Reeves scraps post-crisis banking rules in scramble to boost growth
The telegraph·- Chancellor Rachel Reeves has canceled banking rules aimed at enhancing safety in the financial sector post-financial crisis to spur economic growth. - The changes will reduce the number of services that must remain segregated and allow retail banks to engage in certain hedging activities, claiming it will support growth and create jobs. - The new rules are expected to provide banks with up to £80 billion in additional support for businesses and facilitate more shared operations between retail and investment banking.UK March monthly GDP +0.3% vs -0.2% m/m expected
Investinglive·- Last month, service sector output increased by 0.5%, yet it is expected to decrease by 0.1% month-over-month. - Industrial output is projected to decline by 0.3% compared to the previous month's growth of 0.5%. - Manufacturing output is unchanged at 0.0%, while construction output is expected to decrease by 0.5% after a rise of 1.0%.UK businesses eyeing shift to ‘more predictable’ tax regimes
cityam·- UK businesses are contemplating relocating operations abroad due to instability in the domestic tax and regulatory environment, as revealed in a survey by Baker Tilly International. - The survey indicates that 39 percent of UK firms have delayed or cancelled major investments due to uncertainty from rapid policy changes. - In contrast, businesses in the UAE report stable market conditions and lower disruption from political instability, with a significant number expressing confidence in their investment climate.UK advances money market fund reforms to improve sector resilience
Invezz·- The UK government has confirmed plans to reform regulations for money market funds, which have been closely monitored since market turmoil in March 2020. - These reforms aim to increase liquidity requirements, improve asset sale capability under market stress, and enhance the resilience of the sector. - The updated framework is expected to be implemented by the end of the year, contingent on legislative approval, following consultations initiated by the Bank of England.UK economy grows 0.6% in Q1, but Iran conflict threatens recovery momentum
Invezz·- The UK economy expanded by 0.6% in the first quarter of this year, showing resilience amid rising geopolitical tensions and surging energy prices. - The growth was driven primarily by a strong performance in the service sector, with all three major economic sectors reporting gains. - However, economists warn that the ongoing Middle East conflict could significantly pressure future growth, affecting consumer prices and business confidence.