The Attorney-General and Minister of Justice, Senator the Hon. Kim Wilkerson, JP, today issued AML-ATF Advisory 2/2026 about the risks in a number of jurisdictions arising from inadequate systems and controls to combat money laundering and terrorist financing.
The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (POCA Regulations) require the Bermuda regulated sector and relevant persons to apply enhanced customer due diligence to high-risk countries.
Regulation 11 (1)(aa) of the Proceeds of Crime (Anti-Money Laundering and Anti Terrorist Financing) Regulations 2008, requires that a relevant person must apply on a risk sensitive basis enhanced customer due diligence measures to business relationships with customers in instances where a person or a transaction is from or in a country that has been identified as having a higher risk by the Financial Action Task Force or the Caribbean Financial Action Task Force; and
Regulation 11 (1)(ab) requires a relevant person to apply, on a risk-sensitive basis, enhanced customer due diligence in instances where a person or transaction is from or in a country which represents a higher risk of money laundering, corruption, terrorist financing or being subject to international sanctions.
Please see the attached document for the full Ministerial Advisory.
Bermudian freshman wing Ralph Scott has faced the media in Knoxville for his first formal press conference since joining Tennessee, lifting the lid on his transition to SEC basketball and the demanding regime under head coach Rick Barnes.
After six weeks with the Volunteers program, the 6ft 9in former IMG Academy player reflected on his early adjustments, his physical transformation, and shedding old court habits.
Scott’s introduction to life at the Division I level proved an eye-opener during grueling post-practice sessions.
“My welcome to college moment was definitely some sprints after practice… First time in a while that I’ve thrown up after a practice,” Scott admitted.
Despite the intense conditioning, the Florida-raised prospect—who has already put on over 20lbs—emphasized his rapid development in on-ball defense and shooting accuracy under Barnes’ high-intensity setup.
Operating primarily as a two/three guard, Scott acknowledged that assistant coach Gregg Polinsky and the training staff are pushing him to be far more assertive on the floor.
“I’ve played with a lot of really good players, so I think I’ve just developed that habit,” Scott noted regarding deferring to teammates. “But they’re telling me I’ve got to get rid of it, so I’m going to do what I’m told.”
With his eyes firmly set on realizing his full potential in Knoxville, the versatile wing insists he is ready to embrace whatever role necessary to help the Volunteers compete at the top of the SEC.
Between early June and late July, police recorded eleven burglaries in Bermuda’s eastern parishes, with Hamilton Parish experiencing the highest concentration of incidents, prompting renewed appeals for public vigilance and stronger home security.
According to the Bermuda Police Service, the burglaries were reported between June 3 and today, with offences occurring during a range of times from the early morning to early and mid-afternoon. In several cases, the suspect was described as wearing sweatpants, a hooded sweatshirt and a ski mask.
Detective Inspector Tiffany Caisey of the Criminal Investigations Unit said burglary has a lasting impact beyond the loss of property.
“Burglary is not merely a physical act, it is an emotional intrusion that impacts a person’s sense of safety and well-being,” she said. “Every resident deserves peace within their home and the assurance that their hard-earned property and personal privacy will not be violated.”
She urged residents to work with police by reporting suspicious activity.
“While the Bermuda Police Service continues to work diligently to provide that assurance, we need you to partner with us and be the eyes and ears of our community and help hold accountable those who choose to engage in burglary, or for that matter, any form of criminal activity. If you see something, call us.”
Police are asking anyone with information about the recent burglaries or other criminal activity to contact the Bermuda Police Service on 295-0011 or 211, call the confidential Crime Stoppers line at 800-8477, or submit information through the BPS online reporting portal.
The Bermuda Police Service also encouraged residents to strengthen home security by keeping doors and windows locked, ensuring exterior lighting is working properly, trimming vegetation around entrances and considering the installation of alarm systems, video doorbells or security cameras. Valuables, vehicle keys and electronic devices should be kept out of sight, while sheds and garages should be secured with sturdy locks.
Residents travelling overseas are advised to arrange for someone to regularly check their property, collect mail and newspapers, use timers on lights to make homes appear occupied and avoid posting travel updates on social media until after returning home.
Police also reminded the public that older residents are often targeted because offenders may perceive them as more vulnerable. They encouraged family members and neighbours to check on elderly residents regularly, ensure their homes are secure and assist with installing improved locks, security lighting or CCTV systems where needed.
A civil nuclear deal with Saudi Arabia has been in the works for years during both President Donald Trump’s first administration and that of former President Joe Biden
International News via Reuters:
The U.S. and Saudi Arabia reached an agreement on civil nuclear power, letting the kingdom enrich uranium and build nuclear reactors using U.S. technology, without requiring the snap UN inspections that Washington has previously demanded from Iran.
A civil nuclear deal with Saudi Arabia has been in the works for years during both President Donald Trump’s first administration and that of former President Joe Biden.
No deal has come together before now, however, in part because of warnings from nonproliferation groups that say that it could offer Saudi Arabia a path to develop a nuclear weapon.
Unlike the Biden plan, the Trump administration deal does not provide for Saudi Arabia to sign the so-called Additional Protocol that allows the U.N.’s International Atomic Energy Agency to carry out snap inspections at undeclared locations.
More than a year ago, Saudi Arabia switched from light-touch IAEA oversight designed for countries with very limited nuclear activities to regular safeguards with monitoring of declared nuclear facilities. The move was part of a planned nuclear expansion that it has long said will include enrichment.
The Additional Protocol is designed to guard against secret nuclear activities, a concern regarding Saudi Arabia since Crown Prince Mohammed bin Salman has repeatedly said Riyadh will develop nuclear weapons if its regional rival Iran does.
Iran implemented the Additional Protocol under a landmark 2015 nuclear deal with major powers, but that deal unravelled after Trump pulled the U.S. out of it in 2018. Iran stopped implementing the Additional Protocol in 2023.
The new agreement with Washington would let Saudi Arabia enrich uranium and reprocess nuclear waste, both of which are potential pathways to a nuclear weapon. The UAE agreed to forgo both when it signed a similar deal with the U.S. in 2009.
U.S. Secretary of Energy Chris Wright and his counterpart Prince Abdulaziz bin Salman signed the pact, known as a 123 Agreement, alongside a bilateral safeguards agreement, the U.S. Energy Department said on Wednesday.
Saudi Arabia, the world’s top oil exporter, said the agreement supports efforts to diversify energy sources, and includes the “highest international standards” of nuclear safety, security and nonproliferation. Saudi Arabia has long said if it does not partner with the U.S. it could do so with China or Russia, which have different proliferation standards.
The Trump administration said the deal abides by nonproliferation agreements in the U.S. Atomic Energy Act, which are among the world’s strongest.
The IAEA has not yet commented on the U.S. announcement.
The energy department said the deal now goes to Congress. Unless Congress raises votes to object to the deal within 90 session days, the deal will go into force. But it would need to have a two-thirds majority to override a presidential veto.
Some nuclear experts called on lawmakers to vote down the deal.
“We urge all members of Congress on both sides of the aisle to recognize the risks and to exercise their power to reject or modify Trump’s proposed nuclear deal with Saudi Arabia so as not to open the door for nuclear proliferation in the Middle East even wider,” said Kelsey Davenport, director for nonproliferation policy at the Arms Control Association.
The about 30-year deal for the construction of AP1000 reactors, which is worth tens of billions of dollars, would benefit Westinghouse, jointly owned by Canada-based Cameco and Brookfield Asset Management.
‘MAKE US ALL LESS SAFE’
An industry source said the deal requires a feasibility study on using U.S. technology in Saudi Arabia. The study and the slow pace of building nuclear power plants and uranium enrichment means it could take many years to build the infrastructure.
Several Democratic lawmakers have warned that the deal could start an arms race in the Middle East as the U.S.-Israeli war on Iran grinds on.
“They are allowing Saudi Arabia, a belligerent and authoritarian nation, to develop nuclear weapons technologies while starting a war with Iran under the guise of preventing an Iranian nuclear bomb,” said Senator Edward Markey, a Democrat. “This deal would make us all less safe.”
Senator Jim Risch, a Republican, said he agrees with the kingdom’s crown prince that the deal stands to benefit both countries.
Reporting by Timothy Gardner; additional reporting by Patricia Zengerle in Washington, Timour Azhari in Riyadh, Ismail Shakil, and Christian Martinez; Editing by David Gregorio, Don Durfee and Chizu Nomiyama
The number of confirmed Ebola cases has increased to 2,536, Congo’s public health institute said late on Wednesday
International News via Reuters:
Ebola has now killed more than 1,000 people in the Democratic Republic of Congo, official figures show, as medics struggle to contain an outbreak amid militant violence, attacks on clinics and widespread shortages.
The number of confirmed Ebola cases has increased to 2,536, Congo’s public health institute said late on Wednesday. The number of deaths has passed the 1,000 mark to reach 1,033, it added.
The Ebola outbreak, Congo’s 17th, was declared in mid-May but experts believe infections started circulating weeks earlier.
It is caused by the rare Bundibugyo strain, which has a fatality rate of up to 40%. There is no approved vaccine.
Health officials have had to contend with insecurity across eastern Congo, the epicentre of the outbreak, where dozens of armed groups operate.
There have been shortages of basic supplies and attacks on health facilities by local people. Some bereaved relatives have been angered by health restrictions preventing them from burying their loved ones.
Some have believed conspiracy theories that the outbreak is a hoax.
Ebola spreads through direct contact with the bodily fluids of infected people, living or dead. It can cause fever, vomiting, diarrhoea and, in severe cases, internal and external bleeding.
Unlike the more common Zaire strain, there are no approved vaccines or treatments for Bundibugyo.
A small number of experimental vaccines and treatments are under review, while experts assess whether existing Ebola drugs could help against the Bundibugyo strain, a prospect so far backed only by limited animal data.
Congo, which reports figures daily, said 63 new cases and 34 deaths had been recorded since the last report.
The outbreak spread to neighbouring Uganda, but authorities there have managed to keep confirmed cases to 20.
No case has been reported in Uganda since June 22 and the last Ebola patient there was discharged on July 16, triggering a 42-day countdown until that East African country can be declared virus-free.
Reporting by Ayen Deng Bior, Vincent Mumo Nzilani and George Obulutsa; Editing by Alexander Winning and Andrew Heavens
The job cuts, some of which have already been completed, include a proposed reduction of about 500 staff in customer operations and fewer outsourced offshore positions
International News via Reuters:
Centrica plans to shed about 1,300 jobs, the British Gas owner said on Thursday after reporting that market volatility, asset disposals and adverse weather had weighed on profit, knocking its shares as much as 10% lower.
The job cuts, some of which have already been completed, include a proposed reduction of about 500 staff in customer operations and fewer outsourced offshore positions.
Centrica, which has been selling non-core assets and concentrating on LNG-related infrastructure to boost margins, also warned of growth stagnating at its energy trading arm.
It is facing other challenges including hot weather in Britain and Iran war-linked disruptions to energy markets.
Centrica has been increasing investment in AI and technology upgrades as it seeks to simplify its operations, and had previously alluded to headcount reductions.
“AI isn’t driving these particular job reductions; that’s mainly due to changing customer behaviour,” Centrica CEO Chris O’Shea told reporters after Thursday’s results.
SOFTER ENERGY TRADING OUTLOOK
Centrica’s first-half adjusted core profit dropped 18% to £737 million, mainly due to the impact of Spirit Energy asset disposals and production outages.
“Volatility across energy markets has created challenges in some parts of our business, and some of our delivery has been slower than we would like,” O’Shea said.
Centrica warned that core profit for next year at its optimisation division, the major contributor to its trading arm Centrica Energy, would be in line with expectations for 2026, which currently stand at around £250 million.
That would be much lower than the £300 million to £400 million medium-term target for Centrica Energy, as it aims for £2 billion overall by 2030.
Centrica said it has sought government intervention to keep Britain’s largest gas storage facility in Rough open and to help the country’s efforts on energy security endeavours.
“We’ve spent the last few years eking out this asset to preserve the option, but we’re really coming to the end of the road now,” O’Shea said, adding that Centrica does not intend to renew its operating licence which expires in April.
($1 = £0.7475)
Reporting by Raechel Thankam Job, Anushka Chourasia and Ankita Bora in Bengaluru; Editing by Sonia Cheema, Kate Mayberry and Alexander Smith
Wildfires have burnt more land in Europe this year than the annual average in the past two decades
International News via Reuters:
Firefighters battling wildfires in Spain and France on Wednesday said the risk of more blazes over the coming days was very high, even as a major fire raging in Spain’s central Guadalajara province receded, allowing some residents to return home.
Wildfires have burnt more land in Europe this year than the annual average in the past two decades, data shows, as the world’s fastest-warming continent has endured three stifling, virtually back-to-back heatwaves this year.
In France, where two firefighters died on Tuesday as their truck was engulfed in flames in the southwest region of Gironde, authorities urged people to avoid using barbecues in areas hit by heatwaves, stressing that nine out of 10 wildfires start, accidentally or not, as a result of human activity.
In the Western Balkans, the danger has shifted from heatwaves to hailstorms, with several people injured in North Macedonia and eastern Kosovo.
Scientists say human-driven climate change is increasing the intensity of heatwaves, droughts and wildfires, while also creating conditions for sudden, destructive storms.
The Reuters Climate Monitor, an interactive tool providing real-time data, showed the average high temperature across Western Europe is forecast to be 26.6 degrees Celsius (79.8 degrees Fahrenheit), which is 3 degrees above the normal high for July 22 in the period from 1961 to 1990.
SPANISH WILDFIRE
Spain’s worst wildfire this year has burned an estimated 32,000 hectares (79,000 acres) in the Guadalajara region. It started to stabilise on Tuesday after forcing evacuations in 34 municipalities and confinement orders in 14 others.
Castilla-La Mancha’s INFOCAM fire service said residents of five villages had been authorised to return, although other restrictions remained in place.
Visiting the region on Wednesday, Prime Minister Pedro Sanchez said Spain had already suffered 22 major wildfires this year.
“We have already reached 100,000 hectares before reaching the most critical period of the year in the fight against wildfires,” he said. “To put that into perspective, that is the annual average that Spain experienced over the past decade,” he said, adding that more must be done to prevent fires.
Spain’s weather agency AEMET said the danger of wildfires remained “very high or extreme” across most of mainland Spain and the Balearic Islands and was expected to increase further in the coming days.
It urged people to “exercise extreme caution” as the ongoing heatwave combined with dry thunderstorms and Saharan dust.
While temperatures will ease slightly in some areas on Thursday, a dry westerly wind is forecast to drive a fresh surge of heat in Mediterranean regions, where highs of 42 to 44 C could be recorded in some areas.
A marked cooldown is expected from Friday. However, the respite may be brief. Temperatures are forecast to rise again from Sunday, and intense heat could return across much of Spain early next week.
FRANCE FIRES
In France, a fire in the southwestern Gironde region devastated 100 hectares between Bordeaux and Cap Ferret and prompted authorities to evacuate 600 people near the village of Saumos on Wednesday and divert road traffic to the popular beaches close to the area.
“Everything is very dry; even today, we are seeing several fire outbreaks, including one that is somewhat complicated,” Sophie Brocas, the prefect in Gironde, told reporters.
“I am going to ban all work — forestry work, all work of any kind — that uses internal combustion engines,” she added.
The risk of more wildfires remains very high in western and southwestern France for the rest of the week, as well as in the southeast at least until Thursday, official weather forecaster Meteo France said.
Less severe temperatures and lighter winds aided efforts to fight a wildfire that has burned 2,500 hectares in the southeastern Var area, damaged dozens of homes and forced 400 people to flee their homes, local authorities said.
So far this year, 44,000 hectares have burned in France, much more than the average, Interior Minister Laurent Nunez said in Gironde, where he travelled on Wednesday, to pay tribute to two firefighters who died on Tuesday fighting another fire in the area.
Officials said another fire was raging in the Hautes-Alpes, also in southeastern France.
HEAT AND STORMS
In Greece, with temperatures forecast to top 41 C (106 F), authorities have banned outdoor work at peak midday sun. In Cyprus, which is also used to high summer temperatures, working outdoors was banned during afternoon hours on Wednesday.
In Skopje, capital of North Macedonia, 11 people were admitted to hospital, three of them with serious injuries, after a storm on Tuesday night felled trees, damaged roofs and caused power outages across the Balkan country, local media reported.
Roads were blocked and some towns left without electricity and water.
In Kosovo, the Hydrometeorological Institute said more storms were expected on Wednesday and warned of possible lightning strikes, damage to the electricity network, power outages, flooding and property damage.
Local media showed roofs being blown away, torrential rain and residents covering their cars with blankets on Tuesday to protect them from hail.
Reporting by Manon Cruz in Cotignac, France, Guillermo Martinez in Condemios de Abajo, Spain, Emma Pinedo in Madrid, Dominique Vidalon in Paris, Fatos Bytyci in Tirana, Angeliki Koutantou in Athens, Daria Sito-Sucic in Sarajevo, Inti Landauro in Brussels; Graphics by Kate Abnett; Writing by Ingrid Melander; Editing by Gareth Jones, Rod Nickel
However, the U.S. tech giant is likely to avoid fresh fines as EU regulators lauded good progress in its ongoing efforts to comply with the landmark legislation
International News via Reuters:
Alphabet’s Google was fined a total of €890 million ($1 billion) on Thursday for flouting European Union rules aimed at reining in the power of Big Tech, the European Commission said.
However, the U.S. tech giant is likely to avoid fresh fines as EU regulators lauded good progress in its ongoing efforts to comply with the landmark legislation.
The fines underscored Europe’s determination to prevent Big Tech companies from thwarting rivals, defying U.S. criticism and retaliatory tariff threats.
One fine of €460 million was handed out to Google by the European Commission under the Digital Markets Act for favouring its own services in shopping, hotels, transport and sports results in search results.
A second fine of €430 million targeted Google’s restrictions on its app store Google Play preventing app developers from steering users free of charge to cheaper offers on rival app stores or websites.
Reuters was the first to report on both fines, which are the first for the U.S. tech giant under the DMA but the fifth and sixth overall for anti-competitive practices, making for total penalties of €10.38 billion over nearly two decades.
“Our duty and obligation is to comply with the laws, that our laws are fully respected,” EU antitrust chief Teresa Ribera told reporters when asked about U.S. pushback.
“The DMA is to make sure we have a fair and level playing field. With these decisions we want to make sure there is competition,” EU tech chief Henna Virkkunen told reporters.
Google, which has 60 days to comply with the Commission’s orders to treat rivals in a fair and non-discriminatory manner and to allow app developers to steer users away from its app store, criticised the EU findings and said it might take the Commission to court.
“To comply, we are having to strip away real-time Search features Europeans love – like instant pricing and direct availability for hotels, flights, and restaurants – and dismantle safety protections on Google Play,” Google President of Global Affairs Kent Walker said in a statement.
“This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse,” he said.
MORE FINES UNLIKELY GIVEN ‘CONSTRUCTIVE DIALOGUE’
The Commission, which acts as the EU competition enforcer, pointed to a “constructive dialogue” with Google and significant progress made to comply with the DMA, indicating that daily penalties for non-compliance are likely off the table.
“Google has proposed and started testing changes to how it presents its own services on Google Search for free services such as shopping, hotels and flights,” the Commission said, calling it substantial progress.
“The Commission also notes that Google has proposed and started testing changes to how it presents shopping ads and content related services, such as sports,” it said, adding it would assess the changes and continue talks with Google.
The EU watchdog also said Google may apply the principles of Thursday’s decision to its AI-generated summaries known as AI Overviews and AI Mode and that talks would continue to this end.
Google’s changes to its steering terms on Google Play received a tentative thumbs up from the Commission.
“These constitute good progress towards compliance and will also be assessed in light of the cease and desist order of today’s decision,” it said.
Europe’s crackdown on Big Tech has angered U.S. President Donald Trump’s administration, which has threatened to retaliate with tariffs for what he said are moves targeting U.S. companies while U.S. lawmakers have also piled on the pressure.
The fines are the third under the DMA after penalties handed out to Apple and Meta Platforms in April last year.
($1 = 0.8763 euros)
Reporting by Foo Yun CheeEditing by Tomasz Janowski
Since taking power on Monday, Burnham has also said he will remove a tax from domestic electricity bills and cap bus fares, eager to show that he can act more decisively than his predecessor Keir Starmer
International News via Reuters:
Britain’s new prime minister, Andy Burnham, said on Thursday he would lower business rates for pubs, clubs and live music venues by 20% from April, his third announcement in three days of measures to help households and businesses.
Since taking power on Monday, Burnham has also said he will remove a tax from domestic electricity bills and cap bus fares, eager to show that he can act more decisively than his predecessor Keir Starmer.
“This government will back the businesses that people want to see in their communities,” said Burnham, a former mayor of Greater Manchester.
Finance minister John Healey, who also started his job this week, said he wanted to go further on reducing the cost of doing business in Britain to lift pessimism around the economy.
UKHOSPITALITY CALLS FOR MORE HELP IN BUDGET
Burnham said the cut to hospitality business rates would save the typical pub about £1,100 ($1,472) next year, benefiting nearly 32,000 venues.
The policy will cost the government £100 million a year, and is sure to be welcomed by small independent venues as well as pub groups such as J D Wetherspoon, Marston’s and Fuller, Smith & Turner.
Burnham did not provide relief for the restaurant or hotel sectors or meet the hospitality industry’s demand to halve sales tax.
Allen Simpson, CEO of trade group UKHospitality, welcomed the cuts for pubs but urged the government to go further to mitigate the effects of property revaluations and the end of COVID relief in other parts of the industry.
“Restaurants are struggling just as much as pubs, while hotels are due to see their business rates bills increase by an average of 110%,” he said.
UKHospitality called on Healey’s forthcoming budget to deliver the wider business rates reform promised in the Labour Party’s 2024 election manifesto.
Jon Hendry Pickup, CEO of holiday group Butlin’s, said excluding major parts of the industry from relief “suggests those pressures are somehow less significant for some operators”.
BUSINESS CONFIDENCE HAS BEEN HIT
The government said the tax cut would be funded by a review of relief for businesses such as vape shops that “do not make a positive contribution to local communities”, and a tax crackdown on businesses that sell through online marketplaces.
Burnham had previously floated the idea of hiking business rates on warehouses used by online giants such as Amazon to help businesses on traditional high streets.
The warehouse industry welcomed the reprieve this time, saying Burnham had listened to reason.
While the cost of support being granted is small, Burnham is trying to show he can move quicker than Starmer who, in 2024, spent the first few months of Labour’s first government in 14 years commissioning reviews into possible policy changes.
Burnham also needs to rebuild relations with the business community, which has complained that taxes on employment and energy, in addition to higher wages, have hammered their ability to invest and grow.
The recent resurgence of the Iran war has spurred fresh concerns about higher energy prices and possible interest rate increases, hitting business confidence.
A hospitality survey released in July showed 23% of respondents were operating at a loss, while 5% said their business was no longer viable.
HEALEY WANTS TO REBUILD TIES WITH BUSINESS
Healey said he understood the frustration among employers and was as worried about the high cost of doing business in general as he was about the cost of living.
“This is just the start,” he told an event at Bloomberg in the City of London financial district. “We know we’ve got a lot further to go.”
Britain’s economy cannot thrive without a strong investment sector, he said.
To maintain confidence among investors, Healey said he and Burnham would work in lockstep to meet the government’s fiscal rules, which stipulate that day-to-day spending is funded from revenue rather than borrowing and that debt must fall as a proportion of national output.
However, British government borrowing costs rose further on Thursday, with the 10-year gilt yield touching its highest since May 20.
($1 = 0.7471 pounds)
Reporting by Chandni Shah in Bengaluru, Kate Holton and James Davey in London; Editing by Christopher Cushing, Gareth Jones and Alison Williams
The blue-chip FTSE 100 index fell 0.04% to 10,712.83 points by 1050 GMT, while the midcap FTSE 250 slipped 0.3%
International News via Reuters:
Britain’s FTSE 100 was little changed on Thursday as weakness in precious metal miners offset gains in energy shares after higher oil prices, while earnings and the ECB’s policy decision remained in focus.
The blue-chip FTSE 100 index fell 0.04% to 10,712.83 points by 1050 GMT, while the midcap FTSE 250 slipped 0.3%.
• The energy stock led gains as oil prices rose after Yemen’s Houthis said they struck two Saudi oil tankers, raising fears that disruption to global oil supplies could spread beyond the Strait of Hormuz.[O/R]
• Limiting gains, the precious metal mining sector, fell 2.5% and led losses sectorally as gold prices dropped on concerns that inflationary pressures could push the U.S. Federal Reserve to raise interest rates later this year. [GOL/]
• Against a backdrop of mounting inflation concerns, investors awaited the European Central Bank’s policy decision later in the day.
• The European Central Bank is all but certain to keep interest rates unchanged but will hold the door open to another rate hike in September.
• Among individual stocks, Takeover target easyJet rose 5.5% after the airline’s third-quarter profit slumped 70% as the Iran war led to volatile fuel prices and made travellers wary, though earnings beat analysts’ estimates and the carrier indicated somewhat clearer skies heading into peak summer.
• Jupiter Fund Management fell 2.6% despite the asset-manager reporting a 67% jump in first-half pre-tax profit.
• Howden Joinery gained 1.6% after the kitchen supplier maintained its annual outlook and said it had hedged fuel costs through year-end.
• Britain’s new prime minister, Andy Burnham, said he would lower business rates for pubs, clubs and live music venues by 20% from April, his third announcement in three days of measures to help households and businesses.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Tasim Zahid
Sterling was trading flat at $1.338, on pace for its first monthly gain against the dollar in three months
International News via Reuters:
The pound held steady and was set for its first monthly rise against the dollar since April on Thursday, while investors weighed a jump in oil prices stemming from escalating U.S.-Iran hostilities ahead of a European Central Bank rate decision.
Sterling was trading flat at $1.338, on pace for its first monthly gain against the dollar in three months. It held firm at 0.853 against the euro after falling around 0.2% in the session, but remained on track for a near 1% rise in July.
The ECB is expected to leave its lending rates unchanged at 1215 GMT, but hold the door wide open to a rate hike in September, as crude oil prices rise.
On Thursday, oil rose 4% to $98 a barrel — the highest in over a month, as supply disruption fears persisted.
Britain is also prone to risks from higher energy prices, with analysts expecting inflation to pick up again later this year despite data on Wednesday showing domestic inflation cooled by more than expected last month.
“I expect price pressures to continue to increase, particularly over the upcoming summer months, so when we start to see the prints for August and September, inflation will kind of push above 3%,” said Modupe Adegbembo, an economist at Jefferies.
The Bank of England is also widely expected to keep its lending rate steady when it meets next week. Money markets show investors, however, are fully pricing in one quarter-point rate hike by December and an around 87% chance of a second such increase.
Meanwhile, British government bond yields climbed as new finance minister John Healey said he was concerned about the cost of doing business, as well as the cost of living.
The pound is one of the better-performing G10 currencies so far this year, having lost 0.8% in value against the dollar, but is some way ahead of laggard currencies like the Japanese yen, which has lost 4.1%, and the Swedish crown, which is down 5.4%.
“Sterling’s rally has been driven more by positioning, carry and potentially some M&A flows than by a lasting improvement in UK fundamentals. With UK short-dated rates likely to drift lower and fiscal risks set to return ahead of the autumn, we expect sterling to hand back recent gains,” ING analysts said in a note.
Reporting by Shashwat Chauhan in Bengaluru; Editing by Amanda Cooper and Editing by Sriraj Kalluvila
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