BoE governor says it has not forgotten lessons of financial crisis, as it eases capital rules

Ads for Nike, Superdry, and Lacoste have been banned in the UK by the Advertising Standards Authority for misleading consumers regarding the environmental sustainability of their products. The companies used terms like 'sustainable' in their paid Google adverts without providing adequate evidence to support these claims.

Prof David Miles, an official from the Office for Budget Responsibility (OBR), stated that Chancellor Rachel Reeves' recent speech did not mislead regarding the economic challenges facing the UK ahead of the upcoming Budget. He emphasized that her messaging was consistent with the realities she is addressing.

The Bank of England (BoE) has announced plans to ease capital requirements for high street banks for the first time in a decade, reducing the reserve lenders must hold to stimulate lending to households and businesses. This decision comes amid ongoing discussions about the independence of the Office for Budget Responsibility (OBR) and the implications of budget leaks.

The Bank of England has raised concerns about increasing financial risks stemming from artificial intelligence (AI) and lending practices, highlighting the potential for instability in the financial system. This warning comes amid a backdrop of significant debt-fueled investments in AI infrastructure, which the central bank believes could lead to adverse market conditions.

Bitcoin halted its recent decline, and stocks showed a cautious rebound as the global flight from risky assets began to ease. The Bank of England adjusted its estimate for the Tier 1 capital requirements for UK banks to approximately 13% of risk-weighted assets, while also warning of potential risks associated with hedge fund strategies like the basis trade.

The average house price in the UK reached £272,998 in November, with annual growth slowing to 1.8%, according to Nationwide. This slowdown follows a period of uncertainty linked to the Autumn Budget and a slump in house prices observed in September, indicating a cooling housing market.

The Bank of England has issued a warning regarding the increasing risks associated with the basis trade strategy employed by hedge funds, which has seen net gilt repo borrowing reach nearly £100 billion in November, the highest since data collection began. This strategy involves borrowing cash against gilts as collateral, raising concerns about potential market volatility if these trades unwind disruptively.

Stifel Financial Corp. has announced plans to shut down its UK-based equities trading business, leading to significant staff cuts, as reported by sources familiar with the situation. This decision reflects a strategic pullback in the company's operations in the UK market.