at Xeinadin, said: “Curtis Bowden & Thomas has built a strong reputation in South Wales by providing businesses with the support they need to thrive, despite the unique economic challenges of the region. With a deep understanding of the local business environment, their expertise aligns well with Xeinadin’s commitment to supporting growth in Wales and we’re excited to welcome them to the team.”

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HMRC sees UK firms overpaying billions in corporation tax as complex system hits businesses

2025-08-16 18:33:10

UK businesses overpaid a staggering £14.2bn in corporation tax last year, a report by a prominent accountancy firm has revealed, highlighting the ongoing challenges posed by the nation's intricate financial system. Chancellor Rachel Reeves has assured entrepreneurs and investors of her support for British business, despite economic pressures from President Trump's tariffs and tax increases announced at the Autumn Budget, as reported by City AM. However, a complex tax regime is causing deep-seated issues, with many firms overpaying HMRC, as per findings by UHY Hacker Young. The accountancy firm's research, derived from a Freedom of Information request, indicates that UK companies overcompensated the government by £14.2bn in corporation tax in the year ending April, affecting approximately 400,000 businesses. The study notes that the overpayment for the fiscal year 2024 to 2025 was 21 per cent higher than the previous tax year. Corporation tax, which deducts a portion from company profits, operates on a tiered system, with the principal rate set at 25 per cent for businesses earning profits above £250,000. UHY Hacker Young's accountants argue that HMRC's approach often results in firms paying excessive corporation tax due to potential penalties if profits fall short of projections. This situation can lead to "significant cash flow problems," the researchers warn, as it falls upon companies to reclaim any overpaid funds. "Overpaying corporation tax is a double hit for struggling businesses," remarked Brian Carey, a partner at UHY Hacker Young. "Not only do they suffer from lower-than-expected profits, but they also see vital cash locked up with HMRC." This statement comes on the heels of a separate report by Thomson Reuters which highlighted that businesses now contribute to over a quarter of all UK tax receipts. The surge in corporation tax receipts has been a significant factor, with the government now collecting over £200bn through this tax. Concurrently, concerns are being raised about HMRC potentially underestimating the extent of tax evasion.

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Womble Bond Dickinson strikes strategic alliance with Brazilian business

2025-08-13 05:37:25

Law firm Womble Bond Dickinson (WBD) has struck a strategic alliance with a leading Brazilian business to extend its reach over three continents. The Newcastle company, which also has offices in Edinburgh and on Teesside, has joined forces with law firm Schmidt, Valois, Miranda, Ferreira & Agel (Schmidt Valois) in a deal to combine their resources and expertise, to benefit clients and boost their international footprint. The strategic alliance will have a particular focus on the energy sector where both firms share significant international experience and capabilities. Paul Stewart, managing partner of Womble Bond Dickinson (UK), said: “This is an exciting development for us in the UK and internationally. Investing in our energy sector offering and making more of our international reach are two key parts of our strategy. “Few firms of our size in the UK can match our international network, with our colleagues in the US, strategic alliances in France and Germany, and our wider international reach through the Lex Mundi network. With market-leading credentials in energy and renewables projects both in Latin America and globally, Schmidt Valois will help us do even more for our clients.” WBD has high profile clients including Centrica, EDF Energy Renewables and National Grid and in the UK, the firm played a key role in the country’s first onshore wind farm project at Delabole and advised on the country’s largest onshore wind farm project at Whitelee. WBD also supported a pioneering battery storage M&A transaction, advising RES on the sale of the Port of Tyne 35MW project to the Foresight Group. Paulo Valois Pires, co-managing partner of Schmidt Valois, said: “We are all excited about our new collaboration, which is a great opportunity for clients in Brazil who wish to invest or are already investing abroad. This alliance also permits the integration of high-quality legal services in multijurisdictional operations involving Latin America.”

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Barclays and Natwest stock plunge is 'looming global recession' warning

2025-08-01 20:30:24

The FTSE 100's leading banks have dragged down the index in light of President Trump's tariff offensives, with experts cautioning that their losses might signal an impending global recession. Barclays saw its shares drop nearly five per cent in midday trading on Monday and has endured a nearly 20 per cent fall in the past five days, as reported by City AM. NatWest also experienced a dip of over seven per cent after the market opened, but later reclaimed some of its lost ground. By midday, it was down by one per cent. Susannah Streeter, money and markets chief at Hargreaves Lansdown, commented: "Banks are seen as barometers for economic health, and given the steep losses, red lights are flashing about a looming global recession." As of Monday, the FTSE 350 banking sector index had declined by two per cent. Before being hit hard by tariffs, this sector was the FTSE 100's second-best performer out of the other 39 sub-groups in February. In the last month, the index has shed close to 16 per cent of its value. Nevertheless, Lloyds registered a slight recovery on Monday, nudging up by 0.1 per cent at midday. Equity analysts Vivek Raja and Gary Greenwood from Shore Capital remarked: "Changes in economic activity levels could affect demand for credit and bad debt formation." They also noted that Asia-focused banks such as HSBC and Standard Chartered may bear greater impacts compared to largely UK-focused peers like Barclays, Lloyds, and NatWest. Raja and Greenwood have indicated that the moderation of interest rates and their future trajectory could affect lenders' net interest margins, a crucial measure of a bank's profitability from lending activities. "Increased market turbulence could dampen capital markets activity levels while potentially boosting market activity," the analysts further commented. Speaking to City AM, Greenwood suggested that domestic banks are likely to have corporate clients "that are directly exposed to tariffs". He added, "Banks are essentially just leveraged plays on the underlying economies in which they operate." For smaller and mid-cap banks, Raja and Greenwood foresee a lesser impact. They noted that Arbuthnot Latham, Paragon, and Vanquis are "domestically focused and therefore less at risk from the international trade fallout". Despite not experiencing losses as significant as their FTSE 100 counterparts, these smaller lenders have not been able to avoid the global sell-off.

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Chancellor Rachel Reeves' headroom shrinks as government borrowing soars

2025-08-13 22:46:06

Chancellor Rachel Reeves is facing a tightening fiscal space as government borrowing in February surpassed the Office for Budget Responsibility's (OBR) forecast, according to the latest figures. Reeves has consistently emphasised the importance of fiscal responsibility within the government's economic strategy, as reported by City AM. However, data from the Office for National Statistics (ONS) indicates that her financial leeway may be narrower than anticipated. The gap between revenue and expenditure hit £10.7bn in February, outstripping the OBR's earlier prediction of £6.5bn. Looking at the fiscal year up to February, the deficit reached £132.2bn, marking an increase of £14.7bn compared to the same period last year. At the close of February, the provisional ratio of net government debt to GDP was pegged at 95.5%. These statistics are likely to cause concern for Reeves as she prepares for the Spring Statement next week. In the upcoming Statement, the Chancellor is expected to announce significant changes to public spending to align with the government's new commitments to military funding. The government has dismissed the possibility of tax increases. Chief Secretary to the Treasury Darren Jones has suggested that the forthcoming Statement will address the issue of the inactive workforce. "We must go further and faster to create an agile and productive state that works for people," stated Jones. "That's why we're refocusing the public sector on our missions and, for the first time in 17 years, going through every penny of taxpayer money line by line, to make sure it is helping us secure Britain's future through the Plan for Change." KPMG economist Dennis Tatarkov said the data "raised the risk" of the Chancellor missing targets. "There may not be much room for the Chancellor to defer major tax and spending decisions to the Autumn Budget. "Borrowing in February was some £4.2bn more than the OBR's October prediction, and more bad news came in the revisions to past data, with January's surplus revised down by £2.1bn.

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US dollar on the longest losing streak since 2015 as de-dollarisation fears grow

2025-08-03 07:54:58

The US dollar has plummeted 0.7% today, marking its fifth consecutive day of decline, as the market reevaluates the currency's standing in the global economy. The DXY index, which monitors the dollar's value relative to a basket of currencies, sank to its lowest level in three years during trading today, as reported by City AM. Since the beginning of April, which Trump hailed as 'Liberation Day,' the dollar index has dropped by more than 4% as investors offload their US assets amid concerns over the country's growth prospects. In a statement on Friday evening, President Trump emphasized that the dollar would invariably remain "the currency of choice" and asserted that "if a nation said we're not going to be on the dollar, I would tell you that within about one phone call they would be back on the dollar". However, Michael Brown, senior research strategist at Pepperstone, cautioned about the risk "of moving away from a decades-long period of dollar and US hegemony." Brown acknowledged that currently, there is no alternative to the dollar as a reserve currency, and the tariffs that shook confidence in the dollar last week have been temporarily suspended. "However, the incoherence with which economic policy is being made, coupled with the credibility erosion caused by president Trump's constant u-turns and 'governing by tweet' modus operandi, is clearly creating more than a few jitters," the strategist noted. Brown conceded that there was no alternative to the dollar as a reserve currency for now and that the tariffs which shook confidence in the dollar last week had been put on hold for the time being. "Fundamentally, even though the ridiculous 'reciprocal' tariffs have been paused (for now), the prospect of those levies being imposed again will continue to linger. "De-dollarisation is now a real, and frankly scary, prospect," Brown commented. The US dollar took a hit due to imposed China tariffs, according to insights shared on Friday by ING analysts. They indicated that Trump's escalating tariffs on China contributed to the dollar's sharp decline. Since the US may find it challenging to quickly replace many of the imports from China, this could lead to heightened inflationary risks for the American currency. The euro has emerged as the biggest winner from the dollar's depreciation, achieving a five percent increase since 'Liberation Day'. It is perceived widely as one of the few options for investors moving away from US assets. ING analysts observed that officials at the European Central Bank appear to be promoting the euro as a robust alternative to the US dollar right now.

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Fintech giant Clearbank reports first full-year results as it expands across Europe

2025-08-12 01:57:42

London-based fintech firm, Clearbank, has announced its full-year results at the group level for the first time, following its expansion across Europe. The company, which facilitates real-time clearing and embedded banking, reported a 63% increase in its fee-based income to £53.3m, as reported by City AM. Total deposits managed by the fintech reached £10.8bn, marking a 77% increase from 2023. However, despite these positive figures, Clearbank recorded a pre-tax loss of £4.4m on an adjusted basis at the group level. This loss was attributed to costs associated with its European expansion and the implementation of its new group structure. Nevertheless, the UK arm of the business maintained profitability for the second consecutive year, posting a pre-tax profit of £9.9m. Speaking to City AM, Clearbank's CEO Mark Fairless expressed satisfaction with the company's performance in 2024. He explained that the growth in fee income outpacing interest income was an "intentional" strategy, given the fluctuating macroeconomic climate and declining interest rates. With Clearbank now operating in 11 European markets and having received its European banking license in July, Fairless stated that growing the European bank is currently the main focus. He added: "Once we're more progressed with that, we're turning our attention to the US, which would be the next leg of the strategy." While the fintech is experiencing rapid growth, Fairless stated: "We're not focused on necessarily a unicorn crown." He emphasised that building a sustainable business and supportive infrastructure remains their top priority. When questioned about a potential IPO for Clearbank, Fairless responded: "All options are on the table." However, he couldn't commit to a specific listing, stating they would "take the call closer to the time". "So obviously, the vast majority of our presence is in the UK at the moment, that will balance out to Europe and then we'll enter the US market." "And then I think we'd look at what option would fit us best." Fairless also praised the thriving fintech climate in the Square Mile. "There's clearly a competitive market in the UK for that and we I think its recognised as a differentiator in the UK." He continued: "What's important is that we are supported in that kind of growth and in that sector and I think there's lots of conversations going on on that front."

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Natwest partners with OpenAI as FTSE giant scales up tech

2025-08-20 21:26:03

NatWest has revealed a new focus on "bank-wide simplification" through a partnership with OpenAI, announced this Thursday. The FTSE 100 lender is set to optimise customer experiences and enhance operational productivity by harnessing artificial intelligence, as reported by City AM. In this groundbreaking move, the bank will incorporate "some of the latest and most powerful developments in generative AI", gained via access to OpenAI's most advanced tech and insights. Whilst rolling out these innovations, NatWest affirms it will adhere to its Artificial Intelligence & Data Ethics Code of Conduct to guarantee the use of AI will "educate, protect, and empower its customers and colleagues." Last year, NatWest initiated its AI journey with the introduction of virtual assistants Cora+ and Ask Archie+. Joining forces with Lloyds Banking Group, which also recently stepped up its AI game with plans for its 'Centre of Excellence for AI' in 2024, NatWest aims to redefine banking in the digital age. OpenAI’s Commercial Lead Giancarlo Lionetti stated the partnership's preliminary phase would bring about "tangible benefits" for both NatWest's clientele and its workforce. Lionetti further commented on the ambitious collaboration, noting that it accentuates NatWest's pledge to pioneering top-tier digital banking experiences. Angela Byrne, Natwest's retail banking chief executive, stated: "Around 80% of our retail customers bank with us entirely digitally, which is why continually innovating to deliver the best digital experience possible is a non-negotiable." "GenAI is already transforming how we interact with our customers, both digitally and by better enabling colleagues." "Our work with OpenAI will take this even further through redefined digital experiences and helping to offer even better protection from threats like fraud and financial crime." Scott Marcar, Natwest's group chief information officer, commented: "Our strategic focus on bank-wide simplification continues to make life easier for both our customers and colleagues." "With the needs of customers evolving at an extraordinary pace, it's our role to be a trusted partner and meet their expectations faster and more effectively than ever before."

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MS Amlin joins EBRD scheme to boost Ukraine SMEs with €1bn reinsurance cover

2025-08-27 07:43:15

Lloyd's reinsurer, MS Amlin, has secured a reinsurance scheme that could provide up to €1bn (£830m) in annual coverage for Ukraine SMEs. The scheme is designed to revitalise Ukraine's war risk insurance market by enabling local insurers to offer inland cargo and transport cover for SMEs, as reported by City AM. Since the conflict began in February 2022, the country's insurance sector has struggled to offer commercial war risk cover. In December, the European Bank for Reconstruction and Development (EBRD) and insurance giant Aon made headlines for creating the Ukraine Recovery and Reconstruction Guarantee Facility (URGF). This facility is designed to support global reinsurance companies with a guarantee covering certain war-related risks underwritten by local Ukrainian insurers. London-based MS Amlin was the first international reinsurance partner to join the platform. The reinsurer has now committed €80m (£67m) in reinsurance capacity, rising to €110m (£92m) over five years to support war risk policies underwritten by three Ukrainian insurers: INGO, Colonnade, and UNIQA. As an EBRD guarantee backs the facility, MS Amlin can transfer the exposure off its balance sheet. The UK, France, Norway, and the Taiwan Business-EBRD Technical Cooperation Fund initially supported the facility. The European Union and Switzerland have also pledged contributions, with further donor support expected to expand the EBRD guarantee over time. Martin Burke, MS Amlin's chief underwriting officer, commented on the scheme: "Expanding access to insurance is critical for supporting Ukraine's SMEs and overall economy." "By addressing a gap in reinsurance, this scheme will help boost business confidence, protect supply chains, and drive economic growth. The facility highlights how specialist insurers can unlock investment in high-risk regions and demonstrates the key role of public-private partnerships in rebuilding Ukraine."

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Saga reports surge in profits as demand for cruises among over-50s soars

2025-08-28 05:56:16

Saga, the travel and financial services provider for the over-50s demographic, has announced profits surpassing market predictions, fuelled by a surge in cruise demand. The firm revealed this morning that its underlying pre-tax profit for the year ending January 31 stood at £47.8m, marking a 25% increase year on year, as reported by City AM. Annual revenue rose by 4% to reach £588.3m, while net debt decreased by 7% to £590.5m. Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 18% to £137.1m. CEO Mike Hazel attributed this progress to "[Progress] was driven by the strength of our Travel businesses, with especially high levels of customer demand for our differentiated ocean and river cruise offers." Over the past year, Saga announced a 20-year partnership with Belgian insurance titan Ageas for motor and home insurance, which resulted in Saga's price-comparison website, pricing, claims handling, and customer service activities being taken over by Ageas. Additionally, Saga agreed to sell off its insurance underwriting business. According to Hazel, these strategic decisions, coupled with robust trading performance, enabled Saga to refinance its long-term corporate debt, replacing its 2026 debt maturities with new long-term credit facilities. "The new facilities provide us with significant financing headroom and flexibility as we move forward," Hazell added. "Following the completion of these important objectives, our focus has shifted to the long-term growth plans for the Group, building on our established businesses by continuing to explore complementary partnerships and unlocking new avenues for growth beyond our current business and product lines," he added.

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Newcastle Financial Advisers snaps up County Durham company as owners retire

2025-08-07 02:15:43

The financial advice arm of Newcastle Building Society has snapped up a County Durham business as part of its growth strategy. Newcastle Financial Advisers Ltd has acquired Chester-le-Street based Orchard Financial Management, a deal which adds around 200 customers to the business, following the founders’ retirement. The Wallsend based business provides advice on investment, retirement, inheritance tax planning and protection advice through the Society’s network of branches across the North East, Cumbria and North Yorkshire. The firm said the addition of Orchard gives the new customers access to face-to-face financial advice services throughout the mutual’s network of 32 locations. Graeme Leigh founded Orchard Financial Management in 1998 to provide advice on investments and pensions as well as protection and he has grown the business through word-of-mouth recommendations alongside his wife Michele. The pair have now decided to retire, saying they were drawn to Newcastle Financial Advisers because of its commitment to building long-term relationships with customers, and expertise in the market. Mr Leigh said: “The top priority for Orchard Financial Management was to find the right and trusted home for our clients. Newcastle Financial Advisers has a fantastic reputation and we’re impressed by its strong high street presence both in County Durham and throughout the North East, North Yorkshire and Cumbria, which will help to ensure a smooth transition and integration of our local client base.” Iain Lightfoot, managing director of Newcastle Financial Advisers, said: “We’re pleased to be able to welcome Orchard Financial Management’s customers to Newcastle Financial Advisers Limited. Graeme’s focus on fostering long-term relationships based on a foundation of trust is one that very much aligns with our own purpose, and the acquisition of his business therefore feels like an organic fit for Newcastle Financial Advisers.

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Banks face turmoil as HSBC and Barclays shares plummet amid escalating global trade war

2025-08-09 16:03:11

The 'Big Five' banks on the FTSE 100 were engulfed in losses on Wednesday as tensions escalated in the global trade war. China retaliated by hiking its tariff on US goods to 84 per cent, a response to President Donald Trump's 50 per cent levy that came into effect today, pushing China's total import tax to a staggering 104 per cent, as reported by City AM. HSBC shares took a hit of over four per cent due to Beijing's countermove. Barclays and Standard Chartered also felt the heat, with their shares dipping nearly five per cent. Stocks had already been under pressure in early trading as Trump showed no intention of retreating from his tariff strategy. Domestically-focused lenders Lloyds and Natwest saw their shares fall nearly three and four per cent respectively. Russ Mould, investment director at AJ Bell, commented: "Yesterday's fragile recovery in stocks has been shattered by renewed selling as reciprocal tariffs on what the Trump administration regards as the 'worst offenders' comes into effect." "Investors had initially taken some positives from a willingness in the White House to negotiate with Japan and Israel but an escalation with China triggered another sell-off on financial markets." Bloomberg calculations on Tuesday revealed that more than $700bn (£546bn) of global bank stocks' market value has evaporated since Trump's 'Liberation Day.' HSBC, with its Asia-centric operations driving losses, has alone seen almost $30bn (£23bn) wiped off its value. Britain's prime lending institutions are scheduled to unveil their half-year financial reports towards the end of July, a period that may bring unwelcome news to investors as they absorb the repercussions. Shore Capital's equity analyst Gary Greenwood commented on the anticipated content of the reports, indicating they are expected to mirror "volatility in capital markets". He elaborated: "IPO's that were going to happen, impact in market related activity, impact in wealth management areas – that's where you'll feel it first." Greenwood also predicted lenders' future guidance would likely suffer due to tariffs. He explained further, saying: "On an accounting basis, banks might start to add a bit to their provisions." "More uncertainty could make them more cautious about lending and risk appetite could change to not push as hard in terms of growth." Such developments pose additional challenges for Chancellor Rachel Reeves, who has been actively advocating for banking leaders to help bolster growth within the UK.

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HSBC and Standard Chartered shares plummet as 'outsized' tariffs bite

2025-08-04 15:51:51

Shares in banking behemoths HSBC and Standard Chartered have suffered a sharp decline amidst escalating global trade tensions. In early Monday trading, HSBC's shares dipped nearly three per cent, bringing its losses over the past five days to a staggering 15 per cent, as reported by City AM. Standard Chartered saw an even steeper fall of nearly four per cent, with its five-day losses approaching 20 per cent. The banks, which both have significant operations in Asia, are feeling the impact of hefty tariffs imposed by US President Donald Trump on Asian economies. China has been hit with a new 34 per cent tariff, raising its total import tax to 54 per cent following Trump's 'Liberation Day' speech, where he increased the levy from an earlier 20 per cent. In retaliation, China imposed a 34 per cent reciprocal tariff on US goods, criticising Trump's tactics as "inconsistent with international trade rules". Additionally, Taiwan received a 34 per cent tariff and Vietnam was burdened with a 46 per cent levy. Financial analyst William Howlett from Quilter Cheviot highlighted that banks carry some of the "biggest risks" amid the intensifying trade war. He commented: "Fundamentally, banks are levered plays on the economies in which they operate." Given the severe tariffs targeting Asian economies, Howlett noted it's no surprise that "the Asian banks (HSBC and Standard Chartered) have sold off the most." John Cronin, the founder of SeaPoint insights, pointed out that HSBC and Standard Chartered are more vulnerable than their UK counterparts to tariff issues "given their dependence on global trade glows and their presence in jurisdictions that will be subject to higher tariffs than the UK." HSBC stands as one of the top international banks in Asia, with its origins dating back to Hong Kong and Shanghai, and it covers various business segments in the region such as retail banking, wealth management, and commercial banking. Standard Chartered primarily targets emerging markets across Asia, Africa, and the Middle East, with a particular emphasis on Asia's burgeoning middle class in nations like India, China, and Indonesia by providing an array of retail services, including savings and checking accounts.

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Wise forecasts robust growth with 21% increase in active customers and £1.4bn income

2025-08-01 12:43:15

Shares in global fintech company Wise saw a six per cent increase in early trading today, following the release of preliminary figures for its current financial year on Thursday. The firm is set to provide further updates during its capital markets day. The presentation will also include updates on the current financial year, with full results due to be posted on June 5, as reported by City AM. Wise, which specialises in facilitating easy international money transfers for consumers, anticipates a 21 per cent growth in active customers to 15 million and a 16 per cent increase in underlying income. Based on these projections, the fintech firm expects to generate an income of £1.4bn in the current year. However, it predicts a one per cent drop in its profit margin. The money transfer company forecasts an underlying income growth of 15 to 20 per cent in the 2026 financial year, with pre-tax profit margins aligning with top estimates. Wise has also revealed plans to dilute its Employee Benefit Trust share purchase programme to prevent shareholder dilution from historical stock-based compensation (SBC) grants, which equate to around 25 million shares. The fintech firm reiterated its listing change following the Financial Conduct Authority's reforms to the UK listing regime in 2024. Wise's listing was moved to the Equity Shares Category in July 2024. Wise made its debut on the London Stock Exchange on July 7, 2021, and over its 14-year history, it has transferred over £0.5tn across borders. In its January quarterly trading update, the company disclosed that cross-border volumes had surged by 24 per cent to £37.8bn. The firm's accounts also saw increased adoption, driving a 39 per cent rise in card and other revenue.

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Xeinadin acquires south Wales accountancy firm Curtis Bowden & Thomas

2025-08-23 07:24:19

Acquisitive professional services firm Xeinadin has acquired south Wales accountancy firm Curtis Bowden & Thomas. The value of the deal for the firm, which has offices in Tonypandy and Bridgend, has not been disclosed. Established in 2003, Curtis Bowden & Thomas provides a range of general accounting and taxation services to local businesses. The 22-strong team will continue to operate from their offices with the support and resources of being part of Xeinadin’s network. The firm will continue to trade as Curtis Bowden & Thomas. Robert Lloyd, Stephen Smith, and Stephen Davies partners with Curtis Bowden & Thomas, said: “We’re excited to join Xeinadin and continue delivering the high-quality service our clients expect. South Wales faces distinctive challenges, from economic regeneration to skills shortages, and we’re confident that being part of Xeinadin will improve our ability to support local businesses. With access to a wider network of expertise and resources, we’ll be better equipped to help our clients navigate these challenges and drive sustainable growth.” Last year Xeinadin acquired Carmarthen-based accountancy firm Clay Shaw Butler and Bridgend-based Clay Shaw Thomas. Derry Crowley, chief executive at Xeinadin, said: “Curtis Bowden & Thomas has built a strong reputation in South Wales by providing businesses with the support they need to thrive, despite the unique economic challenges of the region. With a deep understanding of the local business environment, their expertise aligns well with Xeinadin’s commitment to supporting growth in Wales and we’re excited to welcome them to the team.”

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Investors should 'buy' these two housebuilders ahead of Spring Statement, broker says

2025-08-26 15:51:12

Investment bank Jefferies has recommended investors to 'Buy' shares in UK housebuilders such as Persimmon and Taylor Wimpey, ahead of the upcoming Spring Statement this week. Chancellor Rachel Reeves is scheduled to present her Spring Statement later this week. As she is committed to only one major fiscal event, it was initially intended as an update rather than a budget, as reported by City AM. However, significant policy updates are widely anticipated from the Chancellor's speech, potentially extending into housing policy. "With frequent and recent reiterations of the government target to construct 1.5m homes over the term of parliament, we believe there is potential for further support for the housebuilding sector to be unveiled," stated Jefferies analysts in a research note today. The previous year witnessed the lowest number of new homes built in a twelve-month period since 2017 (excluding the pandemic), with only 217,911 homes completed. This figure contrasts with the government's average target of 300,000 homes per year to reach its 1.5m goal. "At this stage we believe neither forecasts nor valuations include any upside from demand-side measures, and we would look to own UK housebuilders into this event," said Jefferies analysts. Jefferies currently rates every UK-listed builder, including Persimmon and Taylor Wimpey either a Hold or Buy, while also rating infrastructure firms that focus on construction, like Balfour Beatty, a Buy. Analysts have highlighted that the Help to Buy scheme peaked in the 2018-19 period, facilitating over 50,000 new-build home purchases. The programme was then modified in 2021 to cater exclusively to first-time buyers and include regional pricing caps, which led to a reduction in plan-related purchases to around 30,000 homes. According to the sector, Taylor Wimpey would stand to gain from any reintroduction of Help to Buy support measures announced in the Spring Statement. "A key barrier for homebuyers is actually rooted in the very start of the process: property development," said Tony Hall, head of business development at Saffron for Intermediaries. He suggested that standardizing planning processes across local councils could stimulate the housing industry by eliminating inconsistencies. However, despite these potential benefits, Hall cautioned that current reports suggest it is "unlikely" there will be significant updates in the forthcoming Spring Statement.

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TSB appoints new CEO amid parent company's uncertain future

2025-08-22 07:14:53

UK retail bank TSB has declared that Marc Armengol is now at the helm as its new chief executive officer. Armengol, who had previously served as corporate strategy director at TSB, was selected for top leadership duties back in November 2024, as reported by City AM. His appointment follows the retirement of former head Robin Bulloch. Before rejoining TSB, Armengol worked at the UK bank’s Spanish owner Sabadell in 2022. Sabadell, which is based in Barcelona and acquired TSB at a price of £1.7bn in 2015, has since been subject to hostile bids from competitors. BBVA, another banking heavyweight in Spain, has recently unsettled the waters with its €12.28bn (£10.3bn) offer to purchase Sabadell, introducing a period of speculation just as Armengol takes control of TSB. In financial achievements, TSB touted a banner year this February when it reported pre-tax profits reaching a height of £290.4m. Such impressive figures represent a 22 per cent surge compared to the preceding year, crowning it the most profitable annum since the brand's revival on the high street in 2013. The bank's financial success has been partly attributed to stringent cost management in a fiercely competitive mortgage landscape, reflected by a drop in operating expenses by 3.6 per cent to £821.9m. TSB's board chairperson, Nick Prettejohn, expressed optimism regarding Armengol's ascendancy: "TSB continues to build on its position as an important retail bank that's delivering on its money confidence purpose and I'm delighted that Marc will now return to lead the business." He added to the commendations stating, "Not only does Marc have extensive experience in banking at the highest international level – but he has been at the heart of TSB for several years." TSB chairman, said: "I have no doubt that we will benefit hugely from Marc's strategic vision and ambition for the business; his expertise across retail banking and technology; and his absolute focus on delivering even more for our customers."

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Bank of England contacts lenders over Trump's tariffs as Reeves says 'banking system is resilient'

2025-08-22 16:46:28

The Bank of England has been surveying lenders about their clients' financial stability in the wake of the turmoil caused by President Trump's aggressive tariff policies that have disrupted financial markets. The central bank requested details concerning market liquidity and any issues their clients might be experiencing with funding, as reported by the Financial Times, as reported by City AM. The Prudential Regulation Authority, tasked with overseeing banks, building societies, credit unions, insurers, and key investment firms, is actively engaged with lenders to address client concerns. Sources familiar with the discussions informed the FT that topics included market liquidity and worries over hedge fund clients potentially failing to meet equity requirements on margin accounts. In a recent session at the House of Commons, Chancellor Rachel Reeves declared that she had spoken with the Bank of England's governor, who "confirmed that markets are functioning effectively and that our banking system is resilient." She also mentioned her forthcoming meeting with U.S. Treasury Secretary Scott Bessent to discuss possible relief from President Trump's imposed tariffs. Over the weekend, global bank leaders took part in a conversation orchestrated by the Bank Policy Institute, an event reported by Sky News, where US bank executives shared their perspectives on the Trump administration's trade policy with their international colleagues. Among the attendees were prominent banking executives, including Brian Moynihan from Bank of America, CS Venkatakrishnan from Barclays, Georges Elhedery from HSBC, and Jamie Dimon from JP Morgan. Dimon expressed concerns about the impact of tariffs on the long-term economic alliance of the United States in a letter on Monday, stating: "I am hoping that after negotiations, the long-term effect will have some positive benefits for the United States." In response to the situation, a spokesperson for the Bank of England mentioned: "It is standard practice for us to implement close monitoring of market liquidity conditions at times of greater volatility." On Wednesday, the Bank of England's Financial Policy Committee is scheduled to release the minutes of its latest meeting, providing insight into its perspective on the financial market.

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Barclays shares bounce back after bruising spell as FTSE 100 recovers from chaotic week

2025-07-29 19:39:32

Barclays' shares made a recovery on Tuesday morning, following a difficult week marred by the impact of President Trump's aggressive tariff measures. The FTSE 100 bank had struggled in the aftermath of the trade dispute, as reported by City AM. The lender experienced a substantial decline of nearly ten per cent after China retaliated with its own set of tariffs against the US. Barclays was one of the major banks, alongside HSBC and Standard Chartered, leading declines amongst top fallers in the blue-chip index as markets floundered. According to Russ Mould, investment director at AJ Bell, "In Barclays' case, its investment bank is heavily geared into how the financial markets performed." He added, "Tumbling, or volatile, markets are likely to deter merger and acquisition activity and also new market floats, both areas where there are fat fees to be made." Despite the previous turbulence, Barclays witnessed a near three per cent uptick as the FTSE 100 stabilised on Tuesday, while HSBC and Standard Chartered continued to wrestle with losses. John Cronin, founder of SeaPoint insights, highlighted that, "Barclays has seen more significant selling pressure than UK domestic-focused peer banks in recent days." Meanwhile, Lloyds and Natwest, which focus predominantly on domestic markets, have managed to sidestep steep losses. Lloyds saw a rise of over two per cent and Natwest edged up by one per cent during early trading. "This is a function of its reliance on cyclical Investment Banking revenues as well as its significant exposure to the US consumer by virtue of its US cards business." Mould commented that while Barclays and its counterparts are considered "geared plays on economies and financial markets on the way down, they are likely to be seen as geared plays on them if they recover. "After its fall, Barclays trades on just 0.7 times historic book value and it is the cheapest of the Big Five FTSE 100 banks on this measure," he continued.

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Neil Woodford's old trust ups Revolut stake by 85%

2025-08-01 11:38:04

A trust previously managed by renowned stockpicker Neil Woodford, now under Schroders, has increased the value of its stake in fintech firm Revolut by 85 per cent. This suggests a valuation of $48bn (£37.1bn) for Revolut, surpassing its $45bn valuation from last summer but falling short of the $60bn target reportedly set for a future float. The Schroders Capital Global Innovation Trust's investment in Revolut has soared from £5.4m two years ago to £14.6m today. However, the rest of its portfolio has experienced a significant decrease in value. In its annual results released today, the Schroders trust reported a 21.2 per cent decline in asset value over the past year, with its share price falling by 24.9 per cent., as reported by City AM. Formerly known as Woodford Patient Capital under Woodford's management, the trust's shareholders voted overwhelmingly last month for it to wind down. "Following the shareholders' vote in favour of the managed wind-down of the company, our strategic focus has shifted to an orderly realisation of the company's assets over a reasonable timeframe," stated the trust's chair. Public holdings in some of Woodford's preferred stocks, such as Oxford Nanopore and BenevolentAI, accounted for 97 per cent of the trust's valuation drop. Meanwhile, its stake in Reaction Engines was written off completely after the company went into administration. However, the trust's share price soared by 30 per cent in a single day earlier this month after it announced that its holding in Swiss biotech firm Araris Biotech was poised to be acquired for $400m plus additional contingent payments. This implies that its stake in Araris could be valued at as much as £19.5m, compared with a book value of £2.8m at the end of last year.

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Investors pile into gold as Trump's tariff turmoil continues

2025-08-19 00:57:55

The price of gold has soared to another record peak, fuelled by concern over President Donald Trump's tariff strategy and a weakening dollar, leading investors towards the traditional sanctuary of precious metals. Gold's value ascended 1.5% to surpass $3,200 (£2,451) per troy ounce on Friday – an unprecedented level – as Asian markets stumbled due to the ongoing repercussions of President Trump's deferred tariff measures, as reported by City AM. Despite its status as a refuge for capital during turbulent times, the precious metal had initially been swept up in a severe sell-off amid tariff-driven market chaos. Gold spot prices experienced a remarkable increase of over 30% since the beginning of 2024 but witnessed a downturn from $3,166/oz to $2,973/oz from April 2 to April 6. Market experts believe that investors were compelled to sell their gold assets to cover margin calls from creditors. Pepperstone analyst Michael Brown pointed to the removal of the "risk premium" associated with gold after its exclusion from the postponed tariffs Trump labeled ‘Liberation Day’ as the cause of the brief dip. Nevertheless, from April 6 onward, gold has bounced back robustly, registering its most significant bi-day surge since 2020 and reaching a new all-time high. Market strategists have attributed this latest rally to the faltering US dollar – which renders the metal more accessible to buyers using other currencies – and predictions that central banks might accelerate interest rate cuts more than previously presumed to prevent an economic deceleration. This week has seen the dollar descend to its lowest level against major global currencies in a decade. Dominic Schinder of UBS Global Wealth informed Bloomberg TV that further rate cuts from the Federal Reserve would provide another "leg up" for gold, as the yield on holding cash – a common refuge amid prevalent bearish sentiment – is lower. This rally boosted London-listed gold miners, leading the FTSE 100 higher on Friday morning. Fresnillo saw an increase of approximately 5.9 per cent, while Endeavour experienced a surge of over 4.5 per cent in early trades. Brokers at Peel Hunt upgraded precious-metal-miner Fresnillo from 'hold' to 'add' in a note, suggesting that sustained high gold and silver prices would generate more cash flow at the commodities giant. "[The first quarter] saw gold and silver prices well ahead of expectations on rising market uncertainty," they noted. "The extreme US tariff announcements simply added to this uncertainty.

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FTSE 100 opens lower as global markets panic - but gold hits new all-time high

2025-08-09 13:31:36

London's FTSE 100 index dipped by 0.7% at the start of trading on Monday, while the FTSE 250 experienced a steeper decline of 1.28%. This downward trend followed a sharp drop in Asian markets overnight, as investor confidence took a hit ahead of the next round of Trump tariffs, as reported by City AM. In Japan, the Nikkei 225 plummeted by 4.1% to 35,615.15, while Hong Kong's Hang Seng fell by 1% to 23,200.65. South Korea's Kospi also took a hit, sinking by 2.6% to 2,492.49. The Australian ASX 200 wasn't immune to the downturn, declining by 1.6% to 7,856.80. Meanwhile, Thailand's SET index dropped by 0.9% following a powerful earthquake in Myanmar. As investors sought safer bets, gold prices surged past $3,100 to a new record high. According to Susannah Streeter, head of money and markets at Hargreaves Lansdown, "The last day of March is spring-loaded with uncertainty on financial markets." She attributed the market unease to concerns over the impact of Trump's tariffs, which have been amplified and are causing sharp market movements. Streeter warned that London-listed stocks would not be immune to the tariff fallout, with the FTSE 100 set for a challenging start to the week as investors brace for the potential effects of widespread tariffs. The "stampede into safe havens" like gold, Streeter said, was a result of investors seeking ways to "shelter their money, amid a high stakes trade game." Ahead of Trump's so-called 'Liberation Day' on 2 April, the markets are experiencing a fresh round of turbulence. Starting Wednesday, new 25 per cent tariffs on all automotive imports into the US will take effect. Shares in leading Japanese car manufacturers Toyota, Honda and Nissan all fell following Trump's announcement of the levies last week. The latest trade taxes imposed by Trump have ignited fears of stagflation, with the US economy preparing for stagnant growth coupled with increased inflation. In an interview with NBC News on Sunday, the US president stated he "couldn't care less" if his tariffs cause car prices to rise. He added: "People are going to start buying American-made cars," Analysts are warning that the risk of a US recession has significantly increased due to the ongoing trade war. Goldman Sachs has forecasted that aggressive tariffs will essentially halt US economic growth, with inflation expected to reach 3.5 per cent – considerably above the Federal Reserve's 2 per cent target. The investment bank is predicting a 35 per cent chance of inflation within the next year.

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Bank of England maintains interest rates at 4.5% amid global trade concerns

2025-08-04 18:25:24

The Bank of England has maintained interest rates at 4.5 per cent amid growing concerns over a global trade war. Swati Dhingra, an external member of the Monetary Policy Committee (MPC), was the only one who voted for a 25 basis point reduction, as reported by City AM. This decision marked a divergence from Catherine Mann, with whom Dhingra had previously voted for a significant 50 basis point cut in February. The Bank's economists remain pessimistic about UK growth due to President Donald Trump's extensive tariffs, including those on steel and aluminium. The Bank also reiterated its February forecast that inflation could reach a peak of 3.75 per cent this year. Chancellor Rachel Reeves acknowledged the government's responsibility to mitigate inflation, stating: "I'm fighting every day to put more money in the pockets of working people to deliver our Plan for Change," Susannah Streeter, Hargreaves Lansdown's head of money and markets, warned that price increases are likely to continue. She said: "Pay growth remains strong, with vacancies rising and so there is concern that inflation will stay stubborn – it's forecast to rise to 3.75% in the third quarter of this year before falling back – just as the economy has gone into reverse." Streeter added that stagflation has emerged and does not seem to be receding soon, which will complicate decision making. However, she suggested that concerns about growth may soon start to outweigh worries about persistent prices. Inflation reached three per cent in January, with the upcoming figures for February's price increases due to be announced next Wednesday, just before Chancellor Rachel Reeves delivers her Spring Statement. The Office for National Statistics (ONS) released figures this morning that serve as a stark caution to those tracking inflation. The wage growth recorded at 5.9 per cent from November 2024 to January 2025 is expected to put additional pressure on inflation rates. Ruth Gregory, an economist at Capital Economics, remarked earlier today that these figures have placed the Bank of England in a "tricky position." The Bank's regional Agents have reported that economic activity remains muted, citing poor consumer and business confidence as the primary obstacle to growth. Despite many City analysts predicting that the Bank of England would maintain its interest rates, there is a consensus among economists and business leaders that a rate cut in May could be more probable. Setting a precedent, the US Federal Reserve decided to keep its interest rates steady last night. The Fed's decision to hold rates at around 4.5 per cent was influenced in part by President Donald Trump's aggressive tariff policies. Additionally, the Fed has downgraded the US economic forecast, reducing its growth prediction from 2.1 per cent to 1.7 per cent and suggesting that inflation might near 3 per cent.

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Firms report negative impact on productivity from staff leaving the workforce shows PwC research

2025-08-21 01:00:40

The majority (63%) of businesses have identified a negative impact on productivity and financial performance from an increase in people leaving the workplace and becoming inactive. New research from professional advisory firm PwC, shows that mental health (70%) is the key driver, with more than half of employers reconsidering the support they provide to stop talented people from leaving. The research, which PwC conducted with FocalData, also suggests economic inactivity will continue to grow, with 10% of workers actively considering leaving work for an extended period. A further 20% have considered leaving in the past year (spiking to 25% for 18-24 year olds), with concerns about mental health the most cited factor. Latest figures from the ONS shows that Wales has 503,000 of working age adults (26%) who are economically inactive and not seeking employment. Stuart Couch, market senior partner for PwC in Wales, said “Productivity is one of the most significant challenges facing the Welsh economy today; our output per hour is the lowest in the UK, 17.3% below the average. As productivity growth directly leads to economic growth, it’s also one of the best indicators of future prosperity. “Our research recognises that economic inactivity represents underutilised capacity in our economy. If the Welsh public sector and business ecosystem can better support people who want to work, but who are unable to due to physical and mental health issues, caring commitments or a lack of qualifications, we all stand to benefit from the long-term economic growth associated with a bigger and healthier workforce. “Given the significant structural changes as South Wales transitions to a greener economy and away from its heavy manufacturing roots, transition boards and investment bodies will have a key role to play in addressing some of the challenges leading to economic inactivity by helping people achieve relevant skills and qualifications, in turn building self-esteem.” The research also shows that amongst the economically inactive, 31% said they did not anticipate becoming inactive. Of those who reached out to their employer, most respondents had not yet made a final decision to leave work (only 18% had). Crucially 58% said their employer could have done something more to help them. A significant number reached out to no-one at all. The first time a significant proportion (19%) of firm realised someone was going to leave was when the person handed in their notice. For people currently considering leaving work for an extended period, the key reasons are ‘mental health’ and ‘unfulfilling work’ - with mental health being the most important of the two for people under the age of 35. Indeed people aged 18-25 are 1.4 times more likely to cite concerns with mental health compared with older respondents. However, the research points to a mismatch between what employers think would help and what individuals say they need. Many employers highlighted benefits such as company car schemes rather than culture or health support. A large proportion of economically inactive people said they were interested in returning to work full or part-time (43%, versus 31% who said they were not interested). The most frequently cited barriers are a long-term mental health condition (48%), long-term physical condition (39%) and low self-esteem and confidence (37%). Over half of employers (57%) admit to being worried about recruiting someone who has been inactive, with more than a third (37%) associating inactivity with people “gaming the system”. However, businesses believe amongst the biggest barriers to people returning to work are skills and education gaps, alongside expectations around flexibility and the business’ ability to accommodate mental and physical health needs. Katie Johnston, local and devolved government leader, at PwC, said: “Our research into the systemic issue of people leaving the workforce and being unable to return to work pulls no punches in setting out the scale of the challenges facing individuals, government and businesses. “If we are serious about reducing economic inactivity and contributing to the Government’s ambition of economic growth, then we need joined-up action not only helping people back into work, but more importantly stemming the flow of people out of the work.

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Former Bank of England policymaker says 'hold' rates at 4.5 per cent in May

2025-08-08 14:21:03

Former Bank of England rate-setter Jonathan Haskel has indicated that current high inflation levels warrant maintaining interest rates at 4.5 per cent in May. Investors and analysts, anticipating a cut in interest rates next month to address concerns over low growth, are pricing in up to three additional reductions by year's end, as reported by City AM. However, Haskel, who served on the Bank's Monetary Policy Committee (MPC) until August of the previous year, argued for a "wait and see" stance despite potential deflationary impacts from President Trump's tariffs. In conversations with City AM, Haskel remarked: "Core inflation in the UK, dominated by domestically generated service sector inflation, is above target-consistent levels," and stated, "Thus, and given the uncertainty around what the enduring tariff level will be, I would favour a 'wait and see' policy and so hold UK rates at the next meeting." February saw inflation reach 2.8 per cent, spurred by a five per cent surge in services prices, well above the Bank of England's consumer price inflation (CPI) aim of two per cent. Haskel acknowledged that the comprehensive tariffs would put a damper on economic activity and inhibit growth as global markets adjust to open trading with the US. He also agreed with current MPC members Swati Dhingra and Megan Greene that such tariffs would exert a "deflationary for the UK economy" effect on the UK economy. According to Haskel, the influx of cheap goods from countries like China, which is subject to tariffs exceeding 100%, would likely drive prices down. Nevertheless, he maintained his stance. These comments offer a glimpse into the thought process of the more hawkish MPC members, who are growing increasingly concerned about persistent inflation. Clare Lombardelli, a current MPC member, expressed uncertainty about the impact of Trump's tariffs on inflation, citing the potential for retaliatory measures from other countries. Haskel's views diverge from those of former deputy Bank governor Charlie Bean, who advocated for a rate cut of up to 50 basis points. David Blanchflower, a former rate-setter, even suggested convening an emergency meeting before May 8. Kallum Pickering of Peel Hunt, who typically takes a hawkish stance on monetary policy, argued that the Bank has an "easy" decision to cut interest rates, as high inflation is no longer a concern due to tariffs. "We can worry a lot less about inflation, and therefore we can start easing a little bit faster," he told City AM. "Growth is likely to be weaker, so rates need to come down." Pickering suggested that Andrew Bailey should advise the Prime Minister to refrain from imposing reciprocal tariffs, thereby avoiding a near-term inflation shock. He also stated that predictions of inflation potentially reaching as high as 3.75 per cent were not "irrelevant". "It's not even worth paying attention to economic data that is telling you about the economy before the US dramatically escalated tariffs. It's just, it's redundant." Pickering further suggested that the elevated gilt yields, which are increasing borrowing costs, were a consequence of fears surrounding low growth and these changes provided further justification for the Bank to reduce interest rates. "In a strange way, if the Bank of England were actually to go a little bit quicker with rate cuts and support growth expectations, it would probably have the effect of reducing bond yields in the long run because markets would worry less about recession risk." Central banks around the world are rapidly responding to the impacts of a full-blown trade war. Policymakers in India and New Zealand cut interest rates on Wednesday. Reserve Bank of India Governor Sanjay Malhotra said "concerns on trade frictions are coming true." The US Federal Reserve has come under pressure from JP Morgan executive Bob Michele – and the US president himself – to cut interest rates. Federal Reserve Bank of Minneapolis President Neel Kashkari said high inflation expectations in the US would delay interest rate cuts while some analysts believe that markets may have overestimated the number of cuts due to be made this year. "The Fed is being held back from providing additional policy rate cuts because there is limited evidence that the economy needs immediate additional support," Seema Shah, chief global strategist at Principal Asset Management, told City AM. "In order to cut rates, the Fed needs to believe that softer growth will exert downward pressure on inflation in the medium term and inflation expectations must remain anchored."

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The latest equity investment deals in Wales

2025-08-18 16:17:05

A Cardiff based fintech start-up is eyeing global expansion on the back of the successful demonstration of the first certified online card-present transaction. The ground breaking advancement from Burbank brings tap and personal identification number (PIN) - the universally trusted way to pay - into the online world for the first time with customers paying through mobile devices like their phones. Known as card-present over internet (CPoI), Burbank’s innovative payment solution enables merchants to securely process card-present transactions in online channels. To supports its global growth plans Burbank has raised £5m in a seed funding equity round led by Mouro Capital with participation also from Anthemis (supported by Foxe Capital) and Portfolio Ventures. Burbank’s revenue model will see it taking a percentage of the savings made for merchants on the cost of processing. As a global solution Burbank has plans to rapidly expand internationally. It owns the intellectual property to its technology and said it will soon receive two global patents. Its chief executive Justin Pike, who hails from Newbridge, said: “With CPoI, we are aligning in-store and digital payments. Our goal is to transform e-commerce by significantly reducing fraud and eliminating false positives—issues that have long plagued online sellers. “CPoI will open up internet purchases to all ages and give consumers the highest level of protection when shopping online, whilst revolutionising online commerce for merchants by mitigating fraud, setting a new standard for secure online transactions.” Currently, online merchants face over $40bn annually in fraud and charge backs, which is when a cardholder disputes a transaction and the merchant is obligated to provide a refund. Payment fraud is growing an enormous 69% per year, and charge backs at 52%. Mr Pike said: “With CPoI, online shoppers simply tap their payment card against their own mobile device and securely enter their pin to complete payment, just as they do in-store. The physical card and pin confirm the true cardholder’s identity, therefore significantly reducing the opportunity for fraud”. Beyond fraud prevention, CPoI addresses an even costlier problem for online businesses: false positives, where legitimate transactions are incorrectly flagged as fraud by anti-fraud systems, giving merchants a considerable revenue boost. Mr Pike said: “These erroneous actions cost merchants $443bn per year, with 65% of blocked transactions being false positives. Worse still, 41% of affected customers never return to the retailer. With CPoI enabling card-present payments online, merchants no longer need anti-fraud technology, effectively eliminating false positives and improving the customer experience, whilst costing the merchant nothing to deploy.” Online retailers may experience other benefits with CPoI as it removes barriers to online shopping by enabling consumers to pay online the same way they do in-store. British Business Bank The number of equity investments into small firms in Wales and their value have fallen, according to new research from the British Business Bank. Its Small Business Finance Markets 2024/25 report shows that Wales suffered a 14.3% fall in announced equity deal numbers and a 45.7% fall in their combined investment value in the first three quarters of 2024 compared to the same period in 2023. In total 48 equity with an investment value of £54.9m were reported. This compared to the same period in 2023 with 56 deals and a value of £101,2m. For the UK as a whole there was a 24.3% fall in deals to 1,303 (1,721 in 2023), but with the value of deals up 6.6% from £6.47bn to £6.89bn. The number of deals in Wales made up 3.7% of the UK total and just 0.8% on value. The decline in deal numbers in Wales mirrors much of the UK where equity investments decreased across all nations and regions, part from the north East of England. UK-wide the proportion of smaller businesses accessing finance fell from 50% in Q3 of 2023 to 43% in Q2 of 2024. The British Business Bank, which is the economic development bank of the UK Government, said this was likely due to business confidence remaining low. Despite a UK trend for declining finance usage, Wales demonstrated a relatively stable trend that continued into the first half of 2024. Susan Nightingale, director for the devolved nations at the British Business Bank, said: “It is clear that conditions continue to be tough for smaller businesses, with some domestic uncertainty meaning many were less willing to invest with confidence in 2024. In Wales we are certainly experiencing these challenges, and while equity deal numbers and investment values are tracking more strongly against the UK average than many other nations and regions, there’s no doubt that the data is going in the wrong direction, when it comes to meeting our growth ambitions. “The diversity of supply of finance, in terms of both product and provider, is an important factor in meeting the diverse needs of the UK’s highly varied smaller business community. The increasing role for challenger banks in 2024, for which Wales is a significant base, is an encouraging sign, as is the ongoing roll out of the Bank’s £130m Investment Fund for Wales, where the strong equity element will make a significant impact on the Welsh smaller business landscape in the months and years to come. “The findings from this report further emphasise the need to ensure smaller businesses across the UK’s nations and regions have better access to the finance they need to invest. We will continue to support UK economic growth by providing them with the capital they need to start up, scale up and stay in the country as they realise their full potential.” Bute Energy Developers behind plans for ten major wind farm projects across Wales have secured a £600m funding boost. The projects include Twyn Hywel wind farm, with turbines bigger than Blackpool Tower, which was given planning permission last year, and will generate enough power for 81,000 homes when completed. The investment has come from Copenhagen Infrastructure Partners (CIP), which is taking a stake in the companies hoping to build the wind farms, Bute Energy and Green GEN Cymru. Nine more wind farms are still awaiting planning permission, forming part of a £3bn onshore wind portfolio. Subject to planning approvals, Bute Energy’s entire portfolio of planned energy projects will generate enough power for 2.25 million homes by 2030. Nischal Agarwal, partner at CIP, said the investment “reflects our confidence in the Welsh renewable sector to deliver much needed infrastructure to Welsh homes and businesses, to play a full role in meeting national renewable energy targets”. Bute Energy and Green GEN Cymru said their projects are in response to the Welsh Government’s plan for the country’s entire electricity consumption to come from renewable sources by 2035. Bute Energy’s projects aim to meet 25% of this target – bosses say they could create up to 2,000 jobs. Managing director of Bute Energy, Stuart George, added that the company hopes to have six of the projects on “the Cabinet Secretary’s desk” for decision by this summer. Finalrentals Car rental tech venture Finalrentals is looking to accelerate its global growth plans following a six-figure equity investment. The Cardiff-based firm, with provides a customer tech platform for car rental businesses globally, has closed a pre-Series A investment round. Its brings it total fundraising to over £1m following its first round in 2022. The latest round was backed by E100 London Business School Angel Syndicate, leading angel investors from both London and the United States, as well as existing backers. Since its last funding round, Finalrentals has tripled its revenue, achieving a 300% year-over-year increase, and expanded into over 30 international markets. The company has also grown its global partner network to include more than 500 car rental providers. With this new investment, Finalrentals aims to surpass the £1.1m annual net revenue mark while increasing its global team by 40% to support further expansion. Founder and chief executive Ammar Akhtar said: “This funding is a testament to the strength of our vision and execution. With the backing of our investors, we are poised to redefine the car rental experience, empowering local rental companies with cutting-edge technology, automation, and seamless global reach. We will use this funding wisely and will work towards growth only growth.” Finalrentals plans to use the funds to enhance its AI-driven automation, accelerate product development, and expand its international footprint, targeting key markets in Europe, the Middle East, and North America. The car rental sector is worth $100bn globally with Finalrentals well positioned as a key disruptor, bridging the gap between local rental businesses and global travellers through its innovative tech platform. Nisien.AI An artificial intelligence spinout company from Cardiff University that has developed a platform to identify online harm and enhance moderation is looking to accelerate growth following a significant equity investment. Nisien.AI has been backed in the first co-investment between the Development Bank of Wales and the British Business Bank’s £130m Investment Fund For Wales (IFW). The exact value of the investment, and the ownership stakes taken, have not been disclosed. The IFW is managed on behalf of the British Business Bank, which is the economic development of the UK Government, by fund manager Foresight. Founded less than two years ago by two Cardiff University academics, Professors Matt Williams criminology) and Pete Burnap (data science, AI), Nisien.AI uses scientifically informed technology to detect and respond to online harms, such as online conflict, to support healthy debate and conversations. Nisien.AI, which already has 14 employees, is working with key customers ranging from the top five social media platforms to global brands. The new investment will enable the company to continue to innovate and scale, making key hires and accelerating R&D to develop and bring to market products like its maiden revenue generating product HERO Detect, which deploys AI algorithms to accurately detect and classify harms across online platforms in real-time. In addition to identifying and responding to online harms, the company is also working on new AI products based on emerging scientific evidence on ‘what works’ in building cohesive integrated online spaces. Snoap An innovative solid soap dispenser developed by a Monmouthshire venture has secured a £50,000 investment after pitching to angel investors on BBC’s popular Dragons’ Den show. Monmouth-based Snoap, founded by entrepreneur Lisa Hicks, secured offers from all five Dragons before selecting Deborah Meaden and Peter Jones as partners in the business with them agreeing to take a joint 7.5% equity stake in the start-up. Snoap is a hand soap dispensing system designed with sustainability at its core. The product, which replaces 20 plastic soap bottles with two bar soaps, was created after Ms Hicks realised how much single-use plastic her family used during the pandemic. Snoap which is patented, dispenses a fine, hygienic, powder. To accelerate the growth of Snoap, Ms Hicks joined the NatWest Accelerator programme 18-months ago, The bank’s support has helped her business become ‘Den-ready.’ Ms Hicks entered the Den, with her husband Antony, with the aim of securing a £50,000 investment to bolster marketing efforts and drive business to consumer sales, with the credibility of investment from the Dragons also helping to cut through the market. The chief executive said: “Stepping into the Den was a nerve-wracking but exciting experience. I was confident the Dragons’ would love Snoap and I knew my numbers inside out having been supported by the NatWest team via their accelerator over the last 18 months. I joined the digital accelerator with the aim of levelling up and becoming investment ready, and the support of one to one coaching from NatWest has been invaluable in preparing for this opportunity.”

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UK's major banks face downturn as FTSE 100 slips amid new US tariffs

2025-08-19 17:49:29

The FTSE 100's major banks were once again in the red on Friday, amidst heightened concerns over tariffs. Shares in Natwest and Barclays plummeted by over 6% in early trading, making them the top losers on the index. HSBC and Lloyds followed closely, with losses exceeding 5%, while Standard Chartered suffered a 4% decline, as reported by City AM. The FTSE 350 bank index took a significant hit, tumbling nearly 6% and accumulating a 10% loss over the past five days. The FTSE 100 as a whole saw a decline of up to 1.7% on Friday morning. In a statement, Barclays analysts noted: "These new tariffs will dampen the global economic outlook, both globally and in Europe, which bodes poorly for earnings." "Our economists believe that recession risks have risen, with policy support from governments and central banks crucial to gauge the extent of downside risks." According to Vivek Raja, an equity analyst at Shore Capital: "The shock and awe of Trump's capricious foreign policy strategy has created acute anxiety, which is typically not conducive to the health of financial markets." "We expect more turbulence and emotional share price responses over the coming days. The impact of tariff wars on the fundamentals of our UK financials stock coverage will be indirect." Raja added that changes in economic growth, wealth formation, inflation, interest rates, financial markets, and regional differences would negatively impact business models. Raja suggested that lenders with an Asian focus, such as HSBC and Standard Chartered, would likely face the most significant impacts compared to their more UK-domestic counterparts. Trump imposed a 10 per cent tariff on UK imports to the US, which he stated was the baseline for all countries. In his 'Liberation Day' speech, Asian economies were subjected to some of the highest levies.

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Cheshire HR software firm makes Appraisd acquisition as it vows global growth

2025-08-25 11:00:09

Private equity-backed HR software specialist Talos360 has acquired global performance management software platform Appraisd in what bosses say is an “important milestone” in its growth plans. Warrington-based Talos360 won investment from mid-market private equity firm LDC in 2022. Hundreds of businesses use its applicant tracking system and talent tracking technology to recruit and retain staff. Meanwhile London’s Appraisd was founded in 2012 and its performance management systems are used by hundreds of clients across 65 countries to support activities from appraisals to probation reviews. The acquisition was funded by LDC and the value was not disclosed. Talos360 says the deal will help it to grow globally and to work with customers across the USA, Singapore, South Africa, UAE, Australia, and Canada, alongside its established presence in Europe. Janette Martin, CEO at Talos360, said: “This is a pivotal moment for our business. “We’re passionate about developing proprietary award-winning talent technology for our clients, and now, in 2025, we’re delighted to welcome Appraisd as a key highlight of our Talent Operating System. Talos360 customers can now access even more innovative talent technology to develop their people, helping HR, leadership and management teams to achieve the best results for their business. “This move reinforces our commitment to creating a seamless, data-driven employee journey, from hire to retire and reflects our ambitions to continually solve the challenges faced by HR professionals to optimise workforce management.” Appraisd founder and CEO Roly Walter will be joining Talos360. He said: “As a people-first business, it was important that Appraisd found the right home, within the right team and culture. With a great blend of product fit and company values I’m excited to see what the future holds for Appraisd within the Talos360 product family, and the ambitious growth strategy ahead.” John Clarke, partner at LDC, added, “This acquisition represents a key milestone for Talos360, as it expands and diversifies its product portfolio. Appraisd is a fantastic strategic fit which has enjoyed strong growth historically and we are looking forward to supporting the Talos360 management team in integrating Appraisd into its business.”

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Gold prices dip despite safe haven status amid Trump's new tariffs and global market turmoil

2025-07-30 02:23:32

Despite its status as a safe haven amidst global trade uncertainties, gold prices have seen a decline for the third consecutive session. Over the past week, gold has dropped nearly three per cent in US dollar terms, following a steady rise since the onset of 2024, as reported by City AM. This drop coincides with a worldwide slump in stock prices in the wake of US President Donald Trump's comprehensive tariffs, which economists fear could plunge the world into recession. On the day of Trump's tariff announcement, the precious metal performed robustly, momentarily reaching a new all-time high of $3,225 after the president disclosed tax figures by country, before settling back to $3,125. However, it has since pulled back, even briefly dipping below the coveted $3,000 mark this morning. The depreciation in gold prices has occurred despite a fall in the value of the US dollar against other major currencies: when measured in euros, gold has declined almost six per cent since Thursday morning. While tariffs may play a significant role, analysts at Tatton Investment Management suggest that the end of the financial year last week may have distorted gold markets due to portfolio rebalancing. Given gold's strong performance in recent months, it would have become over-represented in many stockpicker portfolios, leading to a temporary sell-off to adjust proportions, according to the investment firm's analysts. As the broader market took a hit, many investors were likely compelled to liquidate their positions in gold, resulting in downward pressure on its price. "Margin calls from brokers is likely to have exacerbated some of the market movements," offered Susannah Streeter, head of money and markets at Hargreaves Lansdown. She went on to say: "Investors using more risky margin accounts can borrow money to invest, but falls in asset prices are prompting demands they deposit more money, as the value of assets used as collateral falls." Moreover, Streeter observed that increased unease among investors has led many to cash in on profits accrued over the past year and pivot to cash holdings. Alternatively, Michael Brown, a senior research strategist at Pepperstone, attributed the decline in gold's value to the unwinding of tariff risk premium following an exemption of bullion imports from tariffs.

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Close Brothers reports £104m loss due to motor finance scandal provisions

2025-08-20 09:18:47

Close Brothers, the banking group, suffered a steep £104m loss in the first half of 2024. The fall into the red was a result of provisions set aside for a motor finance scandal. In contrast, the FTSE 100 lender posted a pre-tax profit of £88.1m during the same six months of the previous year, but a substantial £165m provision for motor finance payouts has turned the tide, as reported by City AM. Early trading saw Close Brothers' shares take a hit, dropping 14 per cent as investors assessed the news. Further contributing to the losses were the expenses related to the handling of complaints and additional legal costs linked to the car commission scandal. Operating income slipped by one per cent to £390m due to a slight decline in banking and reduced interest income. The net interest margin of the group was trimmed by 30 basis points, dipping to 7.2 per cent from 7.5 per cent. Despite these setbacks, the lender announced the completion of the sale of its asset management division on February 28, estimating a gain of £59m and enhancing the group's CET1 ratio by approximately 120 basis points to 13.4 per cent. The divestiture is part of a strategic sharpening of focus on its lending operations. Chief Executive Mike Morgan commented, "The group's performance reflects the strength and resilience of our business model, with robust underlying profit in the Banking business." Morgan expressed the company’s commitment to its clientele and professional performance, affirming, "At our core, we have been here to serve our customers, deliver excellent service, provide specialist expertise and build strong, lasting relationships over the years. Today we are a trusted partner to UK SMEs, millions of customers, and our dedicated colleagues." He then emphasised the crucial role of their banking model in the current landscape: "more relevant than ever" and perfectly in step with "the UK government's growth agenda." Setting forth his leadership goals, Morgan stressed the importance of focusing on efficiency and growth: "My priorities include focusing on greater simplification, improving operational efficiency, and driving sustainable growth."

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FTSE 100 crumbles again as Trump's 'Liberation Day' tariff assault continues

2025-08-13 10:55:32

The FTSE 100 had a gloomy start on Friday, still feeling the effects of Trump's 'Liberation Day' comments as it opened in negative territory. In early trading, the United Kingdom’s leading index was down by approximately 1.2%, with its mid-cap counterpart, the FTSE 250, also seeing a decline of nearly 1%, as reported by City AM. Banks were among those feeling the brunt during market opening, extending a downside pattern from Thursday's session. Natwest shares dropped over five per cent, while Barclays took a hit exceeding four per cent. Following its position as Thursday's biggest loser on the FTSE, Standard Chartered’s shares continued to wane, experiencing another fall of over four per cent. Conversely, British American Tobacco and SSE emerged as top performers in early dealings, each securing gains in the region of two per cent. Likewise, the retail giant behind Primark, Associated British Foods, saw its shares ascend over two per cent. AJ Bell’s investment director Russ Mould commented: "With markets having suffered their worst week in five years, investors were hiding under their duvet on Friday hoping the pain would go away." He went on: "Unfortunately, the relentless selling continued, with markets falling across Asia and Europe and futures prices suggesting the US will follow suit upon commencement of trade later today." Mould further remarked that "countless sectors" are poised for impact from tariffs, yet the plethora of "moving parts" presents a challenge to "know where to begin to comprehend the situation." "Investors looking to buy on the dip were spoiled for choice given the sharp declines seen on the market this week. It's now a question of when investors feel brave enough to go shopping. Today's extended sell-off implies investors are still too nervous to take the plunge," he added. On Thursday, the FTSE 100 experienced a sizeable drop, shedding 133 points and closing at 8,474.74 – a 1.6% decrease from the previous day's total. In a bold move, Trump imposed a baseline 10% import levy on all countries trading with the US during his Wednesday address, with increased rates for those classified as "worst offenders." A 10% import tariff was levied on the UK while the European Union suffered a steeper 20% hike. Commentators have noted with surprise that 'Markets appear to have been unprepared' for such trade measures. Stocks across Europe also faced a downtrend, with Germany's DAX falling 0.8%, France's CAC 40 dipping by 0.9%, and Amsterdam’s AEX index experiencing a 0.5% decline. The announcement of tariffs contributed to Wall Street recording some of its most substantial losses since 2020. On the Nasdaq Exchange, big tech firms including Apple and Nvidia saw sharp drops, declining nine and eight percent respectively. The S&P 500 was not immune to the downturn, with a near five percent fall, while the Dow Jones Industrial Average saw a four percent dive. Hargreaves Lansdown's head of equity research Derren Nathan commented: "Despite months of sabre-rattling by Donald Trump, markets appear to have been unprepared for the depth and breadth of tariffs announced by the White House." As a result of the tumult across the pond in the US and the White House's significant measure, "The FTSE 100 is set to open down a touch further, after US stocks suffered their worst day in five years."

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City analysts downgrade luxury stocks as impact of Trump tariffs filter through

2025-08-29 01:11:52

Deutsche Bank, the city broker, has lowered the target share price for a range of luxury firms as Trump's tariffs begin to influence analyst predictions. The broker assigned a 'Hold' rating to Richemont, LVMH, Moncler and Kering, reducing the share price for each company, as reported by City AM. "The direct impact of the tariffs is not a huge headwind in our view... However, weaker global stock markets and the broader economic uncertainty will weigh on confidence and we see this further postponing a recovery in luxury demand," analysts commented. Hermes was the sole firm to receive an upgrade, with Deutsche Bank shifting its recommendation from a 'Hold' to a 'Buy' and raising the target share price from €2,220 to €2,550 (£1,911 to £2,195). Mamta Valechha, Consumer discretionary analyst at Quilter Cheviot, stated that Hermes would benefit from its "strong pricing power and higher-end positioning" despite the inevitable single-digit price increases. "However, how the US (and global) luxury consumer responds to potentially reduced global economic growth remains unknown," Valechha added. There was a significant sell-off in luxury markets after Trump announced tariffs on April 2. Burberry, Kering, and LVMH have dropped 16.6 per cent, 16.2 per cent 12.5 per cent, respectively, since April 2. Traditionally safe bets Hermes and Ferrari have dropped 8.5 per cent and nine per cent, respectively. Analysts were initially banking on a resurgence in the luxury sector following a dip caused by the cost-of-living crisis in Europe and economic downturn in China during 2023. "It is no longer clear that the third quarter of 2024 was the nadir for luxury demand," stated analysts from Deutsche Bank. "The luxury recovery in the fourth quarter now looks likely to be the anomaly and not the trend."

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M&G reports jump in outflows as it slumps to loss in 2024

2025-08-20 22:10:01

M&G has disclosed notable increases in fund withdrawals for 2024, with outflows surging to £9.5 billion from last year’s £4.7 billion, according to the company's annual results. All sectors of the business experienced these outflows, with its conventional Life division suffering the most significant hit, facing outflows totalling £4.8 billion over the course of the year, as reported by City AM. Despite this, the insurer and asset manager's adjusted operating profit saw a five per cent elevation to £837 million, propelled by an impressive 19 per cent rise in profits from its asset management segment. Attributing to M&G's ongoing strategy to expand and streamline operations, the enhanced profits in asset management were bolstered by cost-cutting measures that successfully counteracted the effects of inflation, as evidenced by the dip in cost-to-income ratio from 79 per cent the previous year to 76 per cent. Nonetheless, the group acknowledged a significant statutory loss after tax of £347 million, a downturn from a £309 million profit in the preceding year, reflecting unrealised fair value losses on surplus assets in its annuity portfolio alongside hedging-related fair value losses. M&G’s chief executive, Andrea Rossi, stated today that the firm has established a fresh target for the forthcoming three years: To increase adjusted operating profit annually by an average of at least five per cent. "As we look ahead, the strong foundations we have built position us well to continue to deliver long-term value to our customers and clients and diversified profitable growth to shareholders," he expressed. The group's total assets under management and administration saw an increase from £343.5bn to £345.9bn, partially attributed to the acquisition of Baumont Real Estate Capital and an increased stake in Continuum. In September, M&G announced it would raise its three-year cumulative operating capital generation target to £2.7bn for 2022 to 2024, and confirmed today that it had achieved this goal while also reducing its debt by £461m.

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Close Brothers stock soars past target price while HSBC, Barclays and Standard Chartered tumble

2025-08-17 05:04:43

Shares in FTSE 250 lender Close Brothers experienced a surge on Thursday morning, contrasting with the downward trend of banking rivals HSBC, Barclays and Standard Chartered. The lender saw gains peak at ten per cent during early trading before settling around five percent, as it began to recover from recent losses, as reported by City AM. In contrast, Standard Chartered led the FTSE 100's losses, dropping nearly 10 per cent, while Barclays and HSBC fell by close to seven per cent and over six per cent respectively. Close Brothers' stock has been under pressure over the past six months due to its involvement in the car mis-selling scandal. This week, the saga moved to the Supreme Court, where Close Brothers is attempting to overturn an October ruling by the Court of Appeal. The ruling deemed it unlawful for banks to pay commission to a car dealer without the customer's informed consent. Following the verdict, Close Brothers' shares plunged almost 25 per cent and have remained unstable since. The Supreme Court's judgement could take several months, but the Financial Conduct Authority has stated it will confirm an industry-wide redress scheme within six weeks if the banks receive an unfavourable verdict. As the Supreme Court hearing commenced on Tuesday, the stock experienced fluctuations throughout the day. Peel Hunt rated the stock a 'hold' in a note issued on April 1, setting a target price of 277.20p. However, following Thursday's gains, Close Brothers surpassed the analyst's target, reaching highs of 310p. Analysts have revised their forecast for Close Brothers' full-year earnings per share, reducing it by 15% to 50.6p. Their guidance on the lender's full-year net interest margin – a key banking indicator of the difference between the rates at which a bank borrows and lends – has also been cut to 7%, with an anticipation that it will drop further to 6.7% in the second half. RBC Capital Markets adjusted their target price for Close Brothers down to 340p from 360p according to a note issued last week, yet they maintained an 'Outperform' rating. This suggests that they anticipate the company's shares to "materially outperform sector average over 12 months."

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FTSE 100 stages tentative recovery as pound climbs from one-year lows

2025-08-21 18:24:00

The FTSE 100, UK's blue-chip index, opened 1.5 per cent higher this morning, clawing back some of the losses sustained over the previous three trading days in the wake of US President Donald Trump's extensive tariffs. Yesterday saw the FTSE 100 plunge by more than four per cent as global stock markets grappled with the potential impact of a worldwide trade war, as reported by City AM. However, early trading this morning witnessed a cautious recovery in the market. The domestically-oriented FTSE 250 leapt 1.6 per cent in early deals, while the Stoxx Europe index 600 climbed 1.4 per cent. Commodities-focused stocks on the FTSE 100 led the market upwards, buoyed by increasing commodity prices. BP saw a 2.6 per cent rise, while mining companies Antofagasta and Glencore both increased by three per cent. US-centric tech stocks listed on the FTSE 100, such as Scottish Mortgage Investment Trust and Polar Capital Technology Trump, also demonstrated strong performance this morning. In the meantime, the pound rose by 0.46 per cent after hitting a one-year low yesterday of around $1.27. US stocks have also continued their recovery from the sharp downturn experienced in recent days, with Dow Jones futures up 1.7 per cent and S&P futures rising 1.3 per cent. Matt Britzman, senior equity analyst at Hargreaves Lansdown, cautioned: "This should hardly be seen as the end of the trouble, especially with President Trump showing no signs of easing his stance on perceived trade imbalances." Despite Trump's threats to escalate tariffs on China beyond 100 per cent, Asian markets have remained unfazed. Japan's Nikkei surged by six per cent this morning, while the Chinese Hang Seng and Shanghai Stock Exchange indexes experienced increases of 1.2 and 1.4 per cent respectively. Gold, which had been negatively impacted by uncertainty surrounding Trump's tariffs, rose by one per cent this morning to exceed $3,000 again, although it is still down by 3.7 per cent over the past week.

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Close Brothers shares volatile as motor finance Supreme Court case kicks off

2025-08-14 21:14:34

Shares in FTSE 250 lender Close Brothers experienced volatility during early trading on Tuesday as the first day of the motor finance hearing commenced. The bank was among the top fallers in the FTSE as markets opened, following a downgrade from City broker Peel Hunt, as reported by City AM. The broker expressed surprise at the "extent" of guidance downgrades announced by Close Brothers. The lender's shares plummeted as much as five per cent after markets opened, before rallying to over four per cent up. However, by midday, the bank had fallen back into the red. As of 1300 BST, it was two per cent down on its market-open share price. Peel Hunt predicted that Close Brothers' net interest margin (NIM) – a crucial metric used by banks that illustrates the difference between interest earned on loans and interest paid on deposits – would decrease to 6.7 per cent in the second half of 2025. This would represent a loss of 60 basis points after the lender recorded a NIM of 7.3 per cent in the first half of the year. Peel Hunt assigned a 'Hold' rating to the lender and set a target price of 327p. Close Brothers opened at 277.20p on Tuesday. Analysts also reduced the bank's earnings per share by 15 per cent for the 2025 financial year to 50.6p. This continued into 2026 with a one per cent downgrade. Analysts wrote: "We believe the shares appear optically cheap, but the upcoming Supreme Court ruling... is a key unknown." Following the Court of Appeal's ruling in October 2024 that it was unlawful for banks to pay a commission to a car dealer without the customer's informed consent, lenders including Close Brothers and First Rand are escalating the fight to the Supreme Court to get the ruling overturned. The Financial Conduct Authority (FCA) has stated that if the banks face an adverse judgement, it will confirm an industry-wide redress scheme within six weeks. This case could have significant financial implications for the lending industry, with RBC analysts projecting total compensation claims could reach £32bn.

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Lloyd's of London reports profit drop to £9.6bn amid US wildfire claims and market volatility

2025-08-11 16:37:28

Lloyd's of London, the world's premier insurance and reinsurance marketplace, has announced a pre-tax profit of £9.6bn for 2024, down from the £10.7bn reported in 2023. The market, comprising over 50 leading insurance firms and more than 380 registered Lloyd's brokers, posted gross written premiums of £55.5bn for 2024, marking a 6.5 per cent increase from the £52.1bn recorded in 2023, as reported by City AM. Lloyd's attributed the growth in premiums to an 8.5 per cent surge in volume (7.6 per cent from existing syndicates and 0.9 per cent from new ones), along with price changes contributing 0.3 per cent and foreign exchange movements offsetting growth by 2.3 per cent. Overall, the market reported an underlying combined ratio of 79.1 per cent, a decrease from the 80.5 per cent recorded in 2023. The major claims ratio increased to 7.8 per cent in 2024 due to significant catastrophe events, including hurricanes Milton and Helene and the Baltimore Bridge collision. Earlier this year, the market warned in a trading update that it could face a £1.8bn hit from the Californian wildfires. Improved combined ratios were attributed to higher prior year reserve releases, a lower attritional loss ratio, and stable expenses. The market also benefited from a solid return on its investment portfolio, with the investment return for the year standing at £4.9bn, down from the £5.3bn recorded in 2023. Lloyd's reported that despite the overall benefit from higher interest rates, investment returns were impacted by mark-to-market losses due to market volatility in the fourth quarter, leading to a decrease compared to the previous year. John Neal, the outgoing chief executive of Lloyd's of London who is set to join insurance broker AON in January, commented: "The Lloyd's market has delivered another year of outstanding financial performance, with a superb combined ratio, underlying combined ratio and attritional loss ratio supporting a capital position and claims reserve strength that is as strong as it has ever been."

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Newcastle recruitment company Lead Candidate launches own drive for new employees

2025-08-13 19:49:02

A Newcastle recruitment company has launched its own drive for more staff on the back of growth in the bioscience sector. Lead Candidate was launched in 2020 when its founders, Raman Sehgal, Fiona Cruickshank and Andrew Mears, saw a need for a better talent solution in the life sciences industry. The solution was to create a talent consultancy that champions partnership, offering strategic advice to help business and individuals in the region and beyond to achieve their goals. Last year saw the business reach significant milestones in which it trebled in size, hired a vice president to be its first US-based team member, and its also moved into a brand new Newcastle city centre head office at 8 Nelson Street – the former Cafe Royal building that is also home to Mowgli restaurant and which has undergone a £1.5m makeover. This year, the business is looking to grow 30% further, allowing it to create several new jobs. Andrew Mears, CEO and co-founder, said: “Lead Candidate was created out of a commitment from its founders to unlock the potential of organisations through people and a recognition that the solutions available to businesses in our sector hadn’t kept pace with the market. Today our team of experts are working with customers across the US and Europe to make a positive impact on the careers of individuals and the amazing businesses that occupy the life sciences outsourcing sector. “It’s an exciting time for us, and these developments enable us to better serve our current and future customers around the globe. With no plans to slow down, we’re aiming to grow a further 30% in 2025, which will create several new employment opportunities in the North East. Right now, we’re looking for multiple talent partners and a customer development manager to join us in transforming the talent landscape.” The firm specialises in a niche area of life sciences, working with organisations that provide outsourced support to the pharma and bio sectors. The outsourcing companies offer services across the entire process of bringing medicines to the patients that need them. Mr Mears says the region’s rich expertise within bio sciences places the company well for future growth. He said: “While the pharma and bio outsourcing sector is niche, it’s a fast-growing market. Although we’re based in the North East Lead Candidate operates globally, partnering with companies all over the world, with a particular focus on the US and Europe. We support our partners in recruiting talent at all levels and functions, from entry-level lab scientists to key C-suite appointments. "The North East is home to an active life sciences sector, with major organisations such as CPI, who we’ve supported in the past, Sterling Pharma, and Quotient Sciences. There’s also a thriving biotech industry, with hubs like the Biosphere at the Newcastle Helix providing laboratory space for life science innovation and R&D in the region. “We’re also lucky to be surrounded by some top-tier academic institutions like Newcastle University, Northumbria University, the University of Sunderland, and Durham University. These institutions play a pivotal role in feeding and expanding the local life sciences community, with a thriving start-up community spinning out of academia.” While poised for growth, Mr Mears added that challenges are evident in the North East. He said: “There is significant optimism in the industry, driven by anticipated revenue growth due to market expansion. However, there are still challenges in terms of funding gaps. Many companies in the region struggle to secure the financial backing that would allow them to scale. The North East is also impacted by a lack of Government-backed funding which limits growth and opportunities for local businesses. Despite the presence of several prestigious academic institutions, a skills shortage still exists with demand outweighing the available talent. “Recently, we have seen businesses founded in the region move out of the area to more attractive life sciences hubs in the North West and South of the country due to improved access to funding and skills.”

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Barclays shares explode higher as FTSE 100 rebounds after Trump roll back

2025-08-14 00:43:15

Shares in FTSE 100 heavyweight Barclays soared in early trading following Trump's rollback of his 'Liberation Day' tariffs. The bank's stock surged over 20 per cent as markets opened, before settling to a 15 per cent gain, topping the blue-chip index's risers. This surge helped offset the lender's losses following Trump's tariff onslaught, reducing its one-month loss to three per cent. Barclays shares had taken a hit as geopolitical tensions escalated over the past week, with shares in the lender dropping nearly ten per cent after China launched its first round of retaliatory tariffs against the US on Tuesday, as reported by City AM. Russ Mould, investment director at AJ Bell, commented: "In Barclays' case, its investment bank is heavily geared into how the financial markets performed." He added that "Tumbling, or volatile, markets are likely to deter merger and acquisition activity and also new market floats, both areas where there are fat fees to be made." The firm's investment bank has become a crucial part of business operations and has been a significant driver of profits. It exceeded £11.85bn in total income for 2024, surpassing analyst estimates of £11.7bn. Barclays' recovery coincided with the FTSE 100 surging over five per cent. Lenders have borne some of the most substantial losses amidst the escalating global trade war. Last week, the FTSE 100's 'Big Five' led the decline in the index. Both HSBC and Standard Chartered have experienced setbacks due to their Asian operations, which were hit hard by the heavy tariffs imposed by Trump. Before the opening of US markets on Tuesday, Bloomberg's estimates highlighted that major bank stocks had shed more than $700bn (£544bn) in market value within a single week.

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Cash ISAs fall out of favour as 57% more people put money into Stocks and Shares ISAs

2025-08-23 14:16:30

Cash ISAs are losing favour with investors, while the popularity of Stocks and Shares ISAs has soared by 57 per cent amid proposed reforms to the investment wrapper. Investengine's analysis of HMRC data shows that new Cash ISA accounts have dropped seven per cent over the past five years, despite recent government plans to overhaul the ISA system, as reported by City AM. Between 2018/19 and 2022/23, the amount held in Stocks and Shares ISAs rose 37 per cent compared to a mere nine per cent increase in cash ISA value. This has resulted in a staggering £431bn being held in Stocks and Shares ISAs, 46 per cent more than the £294bn in cash ISAs. The announcement follows Chancellor Rachel Reeves' confirmation in the Spring Statement that the government intends to reform the ISA system, with these changes expected to be unveiled in the Autumn Budget. Rumours had circulated that the cash ISA's limit would be cut from £20,000 to £4,000 ahead of last week's fiscal event, but Reeves ultimately scrapped these plans. The proposed changes to the ISA regime largely stem from the government's ambition to enhance the culture of retail investment in the UK. According to Investengine's data, there are now 3.8m retail investors with a Stocks and Shares ISA, up from 2.4m five years ago, while the number of cash ISA subscriptions has decreased from 8.5m to 7.9m. The data aligns with recent survey findings that only 31 per cent of Britons possess a cash ISA, and a mere 16 per cent hold a Stocks and Shares ISA. Yet, the survey also uncovered that 17 per cent of UK adults are unaware of the Stocks and Shares ISA, while a quarter acknowledge hearing about it but lack any understanding of it. "Although reforms have been delayed, our analysis shows stocks and shares ISAs are in fact increasing in popularity without the explicit need to make cash ISAs less appealing," commented Andrew Prosser, head of investment at Investengine.

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Lloyds Bank to send 200 senior staff on AI training at University of Cambridge

2025-08-12 08:22:00

Lloyds Banking Group has unveiled plans to enrol over 200 of its senior staff in an intensive 80-hour AI training programme at the University of Cambridge. The FTSE 100 bank has partnered with edtech firm Cambridge Spark for a customised six-month training course aimed at boosting AI proficiency across its management team. The inaugural group of 30 Lloyds leaders attended a rigorous two-day session at the University earlier this month, which included a lecture by Professor Stelios Kavadias, an expert in innovation and technology management. These sessions, delivered by Cambridge Spark in conjunction with the University of Cambridge, are designed to identify opportunities through AI and implement AI solutions to improve operations and customer experience, as reported by City AM. This initiative builds on the existing partnership between Lloyds and Cambridge Spark, which has previously offered lessons in practical industry skills for budding data scientists and engineers. Lloyds' Group Chief Operating Officer, Ron van Kemenade, said: "AI is a game-changer for financial services, and we're investing to enhance our services with cutting-edge technology. " He added: "The programme with Cambridge Spark will empower our business leaders to further innovate with AI and drive commercial excellence using this transformative technology. "Our approach to AI is based on integrating it deeply throughout every aspect of our business rather than limiting it to a centralised technical team. We're building on our existing expertise to develop the most AI-capable leadership team in banking." Dr. Raoul-Gabriel Urma, founder and CEO of Cambridge Spark, commented: "Advancing AI capabilities represents both the greatest challenge and opportunity for today's businesses. " "Enhancing these capabilities within senior leadership creates a powerful multiplier effect that drives innovation throughout the organisation. We're excited to support Lloyds Banking Group in this strategic investment." Lloyds has shown commitment to expanding AI and technology across its operations, marked by the launch of its 'AI Centre for Excellence' last year. Rohit Dhawan, former Amazon executive who leads the centre, stated: "By staying at the forefront of AI technology and maintaining a strong ethical foundation, Lloyds Banking Group aims to lead the financial industry into a new era of digital transformation."

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London Stock Exchange sees decline as UK firms opt to remain private longer, says UK Finance report

2025-08-28 05:21:26

UK Finance has highlighted the evolving relationship between British businesses and public exchanges like the London Stock Exchange, calling for a new approach in light of significant changes. The finance industry body, which represents the banking sector, observed a declining emphasis on public listings with companies remaining privately held for prolonged periods, resulting in a "shifting" of market dynamics, as reported by City AM. Its analysis, supported by professional services firm EY, pointed to a noticeable surge in private capital markets. The growth rates are impressive: venture capital investments have been increasing by 20% annually on a compound basis, private equity by 11%, and private debt by an astonishing 43% since 2013. "The decision where to join public markets is now more nuanced," the finance body noted in its publication. One particular area of concern outlined in the report is the reduced market capitalisation of UK-listed firms, which has plummeted by 17% from 2013 levels. Moreover, last year witnessed a sharp drop in the number of businesses on the London Stock Exchange, with 88 departures including Paddy Power parent Flutter and tech success story Darktrace, contrasted with just 18 new entrants. The UK Finance document stressed the urgency for action: "A unified course of action, looking across public and private capital markets, needs to be taken now." To address this, the report advocates for a stronger integration between public and private markets, which could pave the way for innovative strategies and solutions that support business growth and enhance market liquidity. UK Finance has voiced its support for schemes like the London Stock Exchange's Private Intermittent Securities and Capital Exchange System (PISCES), emphasising that it could significantly improve the link between public and private markets and ensure "smoother transitions" to public listings. The trade body suggests collaboration as a means to rectify financing imbalances, especially as the government aims to "cut the red tape" hindering entrepreneurial growth. Alongside this, UK Finance contends that regulatory shifts should be in harmony with the broader industrial strategy and initiatives laid out by the government. They advocate for the removal of the 0.5 per cent stamp duty on UK equity trades, arguing it would facilitate capital deployment and enhance the efficiency of UK financial markets. This stance follows the unsuccessful appeal to Chancellor Rachel Reeves to eliminate the charge in her Spring Statement. Further steps proposed by UK Finance to bolster expansion include augmenting support mechanisms for businesses emerging from university-led research, with the goal of sparking further waves of UK business achievements. Moreover, the establishment of regional hubs is recommended to assist start-up leaders with navigating investment discussions, product commercialisation, and making the most of UK tax incentives, which collectively could drive nationwide innovation. Conor Lawlor, UK Finance's managing director of global banking, markets and international affairs, expressed confidence in the UK's ability to nurture companies and projects: "[The UK has] a world-class ecosystem of public and private markets, and a real opportunity to strengthen the way they work together to support the most innovative companies and national projects." "By harnessing the full potential of private markets alongside public markets, we can ensure businesses of all sizes have access to the capital they need to scale." Axe Ali, who leads the private equity and venture capital team at EY, commented: "Closer public and private market collaboration could help to address financing imbalances across key UK regions and sectors, and ensure the UK's most innovative, growing businesses can access vital capital."

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HSBC and Barclays shares tumble as Trump's new tariffs shake up FTSE 100

2025-08-09 12:37:51

Shares in Britain's leading banks plummeted in early trading on Thursday following President Trump's tariff announcement, which sent shockwaves through the London stock market. Europe's largest bank, HSBC, saw its shares tumble by over 5%, with Barclays experiencing a fall of more than 4%, as reported by City AM. Standard Chartered, a member of the FTSE 100 index, suffered the brunt of the sell-off, with its share price dropping over 7%. The FTSE 100 index itself retreated beyond 1% as the markets opened, reacting to Trump's decision to impose a 10% tariff on UK imports to the USA. Dan Coatsworth, an investment analyst at AJ Bell, commented to City AM: "With so much uncertainty around the global economy as a result of Liberation Day, it seems as if fewer investors want to own banks despite many paying generous dividends which can provide comfort during rocky market conditions." He remarked that banking is inherently tied to economic fortunes, contributing to the sector's vulnerability in the worldwide market downturn: "Banking is an economically sensitive industry, which explains why shares in the sector have been caught up in the global market sell-off." Coatsworth pointed out the specific challenges for HSBC and Standard Chartered: "Trump's tariffs are particularly punishing for various parts of Asia and that puts HSBC and Standard Chartered in the firing line given their major reliance on that part of the world." He continued to illustrate the broader implications: "Businesses will be spooked by tariffs and that could lead to reduced investment, which in turns suggests less demand to borrow from banks or for advisory services on M&A activity." Coatsworth also highlighted Brexit's impact: "The same applies to Europe and the US which are key places where Barclays does business." Barclays, HSBC and Standard Chartered all have significant operations beyond the UK, including in the US and Asia. A deceleration in global trade could result in reduced revenue for these banks due to a decreased demand for their services in facilitating international partnerships through trade finance and other financial services.

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North East liquidation levels rocket as rising costs bite, new figures reveal

2025-07-31 04:49:26

Soaring numbers of North East businesses went into liquidation over winter as the pressures of rising costs triggered collapsing finances, new figures show. R3, the UK’s insolvency and restructuring trade body, has explored the number of companies which called in liquidators as well as the volume of debts they accrued between December and February, revealing how some regional businesses have been struggling to stay solvent. The trade body’s analysis shows the number of North East businesses in liquidation rose by 42% over the three-month period, compared to the same period last year, leading it to call for firms to take swift action. R3’s analysis of data, provided by Creditsafe, shows there were 186 companies in the North East in liquidation who owed money to their creditors, with 64 in December, 49 in January and 73 in February, compared to the previous year’s total of 131. The North East and Yorkshire and Humberside were the only two UK regions or nations to see a yearly rise in companies in liquidation who owed money to their creditors, with Yorkshire and Humberside seeing a 17.4% rise. Kelly Jordan, chair of R3 in the North East, said: “The rise in companies in liquidation with outstanding debt across the North East is a sign of the impact of the ongoing financial pressures faced by businesses in the region. “Many companies have been grappling with increased costs and lower consumer spending for some time now, and this has made it increasingly difficult for them to pay their bills on time, and in some cases, remain solvent.” The debt owed by companies in liquidation in the North East totalled over £3.4m over the winter months, a rise of more than £2.7m when compared to the previous winter’s total of around £780,000. Companies which went into liquidation within the region include famous music shop JG Windows Ltd, which closed at the end of last year when its owner admitted it could no longer compete with big online retailers. The closure brought to an end a 115-year history as a shop selling instruments and sheet music to everyone from aspiring musicians to rock stars. Liquidation documents later showed it had debts of £956,986, although assets worth £148,186 were available to return funds to preferential creditors. Instruments and other stock were auctioned off in February Meanwhile in February rising costs and increased competition led Riley’s Fish Shack owner Adam Riley to liquidate his wholesale business Riley’s Fish Limited, in moves to protect jobs and focus on strengthening the Fish Shack. A statement of affairs shows the firm was liquidated with a deficiency of £427,511 and a list of 53 creditors, including a number of food and drink firms. Ms Jordan, who is a partner at Muckle LLP, added: “If directors are worried about the health of their business they shouldn’t wait to ask for help.

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Wage growth soars as Bank of England prepares to make interest rate decision

2025-08-15 01:52:32

New figures have indicated that wage growth has surged, with the Office for National Statistics (ONS) reporting a 5.9 per cent increase in annual regular pay, excluding bonuses, from November 2024 to January 2025. Including bonuses, total pay growth rose by 5.8 per cent, as reported by City AM. Liz Keown, ONS director, commented on the robustness of the pay growth, stating: "Overall pay growth remains relatively strong, with pay growth high in both the public and private sectors, despite the latter slowing slightly in the latest period." The unemployment rate held steady at 4.4 per cent. Earnings in the private sector climbed by 6.1 per cent, outpacing the public sector's 5.3 per cent rise. Work and Pensions Secretary Liz Kendall reflected on the implications of the data for government efforts, saying: "Today's figures demonstrate the scale of the challenge we're still facing to get Britain working again." She elaborated on the government's strategy, adding: "The reforms I have announced will ensure everyone who can work gets the active support they need, including through an extra £1 billion for personalised health, skills and employment support for sick and disabled people." PwC UK economist Paige Tao provided an analysis of the broader economic context: "As with the recent GDP figures, the latest labour market data shows the UK economy remains in 'wait-and-see' mode." Tao also noted the lack of surprises in the data, attributing it to employers' cautious stance amidst economic uncertainty: "These figures bring no big surprises, reflecting the ongoing cautious approach from employers in the face of economic uncertainty." "Today's release provides little respite for the Chancellor as she faces growing pressure ahead of her Spring Statement. Confidence needs a boost, and businesses will be watching carefully, with hiring and investment seemingly still on ice." As the Bank of England approaches its latest interest rate decision, all eyes are on the central bank which is expected, later on Thursday, to maintain the base rate at 4.5 per cent, aligning with numerous economists' forecasts. Previously in February, the Bank of England anticipated that inflation could soar as high as 3.7 this year, which is close to double the formal target of two per cent. According to Quilter Investors’ investment strategist, Lindsay James, "The Bank of England will have a rather treacherous path to navigate in the coming months. At midday today, the Bank will announce its latest monetary policy decision and is widely expected to hold rates at 4.5 per cent." In light of January’s unexpected inflation leap to three per cent, the consensus is that the Bank will likely refrain from any further rate cuts until there’s sufficient assurance that inflation is course-correcting. James also added, "Today's wage growth figures will also have done little to quell its fears." Commentary from Ruth Gregory, a UK economist at Capital Economics, suggests that the current surge in wage growth might heighten concerns among rate-setters regarding potential inflation escalations within the economy. "With wage growth still sticky that will increase the Bank's concerns about a resurgence in inflation and keep it on its "gradual and careful" interest rate cutting path," she said. Surveys have also pointed to a cooling labour market, with research last month by KPMG and the Recruitment and Employment Confederation (REC) showing a decline in vacancies. Suren Thiru, a director at ICAEW, said the UK's jobs market may soon "slide into choppier waters" when taxes bite next month – but added that the latest figures suggested that recruitment was already falling flat. "These figures suggest that the UK's jobs market had little momentum even before next month's twin hit of rising National Insurance and National Living Wage costs," he said. Businesses are making urgent plans ahead of Chancellor Rachel Reeves' £40bn tax raid in April. Analysts have warned that the tax hikes will exacerbate inflation as firms will likely pass on costs to consumers. Meanwhile, the Organisation for Economic Co-operation and Development (OECD) cited concerns about inflation as a reason for cutting its UK growth forecast. Their data has come under fire after the Financial Times reported earlier this month that the sample sizes of employment data "collapsed to only five individuals" in October 2023.

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