Reeves wades in to motor finance scandal in bid to soften £30bn payout CITY AM says shares in some of Britain’s biggest motor finance lenders have surged today after the Chancellor Rachel Reeves revealed plans to intervene in a mis-selling scandal which could cost the industry billions of pounds.
UK ranked second-best investment target by global CEOs The UK has been ranked as the second most attractive country to invest in by global CEOs, behind only the US, as British CEOs feel confident about growth in the country’s economy. This is the first time that the UK has been ranked second in the 28-year history of PwC’s CEO Survey. “Our CEO survey findings are a vote of confidence in the UK as a place for business and investment,” said Marco Amitrano, senior partner at PwC UK. “The UK’s relative stability at a time of instability should not be underestimated, nor should…
Growth push will test risk appetite CITY AM says the Financial Conduct Authority’s (FCA) push to slash red tape and unleash growth in the City will test the UK’s appetite for risk, its chair has warned, accepting that two of its new proposals could open the door to more fraud and mortgage defaults. Donald Trump’s inauguration makes the front page with the headline: ‘Look who’s back’
‘Golden age of America begins now’ The FT reports Trump is returning to the White House with broader support than when he left in 2021. The paper says the 47th president has pledged to “deliver quickly on the populist and nationalist platform that swept him to victory in last year’s presidential race”. The paper highlights that Trump has repeated his vow to take back control of the Panama Canal and withdraw the US from the Paris climate accord. He has so far stopped short of announcing the new import tariffs pledged before the election.
Trump and his top advisers are finalising about 100 executive actions that he will sign in his first days in office beginning on Monday
UK economy: Interest rate cut a ‘certainty’ in February after weak data A February interest rate cut is a “certainty” after new data suggests that inflationary pressures are weaker than previously thought, but the path beyond remains unclear. Economists expect the Bank of England to back a third rate cut next month after two important pieces of economic data were published this week. Figures out on Wednesday showed that the headline rate of inflation fell to 2.5 per cent in December, down from 2.6 per cent previously and below expectations. Rate-setters will likely have been paying particular attention to services…
‘Student Tax’ to hit graduates on minimum wage by April Thousands of graduates will find themselves stranded in their home town, unable to root out professional opportunities, when April’s hike in the minimum wage drags them into the threshold of student loan repayments, a top financial services firm has warned. The government announced an above inflation rise in the National Living Wage of 5.6 per cent as part of October’s Budget, prompting warnings of price rises and hiring freezes from business lobby groups. But according to Blick Rothenberg recent graduates will bear much of the brunt, with those earning as…
Millionaires leave Britain in record numbers since Labour took power Millionaires have left Britain in record numbers since the new Labour government took power amid a crackdown on non-dom residents and sweeping tax hikes. The Treasury is facing fresh calls to reverse plans to abolish the non-dom tax status in April and replace it with a residence-based regime that also ropes in non-doms’ overseas assets into UK inheritance tax (IHT). Tax advisers are also reporting that a growing number of UK-based entrepreneurs are preparing to leave following the tax rises announced in Rachel Reeves’ Autumn Budget. The UK lost a…
DONALD TRUMP’S critics have often accused him of buffoonery and isolationism. Yet even before taking office on January 20th he has shown how much those words fall short of what his second term is likely to bring.
Sir Keir Starmer, Britain’s prime minister, said he could strike a trade deal with Donald Trump and avoid punitive tariffs on the UK as he dismissed as “noises off” Elon Musk’s strident criticism of his leadership.
BP’s under-fire boss cuts 4,700 jobs in fight to revive shares The Middle East is “on tenterhooks”, the Financial Times says, as a ceasefire deal between Israel and Hamas “nears [the] finish line”. Featured is an image of Palestinians jostling for food aid in Deir al-Balah, Gaza, as “the world waits for Israel to approve” the agreement. The paper leads on BP cutting “more than 5% of its workforce”, as its “under-fire boss” fights to save costs and “revive a share price that has lagged behind rivals”.
“GDP growth slowed markedly in the summer when the new government began warning of tax hikes,” said Rob Wood, chief UK economist at Pantheon Macroeconomics.
“The “multiphase agreement” reportedly includes a truce, the release of Israeli hostages held by Hamas, and the freedom of Palestinian prisoners”
Tulip leaves CITY AM reports on the resignation of Treasury Minister Tulip Siddiq who stepped down over fears her recent scandal will become a distraction. The paper also reports that businesses have lost confidence – now at the lowest since Liz Truss crashed the economy in 2022.
Siddiq quits over London properties linked to ousted Bangladeshi regime The FT leads with Tulip Siddiq announcing her resignation. The paper says she stepped down over fears her situation would be a distraction and harm the government’s resignation. The paper highlights that the prime minister has kept the door open for her return. The paper reports Elon Musk is being used as a broker in a deal to stop TikTok’s US shutdown. In other USA news on the front page, there is a picture of the LA wildfires with a story reporting strong winds are raising the threat.
Sir Keir Starmer has declined to confirm that Rachel Reeves will be Chancellor at the next general election. The Prime Minister was asked about Reeves’ role following a speech in London on artificial intelligence (AI) and insisted he was “completely confident” in her. Continue Reading …
EU yards carry out crucial repairs for Russian Arctic gas tanker fleet European shipyards have been providing essential maintenance to Russian ice-class tankers, enabling the continued transport of liquefied natural gas (LNG) from Russia’s Yamal plant in the Arctic, despite stringent Western sanctions targeting Russia’s energy sector.
Extra bank holiday 2025: Hospitality industry slams Number 10 decision Bank holidays 2025: Number 10 has announced the additional day off has been canned It had been rumoured that an additional bank holiday would make its way onto the calendar for 2025 to earmark the end of WWII, but Number 10 has announced that the extra day off won’t be going ahead. UK hospitality bodies have slammed the government’s decision to can the extra bank holiday. Restaurant and bar groups say that bank holidays provide an extra financial boost to the hospitality sector. Their messages echo calls made in 2022…
Pound sterling continues to suffer as traders pare bets on Fed rate cuts Sterling suffered again on Monday, falling to a 14-month low against the dollar amid a global sell-off prompted by concerns that the US Federal Reserve will only cut interest rates once this year. The pound was trading as much as 0.7 per cent lower against the dollar this morning, dropping to $1.211. It was the worst performing currency against the dollar in the G-10. “Sterling continues to trade on a soft footing and its losses could extend this week,” Chris Turner, an FX analyst at ING said,…
Mark Zuckerberg’s unexpected ‘free speech’ overhaul of Meta’s content moderation has sparked concerns among advertisers that it will lead to a surge of harmful content and misinformation across the social media platform. Multiple advertising bosses told the Financial Times that Meta’s move to end its fact-checking programme and weaken hate speech policies could cost the platform, where marketing represents the majority of its $135bn in annual sales, if brands fear their adverts might run next to toxic content. Continue Reading …
British Steel is poised to scrap plans to return steelmaking to Teesside in a big jobs blow for northeast England. The Chinese-owned group had planned to build one “green steel” furnace in Teesside — creating hundreds of jobs in the process — and another at its main works in Scunthorpe, Lincolnshire, under a major business restructuring. However, both furnaces will now be built in Scunthorpe under plans being discussed with Labour ministers. Continue Reading …
Price hikes are coming as firms battle Reeves tax raid, Bank of England survey suggests Inflationary pressures are likely to persist this year as firms prepare to hike prices to combat the effects of Rachel Reeves’ tax-raiding Budget, a survey from the Bank of England suggests. The Bank’s latest decision maker panel, which surveys finance chiefs around the country, showed that firms’ inflation expectations picked up in December. Expected price growth in the year ahead increased to four per cent, up from 3.8 per cent the month before. This was the highest level since April last year. The survey also…
Pound sterling continues to sink as UK economy ‘clearly on very shaky ground’ Pound sterling has continued to sell off this morning, and UK government bond yields have ticked higher as UK risk assets remain under pressure. The pound fell below $1.23 against the dollar in early trade and is currently down 0.7 per cent against the dollar and 0.6 per cent against the euro. Meanwhile, the domestically focused FTSE 250 index opened lower 0.6 per cent. The day after 30-year government bond yields reached their highest this century, yesterday 10-year government yields jumped to 4.82 per cent, the highest…
UK fintech funding races ahead of Europe According to new figures, the UK’s fintech sector was beaten by only the US on total investment last year despite a sharp fall in funding on 2023 levels. As global fintech investment fell 20 per cent globally to $43.5bn (£35.2bn), the UK attracted $3.6bn (£2.9bn) of total funding, more than the next five European countries combined, according to data from Innovate Finance. Despite the sharp fall in new capital coming into the sector, industry figures are hoping for a resurgence in 2025. “When we’ve been speaking with investors, they’re positive about 2025,” Janine…
UK government borrowing costs continued rising on Wednesday, and the value of sterling dropped as investors recalibrated their views on the UK economy.
Copyright WTX News 2024
