
EU, US Trade Deal Is ‘Lesser Evil,' a Top Spanish Banker Says
The deal 'is what it is,' CaixaBank SA CEO Gonzalo Gortazar said Wednesday in a Bloomberg TV interview with Guy Johnson, Anna Edwards and Kriti Gupta. 'The lesson here is strategic autonomy: we need to be in a position where in three, five, 10 years down the road we're in a position to strike better deals with the US than the current one.'
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Reddit (RDDT) Climbs 26% on Strong Earnings
We recently published Reddit, Inc. (NYSE:RDDT) is one of the companies that stood stronger last week. Reddit saw its share prices surge by 26.04 percent week-on-week as investors took heart from a strong earnings performance in the second quarter of the year. In its updated report, Reddit, Inc. (NYSE:RDDT) said it swung to a net income of $89 million from a $10 million net loss in the same period last year, while revenues expanded by 78 percent to $500 million from $281 million year-on-year. In terms of market share, the US contributed $409 million, marking a 79-percent increase year-on-year, while the international market amounted to $91 million, or a 71-percent jump from a year earlier. For the third quarter of the year, Reddit, Inc. (NYSE:RDDT) is targeting to hit $535 million to $545 million in revenues, or a 53 percent to 56 percent surge from the $348.4 million actual revenues in the third quarter of 2024. 'Reddit is built for this moment. In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are,' Reddit, Inc. (NYSE:RDDT)Co-Founder and CEO Steve Huffman said. Copyright: rvlsoft / 123RF Stock Photo 'We're focused on growing globally, scaling sustainably, and making Reddit the most trusted place on the internet.' While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
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37 minutes ago
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High street banks lost £100bn in customer savings to rivals since 2019
High street lenders have lost the equivalent of £100 billion in customer savings to online banks and building societies as they come under pressure to adapt amid a major shift in the sector, according to a report. KPMG's latest State of the Banks report found that traditional banking groups saw their market share in deposits drop sharply from 84% in 2019 to 80% in 2024. It came as competitors – such as new challenger banks, specialist lenders and building societies – lured customers away by paying higher savings rates. The UK banking sector also suffered a £3.7 billion combined drop in total pre-tax profits last year, marking the first major downturn since the rebound seen in the wake of the pandemic, according to KPMG. It warned that increasing competition, rising costs and a wave of consolidation will change the shape of the sector in the years ahead. Peter Westlake, partner in KPMG UK's banking strategy team, said: 'The post-Covid profit boom is over. 'Banks are facing a lower-growth, higher-cost environment that demands transformation at pace. 'While we can expect profitability to broadly remain sound this year, the entire sector needs to show how they are preparing for challenges ahead.' Bank costs increased by 6% in 2024, which together with falling productivity among workers, is set to put bank profits under pressure, according to the report. It forecasts that the sector's average return on equity, which is a key performance measure for banks, could drop by more than a third from a peak of 13% in 2023 to 8% by 2027 – the equivalent of an £11 billion drop in annual profits. KPMG's experts urged banks to overhaul their business models and embrace artificial intelligence (AI) to tackle the challenges. 'The winners will be those that move beyond tactical cost-cutting and proactively address oncoming market headwinds through business model transformation,' said Mr Westlake. Any move to scrap so-called ring-fencing in the UK sector, which requires banks to separate their retail activities from investment banking, would also spur on further change, KPMG said. Chancellor Rachel Reeves announced plans to reform the ring-fencing regime last month as part of wider measures to loosen regulation and boost growth. Peter Rothwell, head of banking at KPMG UK, said: 'Evolving regulation, particularly the reform of ring-fencing, is set to reshape the competitive landscape. 'Raising thresholds could favour recent entrants, particularly well-capitalised US players, accelerating their push into the UK retail market and intensifying competition.'
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Motor finance victims urged to complain as compensation could hit £18bn
Millions of drivers could be owed a share of up to £18bn after the Financial Conduct Authority (FCA) announced it will consult on an industry-wide compensation scheme. Motorists could receive a pay-out after it emerged many motor finance firms were not complying with rules or the law by not providing customers with relevant information about commission paid by lenders to the car dealers who sold the loans, the FCA said. The authority estimates that most individuals will probably receive less than £950 in compensation. The final total cost of any compensation scheme is estimated to be between £9 billion and £18 billion, the FCA added. Consumer champion Martin Lewis said in a video posted to X that millions of people are likely to be due a share of up to £18 billion. He told Sky News the consultation is 'likely to mean 40% of people who got a car finance deal between 2007 and 2021 will be due some form of redress, likely to be hundreds not thousands of pounds'. The consultation will be launched by early October. If the compensation scheme goes ahead, the first payments should be made in 2026. It comes after Friday's ruling by the Supreme Court on cases in which the FCA had intervened. While some motor finance customers will not get compensation because in many cases commission payments were legal, the court ruled that in certain circumstances the failure to properly disclose commission arrangements could be unfair and therefore unlawful, the FCA added. People who have already complained do not need to do anything, the FCA said. Consumers who are concerned that they were not told about commission and think they may have paid too much to their motor finance lender have been urged to complain now. Consumers do not need to use a claims management company or law firm and doing so could cost them around 30% of any compensation paid, it added. To make an initial complaint, the FCA says people should get in touch with their lender or broker, then the provider should send an acknowledgement within eight weeks. Under the FCA's current rules, it will not have to send a final response until after December 4 2025. But as the FCA is consulting on a compensation scheme, the deadline may be extended. If customers are unhappy with their provider's response, they can then complain to the Financial Ombudsman Service, the FCA added. The authority will propose rules on how lenders should 'consistently, efficiently and fairly' decide whether someone is owed compensation and how much. It will monitor if firms are following the rules and act if they are not. Nikhil Rathi, chief executive of the FCA, said: 'It is clear that some firms have broken the law and our rules. It's fair for their customers to be compensated. 'We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal. 'Our aim is a compensation scheme that's fair and easy to participate in, so there's no need to use a claims management company or law firm. If you do, it will cost you a significant chunk of any money you get. 'It will take time to establish a scheme but we hope to start getting people any money they are owed next year.'