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Economics

  • Allica lands £350m in British Business Bank scheme aimed at fintechs

    May 15, 2026

    Allica Bank has bagged lending backing from the UK’s state-owned economic development bank, in a scheme designed to bolster high-growth challengers that lend to small businesses. The London-based fintech – which sealed its status as a $1bn unicorn earlier this year – has landed £350m in the British Business Bank’s ENABLE Guarantee scheme, City AM [...]

  • As it happened: UK borrowing costs rattled by Burnham’s Parliament bid

    May 15, 2026

    Welcome back to the City AM liveblog. Andy Burnham has made his move – and it has left markets on edge. On Thursday evening, after markets had closed, a Labour MP sensationally announced their intention to stand aside to allow Burnham to make his way back into Parliament. And this morning it’s left gilt yields [...]

  • As it happened: Markets on high alert as Streeting calls on Starmer to resign

    May 14, 2026

    Welcome back to the City AM liveblog. The past few days of political drama have to come to a head today and UK assets are bracing for a showdown. All eyes were on the bond market after Wes Streeting resigned as health secretary and called for a leadership contest. Gilt yields see-sawed yesterday as Sir [...]

  • Starmer drama: Traders bet against UK as short-selling on pound and banks surges

    May 14, 2026

    Traders are betting against the UK as the political storm in Westminster continues to send jitters through asset markets. The pound has tumbled to a two-week low against the dollar, clinging onto the $1.35 mark on Thursday morning. Meanwhile, figures from IG revealed that short-positioning on the pound-dollar, a bet that the price will further [...]

  • UK enjoyed surprise growth in March but economy ‘in for a rough ride’

    May 14, 2026

    The UK economy’s momentum continued as growth was higher than expected in March, official figures have shown, in what may precede months of expected gloom.   The Office for National Statistics (ONS) has revealed that GDP growth was 0.3 per cent in March. This contributed to overall growth of 0.6 per cent in the first quarter. The [...]

  • The King’s Speech was overshadowed by the Westminster clown show

    May 14, 2026

    Put the current political chaos from your mind for a moment and imagine that Keir Starmer wasn’t under threat. Imagine a version of the Prime Minister – still unpopular and still struggling to engineer economic growth – but at least with the full backing of his cabinet and MPs. Under such circumstances, yesterday’s King’s Speech [...]

  • Labour leadership turmoil to cost Reeves up to £12bn

    May 13, 2026

    Labour’s political infighting could cost Chancellor Rachel Reeves up to £12bn, analysis by a Wall Street bank has suggested.  Hot-tempered bond markets and stunted growth – a consequence of further political instability – would knock around £12bn off the Chancellor’s fiscal headroom, Goldman Sachs warned.  While the £12bn hit to public finances would not erase [...]

  • JP Morgan chief threatens to pull £3bn investment if Labour becomes ‘hostile to banks’

    May 13, 2026

    The chief executive of JP Morgan has threatened to pull a major investment from the UK if Labour government policy turns “hostile to banks”. Jamie Dimon – the influential American banker – revealed plans for a £3bn square feet tower in Canary Wharf last year, which is projected to inject as much as £10bn over [...]

  • As it happened: Market jitters as Streeting set to make bid against Starmer

    May 13, 2026

    Good morning and welcome back to the City AM liveblog. UK borrowing costs are taking a modest breathe this morning after settling much higher yesterday after a session jam-packed with political turmoil. The 10-year yield on UK gilts spiked ten basis points to over 5.1 per cent on Tuesday. Meanwhile, the 30-year yield soared to [...]

  • Why the battle for Labour’s future could prove to be very expensive

    May 13, 2026

    Amid the farce and drama, spare a thought for His Majesty, who will today sit on the throne in the House of Lords and read out details of Keir Starmer’s legislative agenda for the coming parliamentary term. The monarch may be above politics, but not so far above that he won’t see the absurdity of [...]

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