Does the financial future develop in London?

In this report by the Exchange newsletter in the UK this week. How is what you see? You can subscribe Here.

Most recently prices in the UK rose 3.6% for the year before June 2025compared to Increase by 2.7% in the US Now the Bank of England expects that inflation will be 4% in September, only by the mid -2027 returns up to 2%.

When I moved to New York, after the Brexit referendum, it was a year and a half. All these years later, and Brexit continues to dominate the discussions.

In conversations with heads and business executives, I hear Brexit by the economy, especially through trade barriers, increased border costs and decreased productivity compared to staying in the European Union.

It is equally more and more about the fact that London’s reputation as the leading World Financial Center is, as it is struggling to compete with New York, Hong Kong and Frankfurt.

Fundraising from the initial public sentences in London, meanwhile collapsed to its Low level at least 30 yearsAccording to Dealogic, the UK’s stock markets lose their appeal.

Bank Governor Andrew Bailey told me last week Such an uncertainty of business in the country remains very high after I asked about the effectiveness of reducing the interest rate of the Central Bank.

“There is a much higher level of uncertainty, and given that many investment decisions are irreversible as soon as we take them, so the expectation price is increasing, and it happens,” he said.

Another hot theme in London in recent months has been Changes in the so -called tax rules that are not tax For wealthy foreigners.

Real Estate market in London Particularly affected by uncertainty, according to the Property Rightmove website, which called the confusion around the rules of both the reasons for the decline of buyers – both domestic and foreign – on the housing market as the home prices fall.

As long as there is an increase in inflation, the Bank of England reduce interest rates this month. The Bank’s Country Policy Committee has led the progress to disinflation at the main prices in the last couple of years, since the main IPC and inflation of the service remain equal, emphasizing the decline in wages.

Low interest rates can help push consumption and investment, as well as help return the real estate market. In the second half of the year, more accessible mortgage loans can allow more parity between buyers and sellers.

When it comes to Brexit, the investment in the UK’s business stopped after the vote to leave the block in 2016. However, there were signs of recovery with a focus on certain sectors such as technology and pharmaceuticals. The UK is looking for new trades on the EU borders, including with Australia. New Zealand and India – And of course US.

In fact, the UK’s trade transaction with President Donald Trump – though worse than during his first term – is still better than the EU agreement with the US

London Accountants and Business Advisers Lubbock Fine noted that the UK’s significant tariff advantage could benefit the country as an EU production center, seeing they are moving to the UK

However, when it comes to restoring London’s reputation as a power plant in financial services, it is necessary to do a lot of work.

The main thing is to entail politicians who create an environment that promotes business.

In my recent conversation with Anthony Jenkins, a former Barclays CEO, he stressed the need to attract capital access to startups and minimize business costs.

It was positively treated for reforms that are implemented to stimulate more investment in the private sector and interested in reorienting the NDD tax loan into enterprises with great growth. But in the end, Jenkins says it is more attention to growth policy to increase GDP per capita and attract entrepreneurial talent.

“Let’s see that the UK has many attractive things we have on the market worldwide in things such as financial services, technology, AI, creative Industries, and the UK – a great place for life, so we have all these forces,” he said.

“What we need to do is strengthen other things that will make this place more attractive to business.”

– ritika gupta

Tesla Elon Musk launches an application for electricity supply by British households. A company based in Texas formally filed a request for a license for electricity to the British energy regulator late last month.

The government does not recognize this, but taxes are taxable – and there are no good options. British Prime Minister Keira St. Tax will be required in the fallBut he said he “did not recognize” the figures. However, he refused to exclude VAT hike, income tax and corporation tax.

The head of the Bank of England says he does not break with the UK government, as the revolut license delay is conducting close attention. Resolution Revolut as a fully licensed bank It became an important issue for the UK government, in particular, as key data in the technological area dispute the tax changes that affect the wealthy.

– Holly Elitt

UK FTSE 100 Over the last 7 days on Tuesday, the week was muted, slipping by 0.1%.

After jumping in July (if it grew more than 4%), the index seems to put legs in August – like many traders – after uncertainty and accompanying volatility around Trump.

SterlingMeanwhile, the dollar rose last week. It traded 0.6% above $ 1.3517 at the end of Tuesday after jobs in the UK – which showed cooling the job market in the UK, but strong wages – and American inflation figureswho sent the dollar below.

UK government bond yields were also above, with A 10-year yield Trade on Tuesday about 4.626%.

– Catherine Bishop