1:50PM
Former NatWest boss joins private equity
Dame Alison Rose, the former chief executive of NatWest who was forced to quit in the wake of the Nigel Farage debanking scandal, has got a new job.
She has been hired as a senior adviser to Charterhouse, the private equity group which used to own AA and Saga. Financial News first reported the story.
Dame Alison took up the job in April at the firm, which manages about £5bn of assets.
Dame Alison Rose has taken a job at private equity group Charterhouse
Credit: Dominic Lipinski/PA Wire
1:31PM
Mortgage arrears at highest level in nearly a decade
The value of mortgages with arrears has risen to a near 10-year, as borrowers feel the pain from high interest rates.
Our senior economics reporter Eir Nolsøe has the details:
New figures from the Bank of England show the value of mortgages with arrears rose by 4.2pc in the first three months of the year to £21.3bn from the previous quarter.
The rise marks a 44.5pc increase from a year earlier and brings it to the highest level since July to September 2014.
The figures suggest that even as mortgage defaults remain low by historical standards, borrowers are struggling amid 16-year-high interest rates.
It comes as the lending to borrowers with large loans relative to how much they earn hit the lowest level since 2016, suggesting borrowing costs are pricing out buyers with lower earnings.
Bank of England figures show mortgage arrers are at their highest level since 2014
Credit: Victoria Jones/PA Wire
1:13PM
French borrowing costs on track to surge by most since pandemic
French government borrowing costs are on track for their biggest increase since the pandemic after Emmanuel Macron called a shock snap election.
France’s 10-year bond yield – the return the government promises to pay buyers of its debt – jumped 6.5 basis points to 3.3pc after surging 12 basis points a day earlier.
Monday’s rise was its biggest one-day jump in 11 months and if today’s gains hold it would be the biggest two-day jump in French bond yields since March 2020.
It has left the difference between French and German government borrowing costs at its widest point since 2020.
Politics matter! #France‘s 10-year bond spread (vs. #Germany) has spiked to its highest level in the post-COVID era. The #euro is down to its lowest level since early May.
It’s during times of uncertainty that investors will focus on weaknesses. #France‘s weakness is its massive… pic.twitter.com/n3nkUTJKhA
— jeroen blokland (@jsblokland) June 11, 2024
12:57PM
Wall Street on track to fall ahead of inflation figures
US stocks are expected to fall when trading begins as investors hold back ahead of inflation figures and the next interest rate decision by the Federal Reserve.
The S&P 500 and the Nasdaq posted record closing highs on Monday in a choppy session, boosted by shares of Nvidia after its 10-for-one stock split.
Nvidia dipped 0.3pc in premarket trading, while shares of Apple lost 0.4pc after investors were left unimpressed by the long-awaited AI strategy presented at its developer conference on Monday.
Markets are readying for Wednesday’s release of the consumer prices index for May, along with the conclusion of the Fed’s two-day policy meeting.
The central bank is not expected to change rates, but will release its updated economic projections and the so-called “dot plot” indicating where policymakers think interest rates are heading.
Markets are pricing in a 54.4pc chance that the Fed’s first rate cut will happen in September, according to the CME’s FedWatch tool.
In premarket trading, the Dow Jones Industrial Average was down 0.4pc, while the S&P 500 and Nasdaq 100 were down 0.3pc.
12:49PM
Abba Voyage creator in talks to create Elvis hologram show
The creator of Abba Voyage is said to be in discussions to create a new hologram show that will bring Elvis Presley back to life.
Our reporter James Warrington has the details:
Pophouse, a Swedish entertainment firm co-founded by Abba star Björn Ulvaeus, is exploring plans to launch a live show featuring the singer in avatar form.
The company has held talks with Sony Music, which owns the rights to Elvis’ songs, as well as Authentic Brands Group, which owns his image and likeness, to partner on the project.
If confirmed, it would be the second Elvis hologram show to go into development in recent months.
Read how media companies and rights owners look to emulate the enormous success of Abba Voyage.
Swedish entertainment firm Pophouse is in talks with Sony Music, which owns the rights to Elvis’ songs
Credit: Gary Null/NBC/NBCU Photo Bank via Getty Images
12:20PM
UK markets slump amid Europe-wide sell-off
The FTSE 100 has lost ground as European stocks extended a sell-off fuelled by EU political uncertainty.
The UK’s blue chip index was last down 0.9pc on the day, while the Cac 40 in Paris was down 0.9pc and the Dax in Frankfurt had dropped 0.6pc.
The midcap FTSE 250 was down 0.4pc.
Tickmill Group analyst Patrick Munnelly said investors were “carefully assessing the impact of right-wing parties’ success in the European Union and its potential effects on the bloc’s unity”.
Far-right parties performed well in weekend EU Parliament elections, prompting French President Emmanuel Macron to call a snap parliamentary vote and sparking political turmoil in his country.
Ratings agency Moody’s has warned that Macron’s move could lower France’s credit score because it raises the risk of “political instability”.
11:54AM
Rishi Sunak launches Tory manifesto
Rishi Sunak is unveiling the Conservative Party’s general election manifesto at Silverstone as he attempts to get the Tory campaign back on track.
The series of election pledges include 30 hours of free childcare, spending 2.5pc on defence by 2030, abolishing stamp duty on homes worth up to £425,000 for first time buyers and another 2p cut to National Insurance.
Jack Maidment is covering the manifesto launch in our politics live blog, and you can watch it below:
11:37AM
Pound at 22-month high against euro
Sterling has hit a 22-month high against the euro following the move to the far-right in the European Parliament elections and Emmanuel Macron’s decision to call a snap poll.
The pound was up 0.3pc against the single currency, which is worth 84.3p.
Sterling was up 0.1pc versus the dollar to $1.274 as investors await US inflation data and the outcome of the Federal Reserve policy meeting on Wednesday.