FTSE 100 Live Updates: The FTSE 100 saw mixed movements as four major banks were fined over £100 million for sharing sensitive market information. Citi, HSBC, Morgan Stanley, and Royal Bank of Canada faced penalties for their actions between 2009 and 2013. Meanwhile, Deutsche Bank escaped fines by reporting the misconduct. This news comes as retail sales in the UK showed a surprising rebound, growing by 1.7% in January, driven by strong performances in supermarkets like Tesco and Sainsbury’s.
Banking Sector Shines Amid Fine
Despite the fines, banking stocks performed well. Standard Chartered reported an 18% rise in annual profits, reaching $6 billion, and announced a $1.5 billion share buyback. Shares of NatWest and Barclays also climbed, reflecting a strong reporting season for UK banks. Analysts noted that the sector is generating significant cash returns for shareholders, with aggregate pre-tax profits hitting £50.3 billion in 2024.
Retail Sector Sees Recovery
The retail sector experienced a boost as official figures revealed a 1.7% increase in sales volumes for January. Supermarkets led the charge, with Tesco and Sainsbury’s shares rising. Marks & Spencer and JD Sports also saw gains. However, economists caution that this recovery may not last, given ongoing cost-of-living pressures and weak consumer confidence.
Economic Challenges Persist
The UK economy faces challenges, with private sector employment falling at the fastest rate since 2020. Wage pressures and weak demand are contributing to a stagflationary environment, complicating the Bank of England’s decisions. Meanwhile, public finances showed a £15.4 billion surplus in January, but this fell short of forecasts, highlighting fiscal pressures.
Global Growth Concerns
Standard Chartered warned of a slight slowdown in global growth in 2025, citing high interest rates and protectionist trade policies. However, the bank remains optimistic about growth in Asia, Africa, and the Middle East, expecting these regions to outperform global averages.
