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The UK’s position as a financial services leader is under threat, with a poll from the CRIF showing that almost half of senior financial professionals believe the UK’s dominance is declining and more than 40% would no longer consider the country a global leader in the industry. Over 30% of those polled said missed investment was driving the downturn. Analysis from KPMG shows that fintech investment fell by 27% to £7.9bn in 2024, from £10.1bn in 2023. Sara Costantini, regional director for the UK & Ireland at the CRIF, warned: "Without decisive action, new markets will continue to catch-up with and challenge London’s long-held crown as a leader in financial services."

 

City AM

Business confidence in the UK has fallen to its lowest level in three years, primarily due to rising taxes and economic instability. The  Institute of Chartered Accountants in England and Wales' confidence monitor index hit -4.2 for the second quarter. Over half of the 1,000 accountants surveyed expressed concerns about potential tax increases later this year, with predictions that Chancellor Rachel Reeves may need to raise £30bn. The report also highlighted a decline in employment expectations and export sales, while a British Chambers of Commerce poll found that 28% of SMEs have seen a decrease in export orders.

 

City AM

Four people have been arrested by police investigating the cyber-attacks that targeted M&S, Co-op and Harrods. The National Crime Agency (NCA) said a 20-year-old woman and three men aged between 17 and 19 were apprehended on suspicion of Computer Misuse Act offences, blackmail, money laundering and participating in the activities of an organised crime group. Paul Foster, head of the NCA's National Cyber Crime Unit, said that while the arrests were a "significant step" in its investigation, "our work continues, alongside partners in the UK and overseas, to ensure those responsible are identified and brought to justice."

 

Sky News

BBC News

The Guardian

The Independent

The government's recent amendments to the Employment Rights Bill, aimed at banning non-disclosure agreements (NDAs) in harassment and discrimination cases, have sparked a heated debate among legal experts. While Laura Bolam from Rights of Women praised the ban as a "significant step towards transparency and accountability," others, like Karen Jackson from Didlaw, warn that it could deprive victims of essential protections. Ms Jackson expressed concern that the removal of NDAs might lead to unintended consequences, saying: "There is a high risk that the removal of NDAs will deprive victims of a method of resolving an issue."

 

Daily Mirror

The Financial Conduct Authority (FCA) suspended or banned over 1,600 websites for promoting financial services without the necessary permissions last year.  In 2024, the regulator intervened to ensure almost 20,000 non-compliant financial promotions were amended or withdrawn by authorised firms, compared with under 600 in 2021. The City watchdog also worked with technology platforms to remove 50 apps from Google Play and the App Store. FCA chief executive Nikhil Rathi said: "We have embraced data to crack down on harm."

 

The I

The Times

Financial Conduct Authority data shows that the rate of upheld complaints about unsuitable advice or mis-sold products fell to 26% in 2024, from 39% in 2022. Meanwhile, the number of Financial Ombudsman Service complaints about unsuitable advice or mis-sold products and services had also fallen, from 19,965 in 2021 to 9,794 in 2024.

 

FT Adviser

The Financial Reporting Council (FRC) has announced that Deloitte and Azets are under investigation over their audits of Stenn, a lender that collapsed amid links to alleged money laundering. Stenn, a financial start-up backed by private equity group Centerbridge, entered insolvency in December last year after HSBC, its lender, grew concerned about suspicious transactions. The FRC is examining audits by Azets, formerly known as Wilkins Kennedy, of Stenn for 2017, 2018 and 2022 and Deloitte’s audits of Stenn’s 2023 accounts. Azets was appointed after the previous auditor, EY, resigned in 2018, citing "concerns regarding certain related party transactions" and the "sufficiency of explanations" from management. Insolvency practitioners from Interpath are looking into various matters at Stenn Assets UK and Stenn International, including the structure of the business.

 

Bloomberg

Financial Times

The Times

Regulator Ofcom has relaxed Royal Mail's delivery targets, saying that the share of first-class mail that must be delivered next day will be cut from 93% to 90%. Meanwhile, the share of second-class mail delivered within three working days will be reduced from 98.5% to 95%. The new rules will also see Royal Mail allowed to deliver second-class letters on alternate weekdays, Monday to Friday, instead of six days a week – with the postal service granted permission to scrap Saturday deliveries of second-class letters. Ofcom has also set Royal Mail new enforceable backstop targets, saying that 99% of mail has to be delivered no more than two days late. The communications watchdog's decision to ease the rules will save Royal Mail between £250m and £425m a year. 

 

Sky News

BBC News

Financial Times

The Times

Regulators in Italy have initiated an investigation into allegations that Revolut misled clients regarding investment products. The Italian competition authority is examining complaints that Revolut promoted investments in shares by highlighting the absence of commissions while neglecting to disclose additional costs and limitations. Under Italian law, violations of consumer rights can result in fines between €5,000 and €10m.

 

Daily Mail

The Times

The recruitment market in the UK is experiencing a significant downturn, with PageGroup reporting a 13.1% drop in gross profits for the second quarter, falling to £194.8m from £224.2m in the same period last year. Chief Executive Nicholas Kirk noted: "The conversion of accepted offers to placements remained the most significant area of challenge," highlighting the ongoing macro-economic uncertainty affecting confidence. The company has reduced its workforce from over 7,000 recruiters to 5,300 due to declining fees. While Europe, particularly France and Germany, has been the worst-performing region, there is some improvement in Asia and the US, especially in engineering and construction roles. The outlook for the next six months remains "uncertain" as PageGroup anticipates an annual operating profit of around £22m, significantly lower than the £52.4m achieved in 2024.

 

The Independent

Daily Express

The Times

Private-equity recruiting is pressuring first-year banking analysts with grueling speed-dating-style interviews and job offers for roles starting years later. Firms compete aggressively to secure top talent early, sometimes reaching out before graduates even begin their jobs. In response, major banks like Morgan Stanley and Goldman Sachs have introduced stricter disclosure policies. JPMorgan now warns incoming analysts they risk termination if they accept future-dated offers within their first 18 months. Base pay in private equity can exceed $300,000, attracting young professionals despite repetitive early tasks and high stress. The intensity of this recruiting cycle has led some PE firms to delay offers, with Apollo and General Atlantic pausing their 2027 class hires. Though banks benefit from future client relationships with ex-employees, senior leaders like Jamie Dimon condemn the system as unethical. Some banks now aim to balance transparency and workforce management by excluding soon-to-depart analysts from sensitive deal work.

 

Wall Street Journal

As AI continues to disrupt the job market, university graduates are facing unprecedented challenges in securing employment. Reports indicate that vacancies for entry-level positions have plummeted by 32% since the launch of ChatGPT, while Indeed notes a 33% drop in graduate roles over the past year. Concerns are echoed by Dario Amodei, CEO of Anthropic, who warns that AI could eliminate half of all entry-level jobs in the next five years. Gary O'Sullivan from Sia emphasises the disconnect between graduates' education and employers' expectations, stating that only 36% of undergraduates receive support in developing essential AI skills. Despite these challenges, some experts believe that graduates can leverage their familiarity with AI tools to enhance their job prospects. “Companies that empower graduates to use AI responsibly and creatively won't just attract top talent,” says Demis Bril from Instant Offices.

 

London Evening Standard

New financial services jobs vacancies rose 3% quarter-on-quarter in Q2, according to Morgan McKinley’s London Employment Monitor, with fintech and demand for risk professionals driving the increase. Financial services vacancies in London were up 14% year-on-year, hitting 4,800. The report also suggests that fintech hiring in London is set to jump by 72% in 2025. Morgan McKinley's analysis found hiring sentiment remained "cautious" as global volatility, trade uncertainty and tax hikes having an impact. Mark Astbury, director at Morgan McKinley, said: "Many firms remain cautious on headcount due to ongoing cost-cutting and economic uncertainty and the Government’s decision to raise employer National Insurance contributions have tempered business confidence and impacted hiring."

 

City AM

The UK economy unexpectedly shrank by 0.1% in May, marking its second consecutive monthly contraction, according to the Office for National Statistics. Analysts had forecast slight growth. The downturn, driven by declines in manufacturing, retail, oil and gas extraction, and pharmaceuticals, challenges the government’s focus on economic revival. Chancellor Rachel Reeves faces increased pressure as weak output figures undermine key policy goals. Despite the May dip, the economy expanded 0.5% over the three months to May. Ben Jones, CBI’s lead economist, said the data “highlights the ongoing pressures,” noting patchy performance even in the services sector, which otherwise showed some growth.

 

BBC News

The Guardian

The Independent

UK retail footfall decreased by 1.8% year-on-year in June, according to British Retail Consortium data, with this marking a dip on May's 1.7% decline. High street stores suffered a 3% year-on-year fall in shopper numbers, while retail park and shopping centre custom was down by 1.1% and 1.6% respectively. Pointing to the impact of June's heatwave, Helen Dickinson, chief executive of the BRC, commented: "Extreme weather meant shoppers stayed away from their local stores last month, leading to a decline in footfall across all three key retail locations."

 

The Independent

Daily Mail

The Times

Store closures across London have reached their highest level in a decade, with new data showing retail vacancy rates climbing to 6.2% – significantly higher than the 1.9% recorded in surrounding areas. Property analysts CoStar attribute the sharp rise in part to the expanded Ultra Low Emission Zone (Ulez), which now covers the entirety of Greater London and has led to reduced leasing demand, especially in outer boroughs like Bromley. While the Mayor of London's office maintains that Ulez has not adversely affected retail footfall or spending, CoStar's researchers warned that high vacancy levels may deter future investment.

 

The Daily Telegraph

Former Chancellor Lord Lamont warned Parliament that AstraZeneca leaving the London Stock Exchange would be a “devastating blow.” Reports suggest CEO Sir Pascal Soriot is considering moving the listing to the US, the company’s largest market. Lamont criticised the government’s failure to back the life sciences sector, referencing its delayed industrial strategy and the scrapped £450m vaccine site expansion after a missed funding deadline. He emphasised that major pharma firms should be “encouraged” rather than treated as “cash cows.” Treasury minister Lord Livermore acknowledged the sector’s importance, saying it’s “fundamental to our industrial strategy.”

 

The Times

Poundland is facing supply shortages after major suppliers, including Procter & Gamble and Nestlé, tightened credit terms due to uncertainty surrounding the retailer's future. The discount chain was sold for £1 to US restructuring firm Gordon Brothers, which has proposed a restructuring plan involving store closures and rent cuts, alarming suppliers and leading to reduced payment windows. As a result, key product lines are understocked in stores, particularly in London, with noticeable gaps in Nestlé chocolates and Procter & Gamble goods. Although suppliers are not formally involved in the court-led restructuring process, Poundland has begun briefing them on recovery plans and hopes credit restrictions will ease once its strategy is implemented. A final court ruling on the restructuring is expected by the end of August.

 

The Times

Shares in luxury fashion brand Mulberry fell sharply as it reported a 21% decline in annual sales, totalling £120m, and widened pre-tax losses to £24m. The company attributed the downturn to "macroeconomic conditions, uncertainty, and inflationary pressures," according to its chief executive, Andrea Baldo. To bolster its finances, Mulberry raised £20m from its largest shareholders, Challice and Frasers Group, who also appointed Frasers executive James France to the board. As part of its turnaround strategy, Mulberry plans to close 12 shops in Asia and refresh its brand identity. Baldo stated that the company has made "significant progress" despite the challenging environment.

 

The Times

Daily Mail

London Evening Standard