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☆ Regenerative tourism is the new gold standard for resort development. This destination on the Red Sea is leading the way.
▼ + stars: | 2024-04-03 | by ( Sponsor Post | ) www.businessinsider.com time to read: +7 min

A development organization in Saudi Arabia is changing perceptions of how regenerative tourism can work. He took a different course: Building a vertically-integrated real estate company to deliver The Red Sea. Across its two larger destinations, The Red Sea and AMAALA, RSG is creating 120,000 new jobs, directly and indirectly. Destinations like The Red Sea and AMAALA aim to build a broader, more leisure-focused tourism sector. This article was created by Insider Studios with Red Sea Global.

Persons: John Pagano, Pagano, St Regis, RSG, RSG —, King Abdullah, I've, University of Prince Mugrin, We're Organizations: Red Sea, St, Ritz, Carlton Reserve, imminently, King, King Abdullah University of Science and Technology, KAUST, Saudi, Hospitality, University of Prince, Tourism, Insider Studios, Sea Locations: Saudi Arabia, London, Bahamas, RSG, Central, Saudi, Red

☆ Barclays jumps 8.6% after announcing major strategic overhaul
▼ + stars: | 2024-02-20 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

LONDON — Barclays on Tuesday reported a fourth-quarter net loss of £111 million ($139.8 million) as the British lender announced an extensive strategic overhaul, boosting its shares more than 8.6% through the day. For the full year, net attributable profit came to £4.27 billion, down from £5.023 billion in 2022 and below a consensus forecast of £4.59 billion. Credit impairment charges were £552 million, up from £498 million in the fourth quarter of 2022. The business will now be divided into five operating divisions, separating the corporate and investment bank to form: Barclays U.K., Barclays U.K. Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank and Barclays U.S. Consumer Bank. Barclays is targeting total gross cost savings of £2 billion and an RoTE of greater than 12% by 2026.

Persons: C.S, Venkatakrishnan, Mariva Rivas, DBRS Morningstar, Rivas Organizations: Citigroup Inc, State Street Corp, Barclays Plc, HSBC Holdings Plc, LONDON, Barclays, Reuters, Momentum, Corporate Bank, Barclays Private Bank, Wealth Management, Barclays Investment Bank, Barclays U.S . Consumer Bank, CNBC, U.S Locations: Wharf

☆ London stock market trading resumes after small cap outage
▼ + stars: | 2023-12-05 | by ( ) www.reuters.com time to read: +1 min

Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. "Impacted securities are now in regular trading," LSEG said in a notice published on its website. FTSE 100 (.FTSE), FTSE 250 (.FTMC) and International Order Book securities - shares listed in London by overseas companies - had continued to trade normally, the exchange said. It is the second time LSEG has flagged a disruption to trading in smaller stocks on the London market in less than two months. In 2019, the London Stock Exchange suffered an almost two-hour outage that hit FTSE 100 and midcap stocks, which LSEG said was caused by a “technical software issue”.

Persons: Toby Melville, LSEG, Thomson, Danilo Masoni, Alun John, Amanda Cooper, Kirsten Donovan Organizations: London Stock Exchange, REUTERS, Tullow, CMC, FTSE, Thomson Reuters, Reuters, Thomson Locations: Canary Wharf, London, Britain, LSEG

☆ Private equity double-dips are a tasty faux pas
▼ + stars: | 2023-12-04 | by ( Aimee Donnellan | ) www.reuters.com time to read: +3 min

Private equity groups are trying something similar in the capital markets: successfully listing a company, then coming back for a second bite by buying it back once its stock craters. Take Synlab (SYAB.DE), listed at the height of a Covid-19 boom in testing by investment group Cinven. European companies listed by private equity groups since 2020 are trading, on average, at a 22% discount to their IPO price, according to data from Dealogic and Breakingviews calculations. The message from such deals, however, is that it’s better to buy a private equity-owned company after it has listed. Follow @aimeedonnellan on XCONTEXT NEWSPrivate equity firm Cinven on Sept. 29 offered 10 euros a share to take Covid test maker Synlab private.

Persons: Russell Boyce, Synlab, Cinven’s, Cinven, Sweden’s, Dr Martens, Elliott, Neil Unmack, Oliver Taslic Organizations: REUTERS, Reuters, Revenue, Thomson Locations: London, Britain, Cinven, France, Dealogic, Permira, Synlab

☆ Global banks face negative outlook, property stress in 2024 - Moody's
▼ + stars: | 2023-12-04 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Toby Melville/File Photo Acquire Licensing RightsLONDON, Dec 4 (Reuters) - Sluggish global growth, a higher risk of borrowers defaulting on loans and pressure on profitability mean that banks face a negative outlook in 2024, credit rating agency Moody's said on Monday. Pockets of stress in property markets in the Asia-Pacific region were also likely to continue, the report said. Moody's said in its report that it expected money to remain tight next year, lowering economic growth even as central banks are expected to start cutting rates. China's growth is also set to slow amid muted spending by consumers and businesses, weak exports and an ongoing property crunch, the report said. However, capital levels - which underpin the financial soundness of banks - are expected to broadly hold up, the report said.

Persons: Toby Melville, Moody's, Felipe Carvallo, Iain Withers, Chizu Organizations: Bank of, REUTERS, Moody's Investors Services, Bank, Moody's Investors Service, Thomson Locations: Canary, Bank of England, London, Britain, United States, Europe, Asia, Pacific

☆ New billionaires getting rich via inheritance rather than entrepreneurship in 'great wealth transfer'
▼ + stars: | 2023-11-30 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

A new wave of billionaires acquired more wealth through inheritance than entrepreneurship during the last year as a "great wealth transfer" picks up steam, a new report by UBS found. Fifty-three heirs received a total of $150.8 billion, which is higher than the $140.7 billion brought in by 84 new self-made billionaires, the report shows. "The great wealth transfer is gaining significant momentum," Benjamin Cavalli, head of UBS global wealth management strategic clients, told reporters in a briefing on Wednesday. Overall billionaire wealth is recovering, with the number of billionaires being up by 7% in the 12 months to early April of 2023, the UBS analysis showed. Billionaire wealth rose by 9% in this time and ended at around $12 trillion in nominal terms.

Persons: Benjamin Cavalli Organizations: UBS Locations: South Dock, Wharf, London, United Kingdom

Brokerage TD Cowen lowered its U.S. holiday spending estimate to 2% to 3% growth, from 4% to 5%, as it forecast flat Black Friday traffic. With many consumers squeezed by persistent inflation and high interest rates, U.S. holiday spending is expected to rise at the slowest pace in five years. A record 130.7 million people are expected to shop in stores and online in the U.S. on Black Friday this year, the National Retail Federation (NRF) estimates. In France, Italy, and Spain, most shoppers planned to buy clothing on Black Friday, with electronic goods coming second, according to a PwC survey. Thanksgiving Day discounts online peaked at about 28% for toys, while electronics had discounts as steep as 27%, Adobe said.

Persons: Shannon Stapleton, Cowen, Theresa Forsberg, “ It’s, ”, Jill Lizzo, she’s, “, I’m, Lizzo, PwC, hasn’t, Naomi Ojomo, Jeff Gennette, Barbie, John Roberts, Apple AirPods, Bergdorf Goodman, Nordstrom, Oscar de, Katherine Masters, Arriana McLymore, Helen Reid, Mimosa Spencer, Corina Pons, James Davey, Siddharth Cavale, Arriana, Deboarh Sophia, David Gaffen, Miral Fahmy, Nick Zieminski, Frances Kerry Organizations: Black, REUTERS, Shoppers, National Retail Federation, Insider Intelligence, Barclays, Macy's, Adobe Analytics, Adobe, Walmart, Argos, PlayStation, Apple, Thomson Locations: Westbury , New York, U.S, RALEIGH, N.C, New Milford , Connecticut, . U.S, Harlem, Manhattan, France, Italy, Spain, Zara, Canary Wharf, London, British, Paris, Madrid, New York, Raleigh , North Carolina, Bengaluru

☆ British investment managers get green light for tokenised funds
▼ + stars: | 2023-11-24 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Kevin Coombs/File Photo Acquire Licensing RightsLONDON, Nov 24 (Reuters) - British investment managers have got the go-ahead to develop tokenised funds, in which assets are split into smaller tokens backed by blockchain technology, the industry's trade body said on Friday. Tokenisation, or fractionalisation, of funds will enable a fund's assets to trade more cheaply and transparently and investors to buy into a wider range of assets, industry proponents say. Funds authorised by Britain's Financial Conduct Authority can take the first steps towards offering tokenised funds, provided the investments are in mainstream assets and valuation and settlement arrangements don't change, the Investment Association said in a statement. Scrimgeour is chair of a working group which is working with the FCA and Britain's finance ministry to open up opportunities for tokenised funds. Investment managers and exchanges in the United States, Europe and Asia have already taken tentative steps in offering tokenised funds.

Persons: Kevin Coombs, tokenisation, Michelle Scrimgeour, Scrimgeour, Carolyn Cohn, Elizabeth Howcroft, Sharon Singleton Organizations: REUTERS, Britain's Financial, Investment Association, Legal, General Investment Management, FCA, BlackRock, Investment, Thomson Locations: Canary Wharf, London, Britain, United States, Europe, Asia

☆ LSEG names Publicis finance chief Michel-Alain Proch as CFO
▼ + stars: | 2023-11-20 | by ( ) www.reuters.com time to read: 1 min

Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo Acquire Licensing RightsNov 20 (Reuters) - The London Stock Exchange Group (LSEG.L) on Monday named Michel-Alain Proch as its new finance chief, starting March 1, 2024. Proch, who currently serves as group CFO of advertising group Publicis <PUBP.PA>, takes on the role from Anna Manz, who stepped down in May. Last week, LSEG, which owns London's 300-year old stock exchange, raised its mid-term growth guidance to "mid-to-high single" digits and said it would return a billion pounds to shareholders in 2024 as it looks beyond the integration of data and analytics company Refinitiv. Reporting by Eva Mathews in Bengaluru; Editing by Sonia CheemaOur Standards: The Thomson Reuters Trust Principles.

Persons: Toby Melville, Michel, Alain Proch, Proch, Anna Manz, Eva Mathews, Sonia Cheema Organizations: London Stock Exchange, REUTERS, Thomson Locations: Canary Wharf, London, Britain, Bengaluru

☆ Iraq becomes EBRD shareholder, Senegal and Ghana apply to join
▼ + stars: | 2023-11-16 | by ( ) www.reuters.com time to read: +1 min

People walk past the new headquarters of the European Bank for Reconstruction and Development (EBRD) in Canary Wharf, London, Britain, September 14, 2023. REUTERS/Alishia Abodunde/File photo Acquire Licensing RightsLONDON, Nov 16 (Reuters) - Iraq has become the 74th member of the European Bank for Reconstruction and Development, the multilateral lender said on Thursday, while Ghana and Senegal have also applied to join. Iraq first submitted its request to join the bank in 2018, and its shareholder status enables it to apply to become a recipient economy, which would unlock EBRD finance and policy support. "When the time comes, we are looking forward to starting work in Iraq, applying our expertise to developing its economy," EBRD President Odile Renaud-Basso said in a statement. Renaud-Basso told Reuters that Senegal and Ghana had submitted applications to join the bank in the latest sign of its push into sub-Saharan Africa.

Persons: Alishia, Odile Renaud, Basso, Renaud, Libby George, Marc Jones, Christina Fincher Organizations: European Bank for Reconstruction, REUTERS, Reuters, Ukraine, Thomson Locations: Canary Wharf, London, Britain, Iraq, Ghana, Senegal, Saharan Africa, Benin, Ivory Coast, Europe, East, North Africa, Asia

People walk past the new headquarters of the European Bank for Reconstruction and Development (EBRD) in Canary Wharf, London, Britain, September 14, 2023. REUTERS/Alishia Abodunde/File photo Acquire Licensing RightsSummaryCompanies Move follows Hungary govt exit from Erste unitGovt raising financing for airport transactionExit 'good news' for sector's stability -EBRDBUDAPEST, Nov 15 (Reuters) - The European Bank for Reconstruction and Development is selling its 15% stake in Erste Group Bank's (ERST.VI) Hungarian unit back to the Austrian group after the Hungarian government's recent exit from the bank, a top EBRD official told Reuters. Austrian lender Erste said on Friday it was repurchasing a 15% stake in its Hungarian subsidiary, currently held by Hungarian state-owned Corvinus International Investments. Francis Malige, EBRD managing director of financial institutions, said the investment had been designed to help the Hungarian bank recapitalise while supporting a positive relationship with the authorities. "We received a call notice from Erste last Friday and are proceeding with the sale of our stake to the group, based on terms agreed during our 2016 investment."

Persons: Alishia, Viktor Orban, Marton Nagy, Francis Malige, Malige, Orban, Gergely Szakacs, Louise Heavens Organizations: European Bank for Reconstruction, REUTERS, Erste Group, Reuters, Economic, Budapest Airport, Austrian, Erste, International Investments, Erste Bank, Thomson Locations: Canary Wharf, London, Britain, Hungary, Erste, BUDAPEST, Austrian, Hungarian, Erste Bank Hungary

☆ Strong pay growth in UK spreads to public sector, survey shows
▼ + stars: | 2023-11-13 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Afolabi Sotunde/file photo Acquire Licensing RightsLONDON, Nov 13 (Reuters) - Strong pay growth in Britain's private sector will be matched in the public sector in the year ahead, according to a survey which showed no sign of an easing of inflationary heat in the jobs market. The Chartered Institute of Personnel and Development (CIPD) said employers in the private and public sectors both planned 5% pay rises, meaning public workers were on course for their biggest pay rise since CIPD began its surveys in 2012. The CIPD survey showed 51% of public-sector employers reported hard-to-fill vacancies compared to 38% of private-sector employers. "There remains strong demand for people, particularly in the public sector. It’s no surprise therefore that employers are expecting pay increases to match that of the private sector to remain competitive."

Persons: Afolabi, CIPD, Rishi Sunak, Jon Boys, William Schomberg, Andy Bruce Organizations: REUTERS, Chartered Institute, Personnel, Bank of England, Reuters, Thomson Locations: Canary Wharf, London, Britain

☆ UK economy flatlines as finance minister decries inflation drag
▼ + stars: | 2023-11-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

The U.K. economy flatlined in the third quarter, initial figures showed Friday. Services sector output dropped 0.1% on the quarter, but the decline was offset by a 0.1% increase in construction performance, while the production sector flatlined. U.K. Chancellor of the Exchequer Jeremy Hunt said high inflation remains the "single greatest barrier to economic growth" in the country, with the consumer price index remaining at 6.7% year-on-year in September. While somehow avoiding a recession this year, today's no growth reading means the UK economy is flatlining with only 0.2% economic growth in the last six months." As the Bank of England stated earlier this month that more than half of the impact of higher interest rates on the level of GDP is still to come through, the U.K. economy faces growing headwinds as we approach 2024."

Persons: Jeremy Hunt, Hunt, Lindsay James Organizations: Gross, Services, Chancellor, Quilter Investors, Bank of England Locations: Canary, London, U.K

☆ UK finance firms face $510 million levy to fund 2024/25 compensation claims
▼ + stars: | 2023-11-09 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Hannah McKay/File Photo Acquire Licensing RightsLONDON, Nov 9 (Reuters) - Britain's Financial Services Compensation Scheme (FSCS) has forecast imposing a levy of 415 million pounds ($510 million) against UK financial firms to fund 2024/25 claims for redress from customers suffering poor advice and insurance provider failures. This indicative figure is higher than for 2023/24, primarily due to larger surpluses that were carried over from the 2022/23 financial year which reduced the 2023/24 levy to 270 million pounds, the FSCS said. The levy is likely to include cover on self-invested personal pension (SIPP) operator failure claims and pay-outs for insurance firm failures that occurred in previous financial years, it added. "FSCS directly contributes to trust and stability in our financial services system and makes a genuine difference to consumers' lives," Martyn Beauchamp, Interim Chief Executive of FSCS said in a statement. Most of our compensation continues to be paid out for poor financial advice and for legacy insurance provider failures - both of which include some of the most complex defaults and claims we handle," he added.

Persons: Hannah McKay, Martyn Beauchamp, FSCS, Sinead Cruise, Simon Jessop Organizations: REUTERS, Britain's, Interim, Thomson Locations: Bishopsgate, London, Britain

☆ Canary Wharf may yet avoid once-a-decade upheaval
▼ + stars: | 2023-11-06 | by ( Yawen Chen | ) www.reuters.com time to read: +4 min

LONDON, Nov 6 (Reuters Breakingviews) - Canary Wharf tends to have a new owner every decade. A recent 300 million pound equity injection implies they will buck the trend. Brookfield and the QIA, which own the estate’s developer Canary Wharf Group through a 50-50 partnership, ostensibly look to be backing a losing horse. Factoring in all its assets on the Canary Wharf estate, Brookfield as of September valued it all at $6.1 billion, or 5 billion pounds – over 2 billion pounds more than what the duo put in eight years ago. Canary Wharf could be owned by highly leveraged, shallow-pocketed types.

Persons: –, Paul Reichmann’s Olympia, Morgan, Breakingviews, dory, George Hay, Oliver Taslic Organizations: Reuters, HSBC, HK, London Docklands, Qatar Investment Authority, Canary, York, Morgan Stanley, Jefferies, Reuters Graphics Reuters, Brookfield, Wharf Group, Thomson Locations: Brookfield, –, CWG, City, Wharf

☆ Barclays narrowly beats profit forecasts on strong consumer, credit card business
▼ + stars: | 2023-10-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

LONDON — Barclays on Tuesday reported a net profit of £1.27 billion ($1.56 billion) for the third quarter, slightly ahead of expectations as strong results in its consumer and credit card businesses compensated for weakening investment bank revenues. Venkatakrishnan said the bank "continued to manage credit well, remained disciplined on costs and maintained a strong capital position" against a "mixed market backdrop." Barclays' corporate and investment bank (CIB) saw income decrease by 6% to £3.1 billion, with the bank citing reduced client activity in global markets and investment banking fees. The bank did not announce any new returns of capital to shareholders after July's £750 million share buyback announcement. The cost-income ratio in the third quarter was 63%, but the bank has set a medium-term target of below 60%.

Persons: Venkatakrishnan Organizations: LONDON, Barclays, Reuters, C.S, Barclays U.K, Q423 Locations: London

☆ Commodity-linked stocks drag FTSE 100 lower, Indivior lifts midcaps
▼ + stars: | 2023-10-23 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Toby Melville/File photo Acquire Licensing RightsSummaryCompanies FTSE 100 off 0.1%, FTSE 250 adds 0.1%Oct 23 (Reuters) - The UK's FTSE 100 slipped on Monday as rising government bond yields and losses in commodity-linked stocks kept equities under pressure, while Indivior shares boosted the midcap index on a lawsuit settlement. The commodity-focused FTSE 100 (.FTSE) was down 0.1% as of 7:08 GMT, while the mid-cap FTSE 250 (.FTMC) edged 0.1% higher. Precious metal miners (.FTNMX551030) lost 1.0% after gold prices slipped as U.S. dollar and Treasury yields strengthened. Indivior (INDV.L) shares added 7.0% after the drugmaker said it would pay $385 million to settle a lawsuit. Investors will be on the lookout for a slew of banks reporting results throughout the week with major lender Barclays (BARC.L) scheduled to post results on Tuesday.

Persons: Toby Melville, Khushi Singh, Janane Organizations: London Stock Exchange, REUTERS, FTSE, Treasury, pharma, Barclays, Meta, Microsoft, Thomson Locations: Canary Wharf, London, Britain, Israel, Bengaluru

☆ LSEG says on track to meet 2023 growth targets
▼ + stars: | 2023-10-19 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. “LSEG delivered another quarter of strong, broad-based growth," LSEG Chief Executive David Schwimmer said in a statement, adding that he was confident that total income growth for the full year will be towards the upper end of a guidance range of 6% to 8%. Data and analytics, which now make up the bulk of LSEG income, was up 7.2% year on year at 1.29 billion pounds ($1.57 billion) on improving sales, rising retention of existing customers and a higher annual price increase, LSEG said. Organic ASV growth remains broadly around the level seen in the first and second quarters, LSEG said, adding that all 2023 guidance is reiterated, including EBITDA margin and capital expenditure. JPMorgan Cazenove analysts said third-quarter gross profit was in line with company-compiled consensus, but "most importantly" organic ASV growth recovered after dipping to 6.9% in the second quarter.

Persons: Toby Melville, “ LSEG, David Schwimmer, LSEG, JPMorgan Cazenove, Huw Jones, Mark Potter, Sinead Cruise Organizations: London Stock Exchange, REUTERS, JPMorgan, ASV, RBC, Microsoft, Thomson Locations: Canary Wharf, London, Britain

☆ UK inflation holds steady for September after Bank of England pauses rate hikes
▼ + stars: | 2023-10-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

LONDON — U.K. inflation came in at 6.7% in September, slightly ahead of expectations and unchanged from the previous month. For August, the U.K. consumer price index surprised with a dip to 6.7%, below expectations, which sparked the Bank of England to end a run of 14 straight interest rate hikes. The bank had been hiking rates consistently since December 2021 in a bid to rein in inflation, taking its main policy rate from 0.1% to a 15-year high of 5.25% in August. The market is pricing around a 77% chance that the Bank holds rates steady again at its next meeting on November 2nd. For now, the higher for longer interest rate narrative will continue to persist," he said Wednesday in an emailed note.

Persons: Jeremy Hunt, Marcus Brookes, Brookes, Hetal Mehta, BoE Organizations: LONDON, Reuters, National Statistics, Chancellor, Bank of, Bank, Quilter Investors, Bank of England's, Bank of England Locations: Canary, London, Bank of England, British, James's

☆ UK regular pay growth slows for first time since January
▼ + stars: | 2023-10-17 | by ( David Milliken | ) www.reuters.com time to read: +4 min

Private-sector regular pay - the component looked at most closely by the BoE - saw annual growth slow to 8.0% in the three months to August, from 8.1%. Regular pay, adjusted for CPI inflation, grew by an annual 0.7% in the three months to August. Reuters GraphicsSLUGGISH ECONOMYBank of England Chief Economist Huw Pill said on Monday that fast rates of nominal pay growth stood at odds with most other labour market measures, which have pointed to a slowing economy. The number of job vacancies in the three months to September fell to a two-year low of 988,000, Tuesday's data showed. Unemployment figures and other related labour market data will not be published until Oct. 24, after the ONS said on Friday it needed more time to take account of low response rates.

Persons: Kevin Coombs, BoE, James Smith, Jeremy Hunt, Rishi Sunak, Huw Pill, payrolls, Ashley Webb, Webb, Sachin Ravikumar, William Schomberg, Bernadette Baum Organizations: REUTERS, LONDON, Bank of England, Britain's, National Statistics, Reuters, U.S, Bank, England's, ING, Private, of England, International Monetary, Capital Economics, Thomson Locations: Canary Wharf, London, Britain

☆ UK CFOs lose their appetite for debt after rates climb -Deloitte
▼ + stars: | 2023-10-15 | by ( ) www.reuters.com time to read: +2 min

A similar proportion said debt sales were unattractive while equity finance became more popular. "Higher interest rates have flipped a decade-old consensus which was previously in favour of debt finance," Ian Stewart, chief economist at Deloitte, said. "Finance leaders are preparing for a period of high interest rates with predicted rates falling only slightly over the next year." The Bank of England raised rates 14 times in a row between December 2021 and August this year, before pausing its increases in September. The CFOs quizzed by Deloitte on average expected the BoE to cut Bank Rate to 4.75% in a year's time from 5.25% now.

Persons: Suzanne Plunkett, Ian Stewart, Top BoE, BoE, William Schomberg, Kylie MacLellan Organizations: REUTERS, Finance, Deloitte, Bank of, Thomson Locations: London, Bank of England, Israel

☆ UK stocks fall after Bailey's hawkish tone on interest rates
▼ + stars: | 2023-10-13 | by ( Khushi Singh | ) www.reuters.com time to read: +2 min

The commodity-focussed FTSE 100 (.FTSE) was down 0.1%, while the mid-cap index FTSE 250 (.FTMC) lost 0.5%. The yield on the UK benchmark bond edged higher after Bailey's comments but remained lower for the day at 4.402%. "Although higher dollar and yields would typically weaken gold, the geopolitical concerns are pushing gold higher," said Giles Coghlan, chief market analyst at GCFX. Industrial metal miners (.FTNMX551020) also advanced 0.6% following a rise in copper prices. UK wealth manager St James's Place (SJP.L) was pushed by regulators to overhaul fees, with the stock tumbling 13.5% to the bottom of the FTSE 100.

Persons: Toby Melville, Ashmore, Andrew Bailey, BoE Governor Andrew Bailey, Giles Coghlan, Coghlan, St James's, Khushi Singh, Sonia Cheema, Sohini Organizations: London Stock Exchange, REUTERS, Bank of England, Mining, Shell, BP, St, Thomson Locations: Canary Wharf, London, Britain, James's, Iran, Israel, China, Bengaluru

☆ UK economy grew 0.2% in August, propped up by services sector
▼ + stars: | 2023-10-12 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

U.K. gross domestic product grew by 0.2% in August, the Office for National Statistics estimated Thursday, partially recovering from a downwardly revised 0.6% contraction in July. "It does not change the outlook for the Bank of England and confirms that the Bank Rate does not have much upside from here, but will remain at current levels for an extended period." The Bank of England last month ended a run of 14 consecutive interest rate hikes after data showed inflation was running below expectations. "The UK has grown faster than France and Germany since the pandemic and today's data shows the economy is more resilient than expected," U.K. Finance Minister Jeremy Hunt said Thursday. U.K. headline inflation dipped to an annual 6.7% in August, below expectations but still well above the Bank's 2% target.

Persons: Mathieu Savary, Jeremy Hunt, Thiru Organizations: Citibank, HSBC, National Statistics, BCA Research, Bank of England, of England, Bank, Finance, Institute of Chartered Accountants, Wales, Bank of England's Locations: Wharf, London, United Kingdom, U.K, European, France, Germany, England

☆ KPMG hit with record fine for 'textbook failure' in Carillion audits
▼ + stars: | 2023-10-12 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

The Financial Reporting Council (FRC) said the number, range, and seriousness of the deficiencies in the audits of Carillion were exceptional, resulting in the watchdog's highest ever fine. On occasions, KPMG audit partner Peter Meehan told his team to record his review of working papers without having done a review, the FRC said. Meehan, no longer with KPMG, was fined 350,000 pounds after a discount to reflect his cooperation and admission of failures. It would have been 30 million pounds, but was discounted due to admissions and co-operation by the auditor. KPMG was fined 14.4 million pounds last year after providing false and misleading information to the FRC during spot checks on audits of Carillion and outsourcing firm Regenersis.

Persons: Reinhard Krause, Carillion, Richard Moriarty, Moriarty, Peter Meehan, Meehan, Jon Holt, Holt, Huw Jones, Sharon Singleton, Mark Potter Organizations: KPMG, Canary, REUTERS, BHS, Council, FRC, PwC, Deloitte, EY, Thomson Locations: London, Britain

☆ UK housing market challenging but rate pause offers hope -RICS
▼ + stars: | 2023-10-11 | by ( ) www.reuters.com time to read: +2 min

The Royal Institution of Chartered Surveyors (RICS) house price balance, which measures the difference between the percentage of surveyors seeing rises and falls in house prices, edged down to -69 after August's sharp drop to -68. Echoing other gauges of British house prices, RICS' latest figure was the weakest since February 2009 and was below the median forecast of -63 in a Reuters poll of economists. Britain's housing market boomed during the coronavirus pandemic as demand for homes with more space surged, but it has been a victim of the BoE's run of 14 interest rate hikes, which began in December 2021. "Although the decision to pause monetary policy tightening a few weeks ago provided a glimmer of relief for the market, interest rates are likely now set to remain on hold for a prolonged period," Parsons said. The weak state of the housing market has hurt companies such as building materials supplier Travis Perkins (TPK.L), which on Wednesday downgraded its annual profit forecast by as much as 27%.

Persons: Henry Nicholls, RICS, Tarrant Parsons, Parsons, Travis Perkins, William Schomberg, Kylie MacLellan Organizations: REUTERS, Bank, Royal Institution, Chartered Surveyors, Thomson Locations: London, Britain

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