Consumers could soon see an higher cap, or even have no limit, when it comes to spending money on their cards via contactless payments. The FCA is proposing that banks will set the limits themselves in future, with phones already offering a way to pay with no spend cap.
The FTSE 100 has been on a slow rise this week as investors continue to back British, though as usual the economic backdrop of the US, as well as the UK, will dictate where the money continues to go. Gold is at an all time high and bitcoin is almost back at $112,000 as some look for greater returns to go with an expectation that the Fed will start an interest rate-cutting cycle.
On this side of the Atlantic however, the expectation is for no cut below 4 per cent by the Bank of England’s MPC when they meet next week, with inflation still weighing heavily - though wage growth has slowed and Friday’s GDP figures may yet prove crucial.
Follow The Independent’s live coverage of the latest stock market and business news here:
Key points
- Primark sales grow just 1% in the first half of the year as parent firm cites 'challenging environment'
- FCA propose for banks to set contactless cap - £100 could become limitless
- Experts suggest Bank of England may not cut interest rates again this year
- FTSE 100 rises with AI stocks set to gain once more
Beware the QR code: How a new scam is costing consumers £10,000 per day
15:40
,
Karl Matchett
Whether you’re ordering drinks to your table in a pub or want to pay for car parking, QR codes make life simple.
A quick scan of a black-and-white grid on your mobile phone takes you straight to a website to carry out the transaction.
But that harmless-looking square can hide a cunning scam.
This is known as “quishing”, where fraudsters trick you into handing over bank details or personal data, or download dangerous malware to your phone. Here’s what you need to know.
Business and Money blog - 10 September
07:54
,
Karl Matchett
Morning all - we’re back again to bring you all things business and money, the latest economic updates, what our esteemed leaders are up to and how it all affects our pockets and bank accounts.
Stock market updates to come too as usual along the way, with Primark’s owner providing an update this morning.
Primark owner says sales improving despite ‘consumer caution’
08:00
,
Karl Matchett
The parent firm of Primark has said the retail chain saw trading improve in recent months despite “consumer caution”, as its UK and Ireland stores recovered ground.
Associated British Foods (ABF) said Primark sales are set to have grown by 1% over the half-year to September 13, as womenswear and more favourable weather conditions helped support UK stores.
George Weston, chief executive of ABF, said: “I’m pleased with how the group has performed in the second half of our financial year in what continues to be a challenging environment, characterised by consumer caution, geopolitical uncertainty and inflation.”
Primark opened 15 new stores including two in the UK.
Full details here:
FCA propose for banks to set contactless cap - £100 could become limitless
08:20
,
Karl Matchett
Right now, you’re doubtless used to paying for things in contactless fashion: hover your card, waft your phone.
Only one of those has a spending limit though: you need a PIN to use your card for payments over £100, the cap which has been in place since 2021.
However, the FCA (who sets the rules) have proposed a change which could come into play in just a few months, whereby your bank will instead set the card contactless limit - which means it could in theory be limitless.
That would match paying by device, even though almost four in five (78%) of consumers said they didn’t want a change in rules.
“People are still protected. Even with contactless, firms will refund your money if your card is used fraudulently,” said the FCA’s David Geale.
Contactless pay cap scrap continues 'red tape bonfire to speed up growth'
08:40
,
Karl Matchett
One expert has detailed how binning the contactless pay cap is intended to help us spend more, and more quickly... to help the economy of course.
Whether that’s something consumers actually want - or whether they even think about if they were spending £101 rather than £99 - is up for debate.
But the reminder is there that in fraudulent cases it’s the merchants on the line, not the card owner, so the onus is still on them to check if it’s a big payment or an unusual purchase.
“UK retailers may be hopeful that a further spending boost could come from an expected relaxation of contactless card payment limits,” said Susannah Streeter, head of money at Hargreaves Lansdown.
“The Financial Conduct Authority is proposing to scrap the £100 cap for potentially unlimited transactions, although these would still be set by banks and other providers.
“This is part of a red tape bonfire to try and reduce financial regulation and speed up growth. The idea is that it will be more efficient for retailers and customers alike and will make it easier for consumers to spend more, more quickly.
“This would bring the process more into line with mobile wallets, which can used already for higher-value transactions. There is the potential for increased fraud, but consumers will still have their money protected in the same way, when flagged to a bank.
“It’s the merchants who ultimately pay the price for fraudulent transactions, via the Chargeback process. So, investment in more advanced detection and prevention methods will be even more crucial, including real time monitoring and behavioural analytics to mitigate risks.
“These are investments larger retailers will be better placed to make, but small retailers are likely to be more reluctant to wave through big payments, without extra checks.’”
Vistry profits tumble as home buyers remain wary
09:23
,
Karl Matchett
Housebuilder Vistry has seen half-year profits more than halve as buyer demand comes under pressure from worries over the wider economy and slower-than-hoped cuts to interest rates.
The group reported pre-tax profits tumbling 55% to £40.9 million in the six months to June 30.
Vistry – formerly Bovis Homes group – said its forward order book was lower than a year ago, standing at £4.3 billion against £5.1 billion this time last year.
It said it was looking to boost flagging demand with “sales and marketing initiatives”.
More here from PA.
More Bank of England interest rate cuts no longer likely
09:31
,
Karl Matchett
Analysts and markets alike are predicting that the Bank of England - or its MPC - may not vote to cut interest rates below 4% for the rest of 2025.
Higher inflation, an uncertain jobs market and the prospect of taxes in the Budget mean many have altered their expectations, with it previously expected the MPC would continue with this year’s pattern of one cut per quarter.
The MPC meets next week, then again in November and December.
HSBC and Pantheon Macroeconomics both now expect no cuts in any of those three meets, with Deutsche Bank switching to only a cut in December rather than the previously anticipated November.
Major analyst still backing one cut - and Budget could impact
09:45
,
Karl Matchett
Sticking with interest rates, earlier this week, Barclays analysts said in a research note that they are sticking with a November cut as their prediction:
“We see a November cut as finely balanced but, without upside news relative to our forecast in CPI outturns in the coming months, we think that balance continues to tip to a 25bp cut.”
However, they also cite “divergent views [within the MPC voters] and heightened uncertainty” due to the Budget as being big factors at play which could change matters quickly.
The note also points to Rachel Reeves’ big issue:
“We calculate the chancellor will have to find £26.5bn of fiscal consolidation ... to meet her fiscal rule.”
Friday’s July GDP release is expected to come out to show no growth month to month, they add.
FTSE 100 rises 0.2 per cent - AI shares on the rise again
10:00
,
Karl Matchett
Pre-markets show some AI-based US stocks are set to rise later today, while the FTSE 100 on these shores is also up - though at 0.2 per cent, it’s being out-shone so far by France’s CAC 40 at 0.3 per cent in the green.
“European shares pushed ahead on a busy day for corporate news,” said Russ Mould, investment director at AJ Bell.
“A record-breaking day for Wall Street yesterday helped to calm investor nerves over Poland shooting down Russian drones that violated its airspace. Geopolitical concerns have been front and centre for multiple years, and investors had been hoping for tensions to ease.
“Oracle shares soared amid optimism about AI-related revenue, sending a strong message to the broader market that the tech revolution is still red hot. That had a positive read-across to Nvidia which advanced 2% in pre-market trading.
“The FTSE 100 advanced 0.2% to 9,263 as financials and healthcare stocks were in demand.”
Several businesses hope to go public on London Stock Exchange
10:20
,
Karl Matchett
The London Stock Exchange could get a real boost with 11 new firms looking to list on it.
A report in the FT says several firms are hoping to IPO within the next 12 months, including private equity businesses.
Beauty Tech Group announced their intention to join the LSE this week, with tech firm Visma one of the high-profile names aiming to go public next year.
Only seven companies have done so in London this year so far - the worst in almost three decades, says the FT.
Ben & Jerry’s asks to ‘free’ itself from owner so it can ‘honour its mission’
10:40
,
Karl Matchett
Ice cream brand Ben & Jerry’s wants to return to being an independent business, as it seeks to promote its original “authenticity” and focus on its “social justice mission”.
Since 2000, the brand has been owned by Unilever, the £115bn industry giant which is also the parent of the likes of Dove soaps, Marmite, Domestos cleaning products and more.
However, Unilever is spinning off its ice cream division which will list as a separate entity as the Magnum Ice Cream Company (MICC), which Ben & Jerry’s is set to be a part of.
In an open letter to MICC board members and prospective investors in the new company, which will be listed on the Amsterdam stock market rather than London like Unilever, co-founders Ben Cohen and Jerry Greenfield have pleaded to be allowed to separate themselves once more and return to their roots.
Full details here:
Co-op Bank launches switch offer - £175 to join
11:00
,
Karl Matchett
In the battle for your banking business, another high street name has opened up a cash switch offer.
The Co-operative Bank have brought back their deal which gives consumers up to £175 to change from their current bank - but before you jump to grab the cash, be aware of a few (normal) rules.
You can’t have benefited from this type of deal joining Co-op previously, you need to have at least two active direct debits when you make the switch and you have to jump through other hoops for the full amount like activate your card, make ten transactions and so on.
There’s £100 initially for doing the switch, then £25 extra per month for three months after joining provided you deposit £1,000 into the account and fulfil other criteria.
The link with full terms and what you need to do is here and as always we remind you there are other banks offering similar so check which one suits your needs best - branches, app, savings account interest rates, perks and so on - and get your money working for you in the best way possible.
Ozempic owner Novo Nordisk to cut 9000 jobs
11:20
,
Karl Matchett
Ozempic and Wegovy, the diabetes and weight-loss drugs, are owned by Novo Nordisk.
The Danish drug giant has earned mammoth profits over the past few years from the success of those pharmaceuticals but increased competition, pricing pressures and more mean the market value of the company has shrunk 60% over the last year.
Jobs are now on the line and in a bid to save more than £900m a year, 9,000 roles are set to be cut in a cost-saving exercise.
“It is always difficult to see talented and valued colleagues go, but we are convinced that this is the right thing to do for the long-term success of Novo Nordisk,” said Mike Doustdar, the new CEO.
“We need a shift in our mindset and approach so that we can be faster and more agile.”
The company employs more than 78,000 people globally.
Union calls for jobs guarantee for young people
12:00
,
Karl Matchett
Unions have called for action to tackle a “growing crisis” in young people’s participation in the labour market.
The TUC said there should be an “ambitious” national jobs guarantee for young people not in education, employment or training – so-called Neets.
The UK faces a growing crisis in young people’s labour market participation which “spiralled” under the Conservatives, the TUC warned.
The Government had laid the foundations to tackle the problem, starting with a youth guarantee programme to ensure every young person aged 18-21 has access to learning, an apprenticeship or support to find a job, which is being trialled in regions up and down the country, said the TUC.
Why millions won’t feel the full benefit of the pensions triple lock
12:30
,
Karl Matchett
Millions of pensioners will miss out on receiving more money through the new state pension’s triple lock next year due to a key difference between the old and new versions.
For the new state pension, the triple lock ensures it goes up each year in line with whichever is higher out of inflation, wage growth or 2.5 per cent.
This year, wage growth is set to be the highest of those. Inflation is set to hit around 4 per cent late this year, but wage growth is already at 4.6 per cent, meaning at least a £550 increase to a full state pension next year, from £11,973 to £12,523 from April onwards.
However, there are an estimated 8-9m people on the old state pension – that’s for men born before April 6 1951 and women born before April 6 1953.
Details:
University staff balloted for strike action over job cuts
13:00
,
Karl Matchett
Staff at the University of the Highlands and Islands are being balloted for strike action in a dispute over job cuts and the use of compulsory redundancies.
The University and College Union (UCU) said it comes after the university’s senior management announced last month they plan to make 16 people redundant as part of efforts to save £2 million.
The union said the cuts would be a devastating blow for staff in the university’s executive office who lose their jobs, and it fears there could be more in the future.
More details here.
The tax-free way to save thousands for your children by the time they turn 18
14:21
,
Karl Matchett
Parents and grandparents saving for children could amass a sizeable nest egg for them by starting early - but investing instead of saving can really supersize those gains.
You can put up to £9,000 a year into a Junior Isa (Jisa) from birth to age 18, but even investing smaller amounts will soon add up.
Some 21 per cent of UK investors are already setting aside money for their children and grandchildren, according to research by Fidelity International, and while 28 per cent hope the money will be used to fund education or career development, almost a third (30 per cent) are doing so to teach their children about financial literacy.
Lenders urged to take up looser mortgage rules
15:00
,
Karl Matchett
The newly-appointed City minister will summon the UK’s biggest banks and building societies to urge them to make use of looser lending rules to help first-time buyers get a home.
Lucy Rigby and housing minister Matthew Pennycook will gather senior executives from top lenders for a meeting on Wednesday.
Ms Rigby replaced Emma Reynolds as Economic Secretary to the Treasury, also known as City minister, after the latter’s appointment to Environment Secretary in Sir Keir Starmer’s Cabinet reshuffle last week.
The major shake-up was sparked by former deputy prime minister and housing secretary Angela Rayner’s resignation from Government following scrutiny of her tax affairs.
Ms Rigby is set to call on the bank bosses to make first-time buyers their top priority and to take advantage of measures outlined in the “Leeds reforms” package announced in July.