City AM

Landlords have struggled to shift large London offices this year, as nerves over hybrid working and higher interest rates continue to plague the upper end of the market. Only a few office buildings in London have sold for over £100m in the first half of the year, an analysis from CoStar found, none of which were in the City. Property giants Great Portland Estates (GPE) and Derwent have both put expensive buildings on the market only to find deals fall through or that they have to pull them from the market after offers fell short of expectations. The higher interest rate environment of the last two years has pushed down on top-line prices of commercial property, as market players struggle to afford the upfront cost of the property and any credit servicing. ✍️ Ali Lyon Continue reading here 👇 https://lnkd.in/dJ4aeq7G

The number of staff employed by UK banks saw its biggest increase in a decade last year, new data shows, as headcount returned to pre-pandemic levels and lenders enjoyed record profits. UK banks employed 612,519 people globally in 2023, according to figures compiled by trade publication The Banker. This number is up by just over 21,000, or 3.56 per cent, from 591,435 in 2022 and marks the biggest increase since the dataset started in 2013. ✍️ Lars Mucklejohn Continue reading 👇 https://lnkd.in/deXqwb9c

Business confidence improved in the second quarter of the year, according to a survey, as firms hope to benefit from an improving economic picture. The Institute of Chartered Accountants of England and Wales business confidence monitor increased for the third successive quarter in the three months to June, climbing to 16.7. This took business confidence to its highest level since the start of 2022. The ICAEW noted that sentiment is now more than double its pre-pandemic average. ✍️ Christopher Dorrell Continue reading 👇 https://lnkd.in/d9nDDC9W

Rachel Reeves’ Treasury has pledged to “embrace” the fintech sector today after a trade body said the industry could bolster the government’s coffers to the tune of £330bn over the next five years. In a policy plan for the sector, sent to Reeves and shared exclusively with City A.M., fintech body Innovate Finance said fintech firms could deliver £328bn in tax revenues to the Treasury by 2029 if ministers were able to unlock a wave of institutional investment and streamline data policy. “Fintech is one of the most obvious drivers for growth in the UK,” Janine Hirt, Innovate Finance boss, told City A.M. “We would love to see an early commitment from government to supporting the growth of the fintech sector by introducing smart data legislation in the king’s speech, reviewing the proposed implementation of the new mandatory reimbursement scheme for authorised push payments, committing to delivery of the Mansion House Pensions Compact to increase access to growth capital, and focusing regulators on innovation and growth,” she added. ✍️ Charlie Conchie Continue reading here 👇 https://lnkd.in/dSY5P7Zi

Thames Water is continuing to fight for survival as it searches for investment to help pay down its mountain of debt. In its annual results, the embattled water company confirmed that its liquidity at the end of June was £1.8bn, “sufficient to found our operations for the next 11 months”. The firm said it will continue engaging with potential investors and creditors to seek new equity and extend its liquidity runway. “Thames Water will continue to invest to meet its regulatory and environmental obligations and to improve the operations of the business as we execute our Turnaround Plan,” it confirmed. ✍️ Christopher Dorrell Continue reading 👇 https://lnkd.in/eZii_75u

UK Chancellor Rachel Reeves has been bolshy in the past with threats to force pension funds into backing unlisted assets. In an inaugural speech to business leaders yesterday, she was clear that pension cash would be at the heart of her investment plans. However, it was unclear how she intends to do that and levers she will pull to get the cash glowing. The Treasury did not respond to a request for comment yesterday. ✍️ Charlie Conchie Continue reading 👇 https://lnkd.in/eHEGfHZE

The London prime property market flourished under the last Labour government, but past performance is no guarantee of future results. Still, some in the industry think prime property prices could see a bounce under the new government. “A lot of buyers postponed plans due to a combination of high interest rates and political uncertainty,” co-founding director of Aston Chase, the high-end North London estate agent, Mark Pollack, said. “[This] will have resulted in a degree of pent-up demand which I suspect will help to maintain market stability.” Pollack added there could even be a boost to markets if interest rates come down and stamp duty is abolished. ✍️ Amber Murray Continue reading 👇 https://lnkd.in/eX3ZfzJG

Business lobby groups and the City of London have said the sector “stands ready” to work with Keir Starmer’s new Labour government to achieve “growth, growth, growth”. The Prime Minister promised stability and a focus on his manifesto mission to achieve the “highest sustained growth in the G7” during the election campaign which saw him enter Downing Street on Friday with a majority of 170 – the largest since Tony Blair’s first term. But he faces an uphill battle to reinvigorate the UK’s GDP, which has been lacklustre since the pandemic, despite economists predicting a return to expansion after stagnating in May. City figures expressed a desire for stability, in the wake of the political turbulence and economic upheaval that beset markets during Brexit, Covid, and Liz Truss’ brief tenure – but want Labour to give clarity on big-ticket items including planning and workers’ rights reform. Continue reading 👇 https://lnkd.in/e_aCaEEb

A recovery in the UK’s all-important services sector is expected to help push the economy back into growth, resuming the recovery from last year’s shallow recession. City economists expect the economy to grow 0.2 per cent in May thanks to a solid expansion in services and a recovery in construction. This would mean the economy returned to expansion after stagnating in April. Economists pointed to figures released last month, which showed that consumers spent much more than expected on things like clothing and furniture in May. The construction sector is also likely to perform better due in part to better weather. Analysts at Capital Economics said they expected the “economic recovery to resume in May” while Deutsche Bank said growth would “bounce back”. Read the full story here 👇 https://lnkd.in/ebXExqqC

The Bank of England has continued to receive divergent signals from the labour market, which has complicated the outlook for rate cuts. The latest survey from KPMG and the Recruitment and Employment Confederation (REC) showed that starting salary inflation for permanent roles increased at its fastest rate for eight months in June. The survey suggested that firms were willing to bolster starting pay to attract the best candidates. Temporary pay rates also rose further, albeit slower than in May. Yet, the survey also showed a further decline in demand for workers, partly due to the election. Continue reading here 👇 https://lnkd.in/euCF9Hc7