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Sterling slips with economic data, tariff uncertainty in focus

Sterling slips with economic data, tariff uncertainty in focus

Reuters7 hours ago
July 7 (Reuters) - Sterling slipped on Monday in a lacklustre start to a week packed with economic data reports that could offer clues to the interest rate outlook, while globally investors watched the latest deadline on U.S. tariffs.
Sterling slipped 0.3% and last fetched $1.3601 against the U.S. dollar , while the pound was broadly unchanged against the euro at 86.23 pence.
Last week saw investors in UK assets rattled by ambiguities around the health of public finances, as a number of U-turns by the governing Labour Party over welfare reforms sparked speculation around the future of finance minister Rachel Reeves.
Traders are now shifting their focus to a set of data this week, with Monday bringing a report that showed British house prices stagnated month-on-month during June as expected, after an increase in tax on property transactions took effect in April.
However, "the post April dip is likely to fizzle out", said Victoria Scholar, head of investment at interactive investor. "Plus, mortgage lending is improving, thanks to four rate cuts from the Bank of England over the last year and two more priced in this year."
Later in the week, traders will scrutinize a report on gross domestic product that could offer clarity on the health of the UK economy and determine the outlook on interest rates.
Bank of England policymaker Alan Taylor said late on Friday that he thought it would be better to cut interest rates now rather than wait and risk needing to cut them in a hurry.
Taylor expects the Bank Rate to fall to "around 3%" by the end of next year. Traders largely anticipate the next 25 basis points interest rate cut by the central bank will be in September, according to data compiled by LSEG.
Meanwhile, investors globally were awaiting a Wednesday deadline ahead of which economies scrambled to strike trade deals with the U.S. to avoid sharply higher duties on their exports to the United States.
Britain was the first to secure an agreement with the U.S. in May and has avoided the additional tariffs on steel and aluminium. Negotiations are ongoing to remove existing 25% duties on industrial metals altogether.
The pound has appreciated about 2% since the deal with the U.S. and is trading close to its highest level since late 2021, also benefiting from a broader dollar weakness.
Separately, a Deloitte survey showed British business executives now see greater opportunities closer to home, while the attractiveness of the United States as an investment destination dwindled.
In other news, Reeves is expected to announce a 28.6 million pound ($39 million) investment by the National Wealth Fund in a carbon capture project that could create jobs in central and northern England, as the government strives to shore up public support.
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Warning for 31million bank customers losing more than £350 a year for leaving cash in zombie accounts
Warning for 31million bank customers losing more than £350 a year for leaving cash in zombie accounts

The Sun

time30 minutes ago

  • The Sun

Warning for 31million bank customers losing more than £350 a year for leaving cash in zombie accounts

MILLIONS of Brits are losing out on hundreds of pounds each by keeping their savings in low-interest "zombie" accounts. More than 31million bank customers have £186billion in savings accounts earning just 1.5% interest, according to Paragon Bank's app Spring. 1 These accounts generate £2.3billion a year in interest, but savers could earn over three times more by switching to accounts offering up to 5% interest, The Sun can reveal. The average bank customer has around £10,000 in savings, according to Raisin. If that £10,000 is kept in an easy access account earning 1.5% interest, it would generate just £150 in interest each year. But switching to Chase's 5% easy access account would boost that to £500, earning you an extra £350. Experts specifically warn that using savings linked to current accounts often means low rates, restrictions, and losing value to inflation. Derek Sprawling, managing director of Spring, said: "Too many savers are leaving their money with their current account provider's linked savings accounts. "Simply sticking with a savings account offered by their current account provider often means an array of restrictions, such as tiered rates or withdrawal limits, on top of poor rates. "There are other options for savers, it is possible to get a rewarding rate of return without sacrificing access to their money or wading through a host of restrictive terms and conditions." If your savings account pays less than the current inflation rate of 3.4%, it's time to look for a better deal. Plus, the Bank of England is expected to cut its base rate soon, which could make savings rates even lower. The base rate affects how much banks pay savers - when it drops, interest on savings usually goes down too. Financial markets expect the Bank to reduce rates at its next meeting in August, and again to 3.75% before the end of the year. How this affects your savings depends on the type of account you have. Fixed-rate accounts won't change, but easy-access accounts can see their rates drop at any time. What types of savings accounts are available? THERE are four types of savings accounts: fixed, notice, easy access, and regular savers. Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free. But we've rounded up the main types of conventional savings accounts below. FIXED-RATE A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term. This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account. Some providers give the option to withdraw, but it comes with a hefty fee. NOTICE Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash. These accounts don't lock your cash away for as long as a typical fixed bond account. You'll need to give advance notice to your bank - up to 180 days in some cases - before you can make a withdrawal or you'll lose the interest. EASY-ACCESS An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals. These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee. REGULAR SAVER These accounts pay some of the best returns as long as you pay in a set amount each month. You'll usually need to hold a current account with providers to access the best rates. However, if you have a lot of money to save, these accounts often come with monthly deposit limits. To help you get the best returns, we've listed the top savings rates for each account type below. What's on offer? If you're looking for a savings account without withdrawal limitations, then you'll want to opt for an easy-access saver. These do what they say on the tin and usually allow for unlimited cash withdrawals. The best easy access savings account available is from Atom Bank, which pays 5% - and you only need to pay a minimum of £1 to set it up. This means that if you were to save £1,000 in this account, you would earn £50 a year in interest. However, this rate is only for new customers and includes a 2.25% bonus for the first 12 months. Meanwhile, Snoop's easy access saver offers customers 4.6% back on savings worth £1 or more. If you're okay with being less flexible about withdrawals, a top notice account could be a great option. These accounts offer better rates than easy-access accounts but still let you access your money more flexibly than a a fixed-bond. Plum's 95-day notice account offers savers 4.84% back with a minimum £1 deposit, for example. This means that if you were to save £1,000 in this account, you would earn £48.40 a year in interest. Oxbury Bank's 120-day notice account offers 4.6%, requiring a minimum deposit of £1,000. If you want to lock your money away and keep the same savings rate for a set time, a fixed bond is a good choice. The best fixed rate currently offered is GB Bank's one-year fixed bond, which pays 4.58%, requiring a minimum deposit of £1,000. Meanwhile, Marcus by Goldman Sachs's one-year fixed bond offers 4.55% back on a deposit of £1 or more. This means that if you were to save £1,000 in this account, you would earn £45.50 a year in interest. If you want to build a habit of saving a set amount of money each month, a regular savings account could pay you dividends. Principality Building Society's Six Month Regular Saver offers 7.5% interest on savings. It allows customers to save between £1 and £200 a month. Save in the maximum, and you'll earn 25.81 in interest. 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It's always wise to have some money stashed inside an easy-access savings account to ensure you have quick access to cash to deal with any emergencies like a boiler repair, for example. If you're saving for a long-term goal, then consider locking some of your savings inside a fixed bond, as these usually come with the highest savings rates.

UK bosses to be banned from using NDAs to cover up misconduct at work
UK bosses to be banned from using NDAs to cover up misconduct at work

The Guardian

time32 minutes ago

  • The Guardian

UK bosses to be banned from using NDAs to cover up misconduct at work

Bosses in the UK will be banned from using non-disclosure agreements to silence employees who have suffered harassment and discrimination in the workplace as part of the government's overhaul of workers' rights. Ministers will on Monday night table amendments to the government's employment rights bill to prohibit the widespread practice of using legally enforceable NDAs to conceal unacceptable behaviour at work. If passed, the rules would mean any future confidentiality clauses in settlement agreements that sought to prevent a worker speaking about an allegation of harassment – including sexual harassment – or discrimination would be null and void. They would also allow victims to speak freely about their experiences, while any witnesses – including employers – would be able to call out poor conduct and publicly support victims without the threat of being sued. The changes being introduced to the bill, due to return to the Lords next week, would not affect NDAs for legitimate commercial use, such as commercially sensitive information or intellectual property in business transactions. But they would create one of the toughest protection regimes in the world, giving millions of workers, including those in low-paid jobs, more confidence that inappropriate behaviour in the workplace would be dealt with. After years of campaigning by activists, ministers have looked beyond high-profile cases linked to the #MeToo movement to address concerns about workers in regular employment who may not have the means or confidence to pursue their employers through the courts to challenge 'gagging orders'. Announcing the change, Angela Rayner, the deputy prime minister, said: 'Victims and witnesses of harassment and discrimination should never be silenced. As the Guardian has reported on widely, this is not an issue confined to high-profile individuals or the most powerful organisations. 'The use of NDAs to cover up abuse and harassment is growing – and sadly amongst those in low-income or insecure employment across multiple industries and workplaces. 'This cannot go on. That is why we are stamping out this practice and taking action to ban any NDAs used for this purpose. My message is clear: no one should suffer in silence and we will back workers and give survivors the voice that they deserve.' The legislation represents the biggest overhaul of workers' rights in a generation, introducing day one rights, establishing collective bargaining bodies in vital sectors and strengthening family-friendly entitlements, as well as going further on bereavement leave and tackling 'fire-and-rehire'. Over time NDAs have become the default solution for many organisations, corporations and public bodies to settle cases including sexual misconduct, racism, and pregnancy discrimination. Their original purpose was to protect intellectual property or other commercial or sensitive information, but reports have shown they have become commonly used to prevent people speaking out about horrific experiences in the workplace. There have been many high-profile cases of NDAs being used to prevent victims from speaking about crimes, often forcing women and vulnerable individuals to feel stuck in unwanted situations, through fear or desperation. They have proliferated especially in lower-income, insecure employment including sectors such as retail, hospitality and accommodation, with non-disparagement clauses also typically attached. A report by the Chartered Institute of Personnel and Development (CIPD) last year found the use of NDAs was relatively common, with 22% of respondents to a survey of 2,000 employers saying their organisation used them when dealing with allegations of sexual harassment. In contrast, 44% said they did not use NDAs in this way and a further 34% did not know, highlighting that awareness around their use in some organisations may be low. The CIPD also found that most employers would not strongly object to the removal of NDAs in the workplace. Nearly half (48%) of employers would support a ban, with just 18% opposing, while 20% were ambivalent, and a further 14% did not know. Zelda Perkins, a former PA to Harvey Weinstein who spearheads the campaign group Can't Buy My Silence, said of the government's plans: 'This is a huge milestone, for years we've heard empty promises from governments whilst victims have continued to be silenced. 'To see this government accept the need for nationwide legal change shows that they have listened and understood the abuse of power taking place. 'Above all though, this victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn't. Without their courage, none of this would be happening. 'This is not over yet and we will continue to focus closely on this to ensure the regulations are watertight and no one can be forced into silence again. If what is promised at this stage becomes reality, then the UK will be leading the world in protecting not only workers but the integrity of the law.' Louise Haigh, a former cabinet minister, said: 'Victims of harassment and discrimination have been forced to suffer in silence for too long. Today's announcement will mean that bad employers can no longer hide behind legal practices that cover up their wrongdoing and prevent victims from getting justice.' Legislative changes have already been made in Ireland, Canada and the US so that NDAs cannot prohibit disclosure of sexual harassment, discrimination or bullying without it being the expressed wish of the employee. A landmark survey of sexual harassment at work has found that one in four women have suffered work-related sexual assault. Britain's largest trade union, Unite, polled approximately 300,000 female members on whether they had experienced sexual harassment at work, travelling to work or from a colleague in or out of work hours. Of the 6,615 respondents, 25% said they had been sexually assaulted and 43% had been inappropriately touched. More than 3,000 said they had been the recipient of sexually offensive jokes and/or experienced unwanted flirting, gesturing or sexual remarks. And 28% had been shared or shown pornographic images by a manager, colleague or third party, while 8% had been a victim of sexual coercion – when a person pressures, tricks, threatens or manipulates someone into engaging in sexual activity without genuine consent – at work. While the perpetrator in the bulk of these incidents was a member of public in the workplace, such as a patient or a passenger, 3% said they had been sexually assaulted by a manager and 6% by a colleague.

Sporting holding out for €70m up front as Arsenal close in on Viktor Gyökeres
Sporting holding out for €70m up front as Arsenal close in on Viktor Gyökeres

The Guardian

time37 minutes ago

  • The Guardian

Sporting holding out for €70m up front as Arsenal close in on Viktor Gyökeres

Sporting have told Arsenal they want €70m (£60.2m) plus €10m in add-ons for Viktor Gyökeres after rejecting an approach from the London club worth €65m plus €15m. After a stand-off that has lasted weeks and driven Gyökeres to distraction, the clubs are in constructive dialogue and close to bringing the saga to an end. Mikel Arteta has made a new No 9 his priority during a pivotal summer for Arsenal and he has had Gyökeres on his shortlist, together with RB Leipzig's Benjamin Sesko. If the manager has not had the encouragement he might have wanted over Sesko, the picture has been different and more clear-cut on Gyökeres, with Sporting saying they would sell for €80m – less than the value of his €100m buyout clause – and standing by the position. Gyökeres, who has scored prolifically for Sporting since his £20.5m move from Coventry in the summer of 2023, has been clear he wants to sign for Arsenal. The 27-year-old's personal terms have been agreed. They were never likely to be an issue; the obstacle has been an agreement between the clubs. Arteta wants the deal wrapped quickly, ideally before Arsenal depart for their tour of Asia on Saturday week to play Milan, Newcastle and Tottenham. Gyökeres is scheduled to return to pre-season at Sporting on Friday. It has been reported in Portugal that he is unwilling to turn up, such is his determination to force through the move to Arsenal. Sporting's record sale is the deal that took Bruno Fernandes to Manchester United in January 2020; the agreement was €55m plus €25m in add-ons. They have been intent on rivalling that with Gyökeres, who has three years to run on his contract. The Sweden international has been a sensation at Sporting, scoring 97 goals in 102 appearances. He has helped them to back-to-back league titles and, in this past campaign, to the Portuguese Cup. Arsenal have signed the goalkeeper Kepa Arrizabalaga for £5m from Chelsea and the midfielder Martín Zubimendi for £56m from Real Sociedad. They are close to agreeing a deal worth up to £15m for the Brentford midfielder Christian Nørgaard and are weighing up a move for the Chelsea winger Noni Madueke.

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