City AM

The roll-out of a British ISA has been scrapped by the new government despite Labour insisting it had “no plans” to ditch the scheme in the run-up to the election. The specialist stocks and shares ISA would have allowed savers to invest an extra £5,000 tax-free in UK equities, on top of the £20,000 ISA allowance. However, the government is now set to drop the plan, according to the Financial Times, with one official stating that “we are not planning to complicate the ISA landscape even further”. This stands in stark comparison to what Labour had said on the campaign trail, telling City A.M in May: “Labour has no plans to drop the British ISA.” ✍️ Elliot Gulliver-Needham Read the full story here 👇 https://lnkd.in/duPs97Bb

Mark your calendar for November 18th at Mansion House, Bank, as City A.M. proudly continues the legacy of the Lord Mayor’s Dragon Awards, established in 1987. This esteemed event recognises the businesses and individuals whose commitment to ESG and social impact is worth celebrating. With 12 award categories, there's a chance to recognise outstanding contributions across different sectors and business sizes. Nominations are now open and close on October 11th, so don’t miss out.  Join us at this prestigious event to honour those building a better future. We look forward to celebrating with you! Click the link below to learn more about City A.M. Dragon Awards 👇 https://lnkd.in/dh2H-xPC

Analysts at Panmure Liberum think the UK will be the “standout performer” among major economies in the months to come with firms set to benefit from strengthening domestic demand. In a note published this morning, the City brokerage discussed its early cycle indicator (ECI), a tool for predicting how economies are likely to perform over the months ahead. Using data from PMI surveys, Panmure Liberum’s ECI constructs a new order to inventories ratio, essentially measuring incoming demand compared to firms’ existing stockpiles. Any reading above one indicates strong demand. ✍️ Christopher Dorrell Read the full story here 👇 https://lnkd.in/dEpwA2vW

The hope of a rally in UK investment was thwarted last month as the number of UK investors selling out of domestic equity funds doubled due to the downturn in global markets. UK investors pulled £510m from British-focused equity funds in August, more than double the figure in July when outflows reached their lowest level in three years, according to data from Calastone. “This is the 39th consecutive month of outflows from UK equity funds, which shows that the improving commentary on the UK has not translated into investor enthusiasm,” Charles Hall, head of research at Peel Hunt told City A.M. ✍️ Elliot Gulliver-Needham Read the full story here 👇 https://lnkd.in/eun-vzvZ

A wave of panic selling hit Wall Street on Tuesday, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all suffering their steepest daily percentage declines since early August. The carnage was widespread, with nine of the 11 sectors within the S&P 500 sinking into the red, led by sharp declines in technology, energy, communication services and materials. The selloff was triggered by lacklustre US manufacturing data, which, despite a modest uptick in August, remained in the doldrums following an eight-month low in July. Chipmaker Nvidia bore the brunt of the bloodbath, plummeting 9.5 per cent in regular trading and sinking another 2.4 per cent after hours following news that the US Justice Department had issued subpoenas as part of an antitrust investigation. ✍️ Jess Jones Read the full story here 👇 https://lnkd.in/ejtDvprJ

How to pick the best UK small companies to invest in? When it comes to investing in the stock market, we all know the UK is cheap. However, smaller companies are even cheaper, and while they might be harder to research, they can pay off big. Fraser Mackersie and Simon Moon, co-managers of the Unicorn UK Income Strategy, UK Smaller Companies and UK Growth funds are tasked with finding the best British companies to invest in outside the FTSE 100, but the selection of small companies has been rapidly reducing in recent years. Only around 700 companies are left on the UK’s AIM market, the fewest since 2002 and less than half the number during the market’s heyday in 2007. However, Mackersie and Moon were undeterred, with the former stating that while “if it persists, it will be a bit troubling,” but with over 700 companies to pick from, there was still plenty of choice. ✍️ Elliot Gulliver-Needham Read the full story here 👇 https://lnkd.in/g3mJJ9f4

The UK economy is “rebounding solidly” and the City of London is reaping the benefits of the Labour government’s ‘growth agenda’ despite fears of a looming round of swinging tax cuts, one of the Square Mile’s top investment banks has said. In a note to investors yesterday, Peel Hunt said the “mood change” in the UK was “palpable” and Britain was positioned for a “protracted period of above-average growth”, higher business investment, improving consumer demand and lower interest rates. “The new government not only brings political stability and clarity, but also has a firm growth agenda,” Peel Hunt’s head of research, Charles Hall, and chief economist, Kallum Pickering, wrote. “This is evident from the Pensions review and the FCA’s competitiveness review, which we see as the start of a comprehensive change in approach.” ✍️ Charlie Conchie Continue reading 👇 https://lnkd.in/edce2V6Z

The financial services sector is leaning into the hype around artificial intelligence (AI), as banking and fintech executives hail its potential to boost productivity and reduce costs. The technology is booming across global financial services. Banks’ spending on generative AI alone is estimated to hit $85bn (£64.3bn) globally in 2030, from $6bn (£4.5bn) in 2024, according to Juniper Research. McKinsey forecasts it could add up to $340bn (£257bn) in value to the global banking industry each year, or roughly 4.7 per cent of its total revenues. While still most commonly used for marketing and customer service, an increasing number of financial firms are testing new use cases for AI as the technology advances. ✍️ Lars Mucklejohn Read the full story here 👇 https://lnkd.in/ewjg8PhN

Should we be investing based on our personal beliefs? On this week's edition of Meet the Fund Managers, Elliot Gulliver-Needham chats to Yolanda Courtines, manager of the Wellington Global Stewards fund, about focusing on stewardship, a more volatile world, and sticking by sustainability even as it has fallen out of fashion. Read the story here 👇 https://lnkd.in/ejiYiScf

Hundreds of female founders took to social media this weekend to express growing concerns surrounding the results of Innovate UK’s most recent funding competition for women in business. The funding competition, titled Women in Innovation, was designed to encourage women leading small and medium-sized enterprises (SMEs) in the UK to apply for grants of up to £75,000 each. There were a total of 1,452 applicants, of which 1,271 were deemed eligible for funding. Despite the application process reportedly stating that there were 50 awards available and a £4m allocated fund, the group suddenly told applications late last week that it only intends to give awards to 25 projects. ✍️ Jennifer Sieg Read the full story here 👇 https://lnkd.in/ejncM82q