Barclays Says Credit Liquidity Premium Gone as E-Trading Thrives
The so-called illiquidity premium on such deals dropped to nearly zero in July, from 11 basis points between 2018 and 2024 and 35 basis points between 2011 and 2017, Barclays analysts including Zornitsa Todorova and Andrea Diaz Lafuente wrote in a note this week. That excludes periods of heightened volatility, such as the Covid-19 pandemic.
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13 minutes ago
- Yahoo
Train operator bucks trend by introducing first-class travel
A train operator is to introduce first-class sections for passengers willing to pay more to travel, bucking the trend for making trains standard class only. Chiltern Railways announced trains on its route between London and the West Midlands will have first-class carriages from next year. It said they will feature 'more spacious seats and improved connectivity', but will not include catering. Chiltern Railways currently has no first-class seating on its trains after abolishing the option more than a decade ago. It also stopped having a designated business zone – for which users were charged an on-board upgrade – in March 2020 because of the coronavirus pandemic. Several train operators in Britain have scrapped first-class travel in recent years because of a lack of demand. These include London Northwestern Railway (in May 2023), Southeastern (in December 2022) and Stansted Express (in January 2020). Others have made the switch for certain routes, such as Greater Anglia, Thameslink and Great Western Railway. First-class tickets can cost several times the amount of standard-class fares. Some long-distance operators such as Avanti West Coast and LNER provide more space, hot food and alcoholic drinks to passengers who pay the extra money. Rail historian and broadcaster Christian Wolmar said he is 'very surprised' at the announcement by Chiltern Railways as passengers wanting a premium service are 'probably in a hurry' so travel on Avanti West Coast services between London and Birmingham, which are generally more expensive but quicker. He told the PA news agency that for suburban services, premium travel is 'an outdated concept from the days of bowler-hatted gentlemen in their first-class compartment while their secretaries sat in second'. He went on: 'That era has gone. I think for those sort of services, there are very few people who would really want to pay for a premium.' Chiltern Railways is replacing its oldest carriages – Mark 3s which date back to the 1970s – with 13 Mark 5A trains from spring next year. The trains – previously operated by TransPennine Express – are already configured with first-class sections, and it would have cost millions of pounds to convert them all to standard class. Chiltern Railways said it will have more standard-class seats than today once the introduction of the new fleet is completed. Features for passengers include plug sockets and USB ports at every seat, enhanced wi-fi and digital information screens. The trains will enable additional services to be added to timetables from December 2026. Richard Allan, managing director of Chiltern Railways, said: 'We are thrilled for our customers that we will be able to replace our oldest trains, which are nearly 50-years-old, with their modern equivalent that are just six-years-old and provide significant improvement to their on-board experience. 'Chiltern will be renting more trains than it has today, which means we can operate additional services from the end of 2026 to help meet rising demand. 'The trains will be formed of modern carriages hauled by locomotives fuelled by recycled vegetable oil and fitted with the latest stop-start engine technology.' The announcement forms part of the operator's ambition to modernise and decarbonise its trains by 2030. This includes replacing its diesel trains with battery-electric trains. Rail minister Lord Hendy said: 'This Government is putting passengers back at the heart of the 21st-century railway by investing to make journeys easier, greener and more comfortable. 'We are continuing to support Chiltern as they develop a plan to introduce additional services into their timetable, giving people more opportunities to work, live and socialise.' The Department for Transport has not announced when Chiltern Railways will be nationalised as part of its strategy to bring all train operators under public control as existing contract expire or reach a break point. The operator's contract runs until December 2027.
Yahoo
13 minutes ago
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UK retailers pivot to new markets as 76% exporters dodge US tariff risks
The study, titled 'Rethinking Reach: How UK Retailers Are Turning Trade Pressure into Global Advantage,' indicates that larger UK retailers are overhauling their international growth strategies in response to protectionist trade policies that disrupt longstanding export patterns. Additionally, 71% of small UK retailers acknowledge a lack of preparedness for potential trade disruptions with the US. A looming challenge for UK exporters is the US's planned baseline tariff increase to 10% in 2025, which would raise the average duties on UK non-food exports from 2.3% to 17.2%. This change is compelling retailers to reassess the feasibility of trading with the US, especially as more than half would find it commercially unviable if tariffs were to exceed 22%. 'UK retailers are undergoing a seismic shift in their export strategies. Retailers can no longer be overly reliant on a single trade corridor and are pivoting to new regions, including the Middle East and Asia-Pacific, where we are seeing exponential growth,' ESW Northern Europe VP Jon Sheard said. The report states that the Middle East and Asia-Pacific regions are gaining attention as key areas for growth amidst the fluctuating tariff landscape. It highlights a surge in exports to the Middle East and North Africa by 34% from 2021 to 2024, with the UAE emerging as the fastest-growing UK export market outside the EU. Additionally, non-EU Western Europe and Asia-Pacific have seen increases of 15% and 6%, respectively, according to the study. The recent conclusion of trade deal talks between the UK and India represents another opportunity for diversification. The free trade agreement aims to eliminate tariffs and facilitate market access, potentially unlocking new export opportunities for sectors like fashion and textiles. Retail Economics CEO Richard Lim said: 'Tariff volatility is reshaping the global retail landscape. Retailers can no longer rely solely on traditional export markets like the US. Instead, they're evaluating new trade routes and pivoting toward high-growth regions to diversify risk and capture new demand. Now is the time for exporters to plan and act. Future success will depend on the ability to adapt, localise, and seize emerging trade opportunities.' Further findings from the report include: A strategic imperative among 77% of retailers is global brand-building. Two-thirds of retailers are prepared to compromise profit margins for export growth. Key barriers to international expansion are logistics costs, operational complexity, and regulatory uncertainty. The 'Made in UK' label continues to command a premium perception overseas due to high safety and regulatory standards. Retailers are increasingly partnering with firms that provide comprehensive market entry services to mitigate challenges associated with entering new markets. Last month, UK fashion companies such as M&S and Primark praised a government initiative that reduces tariffs on certain garment-producing nations, simplifying trade with the UK. "UK retailers pivot to new markets as 76% exporters dodge US tariff risks" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
13 minutes ago
- Yahoo
UK car market down 5% in July
The UK new car market was down in July by 5.0% on last year, to 140,154 units, according to figures published by the Society of Motor Manufacturers and Traders (SMMT). The performance was the weakest for the month since 2022 and some 10.8% lower than in pre-pandemic 2019, demonstrating the market's volatility and a weak economic backdrop. Switch Auto Insurance and Save Today! The Insurance Savings You Expect Affordable Auto Insurance, Customized for You Great Rates and Award-Winning Service Demand from private and fleet buyers fell 3.2% and 6.5% to 51,646 and 85,594 units respectively, while registrations in the much smaller business sector climbed 10.4% to 2,914 units. Declines were seen across most segments, with only Dual Purpose, Mini and Luxury Saloon models recording growth. GlobalData expects the UK car market to register around 1.96m units in 2025. GlobalData says the forecast is subject to risks. GlobalData analyst Jonathon Poskitt says the UK car market outlook remains challenging due to several headwinds. 'The mood is somewhat cautious on the outlook,' he says. 'There is a tightening of fiscal policy in prospect as well as the lagged effects of previous interest rate hikes, and the adverse impact of recent US tariffs – albeit mitigated by the US-UK trade deal.' 'One positive development is the rise in sales of electrified vehicles and pending government grants for BEVs as well as generally still heavy manufacturer incentives aimed at BEVs,' Poskitt points out. Bucking the wider market performance, registrations of plug-in hybrid electric vehicles (PHEVs) rose 33.0% and battery electric vehicles (BEVs) 9.1% in July, although the latter is modest in comparison with the 34.6% increase recorded for the first half of 2025. July was the second weakest month of BEV growth this year, after April's tax changes distorted the market in that month. The newly announced Electric Car Grant (ECG) provides a much-needed fiscal incentive for BEV uptake, but full model eligibility has yet to be confirmed, causing some buyers to hold off pending confirmation of which vehicles will qualify for a discount of up to £3,750. BEV market share reached 21.3%, up from 18.5% in the same month last year, but remains short of the 28% required by the ZEV Mandate, demonstrating the importance of accelerating uptake over the remainder of the year. Hybrid electric vehicle (HEV) transactions declined 10.0% to 18,551 units while combined petrol and diesel deliveries fell -14.0% to 74,289 units, but still accounted for more than half (53.0%) of July's market. Year-to-date, the overall new car market remains up 2.4% at 1.18m units, including more than a quarter of a million BEVs. The SMMT said July's decline is expected to be temporary, with the latest market outlook – undertaken before eligible ECG models were confirmed. Mike Hawes, SMMT Chief Executive, said: 'July's dip shows yet again the new car market's sensitivity to external factors, and the pressing need for consumer certainty. Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.' "UK car market down 5% in July" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
