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Newcastle Financial Advisers snaps up County Durham company as owners retire

2025-09-23 22:30:26 By

Newcastle Building Society signage at its Bishop Auckland branch

The financial advice arm of Newcastle Building Society has snapped up a County Durham business as part of its growth strategy.

Newcastle Financial Advisers Ltd has acquired Chester-le-Street based Orchard Financial Management, a deal which adds around 200 customers to the business, following the founders’ retirement. The Wallsend based business provides advice on investment, retirement, inheritance tax planning and protection advice through the Society’s network of branches across the North East, Cumbria and North Yorkshire.

The firm said the addition of Orchard gives the new customers access to face-to-face financial advice services throughout the mutual’s network of 32 locations. Graeme Leigh founded Orchard Financial Management in 1998 to provide advice on investments and pensions as well as protection and he has grown the business through word-of-mouth recommendations alongside his wife Michele.

The pair have now decided to retire, saying they were drawn to Newcastle Financial Advisers because of its commitment to building long-term relationships with customers, and expertise in the market.

Mr Leigh said: “The top priority for Orchard Financial Management was to find the right and trusted home for our clients. Newcastle Financial Advisers has a fantastic reputation and we’re impressed by its strong high street presence both in County Durham and throughout the North East, North Yorkshire and Cumbria, which will help to ensure a smooth transition and integration of our local client base.”

Iain Lightfoot, managing director of Newcastle Financial Advisers, said: “We’re pleased to be able to welcome Orchard Financial Management’s customers to Newcastle Financial Advisers Limited. Graeme’s focus on fostering long-term relationships based on a foundation of trust is one that very much aligns with our own purpose, and the acquisition of his business therefore feels like an organic fit for Newcastle Financial Advisers.

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City analysts downgrade luxury stocks as impact of Trump tariffs filter through

Deutsche Bank, the city broker, has lowered the target share price for a range of luxury firms as Trump's tariffs begin to influence analyst predictions. The broker assigned a 'Hold' rating to Richemont, LVMH, Moncler and Kering, reducing the share price for each company, as reported by City AM. "The direct impact of the tariffs is not a huge headwind in our view... However, weaker global stock markets and the broader economic uncertainty will weigh on confidence and we see this further postponing a recovery in luxury demand," analysts commented. Hermes was the sole firm to receive an upgrade, with Deutsche Bank shifting its recommendation from a 'Hold' to a 'Buy' and raising the target share price from €2,220 to €2,550 (£1,911 to £2,195). Mamta Valechha, Consumer discretionary analyst at Quilter Cheviot, stated that Hermes would benefit from its "strong pricing power and higher-end positioning" despite the inevitable single-digit price increases. "However, how the US (and global) luxury consumer responds to potentially reduced global economic growth remains unknown," Valechha added. There was a significant sell-off in luxury markets after Trump announced tariffs on April 2. Burberry, Kering, and LVMH have dropped 16.6 per cent, 16.2 per cent 12.5 per cent, respectively, since April 2. Traditionally safe bets Hermes and Ferrari have dropped 8.5 per cent and nine per cent, respectively. Analysts were initially banking on a resurgence in the luxury sector following a dip caused by the cost-of-living crisis in Europe and economic downturn in China during 2023. "It is no longer clear that the third quarter of 2024 was the nadir for luxury demand," stated analysts from Deutsche Bank. "The luxury recovery in the fourth quarter now looks likely to be the anomaly and not the trend."

Jobs saved as Horizon Works Marketing assets acquired

Jobs have been saved at an established North East marketing agency following its administration. Horizon Works Marketing, which had operated from a base in Cramlington, called in administrators following challenges stemming from the Covid pandemic. The firm's founder says it is now looking positively to 2025 after a new company has been established to continue trading under the Horizon Works name, with 10 jobs secured in the process. Insolvency experts at KBL Advisory were appointed to Horizon Works late last year. Founder and managing director Samantha Vassallo acquired the assets of Horizonworks Marketing Limited and has established Horizon Works Limited. The business, which is now based out of the Blyth Workspace building at the Port of Blyth, was originally set up in 2010 and has established a specialism in business to business marketing services for innovation and technology-led manufacturing and engineering businesses. Its team of marketers, writers, designers, digital experts and PR and communications specialists provide a range of services including strategy creation, marketing campaigns, SEO, brand development, media relations and digital development. In the 15 years since its inception, Horizon Works has carried out work for a variety of clients across the automotive, process, engineering, energy and technology sectors - many of them North East-based and others further afield. It is also an affiliate partner of several sector-based groups such as the Engineering and Manufacturing Network, a Fit for Defence partner of Make UK Defence, and is a member of the North East Automotive Alliance (NEAA), NOF and the Entrepreneurs’ Forum. Samantha Vassallo, managing director of Horizon Works, said: "The restructure was necessary due to legacy financial pressure resulting from the Covid-19 pandemic. All jobs have been safeguarded and the specialist team that Horizon Works has built up over 15 years remains in place.

AJ Bell's trading update reveals boom in new customers and assets

AJ Bell has reported a significant growth with assets under administration soaring to £89.5bn by the end of 2024, an indication of the investment platform's appealing eight per cent customer increase over the year. The trading platform enjoyed a 17 per cent surge in assets throughout the previous year, with a three per cent rise in the final quarter, according to its latest trading update, as reported by City AM. The customer base has nearly reached 561,000, largely owing to its direct-to-consumer platform, which saw a four per cent uptick in users during the year's last quarter. The rate at which advised customers expanded was more modest, experiencing a two per cent growth within the same period, bringing the total to 174,000. "During the quarter we continued to see the benefits of our dual-channel model and the high-quality propositions that we offer to both the advised and D2C market segments," commented AJ Bell's chief Michael Summersgill. The investment firm witnessed robust net inflows across both its platform and investments operations during the final quarter, achieving £1.4bn and £400m respectively. Particularly notable was the direct-to-consumer sector, which secured net inflows of £1.1bn, marking a hefty 57 per cent jump from the equivalent quarter in 2023. "Ahead of the October Budget, speculation around the tax treatment of pensions caused a short-term behavioural change among retail investors, which normalised quickly once the content of the Budget became known," Summersgill added. The company's chief executive stated: "The strong start to the year positions us well as we approach the busy tax year end period. We remain focused on the significant long-term growth opportunity that exists in the platform market. Our dual-channel approach and continued investments into our propositions and brand mean we are well-placed to continue our strong growth." AJ Bell recently received an upgrade from Shore Capital, moving from a Hold to a Buy rating, based on the weakness in its share price and the long-term need for people to save for retirement.

Investors pile into gold as Trump's tariff turmoil continues

The price of gold has soared to another record peak, fuelled by concern over President Donald Trump's tariff strategy and a weakening dollar, leading investors towards the traditional sanctuary of precious metals. Gold's value ascended 1.5% to surpass $3,200 (£2,451) per troy ounce on Friday – an unprecedented level – as Asian markets stumbled due to the ongoing repercussions of President Trump's deferred tariff measures, as reported by City AM. Despite its status as a refuge for capital during turbulent times, the precious metal had initially been swept up in a severe sell-off amid tariff-driven market chaos. Gold spot prices experienced a remarkable increase of over 30% since the beginning of 2024 but witnessed a downturn from $3,166/oz to $2,973/oz from April 2 to April 6. Market experts believe that investors were compelled to sell their gold assets to cover margin calls from creditors. Pepperstone analyst Michael Brown pointed to the removal of the "risk premium" associated with gold after its exclusion from the postponed tariffs Trump labeled ‘Liberation Day’ as the cause of the brief dip. Nevertheless, from April 6 onward, gold has bounced back robustly, registering its most significant bi-day surge since 2020 and reaching a new all-time high. Market strategists have attributed this latest rally to the faltering US dollar – which renders the metal more accessible to buyers using other currencies – and predictions that central banks might accelerate interest rate cuts more than previously presumed to prevent an economic deceleration. This week has seen the dollar descend to its lowest level against major global currencies in a decade. Dominic Schinder of UBS Global Wealth informed Bloomberg TV that further rate cuts from the Federal Reserve would provide another "leg up" for gold, as the yield on holding cash – a common refuge amid prevalent bearish sentiment – is lower. This rally boosted London-listed gold miners, leading the FTSE 100 higher on Friday morning. Fresnillo saw an increase of approximately 5.9 per cent, while Endeavour experienced a surge of over 4.5 per cent in early trades. Brokers at Peel Hunt upgraded precious-metal-miner Fresnillo from 'hold' to 'add' in a note, suggesting that sustained high gold and silver prices would generate more cash flow at the commodities giant. "[The first quarter] saw gold and silver prices well ahead of expectations on rising market uncertainty," they noted. "The extreme US tariff announcements simply added to this uncertainty.

Lloyds Banking Group to transform head office with £200m investment

Lloyds Banking Group is set to pour £200m into the revamp of the Scottish Widows headquarters, making it the financial giant's primary hub in Scotland. The renovation of the Port Hamilton building on Morrison Street, Edinburgh, executed in collaboration with Drum Property Group, pledges to bolster Lloyds' presence in the Scottish capital where approximately 10,000 staff are based, as reported by City AM. For nearly three decades, the building has served as the core office of Scottish Widows and is expected to retain its role post-upgrade in 2027, continuing to oversee pensions and investments. This eight-storey property, spanning 325,000 sq ft and known for its distinctive curved roof, stands out as an iconic edifice in Edinburgh’s financial district. According to Lloyds, this initiative is part of a broader commitment to cultivate a more sustainable and environmentally friendly office network across the UK, advancing towards their net zero ambitions. This endeavour aligns with the group's previous movements, including last year's full refurbishment of the Bristol office and relocation to Leeds’ most eco-efficient office space. However, earlier this month, City AM detailed Lloyds’ plans to shutter its Liverpool facility later this year, a decision affecting around 500 employees. This closure is seen as part of a wider strategy to maintain "fewer, better-equipped" offices and streamline operational costs. In a statement, Lloyds confirmed that no jobs have been cut as part of the closure plans. Instead, employees at the office will be asked to relocate to its Cawley House office in Chester. The bank added that 80 per cent of employees based in Speke are currently working remotely or will be doing so when the building closes. This news follows reports that senior staff at Lloyds Bank may face bonus cuts if they do not attend the office at least twice a week. Chira Barua, CEO of Scottish Widows, commented: "There’s a real buzz in the fintech scene in Scotland and we’re committed to staying right in the centre of it." He further stated: "We’ve made huge progress in connecting customers with their financial futures and we’re starting to see how powerful digital engagement and gamification will be in the future." He also noted the potential to make a significant difference for customers, saying: "There’s huge potential to help make a real difference for our customers’ lives and we’re right out in front building all the parts we need to innovate in a massive way." Sharon Doherty, chief people and places officer at Lloyds Banking Group, added: "We’re creating modern, inclusive, sustainable and fun workplaces where our people love to work." She also mentioned the improvements made to their offices across the UK, stating: "We’ve already made significant improvements to our offices across the UK, with more to come." "And our redesigned home in the centre of Edinburgh will help us connect, collaborate and spark the creativity to deliver great outcomes for our customers." Graeme Bone, group managing director at Drum Property Group, commented on the £200m redevelopment of Port Hamilton as "The £200m redevelopment of Port Hamilton presents an exceptional opportunity for Lloyds Banking Group to upgrade and enhance one of Edinburgh’s landmark buildings and deliver an exceptional working environment for Lloyds colleagues in an unrivalled location."

The latest acquisitions and equity investments in Wales

Here we feature the latest equity funding raising and business acquisition deals in Wales. Game industry veterans Susan and Lee Cummings have secured a significant six-figure investment from Angels Invest Wales, PlayCap and the Games Angels for their new game development studio, 10six Games. The investment boost comes ahead of the upcoming first game release by 10six Games. The company has also announced the appointment of industry guru Nick Button-Brown as a company director. Led by lead investor Huw Bishop, the pre-seed round has been funded by a syndicate of 12 angel investors including members of PlayCap (a global angel network of women from the games industry who specialise in early-stage investments in studios, companies, and tech in games) and The Games Angels (a global angel network of Games Industry veterans). The Development Bank of Wales has provided match-funding from the Wales Angel Co-Investment Fund that is run by Angels Invest Wales. Susan and Lee Cummings previously set-up Tiny Rebel Games, the award-winning game production studio behind Doctor Who: Legacy and Infinity for mobile devices and computers. Susan also co-founded 2K Games, developing Bioshock, Borderlands, X-Com, 2K Sports, and Civilization. She is a visiting professor at the University of South Wales along with husband Lee who worked at Sony before moving to Rockstar Games’ Grand Theft Auto team where he was a producer on GTA: San Andreas and GTA 4, and where he was a key member of the redesign team on Bully. More recently, he has led the creative design for various award-winning games including Doctor Who, Star Trek, War of the Worlds, and Wallace & Gromit (under licence). Mr Button-Brown has worked across the tech and games industry for more than 20 years, including helping grow and scale Improbable, and helping take Sensible Object to a trade sale to Niantic. He is currently chair at Outright Games, Chair at Coherence and on the board at Adinmo. He founded The Games Angels in 2021, a community of games industry veterans investing and supporting start-ups. Nick is also on the board at UKIE (one of the UK’s games industry representative bodies) and OKRE (a charity promoting links between research and entertainment) as well as driving Funding Quest, a programme improving the investability of UK Games companies. Ms Cummings said: “Representation in video games is more important than ever, and technological limitations have long constrained the scale of customization developers could offer. With our proprietary technology and our upcoming game “You v Zoombies, we’re breaking those barriers—creating fully personalized, ever-evolving experiences for every player. This level of customisation was previously unattainable, but thanks to advancements in generative AI, we’re making it a reality right here in Wales.” Mr Cummings said:“Our technology enables autonomous AI-driven design decisions, from custom starting spells and upgrades to gameplay sequencing and story development. It’s an incredibly exciting breakthrough. “We’re also grateful for the support of gaming industry expert Nick Button-Brown and our funding partners, who share our vision for the future of personalized gaming.” Lead investor Mr Bishop said: “It was a pleasure to bring together a group of angels to support 10six Games, a new game development studio led by seasoned founders and gaming rockstars, Susan and Lee Cummings. They have a uniquely exciting vision for the next generation of player character and story customisation in games. Their track record is second to none and I look forward to supporting them in the future”. Tom Preene of Angels Invest Wales said: “This is a team surrounded by some of the top experts in the global games industry. They are working at the cutting edge of technology and are known for their innovation and creativity. Gaming is a growth industry, and it is exciting to think what it could mean for Wales as more developers start to recognise South Wales as a gaming hub.” The investment by the syndicate of angels was match funded by the Wales Angel Co-Investment Fund. With equity and loans from £25,000 to £250,000, the £8 million fund is available to syndicates of investors seeking to co-invest in Wales based SMEs. Syndicates are managed by Lead Investors who have been pre-approved by Angels Invest Wales. Cellar Drinks Powys-based Cellar Drinks has acquired Hurns Beer Company. The deal, the value of which hasn’t been disclosed, marks a significant milestone in Cellar Drinks’ ambitious growth plans. Hurns Beer Company will continue to operate from its existing depots in Swansea and Caerphilly and under its own name. The acquisition also brings opportunities for new and existing Hurns customers with an expanded product range, including new brewery partnerships, an extensive wine portfolio, premium spirits and soft drinks. Rhys Anstee, managing director of Crickhowell-based Cellar Drinks said: “I am thrilled to take on the stewardship of Hurns Beer Company and cannot wait to build upon its incredible legacy. Hurns has a rich history, and we are committed to honouring its past while also driving it forward into a new era. Our customers can look forward to unrivalled service levels as well as an expanded and diverse product offering, ensuring that we continue to be their trusted drinks supplier for years to come.” Connie Parry, from the Hurns family, said: “As a family, we are delighted to hand the keys over to Rhys. We have known each other for many years, and he is the ideal custodian to lead the business into its next chapter. The entire team is excited about the future and looks forward to working together to continue growing the business.” Chyrelle Anstee, director at Cellar Drinks Co, added:“Our new Hurns customers can look forward to a new online ordering facility, lots of engagement from key suppliers, and a new bi-monthly brochure that will allow them to focus on profitability in these uncertain times. We’re committed to offering innovative solutions that make doing business easier and more profitable for all of our customers.” The Hurns was originally established as the Hurns Mineral Water Company by Arthur A Hurn in the late 1800s. Burbank A Cardiff fintech start-up has raised £5m to support global expansion plans. It comes after Burbank earlier this month successfully demonstrated the world’s first certified online card-present transaction. Known as card-present over internet (CPoI) its tech platform redefines two-factor authentication so allowing shoppers online to simply tap their card to their mobile device and securely enter their PIN to complete a transaction, just like they do in-store. Until now, online payments were card-not-present (CNP) transactions, which have high and increasing levels of fraud. Currently, online merchants face over $40bn annually in fraud and charge backs, which is when a cardholder disputes a transaction and the merchant is obligated to provide a refund. The £5m seed funding round was led by Mouro Capital with participation from Anthemis (supported by Foxe Capital), Portfolio Ventures and others. These funds will accelerate the global roll out of Burbank’s platform. Justin Pike, the Newbridge-born founder and chief executive of Burbank, said, “We are extremely excited to bring this evolution in payments to the world. The payments experience should be the same for everyone, regardless of channel. “In-store we pay by tap and PIN, which is globally trusted and familiar, and now, for the first time ever, we’re enabling the same process in online channels. Simple, secure, and scalable. The way it should be.” Manuel Silva Martinez, general partner at Mouro Capital, said: “I’m thrilled to support Justin and his team of payments experts. Burbank offers a simple, seamless integration through a single while-label SDK (software development kit), which securely integrates into existing technology stacks, and supports multiple schemes on iOS and Android. It’s what the market needs.” Ruth Foxe Blader, general partner at Foxe Capital, added, “CPoI is the first protocol that legally shifts liability away from the merchant. It’s a massively scalable approach, with global demand.” Burbank’s advanced platform offers unparalleled convenience and robust security, empowering consumer-facing businesses to innovate in customer experience and unlock new revenue opportunities.” Burbank owns the intellectual property to its technology and said it will soon receive two global patents. Its revenue model will see it taking a percentage of the savings made for merchants on the cost of processing. Hugh James deal Cardiff headquartered legal firm Hugh James have advised the shareholders of Kent-based Highway Care Limited on its sale to Ramudden Global, a leading provider of infrastructure safety solutions. Kent-based Highway Care, a leading provider of innovative road safety solutions, offering a broad range of products, including permanent and temporary road barriers, mobile traffic products, automation systems, and security solutions. The acquisition by Ramudden Global ensures continued investment in the company’s product development, allowing it to expand its reach and enhance its service offering in the road safety sector. Huw James corporate and commercial partner Andrew Hoad led the deal, supported by solicitor Daniel Burke. Mr Hoad said: “It has been a great pleasure working with John and the Highway Care team throughout this sale. We congratulate Ramudden Global on their successful acquisition and look forward to seeing Highway Care continue to flourish under its new ownership.” Curtis Bowden & Thomas Acquisitive professional services firm Xeinadin has acquired south Wales accountancy firm Curtis Bowden & Thomas. The value of the deal for the firm, which has offices in Tonypandy and Bridgend, has not been disclosed. Established in 2003, Curtis Bowden & Thomas provides a range of general accounting and taxation services to local businesses. The 22-strong team will continue to operate from their offices with the support and resources of being part of Xeinadin’s network. The firm will continue to trade as Curtis Bowden & Thomas. Robert Lloyd, Stephen Smith, and Stephen Davies partners with Curtis Bowden & Thomas, said: “We’re excited to join Xeinadin and continue delivering the high-quality service our clients expect. South Wales faces distinctive challenges, from economic regeneration to skills shortages, and we’re confident that being part of Xeinadin will improve our ability to support local businesses. With access to a wider network of expertise and resources, we’ll be better equipped to help our clients navigate these challenges and drive sustainable growth.” Last year Xeinadin acquired Carmarthen-based accountancy firm Clay Shaw Butler and Bridgend-based Clay Shaw Thomas. Derry Crowley, chief executive at Xeinadin, said: “Curtis Bowden & Thomas has built a strong reputation in South Wales by providing businesses with the support they need to thrive, despite the unique economic challenges of the region. With a deep understanding of the local business environment, their expertise aligns well with Xeinadin’s commitment to supporting growth in Wales and we’re excited to welcome them to the team.”

IG Group boosts share buyback programme to £200m following Freetrade acquisition

IG Group, the FTSE 250 firm, has announced plans to spend an additional £50m on share buybacks following its acquisition of trading app Freetrade. The company's six-month results up to 30 November revealed an extension of its previous share buyback programme from £150m to £200m, as reported by City AM. IG Group CEO Breon Corcoran stated: "It is pleasing to show how we can both invest in accretive growth and return capital at attractive equivalent rates of return on our buyback, all whilst safeguarding our robust balance sheet." The results showed a revenue increase of 11 per cent to £522.5m over the six months, with adjusted profit before tax rising 30 per cent from £205.7m to £266.8m. Despite IG Group's strong growth, analysts had mixed reactions to the results. Jefferies had predicted trading revenue would total £453m, but it only grew to £451.7m, although the analysts had forecast an adjusted profit before tax of only £242m. RBC, on the other hand, predicted a 12 per cent growth in revenue and a 40 per cent growth in earnings per share, compared to actual growth of 43 per cent. Corcoran added: "First half performance reflected more supportive market conditions, but we have work to do to grow active customers which will be necessary to deliver sustainably stronger growth," Last week, IG Group acquired stock trading app Freetrade for £160m, with the firm set to move to IG Group in mid-2025. The direct-to-consumer trading platform, which burst onto the scene in 2018, provides investors with commission-free options for shares, ETFs, and gilts. The announcement of its sale received mixed responses from investors, some of whom were vexed by a sale price that didn't match up to recent fundraising valuations. "CEO Breon Corcoran has re-energised the investment case for IG Group setting out the opportunity and identifying areas of improvement," remarked RBC analyst Ben Bathurst. On the positive side, IG Group's stock has seen a notable surge, climbing 25 per cent over the past half-year.

Pensions industry hopes Bell appointment could 'revive' auto-enrolment debate

Industry leaders are hopeful that the appointment of Torsten Bell as pensions minister could reignite discussions about increasing the contribution rate for auto-enrolment pensions. Bell assumed the pensions brief on Wednesday following a mini-reshuffle triggered by Tulip Siddiq’s resignation as City minister, as reported by City AM. Emma Reynolds, his predecessor, has taken over Siddiq’s former role. Bell previously served as chief executive of the Resolution Foundation, a left-leaning think tank that has advocated for higher auto-enrolment contributions to fund domestic investment and enhance financial security for retirees. Auto-enrolment pensions were launched in 2012 to counteract the decline in workplace savings. The policy is widely regarded as successful. According to government data, UK employees saved £114.6bn towards their pensions in the decade following its introduction in 2012, a real terms increase of £32.9bn. At present, the minimum contribution for these pensions is divided, with employers contributing at least three per cent and the employee the remaining five per cent. However, in Ending Stagnation, a book co-authored by Bell during his tenure at the Resolution Foundation, he argued for an increase in contributions. "The next phase in its development should be a levelling up of the minimum contributions by both employers and employees to six percentage points (from three and five per cent respectively), representing a 50 per cent increase in total," he wrote. "A capped amount of these savings should be made available for everyday contingencies – tackling precarity for individuals as we underpin higher investment for the economy as a whole." stated an advocate for increased auto-enrolment rates in the pensions industry. This view supports that such changes will secure more adequate savings for future pensioners. "In the next five years, the majority of defined contribution pension savers will enter retirement with less income than they expect or need, and this will worsen to a peak in the early 2040s," warned Andy Briggs, chief executive of Phoenix Group, in his remarks to City AM. Briggs highlighted that increasing auto-enrolment contributions is critical, branding it the "single biggest lever" the government could utilise to rectify the impending pension shortfall. Despite pledges that pension adequacy would be reviewed during the second phase of its pension review, the Financial Times reported that Chancellor Rachel Reeves had postponed said review indefinitely. The cause for the postponement, as noted by media sources, was concern over imposing additional burdens on businesses following the Budget's pressures. Briggs optimistically noted that alterations could be executed "as economic conditions allow" and recommended a develop "roadmap" to guide businesses and households preparatively. Moreover, Lisa Picardo, Chief Business Officer UK at PensionBee, expressed hope that Bell's appointment might "revive necessary discussions" regarding auto-enrolment contributions. Zoe Alexander, director of policy & advocacy at the Pensions and Lifetime Savings Association, expressed her optimism about the appointment, stating it could lead to "progress on both phases of the Pensions Review". The initial phase of the pensions review has been centred around consolidating the UK’s fragmented pensions industry and encouraging schemes to invest in the domestic economy. The deadline for firms to respond to phase 1 was on Thursday. A Government spokesperson said: "Creating wealth and driving growth is at the heart of our Plan for Change. We are determined to ensure that tomorrow’s pensioners are supported, which is why the Government announced the landmark two-stage Pensions Review days after coming into office and why the Pension Schemes Bill was in the King’s Speech." They added: "Automatic Enrolment has turned millions of people into pension savers with around 9-in-10 eligible employees saving for their retirement."

Bank of London appoints former Credit Suisse UK boss Christopher Horne as new CEO

The Bank of London, a fintech 'unicorn' facing challenges, has today appointed the former UK head of Credit Suisse, Christopher Horne, as its new CEO. This move comes as the bank seeks to recover from a series of setbacks and the abrupt departure of its founder last year, as reported by City AM. The digital clearing bank announced that Horne, who previously led the unsuccessful Swiss lender's UK subsidiaries, would assume the role of CEO pending approval from the City regulator. "This is a unique opportunity to redefine what a bank can be — resilient, innovative, and aligned with the evolving needs of our clients and stakeholders," said Horne in a statement. "Together with the talented team at [Bank of London], I look forward to building a future that inspires trust and delivers lasting value." The Bank of London stated that Horne's appointment "highlights the bank’s commitment to innovation, governance, and long-term growth", adding that he would steer the company "into its next phase of growth and transformation". This recruitment marks the latest in a series of remedial actions taken by the firm after it was thrown into chaos last year following the exit of founder Anthony Watson. Days after Watson’s departure, City AM disclosed that the company had been served with a winding-up petition from HMRC over an unpaid tax bill, which it later settled. Shortly thereafter, investor Mangrove Capital spearheaded a £42m capital injection into the bank. Mangrove has since spearheaded a turnaround effort, appointing several new members to its board. High-profile figures including Peter Mandelson and Carlyle Group CEO, Harvey Schwarz, exited the board in October. Catherine Brown, chair of the firm’s UK Board, commented on Horne’s appointment today, stating it "reflects our commitment to building a leadership team that embodies excellence and vision". She added: "His wealth of experience will be instrumental in driving operational excellence and positioning the bank as a leader in the financial services sector."

ECB and Fed rate decisions to underscore economic divergence between Europe and the US

Markets are gearing up for a busy week as they anticipate central bank announcements, with interest rate decisions due from both the US Federal Reserve and the European Central Bank (ECB). The upcoming decisions are set to underscore the divergent economic perspectives between the two regions, with the ECB likely to slash borrowing costs for the fifth consecutive time, while the Fed is expected to maintain rates, as reported by City AM. In December, the Federal Open Market Committee (FOMC) trimmed rates by 25 basis points and indicated that only two rate cuts would occur in 2025. However, investor expectations for further rate reductions in the US have moderated in recent weeks, despite ongoing progress on inflation. This shift in sentiment is attributed to concerns about the inflationary effects of Donald Trump's economic policies and the persistent robustness of the US economy. "We expect the strength of the economy and uncertainty over immigration and trade policy to prompt the Fed to pause its easing cycle," commented Bradley Saunders, North America economist at Capital Economics. Data released the day after the Fed's meeting is projected to reveal that the US economy expanded at an annualised rate of 2.7 percent in the fourth quarter. Considering these factors, most traders are now predicting just one rate cut, with some even speculating that the Fed might increase rates again in the near future. Chair Jerome Powell is expected to face numerous questions about the outlook for rates in his upcoming press conference, especially considering President Trump's insistence on lower interest rates. BNP Paribas analysts predict that Powell will also be questioned about the "tail risk of rate hikes." They anticipate a cautious response from him, suggesting rate hikes are less likely but could be considered if necessary to ensure a soft landing for inflation and growth. This contrasts sharply with the economic outlook for the ECB. ING's global head of macro, Carsten Brzeski, believes a rate cut is a "no-brainer" given the weak growth outlook. Despite the ECB cutting rates four times in 2024, bringing the benchmark interest rate down to three per cent, Brzeski argues this is still too high. He stated: "The deposit interest rate is still restrictive and too restrictive for the eurozone economy’s current weak state," Economic growth figures due on Thursday are predicted to show a mere 0.1 per cent increase in the fourth quarter, significantly weaker than the US. The IMF's latest forecasts suggest that the US will grow by 1.9 per cent next year, while the euro area will only grow by 1.0 per cent. Given such a weak growth outlook, traders are anticipating four or five rate cuts from the ECB this year, despite some signs of building inflationary pressures.