Stifel Cuts London-Based Equities Trading Staff in Pullback

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.

Prof. David Miles, an official from the Office for Budget Responsibility (OBR), testified before MPs that Chancellor Rachel Reeves did not mislead the public regarding the challenges facing the UK ahead of the upcoming Budget. He stated that her messaging was consistent with the economic situation she encountered.

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 OECD has projected that the UK economy will experience faster growth in 2026, alongside a decrease in inflation rates. This forecast reflects a positive adjustment in the economic outlook, influenced by recent budget measures aimed at stimulating growth.

The OECD has projected a slowdown in the UK economy for the upcoming year, attributing this to anticipated tax increases and tighter government spending measures. This forecast aligns with concerns over the sustainability of the UK’s economic recovery amidst rising fiscal pressures.

The OECD has raised its growth forecast for the UK in 2026, attributing this positive outlook to the anticipated impacts of the recent budget measures. This adjustment comes amid ongoing discussions about the UK’s economic stability and fiscal policies.

UK house prices increased by 0.3% in November, reaching an average of £272,998, according to Nationwide, despite concerns surrounding the recently announced mansion tax by Chancellor Rachel Reeves. This rise defied the expectations of economists who had predicted a smaller increase of 0.1%.

UK stocks have gained as bank shares rallied, with significant increases noted among major banks like NatWest, Lloyds, and Barclays. This positive momentum follows investor optimism regarding potential tax reprieves for the banking sector in the upcoming budget announcement by Chancellor Rachel Reeves.