The new chancellor’s emergency fiscal statement today helped calm markets, with sterling higher overall and circling the $1.14 mark while investors were prepared to lend to the government for 10 years at under 4% as gilt yields fell back.

London’s FTSE 100 was higher, led by some of the sectors hit hardest by the now defunct “mini-Budget”, including housebuilders and UK mortgage banks. The original “mini-Budget” mesures hit both sectors, when the outlook for UK interest rates was upended and a record number of home loans were pulled from the market.

This afternoon’s Commons statement by Jeremy Hunt will include details of the medium-term fiscal plan due on 31 October.

The statement came on the first trading session since the Bank of England ended its government bond-buying scheme.

Read more on market reaction

FTSE 100 Live Monday

• Sterling trades around $1.13 as new Chancellor tears up tax cut plans

• Investors will lend to UK at under 4% for 10 years after Hunt demolishes ‘mini-Budget'

• Beer and pub industry condemns Hunt’s plans to reverse Alcohol Duty freeze

• Eve Sleep to enter administration

• Hargreaves Lansdown boss to step down

Jeremy Hunt’s new economic advisory council: who are the new members?

Monday 17 October 2022 17:21 , Simon Hunt

This afternoon Jeremy Hunt told the House of Commons he had appointed of a new “economic advisory council.” The UK’s latest chancellor said the council would offer him advice – independent from the Treasury and the Bank of England – that would assist him in his new rule at number 11.

But who are the members of the four-strong council? Here’s a quick look at some of the names announced.

Rupert Harrison is an economist who served as Chief of Staff to George Osborne between 2006 and 2015, from when Osborne was Shadow Chancellor and while he served as Chancellor of the Exchequer. Until recently Harrison was also a columnist for the Evening Standard.

A graduate of Magdalen College, Oxford, he now works as a portfolio manager for American investment management firm Blackrock.

Sushil Wadhwani is a former member of the Bank of England’s Monetary Policy Committee, serving between 1999 and 2002.

He began his career as an academic at the London School of Economics, earning a PhD in Economics. He went on to found an asset management firm, PGIM Wadhwani, of which he is Chief Investment Officer.

Karen Ward is the Chief Market Strategist for EMEA at American investment firm J.P. Morgan Asset Management.

She was previously Chair of the Council of Economic Advisers for the then Chancellor of the Exchequer, Philip Hammond, until 2017. In this role she advised the Chancellor on macroeconomic issues including fiscal strategy and Brexit. She holds a Masters in Economics from University College London.

Gertjan Vlieghe is a former economic assistant to the governor of the Bank of England. After working at Deutsche Bank and London hedge fund Brevan Howard, in 2015 he became an external member of the Bank of England’s Monetary Policy Committee.

He holds a PhD from the London School of Economics.

FTSE 100 closes up 61 points as investors react to Hunt statement

Monday 17 October 2022 17:01 , Simon Hunt

The FTSE 100 closed up at 6,920, up 61 points as investors reacted to the news of a significant change in fiscal policy by Britain’s new chancellor, Jeremy Hunt.

Real Estate stocks were the day’s biggest winners, with British Land and Land Securities up 5.2% and 4.8% respectively. Hargreaves Landsdown dropped the most after boss Chris Hill announced he was stepping down.

Gilt yields cooled on news of Hunt’s greater fiscal restraint, while the pound reclaimed $1.14, up around 1.7 cents since yesterday.

Shadow Chancellor Rachel Reeves: ‘chaotic Zigzagging U-turns’ destroy credibility of government

Monday 17 October 2022 16:55 , Simon Hunt

Shadow Chancellor Rachel Reeves tore into the government’s mini-budget and subsquent U-turns in the Commons.

Addressing chancellor Jeremy Hunt she said: “Can he not apologise?” ... for chaotic zigzaging U-turns”.

Jeremy Hunt appoints “economic advisory council”

Monday 17 October 2022 16:46 , Simon Hunt

Jeremy Hunt has said he has appointed a new “economic advisory council” to assist him with his now role as chancellor.

The council includes former chief of staff for George Osborne, Rupert Harrison, former Bank of England Monetary Policy Committee, Sushil Wadhwani, and Karen Ward, Managing Director, is the Chief Market Strategist for EMEA at J.P. Morgan Asset Management.

“It is vital we can create stuability on which future generations can build,” Jeremy Hunt said.

Jeremy Hunt: “We have had short term difficulties caused by a lack of an OBR forecast."

Monday 17 October 2022 16:37 , Simon Hunt

The new chancellor has said a lack of an OBR forecast is partly to blame for market turbulance following the mini-Budget announced in September.

Jeremy Hunt told the House of Commons: “We have had short term difficulties caused by a lack of an OBR forecast caused by the mini-Budget.

“The central responsibility of any government is to do what is necessary for economic stability

“We are a country that funds our promises and pays our debts.”

Jeremy Hunt addresses House of Commons over fresh spending plans

Monday 17 October 2022 16:32 , Simon Hunt

Jeremy Hunt has taken to the dispatch box to address the House of Commons over his fresh spending plans, in which he intends to reverse a wide range of tax cuts announced in the September mini-Budget.

Pound reclaims $1.14 as investors welcome Hunt tax changes

Monday 17 October 2022 15:51 , Simon Hunt

The pound has gained 1.7 cents against the dollar today, touching the highest it’s been in over a month, as investors welcomed a string of tax policy U-turns ushered in by the arrival of Britain’s latest chancellor, Jeremy Hunt.

Sterling is up around 10 cents against the dollar since it reached record lows in the days following the announcement of Kwasi Kwarteng’s mini-Budget on September 23.

Russ Mould, investment director at AJ Bell, said: “New chancellor Jeremy Hunt will be pleased to see the FTSE 100 rising, the pound gaining against the dollar and the euro, and gilt yields falling in response to his new policy salvo.

“Achieving some degree of near-term calm is a good thing, but neither Mr Hunt nor prime minister Liz Truss can rest on their laurels. The medium-term challenge of navigating a path between recession and inflation remains and then come the long-term tasks of picking sterling off the floor and managing the nation’s £2.4 trillion national debt.”

Gilt yields cool after Hunt mini-Budget U-turns

Monday 17 October 2022 15:30 , Simon Hunt

After a tumultuous ride for Britain’s bond markets over the past few weeks which saw the Bank of England make a major intervention, gilts seemed to have cooled in response to Jeremy Hunt’s mini-Budget tax U-turns today.

Yields on the 10-year gilt fell below 4%, but remain above the 3.2% rate the held before the original mini-Budget announcement by Kwasi Kwarteng on 23 September.

Bank of America profits down but shares jump

Monday 17 October 2022 15:06 , Mark Banham

Bank of America third-quarter profit fell 8% to $7.1 billion (£6.2 billion) as company wrote down a $898 million provision for credit losses during the quarter.

The funds put aside for credit losses was more than the $624 million this time last year.

However, in pre-market trading in the New York Stock Exchange (NYSE) Bank of America shares gained around 2.4%.

Net interest income at the group was $13.77 billion, up 24% from $11.09 billion last year, due to a rise in interest rates.

Non-interest income declined 8% to $10.74 from $11.67 billion last year, as higher sales and trading revenue was offset by less investment banking and asset management fees as well as lower service charges.

Bank of America chair and CEO Brian Moynihan, said: “Our US consumer clients remained resilient with strong, although slower growing, spending levels and still maintained elevated deposit amounts. Across the bank, we grew loans by 12% over the last year as we delivered the financial resources to support our clients.

“Our team adapted well to our new capital requirements. I am proud of our teammates’ efforts to deliver for our clients and shareholders.”

BP to buy US biogas producer Archaea Energy for £3.6bn

Monday 17 October 2022 15:04 , Simon Hunt

BP has sealed a 4.1 billion dollar (£3.6 billion) deal to buy US renewables firm Archaea Energy.

The move for the biogas producer is the latest deal by BP designed to rapidly grow its alternative fuels business in an effort to support its net zero ambitions.

The British oil major has offered to buy Archaea for 26 dollars per share, representing 3.3 billion dollars and will take on debt worth a further 800 million dollars.

BP said it will roughly double the company’s expected earnings from renewable natural gas, taking this to around 2 billion dollars by 2030.

Wall Street opens higher after corporate news reassures

Monday 17 October 2022 14:44 , Michael Hunter

Wall Street’s S&P 500 was higher in opening trade after a string of reassuring corporate news, including better-than-expected quarterly earnings from Bank of America.

The broad New York stock index was up 3% in early trade at 3,674.60. Bank of America’s stock out-ran the wider market, rising 5%.

BofA’s income was boosted by rising interest rates at the Federal Reserve, and shares in the wider banking sector rose as investors mulled the implications of the numbers. Goldman Sachs, which is due to file results tomorrow, was up 3%. Bank of New York Mellon was up 6%.

Bank of America shares up in pre-market trade after earnings beat forecasts

Monday 17 October 2022 14:12 , Michael Hunter

The US’s second biggest lender reported a smaller-than-forecast drop in quarterly earnings, sending it shares up by around 3% in pre-market trading.

Bank of America said resilient demand for consumer loans helped as net interest income rose. Overall profit in the third quarter fell 9%, helped by rising income as the Federal Reserve’s rate rises fed through. Earnings per share, the measure most watched by Wall Street analysts, came in at 81 cents for the period, stronger than the 77 cents forecast.

FTSE 100 higher with housebuilders and mortgage banks in demand

Monday 17 October 2022 13:13 , Michael Hunter

London’s FTSE 100 was higher in afternoon trade, after the demise of the government’s “mini-Budget” lifted housebuilders and mortgage banks.

Both sectors took a hit after the original tax and spending plans were unveiled a little over three weeks ago after the measures upended the outlook for the speed at which UK interest rates would rise. A record number of fixed-rate home loans were pulled from the market and as wider confidence drained away from homebuyers, reservation rates at housebuilders fell in a sign of a potential slowdown in the market.

After Jeremy Hunt’s demolition of the measures, buyers moved back in for housebuilders and UK-focused banks. Barratt Developments was up 18p at 365p. Persimmon rose 57p to 1268p, both up by around 5% apiece.

Barclays was up 3p at 146p, a gain of over 2% and. Lloyds was up 0.5p at 43p, a rise of around 1%.

Call for ‘answers’ on changes to government’s household energy bill support scheme

Monday 17 October 2022 12:50 , Michael Hunter

There are calls for more detail on the outlook for changes to the government’s now-curtailed energy bill support package for UK households.

Jeremy Hunt said today that the measures to cap average annual household bills at £2,500 per year would run until next April. But the original plan’s two-year duration is now likely to be curtailed after Hunt said there would be a “Treasury-led review” designed to cut its cost to the taxpayer.

Wholesale gas prices have fallen from the peaks they touched in August while the measures were being drawn up either side of Liz Truss’s early September win in the Tory leadership contest. They were continuing to fall today, which may help ease the worst of the fears about the impact of the changes.

But there are calls for clarity from charity groups.

Among them, National Energy Action’s chief executive, Adam Scorer, said:

“Households on the lowest incomes are already rationing their energy usage to dangerous levels. £2,500 is beyond their means. Many vulnerable people were holding on by their fingertips. Government has to be very, very careful it doesn’t prise them away.”

He added: “This is an almighty trade-off. In seeking the confidence of markets, the government has created huge uncertainty for households. Everyone knows why decisions have been made at breakneck speed, but there are questions that need to be answered, and answered quickly. “

Liz Truss promises stability after Hunt tax U-turns

Monday 17 October 2022 12:43 , Simon Hunt

Liz Truss has promised ‘stability’ and said she would “chart a new course” after her new chancellor, Jeremy Hunt reversed almost all the tax policies her government announced less than a month ago.

City experts react: Jeremy Hunt demolishes ‘mini-Budget’

Monday 17 October 2022 12:27 , Michael Hunter

Jeremy Hunt’s near-total demolition of the Truss government’s so-called “mini-Budget” after a little over three weeks has been clearly felt in the markets.

It lifted the pound back around the $1.13 mark. The returns demanded by investors to lend to the UK for a decade back under 4%, down from a level nearer 5% at the height of the market turmoil caused by the original announcement of the now-notorious measures.

Here are some of the highlights from City experts to the dramatic announcement made this morning by the new Chancellor:

Susannah Streeter, senior investment and markets analyst Hargreaves Lansdown: “With the government in special measures, no part of the Truss administration’s plans are immune from being ripped down and thrown out in the quest for stability. The Prime Minister’s authority is now so diminished that even her centrepiece strategy to alleviate the cost-of-living crisis is being sharply curtailed with the freezing of household energy bills coming to an end in April. What was meant to be two years of support has been slashed to just six months.”

Matthew Ryan, Head of Market Strategy at global financial services firm Ebury: ““This should go some of the way to restoring a semblance of confidence in UK assets and removes much of the ‘mini-budget’ risk premium attached to the pound. That said, we far from expect it to be plain sailing for sterling from here on out. The UK government’s credibility has taken a massive hit from the budget fiasco, with markets still none the wiser as to how and when the Tories plan to close Britain’s large fiscal gap.”

Laura Suter, head of personal finance at AJ Bell: “That sound you can hear is the death knell for Trussonomics, with the vast majority of her tax cutting plans now consigned to the bin. People have had yogurt in their fridge that’s lasted longer than some of the Government’s planned tax cuts, and it’s clear that Liz Truss has opted to have one last attempt at saving her skin by ditching her economic principles rather than try to cling on to her policy plans”

James Smith developed markets economist at Dutch bank ING: “Ultimately, the monetary value of the deficit reduction measures to be announced today matters, and so does the message sent about the importance of fiscal sustainability. A rally to 4% for 10-year gilts is a likely outcome but a more difficult question is whether these gains will be sustained.”

At a glance: UK gas prices at 3-month low as Hunt announces review of energy bill support

Monday 17 October 2022 11:55 , Michael Hunter

The government has pledged to keep its support measures for household energy costs in place until April 2023.

But after that, a Treasury-led review will look at ways to bring the down the multi-billion cost of the scheme to the taxpayer. The Energy Price Guarantee, designed to cap the annual energy cost of a typical UK home at £2,500 per year, was going to run for two years.

But since it was drawn up as one of the first policies of Liz Truss’s government in early September, wholesale gas prices have eased back significantly from their peaks in August at the height of concern about the impact of Russia’s war in Ukraine on supply. Since then, European countries have improved their storage capacities and shipments of liquified natural gas to replace Russian supply have been agreed.

As the graph shows, new Chancellor Jeremy Hunt’s announcement of a review into the UK’s energy subsidy comes with the wholesale prices that directly affect household bills at their lowest in three months.

Hunt said: “The prime minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices.”

Beer and pub industry condemns Hunt’s plans to reverse Alcohol Duty freeze

Monday 17 October 2022 11:50 , Simon Hunt

Representatives of the beer and pub industry have hit out at Jeremy Hunt’s decision to reverse a planned freeze in the rate of Alcohol Duty.

Emma McClarkin, Chief Executive of the British Beer and Pub Association said: “The Chancellor’s decision today to reverse the Alcohol Duty freeze is a huge blow to brewers and pubs. The freeze would have delivered a £300million saving to our industry at a time when we desperately need any relief we can get, to help to keep a lid on spiralling costs and keep the price of pint affordable for pub goers this winter.

“The cost of doing business is completely out of control for pubs and brewers and the failure to act today to reduce pressures on businesses will hit them extremely hard. “

Ex chancellor George Osbourne praises Jeremy Hunt for tax U-turns

Monday 17 October 2022 11:41 , Simon Hunt

Former chancellor George Osbourne has praised Jeremy Hunt after he announced he would reverse almost all tax-cutting plans set out by Kwasi Kwarteng in his September mini-Budget.

Investors move back in for UK debt, sending returns demanded for 10-year bonds back under 4%

Monday 17 October 2022 11:30 , Michael Hunter

The returns demanded by investors to lend money to the UK are easing after Jeremy Hunt reversed all but two of the tax cuts planned by his predecessor as the Truss government’s “mini-Budget” was dramatically dumped.

Benchmark 10-year gilts were yielding 3.979% after the announcement, having been at 4.051% in morning trade beforehand.

The long-term loans that were at the centre of the Bank of England’s intervention in the market after the original spending plans were also in demand with buyers. The yield on 30-year gilts eased to 4.398% after Hunt’s announcement from 4.47% beforehand.

Energy price cap policy cut short under Hunt plans

Monday 17 October 2022 11:24 , Simon Hunt

The government’s enegy support package has been cut short under new plans set out by Jeremy Hunt today, as the new Chancellor said the support would remain universal only until April.

After this date, the support will be capped and targeted following a review.

It was not appropriate to “expose public finances to international volatility in energy markets,” Hunt said.

Sterling back over $1.13 as new Chancellor tears up tax cut plans

Monday 17 October 2022 11:18 , Michael Hunter

There’s been an instant market response to the new Chancellor’s demolition of the government’s previous tax cut package.

The pound rose above $1.13 as Jeremy Hunt announced that he would reverse almost all the tax cut plans of the social-called “mini-Budget in an early statement given outside the chamber of House of Commons, in a move agreed with the speaker, due to what Hunt called “the market sensitive” nature of the re-drawn plans. He also said the U-turns were “all designed to provide confidence and stability”.

A Treasury-led review will determine how the government’s measures to cap energy bills could cost the taxpayer less. The support on offer up to April next year will not change, but after that “a new approach” will be taken, although the objective to help those most in need will stay.

Sterling was up 1.3% for the day to $1.1313

Jeremy Hunt reverses almost all tax cuts announced in the mini-Budget

Monday 17 October 2022 11:15 , Simon Hunt

Proposed custs to income tax, dividends and an increase in tax-free shopping are all being reversed, Jeremy Hunt said in a speech setting out new tax and spend plans. The measures are set to bring in £32 billion, he said.

“We will reverse almost all the tax measures announced in the growth plan almost three weeks ago,” the new chancellor said.

“Growth requires confidence and stability, and the United Kingdom will always pay its way.”

Jeremy Hunt begins spending speech

Monday 17 October 2022 11:09 , Simon Hunt

The UK’s new chancellor, Jeremy Hunt, takes to the podium at a press conference in Downing Street to lay out fresh plans on tax and spending policies after the disastrous September mini-Budget forced a string of government U-turns.

The pound hovers near $1.13 as he begins his speech.

He is set to lay out his plans to parliament in the House of Commons at 3:30pm this afternoon.

City comment: This time honesty is the best policy from the Chancellor

Monday 17 October 2022 10:47

Whatever the details of the contents of Jeremy Hunt’s big reveal, it is nailed on that voters are going to be exposed to chillier fiscal winds than they were facing in Kwasi Kwarteng’s fairy tale mini-budget less than a month ago.

For too long a succession of Chancellors have delivered “and they all lived happily ever after” budgets, fiscal statements and other assorted messages.

It is time for honesty.

The public understands that the country is in a major bind. A hat-trick of massive economic shocks - the global financial crisis, the pandemic and the energy price surge triggered by the Russian invasion of Ukraine - have left the public finances in tatters.

Inflation is far from under control and may hit double digits this week. Andrew Bailey has made it clear that interest rates will have to go painfully high to rein it in.

Meanwhile Brexit makes it harder for exporters to reap the benefit of the weaker pound. None of this smacks of quick fixes. We are in for a multi-year slog that will be tough for everyone, households and businesses alike.

Better to get that news out there today and in the coming months rather than constantly leading on the electorate like the Child Catcher in ‘Chitty Chitty Bang Bang’ with lollipop promises of brighter things ahead driven by the timing of the electoral cycle.

No one wants to talk the economy down, but if the country’s leaders do not have the courage to level with voters, the reckoning will just be dragged out ever longer with a far nastier hard landing at the end of it.

ITV speculation lifts shares, FTSE 100 improves

Monday 17 October 2022 10:24 , Graeme Evans

ITV shares have rallied on speculation over the value of the Studios arm behind hit shows Love Island and Bodyguard.

The 8% surge for the struggling FTSE 250-listed stock came as the Financial Times said that ITV’s boss Dame Carolyn McCall is actively exploring options for the division, including whether to sell a stake.

The review, which follows recent expressions of interest from private equity and other production businesses, comes as analysts estimate that ITV’s Studios wing could be worth more than the current £2.5 billion stock market value.

ITV hasn’t commented on the speculation but shares still rose 5p to 66.7p, having fallen more than 40% so far this year.

Other big risers in the FTSE 250 included cyber security firm Darktrace, which surged another 11% or 32.7p to 336.1p following last week’s encouraging trading update.

The FTSE 250 index improved 0.8% or 140.51 points to 17,173.33, while the FTSE 100 index lifted 0.4% or 26.07 points to 6884.64 in a calmer session for investors.

Vodafone, whose shares are near their low point for the year, improved half a penny to 100p as it announced a joint venture with Altice for the roll-out of fibre-to-the-home broadband connecting up to seven million premises in Germany.

Elsewhere, Smiths News rose 1.5p to 33p after it renewed contracts covering 50% of the UK magazine market, including the publications Radio Times and Take A Break.

The new long-term distribution tie-ups with Frontline and Seymour are worth £180 million a year at current market rates.

RM shares lost a quarter of their value as the education resources provider said that operating profit will be significantly lower than forecast due to ongoing challenges around the roll-out of a new IT platform. RM shares fell 7.2p to 20p.

FTSE 100 biggest movers

Monday 17 October 2022 10:03 , Simon Hunt

Two hours into this morning’s trading session and ahead of a key speech by the new chancellor Jeremy Hunt, here’s a look at some of the price action on the FTSE 100.

HL boss Hill to stand down

Monday 17 October 2022 09:58 , Simon English

CHRIS Hill today said he would quit asset manager Hargreaves Lansdown, a move that comes amid wider turmoil in the sector.

His arch rival Andy Bell is stepping down from the board of the AJ Bellbroker he founded – HL’s most direct competitor.

Abrdn, the wealth manager that lately bought interactive investor, is under pressure due to the cost of that deal and bullying allegations against CEO Stephen Bird

Today Hill said he will retire after six years, during which time he has been paid towards £10 million. He still holds around 70,000 shares and another 70,000 share options.

HL shares today fell 48p to 764p on news of his departure.

Hargreaves is without doubt a UK success story, founded by Peter Hargreaves and Stephen Lansdown from one room in Bristol in the 1980s.

Hargreaves is a Brexit supporter and outspoken Tory. Lansdown is the lower key owner of Bristol City football club.

Audioboom shares up as monthly podcast downloads pass 100 million

Monday 17 October 2022 09:27 , Michael Hunter

Audioboom, the podcast publisher, revealed the extent to which it was living up to its name today, with monthly downloads in the third quarter rising above 100 million.

The distributor of a range of hits -- including Criminal Makeup, where host Danielle Kirsty outlines true crime stories while also applying her cosmetics – reported total revenue in the nine months to the end of September of just over $57 million, up almost a half on the same period a year ago.

It signed new “tier one partnerships” with big-name podcast brands, including Lovers and Friends with Shan Boodram, which features advice on sex and intimacy. Straight Up with Stassi, the US reality TV star, also joined Audioboom with her look at “the highs and lows of life through the lens of strong-minded women.”

There were some signs of the impact of economic turbulence on the AIM-listed company. Revenue in the third quarter alone slipped by $0.7 million, with the low point coming in July. Audioboom said August and September picked up, and forecast “further improvements” throughout the fourth quarter.

The Bermondsey-based company said revenue at its Showcase ad marketplace was now contributing 14% to group revenue, up from 9% in the same period a year ago.

Its Shares rose 10p to 480p, a rise of 2.2%.

Bond market steadies, banks lift FTSE 100

Monday 17 October 2022 08:28 , Graeme Evans

The chancellor’s plans for an emergency fiscal statement later today appear to have calmed markets in the first session since the Bank of England ended its gilt-buying scheme.

The yield on 10-year government bonds had been above 4.3% on Friday but came back down towards 4.1% in early trading today.

Sterling was higher at just below $1.13, albeit in a weaker session generally for the US dollar.

The FTSE 100 index was 40.66 points stronger at 6899.45, with banks, housebuilders and utilities among stocks higher on the back of today’s developments.

The UK-focused FTSE 250 index rose 0.7% or 115.23 points to 17,148.05, led by a jump of 7% for ITV shares amid reports that the broadcaster is considering options for its production division.

Hoxton brand to open first hotel in Ireland

Monday 17 October 2022 08:05 , Rhiannon Curry

Trendy hotel chain The Hoxton is to make its debut in Ireland as part of a move to open seven new hotels across Europe by early 2024.

The Central Hotel in Dublin is being redeveloped as a 129-room Hoxton by owners Deutsche Finance International and BCP Capital. Ennismore, the owner of the Hoxton concept, has signed a long-term operating contract.

Further openings in the pipeline ahead of Dublin include Brussels, Edinburgh, Berlin and Vienna, plus a second property in Amsterdam and a fourth in London, in Shepherd’s Bush.

The first Hoxton, in Shoreditch, opened in 2006.

Hargreaves Lansdown CEO Chris Hill to leave the FTSE 100 fund manager

Monday 17 October 2022 07:57 , Michael Hunter

Hargreaves Lansdown’s chief executive, Chris Hill, is leaving the FTSE 100 fund manager after six years in charge.

The Bristol-based company, which annnounced Hill’s retirement this morning, does not have a replacement lined up and said he will remain in the role until a successor is appointed and to allow for a handover “up to November 2023”.

Hill said he set up a new strategy for the business, adding; “Having put in place strong foundations that are already delivering results, including an exceptional leadership team, it will be time after a thoughtful transition to hand over to my successor to take the company through the next phase of embedding this strategy.”

Hargreaves Lansdown is facing a multi-million pound lawsuit over the collapse of Neil Woodford’s equity income fund, which investors could access via its investment platform. Woodford’s fund, once worth around £10 billion, collapsed after a range of badly performing investments and amid criticism that it held too many assets that were difficult for it to sell when it needed to raise liquid capital.

In a separte trading update today, HL reported net new business of £0.7 billion for the first quarter of its financial year, ending on September 30. Net new client growth reached 17,000, taking its number of active clients to around 1.7 million.

Made moves forward with buyout bids

Monday 17 October 2022 07:51 , Simon Hunt

Embattled online furniture retailer Made has received a “number” of unnamed approaches to acquire the business that put itself for sale last month after running into liquidity problems.

Made said it had received a number of “non-binding indicative proposals” for the company and has now “invited a select number of parties” to progress towards firm offers by the end of October, following a due diligence process.

“The proposals provide a range of different transaction structures, including possible offers for the issued and to be issued share capital of the company,” said Made.

“Current discussions may be altered or terminated at any time and, accordingly, there can be no certainty that an offer will be made, nor as to what the terms of any offer may be,” the retailer added.

Nightmare for Eve Sleep as mattress firm enters administration

Monday 17 October 2022 07:48 , Simon Hunt

Beleaguered mattess company Eve Sleep has become one of the first victims of a looming recession as the firm said it was entering administration. It comes after sales at the company tanked 19% in the first half of the year.

Cheryl Calverley, CEO of Eve Sleep, said:"It is heartbreaking to have to acknowledge that the best way to preserve value for creditors, those partners and suppliers that have helped us on this journey, is to now terminate the formal sale process and appoint administrators.

“Having seen the year start so brightly, with the efforts of the team over the past three years in rebuilding eve into a business fit for profitable growth coming to fruition, the frustration at the unprecedented downturn in the market over February and March was felt all the more keenly.

“Despite monumental efforts to restructure the business and reshape the cost base, the scale of eve was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months, and allow it to continue as an independent business.”

Focus on Hunt statement, FTSE 100 steady

Monday 17 October 2022 07:32 , Graeme Evans

The 1p cut in the base rate of income tax is one of the mini-budget measures set to be ditched when Jeremy Hunt makes his statement to the Commons later.

A focus on fiscal discipline will be key to restoring confidence in markets, particularly after the gilts sell-off continued on Friday following Liz Truss’s press conference.

Susannah Streeter, senior markets analyst at Hargreaves Lansdown, said: “Trussenomics may have been ripped up and fed to the shredder but the author of the big gamble remains in power, and has the final say on the direction of travel.

“Investors are craving more stability but given the flip flopping we’ve had so far in her super-short tenure, economic policy uncertainty remains and that’s likely to be the key driver in the bond markets and on foreign exchange desks.”

As well as Hunt’s Commons statement, today’s session will be the first since the start of mini-budget volatility without the bond buying support of the Bank of England.

Other key events this week include the release of UK inflation figures, with Wednesday’s headline CPI reading forecast to return to 10%.

The US earnings season is also due to pick up speed this week, with highlights including the figures from Tesla and Netflix. Ahead of today’s opening, CMC Markets expects the FTSE 100 index to edge five points lower to 6853.

Frasers takes stake in MySale above 50%

Monday 17 October 2022 07:27 , Simon Hunt

Plans by Mike Ashley’s Frasers Group to take over e-commerce business MySale got a step closer today after the firm said its shareholding in the business had exceeded 50%.

In a statement the firm said: “Frasers will own or have received valid acceptances in respect of a total of 580,104,135 MySale Shares, representing approximately 55.78 percent of MySale's issued share capital.

“Frasers intends to continue to purchase additional MySale Shares by means of market or other purchases.”