Good morning! Here’s what you need to know on Tuesday.
1. Two senior bankers have called for clarity over Britain’s future relationship with the European Union, warning that jobs and investment depend on a prompt decision, the Times reports. Stuart Gulliver, outgoing chief executive of HSBC, and Lloyd Blankfein, chief executive of Goldman Sachs, struck separate upbeat notes yesterday about London’s prospects after Brexit, but emphasised that decisions needed to be made quickly about Britain’s trading relationship with the EU once it has left the bloc.
2. Nationwide has paved the way for an across-the-board increase in mortgage costs by announcing that a 0.25% interest rate rise would be passed on in full to its 600,000-plus variable-rate home loan customers, the Guardian reports. The building society said that if, as is widely expected, the Bank of England lifts the base rate by 0.25% to 0.5% on Thursday, it would increase both of its variable rates by 0.25%.
3. Chemicals giant Ineos has bought Belstaff, the British heritage fashion brand, in the latest off-centre move by its founder and chairman, billionaire Jim Ratcliffe, a month after he unveiled plans to start making cars, the Telegraph reports. On announcing its purchase of Belstaff, Ineos cited its “links to automotive”.
4. Philip Hammond is pinning his hopes for a successful budget next month on a hedge fund economist, the Times reports. The chancellor said yesterday that Steffan Ball, chief economist at Citadel, a $US26 billion hedge fund based in Chicago, was his new economic adviser.
5. The growing number of high net worth individuals willing to pay for someone else to help them make lifestyle and travel decisions has prompted concierge Ten to seek a stock market flotation, the Telegraph reports. The London-based company is eyeing a listing on the junior Aim market in a bid to raise £40m and help it continue its domestic growth as well as increase its overseas footprint.
6. Pearson is understood to be nearing a sale of its English-language teaching business to two Asian private equity funds for up to $US400 million, the Times reports. The educational publisher has identified the business as ripe for disposal as part of a fire sale of assets.
7. Japan’s Nikkei share average slipped on Tuesday, taking its cue from losses on Wall Street after a report that U.S. lawmakers are discussing more gradual corporate tax cuts rather than reducing it more aggressively, Retuers reports. The Nikkei was down 0.4 per cent at 21,933.52 at the end of morning trading. On Monday, the Nikkei ended flat after hitting a 21-year intraday high, while the broader Topix fell 0.4 per cent to 1,763.64 and the JPX-Nikkei Index 400 fell 0.5 per cent to 15,599.79.
8. A pack of hedge funds is closing in on a takeover of BrightHouse, Britain’s biggest rent-to-own retailer, just days after it was slapped with a £15m compensation bill by the City watchdog, Sky reports. BrightHouse’s bondholders have set an informal deadline of 6 November to strike a deal to restructure its balance sheet.
9. Google attacked the European Union for basing its record-breaking €2.4bn (£2.1bn) penalty in June against the search-engine giant on untested antitrust theories and ignoring the competitive pressure exerted by the likes of Amazon and eBay, the Independent reports. Google contends that a fine “was not warranted” on grounds that the European Commission put forward a novel theory and previously signalled the case could be solved without a financial penalty by initially seeking an amicable solution with the Alphabet unit.
10. The price of butter is exploding in Europe, with a shortage hitting France, one of the continent’s biggest consumers. The price of 100 kgs of butter has jumped from just over €400 at the start of the year to close to €600, according to the EU’s Milk Market Observatory. Prices are rising amid a shortage of supply across the world.
And finally … Business Insider is looking for nominations for the hottest young talents in British finance right now. If you, or anyone you know, is making waves in the City of London (or anywhere else in the UK) and is under 31, we’d love to hear from you. Get in touch on social media, or email: [email protected]