Business news live: Contactless payments cap could be scrapped, no interest rates cut

Morning all – we’re again once more to carry you all issues enterprise and cash, the most recent financial updates, what our esteemed leaders are as much as and the way it all impacts our pockets and financial institution accounts.

Inventory market updates to return too as regular alongside the best way, with Primark’s proprietor offering an replace this morning.

The father or mother agency of Primark has mentioned the retail chain noticed buying and selling enhance in current months regardless of “shopper warning”, as its UK and Eire shops recovered floor.

Related British Meals (ABF) mentioned Primark gross sales are set to have grown by 1% over the half-year to September 13, as womenswear and extra beneficial climate circumstances helped assist UK shops.

George Weston, chief government of ABF, mentioned: “I’m happy with how the group has carried out within the second half of our monetary yr in what continues to be a difficult atmosphere, characterised by shopper warning, geopolitical uncertainty and inflation.”

Primark opened 15 new shops together with two within the UK.

Proper now, you’re likely used to paying for issues in contactless trend: hover your card, waft your telephone.

Solely a kind of has a spending restrict although: you want a PIN to make use of your card for funds over £100, the cap which has been in place since 2021.

Nevertheless, the FCA (who units the foundations) have proposed a change which might come into play in just some months, whereby your financial institution will as an alternative set the cardboard contactless restrict – which implies it might in principle be limitless.

That may match paying by system, although nearly 4 in 5 (78%) of shoppers mentioned they didn’t desire a change in guidelines.

“Persons are nonetheless protected. Even with contactless, companies will refund your cash in case your card is used fraudulently,” mentioned the FCA’s David Geale.

One knowledgeable has detailed how binning the contactless pay cap is meant to assist us spend extra, and extra rapidly… to assist the financial system in fact.

Whether or not that’s one thing shoppers really need – or whether or not they even take into consideration in the event that they had been spending £101 fairly than £99 – is up for debate.

However the reminder is there that in fraudulent circumstances it’s the retailers on the road, not the cardboard proprietor, so the onus remains to be on them to test if it’s an enormous cost or an uncommon buy.

“UK retailers could also be hopeful {that a} additional spending enhance might come from an anticipated rest of contactless card cost limits,” mentioned Susannah Streeter, head of cash at Hargreaves Lansdown.

“The Monetary Conduct Authority is proposing to scrap the £100 cap for doubtlessly limitless transactions, though these would nonetheless be set by banks and different suppliers.

“That is a part of a pink tape bonfire to try to cut back monetary regulation and pace up development. The concept is that it is going to be extra environment friendly for retailers and clients alike and can make it simpler for shoppers to spend extra, extra rapidly.

“This might carry the method extra into line with cell wallets, which might used already for higher-value transactions. There may be the potential for elevated fraud, however shoppers will nonetheless have their cash protected in the identical manner, when flagged to a financial institution.

“It’s the retailers who finally pay the worth for fraudulent transactions, by way of the Chargeback course of. So, funding in additional superior detection and prevention strategies shall be much more essential, together with actual time monitoring and behavioural analytics to mitigate dangers.

“These are investments bigger retailers shall be higher positioned to make, however small retailers are more likely to be extra reluctant to wave by means of massive funds, with out additional checks.’”

Housebuilder Vistry has seen half-year income greater than halve as purchaser demand comes beneath strain from worries over the broader financial system and slower-than-hoped cuts to rates of interest.

The group reported pre-tax income tumbling 55% to £40.9 million within the six months to June 30.

Vistry – previously Bovis Houses group – mentioned its ahead order guide was decrease than a yr in the past, standing at £4.3 billion in opposition to £5.1 billion this time final yr.

It mentioned it was trying to enhance flagging demand with “gross sales and advertising and marketing initiatives”.

Analysts and markets alike are predicting that the Financial institution of England – or its MPC – might not vote to chop rates of interest beneath 4% for the remainder of 2025.

Greater inflation, an unsure jobs market and the prospect of taxes within the Finances imply many have altered their expectations, with it beforehand anticipated the MPC would proceed with this yr’s sample of 1 minimize per quarter.

The MPC meets subsequent week, then once more in November and December.

HSBC and Pantheon Macroeconomics each now count on no cuts in any of these three meets, with Deutsche Financial institution switching to solely a minimize in December fairly than the beforehand anticipated November.

Sticking with rates of interest, earlier this week, Barclays analysts mentioned in a analysis be aware that they’re sticking with a November minimize as their prediction:

“We see a November minimize as finely balanced however, with out upside information relative to our forecast in CPI outturns within the coming months, we predict that stability continues to tip to a 25bp minimize.”

Nevertheless, additionally they cite “divergent views [within the MPC voters] and heightened uncertainty” because of the Finances as being massive components at play which might change issues rapidly.

The be aware additionally factors to Rachel Reeves’ massive challenge:

“We calculate the chancellor should discover £26.5bn of fiscal consolidation … to fulfill her fiscal rule.”

Friday’s July GDP launch is anticipated to return out to indicate no development month to month, they add.

Pre-markets present some AI-based US shares are set to rise later at the moment, whereas the FTSE 100 on these shores can also be up – although at 0.2 per cent, it’s being out-shone to this point by France’s CAC 40 at 0.3 per cent within the inexperienced.

“European shares pushed forward on a busy day for company information,” mentioned Russ Mould, funding director at AJ Bell.

“A record-breaking day for Wall Avenue yesterday helped to calm investor nerves over Poland taking pictures down Russian drones that violated its airspace. Geopolitical issues have been entrance and centre for a number of years, and buyers had been hoping for tensions to ease.

“Oracle shares soared amid optimism about AI-related income, sending a robust message to the broader market that the tech revolution remains to be pink sizzling. That had a optimistic read-across to Nvidia which superior 2% in pre-market buying and selling.

“The FTSE 100 superior 0.2% to 9,263 as financials and healthcare shares had been in demand.”

The London Inventory Change might get an actual enhance with 11 new companies trying to record on it.

A report within the FT says a number of companies are hoping to IPO inside the subsequent 12 months, together with personal fairness companies.

Magnificence Tech Group introduced their intention to hitch the LSE this week, with tech agency Visma one of many high-profile names aiming to go public subsequent yr.

Solely seven firms have achieved so in London this yr to this point – the worst in nearly three many years, says the FT.