Government’s plans for Solvency II shakeup will force insurers to hold more capital on their books, sector warns July 21, 2022 Insurers have called on the UK government to reconsider their plans to shake up the Solvency II rules that govern the country’s insurance sector, after warning the current plans could backfire. The government’s current plans to reform the European Union’s Solvency II regulations could see life insurers forced to hold more capital than they are [...]
Scorching inflation sends UK debt interest bill to record-high £19bn July 21, 2022 Scorching inflation has ballooned the UK’s debt interest bill to its highest level since records began in the early 1990s, official figures published today revealed. The amount of money the UK had to pay investors holding government debt in June more than doubled over the last year, topping £19bn, up from £9.1bn in June 2021, [...]
Inflation races to new 40-year high – but worst is yet to come July 20, 2022 UK inflation raced to a fresh 40-year high last month, but economists have warned the cost of living squeeze is set to get even worse. Prices surged 9.4 per cent over the year to June, the quickest acceleration since 1982 and up from an already historic level of 9.1 per cent in May, according to [...]
FTSE finance chiefs brace for recession July 20, 2022 Britain’s top finance chiefs are bracing for a recession driven by inflation crimping consumers and thinning businesses’ margins, a new survey published today reveals. Chief financial officers (CFO) at the UK’s largest listed companies think there is a 63 per cent chance of the economy swinging into reverse over the next 12 months, according to [...]
FTSE 100 reverses early losses on strong Wall Street gains July 19, 2022 London markets whipsawed today as investors’ concerns about a bigger Bank of England rate rise were tamed by strong gains on Wall Street. The capital’s premier FTSE 100 index surged 1.01 per cent to 7,296.28 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed [...]
Bank of England governor Bailey puts largest rate rise since independence on table July 19, 2022 The biggest rate hike since the Bank of England was made independent 25 years ago is on the table at its next meeting on 4 August, its chief said today. Delivering his annual Mansion House bankers’ dinner speech, Andrew Bailey said “a 50 basis point increase will be among the choices on the table when [...]
Bank lending to firms up £12bn after dip due to covid schemes ending July 18, 2022 The so-called loan ‘drought’ induced by the pandemic appears to be coming to an, with lending up by £12bn. Banks are increasing their lending in wake of a sharp decline in wake of both the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS) ending. According to research from ACP Altenburg Advisory, [...]
Ageing society will lead to decades of weak growth, BoE official warns July 18, 2022 An ageing society will leave the UK economy permanently weaker over the coming decades, an official at the Bank of England said today. Speaking at the Resolution Foundation, Michael Saunders, an outgoing external member of the Bank’s monetary policy committee (MPC), warned Britain will “face increasing challenges from demographic change, because population ageing appears likely [...]
UK banks ramp up lending after Covid-19 support cliff edge July 18, 2022 UK banks are ramping up lending, marking the end of a loan drought after government Covid-19 support schemes were ditched. The total value of lending to UK businesses climbed £12bn to £533bn in the nine months to May, according to research based on Bank of England data published today by debt advisor ACP Altenburg Advisory. [...]
Week ahead: More inflation woe to pile pressure on Bank of England to act July 17, 2022 Inflation bumped higher last month, reinforcing pressure on the Bank of England to motor through rate hikes, according to City analysts. London’s premier FTSE 100 index notched a poor performance last week, losing a shade over 0.5 per cent to finish at 7,159.01 points. The domestically-focused mid-cap FTSE 250 index, which is more aligned with [...]