DIRS.INFO The most relevant business & tech news

☆ UK economy flat in February as strikes and inflation bite — and the IMF delivers reality check
▼ + stars: | 2023-04-13 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

LONDON — The U.K. economy flatlined in February as widespread industrial action and persistently high inflation stymied activity. Large-scale strike action has been carried out in recent months by teachers, doctors, civil servants and rail workers, among others — members of the sectors that were the largest contributors to the fall in February services output. The independent Office for Budget Responsibility no longer expects the U.K. economy to enter a technical recession in 2023 — defined as two consecutive quarters of contractions. "Industrial strike action was the primary root cause of stagnating growth in the U.K. over the month. Much of the population also remains mired in a cost-of-living crisis, as inflation continues to vastly outpace wage growth, exacerbating the threat of further industrial action.

☆ Experts fear deteriorating parking lots could collapse under the weight of heavy electric vehicles, says report
▼ + stars: | 2023-04-09 | by ( Isobel Van Hagen | ) www.businessinsider.com time to read: +3 min

Experts in the UK are concerned the weight of electric cars could cause old parking lots to collapse. Many multi-story parking lots have structural flaws due to a lack of maintenance, The Telegraph reported. Electric vehicles are significantly heavier than gasoline-powered cars, given the weight of the batteries necessary to power them. Whapples and Russell Simmons, chair of the British Parking Association's structures group, have suggested new guidance that recommends adding higher load-bearing weights to deteriorating parking lots to help adapt to the weight of electric cars. Over the years, electric cars have become increasingly popular due to energy efficiency and the promise of a more environment-friendly form of transportation.

☆ Shadow banks: The other financial firms worrying investors and regulators
▼ + stars: | 2023-04-06 | by ( Anna Cooban | ) edition.cnn.com time to read: +7 min

London CNN —The International Monetary Fund warned this week of “vulnerabilities” among so-called non-bank financial institutions, saying global financial stability could hinge on their resilience. The term encompasses financial firms, other than banks, that provide all manner of financial services, including lending to households and businesses. The sector has grown strongly since the global financial crisis in 2008, with its asset base expanding by 7% a year on average, according to FSB data. Non-banks that provide credit are known as “shadow banks,” although the term is often used imprecisely to mean all non-banks. Shadow banks now make up about 14% of the world’s financial assets and, like many non-banks, operate without the same level of regulatory oversight and transparency as banks.

LONDON, March 31 (Reuters) - Britain's digital banks will need support over the next few weeks and months to help them cope with the market fallout from the collapse of Silicon Valley Bank, a trade body representing UK fintechs said on Friday. A neobank, or digital bank, is a bank whose services are accessed via an app or website as opposed to having physical branches. He said that challenger banks - lenders which are usually smaller and newer than the big high-street banks - in Britain could be at risk. Hirt said that Innovate Finance has been offering "close support" to challenger banks to help them navigate the "turbulence" in the sector. BoE governor Andrew Bailey told lawmakers this week that the central bank was on alert amid the global turmoil, but added that Britain was not experiencing stress linked to the demise of Silicon Valley Bank.

☆ Bank rescue real estate turns from dowry to downer
▼ + stars: | 2023-03-30 | by ( Aimee Donnellan | ) www.reuters.com time to read: +3 min

Unlike many banks which got into trouble back in 2008, the Swiss lender has flogged much of its prime real estate. In the last financial crisis prime real estate played a big part of bank rescues. When Barclays (BARC.L) bought Lehman Brothers’ U.S. capital markets business in September 2008 the deal included the bankrupt investment bank’s headquarters. Today there is less real estate underpinning bank values. For buyers preparing to rescue embattled banks, real estate has turned from a dowry to a downer.

☆ UK diplomat criticizes Russia for 'astounding levels of incompetence' in Ukraine, labeling it a 'so-called superpower'
▼ + stars: | 2023-03-30 | by ( Tom Porter | ) www.businessinsider.com time to read: +3 min

A British diplomat has described a series of catastrophic failings by Russia in Ukraine. Russia has threatened to respond to the UK arming Ukraine with armor-piercing weapons. "With support from their partners, Ukraine has shown that agility and ingenuity can have a devastating effect against a so-called superpower," Stubbs said. "Try as they might to present an alternate reality to the ground truth with an increasingly ridiculous carpet of disinformation, the astounding levels of incompetence in Russia's military leadership that have eroded Russia's military reputation are clear for all to see," he said. Russia's President Vladimir Putin recently said Russia would "respond accordingly" if UK plans to deliver armor-piercing shells to Ukraine go ahead.

The contracted use of hotels was envisioned as a temporary measure, but adds strain to the asylum accommodation system. The cost of housing asylum seekers in hotels has increased over the past year, now exceeding £6 million ($7.4 million) a day, the Home Office told CNN in a statement. On Tuesday, the UK Home Office also said Afghans who have been living in temporary UK accommodation for 18 months will be given three months’ notice to move out of so-called bridging hotels. There are currently around 8,000 Afghans living in 59 bridging hotels in the UK, according to the Home Office. But campaigners also warned that the plan could exacerbate the trauma experienced by people displaced by political strife and conflict in Afghanistan.

☆ EU agrees to double renewables by 2030 and UK unveils its long-awaited climate plan
▼ + stars: | 2023-03-30 | by ( Reuters Emily Blumenthal | Emily Blumenthal | ) edition.cnn.com time to read: +4 min

Two big announcements in European climate policy came Thursday. In 2021, the bloc got 22% of its energy from renewable sources, though the level varied significantly between countries. Sweden leads with a 63% renewable energy share, while in Luxembourg, Malta, the Netherlands and Ireland, renewable sources make up less than 13% of total energy use. UK climate strategyThe United Kingdom also announced its own climate strategy Thursday. It includes support for offshore wind energy, electric vehicles, green hydrogen, nuclear technology, home insulation and home heat pumps.

March 29 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in developing systems more powerful than OpenAI's newly launched GPT-4, in an open letter citing potential risks to society and humanity. "Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable," the letter said. The letter detailed potential risks to society and civilization by human-competitive AI systems in the form of economic and political disruptions, and called on developers to work with policymakers on governance and regulatory authorities. Rather than pause research, she said, AI researchers should be subjected to greater transparency requirements. "If you do AI research, you should be very transparent about how you do it."

March 28 (Reuters) - Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in developing systems more powerful than OpenAI's newly launched GPT-4, in an open letter citing potential risks to society and humanity. "Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable," the letter said. The letter detailed potential risks to society and civilization by human-competitive AI systems in the form of economic and political disruptions, and called on developers to work with policymakers on governance and regulatory authorities. Co-signatories included Stability AI CEO Emad Mostaque, researchers at Alphabet-owned (GOOGL.O) DeepMind, as well as AI heavyweights Yoshua Bengio and Stuart Russell. Musk, whose carmaker Tesla (TSLA.O) is using AI for an autopilot system, has been vocal about his concerns about AI.

☆ With ChatGPT hype swirling, UK government urges regulators to come up with rules for A.I.
▼ + stars: | 2023-03-29 | by ( Ryan Browne | ) www.cnbc.com time to read: +6 min

In the white paper, the Department for Science, Innovation and Technology (DSIT) outlined five principles it wanted companies to follow. Rather than establishing new regulations, the government is calling on regulators to apply existing regulations and inform companies about their obligations under the white paper. "When parliamentary time allows, legislation could be introduced to ensure regulators consider the principles consistently." On Monday, Secretary of State Michelle Donelan visited the offices of AI startup DeepMind in London, a government spokesperson said. Not everyone is convinced by the U.K. government's approach to regulating AI.

☆ Bank of England calls for urgent action on funds that nearly toppled UK financial system
▼ + stars: | 2023-03-29 | by ( Julia Horowitz | ) edition.cnn.com time to read: +3 min

London CNN —The Bank of England has called for urgent action to address a weak spot in the UK financial system as persistent worries about the global banking sector threaten to unleash fresh market turmoil. LDI crisisThe role of LDI funds in the UK financial system was thrown into the spotlight in the fall after the Truss budget triggered an unprecedented selloff in UK government bonds. This had an alarming knock-on effect on pension funds that had gone all in on liability-driven investment strategies. “We are monitoring events closely and their impact on financial markets, UK banks and UK economic conditions,” it said. The central bank added that UK banks were “resilient” and “currently healthy.” But it warned that other parts of the financial system might need bolstering.

☆ Gen Z is smoking and drinking less and that's cost the UK government $17 billion, says Bloomberg
▼ + stars: | 2023-03-26 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +2 min

Lower levels of smoking and drinking by Gen Z has affected the UK public finances, analysis suggests. Bloomberg estimates the UK missed out $11.4 billion in tobacco tax and $5.7 billion in alcohol tax since 2002. Calculations by Bloomberg indicates that the UK has missed out on £9.3 billion ($11.4 billion) from tobacco taxes and £4.7 billion ($5.7 billion) in alcohol duties had revenues remained steady since 2002. This year, the Office for Budget Responsibility (OBR) expects the UK government to take in £12.6 billion ($15.4 billion) in alcohol duties and £10.7 billion ($13.1 billion) in tobacco taxes. Alcohol-related harm is estimated to cost the National Health Service (NHS) in England £3.5 billion ($4.3 billion) a year.

☆ Rally splutters as Europe ploughs on with rate hikes
▼ + stars: | 2023-03-23 | by ( Marc Jones | ) www.reuters.com time to read: +3 min

The European-wide STOXX 600-share index (.STOXX) fell 0.75% with banks and insurers the main culprits again, suffering 1.6%-2% drops. Norway had also hiked, although MSCI's main world share index (.MIWD00000PUS) was still in positive territory after overnight gains in Asia. Focus now shifts to the Bank of England, with investors expecting a quarter-percentage-point increase in its main rate after a surprise jump in inflation squashed hopes of it pausing its tightening campaign. /FRXElsewhere in the bond markets, although UK yields were up those on German Bunds were down at 2.281%, happy to match the falls seen on 10-year U.S. Treasuries yields that had taken them to 3.440%. Germany's European Central Bank rate setter Joachim Nagel had even said he now thought the ECB was "approaching restrictive territory" with its rates, referring to a level that curtails growth.

☆ One country, two crypto systems: Hong Kong harbors crypto hub ambitions despite China's crackdown
▼ + stars: | 2023-03-20 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +5 min

Sopa Images | Lightrocket | Getty ImagesThe crypto industry has had a rough year with digital currency markets crashing and companies collapsing across the board. Hong Kong is planning to introduce new rules in June that will require crypto trading platforms to be licensed by the Securities and Futures Commission. Bitcoin ATMs, operated by Coinhero, in Hong Kong, China, on Wednesday, Dec. 21, 2022. While Hong Kong harbors high crypto ambitions and boasts relatively lower tax policy on businesses, the city could still potentially find competition with other crypto hubs. The logo of Bitcoin cryptocurrency at a store in Hong Kong on Thursday, Feb. 10, 2022.

☆ Bank of England welcomes Credit Suisse deal, says UK banks are safe
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +2 min

[1/2] Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland March 19, 2023. REUTERS/Moritz HagerLONDON, March 19 (Reuters) - The Bank of England welcomed moves by the Swiss authorities to broker a take-over by UBS of Credit Suisse on Sunday, indicating it would support approval of the deal, and it said the British banking system was well funded. UBS (UBSG.S) agreed to buy rival Swiss bank Credit Suisse (CSGN.S) for 3 billion Swiss francs ($3.23 billion) in stock and assume up to 5 billion francs ($5.4 billion) in losses in a merger engineered by Swiss authorities. "The UK government welcomes the steps taken today by the Swiss authorities in relation to Credit Suisse to support financial stability, and will continue to engage with the FCA and the Bank of England as is usual," a finance ministry spokesperson said. ($1 = 0.9280 Swiss francs)Reporting by Alistair Smout and Huw Jones Editing by William SchombergOur Standards: The Thomson Reuters Trust Principles.

☆ It's wild that Western governments have decided that TikTok might spy for China. The app hasn't helped itself.
▼ + stars: | 2023-03-18 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +6 min

TikTok denies it feeds user data to China, but the drip-drip of revelations hasn't helped. The suspicion is that TikTok's owner ByteDance is in cahoots with the Chinese Communist Party and shares data about Western users with China. TikTok has maintained the app doesn't spy on individuals, and has pointed to the steps it's taking to hive off user information. FCC commissioner Brendan Carr responded to Bertram asking if "any member of the CCP accessed non-public US or EU user data from inside China." US social-media services normalized the aggressive harvesting of user data, and routinely hand over information to international governments.

☆ Morning Bid: Deep breaths as banks calm, but only a bit
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +5 min

The Federal Reserve is considering tougher rules and oversight for midsize banks similar in size to Silicon Valley Bank, which collapsed suddenly last week. Strengthened rules on banks in the $100 billion to $250 billion range could ape those for larger more systemic banks and involve stringent capital and liquidity requirements or beefed up annual "stress tests". Even though reports abounded of depositor flight from the smaller weaker banks to the larger financial firms, stock prices in the sector at large caught a breath. The VIX equity volatility gauge (.VIX) hugged Tuesday's close at 23. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ UK government to announce spending, tax plans as strike action disrupts schools and travel
▼ + stars: | 2023-03-15 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

U.K. Finance Minister Jeremy Hunt will deliver the government's Spring Budget at 12:30 p.m. London time on Wednesday. An unexpectedly significant improvement in the country's fiscal position and falling wholesale natural gas prices have since propelled the government to a surprise budget surplus, while public sector borrowing has undershot expectations so far in 2023. As such, economists expect Hunt to deploy some modest fiscal support aimed at the country's cost-of-living crisis and creaking public services, blighted in recent months by widespread industrial action. Schools and travel will be heavily disrupted on Wednesday as teachers and rail workers go on strike, while civil servants and junior doctors are also walking out. Various British news organizations reported Tuesday that the chancellor will announce 12 new low-tax "investment zones" dotted throughout the U.K., a scaled back version of a project introduced by former Prime Minister Liz Truss.

LONDON, March 15 (Reuters) - Central banks juggling inflation and financial stability mandates are prompting the wildest swings in bedrock government bonds for over a decade and a surge in volatility that may end up causing problems of its own. "The Fed and other central bankers have lost the luxury of focusing singularly on the fight against inflation," said Manulife Investment Management's Frances Donald. If the history of banking crashes and related credit crunches show them to be deflationary anyway, then many argue a central bank pause now may be the wisest choice. "The Fed is now fighting inflation as well as potential financial contagion," Lombard Odier Chief Investment Officer Stéphane Monier said. The first sign of regional bank stock calm on Tuesday, alongside the sticky core inflation readings for February, prompted a build-back of some bets for one last hike from each central bank.

☆ Premarket stocks: What comes next in the banking crisis? The early 1990s hold clues
▼ + stars: | 2023-03-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

This isn’t 2008: There are some key differences between today’s banking saga and what happened in 2008. This time around the US federal government stepped in early to guarantee all customer deposits and restore confidence in the US banking system. Here comes CPIFormer banking regulators, economists and Wall Street analysts are increasingly calling for the Federal Reserve to pause its inflation-fighting interest rate hikes because of the current banking sector chaos. Last Wednesday, investors were putting 70% odds of a half-point interest rate hike at the Federal Reserve policy meeting next week, according to the CME FedWatch tool. Analysts expect the inflation rate to come in at 6% year-over-year (down from 6.4% in January) and at 0.4% month-over-month (down from 0.5% in January).

☆ HSBC turns Silicon Valley Bank calamity into gold
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

LONDON, March 13 (Reuters Breakingviews) - A crisis can be an opportunity for the prepared. That’s what HSBC (HSBA.L) may find with its acquisition of Silicon Valley Bank’s UK arm (SVBUK), announced on Monday morning. The Bank of London, a young clearing bank that also submitted a bid, said on Monday that the HSBC deal was a missed opportunity to promote competition. On that theory, the UK government and Bank of England should have handed SVBUK to a financial-technology startup or a challenger bank, rather than strengthening an established player. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Two lawmakers with knowledge of the exports and two former officials said the approvals reflected Britain’s increased willingness to support Taiwan. One of the lawmakers, who also spoke on the condition of anonymity, said authorising the export licences amounted to giving a "green light" to better equip Taiwan. It shows the government authorised 25 export licences to Taiwan during the first nine months of 2022 under the categories "components for submarines" and "technology for submarines." Taiwan has for decades been unable to buy conventional submarines from other countries because of their concerns of angering China. Asked about the decision to approve the increase in export licences, the official said: "You just don't do something like this without thinking through the implications very carefully."

☆ The UK is banning TikTok on government devices — joining the US, Canada, and the EU — despite a charm offensive dubbed 'Project Clover,' report says
▼ + stars: | 2023-03-13 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

The UK will join the EU, US, and Canada in banning TikTok on government devices, per Bloomberg. TikTok execs had doubled down on efforts to convince UK policy advisers that their data is safe. But the latest ban comes despite TikTok's "Project Clover" – a charm offensive to convince European lawmakers that users' data will be safe. "While we await details of any specific concerns the UK government may have, we would be disappointed by such a move," a TikTok spokesperson said. TikTok said it was building two more data centers in Ireland and Norway to ensure some 150 million users' data in Europe is stored locally.

☆ Silicon Valley Bank's UK unit has been sold to HSBC for $1.21
▼ + stars: | 2023-03-13 | by ( Huileng Tan | ) www.businessinsider.com time to read: +1 min

Silicon Valley Bank's UK unit has been sold to HSBC for 1 British pound, or $1.21. "This acquisition makes excellent strategic sense for our business in the UK," HSBC CEO Noel Quinn said. "This acquisition makes excellent strategic sense for our business in the UK," HSBC CEO Noel Quinn said in the bank's statement. The acquisition of Silicon Valley Bank's UK unit came after its California-based parent was shut down by California regulators Friday and taken over by the Federal Deposit Insurance Corporation (FDIC). Silicon Valley Bank's share prices had collapsed following a failed $2.3 billion capital raise.

Search resuls for: "UK Government"

25 mentions found