Welcome to HSA Advisory‘s Financial Services Newsletter, your comprehensive guide to the latest developments in the UK macroeconomics and key financial services deals
UK markets navigated a turbulent week as the Bank of England held interest rates at 4% while slowing the pace of its quantitative tightening programme, cutting its gilt rundown target to £70bn from £100bn. Despite easing pressure on bond markets, long-dated yields remain elevated, reflecting concerns over the government’s rising borrowing needs. Meanwhile, inflation held steady at 3.8%, food prices continued to climb, and retail sales edged up just 0.5%, underlining fragile consumer demand
On the fiscal front, borrowing in August surged to £18bn, the highest for the month in five years, forcing Chancellor Rachel Reeves into difficult trade-offs ahead of November’s Budget. Analysts warn she may need to raise £20–28bn through stealth taxes and targeted levies to meet her fiscal rules while addressing record economic inactivity
In financial services, deal activity remained resilient:
→ Howden expands into the US entertainment sector with a specialist broker acquisition
→ Radian makes a $1.7bn move for Lloyd’s syndicate Inigo, pivoting into specialty lines
→ Clear Group strengthens compliance capabilities with the acquisition of Delco Safety
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