Business live: Barclays fined £42m for money-laundering failures
Rob Wood, Pantheon Macroeconomics: 'Where does this leave the MPC? Inflation 150bp above target and likely to stay there for the rest of the year is hardly a green light for another rate cut. Traditionally, the MPC would look through headline inflation overshoots driven by government policy as well as energy and food prices, but we doubt they have that luxury now.'
Matt Swannell, EY Item Club: 'There doesn't seem to be enough in these inflation numbers to derail an interest rate cut in August and we expect the MPC's established cut-hold tempo to continue at subsequent meetings.'
The financial watchdog has fined banking giant Barclays £42 million over its 'poor handling' of financial crime risks.
The Financial Conduct Authority said the fines related to separate failings linked to the WealthTek and Stunt & Co businesses.
It fined Barclays Bank £39.3 million for 'failing to adequately manage money laundering risks' related to providing banking services to Stunt & Co, the firm run by the socialite James Stunt.
Meanwhile, Barclays Bank UK has been fined £3.1 million after it failed to check it had enough information to understand the money laundering risk before opening a client money account for the now-collapsed wealth management firm WealthTek, the FCA said.
Gilt yields have edged higher across the board after the surprise rise in inflation to 3.6 per cent in June dampened expectations of a rate cut next month.
The yield on the benchmark 10-year UK government bond rose 2 basis points ot 4.65 per cent.
The FTSE 100 has opened 4.5 point higher at 8,942,87, with Rio Tinto the biggest riser after its second quarter production update. The index remain below is high of 8,998.06 hit earlier this week.
The pound has strengthened slightly against the dollar to $1.3401.
Rio Tinto: The FTSE 100 miner reported its strongest quarter of iron production since 2018, a day after promoting Simon Trott, head of its iron ore operations, to chief executive. Production at its Pilbara mines in western Australia rose 5 per cent to 83.7 million tonnes in the second quarter, although shipments fell short of analysts' expectations, disrupted by extreme weather.
In other corporate news:
AstraZeneca: The pharmaceutical company said anselamimab, an experimental drug, did not meet the main goal of a late-stage study for the treatment of AL amyloidosis, a rare condition that causes a buildup of protein deposits in the body.
Antofagasta: The Chilean copper miner said second-quarter production rose 3.5 per cent to almost 315,000 tonnes. Full-year guidance was reiterated.
Workspace: The flexible office space provider said occupancy had fallen by 0.3 per cent in the second quarter to 82.2 per cent, with more 'large vacations' to come during the current three-month trading period.
The rate of UK inflation rose to a 16-month high of 3.6 per cent in June, official figures showed.
The data from the Office for National Statistics is above economists' expectations for the rate to remain unchanged, and makes an interest rate cut in August less likely.
Richard Heys, acting chief economist at the ONS, said: 'Inflation ticked up in June, driven mainly by motor fuel prices which fell only sligthly, compared with a much larger decrease at this time last year.
'Food price inflation has increased for the third consecutive month to its highest annual rates since February of last year.'
The Bank of England expects inflation, which has accelerated since April due to higher energy prices, to peak at 3.7 per cent before falling back to its 2 per cent target.
The monetary policy committee has cut interest rates twice this year, from 4.75 per cent to 4.25 per cent. Markets had been betting on another quarter-point cut next month.
• Read in full: UK inflation rises to 3.6 per cent in blow for Reeves
Rachel Reeves has accused over-cautious regulators of acting like 'a boot on the neck of businesses' as she announced plans to get ordinary British savers investing in shares.
Addressing 350 City bosses at the annual Mansion House dinner, the chancellor set out a string of reforms designed to allow financial firms to grow faster and urged regulators 'not to bend to the temptation of excessive caution'.
• Read in full: Reeves tells regulators to loosen up to boost share investment
President Trump has placed a 19 per cent tax on goods imported into the United States from Indonesia under a new agreement with the country and said more deals were in the works.
The pact with a minor trading partner is among the few ahead of an August 1 deadline for tariffs on most US imports, despite his team touting an effort to bring home '90 deals in 90 days'.
So far, framework agreements have been reached with the UK and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between Washington and Beijing.
Trump said talks with India were moving in a similar direction. Meanwhile, while the European Union is preparing retaliatory measures should talks between Washington and its top trading partner fail.
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In its post-war heyday, the town of Morecambe was one of the UK's foremost seaside holiday destinations, with a thriving local economy and prestigious the decline of the domestic tourism industry which underpinned Morecambe's boon, its 105-year-old football club has filled the gap - providing jobs, powering local businesses, and offering a sense of community, identity, and now, Morecambe FC faces the imminent prospect of shutting down due to a deepening financial crisis, with owner Jason Whittingham's failure to sell the club leading to suspension from the National proud local people, the impact is enormous."It's absolutely horrible", says Alison Williamson, a Morecambe resident who began supporting the club in 1974. "The football club gives so much to the town. It's just so sad that Whittingham is down in Essex and allowed to take it all away from us."It's kind of a grieving process. It's like losing a member of your family that has always been there. Even if you don't see them all the time, when they're not there anymore, you suffer and you feel the loss."The club's players were sent home a week ago and are unable to train because of a lack of insurance cover. The academy has now also stopped functioning,For some, the slow, painful deterioration of their football club threatens the cohesion of the community and mimics the previous era's erosion of the local economy. "Morecambe used to be fantastic in its heyday," says Les Dewhirst, the club's kit man for the past 30 years. "It had everything from small zoos to fairgrounds to theatres and piers. We've not got much of that now, but it's still a cracking place and football is such a big part of it."I met my wife at the football. We were second-timers and our kids have grown up coming to this ground together. Strangers stop me in the street and say 'hiya Les' and it feels good."I don't know all the names of the people who come here, but I know all the faces. We all come here for the same reason - because we care."That level of care means supporters, led by fans group The Shrimps' Trust, have been protesting against Whittingham's ownership of the club and demanding he sell up for deals have been agreed in the past but nothing has come to fruition and fans face the prospect of having no club to support in the upcoming season."This place is half of my life", says Kate Barker, a fan and former chief steward for 20 years who was subsequently made honorary life vice-president. "All my good friends are here. It's a cliche, but we are a family and we look after each other."We always look forward to seeing each other on a Tuesday and a Saturday, and going to see a match. We might win, lose, or draw - the result doesn't really matter. We've never let football get in the way of a good day out." "We'll still gather together and talk about the old times, what we've done and where we've been. But we should still be able to do it here, every week," adds Barker."Inside I'm being absolutely torn apart."Where once on the town's seafront there were multiple fairgrounds, theatres, piers and miniature zoos, there are now a smattering of bars and restaurants, many of which are funded by matchday income and travelling away club's peril means local businesses are now at risk."The winter months are the hardest here, because it's the seaside," says Chris Donaldson, owner the The Royal Hotel on the seafront. "The football season sees us through that."I've got 19 bedrooms here and away fans are coming from all over fully booking them weeks in advance. The whole town can be full."It'll cost us tens of thousands, easily. It's crazy what it'll do to the town to lose that kind of money. Everyone will feel the effect of it."For staff at the fans' matchday pub, the difference in demeanour is already stark."We get around 400, 500 people on a matchday," says Michael Woolworth, manager of the Hurley Flyer opposite the stadium. "It feels like everyone in Morecambe is in here."It's a ritual every weekend. In here we see that football really brings people together. "But in the last few months we've seen the happiness taken away from them. We have regulars who have come in visibly upset."Morecambe FC has been one of the area's biggest employers in recent times. But the club's financial issues mean that salaries paid to staff and players have been delayed or not paid at all in some months. Dewhirst was last paid in May."I'm eating into my savings now," he says. "Some people aren't lucky enough to have savings - some are going to food banks because they can't afford to buy their shopping."It's been hard watching players leave. There was another one gone yesterday. I've known lots of them for years."I feel broken. Numbness has set in." The club offers far more than football to local residents. Its facilities host a variety of events, fun days and fundraisers for the community and causes close to people's hearts."The club does major work in the community, including sessions here for the elderly people and sessions in care homes," says former co-chairman Rod Taylor, who has removed from the board earlier this summer in a video call hastily arranged by Whittingham."We've got a pre- and post-cancer group that meet regularly, we go into schools to deliver sessions. You can't put a price on that. A high percentage of the population of this town is touched by more than football in some way."That idea of connection across the community, and across generations, is something which typifies the essence of Morecambe's supporter base."Football is that release from normality," Taylor says. "It's a generational thing. My granddad took me to our old stadium Christie Park when I was about five or six years of age. It stays with you. It's ingrained. It's in your DNA."I feel Whittingham probably has to raise more money to settle some of his some of his personal debts. I think he's trying to squeeze more money."The BBC has repeatedly attempted to contact Whittingham, but received no response. Chair of The Shrimps' Trust, Pat Stoyles, has dedicated swathes of his spare time to trying to protect the club's status and long-term future in recent years."The lack of communication from Jason Whittingham has been the biggest problem," he says. "The turmoil has been going on for weeks and weeks on end."The start of the EFL season last weekend was difficult. Normally we'd be glued to that sort of thing, but seeing live football again shows to people what we're going to be missing."The social part of football is the biggest part. What goes on the pitch - that's fine. It's about the people you travel with, you drink with, you stand with, the community that you feel apart of. For a lot of people, losing that is going to have a big impact on their whole wellbeing, their mental health."Some people are already asking if, should the worst come to the worst, we can still go to places together."The National League will meet again on 20 August and, unless convinced Morecambe have the financial means to complete the season, will formally expel them from the fans, staff, and players wait anxiously to see if Whittingham will finally sell the club before it is too late.
