Business live: Barclays fined £42m for money-laundering failures
Rob Wood, Pantheon Macroeconomics: 'Where does this leave the MPC? Inflation 150bp above target and likely to stay there for the rest of the year is hardly a green light for another rate cut. Traditionally, the MPC would look through headline inflation overshoots driven by government policy as well as energy and food prices, but we doubt they have that luxury now.'
Matt Swannell, EY Item Club: 'There doesn't seem to be enough in these inflation numbers to derail an interest rate cut in August and we expect the MPC's established cut-hold tempo to continue at subsequent meetings.'
The financial watchdog has fined banking giant Barclays £42 million over its 'poor handling' of financial crime risks.
The Financial Conduct Authority said the fines related to separate failings linked to the WealthTek and Stunt & Co businesses.
It fined Barclays Bank £39.3 million for 'failing to adequately manage money laundering risks' related to providing banking services to Stunt & Co, the firm run by the socialite James Stunt.
Meanwhile, Barclays Bank UK has been fined £3.1 million after it failed to check it had enough information to understand the money laundering risk before opening a client money account for the now-collapsed wealth management firm WealthTek, the FCA said.
Gilt yields have edged higher across the board after the surprise rise in inflation to 3.6 per cent in June dampened expectations of a rate cut next month.
The yield on the benchmark 10-year UK government bond rose 2 basis points ot 4.65 per cent.
The FTSE 100 has opened 4.5 point higher at 8,942,87, with Rio Tinto the biggest riser after its second quarter production update. The index remain below is high of 8,998.06 hit earlier this week.
The pound has strengthened slightly against the dollar to $1.3401.
Rio Tinto: The FTSE 100 miner reported its strongest quarter of iron production since 2018, a day after promoting Simon Trott, head of its iron ore operations, to chief executive. Production at its Pilbara mines in western Australia rose 5 per cent to 83.7 million tonnes in the second quarter, although shipments fell short of analysts' expectations, disrupted by extreme weather.
In other corporate news:
AstraZeneca: The pharmaceutical company said anselamimab, an experimental drug, did not meet the main goal of a late-stage study for the treatment of AL amyloidosis, a rare condition that causes a buildup of protein deposits in the body.
Antofagasta: The Chilean copper miner said second-quarter production rose 3.5 per cent to almost 315,000 tonnes. Full-year guidance was reiterated.
Workspace: The flexible office space provider said occupancy had fallen by 0.3 per cent in the second quarter to 82.2 per cent, with more 'large vacations' to come during the current three-month trading period.
The rate of UK inflation rose to a 16-month high of 3.6 per cent in June, official figures showed.
The data from the Office for National Statistics is above economists' expectations for the rate to remain unchanged, and makes an interest rate cut in August less likely.
Richard Heys, acting chief economist at the ONS, said: 'Inflation ticked up in June, driven mainly by motor fuel prices which fell only sligthly, compared with a much larger decrease at this time last year.
'Food price inflation has increased for the third consecutive month to its highest annual rates since February of last year.'
The Bank of England expects inflation, which has accelerated since April due to higher energy prices, to peak at 3.7 per cent before falling back to its 2 per cent target.
The monetary policy committee has cut interest rates twice this year, from 4.75 per cent to 4.25 per cent. Markets had been betting on another quarter-point cut next month.
• Read in full: UK inflation rises to 3.6 per cent in blow for Reeves
Rachel Reeves has accused over-cautious regulators of acting like 'a boot on the neck of businesses' as she announced plans to get ordinary British savers investing in shares.
Addressing 350 City bosses at the annual Mansion House dinner, the chancellor set out a string of reforms designed to allow financial firms to grow faster and urged regulators 'not to bend to the temptation of excessive caution'.
• Read in full: Reeves tells regulators to loosen up to boost share investment
President Trump has placed a 19 per cent tax on goods imported into the United States from Indonesia under a new agreement with the country and said more deals were in the works.
The pact with a minor trading partner is among the few ahead of an August 1 deadline for tariffs on most US imports, despite his team touting an effort to bring home '90 deals in 90 days'.
So far, framework agreements have been reached with the UK and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between Washington and Beijing.
Trump said talks with India were moving in a similar direction. Meanwhile, while the European Union is preparing retaliatory measures should talks between Washington and its top trading partner fail.
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The Herald Scotland
13 minutes ago
- The Herald Scotland
Major survey reveals 'standout' view on 'Scottish visa'
The latest Understanding Business survey, conducted by 56° North and Diffley Partnership, found 70% of companies are supportive of a Scottish visa to allow some migrants to come to work in Scotland, as long as they live in the country and maintain a Scottish tax code. A slightly smaller number, 68%, believe migration is vital for filling critical skills shortages in Scotland and that the Scottish Government should have power to control the migration of workers. However, respondents to the survey were conscious of the impact of migration on the local workforce, and the need for joined-up thinking on devolution of migration and UK-wide immigration policy. Scottish businesses groups, notably those representing the hospitality and tourism sectors, have regularly voiced concern over skills shortages since Brexit, which ended the free movement of people between the UK and countries within the European Union. There have been calls by the [[Scottish Government]] in recent years for the introduction of a Scottish immigration visa system to help attract workers to Scotland, but they have been resisted by the UK Government, which controls immigration policy. However, it appears the issue is not going away. The latest Understanding Business survey suggests Scottish employers are interested in a more flexible, regionally responsive immigration policy, particularly in light of workforce shortages and general economic pressures. The proposed visa would be designed to meet the needs of the Scottish labour market and population requirements which can differ from those in other parts of the UK. Only 17% of respondents said they opposed the idea of a Scottish visa, while the remaining 14% were neutral or unsure. The survey authors said the relatively low level of opposition suggests there is broad recognition among employers of the economic and demographic benefits of such a scheme. The proposed Scottish visa would allow migrants to work and pay tax in Scotland, while being required to live in the country. This would reflect immigration models used in countries such as Canada and Australia. The support shown towards a Scottish visa came as businesses indicated a degree of confidence about the economic outlook. A plurality of expect turnover (47%) and profitability (44%) to increase over the next 12 months, record highs for the survey series, followed closely by those that think their turnover or profitability will remain the same in the next year, at 41% and 39%. Around half (48%) believe general economic conditions are worse than a year ago, and 41% expect that conditions will continue to deteriorate over the next year. But a growing proportion expressed the view that the general economy is better now than a year ago (30%) or will improve over the next year (35%), up seven and 10 percentage points respectively. Well over half of Scottish businesses said they were more concerned about tax (56%) and inflation (55%) than they were three months ago, although these proportions witnessed small declines of three and four percentage points respectively. Meanwhile, there were encouraging findings for government ministers who are often accused of being out of touch with business. More businesses agreed that the Scottish and UK Governments are concerned with the needs of Scottish business and taking action to address them. Agreement that the UK Government is concerned with the needs of Scottish business is 'notably lower' compared with the perception of the Scottish Government on this front, at two in five (40%) compared to over half (53%). However, both have risen considerably since the last survey wave, up seven and five percentage points. A smaller gap was apparent when considering if both governments are taking action to address Scottish business concerns. Mark Diffley, founder and director at Diffley Partnership said: 'The standout data point this quarter is the significant business support for the introduction of a Scottish visa for workers, backed by seven in 10 business, up to 75% of those with an opinion either way on the issues. 'Combined with other positive views about the impact of migration on the labour force and the economy, this should give political parties food for thought ahead of next year's election. 'Meanwhile, although the business community in Scotland is still rather more pessimistic than optimistic, the gap between the two has closed which gives some hope about the possibility of a more positive outlook ahead after a long, tough period for businesses.' John Penman, managing partner at 56° North said: 'Our last survey showed Reform, which is the most vocal party in terms of restricting immigration, were gaining support among business in Scotland, however these results show that many businesses are in favour of bringing skilled migrants into the Scottish workforce. 'Reform's continued strong showing in the polls may well mean this becomes a recurring theme in the run up to next year's Scottish election as parties seek to position themselves as best for economic growth.' Understanding Business surveyed more than 500 Scottish businesses across a range of sectors, including hospitality, agriculture, construction, and manufacturing.
Times
31 minutes ago
- Times
The Manchester college creating luxury watchmakers of the future
You've bought the mechanical watch you've had your eye on for a long time and take pleasure in wearing it. But eventually, especially if you strap it on daily, it might need a repair. At some future point it will also require a service to ensure it continues to function well. Think of it like this, says Jon Weston, the managing director of the Midlands-based Rudell the Jewellers, 'you've got an engine in a car running 24 hours a day for a period of time, how long could it last? While some new watches will run for ten years before needing a service, it's something that needs to be done over time. And someone experienced has to carry out the work.' You wouldn't want it to take months to repair your treasured timepiece. But in some cases it does. One of the reasons for the wait is because there's a worrying shortage of qualified watchmakers in the UK — and, according to the Federation of the Swiss Watch Industry, it's a worldwide problem. Positive changes in the watch world are driving this, from the unprecedented demand for luxury watches over the pandemic and since — which have often led to waiting lists and retailers displaying 'exhibition only' examples — to the public's increasingly enthusiastic embrace of vintage and pre-owned pieces, propelling businesses to seek more skilled technicians. Globally, the UK is a significant market, Weston says. 'For most luxury watch brands, it's in the top four. But if you sell twice as many watches that means you have twice as many for after sales servicing.' Also adding to staff shortages is the increasing number of watchmakers on the cusp of retirement. Helping to plug that gap is the British School of Watchmaking, the only school in the country to offer courses by the Watchmakers of Switzerland Training and Educational Program (WOSTEP), the industry gold standard accreditation for luxury brands and retailers. Gordon Bryan co-founded the Greater Manchester-based school in 2004. A trained watch and clock maker, he served an apprenticeship at Garrard and has worked with Asprey, Cartier, Breitling and Omega. While working at Signet Jewelers he was looking to employ watchmakers for the firm's branches. 'I was bench testing and all of them were unsuccessful,' he recalls. 'I moaned about it to a friend who said, why don't you do something about it? So I did.' It was a long haul. 'I'd studied at WOSTEP and they said they'd support us while the watch brands stepped up financial support, for machines and premises. It's important we give students the best equipment and facilities and keep the equipment up to date.' 'It had to be right,' Bryan says. 'We are nothing without the tutors, and it takes years to find them. Of course, they need to know the technical work but must have that inspirational factor. Now we have two tutors who have been students here, and the wheel has turned full circle.' The school turns out eight students annually, 16 every other year from a two-year course. It's a slow but steady roll out and 2021 saw the 100th graduate. The school offers two WOSTEP courses. There's a one-year, Service Watchmaker Course that prepares students for after sales services with eight places. Then there's the two-year Watchmaker Course which combines the syllabus with additional micromechanics training in which students learn how to create watchmaking components. A third industry-recognised course was introduced last year, WOSTEP's three-week programme teaching different polishing techniques. It's more a workplace than college, with 37.5-hour weeks and four weeks' holidays. Students are any age, and have ranged from 18 to 54. 'We've had very successful computer programmers, doctors, vets, joining the courses. More women are coming, and there's often a 50:50 split. At the moment there are two women with six men on the one-year course and all are sponsored by brands or retailers. I don't think we've had a student leave without a job' says Weston, who is one of the school's six trustees. 'It's not good enough to be taught by a colleague in the workplace. The WOSTEP qualification is internationally respected by the watch brands. It gives credibility to the student and what they've achieved.' The school has 35 well-known trade backers. 'Anyone who's anyone in the industry is a supporter,' Weston says. 'We were granted charity status in 2019 and we're providing a public service,' Bryan adds. 'The tutors are the only ones paid. It makes it so worthwhile to see the students collect their certificates at graduation with their families.' Two watches created by students on courses have been COSC-certified, surpassing tough standards set by the Swiss. 'We have to remember a lot of the important inventions in horology were made in Britain, there's so much history here,' Weston observes. 'It's so good now to be back producing quality watchmakers. One day, one of them might do something that is of a George Daniels [the legendary British horologist] level — or the ingenuity of [the contemporary British watchmaker] Roger Smith — so we'll be back up there.' And in the meantime, your watch will be back faster from a servicing.
South Wales Argus
34 minutes ago
- South Wales Argus
Newport Council ‘borrowing heavily' to fund school rebuild
Cllr Dimitri Batrouni told colleagues the local authority's total borrowing increased by £31.3 million in the last financial year. The figure, which this April stood at £168.4 million, is 'above the council's operational boundary', councillors heard at a meeting this week. However, that limit is 'a management tool for in-year monitoring', said Cllr Batrouni, who added it was 'not significant if the operational boundary is breached on occasion due to variations in cash flow, and this is not counted as a compliance failure'. 'In layman's terms, we're borrowing heavily on our school rebuilding programme,' the leader explained. 'Our schools need huge amounts of investment. It's the right thing to borrow.' He added the council would 'need to manage that carefully, given interest rates', but said he hoped the Bank of England would 'follow through' on indications lower rates were on the horizon. 'Our outlook for the next few years is a further need to borrow as our capital programme is delivered and our reserves are used over time,' said Cllr Batrouni. 'Officers will continue to monitor interest rates closely to ensure we always get the best interest rates for any new borrowing, and liaising with our external treasury advisers,' he added. School building projects in Newport The council's Sustainable Communities for Learning Programme invests in school improvements through match funding with the Welsh Government. Current projects include a new sports hall, replacement blocks and the relocation of the primary school. Work has started on a new sports hall at Ysgol Gyfun Gwent Is Coed, in Duffryn, and work is due to be completed this year. There are ongoing designs for Caerleon Comprehensive School. In December 2024, the new £17m Pill Primary School opened on Mendalgief Road next to the Royal Victoria Court development. Work is now underway to fully refurbish the old Pill Primary School building in Capal Crescent ready for Ysgol Gymraeg Nant Gwenlli. A new state-of-the-art teaching block has been built at Bassaleg Comprehensive School and St Andrew's had its junior school section fully re-built. Finally, Ysgol Gyfun Gwent Is Coed had a new teaching/dining space along with a 3G sports pitch.
