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UK economy

  • Babcock shares surge as Starmer calls for Europe to ‘step up’ on defence

    February 16, 2026

    Shares in Britain’s defence giants rallied on Monday morning as Prime Minister Sir Keir Starmer called for Europe to “step up” on defence spending. Babcock – which plays a key role in the UK’s nuclear submarine fleet as well as naval, land and air operations – surged nearly four per cent in early trading to [...]

  • Gloomy Brits’ sluggish spending set to drag on economic growth

    February 16, 2026

    Brits continued to tighten their pockets in January as economists warned sluggish spend from consumers could trigger a “sustained drag on economic growth“. S&P Global’s latest Consumer Sentiment Index (CSI) showed a reading of 44.8, indicating further deterioration across household confidence with the figure remaining below the 50.0 mark that indicates neutrality. Whilst it crept [...]

  • Why the UK is losing the AI skills race

    February 16, 2026

    What's the use in being the third largest AI market in the world if our workforce doesn't know how to use it, asks IBM's Leon Butler.

  • Nigel Farage’s war on working from home is vibes-based politics

    February 16, 2026

    Nigel Farage's attack on working from home is designed to increase headlines, not productivity, writes Eliot Wilson.

  • Natwest and Lloyds shares lead FTSE 100 rally after bruising week

    February 16, 2026

    Natwest led a rally across Britain’s banking giants on Monday morning as lenders patched their wounds after a bruising week on the stock market. The bank topped the FTSE 100’s risers at the starting bell, gaining over four per cent in early trading to 603.60p. Barclays was shortly behind, advancing over 2.5 per cent to [...]

  • Non-cash ISA understanding low despite government push

    February 16, 2026

    UK savers understanding of non-cash ISA products, is lower than its cash counterpart, reflecting the lack of knowledge surrounding options despite the government push to move Brits away from cash. According to the latest analysis from investment platform Robinhood, just under half of investors confirmed having minimal knowledge of how stocks and shares ISAs work, [...]

  • Employment Rights Act set to stall hiring, says report

    February 16, 2026

    The government’s new package of employment rights will put a brake on hiring, according to a new report, as businesses worry about the possible risks and costs.  More than a third (37 per cent) of businesses surveyed by the the Chartered Institute of Personnel and Development (CIPD) plan to reduce hiring permanent staff as a [...]

  • Inflation tipped to fall to year-low in boost to interest rate cuts

    February 16, 2026

    Inflation is tipped to fall back to its lowest level for nearly a year in a busy week for UK economic data, with hopes the drop will help accelerate the Bank of England’s rate-cutting cycle. Economists are expecting the Office for National Statistics to show a sharp reprieve in the Consumer Price Index – the [...]

  • FTSE 100 Live: Zurich and Beazley £8bn deal gets time; Defence and bank stocks rally

    February 16, 2026

    Good morning and welcome back to the City AM liveblog. The first round of 2026 tech wobbles kicked into action last week and revived fears of an AI bubble. When Anthropic released a new AI tool designed to help in-house legal teams triage agreements and draft routine responses, the reaction trickled down through law firms straight into [...]

  • City chairman: Reports of London’s death have been greatly exaggerated

    February 16, 2026

    Despite many claims to the contrary, what's happening in London today is not stagnation, but renaissance writes Chris Hayward.

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