Bank of England makes £3.8bn profit from Liz Truss mini budget bond sales January 12, 2023 The Bank of England has trousered £3.8bn in profits from ditching bonds it hoovered up to stem financial chaos caused by Liz Truss’s calamitous mini-budget, the central bank told City A.M. The Bank announced today it has ditched all the £19.3bn of gilts purchased last autumn to stabilise the UK debt market. Governor Andrew Bailey [...]
Global cost-of-living crisis risks ‘dire consequences’ for planet as firms ditch climate concerns January 11, 2023 The global cost-of-living crisis threatens to railroad efforts to combat climate change, “potentially leading to dire planetary and societal consequences,” the World Economic Forum (WEF) warned today. Soaring energy and food prices are forcing governments and private businesses to turn to cheaper, often dirtier resources to produce goods and services. As a result, “the risks [...]
FTSE 100 close: JD Sports springs London flagship index to 2018 high January 11, 2023 London’s FTSE 100 index leapt to its highest level since 2018 in afternoon exchanges in the City today after a series of strong retailer earnings signalled the UK consumer is holding up well amid the cost of living crunch. The FTSE 100 index climbed 0.99 per cent to 7,770 points, while the domestically-focused mid-cap FTSE [...]
FCA to expand guidance for insurers on protecting cash-strapped customers January 11, 2023 The City watchdog has vowed to update guidance for insurers on protecting customers amid the UK’s cost-of-living crisis. The UK’s Financial Conduct Authority (FCA) today set out plans to expand guidance, which was first introduced during the pandemic, to ensure all struggling customers are protected. Under the FCA’s proposed new guidance, insurers will be [...]
Now that you’re asking where your supplies come from, we should talk. January 11, 2023 As the world faces a shortfall of both energy supplies and critical metals, difficult decisions are being made to meet the growing supply gaps without risking new dependencies on unsustainable producers or compromised geopolitical actors. Quite a problem for some; particularly for a range of European countries and firms in light of the Russian invasion [...]
Direct Line shares plummet after insurer scraps 2022 dividend January 11, 2023 Shares in Direct Line plummeted today after the insurer said it expects to scrap its 2022 dividend due to facing a “challenging and volatile operating environment in the fourth quarter”. The insurance company said its board “no longer expects to declare a final dividend for 2022” due to it facing a series of challenges related [...]
EY appoints ex-Cargill exec as newly-separated advisory firm’s CFO January 10, 2023 EY has appointed former Cargill and General Electric exec Jamie Miller as chief financial officer (CFO) of its split-off global advisory firm. Miller’s appointment as CFO of EY’s soon-to-be separate consultancy firm comes as the Big Four firm pushes forwards with plans to float the newly spun-out business in New York. EY chief executive Carmine [...]
UK insurance: shares in Aviva and Admiral shrug off Bank of England’s warnings of a ‘prolonged’ recession in the sector January 10, 2023 The UK’s insurance companies were told to brace themselves for a “prolonged” recession by boosting their risk management processes, the Bank of England (BoE) has said in a letter to sector CEOs. In a letter to insurance chief executives, the BoE’s insurance watchdog warned that various risks might stem from the downturn as it called [...]
Sunak and Starmer offer little new year cheer on ailing UK growth path January 10, 2023 This brand new weekly column, published every Tuesday, will drill down into the stories behind the numbers to reveal what makes the UK – and global – economy tick. But, today, inspired by what resembled soon-to-broken new year’s resolutions by political leaders last week, it will make the case for why a stable government economic [...]
Lloyd’s of London syndicate Beazley launches world’s first ‘cyber catastrophe bond’ January 9, 2023 Lloyd’s syndicate Beazley has launched the world’s first ‘cyber catastrophe bond’. The insurer’s catastrophe bond protects Beazley’s balance sheet in the event it is forced to pay out more than $300m (£246m) in insurance on any cyber risk policy. Catastrophe bonds have traditionally been used to protect insurers from natural disaster risks, through deals that [...]