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Rachel Reeves has urged financial services firms to work with development institutions and within emerging markets. The Chancellor met with firms including Aviva, HSBC and Schroders to call on the industry to seize on growth opportunities and boost London’s position as a leader in development finance. At a roundtable co-hosted with Odile Renaud-Basso, president of the European Bank for Reconstruction and Development, Reeves launched the London Coalition on Sustainable Sovereign Debt, which will be co-chaired by City Minister Emma Reynolds. The coalition will look to bring the government and private sector stakeholders together to boost sustainable sovereign debt financing. Reeves said: “Business and government must work together to seize opportunities in emerging markets and kickstart economic growth,” adding: “The UK’s world-leading financial centre can help countries unlock new opportunities for our brightest and best British companies to create wealth and drive growth.”

 

City AM

Just Released: The 2025 IT Risk and Compliance Benchmark Report

Each year, we ask over 1,000 risk and compliance professionals about their pain points, budgets, staffing, risk management best practices, and much more to provide an in-depth view of the market’s current state and what to expect for the coming year. Join us on-demand as we unveil the findings from Hyperproof’s sixth annual IT risk and compliance benchmark report.

Watch Now

 

A report from Birmingham City Council's auditors, Grant Thornton, has found that overhauling the council's IT systems, which were updated in 2022 to streamline payments and HR processes, but which have been plagued with issues, could cost more than £90m, while it is "unlikely" that improvement work will be completed until next year. A spokesperson for the council said it will "take on board" Grant Thornton's findings, adding: "We are making significant progress on the reimplementation of the Oracle system and getting our finances back on track. We have worked to significantly strengthen governance, to understand the issues within the system, and to learn lessons from what went wrong."

 

BBC News

Banks in the UK are more likely to focus AI strategy on improving customer experience than their US rivals, according to NTT Data’s Intelligent Banking in the Age of AI report. While 52% of UK banks are using AI to enhance customer services rather than cut jobs, 59% of US banks have prioritised their AI usage on cutting costs. The analysis also saw 37% of European banks say regulation is the biggest obstacle when it comes to adopting AI. Roberto Freddi, European lead of financial services at Kearney, said: “Regulation is emerging as the biggest roadblock to AI adoption for European banks, reinforcing the need for clear frameworks that drive innovation while ensuring compliance.” It was also found that while a quarter of UK banks are looking to switch to a fully automated model, a third of US firms are aiming for full automation.

 

City AM

A former Janus Henderson analyst used confidential information to make nearly £1m, prosecutors have told Southwark Crown Court. Redinel Korfuzi has been charged on a count of insider dealing and money laundering between January 2019 and March 2021. His sister, Oerta Korfuzi, has also been charged, alongside two other members of a ring who prosecutors say acted as "secret proxies" for the insider trading. Tom Forster, a prosecutor representing the Financial Conduct Authority, said the defendants “took advantage of the cloak afforded by national lockdown restrictions . . . to take the opportunity to execute . . . their secret plan to conduct criminal trading.” Janus Henderson is not involved in the criminal case and the City watchdog said the asset manager has co-operated fully with its investigation.

 

Reuters

The Times

Lloyds Banking Group, which owns car-loan business Black Horse, has set aside £1.2bn to cover the car finance mis-selling scandal, allocating a further £700m to cover potential compensation payments alongside the £450m previously earmarked. Chief executive Charlie Nunn said the provision made to cover potential compensation payments was the bank's "best guess at this stage.” Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “While you could argue the provision is overly cautious, Lloyds holds the largest exposure of any major UK bank, and the outcome remains uncertain.” It is noted that Barclays has set aside £90m, while Santander has made a £295m provision and Close Brothers has put £165m aside. The moves come after a court ruled that it was unlawful for car dealers to receive a commission from banks providing motor finance without obtaining the customer’s informed consent.

 

BBC News

The Daily Telegraph

The Guardian

The Independent

Fashion chain Quiz has fallen into administration with the closure of 23 stores. Administrator Teneo has agreed a pre-pack administration deal for Orion, a subsidiary company run by Quiz’s founding family, that will see it buy the Quiz brand and 42 shops, saving around 1,300 jobs. However, the closure of 23 branches in the UK and Ireland will mean the loss of 191 jobs. Sheraz Ramzan, chief executive of Quiz, said the company had appointed administrators due to “continuing challenging trading conditions impacting the group’s performance.” He added that the decision “will put the business on a more sustainable footing for the future and protect several hundred jobs.”

 

The Times

Daily Mail

New Look is to enter liquidation in Ireland, resulting in the closure of 26 stores and the loss of approximately 350 jobs. The High Court approved the appointment of provisional liquidators as the company cited "sustained losses and challenging market conditions" as reasons for the decision. New Look employs a total of 347 people across its network in the Republic of Ireland. The company said a 30-day staff consultation process will commence over the coming days.

 

The Independent UK

Frasers Group has withdrawn its bid for the remaining shares in Norwegian sportswear retailer XXL ASA. The company, which already owns 25.8% of XXL, said that the offer was dropped due to the refusal of several large shareholders to accept it. The bid, initially made last December, valued XXL at approximately £17m.

 

The Times

Zurich Insurance has reported an annual operating profit of $7.8bn, surpassing analysts' expectations of $7.7bn. The company is navigating challenges posed by climate disasters and conflicts, with California wildfires alone estimated to have a pre-tax impact of $200m. Zurich anticipates a compound annual growth in core earnings per share exceeding 9% from 2025 to 2027, as outlined in its three-year plan.

 

Daily Mail

Rio Tinto has urged shareholders to reject activist investor Palliser Capital's proposal to abandon its London listing, saying the move would prove costly and is not in the mining group's "best interests."

 

Financial Times

UniCredit CEO Andrea Orcel says the bank may expedite its exit from Russia if the Ukraine war ends, suggesting that it may secure better terms "if the politics change."

 

Financial Times

The National Infrastructure Commission has warned regulator Ofgem that focusing on short-term costs in electricity regulation may hinder necessary long-term investments for decarbonisation and economic growth.

 

Financial Times

Industry experts warn that Britain is facing a significant food security crisis, exacerbated by extreme weather, Brexit, and rising costs. Luke King, supply and technical director at Riverford, argues that "the industrial food system is at the heart of the problem," calling for a shift towards sustainable farming practices. The government's Food Security Report highlights the impact of geopolitics and climate change on food availability. Hannah Brinsden, head of policy at the Food Foundation, observes: "Cost of living and food inflation have contributed to a higher cost of food, widespread food insecurity and healthy diets being out of reach for many."

 

The Independent