FTSE 100 Live: FTSE down 2% amid fears of a banking crisis


“Back-to-work budget” set to include childcare and benefits reforms

Encouraging economically inactive people back into the workforce is expected to be a major theme of Jeremy Hunt’s budget.

The “back-to-work budget” is expected to include new childcare tax credits, while welfare reforms will mean claimants can continue to receive payments after returning to employment.

The increased allowances for pension contributions are expected to remove incentives for veteran workers to retire early and encourage others to re-enter the workforce.


We Now Have Three Tiers Of Banks, Billionaire Bill Ackman Warns

Bill Ackman, the billionaire investor behind London-listed Pershing Square Holdings, has weighed in on fears of a looming crisis in the banking sector.

“Now we have three tiers of banks. SVB and Signature Bridge Bank – which are now the safest banks with explicit guarantees on all deposits, SIB Banks – which have implicit guarantees on all deposits and all other banks,” he said.


City hopes budget will keep top firms in London

City figures will be on the lookout for measures designed to encourage UK pension funds and other institutional investors to put money into the stock market as Jeremy Hunt presents the budget today, following a decline in the amount of capital available has decreased. London.

James Hughes, principal analyst at Scope Markets, said the chancellor has “an ideal opportunity” to “encourage more investment in UK equity markets”.

read more here


Fall in Credit Suisse shares raises concern over banking sector

European banks moved at the center of a growing global crisis over big-name financial stocks, amid fears that the sector could be badly hit by the effects of a sharp fall in the value of government bonds.

Concerns centered on Credit Suisse, as its stock plunged nearly 20% before trading halted, with the scandal-prone lender at the center of market speculation over its financial health. Its top shareholder, the Saudi National Bank, has ruled out providing further support for Switzerland’s second-largest bank, which is grappling with customers withdrawing deposits.

read more here


High Street banks quietly poaching SVB UK customers following HSBC takeover

High Street banks are quietly stepping up their efforts to lure startups from Silicon Valley Bank UK as customers of the beleaguered firm weigh whether they want to keep their accounts open following a last-minute rescue deal by HSBC.

The Canary Wharf-based bank wrote a letter to customers of SVB UK, saying it had infused around £2 billion of additional liquidity into the bank and said it “stands ready to deploy more cash and liquidity as required.”

Some told The Standard that they have seen a significant increase in the availability of attractive options.

Seb Wallace, a venture capital investor at Triple Point, said: “The lesson is that all companies need one or more main bank accounts.

“It appears that other major UK banks, which have historically been difficult to open an account with, have taken a more pragmatic, startup-friendly approach over the past three days. Hopefully this will continue.”

read more here


Saudi bank chief says no more money for Credit Suisse

Saudi National Bank President Abdul Wahid Al Khudairi said he would not provide any further aid to struggling Credit Suisse.


Trading halted in European banks including Credit Suisse

Trading at several mainland European banks, including Credit Suisse, has been halted due to fears of a banking sector crisis.

Shares in Credit Suisse, Societe Generale and Italy’s Monte dei Paschi and Unicredit have been frozen, the Saudi National Bank chairman said, adding he would “absolutely not” invest in the troubled Swiss institution.

Shares of Credit Suisse have plunged more than 12% in the past week after US regulators raised questions about its accounts.


New CEO at John Lewis Partnership

John Lewis and the parent of Waitrose have appointed Nish Kankiwala to lead the employee-owned business and help with its transformation.

Kankiwala, who has been non-executive director of John Lewis Partnership since April 2021, will start in the newly created chief executive role on March 27.

Over the past three years, President Sharon White has effectively been playing a dual role and also serving as Chief Executive, helping to steer the partnership amid the pandemic and the crisis of livelihoods.

The latest hire will allow White to focus on broader strategies at the company, which is in the midst of a turnaround plan to boost sales, reduce costs and create new revenue streams such as building rental flats at some of its stores. .

Read more here.


FTSE 100 down 1%, BP and Shell down 2%

London’s FTSE 100 index fell 1.2%, or 91.46 points, to 7545.65 today, negating yesterday’s gains as global shares rebounded on hopes of a fall from the collapse of Silicon Valley Bank.

Banking stocks were again under pressure as Barclays fell 2% and Lloyds Banking Group fell 1%, but the resources sector saw bigger losses as investors remained concerned about the economic outlook following a sharp interest rate hike.

The mood was not helped by China’s Covid recovery data showing a contraction in industrial production compared with a 2.4% growth in February.

There was also jitters ahead of the European Central Bank’s meeting tomorrow, as policy makers expected to hike interest rates by another 0.25% in the fight against inflation.

Brent crude futures with BP and Shell fell more than 2% each below $78 a barrel, while iron ore mining giant Rio Tinto fell 118p to 5524p and commodities trader Glencore dropped 10.85p to 450.6p.

The FTSE 250 index fell more than 1% to 196.61 points at 18,933.05, while fast fashion business ASOS and cruise ship company Carnival were down 5% each.

Corporate merchandise firm 4imprint provided a bright spot for mid-cap investors by declaring a huge special dividend to coincide with strong annual results.

The Manchester-based firm generates most of its revenue from the US and Canada, supplying branded products from pens and mugs to trade show displays.

Revenue topped $1 billion and profits rose 243% to $103.7 million (£85.5 million) in 2023, with the company upbeat on its prospects after trading “encouraging” so far. ,


Consumer Confidence Index positive for the first time after the mini budget

Consumer confidence was positive in February for the first time since September 2022’s disastrous mini-budget, according to YouGov polling for the Center for Economics and Business Research (Cebr).

The Consumer Confidence Index stood at 100.4 in February, with a score above 100 indicating positive sentiment. The index had fallen 4.2 points in September, the month of the mini budget, and 1.1 points in October.

While the index improved in subsequent months, the overall score remained negative until this most recent release.

“The upward trend in consumer sentiment continued last month as all sub-indicators of the YouGov/Cebr Consumer Confidence Index saw increases in February,” said Kay Neufeld, Director and Head of Forecasting and Thought Leadership at Cebr. “After a gap of six months of mostly negative sentiment, this was enough to propel the index back into positive territory.

“The shift in consumer sentiment adds to the more positive economic picture that has emerged since the start of the year, partly driven by a more benign outlook for energy prices.

“Yet, households remain short on budgets with both scores under this sub-indicator only marginally above and well below their long-term averages.”

Rate this post

Leave a Comment