The FTSE 100 ended on Friday on the rear foot, since the banking actions were under pressure amid that the United Kingdom government is considering an unexpected tax on the sector.
The FTSE 100 index closed 29.48 points, 0.3%, at 9,187.34.
The FTSE 250 ended 138.68 lower points, 0.6%, at 21,605.72, but the AIM All-Share finished 2.89 points, 0.4%, at 764.10.
For the week, the FTSE 100 threw 1.3%, the FTSE 250 fell 1.0%and the AIM All-Share increased 0.4%.
Banking actions in London were shaken by reports that Foreign Minister Rachel Reeves could go to the sector to help underpin public finances.
Natwest lenders, Lloyds Banking Group and Barclays PLC fell 4.9%, 3.4% and 2.2% respectively in London.
On Friday, a report from the Public Policy Research Institute said that the Treasury should impose a new tax to recover the “unexpected profits” made by the lenders as a legacy of the quantitative flexibility program of the Bank of England, carried out following the financial crisis.
The group of experts said that the United Kingdom taxpayer is spending £ 22 billion a year by compensating for BOE for losses in the program.
The scheme involved the BOE that bought hundreds of billions of government bonds, which drive commercial bank reserves in the Central Bank.
Now they are being paid at the official BOE rate, which is 4.0%.
The IPPR recommended that the Treasury enter a reservation income tax that in commercial banks to save £ 7 billion to £ 8 billion a year on this Parliament.
In addition, it suggests that the BOE slows the quantitative tightening, at the end of its sale of government bond fires, to save more than 12 billion a year.
The Financial Times said Friday that the autumn budget will be directed to the banks to help fill a fiscal hole of £ 20 billion.
“It is politically an easy goal,” a main banker told FT. “Nobody likes banks, they are seen as a whipping child for the government.”
Kathleen Brooks, Research Director of XTB, said August has seen a “torrent of filtrations” of the government and the treasure about possible tax increases, before the autumn budget.
“The tax increases that have been proposed include increases in the Capital Profit Tax, the Increases in Property Taxes, the increases in national insurance on rent for rent and a tax on banks, among others.
“The impact of this drip feeding of possible tax increases is eroding the trust and attenuation of the perspectives for the United Kingdom's economy. It is also beginning to affect the prices of the United Kingdom assets,” he said.
Finging Better, Convatec, which increased 1.4% when interim executive director Jonny Mason and interim financial director Fiona Ryder collected £ 167,000 of shares among them.
They took their internal roles after executive president Karim Bitar was held a medical absence permit earlier this month.
Prudential increased 2.3% when Bank of America said the insurer was her best selection in the sector, highlighting the growth of prognosis dividends and shares of shares.
In New York at the time of the closure of London's shares, the Dow Jones industrial average dropped 0.4%, the S&P 500 was 0.7%lower, while the Nasdaq compound fell 1.0%.
On the other side of the pond, merchants weighed a collection in inflation, although in line with expectations.
The Economic Analysis Office said that the Personal Consumer Expenses Price Index in the holders increased 0.2% month by month in July, decreasing 0.3% growth in June and by 2.6% year -on -year, the rate did not change June.
Excluding food and energy, the PCE Central Price Index increased 0.3% to month, the same growth rate as in June, and by 2.9% in the year, accelerating from 2.8% in the 12 months to June.
The figures were in line with the market consensus cited by FXStet.
Core PCE is the favorite inflationary meter of the Federal Reserve, and Friday's reading will play an important role in how FOMC acts at its September meeting.
The 10 -year Treasury performance. UU. It was 4.22%, flat since Thursday. The treasure performance of 30 years from the United States was 4.93%, extended from 4.89%.
Libra decreased to US $ 1,3510 on Friday night in London, compared to US $ 1,3513 at the closing of shares on Thursday.
The euro increased to 1,1699 US dollars, compared to $ 1,1668. Against Yen, the dollar was quoted lower than 146.92 yen, compared to 147.02 yen.
In Europe, CAC 40 in Paris finished 0.7%, while Dax 40 in Frankfurt closed 0.6% lower.
In London, the acquisition activity kept the merchants occupied.
John Wood finally agreed an offer of approximately £ 210 million of the long-term suitor to give al-hasah consultants Shair and Partners Holdings, known as Sidara, worth 30 pence for each wooden action.
In addition, Sidara said it will provide a capital injection of 450 million dollars in dollars in John Wood to provide financial stability, although the long acquisition saga remains subject to several conditions.
John Wood's executive president Ken Gilmartin said the agreement brings “the United States closer to ending a challenging chapter in Wood's history.”
“The acquisition of Sidara will resolve our short -term liquidity challenges and strengthen the company in the long term,” he added.
The agreement is subject to a series of conditions, including the publication of audited accounts of 2024, at the end of October or before and the opinion of the audit is not subject to any modified opinion in relation to the Balance Balance 2024.
Wood shares are currently suspended at 18.20p in the publication of the publication of 2024 accounts.
Meanwhile, JTC increased by 18% for a market value of £ 1.92 billion, since he said that his Board has rejected an acquisition proposal of the private capital firm Perm Advisers.
Earlier on Friday, Permira said he approached the Professional Services Company based in Jersey with respect to a possible cash offer for the business.
Permira and JTC did not detail the terms of any potential offer.
However, Bloomberg reported, citing people with knowledge of the matter, which allows a proposal to buy JTC that values it in approximately 2 billion.
“We believe that there are many possibilities of an offer: this is a market in which Pe has been active and that allows knows well,” Markets Capital Capital analysts said.
A Brent barrel quoted 67.41 US dollars on Friday night, below $ 67.51 US dollars on Thursday. The gold rose to 3,445.38 US dollars on an ounce against 3,407.04 US dollars on Thursday.
The greatest elevators in the FTSE 100 were initial Rentokil, UP 9.0PA 365.0p, prudential, UP 22.2 Penshirts to 988.6p, Fresnillo, UP 35.0PA 1,788.0p, mining of efforts, UP 44.0PA 2,536.0p, and Convatec, UP 3.2P in 236.5p.
The greatest ftse 100 faults were Natwest, less than 26.0PA 510.6P, JD Sports Fashion, below 4.0PA 96.0p, Lloyds Banking Group, 2.7PA 79.5P, Barclays, 8.2PA 360.4py Fisherman, 5.9PA 257.4p.
The local corporate calendar on Monday has a commercial statement of the work partner and provider of IT services, Kainos Group, and the half -year results of the leisure and entertainment company, XP Factory.
The Global Economic Calendar on Monday has a series of PMI manufacturing versions, Eurozone unemployment figures and the United Kingdom mortgage approval data. The financial markets of the United States are closed for Labor Day.
Contributed by Alliance News
