Business news live: Contactless card payments £100 cap could be scrapped and interest rates cut unlikely

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 come back too as common alongside the way in which, with Primark’s proprietor offering an replace this morning.

The dad or mum agency of Primark has mentioned the retail chain noticed buying and selling enhance in latest 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 12 months 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 probably used to paying for issues in contactless style: 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 principles) have proposed a change which may come into play in only a few months, whereby your financial institution will as an alternative set the cardboard contactless restrict – which implies it may in principle be restrictmuch less.

That may match paying by gadget, regardless that virtually 4 in 5 (78%) of shoppers mentioned they didn’t need 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 professional has detailed how binning the contactless pay cap is meant to assist us spend extra, and extra rapidly… to assist the financial system after all.

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 moderately 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 continues to be on them to verify if it’s an enormous cost or an uncommon buy.

“UK retailers could also be hopeful {that a} additional spending enhance may come from an anticipated leisure 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 crimson tape bonfire to attempt to cut back monetary regulation and pace up development. The thought is that will probably be extra environment friendly for retailers and prospects 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 may 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 means, when flagged to a financial institution.

“It’s the retailers who in the end pay the value 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 massive funds, with out further checks.’”

Housebuilder Vistry has seen half-year income greater than halve as purchaser demand comes underneath stress 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 Properties group – mentioned its ahead order e-book was decrease than a 12 months in the past, standing at £4.3 billion towards £5.1 billion this time final 12 months.

It mentioned it was seeking 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 – could not vote to chop rates of interest under 4% for the remainder of 2025.

Increased inflation, an unsure jobs market and the prospect of taxes within the Funds imply many have altered their expectations, with it beforehand anticipated the MPC would proceed with this 12 months’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 moderately than the beforehand anticipated November.

Sticking with rates of interest, earlier this week, Barclays analysts mentioned in a analysis notice 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 expect that steadiness continues to tip to a 25bp minimize.”

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

The notice additionally factors to Rachel Reeves’ massive subject:

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

Friday’s July GDP launch is predicted to come back out to point out 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 thus far 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 capturing down Russian drones that violated its airspace. Geopolitical issues have been entrance and centre for a number of years, and traders had been hoping for tensions to ease.

“Oracle shares soared amid optimism about AI-related income, sending a powerful message to the broader market that the tech revolution continues to be crimson scorching. 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 Alternate may get an actual enhance with 11 new companies seeking to listing on it.

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

Magnificence Tech Group introduced their intention to affix the LSE this week, with tech agency Visma one of many high-profile names aiming to go public subsequent 12 months.

Solely seven firms have carried out so in London this 12 months thus far – the worst in virtually three many years, says the FT.