Home Money MARKET REPORT: Banking stocks fall on fears of Starmer tax raid

MARKET REPORT: Banking stocks fall on fears of Starmer tax raid

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Fiscal raid: As the Government races to find a way to sort out the public finances, Prime Minister Sir Keir Starmer has warned that the Budget at the end of October will be

Shares in several listed British banks fell amid fears of a windfall tax.

As the government looks to get its finances in order, Prime Minister Sir Keir Starmer has warned that the Budget at the end of October will be “painful”.

He said those “with the broadest shoulders should bear the heaviest burden”, raising fears of an assault on banks’ fat profits from rising interest rates.

NatWest fell 3.3 percent, or 11.4 pence, to 338 pence, while Lloyds lost 1.7 percent, or 1.02 pence, to 58.18 pence and Barclays fell 2.7 percent, or 6.3 pence, to 223.9 pence.

Fiscal raid: As the Government races to find a way to sort out the public finances, Prime Minister Sir Keir Starmer has warned that the Budget at the end of October will be “painful”

It has offered the worst of both worlds: a financially driven franchise on a journey toward self-destruction.

Norwegian oil giant Equinor may reconsider investing in the UK if Labour raises taxes on the industry, a comment that weighed on North Sea producers, with Ithaca Energy falling 1.7 percent, or 2.2 pence, to 130.8 pence, while Harbour Energy shed 1.1 percent, or 3.3 pence, to 300 pence.

London mining companies also fell as concerns about weaker demand from China weighed on metal prices.

Antofagasta fell 6 percent, or 114 pence, to 1,796.5 pence, Anglo American fell 1.9 percent, or 44 pence, to 2,235 pence and Rio Tinto fell 1.2 percent, or 56.5 pence, to 4,757.5 pence.

Hochschild Mining has warned that production has been delayed at its new gold mine in Brazil, which began commercial production in mid-May, due to mechanical problems.

Despite this, total production is still expected to be in the range of 343,000 to 360,000 gold equivalent ounces this year.

Stock Monitoring – Focusrite

1724902791 543 MARKET REPORT Banking stocks fall on fears of Starmer

Music company Focusrite has warned that costs caused by the disruptions in the Red Sea will hit its profits.

The group, which sells speakers, microphones and audio mixers, expects to make around £25m in profit in the year to the end of August.

This would be below its previous forecast of between £27m and £30m.

The downgrade was due to shipping and logistics challenges the company faced.

Shares fell 15.2 percent, or 53 pence, to 295 pence.

Hochschild, which also has mines in Peru and Argentina, fell 8.4 percent, or 16.2 pence, to 177.8 pence.

In the broader market, the FTSE 100 fell 0.02 per cent, or 1.61 points, to 8,343.85 yesterday, while the FTSE 250 was down 0.5 per cent, or 95.2 points, at 21,066.87.

GSK made progress after Delaware’s highest court said it will hear an appeal from the pharmaceutical giant and rival drugmakers over an anti-heartburn medication.

There are more than 70,000 lawsuits claiming the drug Zantac caused cancer.

Elsewhere, GSK reported positive progress in its drug pipeline in Japan, with its shares up 2.1 percent, or 33.5 pence, at 1,651.5 pence.

Drug developer Puretech Health could receive huge payouts if US regulators approve a treatment made by Karuna Therapeutics, which it founded in 2009 and then sold to Bristol Myers in March for £11bn.

Its schizophrenia treatment could be approved for use as early as next month, potentially earning Puretech up to 303 million pounds. Shares rose 2.8 percent, or 4.6 pence, to 169.6 pence.

Mike Ashley’s fashion empire is hoping a strategic investment will help expand its presence in Australia and New Zealand.

Frasers, owner of Sports Direct, Jack Wills and Flannels, bought a 14.65 per cent stake in premium retailer Accent but it fell 0.9 per cent, or 7.5p, to 850p.

Retailer Kingfisher fell 1.2 per cent, or 3.5 pence, to 283.3 pence after analysts at Citi downgraded the Screwfix and B&Q owner to neutral from buy.

And Wood Group is about to sell two businesses for around £125m.

The engineering and consultancy firm is looking to shed divisions it no longer considers essential. Shares rose 0.1 percent, or 0.1 pence, to 133.6 pence.

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