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UK economy

  • Watchdog warns on ‘fire sale dynamics’ risk in repo market

    February 4, 2026

    The global financial watchdog has urged regulators to cast a closer eye over the ways in which leveraged trades in the short-term repo market could amplify financial stability risks worldwide.  Regulators at the Financial Stability Board (FSB) are particularly concerned that leveraged investors might be forced to dump their assets in the event of a [...]

  • Quality over quantity: UK M&A volume slips but deal value climbs

    February 4, 2026

    UK merger and acquisition deal value increased last year despite a fall in volumes as investors turned their focus to acquiring fewer, higher-quality assets. The total number of UK deals fell 12 per cent year on year to 2,991, down from 3,411 in 2024, according to the latest industry trends data from PwC. But overall [...]

  • Payments watchdog won’t be abolished ‘any earlier than 2027’

    February 4, 2026

    The boss of the payments watchdog has said he doesn’t expect the regulator to be officially abolished any earlier than the first quarter of 2027 as criticism grows over the slow progress of reforms in the sector. David Geale, managing director at the Payment Systems Regulator (PSR), said he had “not seen the outcome” of [...]

  • Service sector sees longest run of job losses in 16 years

    February 4, 2026

    A new survey suggests that the UK service sector has endured its longest sustained period of job losses in 16 years, despite rising business activity at the start of the year.  Employment in the service sector has decreased in each month since October 2024, according to S&P’s purchasing managers’ index (PMI), with the pace of [...]

  • Shell chief reportedly set for £4.5m pay boost

    February 4, 2026

    The boss of Shell will reportedly receive a multimillion-pound remuneration incentive, with the firm poised to reveal a new boardroom pay policy.  According to reports, the firm’s chief executive Wael Sawan would pocket at least £4.5m more each year.  Sky News‘ Mark Kleinman has reported that investor sources have revealed a long-term incentive stock reward [...]

  • Mandelson branded a ‘naive sucker’ as he tried to build career post-government

    February 4, 2026

    Peter Mandelson was branded “naive” and a “sucker” in new revelations from the Epstein files that shine a light on Mandelson’s efforts to build a career post-government. The Labour veteran told convicted paedophile Jeffrey Epstein that he had sought the advice of financier Nathaniel Rothschild as he weighed up a role at advisory and investment banking [...]

  • Bank of England to avoid signalling faster interest rate cuts

    February 4, 2026

    The Bank of England will not signal a faster pace of interest rate cuts over the coming months to combat jobs market woes across the UK economy, with some economists fearing it could send markets mixed messages on monetary policy.  Markets expect interest rates to be held at 3.75 per cent on Thursday due to [...]

  • FTSE 100 Live: Beazley seals $15bn Zurich deal, Santander in $12bn takeover

    February 4, 2026

    Good morning and welcome back to the City AM liveblog. Shares in Europe’s biggest data, publishing and legal software groups slumped on Tuesday after AI giant Anthropic unveiled a new tool aimed directly at in-house lawyers. The move rattled investors who had long viewed the sector as an AI winner. In London, Relx fell close [...]

  • Political uncertainty leaves British businesses only planning year-to-year

    February 4, 2026

    Businesses are seeing political change and regulatory uncertainty as a barrier to long-term workforce planning, making it harder for leaders to implement effective workforce strategies. Nearly 80 per cent of employers find themselves unable to look beyond a 12-month horizon, according to a survey of nearly 700 employers by law firm Lewis Silkin. Lucy Lewis, [...]

  • Britain’s growth slumps and the Business Secretary scratches his head

    February 4, 2026

    Having spent another day wading through the Epstein-Mandelson email traffic I was going to write another column about how unbelievably grubby the revelations are, but it’s too depressing. So, I thought I’d focus on something more cheerful; the latest downgrades to the UK’s economic growth forecasts. On his visit to China alongside the PM, the [...]

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