Production volumes and turnover have jumped at Nissan's Sunderland factory, but a reorganisation of the business has seen it take on more costs. New accounts for Nissan Motor Manufacturing (UK) Limited show 325,000 cars rolled off the production line at the Wearside plant in 2024, compared with 260,000 the year before. Clearing disruption from worldwide semiconductor chip shortages over recent years was said to have helped the factory ramp up numbers with the Qashqai remaining the brand's biggest seller and one of the UK's top 10 models, of which 199,000 left for UK and European showrooms. Turnover was boosted from £5.03bn to £7.35bn in the year to the end of March 2024, as cost of sales crept up from £4.67bn to £6.92bn. But the plant swung to a loss during the year - recording an operating loss of £41.2m, from an operating profit of £49.4m a year earlier. Bosses said the losses had partly been caused by provisions for supplier claims amounting to £214m - including costs associated with onsite supplier activity and where there had been unforeseen changes to production schedules, along with price inflation. An internal shake-up of how Nissan is organised has also given the Sunderland plant a new status within the global group, making it liable for vehicle warranty costs where defects may have cropped up in the first three years or 100,000km of the vehicles it makes. The changes are said to have given the company more importance and prominence within the Japanese group. Staffing levels also increased during the year - with headcount reaching nearly 7,000. That was said to have been driven by the increased production volumes and additional design staff needed for future electric vehicle projects. The Sunderland plant is preparing to start making the third generation Leaf later this year, with new look Juke and Qashqai models revealed during last year. In recent weeks, Nissan issued images of a trio of models - including the third generation Leaf, as well as an all-electric Juke and the return of the Micra - which it hopes will do well in the European market. Results for Nissan's Sunderland operation, which has been there since the mid 1980s, are set against a challenging time for the Japanese multinational, which has been facing falling sales, financial challenges and a botched merger attempt with rivals Honda. Those difficulties have prompted a major restructuring of the business including slashing production and plans to shut three plants, including one in Thailand and two, as yet, unidentified.
ShareResizeHelen Watson will hand the reins of Rothschild's UK wealth business to current deputy UK CEO James MorrellWant the latest news from FN? Just follow us on WhatsApp hereRothschild & Co has chosen a successor for UK wealth head Helen Watson as she moves to chair of the business.
Mortgage rateshave remained stubbornly high: hovering at more than 6%, well above the sub-3% rates during the pandemic. That makes homeownership increasingly unaffordable for many Americans, as home prices have risen more than 50% since 2020.During the pandemic, home buyers got accustomed to sub-3% mortgage rates, which made purchasing a house feel more achievable. But in the past couple of years, buyers have had no such luck.Recommended VideoIn late 2023, mortgage rates peaked at 8%. They’ve let up some, today’s 30-year fixed mortgage rate is 6.19%, according to Mortgage News Daily, but economists and real-estate groups have warned they don’t see that figure budging much in the near future. And to make matters worse, some have said the mortgage rate it would take to make homes feel affordable again isn’t achievable. This summer, Zillow economic analyst Anushna Prakash reported mortgage rates would need to drop to 4.43% for a typical home to be affordable to an average buyer. But “that kind of a rate decline is currently unrealistic,” Prakash wrote. Meanwhile, not even a 0% interest rate would make a typical home affordable in New York, Los Angeles, Miami, San Francisco, San Diego, or San Jose, she added. Warren Buffett’s Berkshire Hathaway HomeServices also said in an early July report mortgage rates are one of the main deterrents for both home buyers and sellers.“Many homeowners are reluctant [to] put their homes on the market and give up the low mortgage rates they already have,” according to Berkshire Hathaway HomeServices. “To them, high price gains won’t mitigate their ability to pay more for another home at significantly higher interest rates.”This issue is also referred to as golden handcuffs—or the locked-in mortgage rate effect. The idea is that current homeowners have no incentive to put their homes on the market, even if they want to move, because they’d forgo a much lower mortgage rate they had locked in years ago. This causes a litany of other problems in the housing market, namely inventory.The homebuilder unsold completed inventory recently hit a 16-year high, according to ResiClub, and data from real estate intelligence platform Parcl Labs shows the number of active listings on the market this summer rose to 3.06 million, a 4.9% increase from the same time last year. Meanwhile, more sellers delisting their properties after sitting on the market for longer than expected.“Homes are sitting on the market nearly three weeks longer than last year,” Realtor.com Senior Economist Jake Krimmel recently toldFortune. “That’s a sign of sellers still anchored to pandemic-era prices even though the market is telling them otherwise.” That doesn’t mean there’s an influx of housing in the U.S.; in fact, we’re still short millions of units. It just means there aren’t enough people who can actually afford to buy a home.The factors influencing housing affordabilityAlthough inventory levels are increasing, home prices and mortgage rates continue to be a roadblock for potential home buyers. Mortgage rates have remained “stubbornly high,” Berkshire Hathaway HomeServices said, deterring new buyers from the market.According to an October Realtor.com report, the typical home spent 62 days on the market in July, roughly as long as it took to sell before the pandemic.Mortgage rates are certainly a factor among buyers when deciding to make an offer, and home prices are also up more than 50% since the onset of the pandemic, according to the U.S. Case-Shiller Home Price Index.All the while, wages haven’t grown at the same pace as home appreciation, making buying a house feel even more unaffordable. And if nothing changes like mortgage rates, inventory, or wage growth, it’s likely the housing affordability crisis in the U.S. will persist, Alexandra Gupta, a real-estate broker with The Corcoran Group, toldFortune.“Some first-time buyers are turning to long-term renting or even co-living models because the idea of owning a home has become so out of reach. Others are relying more on family support to get into the market,” Gupta said. “We’re seeing a reshaping of the housing ladder.”The small glimmer of hope, though, is home price growth appears to be slowing, according to the Case-Shiller indices.“With affordability still stretched and inventory constrained, national home prices are holding steady, but barely,” Nicholas Godec, head of fixed-income tradables and commodities at S&P Dow Jones Indices, said in a statement.A version of this story originally published on Fortune.com on July 31, 2025.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
ShareResizeListen(2 min)Photo: Getty ImagesA year ago this month,Financial Newsstarted covering the wealth management sector. The rationale remains clear: demographic and technological shifts are upending the sector, which has had a huge impact on dealmaking, regulation and more.We’ve been thrilled with the response from our readers so far. But we’re not done yet.To mark the anniversary, we’re publishing a whole host of exclusive news, interviews and features to get your teeth into.We’ve gone inside the collapse of Schroders Personal Wealth, interviewed the new head of Rathbones’ wealth business, scooped a corporate bond push at RBC, taken a deep dive into private assets, and asked top bankers and lawyers for their M&A predictions.We’ve also asked some of the biggest names in the sector to chip in with op-eds on everything from private equity’s pursuit of the sector to the impact of AI and the race for global wealth.Remember: you’ll need a subscription to read it all. If your company doesn’t already have one, you can request a trial by emailing licensing@fnlondon.com.And to make sure you don’t miss out on even more must-reads, subscribe to our wealth management newsletter here.Thanks again for the support so far, and happy reading.Write toJustin Cash at justin.cash@dowjones.com and Kristen McGachey at kristen.mcgachey@dowjones.com
New York City Mayor-elect Zohran Mamdani swept to victory Tuesday evening on a platform of affordability, anchored by a plan to freeze rents across nearly 2 million rent-stabilized apartments. Recommended VideoBut economists, universally, hate rent control. In a 2012 poll of top economists, just 2% agreed that rent-control laws have had “a positive impact” on the supply and quality of affordable housing. The Nobel laureate Richard Thaler even quipped in the survey that the next question should be: “Does the sun revolve around the Earth?”Why do economists revile a plan that seems to promote fairness and equity in a housing market that is clearly broken? Seductive simplicityTo most voters, freezing rents looks like common sense: If prices are out of reach, stop them from rising. But to economists, that’s like treating a fever by breaking the thermometer: It suppresses the symptom without curing the disease, the persistent shortage of housing.“Freezing rents doesn’t fix scarcity,” said David Sims, a Brigham Young University economist whose research on Massachusetts rent control remains a touchstone. “It just reshuffles who bears the cost.”Sims’s work examined the rent-control regime that once governed Cambridge, Mass., where tenants could stay indefinitely at below-market rents. The policy was meant to keep housing affordable, but it led to what he calls misallocation. “People who could do better by moving tend to stay,” he toldFortune. “Older households hang on to large units they no longer need, while young families can’t find space. Over time, you end up with the wrong people in the wrong apartments.”When Massachusetts voters repealed rent control in 1994, property values in Cambridge rose 45%—not only for the deregulated apartments, but for entire neighborhoods. It turned out that years of capped rents had discouraged investment and dragged down surrounding property values, meaning that when controls were finally removed, landlords were empowered to upgrade and renovate their apartments. Neighborhoods that had been frozen along with the rents suddenly seemed to revitalize. That dynamic is already visible in New York. According to the city’s Housing and Vacancy Survey, roughly 26,000 rent-stabilized apartments are sitting empty, many uninhabitable because renovation costs far exceed what landlords can legally recover. The state’s 2019 Housing Stability and Tenant Protection Act caps recoverable renovation expenses at $50,000 spread over 15 years. Rehabilitating a century-old tenement can cost twice that, leaving owners little incentive to do anything but lock the door.Short-term relief, long-term painRent control’s immediate benefits, for current residents, are undeniable. It offers stability to tenants living paycheck-to-paycheck and reduces the risk of displacement. But over the long term, economists argue it functions the same way as throwing sand in the gears of the housing market. Landlords defer maintenance they can’t recoup, new construction slows, and the available housing stock quietly erodes.A 2018 Stanford study led by Rebecca Diamond, one of today’s leading experts in housing markets, found that when San Francisco expanded rent control in the 1990s, the supply of rental housing fell 15% over the next decade. Many landlords converted apartments to condos or owner-occupied housing to escape regulation. The policy helped existing tenants, but ultimately raised market rents citywide and accelerated gentrification, causing the opposite of what policymakers intended.“It’s not about pitying landlords,” Sims said. “It’s about understanding incentives. You can’t expect people to invest in something if they’ll never break even—just like you can’t expect tenants to volunteer to pay more rent.”For economists, the deeper problem with rent freezes is conceptual: They imply that affordability can simply be decreed against the logic of supply and demand. “It creates this belief that the problem can be solved by fiat,” Sims said. “But rents are high because people want to live in New York. The only lasting fix is to make it easier to build more housing that people actually want.”He offers a visceral analogy of market pressures: Black Friday. People don’t wait in line for stores anymore on Black Friday, Sims said, but there was a time when, for a $1,000 TV at $200, there’d be a line around the block at 4 a.m., and only a few lucky people would get the TV.“But housing isn’t like a $200 TV,” Sims observed. “Everyone kind of needs a place to live, but if housing is priced like the $200 TV, then there’s a bunch of people in that line who don’t get it.”That’s the thing about rent control, economists say: It benefits insiders at the expense of outsiders. Over time, it can deepen inequality by keeping younger, lower-income, or newly arrived residents locked out of regulated neighborhoods that effectively become closed clubs.Band-Aid policy in a broken marketSupporters of Mamdani’s plan counter that New York’s crisis is so severe, temporary freezes are a moral necessity. With median rents above $4,000, they argue, the city cannot wait for zoning reforms and construction projects that take years to materialize. But even sympathetic economists warn that without parallel measures to boost supply, a freeze simply defers the reckoning.“If you don’t pair a rent freeze with a credible plan to add housing,” Sims said, “you’re not solving the problem. You’re just pushing off accountability without really solving the underlying problem.”
Car giant JLR has announced a pause in shipments to the United States to tackle "address the new trading terms" imposed by Donald Trump's tariffs. Thursday saw the imposition of a 25% tax on all foreign-made vehicles entering the US, followed by the introduction of a 10% "baseline" tariff on global imports on Saturday morning. JLR, formerly Jaguar Land Rover, is one of many firms worldwide contending with the repercussions of the new trade rules and the resulting market instability. In a statement issued on Saturday, a JLR spokesperson confirmed: "The USA is an important market for JLR's luxury brands. They added, "As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans." Global trade has been significantly impacted following President Trump's declaration of the tariffs at the White House this past Wednesday. The fallout was significant, with the FTSE 100 enduring its worst trading session since the pandemic began on Friday, and comparable downturns affected Wall Street as well. The FTSE 100 saw all but one stock fall, with Rolls-Royce, the banking sector, and mining companies witnessing substantial losses. Prime Minister Sir Keir Starmer has pledged to “do everything necessary” to protect the UK’s national interest after the tariffs were imposed, saying ministers are “ready to use industrial policy” to support businesses. Writing in the Sunday Telegraph, he said “the immediate priority is to keep calm and fight for the best deal”. He said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, and added: “We stand ready to use industrial policy to help shelter British business from the storm.” London's leading stock market index, the FTSE 100, dropped 419.75 points, or 4.95%, to close at 8,054.98 on Friday, marking the largest single-day fall since March 2020 when the index lost more than 600 points in one day. The Dow Jones also took a hit, falling 5.5% on Friday as China matched Mr Trump's tariff rate. Beijing announced it would retaliate with its own 34% tariff on imports of all US products from April 10. Ministers are still striving to secure a deal with the US, hoping that it could provide some exemption from the tariffs. Rachel Reeves stated on Friday that the Government is "determined to get the best deal we can" with Washington.
Barbara Corcoran is renowned for her heart-over-head investment decisions—and for bucking conventional finance wisdom, including proudly not saving a “dime” of her substantial wealth. But she must be doing something right, considering she’s worth about $100 million, and she revealed some keys to her success in real estate.Recommended VideoCorcoran appeared on theBiggerPockets Real Estate Podcastwith her son Tom Higgins to describe two methods she says make up her “golden rule” of real estate investing: putting down 20% on an investment property and having tenants of that property paying for the mortgage.This is the method Corcoran herself used when she borrowed $1,000 from her then-boyfriend to launch her real estate career. After failing at 22 jobs, she said goodbye to her waitressing gig and started a “tiny” real estate office in New York. She ended up selling the Corcoran Group to real estate company NRT for $66 million in 2001, launching her into real estate and business investment stardom. She’s been on the main cast of investors onShark Tanksince its 2009 inception, making deals with more than 100 businesses.The golden rule of real estate investingCorcoran’s method to real estate investing is tried and true.“That has always been my golden rule,” she said. “Buy a property with 20% down. [That] has always been my formula because they used to do with 10%, but it’s not possible anymore. I repeated that formula again and again and again, and then making sure the tenant has paid my mortgage. It’s pretty easy that way.”Putting down 10% instead of 20% can leave a buyer with too high of a monthly payment, a risky move since housing prices and mortgage rates are still elevated. A 20% down payment betters the chance she’ll break even more quickly on a property—and make gains sooner. While that golden rule has worked for Corcoran, other real estate investors warn a one-size-fits-all rule doesn’t always match market conditions.“Each investment protocol is entirely unique and different,” Alex Blackwood, CEO and cofounder of real estate investment platform Mogul Club, toldFortune. “For instance, maybe an investor’s credit score is better so they can take out more with less monthly costs, or maybe interest rates are lower so an investor can increase leverage and still break even.”Breaking even in real estateEven with a strong track record in real estate investing, Corcoran still never expects to make money on her purchases during the first year or two of ownership, she said on the podcast. But breaking even early on—having a tenant cover the mortgage and other monthly costs the owner has—is a good indicator that the investment property will do well. “If I break even, I’m smiling all the way to the bank,” she said. “And then by the second year, third year, New York is a magical place. The value always goes up, and then I start getting a lot of cash. Then I refinance, pull a lot of cash out, refinance, pull cash out. Real estate is magical if done right.”Breaking even in year one helps investors begin profiting in year two, Blackwood agrees. Even though investors may take a short-term hit on a longer-term investment, profitability comes when they can raise the rent, he adds.The “breaking even” golden rule also ties directly to one of real estate’s “underlying principles,” the first of which is leverage, Ian Formigle, former chief investment officer at commercial real estate investing platform CrowdStreet (now a partner at Green Light Development), toldFortune.“Borrowing money to acquire real estate can dramatically amplify the returns to investors, but it can also amplify the risk,” he said. By adhering to Corcoran’s golden rule and getting tenants to cover costs, “you mitigate the leverage risk by generating monthly income through the property. You can also create an opportunity to generate wealth through asset appreciation because well-located real estate can attract more attention and investment over time.”Still, successful real estate investing takes time. During the podcast, Corcoran described a property she bought using her 20% down method, but waited 20 years to sell. She paid $1 million for the property, and sold it for $3.2 million two decades later. Even though this process takes time, Corcoran warns against taking money out of investment properties too soon. “You cripple your business if you start taking money out,” she said. “You want to see how long you can go without touching a dime. That’s what I did.” To make money when she was first getting her start in real estate investing, Corcoran ran her brokerage firm. “I made good money from that,” she added. “But [as for] my buildings, I never looked to it for money until they matured a little bit, and then I started getting a lot of cash out.”A version of this story appeared on Fortune.com on December 5, 2023.More on real estate investing:Buying an investment property: What you should know to get startedNearly 70% of Americans think the economy is on the ‘wrong track’and even more think it’s a bad time to buy a home, Fannie Mae survey showsMillennials and Gen Zers are clamoring to break into the housing market. But this real estate expert says ‘not everyone should be an owner’Did your workplace make our list of the 100 Best Companies to Work For? Explore this year's list.
ShareResizeListen(49 sec)Financial News will be hosting an event for sector leaders as we mark FN Wealth Management’s first birthdayPhoto: Getty ImagesIt will soon be a year sinceFinancial Newsstarted covering wealth management for the first time.Hundreds of you have flocked to our weekly newsletter on the sector. To join them, just click here.You’ll need a subscription to read all of our exclusive news, interviews and in-depth features. To request a free trial, all you have to do is email licensing@efinancialnews.com.To mark our year anniversary, we’ll also be throwing an exclusive event with some of the biggest names in the space. Stay tuned for details.Thanks for your support, and happy reading.
ShareResizeBNP Paribas Wealth Management's boss says buying HSBC's German private bank was 'a very important move', but more deals aren't a priorityPhoto: Antoine DoyenBNP Paribas is taking a hiatus from M&A after scooping up two major businesses for its wealth franchise, according to its chief executive Vincent Lecomte.The French lender inked two mega-deals last year in its investment and protection services division, which spans wealth and asset management.
The American dream of homeownership, long a symbol of stability, achievement, and upward mobility, is facing unprecedented challenges as the median age of the average first-time homebuyer in the United States has soared to 40 years old, according to newly released data from the National Association of Realtors (NAR).Recommended VideoA year ago, the median age was 38 years old, and that’s up from 36 in 2022, 33 in 2020 and 28 in 1991.“It’s kind of a shocking number,” said Jessica Lautz, deputy chief economist and vice president of research at NAR. “And it’s really been in recent years that we’ve seen this steep climb.”This age milestone marks an era where the affordability crisis is fundamentally reshaping the housing landscape and delaying access to the benefits of homeownership for millions of Americans.As ResiClub editor Lance Lambert contextualized it in a statement toFortune, this means the first-time homebuyer in 2025 is “just as close in time to the age when they can begin early Social Security withdrawals (age 62) as they are to their high school graduation (age 18).”The NAR’s 2025 Profile of Home Buyers and Sellers, which surveyed recent home transactions between July 2024 and June 2025, also revealed that first-time buyers now comprise just 21% of all home purchases—a historic low.“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” Lautz said.This steep decline—a contraction of 50% since 2007—has significant ripple effects: not only does it delay or deny wealth accumulation for families, but it also means lost opportunities. NAR estimates a 10-year delay in homeownership could mean losing about $150,000 in equity on a typical starter home over a lifetime.New Barriers for Younger BuyersToday’s first-time homebuyers face arduous financial hurdles. The typical down payment is now 10%, matching the highest level recorded since 1989. Most rely on their personal savings (59%), but a significant contingent is tapping financial assets like 401(k)s and investment accounts (26%), while over one in five are depending on gifts or loans from family or friends (22%). This underscores how entry into homeownership has become less accessible for those without substantial family support or generational wealth.In stark contrast, repeat buyers, whose median age is 62, are better positioned—often wielding equity from previous sales for larger down payments, and 30% can buy homes outright with cash. The result is a bifurcated market, where older, established homeowners find mobility and security, while younger would-be buyers wait longer and risk missing out on key wealth-building years.AsFortunehas reported, this looks like boomers beating millennials in the competition for housing. If you’re 40 years old, you have to compete with someone your parents’ or aunts and uncles’ age for that elusive starter home, in other words.Societal Shifts and Multigenerational TrendsThe NAR profile also shows that only 24% of buyers have children under the age of 18 at home, yet another all-time low. Meanwhile, the share of Americans buying multigenerational homes, where owners care for aging parents and children moving back after college, has dropped to 14% from 17% in 2024.The crisis has brought housing policy to the forefront of the national conversation. Shannon McGahn, NAR executive vice president and chief advocacy officer, stressed the urgent need to address the underlying causes of the affordability crunch, namely the inadequate supply of homes.She called for policies to unlock existing inventory, revitalize underused properties, streamline zoning and permitting barriers, and modernize construction methods to boost affordable, rapid development. Without such action, the dream of homeownership—and the social mobility it promises—may continue to slip further from reach for ordinary Americans.“For generations, access to homeownership has been the primary way Americans build wealth and the cornerstone of the American Dream,” McGahn said.
The impact of Donald Trump's tariffs on Jaguar Land Rover has been brought to light as the luxury car manufacturer detailed its vehicle exports to the US for the first quarter of 2025. The Coventry -based automotive giant reported a 14.4% increase in wholesale volumes in North America during its fourth quarter, as reported by City AM. This information comes following Jaguar Land Rover's announcement over the weekend that it will "pause" shipments to the US while it adjusts to "address the new trading terms" that have arisen as a result of Donald Trump's tariffs. The US administration enforced a 25% tariff on all foreign cars starting Thursday, complemented by a broader "baseline" tariff of 10% on goods imported globally which commenced on Saturday morning. In a statement issued on Saturday, a spokesperson for Jaguar Land Rover commented: "The USA is an important market for Jaguar Land Rover's luxury brands." They added, referencing their response to the tariffs: "As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans." The details of US wholesale figures come ahead of Jaguar Land Rover releasing a comprehensive set of data before its full-year results for the 12 months up to the end of March 2025, which are expected to be announced in May. In its most recent quarter, the group's wholesale volumes, excluding the Chery Jaguar Land Rover China joint venture, reached 111,413 vehicles. This represents a 6.7% increase compared to the previous three months and a 1.1% rise year on year. When compared to the previous year, wholesale volumes in Europe increased by 10.9%, while in the UK they remained flat at 0.8%. However, the group experienced a significant 29.4% decline in China, and overseas sales fell by 8.1%. Retail sales for the fourth quarter, including the Chery Jaguar Land Rover China joint venture, totalled 108,232 vehicles. This is a decrease of 5.1% compared to the same quarter last year but an increase of 1.8% compared to the preceding three months.
A risky mortgage instrument that helped spark the Global Financial Crisis is on the rise, but three things are different this time around.Recommended VideoAdjustable-rate mortgages (ARMs), once the villain of the subprime meltdown, are surging in popularity as homebuyers look for savings in a high-rate era. The share of ARMs reached nearly 13% of all mortgage applications this fall, per the Mortgage Bankers Association, the highest level since 2008.For buyers today, the lure is clear: ARMs offer starting rates about a full percentage point lower than fixed-rate loans, making the difference between buying a home or staying sidelined. The typical 5/1 ARM has an interest rate in the mid-5% range, compared with the 30-year fixed rate’s 6.3% and above. On a $400,000 loan, that initial discount translates into $200 or more in monthly savings, enough to tip the scales for first-time buyers or those seeking a larger property. But every ARM, by definition, is a wager: After the initial fixed period—often five, seven, or 10 years—the interest rate resets, adjusting with the broader market. Today, that means buyers are betting the Federal Reserve will cut rates before their loan recalculates. If the Fed delivers on anticipated rate drops in December, customers could see payments shrink further or at least avoid big jumps when the adjustment arrives.Back in the mid-2000s, adjustable-rate loans contributed to a financial calamity. Easy credit, teaser introductory rates, and lack of oversight meant millions of Americans took out loans with initially low payments, only to see costs soar when interest rates reset. ARMs then accounted for as much as 35% of mortgage originations, fueling both a housing bubble and the crash that followed. Fast-forward to 2025, and some are justifiably anxious at the product’s resurgence.Borrowers aren’t just gambling with their own fortunes, though. This time, banks and regulators have changed the rules. Today’s ARMs come with strict documentation standards, borrower protections, and built-in caps designed to prevent the shock resets that hammered millions of families in the last crisis. Lenders scrutinize income, debt, and credit quality, and loans are calibrated to ensure that, even if rates go up, buyers won’t be caught entirely off guard. Pre-crisis, some ARMs changed rates almost overnight, but most modern loans fix the initial rate for several years and limit increases through legal ceilings.Risks this time aroundStill, the instrument carries risk—especially if the Federal Reserve changes course. If rates rise unexpectedly, those low initial payments can balloon, exerting pressure on household budgets just as the broader economy absorbs the impact.Unlike the pre-crisis era, buyers are appearing to use ARMs as financial tools for specific strategies, rather than gambling on ever-increasing home values. The trend centers on affordability: With 30-year fixed rates still elevated (averaging near 6.3%), ARMs offer an initial fixed period at rates nearly a full percentage point lower, sometimes saving hundreds per month. And the current vogue appears to reflect an educated guess—or a gamble, depending on your position—that interest rates, and therefore mortgage rates, will continue to decline in the near future.Michael Pearson, senior VP of business development at A&D Mortgage, told Realtor.com earlier this month that “the common wisdom is that interest rates will continue to dip lower, slowly over the next couple of years. So although ARMs offer only short-term fixed interest rates, there may be more opportunities to lock into long-term lower rates in the coming years.” For many, this lower payment is seen as a bridge until rates drop, jobs relocate, or life changes; borrowers are actively planning to refinance, move, or pay off loans before the adjustable period kicks in.In high-cost markets, the pressure to choose ARMs is strong. With fixed mortgage rates remaining stubbornly high after years of Fed rate hikes, buyers are willing to roll the dice on interest rates. Some see ARMs as the only path to homeownership, wagering that central bankers will cut rates as inflation cools off. The harsh reality is that prospective homeowners don’t have much of a choice. A recent Redfin analysis found that America hasn’t been this stuck in terms of housing mobility for at least 30 years, with just roughly 28 out of every 1,000 homes changing hands between January and September. “It’s not healthy for the economy that people are staying put,” said Daryl Fairweather, chief economist at Redfin. The so-called home sales turnover rate through the first nine months of this year is down about 30% from the average rate over the same time periods between 2012 and 2022. Ultimately, the surge in ARM loans is both a sign of tight economic times and renewed risk-taking. While regulatory guardrails may prevent the kind of crash seen in 2008, the outcome for individual borrowers still depends on what the Fed does—and whether buyers truly understand the gamble they’re taking. For now, a controversial loan product is back in the spotlight, and the housing market is holding its breath for the next move from the central bank.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
President Donald Trump played down the significance of his proposed 50-year mortgage plan in a recent interview, calling it “not even a big deal… it might help a little bit,” during a segment on Fox News with Laura Ingraham. The idea, which aims to extend mortgage terms for Americans, has triggered a wave of criticism across the political spectrum, as Ingraham noted, with some labeling it a financial trap for homebuyers and a windfall for banks.Recommended VideoIn the interview aired onThe Ingraham Angle, the Fox host pressed Trump on the impact of his housing proposals, including the much-discussed 50-year mortgage concept. Housing costs, Ingraham noted, are pushing the average age of first-time buyers to 40—“sad for the country,” she remarked. Trump defended the policy by saying he “inherited” the predicament and characterized the shift from traditional 30-year to potential 50-year mortgages as minor: “It’s not even a big deal … all it means is you pay less per month, you pay it over a longer period of time. It’s not, like, a big factor. It might help a little bit,” Trump insisted.Trump’s housing director, Bill Pulte, was much more positive on the idea’s impact. “Thanks to President Trump, we are indeed working on The 50-year Mortgage – a complete game changer,” the Federal Housing Finance Agency Director Bill Pulte said Saturday in a statement released on social media.Trump further argued that the more pressing issue was the spike in interest rates, blaming President Biden and Federal Reserve Chair Jerome Powell—whom he referred to as “Too Late”—for sluggish responsiveness. Trump assured viewers that interest rates would come down, but defended the overall strength of the economy under his stewardship: “Even with interest rates up, the economy is the strongest it’s ever been,” he asserted.Ingraham raised the issue of people saying they have significant anxiety about the economy in the electorate, and Trump pushed back. “I don’t know that they are saying that. We’ve got the greatest economy that we’ve ever had.”Ingraham and critics push backThe plan didn’t escape harsh scrutiny, including from Ingraham herself. She pointed out that the backlash wasn’t coming just from Democrats but also from within Trump’s own base, who characterize extended mortgages as giveaways to banks and mortgage lenders. She said Trump’s base was “enraged” and asked him about a “significant MAGA backlash, calling it a giveaway to the banks and simply prolonging the time it would take for Americans to own a home outright. Is that really a good idea?” Ingraham asked.On social media and in public statements, several Republican figures lashed out at the proposal. Rep. Thomas Massie (R-KY) compared the idea to having no real ownership at all, asking, “How is ‘here, enjoy this 50 year mortgage’ different from ‘you will own nothing and you will like it?’” Rep. Marjorie Taylor Greene (R-GA) worried the plan would “ultimately reward the banks, mortgage lenders and homebuilders while people pay far more in interest over time and die before they ever pay off their home. In debt forever, in debt for life!”Conservative media voices echoed these concerns. Glenn Beck described the plan as “almost like… ‘you will own nothing and be happy.'”Bloomberg Opinion’s Allison Schrager, on the other hand, wrote on Tuesday that it’s a good idea, with the market clearly expressing a need for something like the 50-year mortgage to exist. It’s “not a terrible idea,” she wrote, adding that while people who sell their homes before their mortgage matures will get less value, “that may be a worthwhile tradeoff for someone who needs or wants a lower monthly payment.” Still, she added she’s concerned it will be difficult to price and she still has some deep concerns about the idea.
ShareResizePhoto: Timon Schneider/Getty ImagesThis is an online version of Financial News’s wealth management newsletter. To subscribe click hereThis week has felt like the end of an era for several titans of wealth management.
The luxury car giant behind Jaguar and Range Rover says it is confident its business will be “resilient” despite Donald Trump’s new 25% tariffs on automobiles. The US president has imposed a 10% tariff on US imports of UK goods, rising to 25% for cars. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), called the news “deeply disappointing and potentially damaging”. The USA is a key market for JLR, formerly Jaguar Land Rover. Last year JLR chose Miami Art Week to launch its Type 00 Jaguar concept vehicle. The car was designed with a theme of “Exuberant Modernism” and the company says it is “a concept with bold forms and exuberant proportions to inspire future Jaguars”. JLR’s North American business is based in Mahwah, New Jersey, and its LinkedIn page says the company “is represented by more than 330 retail outlets”. Analysis this week from the Institute for Public Policy Research (IPPR) showed more than 25,000 direct jobs in the UK car manufacturing industry could be at risk under the new tariff regime as exports fall. And the IPPR said employees at Jaguar Land Rover and Mini were set to be among the most exposed. In a statement, JLR said: “Our luxury brands have global appeal and our business is resilient, accustomed to changing market conditions. Our priorities now are delivering for our clients around the world and addressing these new US trading terms.” In January, JLR posted a pre-tax profit of £523m for the final three months of 2024, down from the £627m reported during the same period in 2023, as reported by City AM. But its pre-tax profit for the 12 months to date stood at £1.6bn, a 7% year-on-year increase. Also in January, JLR said it was investing millions of pounds in new paint facilities at its Castle Bromwich site to help it meet demand for personalised luxury vehicle, where customers pick from hundreds of bespoke paint options across its Range Rover and Range Rover Sport models In September, JLR announced plans for a £500m investment at its Halewood factory in Merseyside to turn it into the “electric vehicle factory of the future”. Mike Hawes from the SMMT said: “The announced imposition of a 10% tariff on all UK products exported to the US, whilst less than other major economies, is another deeply disappointing and potentially damaging measure. “Our cars were already set to attract a punitive 25% tariff overnight and other automotive products are now set to be impacted immediately. “While we hope a deal between the UK and US can still be negotiated, this is yet another challenge to a sector already facing multiple headwinds. “These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand. 15 stunning pictures of Jaguar's new electric vehicle as Type 00 is launched in Miami “Trade discussions must continue at pace, therefore, and we urge all parties to continue to negotiate and deliver solutions which support jobs, consumer demand and economic growth across both sides of the Atlantic.” Dr Jonathan Owens, operations and supply chain expert at the University of Salford, said: “While the tax on parts might not take effect until May, the new US tariff import policy imposing a global 25% tax on fully assembled and saleable vehicles has already begun. For vehicles already in the supply chain to the US from the UK and other global destinations, automotive manufacturers will probably have to take the hit short-term for the increases as the price negotiations have been completed. “However, if the global US tariff becomes a permanent fixture by the Trump administration, automotive companies will not be able to carry the long-term burden of the increased costs. This will become more noticeable when the tariff tax is expanded to the parts supply chain. The assembly of a vehicle requires parts coming into a centralised manufacturing plant, however there will also be decentralised smaller plants and suppliers offering specialised services. Subsequently, component parts in the assembly may cross multiple borders accumulating tariff costs. So, when the tariff on parts takes place, it will only further increase the cost of the vehicle. “We should also consider this was attempted in Trump’s first presidential office to protect US steel jobs, with a 25% global tariff on imported steel. However, this resulted in a lower job tally of 80,000, compared to the 84,000 it had been in 2018. “Will it last and is the UK right not to retaliate immediately? The US public will not be isolated to these increases due to the supply chains. If US manufacturers are to bring everything in-house, it would take many years and not everything can be sourced within the US. The US citizen could soon find the price of locally made cars increasing and the option to buy cheaper imports has also become too expensive. The situation is far from ideal for a nation who like their cars.”
ShareResizeBarclays private bank and wealth management chief executive Sasha Wiggins says government’s flagship campaign ‘will help make investing an everyday reality for more people’.Barclays’ wealth boss Sasha Wiggins has been selected to chair chancellor Rachel Reeves’ new retail investment campaign.Wiggins, who is chief executive of Barclays’ private bank and wealth management business, will spearhead the government’s flagship initiative, which aims to unlock greater investment in the UK economy.
Flooring manufacturer Airea says investment into its factory capabilities is expected to bring benefits in the third quarter, following strong sales growth but a fall in profits. The carpet tile specialist which owns the Burmatex brand saw 6% sales growth in the second half of 2024, despite a weaker first half in which bosses say announcement of the General Election had brought about cancellations in key public sector work. Full year revenue was up 0.6% to £21.2m and operating profit before valuation gain was down from £1.8m to £700,000, having been impacted by £900,000 worth of costs associated with investment. Airea has been implementing a £5m overhaul of its factory set-up with the introduction of new equipment, including robotics. The work has impacted the AIM-listed firm's bottom line in the short term, but CEO Médéric Payne told BusinessLive he was eager to get the systems running - as commissioning of the equipment could start from June. In full year 2024 results, investors were told of momentum behind the business - and were given a final dividend of 60p per share, up from 55p per share in 2023 and the fourth consecutive year of dividend growth. Airea has said it is well placed for future profitable growth. Asked about markets the firm is looking to grow in, Mr Payne said: "We're doing a bit more in hospitality than we have done traditionally - so that's encouraging. And we're doing a lot more on white label and selling to other manufacturers who want our product but under their brand or credentials. "Some of those are new customers who are wanting to purchase more locally, rather than far away, overseas, and where they've got more control over supply chain. And also, our capabilities are such that we are prepared to do it now." He added: "Bearing in mind, having just done this investment into the factory, and having doubled capacity, we also need to be able to increase - and 'feed the monster' as I say in the office - and to make sure we have enough orders to make sure the investment was worthwhile." In January, post year end, Airea launched a showroom and warehouse operation in Dubai - which Mr Payne said signalled where the business saw growth opportunities. That facility is intended not only as a gateway to Middle East work but also further afield, with the company having identified Dubai as hub to host clients from markets such as Africa. Within the results, chairman Martin Toogood said: "The group was pleased with the positive momentum in the second half of the year. This encouraging performance was delivered despite the ongoing global economic and geopolitical challenges. "We made further progress in expanding our sustainable portfolio with the launch of several carbon-neutral products both in the UK and in our key target overseas markets. The opening of the group's new showroom in Dubai in January 2025 is another example of our investment for future growth. This will operate as a strategic hub to drive sales across the GCC, MEA regions and India.
Sir Keir Starmer has said "all options are on the table" with regard to Scunthorpe steelworks, following Chinese owner Jingye's decision to launch a consultation on its closure. Shuttering of the British Steel plant's blast furnaces could mark the end of virgin steelmaking in the UK which has brought pressure on the Government to act in the face of thousands of job losses. The facility is said to be days away from running out of materials after Jingye initially indicated that closure. Speaking at the Commons Liaison Committee, the Prime Minister said he understood the importance of the plant. He said: "Therefore we will keep talking. We have made an offer, but all options are on the table in relation to Scunthorpe. I think it’s really important and we’re in the middle of those discussions.” Asked what he meant by “all options”, Sir Keir replied: “I don’t want to be unhelpful to the committee, but as you can imagine these are ongoing discussions at the moment. I can reassure the committee that we’re doing everything we can to ensure there is a bright future for Scunthorpe . "But as to precisely where we’ve got to in those talks, I will very happily provide you with further details as soon as I can." Jingye cited high environment costs, the impact of tariffs and a challenging market when it announced the consultation on Scunthorpe. It claimed to have invested more than £1.2bn in British Steel since it took control in 2020, and pointed to £700,000 per day losses. Industry Minister Sarah Jones sought to reassure the steel industry in advance of the first payments from an energy cost relief scheme due to come in next month. The Network Charging Compensation scheme payments are expected to give businesses more than £15m of relief in May and more than £300m during 2025. Ms Jones said: “We know this is a concerning time for our steel industry in the face of global challenges. That’s why we’re working in lockstep with industry to drive forward our steel plan so it can help the sector secure jobs, deliver growth and power the modern economy.
A quaint, 37-home neighborhood an hour from Miami is attracting moneyed residents, including actor Mark Wahlberg, despite not having a private golf club or coastline—instead its major selling point is privacy and a well-trained security staff of former military and police.Recommended VideoStone Creek Ranch, located in Delray Beach, Fla., is one of the hottest new neighborhoods for the ultra rich, but it didn’t always start out that way. The development was first created in the early 2000s a stone’s throw away from the marshy land of the Arthur R. Marshal Loxahatchee National Wildlife Refuge.Senada Adžem, the executive director of luxury sales at Douglas Elliman, said before she started selling homes in the development, prices averaged around $6 million.Adžem broke the mold when she put a house up for sale in the neighborhood for $20 million in 2018. It took her two years to sell it for the first time, but it then sold several times after that. Just last month the same property, now remodeled, sold to Wahlberg for $37 million.The neighborhood’s privacy and security was part of the reason for that sale, as well as the $43 million sale of two properties to Rockstar Energy Drink founder Russell Weiner, who recently changed his legal name to Russ Savage.Most of the houses have 2.5 acre lots, about the size of two football fields, and sit on the edge of an artificial lake, giving each home its own bubble of privacy. There is no golf club so people aren’t coming in and out, said Adžem. Plus, the neighborhood isn’t on the beach, so outsiders can’t peep residents’ backyards from their boats.In addition, the neighborhood includes guarded entrances and 24/7 security made up of armed ex-military and police, which saves residents money.“The clients who can be on the ocean and can afford to pay 100 million-plus for a property will actually have to hire security personnel just for themselves, because, as you know, Florida beaches are public beaches,” said Adžem.Daniel PetroniDaniel PetroniIn a development with such large lots and few houses, it’s possible to build impressive manors. Wahlberg’s new home at 9200 Rockybrook Way, fully remodeled by developer Aldo Stark, spans 18,206 square feet. It sports seven bedrooms and 10 full baths, as well as myriad amenities such as two powder rooms, a home theater, cigar lounge, wine cellar, gym, sauna, guesthouse, and a 170,000 resort-style pool. Stark also included custom agate and onyx pieces that came with the fully furnished home. It also came with a fully stocked fridge for good measure, said Adžem.“This home is a really great value for $37 million—you get a lot of house, you get a lot of property, and of course, you get all of these other things,” Adžem said. “A house like this on the ocean would cost $137 million.”
ShareResizeOutflows for 2025 have reached some £1.4bn, latest results showPhoto: Jose Sarmento Matos/Bloomberg/Getty ImagesAberdeen shed another £500m in the three months to the end of September as the UK fund giant struggles to stem investor redemptions.Net outflows were down 50% from the third quarter in 2024 when clients pulled £1bn from the business, but year-to-date Aberdeen has now seen around £1.4bn walk out the door.
ShareResizeMark Serocold is taking Ares from ‘sleeping giant’ in the European wealth market to a serious player. Illustration: Danilo Agutoli for FNMark Serocold knows what wealthy European investors want. The head of Ares Wealth Management Solutions for Emea, he has been tasked with raising the profile of the $546bn alternatives giant in high net worth hot spots such as the UK, Italy and Switzerland.Ares’ wealth business has amassed $44bn since its inception in 2021 — less than a fifth of rival Blackstone’s $279bn of private wealth assets. However, it has ambitions to manage $100bn globally on behalf of rich individuals by 2028.
ShareResizeSid Azad is the latest senior hire for the UK bank’s wealth pushBarclays has tapped a partner from consulting giant McKinsey to lead its mass affluent business as the UK bank continues its wealth push.Sid Azad has been hired as head of mass affluent and growth and will play a key role in shaping Barclays’ strategy for its private banking and wealth management business in the UK and crown dependencies, the firm said in a statement.
North East defence specialist Pearson Engineering has helped to develop a robot mine sweeper which is now being trialled by the British Army to clear explosives on the front lines. The Newcastle company, based in the famous Armstrong Works, has worked with the Defence Science and Technology Laboratory (Dstl) to create Weevil, a device which is hoped will replace current mine-clearing methods that included Trojan armoured vehicles, which require a three-person team to operate in hazardous areas. The robot mine sweeper is said to be able to clear minefields quicker and safer than present capabilities, reducing risk to soldiers on the front line and it can be operated via remote control by just one person from several miles away. The prototype – which is fitted with a mine plough to clear a safe path – has been successfully tested on a surrogate minefield in Newcastle, and the technology is now being passed to the British Army for further development and more trials. Ian Bell, CEO at Pearson Engineering, said: “We are proud to contribute to such game-changing capability. It brings together decades of development by Pearson Engineering, delivering the very best of minefield breaching technology proven around the world, and contemporary developments in teleoperation. “Work with UK MOD is an incredibly important part of our business, ensuring our troops get the latest in combat engineering capability and that we can effectively defend our nation and allies.” Luke Pollard, minister for the armed forces, said: “It won’t be a moment too soon when we no longer have to send our people directly into harm’s way to clear minefields. “This kit could tackle the deadly threat of mines in the most challenging environments, while being remotely operated by our soldiers several miles away. “It demonstrates British innovation, by British organisations, to protect British troops.” The robot was developed by the Defence Science and Technology Laboratory (DSTL) and Newcastle-based firm Pearson Engineering. The Ministry of Defence said there are no current plans to provide it to Ukraine. DSTL military adviser Major Andrew Maggs said: “Weevil is the perfect combination of tried and tested technology and modern advancements.
ShareResizeThe UK robo-adviser failed to become a household name despite the Wall Street bank's distribution firepowerPhoto: Mike Kemp/Getty ImagesJPMorgan did it. Four years after its landmark deal to acquire Nutmeg, the Wall Street bank has finally shelved the UK digital wealth manager’s brand.Nutmeg will live on. Its existing products and services will be absorbed under JPMorgan Personal Investing, a new retail wealth and investing business that the bank will launch in November.
ShareResizeSt James's Place is enjoying a long-awaited comeback under CEO Mark FitzPatrickPhoto: No CreditSt James’s Place has surpassed £200bn in assets for the first time, as its revamped charging structure was rolled out across the business.Net inflows into the Cirencester-headquartered wealth giant were £1.8bn over the three months to the end of September, according to its latest trading update. This was nearly double the £890m its portfolios attracted over the same period in 2024.
The North East automotive sector is not thought to be in the direct firing line of swingeing tariffs imposed by US president Donald Trump, but it could feel wider secondary impacts. As the lynchpin of the region's cluster, Nissan's Sunderland operation produces cars destined for the UK and European market. However, a number of its neighbouring North East suppliers - including Faltec Europe, Nifco and Kasai UK - make components for other manufacturers, among them prestige brands such as Jaguar Land Rover, which is thought to be more at the mercy of a blanket 25% rate applied to cars built outside of the US. Paul Butler, CEO of the North East Automotive Alliance said: "The blanket 25% tariff on all cars and car parts imported to the US announced by President Trump is disappointing but not surprising. However, these tariffs will not have an adverse effect on the NE automotive sector as Nissan Sunderland do not export to the US and the number of suppliers exporting to the US is minimal – though, due to the global nature of the automotive sector, they will, undoubtedly, impact parent companies of North East operations. "For the wider UK automotive sector it will have an impact, particularly for some of the more iconic brands from the UK. Last year the UK exported over 101,000 cars to the US with a total value of £7.6bn. This makes the US the third biggest market for British built cars behind the EU and UK markets, who account for 70% of all UK manufactured vehicles. The UK and US automotive industries have a long standing and productive relationship, we need to look at how we can work together to drive growth in both markets. "A global trade war and tit-for-tat retaliations, will have an impact on global trade and lead to increased prices for UK consumers. The UK Government’s calm approach whilst seeking a trade deal will, hopefully, minimise any impact for UK consumers." Think tank the Institute of Public Policy and Research has suggested up to 25,000 jobs could be under threat while research from Birmingham University's City-Region Economic Development Institute estimates the automotive tariffs could cost the UK £9.8bn in GDP between now and 2030, and put 137,000 jobs at risk. In an interview on the BBC's Today programme, the Business Secretary, Jonathan Reynolds, admitted the imposition of tariffs will cause worry in the country's automotive sector but said the Government was working in the interests of British Businesses. He said: "There will be people in key sectors like automotive very worried in the UK today and I want them to know - and I want them to be calm and reassured - this is the job of the British Government, we'll keep that work going." Downing Street is in the midst of attempting to negotiate a wider trade deal with Washington. At the same time, Mr Reynolds launched a consultation with businesses on the implications of potential retaliatory efforts - a move he said was necessary to "keep all actions on the table". The Society of Motor Manufacturers and Traders (SMMT) - the key automotive voice in the country - echoed disappointment about the "punitive" tariffs and said it was yet another challenge for the sector which was already facing several headwinds. But said it hopes the UK and US could still negotiate a deal.
An electronics manufacturer has warned that US tariffs could impact its ability to keep operating. TTE Electronics has bases in Asia, North America and five sites around the UK alongside its Woking headquarters, including a facility in Bedlington specialising in R&D and semiconductors. New results show strong performance in Europe and the UK was offset by slumping demand in the US. Overall, it chalked up £521.1m in revenues, down from £613.9m. The previous year’s operating profit of £3m was converted to a loss of £23.5m. The Stock Exchange-listed business, which engineers and manufactures products to support sectors from healthcare to aerospace, posted a pre-tax loss of £33.4m for 2024, and said the import taxes and retaliatory measures had led to an “uncertain and volatile” backdrop. In the UK, the firm has nine bases including sites in Abercynon, Bedlington, Fairford, Eastleigh, Nottingham, Sheffield, Manchester, and Barnstaple, having divested its sites in Hartlepool and Cardiff during the year. Its Bedlington base, founded in 1937, has 414 employees helping to produce microelectronics and resistors used by global manufacturers in the aerospace and defence markets. It has previously warned of difficulty in its US branch, with falling demand for the components it produces and ongoing production issues at its factories, which have led to it booking a £52.2m write-down. The first half of the year also saw 500 redundancies in its North America operations, which it expects to result in £12m of annual cost savings. Bosses warned that the recent US global tariffs, leading to retaliatory charges from some countries including China, had led to an “uncertain and volatile macroeconomic backdrop which could have an impact beyond that assumed in the severe downside case”. That means conditions could worsen beyond its worst-case scenario, particularly if US customers cut back on orders, which could impact its ability to keep operating and being profitable in the year ahead. It said: “The board is mindful of the increased market uncertainty arising from the recently announced trade tariffs and the potential impact on demand patterns. The recent introduction of US global tariffs and certain retaliatory tariffs provide an uncertain and volatile macroeconomic backdrop which could have an impact beyond that assumed in the severe downside case. "This has led the board to conclude that it is not possible to be certain of meeting the covenant test in certain extreme scenarios, in particular where customer reticence in placing orders against the backdrop of tariff uncertainty reduces order intake. These matters represent a material uncertainty which may cast doubt upon the group’s ability and the company’s ability to continue as a going concern for the period up to 30 June 2026.” It also now expects to report adjusted operating profit of between £32m and £40m for the year ahead, down from the £40m to £46m previously forecast. TT Electronics also announced its chief executive Peter France was stepping down “with immediate effect” and has been replaced by finance chief Eric Lakin on an interim basis. It also announced it is “assessing all options” for its struggling components division. Despite the warning, it said contract awards and growth drivers within the UK and Europe are “giving us confidence as we look forward”, with highlights including a two-year contract secured by the Bedlington team from a medical device innovator for the production of high voltage chip resistors.
For Ziad El Chaar, CEO of luxury developer DarGlobal, the future of the luxury industry isn’t measured purely in financial returns—it’s about emotional capital. While ROI is a return on investment, he said at the Fortune Global Forum in Riyadh on Monday, “In the luxury segment, we always say we’re giving you a lot of ROE: A return on ego.”Recommended VideoThat “return on ego,” Chaar explained, is what drives buyers toward exclusivity and identity-defining purchases. Whether it’s a limited-edition watch, a supercar, or what he calls the “limited edition of real estate”—co-branded luxury developments that partner with prestige brands including Aston Martin, for example—today’s affluent consumers are chasing rarity and recognition as much as yield. “We first identify demand before we build,” he said. In the Gulf, this demand has manifested as aspirational and rare goods, which DarGlobal’s co-branded product aims to deliver.More broadly, the global luxury market has evolved rapidly since 2020, rebounding from the pandemic to reach an estimated $327.52 billion in 2024 and projected to reach $480.54 billion by 2033, according to Straits Research. But aside from luxury goods, consumers are more often seeking out luxury experiences, a 2025 study by McKinsey found. The desire for a more luxury lifestyle connects directly to the success of high-end real estate development in the Middle East. While Europe remains an anchor, the center of gravity has shifted east—and increasingly, south. Gateway cities in the Middle East, Chaar argued, are now commanding global attention. “In the Gulf, we have almost the perfect formula,” he said. “Infrastructure, governance, lifestyle, safety, and speed. This region is ready to be treated as one ecosystem of gateway cities—from Riyadh to Jeddah to Dubai to Abu Dhabi to Doha.”Dubai already ranks among the world’s leading wealth hubs, attracting nearly 10,000 new millionaires in 2025 alone. Saudi Arabia is experiencing its own boom and is projected to attract 2,400 high-net-worth individuals in 2025, an 800% increase from 2024. The Kingdom’s real estate market is also flourishing, generating $132.3 billion in 2024 and is predicted to reach $201.4 billion by 2030. This growth has been bolstered by Vision 2030 reforms that will allow freehold ownership for foreigners starting in 2026. DarGlobal, which has invested 20 billion riyals (~$5.3 billion USD) to find foreign buyers, has already sold to investors from 40 nationalities in Riyadh and Jeddah projects—before the law even takes effect.Chaar’s company has positioned itself at the heart of this transformation. Its Saudi portfolio includes the Trump Tower and Trump Plaza in Jeddah and the Mouawad-designed Neptune villas in Riyadh, blending global brand recognition with local ambition. He believes these developments do more than house the wealthy—they anchor cities culturally and economically. “It’s very important when we think about these communities, you’re not going to go and build a remote community and build walls around it. You have to put it in a place where it serves as an anchor, because a luxury community in a city serves as an anchor for the city, as the image of the city,” he said, pointing to the development of Diriyah Gate in Riyadh. The development project, he explained, serves the wealthy and ultra-wealthy. “At the same time, it’s inclusive. It also has a lot of developments around it for the people who are going to work in that project. And it has the entertainment aspect, the retail aspect and the cultural aspect,” Chaar added.As the global luxury market tilts toward experience, identity, and geographic diversification, Chaar sees the Gulf as its next epicenter. The GCC’s economy is slightly larger than that of Italy (around $3.5 trillion), but he notes the region has an edge and extremely high potential in terms of its dynamism, infrastructure development, lifestyle, and stability. “Just like Italy has at least 10 destination cities, we deserve in the Gulf to be looked at as one region with at least 10 top destinations,” he said.
ShareResizeUBS has overhauled its wealth management business to turbocharge growth two years after its shotgun wedding with rival Credit SuissePhoto: Bloomberg via Getty ImagesThis is an online version of FN’s weekly wealth management newsletter. To subscribe, click here“We bank the world’s billionaires. That is our brand… but I want to add more advisers catering to high net worth and core affluent.”
A packaging firm that makes plastic films for supermarkets and the food industry has been bought from its administrators by Manchester’s Coral Products, saving 55 jobs. Plastic and packaging specialist Coral, of Wythenshawe, has agreed to buy the business and assets of Arrow Film Converters from its administrators for £502,899 in cash, through its wholly owned subsidiary Film & Foil Solutions. Coral said it had made an initial cash payment of £202,899, with the outstanding balance to be settled within 14 days following completion. The group said: “The cash payments have been funded without any increase to existing group facilities". Coral’s Film & Foil arm has also agreed to a six-month licence to occupy Arrow’s facility in Castleford, West Yorkshire, as it negotiates a long-term agreement. It has also taken on Arrow’s 55 staff and plans to run the business as a going concern, and has also acquired Arrow’s assets including flexographic printing machines, laminators, and slitting and punching facilities. Arrow is an approved supplier to UK supermarkets. It reported sales of £12.5m in the year to January 2022, £17.9m in the 18 months to July 2023 and current sales demand of around £1m per month. Joe Grimmond, Coral’s non-executive chairman, said "This acquisition propels Film & Foil into the front line of specialist flexible packaging and provides Coral Products plc with capacity toward its medium-term goal of £50 million of production availability."
The White House says it is considering backing a 50-year mortgage to help alleviate the home affordability crisis in the country. But the announcement drew immediate criticism from policymakers, social media and economists, who said a 50-year mortgage would do little to resolve other core problems in the housing market, such as a lack of supply and high interest rates.Recommended VideoBill Pulte, director of the Federal Housing Finance Agency, said on X over the weekend that a 50-year mortgage would be “a complete game changer” for homebuyers. FHFA is the part of the federal government that oversees Fannie Mae and Freddie Mac, which buy and insure the vast majority of mortgages in the country.The 30-year mortgage is a uniquely American financial product and the default way to buy a home since the New Deal. Politicians and policymakers at the time wanted to create a standardized mortgage that borrowers could afford and pay off during their working years, when the average lifespan for an American was 66 years old.Lower paymentExtending the life of a mortgage to 50 years does decrease a borrower’s monthly payment.The average selling price of a home in the U.S. was $415,200 in September, according to National Association of Realtors. Assuming a standard 10% down payment and an average interest rate of 6.17%, the monthly payment on a 30-year mortgage would be $2,288 while the payment on a 50-year mortgage would be $2,022. That’s presuming a bank would not require a higher interest rate on a 50-year mortgage, due to the longer duration of the loan.But significantly higher interestBecause even more of the monthly payment on a 50-year mortgage would go toward interest on the loan, it would take 30 years before a borrower would accumulate $100,000 in equity, not including home price appreciation and the down payment. That’s compared to 12-13 years to accumulate $100,000 in equity when paying off a 30-year mortgage, excluding the down payment.A borrower would pay, roughly, an additional $389,000 in interest over the life of a 50-year mortgage compared to a 30-year mortgage, according to an AP analysis.Other analysts came to a similar conclusion.“Extending a mortgage from 30 years to 50 years could double the (dollar) amount of interest paid by the homebuyer on a median priced home over the life of the loan and significantly slow equity accumulation,” wrote John Lovallo with UBS Securities.Broader housing issuesA 50-year mortgage does nothing to solve one critical issue when it comes to housing affordability — the lack of supply of homes. States like California and cities like New York have recently passed legislation or made regulatory changes to allow builders to build homes faster with less regulatory red tape.There’s also the raw cost of homebuilding in the country. Products such as steel, lumber, concrete, copper and plastics that go into home construction are now subject to tariffs under President Trump. Further, many construction jobs were being done by undocumented workers, particularly in the Southwest, where deportations are impacting the ability for homebuilders to find enough labor to build homes.“Many of the big things that would address supply right now are going in the wrong direction,” said Mike Konczal, senior director of policy and research at the Economic Security Project.”Pulte said on X that the introduction of a 50-year mortgage was just a “potential weapon,” among other solutions the White House has considered to combat high housing prices.Americans don’t live long enoughThe average age of a first-time homebuyer has been creeping up for years and is now roughly 40 years of age. A 50-year mortgage would be difficult to underwrite for a bank for a 40-year-old first-time homebuyer, who would be 90 years old by the time that home is paid off. The average life expectancy of an American is now roughly 79 years, meaning there’s 11 years of life expectancy not covered in a 50-year loan.“It’s typically not a goal of policymakers to pass on mortgage debt to a borrowers’ children,” Konczal said.Others have tried longer loansOther parts of the financial system have extended loan terms, to mixed results. The seven-year auto loan has become increasingly common as car prices have risen and Americans keep their cars longer. Despite longer loan terms, auto loan delinquencies have been rising, and the average price of a new car is now $49,740 compared to a price of $38,948 for a new vehicle five years ago.Student loans were originally designed to be paid off in 10 years, and now there are multiple payment options that extend repayment out to 20 years.Economists pointed out that a 50-year mortgage may do the opposite of helping with home affordability by causing home price inflation by introducing more potential buyers into a market struggling with supply.Trump downplays ideaAfter significant criticism, President Trump seemed less enthused about the 50-year mortgage. When asked by Laura Ingraham of Fox News about the idea, President Trump said it “might help a little bit” but seemed to brush it off.Under the Dodd-Frank Act, the mortgage giants Fannie Mae and Freddie Mac cannot insure a mortgage that is longer than 30 years, so any 50-year mortgage would be considered a “non-qualifying mortgage” and would be more difficult to sell to investors. Congress would have to amend U.S. financial laws in multiple places to allow for 50-year mortgages, and there seems to be little appetite for Congress to take this on immediately.
ShareResizeOne of the UK’s first robo-advisers will see its moniker disappear four years after a takeover by the Wall Street giantPhoto: Pavlo Gonchar/Getty ImagesJPMorgan is axing the Nutmeg brand in the UK four years after its landmark takeover of the digital wealth manager.JPMorgan Personal Investing will go live from November, according to a statement from the firm, with a range of managed investments, pensions and ISAs.
ShareResizeUBS wealth assets grew to $4.7tn globally at the end of September following strong flows during Q3Photo: Alamy Stock PhotoUBS’s global wealth business gathered $38bn in new money during the third quarter, despite a spike in client redemptions in the US.The Zurich-headquartered firm’s ultra wealthy clients poured $37.5bn into the business in the three months to the end of September, up 50% compared with the same period in 2024.
Escape From New Yorkisn’t just the title of a 1981 pulp classic starring Kurt Russell. It’s what Westchester County and Florida realtors told the world (includingFortune) about what would happen if Gotham elected a socialist mayor. But it’s time for a sequel with a different title. Recommended VideoIn the aftermath of much well-heeled panic about a potential mass exodus of New York millionaires and billionaires following the election of Zohran Mamdani, the contrary is already happening, and Manhattan luxury apartment buyers are voting with their wallets.Signed contracts for Manhattan homes costing $4 million or more rose to 176 in November, a 25% increase from October’s 141 deals, according to fresh data from brokerage Douglas Elliman and appraiser Miller Samuel. New signed contracts of more than $4 million increased at more than twice the rate of the overall market, the report noted.Olshan Realty similarly noted an uptick in Manhattan luxury buyers. In its most recent market report, the firm said the 17 contracts signed in the last week of November for Manhattan homes over $4 million bested its 10-year Thanksgiving week average. Compared with October’s luxury sales totaling 115, November’s sales increased more than 31% to 151 properties, according to the firm.The Big Apple’s real estate boom bucks the narrative from just a few months ago, when some of New York’s elite were preparing to pack their bags should democratic socialist Mamdani become the next mayor. Mamdani has advocated for increased eviction protections and rent freezes, as well as for a 2% income tax surcharge for those in the city earning more than $1 million a year. Mamdani’s shock primary win in June coincided with some real estate agents in Westchester, the suburb just north of the city, reporting an influx of interest in the area, with Zach and Heather Harrison of the Harrison Team at Compass, telling Realtor.com they saw “a spike in Manhattan residents reaching out about suburban properties.”Other real-estate leaders, however, argued that the data says differently.“There is no Mamdani effect,” Donna Olshan, president and founder of Olshan Realty, told Bloomberg. “The idea that people would flee New York was overblown. The numbers just aren’t bearing that out.”Why New York is still boomingJonathan Miller, president and CEO of Miller Samuel, toldFortunethe trend of wealthy buyers scooping up luxury New York real estate has been on display all year, contrary to the recent narrative of elites fleeing the city.“Throughout 2025 on a year-over-year basis, overall sales have risen, prices have risen, sales have risen faster than inventory, rents have risen, rental activity has risen, and especially in October and November,” Miller said. “I’m looking at this anecdotal argument, and the plural of anecdotal is not data.”High earners have plenty of reasons to come to or stay in New York, according to Miller. Wall Street saw is largest bonuses since 1987 in 2024, following a strong market, a trend that is expected to continue this year, as another banner year for Wall Street is expected to raise the payouts for investment bankers, traders, and wealth-management professionals by up to 25%, according to a November report from compensation consultancy Johnson Associates. These aren’t the first panicked premonitions of a dispersal of New York residents to the suburbs. In the early days of the pandemic, many feared New York would become vacant as the wealthy fled to suburban vacation homes. While many wealthy New Yorkers indeed left the city, the five boroughs nonetheless gained about 10,000 millionaires between 2020 and 2021, according to state data. Manhattan even gained 17,500 residents in 2022, mostly migrants from other boroughs. New York City’s population had been growing gradually for decades up to the pandemic, as the Census showed a recent peak of 8.8 million in 2020, with more recent data showing the city’s population at 8.5 million. The city had lost nearly a million people between 1970 and 1980, after which it grew consistently before the COVID shock.NYC Department of City Planning Population DivisionThe city hit a recent trough of 8.36 million in 2022, but recorded two consecutive years of relatively sluggish growth since then. The NYC Department of City Planning argued in May 2025 that the last two years of growth suggest losses during the pandemic “were a short-lived shock.”While Miller said he doesn’t know how Mamdani’s future policies will impact the city, he noted there’s no evidence to suggest a mass millionaire migration. “This whole thing is a classic misinformation scenario, where no one’s looking at actual data,” he said.
ShareResizeWith a Swiss wife, a child born in London and another in Hong Kong, globetrotting Tejpaul is in the thick of a renewed battle for global wealthIllustration: Danilo Agutoli for FNJPMorgan’s international private bank chief executive Adam Tejpaul doesn’t have much to complain about. The go-to bank for some of the world’s richest people has grown significantly outside its home market of the US. In Europe, where the US lender has offices in countries including Switzerland, Italy, France, Germany and the UK, asset growth has been well above 10% in recent years — which Tejpaul says is double the level of some of its biggest Wall Street competitors.
ShareResizeGantenbein joined UBP in January 2023 to head up its private markets institutional solutions businessPhoto: Alamy Stock PhotoUnion Bancaire Privée’s private markets institutional boss has exited the Swiss lender.Christoph Gantenbein announced his departure on LinkedIn after more than two and a half years with the Geneva-headquartered private bank.
ShareResizeAtlanta-based Invesco sold Intelliflo to Carlyle at a steep discount compared to what it paid for the business seven years agoPhoto: Bloomberg via Getty ImagesThis is an online version of FN’s weekly wealth management newsletter. To subscribe, click hereCarlyle finally confirmed it is acquiring financial advice technology provider Intelliflo.
President Trump's comprehensive global tariff package has triggered a steep drop in defence sector stocks, as markets grapple with the repercussions of his decision to slap a 10 per cent tax on British exports, among other actions. This move has sparked worries about increased costs and the potential for a scarcity mentality that could push up prices for essential materials in defence manufacturing, as reported by City AM. "There is just a general sense of panic", stated Daniel Murray, CEO of EFG Asset Management. He further noted that as the market responds to these trade tensions, "everything is getting killed, even good companies that will likely fare relatively well." Shares in major UK and European defence companies took a severe hit on Monday, with significant losses seen by BAE Systems, Chemring Group, Qinetiq and Babcock International. Babcock International's shares plummeted nearly eight per cent, closely trailed by Chemring Group, which dropped by 7.16 per cent. Babcock declined to comment on the situation. Meanwhile, British defence powerhouses BAE Systems and Qinetiq saw their shares dip four per cent and 6.41 per cent respectively. However, a spokesperson for BAE Systems told CityAM: "We have very limited imports into the US and as such we aren't materially impacted by the evolution of US tariff policy in the same way that some other companies are." Companies across Europe, including Germany's Rheinmetall and Hensoldt, experienced significant declines of up to 14%, reflecting a broader trend of investor uncertainty triggered by Trump's tariff announcement. Kevan Craven, chief executive of ADS Group, which represents UK aerospace, defence, security, and space companies, expressed concerns about the impact of the tariffs. Despite this, he remained optimistic, stating: "While the tariff announcement is disappointing, it will not kill our sectors. "However, our members forecast additional costs in the tens of millions of pounds, particularly in the aluminium and steel markets", he added. Craven warned that the tariffs could lead to increased costs due to businesses' instinct to stockpile, creating a scarcity mindset that could have long-term consequences. The tariffs, announced as part of Trump's 'Liberation Day' measures on Wednesday, are seen as an effort to address the US trade deficit with multiple countries, including the UK. The UK government has launched a request for input on potential retaliatory actions in response to these tariffs, with a deadline of 1st May for businesses to share their concerns. Earlier this year, shares of European defence companies were among the strongest performers, driven by expectations of increased government spending on regional security. Following the announcement of tariffs, the defence sector has seen one of its most significant declines in recent history – marking its largest single-day drop since the COVID-19 pandemic. The Stoxx Europe 600 index plunged by 6.3 per cent, with the defence sub-index dropping by 9.3 per cent early on Monday. Amid fears of a growing global trade war, markets have responded nervously. The wider European stock market also suffered substantial losses, with Germany's DAX falling ten per cent at the start of trading, while countries such as France and Italy also experienced corrections. The global tariffs come after Chancellor Rachel Reeves' recent Spring Statement, where she underscored the UK government's commitment to enhancing the UK's defence capabilities in light of increasing security threats. Reeves detailed plans to increase the defence budget to 2.5 per cent of GDP.
ShareResizePhoto: Jason Alden/Bloomberg/Getty ImagesGoldman Sachs has been added to Evelyn Partners’ roster of advisers as the UK wealth giant lines up a closely watched sale process.The Wall Street bank has now been appointed as co-adviser alongside Evercore,Financial Newshas learned.
Landlords could no longer rely on rent-pricing software to quietly track each other’s moves and push rents higher using confidential data, under a settlement between RealPage Inc. and federal prosecutors to end what critics said was illegal “algorithmic collusion.”Recommended VideoThe deal announced Monday by the Department of Justice follows a yearlong federal antitrust lawsuit, launched during the Biden administration, against the Texas-based software company. RealPage would not have to pay any damages or admit any wrongdoing. The settlement must still be approved by a judge.RealPage software provides daily recommendations to help landlords and their employees nationwide price their available apartments. The landlords do not have to follow the suggestions, but critics argue that because the software has access to a vast trove of confidential data, it helps RealPage’s clients charge the highest possible rent.“RealPage was replacing competition with coordination, and renters paid the price,” said DOJ antitrust chief Gail Slater, who emphasized that the settlement avoided a costly, time-consuming trial.Under the terms of the proposed settlement, RealPage can no longer use that real-time data to determine price recommendations. Instead, the only nonpublic data that can be used to train the software’s algorithm must be at least one year old.“What does this mean for you and your family?” Slater said in a video statement. “It means more real competition in local housing markets. It means rents set by the market, not by a secret algorithm.”RealPage attorney Stephen Weissman said the company is pleased the DOJ worked with them to settle the matter.“There has been a great deal of misinformation about how RealPage’s software works and the value it provides for both housing providers and renters,” Weissman said in a statement. “We believe that RealPage’s historical use of aggregated and anonymized nonpublic data, which include rents that are typically lower than advertised rents, has led to lower rents, less vacancies, and more procompetitive effects.”Over the past few months, more than two dozen property management companies have reached various settlements over their use of RealPage, including Greystar, the nation’s largest landlord, which agreed to pay $50 million to settle a class action lawsuit, and $7 million to settle a separate lawsuit filed by nine states.The governors of California and New York signed laws last month to crack down on rent-setting software, and a growing list of cities, including Philadelphia and Seattle, have passed ordinances against the practice.Ten states — California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington — had joined the DOJ’s antitrust lawsuit. Those states were not part of Monday’s settlement.
ShareResizeSJP's Mark FitzPatrick is just one of the outsiders shaking up UK wealth leadershipPhoto: Bloomberg/Lionel NG/Getty ImagesThis is an online version of Financial News’s wealth management newsletter. To subscribe click hereWhat do St James’s Place boss Mark FitzPatrick, Evelyn Partners chief Paul Geddes and Rathbones’ new leader Jonathan Sorrell have in common?
A Birmingham manufacturer has secured an exclusive supply deal with one of the UK's most-famous fashion brands. Dalian Talent has signed a five-year partnership with French Connection to supply its physical and online stores with licensed candles and home fragrances. Dalian, which is based in Kings Heath, called the deal "a significant milestone" in the company's 27-year history. The business makes candles for both private label and brand licensing for home fragrance, candle-related home furnishings and personal care products. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. French Connection enlisted the firm to expand its home fragrance category. The debut collection is being sold across the UK, Europe, India, America and the Middle East, as well as through digital channels, and features eight ranges and gift sets. The products are made using shea butter, harvested from trees in West Africa. The tie up has also seen the French Connection candles listed by high street fashion staple Next and on its website. Dalian's chief executive Hamish Morjaria said: "The development of the French Connection home fragrance range was a deeply collaborative process. "We worked closely with its design team to ensure the collection authentically reflected the brand's values, aesthetics and emerging trends….bringing the first collection to market in just six months." French Connection's chief executive Apinder Ghura added: "We are delighted to partner with Dalian Talent Group on this exciting venture. "We look forward to building on this momentum in the years ahead."
The sweeping economic interventions launched during the Covid-19 pandemic may have made American homes less attainable for millions—a reality the housing market will need years, if not decades, to correct, warns top real-estate executive Sean Dobson. The Amherst Group CEO, whose subsidiary Main Street Renewal is one of the country’s largest institutional landlords, told ResiClub‘s Lance Lambert that he believes the aftershocks of loose lending in the run-up to the Great Financial Crisis, and massive stimulus and abrupt policy pivots in the years since, have fundamentally altered the homeownership landscape for an entire generation.Recommended VideoDobson, in conversation at the residential real-estate conference ResiDay, reflected on the question of what the U.S. is going to do for the family out there that wants to buy a home. “We think the unfortunate part … really the cost of economic policy response to COVID is that we’ve probably made housing unaffordable for a whole generation of Americans.”Dobson estimated that it will probably take 10 or 15 years of steady income growth to get affordability back to something approaching fairness, referencing postwar to pre-2006 norms. He placed the blame squarely on a combination of pandemic-era monetary policy, describing economic policy as “reckless” as well as surging asset prices and stagnant wage growth.“Affordability has probably never been as bad as it is today, the way that we measure it,” Dobson said—worse, even, than the feverish markets of 2006. “You’ve got to be very, very careful.”On the sidelines of the conference, Dobson toldFortunethat “rental is going to have to become a part of the solution,” not just because he’s invested in the success of his firm but for the health of the country. “What are our goals?” Dobson asked hypothetically. “Is our goal to get everyone long real estate? Or is our goal to get everybody to live where their kids can go [to a good school] and be successful?” He said the housing industry is facing a big, obvious problem. “In reality, the problem is that homeownership is too difficult to reach, and there aren’t enough homes – across all types and price points – to meet consumer needs.” A representative for Amherst said this is “the least affordable period in modern history” for housing, noting that the PITI (Principal, Interest, Taxes and Insurance) on an FHA-insurance mortgage with a 97% loan-to-value ratio currently consumes about 42.9% of median income. That is slightly higher than 2006 averages of 41.5%, and well above the longer-term 25%-35% range.The Price of Economic FirefightingWhat was so reckless about U.S. economic policy, according to Dobson? A brief refresher on the last decade-plus and the era of quantitative easing is required.The onset of Covid-19 triggered trillions in government spending and ultralow interest rates as the Federal Reserve returned to the playbook that was improvised in the crisis of 2008. While meant to stave off recession and mass unemployment, this “easy money” era sent home prices and rents skyrocketing.Dobson told Lambert that this set of government and Fed policies, though well-intended, created new winners and losers in the housing market. “There’s a tax on the U.S. economy that’s almost 200 basis points because of the shoot-up that occurred. And the Fed needs to get rid of that tax,” he said, pointing to persistently high mortgage rates and nominal rates that are “probably 1 [percent] higher than they’re supposed to be given the rate of inflation that we have.”Amherst’s own analytics show just how far out of reach the average home has become. Right now, “you’re so far away from fair value,” he said, that “you can only reach affordability one of three ways: by changing the price of the home, the price of the money, or the income of the family.” An Amherst Group representative provided internal estimates projecting that, for housing affordability in the U.S. to get back in line with 2019 levels, the price of the home would need to go down 35.3%, interest rates to go down 4.6%, or income to go up by about half (55%). None of these is plausible on their own, Dobson told Lambert, and only incremental progress is likely as incomes, prices, and rates gradually realign over many years.Credit constraints are another culprit: while post-crisis regulations have shored up mortgage lending standards, they have also squeezed out borrowers with lower credit scores—historically, a large swath of would-be first-time buyers. “Subprime mortgages were serving millions of Americans to get them to buy homes … when Dodd-Frank was passed, there was a maximum credit risk allowed on the table. That only serves the top 25% of the consumer base,” Dobson explained. As a result, lending criteria systematically exclude half the market, leaving many Americans as permanent renters despite wanting homeownership.The reason these were called subprime wasn’t because they were junk, he added, they were simply mortgages for people with below-average credit scores. He asked the crowd if they knew what it took to go from a 745 FICO score to a 645 FICO score: “Two missed payments. You can go from prime to subprime in two months.” After that, it takes five years to get back to prime status, he added. “This whole system of how we decide who gets credit and who gets to decide, and then what we do when the mortgage defaults, is something built in the ’40s.”Institutional Owners and the Rental ShiftDobson also addressed the growing role of institutional landlords like Amherst. Despite public criticism that firms like his crowd out homeowners, he maintains they instead fill a void left by tighter credit and lower homebuilding. Amherst’s residents often have modest incomes and below-prime credit but aspire to the benefits of suburban homes—yards, schools, and community—even if they rent, not own. “We got involved simply because … the nation is not going to finance [our customers] to live in the home.”In conversation withFortune, Dobson argued that Amherst’s rise fills a vacuum and his residents are not served by the current mortgage industry. He said many Amherst residents have credit scores around 650 and a small percentage — fewer than 10% — have inconsistent payment histories: “If that was a mortgage pool, it would be a disaster.” Dobson said the model is a needed adaptation to post-pandemic American realities: it finances and upgrades homes at scale and offers housing stability when the government and traditional lenders have retreated.As for solutions, Dobson told Lambert he was skeptical of quick fixes from Washington. He advocated for expanding credit access—potentially through innovative financing or careful relaxation of lending standards—but notes that such ideas can be “the fastest way to end a meeting with a politician.”In conversation withFortune, Dobson looked out on the future for the economy, his residents and the pursuit of a good life. On the subject of artificial intelligence, he said he thinks its impact on jobs will be most acute for frontline and service professionals, which make up a large chunk of Amherst’s residents. Dobson toldFortunethat his average new resident makes slightly over $100,000 (Amherst said the median annual income of new residents is $108,000). And if these residents are working a job “pushing paper and part of the workflow process,” then they could be in trouble, he said.When asked about the recent election of Zohran Mamdani as mayor of New York, framed byThe New York Timesas “the revenge of the struggling yuppie,” making about $120,000 and struggling to afford the city, Dobson declined to comment, except to say that many people seem to feel like they’ve done what they were told “and then they didn’t get what they were promised.”
ShareResize‘People were pricing in Armageddon’ after Liberation Day, Kamal tells FN, but clients have benefitted from a reboundIllustration: Danilo Agutoli for FNLiberation Day is an event that wealth managers are unlikely to forget anytime soon.US president Donald Trump in April unleashed an unprecedented barrage of global tariffs, including steep hikes on imported goods for some of America’s key allies and major trading partners, wiping trillions of dollars off stock markets in a matter of days.
High home prices and elevated mortgage rateshave made it increasingly difficult for Gen Z and millennials to buy homes. The median age of first-time U.S. home buyers has significantly jumped during the past decade. Because incomes have not kept pace with housing costs, many younger Americans are locked out of homeownership.It’s become increasingly difficult in recent years for young home buyers to break into the housing market. Between comparatively high mortgage rates and skyrocketing home prices, the weight of buying a home feels insurmountable for Gen Z and millennials. Recommended VideoAnd it shows in the data: In 2025, the share of first-time home buyers plummeted to a record low of 21%, while the typical age of first-time buyers climbed to an all-time high of 40 years, according to a National Association of Realtors report released Tuesday.“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. “The share of first-time buyers in the market has contracted by 50% since 2007—right before the Great Recession.”According to a previous NAR report, the share of “older” baby boomer (1946-1954) home buyers was 22%, while the share of “younger” millennials (1990-1998) and Gen Zers (1999-2011) were just 14% and 5%, respectively. And as Jim Reid, head of global macro research at Deutsche Bank pointed out in a note this summer, 46% of homes purchased in 2024 were by those aged 60 and over.Younger buyers struggling to break into the housing marketHistorically, younger buyers have made up a much larger piece of the pie. The median age of a first-time home buyer was 28 years old in 1991. That jumped to 38 years old in 2024, according to NAR. And “rising home prices and high mortgage rates have pushed” the median age of home buyers to a record-high of 56 years old in 2024, up from 46 in 2021,” wrote Apollo Academy Chief Economist Torsten Sløk, citing NAR data.That’s not a great omen for the American dream, which has long been regarded as owning a home. It’s typically the largest asset a person will buy in their lifetime and home equity can serve as a nice nest egg for future home purchases or cashing out after a sale. “Over the long run, property is an asset that ultimately gets redistributed from one generation to the next,” Reid wrote. But many members of the younger generations don’t have that opportunity. “Right now, that handoff is being stalled by high interest rates and elevated home prices,” Reid added. “At some point, either—or both—will have to adjust, or real wages for younger people will need to rise sharply.”That’s another crux of the problem: Wages haven’t kept up with home prices. According to a 2024 report from the U.S. Department of the Treasury, rents and house prices have been rising faster than incomes across most regions of the U.S.As of February, Americans need to make about $141,000 to afford a median-priced home, according to a National Association of Home Builders report, but the average salary for a person in the U.S. is about half of that. The income needed to buy a home in the U.S. “remains significantly higher than before the [COVID-19] pandemic, underscoring the ongoing challenge of affordability even as market conditions gradually rebalance,” Realtor.com Chief Economist Danielle Hale said in a statement.While housing market conditions are grim for Gen Z and millennials, they’ll eventually break into the housing market, Reid suggested. “Eventually, the younger generationwillown the homes currently held by the older generation,” he wrote. “We just don’t yet know what the price will be.”A version of this story originally published on Fortune.com on July 23, 2025.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
After the spring selling season flopped, the housing market is finally heating up in the colder autumn months as sellers slash prices more aggressively.Recommended VideoWhile the typical individual discount remains $10,000, sellers are increasingly offering multiple reductions as tepid demand leaves homes on the market for longer, according to Zillow. As a result, the cumulative price cut in October hit $25,000, matching the largest discounts Zillow has ever recorded.The data comes just in time for Black Friday. But instead of looking for holiday-shopping deals on toys, sweaters, and electronics, consumers in some cities could get 9% off a home’s typical value.“Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit,” Zillow Senior Economist Kara Ng said in a statement released on Monday. “These discounts are bringing more listings in line with buyers’ budgets, and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”The most expensive housing markets have the largest median discounts by dollar value: San Jose ($70,900), Los Angeles ($61,000), San Francisco ($59,001), New York ($50,000) and San Diego ($50,000).But when looking at discounts as a share of a home’s value, cities in other regions actually have better deals. For example, the typical markdown in Pittsburgh is $20,000—a fraction of the discount in the bigger markets—but it represents 9% of that metro area’s home value, according to Zillow.New Orleans also boasts a 9% discount, while Austin’s is 8.4%, Houston’s is 8.2%, and San Antonio’s is 7.9%.ZillowDesperate sellers, buyer’s marketThe steeper discounting comes as the housing market has been frozen for much of the past three years after rate hikes from the Federal Reserve in 2022 and 2023 sent borrowing costs higher, discouraging homeowners from giving up their existing ultra-low mortgage rates.But the dearth of new supply kept home prices high, shutting out many would-be homebuyers who were also balking at elevated mortgage rates.With demand weak, the housing market has been shifting away from sellers and toward buyers. The pendulum has swung so far the other way that delistings soared this year as sellers became fed up with offers coming in below asking prices and took their homes off the market.By one measure, this is the strongest buyer’s market on record. In October, sellers outnumbered buyers by 36.8%, the largest such gap in Redfin data going back to 2013. The mismatch amounts to 528,769 people.The number of buyers fell 1.7% to the second-lowest level ever because of high housing costs and economic uncertainty, Redfin said last week. The tepid demand sent the number of sellers down 0.5%, marking the fifth straight decline and hitting the lowest level since February.Matt Purdy, a Redfin Premier real estate agent in the Denver area, said some homeowners need to sell due to a new job or a divorce. While sellers want top dollar, buyers are focused on getting a low monthly payment, and there’s a shortage of house hunters.“Oftentimes the buyer ends up winning the negotiation because they have options—there are a lot of sellers who are desperate to make a deal happen,” he said in a statement last week.
ShareResizeJPMorgan has raided Citi again as banks race to service the world's richPhoto: Mike Kemp/Getty ImagesA senior member of Citigroup’s wealth team has joined Wall Street rival JPMorgan’s UK private bank, according to people familiar with the situation.Paul Ferry, head of the financial professional client group at Citi Private Bank, has resigned after 17 years at the US bank.
Global stock markets have tumbled while local manufacturers such as JLR and JCB have started assessing their business activities as President Donald Trump imposes a new raft of import tariffs. After being announced in February, the tariffs came into force over the past few days and have seen goods imported into the US from the UK hit with a baseline tariff of ten per cent. However, this rises to 25 per cent for all foreign-made vehicles entering the US, prompting Coventry-headquartered JLR to pause its exporting activities into America. And like JLR, Warwickshire sports car brand Aston Martin does not have a factory in America, meaning the fiscal implications could be even greater, especially as the US market represents around 30 per cent of its annual sales. The UK has got off light compared to the other countries and regions, with China being hit with a 34 per cent tariff, 20 per cent for the EU and a whopping 46 per cent for Vietnam - prompting fears of a 'global trade war'. Business leaders in the West Midlands have been reacting to the new tariffs coming into force and the potential implications going forward. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Emily Stubbs, head of policy at Greater Birmingham Chambers of Commerce, described it as a "lose-lose" situation for everyone and urged the UK Government to do all it could to provide practical support to businesses now making difficult decisions about trading with the US. "We also encourage Greater Birmingham firms to immediately start negotiations with their US customers on managing the impact of these tariffs if their contacts allow," she said. "Longer term, they may want to explore alternative markets, especially the EU, countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or those where we're expecting other trade deals to be made later this year. "The Bank of England cited intensified uncertainty in global trade as one of the reasons to hold off on lowering interest rates last month. They'll be carefully monitoring the impact of these tariffs, particularly on inflation and employment, as they consider future rate cuts. "A global trade war would likely give a significant knock to UK GDP and that could have repercussions for the Chancellor's fiscal headroom - if that gets wiped out then we would be looking at either more spending cuts or more tax rises. "The UK government must remain level-headed and continue to work with the US administration to find a mutually beneficial agreement on tariffs and trade." Janie Frampton, president of the Greater Birmingham Global Chamber of Commerce, said: "The ten per cent tariff on goods imported from the UK into the United States is unhelpful but is significantly lower than has been imposed on many other major US trading partners, including the EU. "However, there is no escaping the fallout from these decisions, which will increase the risk of trade diversion and cause great uncertainty for business communities across the world. "The Government has kept a cool head during negotiations so far and getting the best deal for the UK is what matters most. "It is vitally important the Government does not give up on negotiations and, in the meantime, provides the necessary support to impacted businesses. Tariffs can be lifted at any time and the US has left the door open to do some form of deal with us." David Morris is head of the Midlands operation for financial and business services firm PwC in Birmingham. "The announcement of tariffs will have a significant impact in the UK, and especially in the West Midlands, where we have strong manufacturing and automotive roots," he said. "This presents new and immediate challenges for business. Cars make up 49 per cent of the exports from the West Midlands to the US which represents five per cent of the region's GVA. "To successfully navigate through this uncertain period, business leaders will need to make strategic decisions which consider how they source, price and manage risk. Being agile and resilient will be essential. "Looking ahead, close collaboration across policy makers, business and education providers will ensure the West Midlands can continue to build on diversifying its offering - strengthening our professional and financial services and supporting our growing technology sector." David Hooper is the managing director of Hooper & Co, a Warwickshire-based international trade consultancy. He has warned UK exporters to review their export documentation urgently or risk being hit with tariffs of up to 54 per cent due to supply chain "blind spots". Mr Hooper said it was crucial firms were aware that tariffs would be applied based on the country of origin, not the country of export. "We're urging all UK exporters to immediately audit their supply chains and ensure they have robust documentation in place, especially when it comes to the origins of goods and any potential blind spots that could incur unexpected charges," he said. "A product made in China but re-exported from the UK will face a tariff of up to 54 per cent unless it qualifies under origin rules as having been substantially transformed in the UK. "If your paperwork doesn't prove UK origin, your goods could be incorrectly classified and your business could be hit with extra costs and delays. "With such short implementation timelines and variable tariff rates depending on origin, this is one of the most challenging compliance environments UK exporters have faced in recent years. UK businesses must therefore act now to protect their margins and avoid disruption. "UK manufacturers who can demonstrate clear origin have a potential competitive edge in the US market but only if they get their documentation right." Looking further ahead, he added: "China is expected to respond with countermeasures and the EU has already signalled its intention to introduce tariffs of its own. "UK exporters are entering a period of heightened regulatory complexity and trade volatility. It's so important they have a solid understanding of their current activity and processes to avoid any further headaches." Johnathan Dudley, is a partner and the head of the manufacturing team at accountancy group Crowe in Oldbury. He said it was vital for companies to focus on seizing opportunities to promote more UK and European manufacturing. "You cannot control what you cannot control so it's important for UK businesses to concentrate energy and efforts on what they can," he said. "For UK industries, including steel production, processing and the automotive supply chain, the tariffs come at a challenging time. "It'll be key for these industries to assess their options and explore diversification - particularly in light of the UK government's increase in defence spending and healthcare. "Outside automotive, a ten per cent tariff arguably gives UK companies a competitive advantage over those with higher tariffs such as the EU or China. "For all sectors, the opportunities of trading outside the USA present themselves - Canada and Mexico, for example, are vast countries with demand and resources." Separately, Staffordshire digger manufacturer JCB has confirmed it will double the size of a new factory currently under construction in Texas as the company says the tariffs will impact its business in the short-term. JCB has been manufacturing in the US for 50 years and in 2024 bought 400 acres of land in San Antonio after recognising the need to produce even more machines in North America. It currently has a plant in Georgia which it has operated for 25 years and employs around 1,000 people. The original plan for a 500,000 sq ft factory in San Antonio has now been revised up to one million sq ft at a cost of around £390 million. Production is due to start next year and it will employ up to 1,500 people. JCB chairman Anthony Bamford said: "JCB has been in business for 80 years this year and we are well accustomed to change. "The United States is the largest market for construction equipment in the world and President Trump has galvanised us into evaluating how we can make even more products in the USA which has been an important market for JCB since we sold our first machine there in 1964." Chief executive Graeme Macdonald said: "In the short term, the imposition of tariffs will have a significant impact on our business. However, in the medium term, our planned factory in San Antonio will help to mitigate the impact.
Homebuyers may experience a reprieve in 2026 as price normalization and an increase in home sales over the next year will take some pressure off the market—but don’t expect homebuying to be affordable in the short run for Gen Z and young families.Recommended VideoThe “Great Housing Reset” will start next year, with income growth outpacing home-price growth for a prolonged period for the first time since the Great Recession era, according to a Redfin report released this week. The residential real estate brokerage sees mortgage rates in the low 6% range, down from the 2025 average of 6.6%; a median home sales price increase of just 1%, down from 2% this year; and monthly housing payments growth that will lag behind wage growth, which will remain steady at 4%.These trends toward increased affordability will likely bring back some house hunters to the market, but many Gen Zers and young families will opt for nontraditional living situations, according to the report. More adult children will be living with their parents, as households continue to shift further away from a nuclear family structure, Redfin predicted.“Picture a garage that’s converted into a second primary suite for adult children moving back in with their parents,” the report’s authors wrote. “Redfin agents in places like Los Angeles and Nashville say more homeowners are planning to tailor their homes to share with extended family.”Gen Z and millennial homeownership rates plateaued last year, with no improvement expected. Just over one-quarter of Gen Zers owned their home in 2024, while the rate for millennial owners was 54.9% in the same year.Meanwhile, about 6% of Americans who struggled to afford housing as of mid-2025 moved back in with their parents, while another 6% moved in with roommates. Both trends are expected to increase in 2026, according to the report.Obstacles to home affordability Despite factors that could increase affordability for prospective homebuyers, C. Scott Schwefel, a real estate attorney at Shipman, Shaiken & Schwefel, toldFortunethat income growth and home-price growth are just a few keys to sustainable homeownership. An improved income-to-price ratio is welcome, but unless tax bills stabilize, many households may not experience a net relief, Schwefel said.“Prospective buyers need to recognize that affordability is not just price versus income…it’s price, mortgage rate, and the annual bill for living in a place—and that bill includes property taxes,” he added.In November, voters—especially young ones—showed lowering housing costs is their priority, the report said. But they also face high sale prices and mortgage rates, inflated insurance premiums, and potential hikes in utility costs because of a data center construction boom that’s driving up energy bills. The report’s authors expect there to be a bipartisan push to help remedy the housing affordability crisis.Still, an affordable housing market for first-time homebuyers and young families still may be far away.“The U.S. housing market should be considered moving from frozen to thawing,” Sergio Altomare, CEO of Hearthfire Holdings, a real estate private equity and development company, toldFortune. “Prices aren’t surging, but they’re no longer falling,” he added. “We are beginning to unlock some activity that’s been trapped for a couple of years.”
In a candid interview, top real estate agent and founder of SYKES Properties, Erin Sykes, got real about the state of the Florida real estate market. “Living and working in Florida is like being in a toxic relationship,” she said at the ResiDay conference in an interview with ResiClub editor Meghan Malas.Recommended VideoNow, Sykes, whose firm showcases multimillion-dollar deals in both Florida and the Northeast, said she’s watching two Americas diverge in real time. In the Northeast, she’s seeing bidding wars have returned in commuter suburbs like Monmouth County, N.J., and mid-Long Island, where buyers still fight for an acre and an elite school district. In Florida, by contrast, she described a market in withdrawal, nursing a hangover after a flurry of activity. “Just a couple years ago, we were being love-bombed and told how great we were,” she said, citing Florida’s burgeoning status as “Wall Street South,” a new finance hub. Now, things are “flat” or even heading downward.Home prices in Florida have fallen 5.4% year-over-year, dragged down by a glut of aging condos facing six-figure special assessments and post-Surfside safety mandates. Single-family homes, meanwhile, remain relatively resilient, she noted. She characterized the Sunshine State’s housing scene as a cycle of boom, bust, and burnout. She’s always fueled by the belief that somehow, the next round will be different.“Now we’re being told, ‘Oh, you’re too expensive,’ and kind of being discarded,” Sykes said. “You know, the conversation changes by the day, really.”Noting that Florida has always been a boom-or-bust state, she said she sees signs of moderation rather than collapse. “Rather than being the boom up here and the bust way down here like we saw in 2008 and 2009, the waves are becoming flatter,” she said. While there may be a pullback in prices, “really, a 5% pullback is nothing when your house has appreciated 25%.”For Florida, Sykes argued, even a flat market signals stability after years of breakneck appreciation—especially in Palm Beach, where home values have jumped as much as 200%in the past few years.The challenge of dual market personalitiesSykes described jarring regional differences. In Florida as an agent, you’re “just trying to really push and pull and drag deals together, you’re getting discounts of 5%, 10%, 20% off list price,” but then in the Northeast you find yourself going into a bidding war. “It’s like having a multiple personality disorder.”That volatility, she noted, reflects a broader split between regions that overheated during the pandemic and those returning to normal. The migration wave that sent high earners south may have turbocharged Florida’s boom but also exposed its fragility. Now, Sykes said, agents and homeowners alike are navigating two competing realities: the Northeast’s cautious recovery and the Southeast’s cooling after years of mania.She also outlined a bifurcation within the Florida housing market: while single-family homes remain robust thanks to demand for space among incoming families, condos face mounting challenges. That’s difficult because they are “really what has been driving down the Florida market,” and they are facing new challenges from special assessments, strengthened structural regulations, and fallout from incidents like the Surfside collapse. Pre-selling of new-construction condos continues apace, she said, with West Palm Beach alone seeing many significant developments underway.Sykes described a bifurcation between single-family homes and condos in Florida, since its exploding population is full of people who left Manhattan or Chicago and “wanted their own space.” She said single-family homes are doing well, and then “We’re seeing condos bifurcated, and then within that bifurcation of condos, a secondary bifurcation.”“Florida,” she concluded, “you have to always take with a grain of salt.”
ShareResizeXian Chan, HSBC's head of wealth and premier solutions UK, at the bank's Mayfair wealth centre, which opened its doors in JulyHSBC is planning to launch more dedicated spaces for its richest clients as part of a push to become one of Britain’s biggest wealth managers.The bank is eyeing additional “wealth centres” around the country, UK wealth boss Xian Chan toldFinancial News. The hubs can be used by HSBC customers with assets, income or deposits of at least £100,000.
A confidant of Bill Pulte, the Trump administration’s top housing regulator, provided confidential mortgage pricing data from Fannie Mae to a principal competitor, alarming senior officials of the government-backed lending giant who warned it could expose the company to claims that it was colluding with a rival to fix mortgage rates.Recommended VideoEmails reviewed by The Associated Press show that Fannie Mae executives were unnerved about what one called the “very problematic” disclosure of data by Lauren Smith, the company’s head of marketing, who was acting on Pulte’s behalf.“Lauren, the information that was provided to Freddie Mac in this email is a problem,” Malloy Evans, senior vice president of Fannie Mae’s single-family mortgage division, wrote in an Oct. 11 email. “That is confidential, competitive information.”He also copied Fannie Mae’s CEO, Priscilla Almodovar, on the email, which bore the subject line: “As Per Director Pulte’s Ask.” Evans asked Fannie Mae’s top attorney “to weigh in on what, if any, steps we need to take legally to protect ourselves now.”While Smith still holds her position, the senior Fannie Mae officials who called her conduct into question were all forced out of their jobs late last month, along with internal ethics watchdogs who were investigating Pulte and his allies.Housing industry rattled by dismissalsThe dismissals rattled the housing industry and drew condemnation from Democrats. It also gave Pulte’s critics evidence to support claims that he has leveraged the nonpublic information available to him to further his own political aims.“This is another example of Bill Pulte weaponizing his role to do Donald Trump’s bidding, instead of working to lower costs amidst a housing crisis,” said Sen. Elizabeth Warren, of Massachusetts, the ranking Democrat on the Senate Banking Committee. “His behavior raises significant questions, and he needs to be brought in front of Congress to answer them.”The episode marks the latest example of Pulte using what is typically a low-profile position in the federal bureaucracy to enhance his own standing and gain the attention of President Trump. He’s prompted mortgage fraud investigations of prominent Democrats who are some of the president’s best known antagonists, including Sen. Adam Schiff of California, New York Attorney General Letitia James and California Rep. Eric Swalwell.In June, he ordered Fannie Mae and Freddie Mac to prepare a proposal for the firms to accept cryptocurrency, another industry Trump has boosted, as part of the criteria for buying mortgages from banks. Last week, he persuaded Trump about the allure of a 50-year mortgage as a way to increase home buying and building — a proposal that was widely criticized because it would drastically increase the overall price of a loan.Pulte is also targeting the nation’s largest homebuildersPulte also has focused on large home construction companies, which have drawn Trump’s ire. Pulte requested confidential Fannie Mae data and has publicly signaled that he is considering a crackdown if the companies do not increase construction volume.“I’m looking at the Fannie Mae builder data and with the top three homebuilders we buy EASILY over $20 billion in THEIR LOANS!” he posted to X in early October.In a brief statement, the Federal Housing Finance Agency, which Pulte leads, did not address questions from the AP, but said the agency “requires its regulated entities to carry out their operations in compliance with all applicable laws and regulations.”Fannie Mae said it takes “compliance with the law very seriously and we have a rigorous program to ensure we follow all laws and regulations.”Pulte and Smith did not respond to requests for comment.Currying favor with the presidentSince his appointment to lead the FHFA, Pulte has sought to ingratiate himself with Trump. The 37-year-old scion of a homebuilding company fortune, Pulte has cultivated a reputation as a hyper-online millennial with a thirst for recognition and a desire to please the president. He and his wife also donated about $1 million to Trump’s campaign, campaign finance disclosures show.When Trump sought to oust Federal Reserve chair Jay Powell, Pulte became a leading attacker, routinely taking to X, formerly Twitter, where he has over 3 million followers, to excoriate the central bank leader.The Wall Street Journal reported this week that some Fannie Mae ethics and oversight officials who were fired last month had been investigating whether Pulte improperly obtained mortgage information for James, who was charged last month with bank fraud after Pulte sent a criminal referral to the Justice Department. She said the charges, which she denies, are politically motivated.Pulte’s power over the mortgage lending industry is unusual. Not long after his Senate confirmation, he appointed himself chairman of both Fannie Mae and Freddie Mac, which hold trillions of dollars in assets. The companies serve as a crucial backstop for the home lending industry by buying up mortgages from individual lenders, which are packaged together and sold to investors.The three competing roles present the potential for a conflict of interest that is detailed in emails reviewed by AP. Like many matters of public policy in Trump’s Washington, it appears to have begun with a social media post.In October, Trump criticized the homebuilding industry, which he likened to the oil-market-dominating cartel OPEC.“They’re sitting on 2 million empty lots, A RECORD,” the president posted to his social media platform, Truth Social. “I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going.”“On it,” Pulte posted in response on X.Sensitive data was gatheredPulte turned to Smith, who in her brief tenure at Fannie Mae had become a trusted Pulte ally whose work portfolio transcended the boundaries dividing Fannie Mae, Freddie Mac and the FHFA, according to two people who spoke on condition of anonymity out of fear of retribution.Soon, a team at Fannie Mae was overseeing an effort to pull together a tranche of mortgage data, according to emails reviewed by the AP. Smith played a central role and shared the confidential lender-level pricing information with Freddie Mac, which set off alarms at both companies, according to the emails. A spokesman for Freddie Mac declined comment.In the Oct. 11 message to Smith, Evans, the Fannie Mae mortgage executive, also added others to the email chain because they “were involved with this week’s efforts to compile this information” and he wanted to “make sure you do not exacerbate this issue.”Danielle McCoy, Fannie Mae’s general counsel, weighed in, adding that the information Smith provided to Freddie Mac should “never be shared” and “could put the company at risk.”Others who were part of the email chain included Almodovar, the CEO; chief operating officer Peter Akwaboah; Devang Doshi, a senior vice president for capital markets; and John Roscoe, a Pulte loyalist and former Trump White House aide, who served as Fannie Mae’s executive vice president of public relations and operations.Days later, Almodovar, McCoy and Evans — who did not respond to requests for comment — were out of a job. Meanwhile, Roscoe was promoted to co-president of the company, while Akwaboah was named acting CEO.Pulte also got something he wanted.A day after the terse email exchange, Trump posted a graphic to his Truth Social network that featured Fannie Mae’s logo, a list of large homebuilders and the headline “We Give Them Billions.”Pulte quickly reposted it.
ShareResizePermira and Warburg Pincus are looking to pass on a long-held assetPhoto: Jason Alden/Getty ImagesA sale process for Evelyn Partners, one of the UK’s largest wealth firms, is due to kick off next month, according to people familiar with the matter.Bankers at Evercore have contacted potential suitors with a view to starting discussions in October, according to people familiar with discussions. A number of meetings with management have already been lined up, the people added.
Soft drinks maker Fentimans has grown profits despite cost of living issues continuing to eat away at consumers' spending power. The Northumberland-based seller of botanically brewed drinks, including its ginger beer and rose lemonade, saw operating profits before exceptional costs rise from £97,153 to £1.38m last year, and a pre-tax loss of more than £655,000 converted to a pre-tax profit of £1.4m. New accounts filed for the Hexham firm show it managed to boost earning despite falling sales. Fentimans saw gross sales dip to £39.5m from £42.9m as turnover fell to £35.6m from £38.9m. Bosses said the gains had come thanks to significant cost savings made in the face of what it called a "challenging backdrop" with weakening demand. CEO Ian Bray said the business was tightly run and outlined a number of cost cutting measures including a glass light-weighting project; looking for efficiencies with suppliers; tight management of marketing budgets and continuous improvement of processes. Fentimans has previously voiced its concern about the impact on glass-bottled drinks producers posed by incoming rules that require them to fund the costs of recycling packaging waste, based on weight. Mr Bray also pointed to overseas exports helping build a solid foundation for the business. A breakdown of gross sales showed the UK saw a 6.4% fall to £20.2m as more promotional activity was needed to maintain volumes, which had been particularly effective over Christmas. Meanwhile gross export sales fell 8% to £16.1m as demand also waned in key international markets. Fentimans said it had changed several distributors with the aim of positioning itself for long-term growth. And in the US, gross sales plummeted from £23.8m to £3.3m - where the firm said there had been a reduction in volumes with existing customers. Within the accounts, the firm said 2025 is expected to bring a more stable inflationary environment but one with continued lacking demand. It plans to meet those challenges by expanding global distribution of its ranges. Mr Bray said: “This is a significant improvement on the previous year and a testament to the hard work of our fantastic team and quality of our products. We enter the new financial year with increased optimism despite some notable headwinds. Like all SMEs we are facing huge tax increases across the business this year, with the hike in employers' National Insurance, increases in the National Living Wage plus the introduction of an anti-competitive packaging tax on glass. "We will continue to push forward in 2025. This year will see us continue to focus on our strengths, with some exciting partnerships, product developments and opening more new international markets."
Shares in Rolls-Royce have begun to recover after shedding over £10bn in value following the announcement of President Donald Trump's tariffs. The Derby-based group's shares had reached an all-time high of 812p in mid-March before dropping to 635p on Monday, as reported by City AM. They have since started to bounce back, currently trading at around 666p, marking a 4.75 per cent increase. Despite the slump triggered by Trump's tariff announcement last week, it did not entirely erase the gains experienced when Rolls-Royce's share price soared from 606p to over 800p at the end of February and into March. This surge occurred as Rolls-Royce reinstated dividends and announced a £1bn share buyback programme after full-year profits significantly exceeded expectations. At the end of February, the FTSE 100 engineering behemoth proposed a 6p per share dividend for investors, its first payout since before the pandemic. This was announced as underlying profit hit £2.5bn, far surpassing a previous forecast of between £2.1bn and £2.3bn. Revenue of £17.8bn also outperformed analysts' consensus of approximately £17.3bn. On Friday, Rolls-Royce shares plummeted as much as 10 per cent amid escalating fears of a global trade war. The UK was hit with a ten per cent import tax during Trump's 'Liberation Day' speech, which set the baseline rate. The decline in the group's share price means the FTSE 100 giant is now valued at around £54bn. The last time it reached this milestone was in December 2024 and again in January of the current year. Rolls-Royce's share price has seen a partial recovery, contributing to the FTSE 100's opening 1.5 per cent higher this morning, bouncing back from losses over the past three trading days. Yesterday witnessed the FTSE 100 plunging more than four per cent as global stock markets grappled with the potential impact of a worldwide trade war. However, early deals this morning saw the market making a cautious recovery. The domestically-focused FTSE 250 leapt 1.6 per cent in early deals, while the Stoxx Europe index 600 climbed 1.4 per cent. Commodities-focused stocks on the FTSE 100 led the market upwards, buoyed by rising commodity prices. BP saw a 2.6 per cent increase, while mining companies Antofagasta and Glencore both rose by three per cent. US-focused tech stocks on the FTSE 100, such as Scottish Mortgage Investment Trust and Polar Capital Technology Trump, also posted strong performances this morning.
The number of U.S. homes that typically change hands as people relocate for work, retire or trade-up for more living space hasn’t been this low in nearly 30 years.Recommended VideoAbout 28 out of every 1,000 homes changed hands between January and September, the lowest U.S. home turnover rate going back to at least the 1990s, according to an analysis by Redfin.The home turnover rate represents the number of homes sold, divided by the total number of existing sellable properties. While sales data show whether more or fewer homes are selling in a given period, the home turnover rate helps illustrate how homeowners are staying put longer.“It’s not healthy for the economy that people are staying put,” said Daryl Fairweather, chief economist at Redfin.Consider, the home sales turnover rate through the first nine months of this year is down about 30% from the average rate over the same time periods between 2012 and 2022.Traditionally, opportunities such as a new job or the need for more space when starting a family motivate homeowners to sell and relocate. The fact that fewer homes are changing hands suggests they aren’t seeing as many opportunities for employment mobility, or perhaps can’t afford to sell and buy at today’s prices and mortgage rates.“If people are stuck, it’s reflective of how the economy is stuck,” Fairweather said. “We’re in a low-hire, low-fire labor market and I think that this goes hand in hand with that.”U.S. employers added just 22,000 jobs in August, according to the Labor Department, down from 79,000 in July and well below the 80,000 that economists had expected.Government hiring data is on hold during the shutdown, so the Labor Department’s tally of hiring in September was never released, but earlier this month a survey by payroll company ADP showed that the private sector lost 32,000 jobsin September.Meanwhile, several large companies, including Microsoft, General Motors, Amazon and Target, have announced job cuts.The slowing job market has many Americans increasingly concerned. That’s not a good recipe for home sales.Another factor keeping a lid on home sales: Many homeowners who bought or refinanced to rock-bottom mortgage rates in 2020 and 2021 have little incentive to sell and buy a home at current home loan rates.The U.S. housing market has been in a slump dating back to 2022, the year mortgage rates began climbing from historic lows that fueled a homebuying frenzy at the start of this decade.Sales of previously occupied U.S. homes sank last year to their lowest level in nearly 30 years. Sales have been sluggish this year, although they accelerated last month to their fastest pace since February as mortgage rates eased. The average rate on a 30-year mortgage fell this week to its lowest level in more than a year.While lower rates boost home shoppers’ purchasing power, borrowing costs remain too high for many Americans to afford to buy a home following years of skyrocketing prices. The median sales price of a previously occupied U.S. home has risen 53% over the past six years.
ShareResizeUBS marketing chief John McDonald will relocate from Zurich to London when he joins HSBC on 1 OctoberHSBC has hired UBS’s marketing chief John McDonald as the UK lender sets its sights on becoming a top wealth manager.As the bank’s first ever chief marketing officer, McDonald will oversee the bank’s marketing, branding and client engagement efforts across international wealth and premier banking and corporate and institutional banking, as well as its Hong Kong and UK businesses, the firm said in a 5 August statement.
The latest UK Purchasing Managers' Index (PMI) from S&P Global indicates a deepening crisis in the country's manufacturing sector. S&P Global's most recent PMI survey, which gathers data from approximately 600 industrial firms about their performance, suggests that manufacturing is once again on a downward trajectory after a disappointing start to the year, as reported by City AM. The latest figure reveals a drop to 44.9, slightly better than the anticipated 44.6 predicted by economists. This represents the lowest reading in 17 months, compared to an average of 51.7 between 2008 and 2025. Rob Dobson, director at S&P Global Market Intelligence, described the outlook as "darkening" with confidence plummeting across the sector. Dobson stated: "Companies are being hit on several fronts." He elaborated: "Costs are rising due to changes in the national minimum wage and national insurance contributions, geopolitical tensions are intensifying, and global trade faces potential disruptions from tariffs." He added: "Although the impact on production volumes was widespread across industry, it was again small manufacturers that took the hardest knock." The manufacturing sector had already begun to falter in the new year. The Confederation of British Industry (CBI) reported a decline in output in January, suggesting businesses were "conserving funds" in response to Reeves' tax raid, which includes increases to national insurance contributions (NICs). Employer taxes are scheduled to be implemented starting this week, with the threshold for paying the levy lowered to £5,000.
ShareResizePhoto: Getty ImagesThis is an online version of Financial News’s wealth management newsletter. To subscribe click hereEarlier this week, some of the Square Mile’s top executives joinedFinancial Newsat the London Stock Exchange to celebrate our landmarkSouth Asian Power Brokers list.
ShareResizeKnown for banking the Royal Family, Coutts wants to keep its focus on the UK's richestPhoto: Alex Segre/Getty ImagesCoutts, NatWest’s wealth manager for the super-rich, grew assets 8% in the latest quarter as the sector continues to be buoyed by rising markets.Assets at NatWest’s private banking and wealth management business, which includes Coutts, reached £56bn at the end of the third quarter, up 8% over the three months and 20% compared with the same period last year.
ShareResizeFormer Barclays executive Jerry Del Missier’s investment firm is looking to offload one of its businessesPhoto: Simon Dawson/Getty ImagesCopper Street Capital is sounding out potential buyers for its stake in wealth firm One Four Nine, according to people familiar with the matter.The buyout shop led by former Barclays executive Jerry Del Missier had previously met with a number of potential buyers, the people said, before pausing any process.
ShareResizeThe City institution is undergoing a raft of changes in its top teamPhoto: Timon Schneider/Getty ImagesRathbones is overhauling its leadership team months after its new chief executive Jonathan Sorrell took the reins of the business.Andy Brodie, chief operating officer, and Gaynor Gillespie, chief people officer, will exit the business to pursue opportunities elsewhere, the FTSE 250-listed wealth manager said in a statement.
The American Dream of buying a home is still alive, but the path to get there looks very different from decades past. Recommended VideoA Coldwell Banker report shared withFortuneshows a staggering 84% of Gen Z say they’re delaying major life milestones like getting married, having children, changing careers, and getting a pet, just to afford to buy a home.Harris Poll surveyed more than 3,000 U.S. adults on behalf of residential and commercial real estate firm Coldwell Banker, and found nearly all Gen Z (97%) and millennials (93%) want to buy a home someday, but the path to homeownership is increasingly difficult due to high home prices, mortgage rates, and other housing costs. “There’s no single fix” to making housing more affordable, Jason Waugh, president of Coldwell Banker Affiliates, toldFortune. Rather, it would take “declining mortgage rates, growing inventory, and moderating price growth.”“Beyond that, state and local programs offering down payment assistance and tax incentives can significantly ease the financial burden for first time buyers,” he added. “Many may qualify for support they’re not yet aware of.”Other recent data confirms just how difficult it’s been for younger generations to break into the housing market: In 2025, the share of first-time home buyers plummeted to a record low of 21%, while the typical age of first-time buyers climbed to an all-time high of 40 years, according to a National Association of Realtors report released last week.“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. “The share of first-time buyers in the market has contracted by 50% since 2007—right before the Great Recession.”The Coldwell Banker report also shows 53% of aspiring first-time homeowners don’t expect to buy their first home until they’re at least 40, suggesting milestones like starting families could be pushed back even further.The housing affordability crisisOne of the most frustrating aspects of today’s housing market is hopeful homebuyers can remember the sub-3% mortgage rates of the pandemic era. Now, home rates continue to hover over 6%, and home prices have skyrocketed about 50% in just the past five years, according to the Case-Shiller U.S. National Home Price Index.Meanwhile, Americans need to make about $141,000 to afford a median-priced home, according to a National Association of Home Builders report, but the average salary for a person in the U.S. is about half of that. “The income needed to buy a home in the U.S. “remains significantly higher than before the [COVID-19] pandemic, underscoring the ongoing challenge of affordability even as market conditions gradually rebalance,” Realtor.com Chief Economist Danielle Hale previously said in a statement.Gen Z is trying Although the path to homeownership “may be more complex for Gen Z,” Waugh said, they’re also a generation that’s resourceful and determined. Many Gen Zers are taking on side hustles for supplemental income streams, he said, and they’re also considering buying less ideal homes like something smaller of a fixer upper. Some are also moving to more affordable areas, cobuying with family or friends, or moving in with parents to save up to buy a home. Waugh gave an example of a 20-year-old client who chose to forgo college, began working at 17, and spent three years saving while living with his parents to save enough money to buy a house of his own.“This openness to multigenerational living and creative financial strategies suggests that—rather than being unattainable—the American Dream is being redefined by Gen Z to align with evolving economic realities,” Waugh said.
Aston Martin is under threat of a takeover by Canadian billionaire Lawrence Stroll, who plans to increase his stake in the car manufacturer by £52.5m. Stroll's Yew Tree Consortium is aiming to purchase 75m shares in Aston Martin at a seven per cent premium, which would raise his ownership of the car manufacturer to 33 per cent, as reported by City AM. However, the UK Takeover Code stipulates that anyone acquiring more than 30 per cent of shares in a company must make an offer to buy out the remaining shareholders. This could potentially force Stroll, who also serves as executive chair of the firm, to take over the last remaining car manufacturer on British markets. Aston Martin stated in a stock exchange announcement this morning that the investment would depend on the takeover limit for the firm being raised to 35 per cent. This would be achieved by seeking a waiver from the UK Panel on Takeovers and Mergers, as well as a resolution from other shareholders in the firm. Aston Martin's stock price has plummeted 45 per cent in the last six months as investors worry about the impact of US president Donald Trump's proposed tariffs on non-American car manufacturers. On Thursday, when Trump announced plans to impose 25 per cent tariffs on all car makers, the firm was the worst performer in the FTSE 250, falling seven per cent. "Five years into Aston Martin's transformation, I remain highly confident about the company's medium-term prospects having re-positioned the company as one of the most desirable ultra-luxury high performance automotive brands," Stroll remarked. Lawrence Stroll initially acquired a stake in Aston Martin in 2021 after his Yew Tree consortium invested £182m, securing him a 16.7% share of the luxury carmaker. By 2023, Stroll had bolstered his holding in Aston Martin to 27%. Moreover, today Aston Martin announced its intention to divest its minority interest in its Formula One team for £74m, despite valuing the stake at £50.9m at the end of the previous year. Notably, Stroll's son, Lance Stroll, competes for the Aston Martin F1 team. The disclosure of Stroll's planned acquisition precedes the release of Aston Martin's quarterly financial results, expected later this month.
ShareResizeSome clients of the the Bristol-based platform saw incorrect balances on their accounts on 11 SeptemberPhoto: James Beck/Getty ImagesThis is an online version of Financial News’s wealth management newsletter. To subscribe click hereSome Hargreaves Lansdown customers were given the fright of their lives before their morning cuppa today.
ShareResizePhoto: Jakub Porzycki/Getty ImagesThis is an online version of Financial News’s wealth management newsletter. To subscribe click hereThe battle for dominance in the UK’s wealth management industry has seen banks pulling out all the stops to entice wealthy Brits to do business with them.
It was more bad news for UK auto last week when President Donald Trump announced 25 per cent tariffs on all car imports to the US. This will have a huge impact on the UK and EU auto industry which was already being squeezed by falling sales in China, stagnant demand in Europe and slow electric vehicle (EV) take-up. It's nothing short of a perfect storm for the auto industry. Cars are the UK's number one goods export to the US, at £8.3 billion in the year to the end of quarter three in 2024, out of around £58 billion in total UK exports to the US. Firms like JLR, Rolls Royce, Bentley, Aston Martin, Mini, McLaren and Morgan will be most affected. The US is the UK's largest auto export market after the EU. There will be a particular impact on the West Midlands which is the number one exporting region to the US (think JLR and Aston Martin, for example). Much of the UK auto industry is already operating well below capacity and the tariffs will be a further hit for a struggling industry. Production cuts and job losses are likely. The Institute For Public Policy Research puts 25,000 jobs at risk. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. That is a big underestimate as it fails to account for tipping points if plants fall below minimum viability levels and close completely, with a further impact on the supply chain. You can double or triple that number in terms of the jobs at risk. The UK is looking to do a quick trade deal with the US to avoid tariffs hitting UK auto too much. I think that is doable in a narrow sense on cars as the UK has a ten per cent tariff on US imports. Both sides could scrap auto tariffs completely and both would see it as a win. That has to be a key, immediate goal for the Government. A broader trade deal to avoid Trump's ten per cent tariffs on all UK imports will be much more tricky and will see the US wanting concessions on the digital services tax, more access for US services to the UK in areas like health, and a deal on agriculture. Think chlorinated chicken and hormone injected beef. The Government has already ruled out the latter. To help the auto industry, Prime Minister Keir Starmer this week set out changes to the UK's Zero Emission Vehicle (ZEV) mandate. This was set out as a response to Trump's 25 per cent tariff but was anyway on the cards after a huge outcry from industry last year over policy and a quick-round consultation by the Government. These changes have rather cleverly been marketed as a response to Trump's Tariffs. Nevertheless, what the Government unveiled is useful as far as it goes. The ZEV mandate policy had been inherited from the previous government and was a dog's breakfast of a policy which risked fining domestic producers for not hitting overly optimistic mandated targets, with them then likely having to buy credits from the likes of Tesla and Chinese EV producers. Fining firms making investment in the UK was always a bad idea and giving auto makers more flexibility to hit the targets makes a lot of sense. Another welcome change is allowing hybrids like the Toyota Prius or Range Rover Evoque hybrid to be sold through to 2035 (after the 20203 ban on pure petrol and diesel cars). Hybrids are a good first step for many people and help in the transition to electrification. And 2035 as a target for this is fine: the average life of a car is 15 years so that still means we can be on track to get to Net Zero by 2035. Other good news came in the form of reducing fines for non-compliance and exempting smaller producers like Aston Martin. So far, so good. But what isn't clear is whether there is any new cash for speeding up the roll out of the charging infrastructure. The Government ‘reaffirmed' £2.3billion for a range of objectives including infrastructure (in other words just reannounced money that was already committed). While the government says it is on track to reach its target of 300,000 public chargers by 2030, many of these are in London and the South East. Elsewhere, the charging network is patchy and a big deterrent to EV take up. There are also some glaring gaps in the new policy stance. Firstly, there are no incentives to boost demand for EVs. If the Government wants to speed up the market for EVs, whacking the supply side with a big stick in the form of mandates is not enough. Carrots are also needed for the demand side. Think of temporary VAT cuts to make EVs more attractive and boost demand. Sadly, the Government's self-imposed fiscal straight jacket rules this out. But, even if the UK gets a trade deal with the US, Trump's tariffs will hit world trade, growth and demand for UK exports. There will be indirect effects on UK economic growth anyway which makes hitting Rachel Reeves' eye-wateringly tight fiscal rules even more challenging. At some point, they will need to be relaxed. Last but not least, the Government's early-awaited yet delayed industrial strategy is needed sooner rather than later. It has been delayed by the Government while it is being repainted from green to battleship grey as the drive to re-arm gathers pace given Europe's inability to rely on the US for defence under Trump. Boris Johnson sadly scrapped the last industrial strategy so as to ‘build back better'. Building back badly was perhaps a more apt description of what then unfolded as growth stagnated. Putting a strategy back in place is vital to help advanced manufacturing - and automotive - on a range of issues like attracting investment into making EVs, rebuilding the supply chain (including on batteries), retraining and reskilling workers and cutting energy costs. Starmer has said the world has changed and we need to respond. It has, and while the Government's announcements this week are welcome, much more will be needed going forwards if the auto industry is to thrive in the UK.
ShareResizeUK wealth firms, which are significantly cheaper than their US counterparts, look like especially attractive targetsPhoto Illustration: Julia Manga/iStockphoto/Getty ImagesThe blockbuster acquisition by a US rival of two of Britain’s biggest wealth managers is a sign that more transatlantic tie-ups are coming and consolidation of the UK wealth industry has further to run.Corient, a Miami-based private wealth manager, announced on 2 September that it had inked a deal to buy Stonehage Fleming and Stanhope Capital. The firm, which is backed by Mubadala Capital, is now the world’s largest non-bank wealth manager, the transaction having doubled its assets to $430bn, and given it a presence in Emea.
A major UK cheddar cheese supplier is considering axing some 60 roles at its dairy factory in Cornwall. Saputo Dairy UK, which manufactures brands such as Cathedral City and Wensleydale, is looking to reduce its workforce by 80, with the majority of jobs being cut at Davidstow Creamery, near Camelford. The company told Business Live it was proposing to stop making a number of ingredients for the baby formula market and instead return to producing sweet whey powder. The proposed job cuts will have no impact on the supplying farms or cheese production, it added. "We will consequently be entering into a period of consultation with a group of employees regarding these proposed changes," a spokesperson said. "Market conditions are such that we are having to take difficult, but decisive, actions to simplify the business and introduce meaningful efficiencies to ensure we are best placed for the future. "We will ensure that all employees who may be impacted by this proposal are well supported." Saputo Dairy UK has manufactured ingredients for the infant formula market since 2013, but said on Thursday (April 3) that demographic shifts and changes in demand for different whey formats mean it was no longer in the company's "best economic interests" to continue servicing that market. The changes are expected to be completed by the end of September 2025. Dairy Crest was acquired by Saputo, one of the top dairy processors in the world, in 2019 and rebranded as Saputo Dairy UK. In 2021, Saputo snapped up Wensleydale Creamery, which manufactures, blends, markets and distributes a variety of specialty and regional cheeses, including Yorkshire Wensleydale cheese. In 2022, the company launched Cathedral City Plant Based - a dairy-free alternative to cheese.
A proposal floated by the Trump administration to create a 50-year mortgage product to improve housing affordability could offer significant immediate savings to homebuyers, but at the steep cost of a doubled interest payment burden over the life of the loan, according to a recent analysis by John Lovallo of UBS Securities.Recommended VideoCaveating that many basic questions remain unanswered, a back-of-the-envelope calculation shows a clear trade-off between immediate monthly affordability and long-term debt accumulation. Based on Lovallo’s estimates, the extended loan term could lower the monthly payment on a median-priced home by roughly $119.While the short-term financial relief is meaningful for consumers struggling with current housing costs, the long-term fiscal penalty is severe. According to the UBS analysis, extending the loan duration from three decades to five decades could double the dollar amount of interest paid by the homebuyer on that median-priced home over the life of the loan. Furthermore, this significantly extended repayment schedule would substantially slow the rate of equity accumulation for the homeowner.This is a problem since the extraordinary length of this proposal poses another demographic complication. UBS points out the average first-time buyer just hit 40 years old. This age profile means many initial borrowers could die before their mortgage matures.“It’s typically not a goal of policymakers to pass on mortgage debt to a borrowers’ children,” Mike Konczal, senior director of policy and research at the Economic Security Project, told the Associated Press. The AP came to a similar calculation as Lovallo, finding the average borrower would pay an additional $389,000 in interest over the life of a 50-year mortgage compared to a 30-year.LendingTree conducted a similar analysis, with some eye-popping calculations. For instance, it found a $500,000 loan at 6.1% would rack up $1.1 million in interest. In case of home prices falling, it added, just imagine being underwater on a mortgage for such a long duration. While it may sound like relief, the outlet said in a statement toFortune, “it could trap borrowers in half a century of debt and delay wealth-building for an entire generation.”How the math breaks downUBS analysts on Lovallo’s team, including Spencer Kaufman and Matthew Johnson, based this calculation on a median-priced home of about $420,000, assuming a 12% down payment of $50,400, leaving a loan amount of $369,600. For comparison, the analysis posits a standard 30-year mortgage would carry a 6.33% interest rate, resulting in a monthly payment of $2,295.However, the 50-year product is estimated to carry a rate 50 basis points higher, at 6.83%. Despite this higher rate, extending the term to 600 months (50 years) would reduce the monthly payment to $2,176. This calculation suggests an increase to the average consumer’s buying power of almost $23,000, allowing them to afford a home priced up to $442,995 while keeping the monthly payment at the 30-year benchmark of $2,295.The viability and structure of the 50-year mortgage face several complicating factors. With Fannie Mae and Freddie Mac currently under conservatorship, they could potentially purchase these longer-term mortgages from lenders and then package them into securities to be sold to investors, assuming sufficient demand exists. The UBS analysts speculated amending the Dodd-Frank Act to allow 50-year mortgages to be classified as qualifying loans may be difficult, which would result in the longer-maturity loans carrying higher interest rates than the 30-year version.Infrastructure Investment?In concluding its initial thoughts on the proposal, UBS reiterated its finding from the end of a three-year study in early October: The housing market is so inefficient and frozen the one clear solution is direct government investment in housing infrastructure. The answer lies in, of all things, manufactured wall panels.In October, Lovallo’s team noted several damning facts: Housing affordability is close to the worst it’s been since the mid-1980s, per the NAR Affordability Index, while Federal Reserve research indicates construction is the “only major industry to have registered negative average productivity growth since 1987.” Finally, Lovallo’s team estimated a structural shortage of homes in the U.S. housing market of 7 million units.UBS suggested boosting the penetration of manufactured wall panels would be a meaningful strategy, generating up to a 30% reduction in framing days alongside a 20% reduction in waste. Construction costs would increase by $783 per unit, the UBS study found, suggesting reluctance on the private sector’s part.These calculations may be a moot point, as President Donald Trump seemed to downplay the idea, if not back away from it, in a Tuesday interview withFox News. He said it was “not a big deal” and it “might help a little bit,” as interviewer Laura Ingraham pressed him on an uproar among his base of voters about the proposal. ResiClub editor Lance Lambert noted the seeming unpopularity of the idea among his 11 takeaways in an analysis of the proposal.[This report has been updated to include mention of LendingTree’s analysis.]
ShareResizeThe Geneva-headquartered private bank has turned to a City law firm veteran for its latest hirePhoto: Bloomberg/Getty ImagesLombard Odier has hired a partner from law firm Charles Russell Speechlys to join its UK wealth team.Sophie Dworetzsky will become head of wealth planning UK when she arrives at the Swiss wealth manager on 22 September, the firm said in a release.
ShareResizePhoto: Smith Collection/Gado/Getty ImagesBank of America is rolling out a private markets programme for its super-rich clients as demand for the asset class continues to surge.Merrill Wealth Management and Bank of America Private Bank said they would provide ultra high net worth investors, who have a net worth of $50m or more, with exclusive access to private markets deals.
Dairy producers Arla Foods and DMK Group are set to merge in a move that will create a €19bn revenue group. The farmer-owned groups say the move - which is subject to regulatory approval - will create the strongest dairy cooperative in Europe. It follows collaboration between the two organisations, who say the merger will create a solid supply of milk and give it the financial muscle to invest for the future. Jan Toft Nørgaard, chair of Arla Foods, said: "The foundation of this partnership is formed by our shared values, and I am immensely proud of this proposed merger, which is a win-win for our cooperatives. The strength of both Arla and DMK Group lies in our shared commitment to quality and innovation, and I see DMK Group as the perfect partner in shaping a new and strengthened Arla, poised to lead in the dairy industry." Heinz Korte, chair of DMK Group, said: “We are proud of the planned merger with Arla, a cooperative that shares our commitment to innovation and optimal value creation. This partnership strengthens the resilience of our cooperatives and significantly contributes to strengthening the competitiveness of our farmers. Together, we can expand our reach for our dairy products, thus improving our offering and jointly driving the further development of innovative products for the benefit of our members." Arla Foods, which has its UK head office in Leeds, has revenues of €13.8bn and employs 21,900 people. Meanwhile DMK, which has its headquarters in Zeven, Lower Saxony, has revenues of €5.1bn and employs 6,800. Peder Tuborgh, CEO of Arla Foods, added: "DMK Group is the largest dairy cooperative in Germany and a very attractive partner that shares our core values. Our strong market positions and product portfolios complement each other very well and our strong partnership in recent years has proven that DMK Group is an ideal partner for Arla.
ShareResizeNew chief executive continues bid to simplify AberdeenPhoto: Alamy Stock PhotoAberdeen has struck a deal to sell its financial planning business to advice firm Ascot Lloyd.Chief executive Jason Windsor said the deal will help the £518bn fund group streamline and simplify its business structure.
President Donald Trump’s housing chief has strongly criticized Federal Reserve Chair Jerome Powell, labeling him a “maniac” and “deranged,” while blaming persistent high interest rates for widespread financial hardship among Americans. This fiery characterization comes as economic anxiety continues to grip the country, with housing costs climbing to levels not seen in decades.Recommended VideoThe remarks came from Bill Pulte, the director of the Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, calling into ResiDay, a residential real-estate conference hosted by ResiClub, the news and research outlet cofounded by formerFortuneeditor Lance Lambert.Pulte, whose family is one of the biggest names in corporate homebuilding, did not mince words about the Fed chair.“He’s really a maniac,” Pulte said when asked about his view on the impact of high interest rates on the mortgage market. “We’ve really got to get a good new Federal Reserve chair. I’m very confident that the president will pick somebody great. You know, I think Powell has just totally let it go to his head.”Pain in the mortgage marketPulte argued “it’s sad” and Powell is “not looking at the data” despite his reputation as a “straight shooter.” The data shows, according to Pulte, “inflation is way lower” and high mortgage rates are “really hurting a lot of people.” He added the climate in Washington, D.C. is something of a bubble.“When I’m there, it’s like this little vacuum, and you get caught in it,” he said. “And I think some of these guys, they go to D.C., and they just, they lose their minds.”The FHFA director argued Trump has a clear vision: “Maybe it’s because he goes out of town often,” but “these other people, like Powell, they’ve lost their mind.”He circled around by stressing high interest rates “are really, really hurting people.” The remarks underscore a growing frustration among Trump-aligned Republicans who argue the central bank’s aggressive rate hikes—and the slow recent pace of its rate cuts—have stifled growth and made homeownership less attainable .Since mid-2022 and the highest rate of inflation in 40 years, the Fed implemented sharp increases in the benchmark interest rate, which rippled through the housing sector, before relenting in mid-2025, cutting rates twice to date. Much of the Fed’s thinking was affected by what Powell called a “low-hire, low-fire” job market, in which layoffs are low, but so is hiring, especially for recent college graduates and minorities.The longest government shutdown in history, grinding on as Pulte was speaking at ResiDay, has actually deprived the market and the central bank of fresh data on the state of the economy, forcing many to turn to alternate measures. But to Pulte’s point, mortgage rates have remained stubbornly high, still over 6%, a contrast to the sub-3% rate enjoyed by the vast majority of mortgage holders in the national housing market.“Many homeowners are reluctant [to] put their homes on the market and give up the low mortgage rates they already have,” Berkshire Hathaway HomeServices said in late October about this so-called “lock-in effect.” Warren Buffett’s portfolio company said that: “To them, high price gains won’t mitigate their ability to pay more for another home at significantly higher interest rates.”And there is widespread evidence of pain in the housing market. Recent data show home affordability at its lowest point in decades. Earlier this week, the National Association of Realtors found the average age of the first-time homebuyer had crossed 40 years old for the first time.Tensions between Trump and Powell are not new. Trump himself sparred repeatedly with Powell during both his current presidential term and during his prior stint in office, repeatedly calling for lower rates and nicknaming the Fed chair as “too late.” Pulte said Powell’s looks are deceiving: “He looks like this calm, silent guy, but he’s deranged.”Changes for Fannie and Freddie?Pulte also talked vaguely about his plans for Fannie Mae and Freddie Mac, quasi-utilities that have been under government conservatorship since the Great Financial Crisis of 2008. Saying “we hold all the cards,” Pulte said he thinks Fannie and Freddie “will probably take ownership in different companies by virtue of companies offering them equity in exchange for Fannie and Freddie doing smart business constructs with them,” in a similar way to the government’s unprecedented investment into Intel.“We have a great dealmaker as president,” Pulte argued, citing Intel specifically as a change from the past when “politicians stupidly gave money to Intel and didn’t get anything in return.”At least we’re saying, ‘Yeah, we’re going to get something,'” Pulte added. He said the FHFA was similarly looking at taking equity stakes in companies that are willing to give it to us “because of how much power Fannie and Freddie have over the whole ecosystem,” adding that “what’s in the best interest of Fannie and Freddie is in the best interest of Americans, and it doesn’t matter if it’s not politically popular, it doesn’t matter if donors are going to be upset.”If it’s in the best interest in American people, we’re going to do it,” Pulte said.
ShareResize'Europe is probably the most important growth opportunity for us,' Adam Tejpaul tells FNPhoto: Getty ImagesJPMorgan is gearing up for a hiring spree of private bankers to try to attract more ultra wealthy clients in Europe, Latin America and Asia.Adam Tejpaul, chief executive of JPMorgan’s international private bank, toldFinancial Newsthat the New York-headquartered bank plans to recruit 200 wealth advisers outside the US next year.
ShareResizeApollo Emea wealth boss Veronique Fournier says it hopes to have two to three wealth advisers in its new Paris office by the end of 2026Apollo’s Emea wealth boss has said the private credit giant is “open” to partnerships with direct-to-consumer investment platforms as it looks to penetrate the retail wealth market.Veronique Fournier toldFinancial Newsthat the $840bn alternatives asset manager has traditionally partnered with distributors, such as global private banks, wealth managers, multi-family offices and independent financial advice firms.
The store that kinda just appears one night in your local mall like an apparition only has a few months to make a year’s worth of revenue. But thanks to its ~1,500 pop-up locations and 50,000 seasonal workers, Spirit Halloween remains the king of spooky spending.The early aughts mall icon Spencer Gifts bought Spirit in 1999, and when current Spencer’s CEO Steven Silverstein started in 2003, the Halloween retailer had just 130 stores around the US. Moody’s Ratings recently estimated that Spencer’s and Spirit made about $1.9 billion in 2023—with with Spirit bringing in more than Spencer’s.The key to success, which has long been immortalized in memes, has been Spirit’s commitment to scooping up short-term leases, especially after bankrupt big-box stores leave:The company has always chased nontraditional, monthslong leases, for which commercial landlords usually charge higher fees. But the growing number of big-box vacancies in the last decade has given Spirit more leverage.Most retailers sign leases at the beginning of the year, so by midsummer, when Spirit is hunting for empty buildings, there isn’t much competition for whatever’s available.Looking ahead…the company will open 30 pop-up Christmas locations after all the scary innuendo costumes are packed up.—MMThis report was originally published byMorning Brew.
ShareResizeMark FitzPatrick, CEO of St James's Place, which is the UK's largest wealth managerIt’s a great time to be an investor in one of Britain’s wealth managers. After years of disappointing performance, UK-listed wealth firms are finally delivering double-digit returns.St James’s Place, the biggest of the bunch with £212.4bn in assets, has seen its share price shoot up around 60% this year. Meanwhile, FTSE 250-listed Quilter and Rathbones are up 19% and 9% year-to-date, respectively.
ShareResizeBusily going nowhere: SPW had £15.7bn of assets at the end of 2024 — just 20% more than it started out with in 2019Photo: AlamyWe’re celebrating one year of FN Wealth Management with exclusive news, features and interviews. Sign up to our weekly email to read all our coverage of the sector.When Lloyds Banking Group called time on its ill-fated Personal Wealth joint venture with Schroders in October, the decision brought the curtain down on a six-year relationship between two City titans.
The UK Government has announced a series of initiatives aimed at supporting the automotive industry amidst challenges posed by US tariffs and the transition to electric vehicles. Already lobbying for modifications to the electric vehicle mandate, the car sector was hit hard by the imposition of a 25% tariff on exports to the US. In response to concerns over potential job losses, the Government has introduced a range of measures designed to bolster this crucial sector. A key element includes easing the targets for electric vehicle sales, after Nissan highlighted that stringent goals could jeopardise the 'viability' of its UK presence, including its Sunderland plant. Prime Minister Sir Keir Starmer said: "Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change. I am determined to back British brilliance. Now more than ever UK businesses and working people need a Government that steps up, not stands aside. "That means action, not words. So today I am announcing bold changes to the way we support our car industry. This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride. And it will boost growth that puts money in working people's pockets, the first priority of our Plan for Change." Business Secretary Jonathan Reynolds, said: "This pro-business Government is taking the bold action needed to give our auto sector the certainty that secures jobs, drives investment and ensures they thrive on the global stage. Our Industrial Strategy will back the country's high growth sectors, including advanced manufacturing, so we can grow the economy and deliver on the promises of our Plan for Change." In a move to support car manufacturers towards the 2030 target for ending the sale of petrol and diesel vehicles, changes have been made to the zero emission vehicle mandate that introduce increased flexibility during the transition period and extend the allowance for hybrid usage. Several smaller companies like McLaren and Aston Martin are set to benefit from exemptions within these targets. It has been reported that fines for manufacturers for each non-compliant vehicle sold will be lowered from £15,000 to £12,000. Nissan, which mainly exports its Sunderland-manufactured vehicles into Europe and therefore less susceptible to US tariffs, has revealed a trio of models—including the new generation Leaf, an all-electric Juke and the reintroduction of the Micra—all of which are expected to perform strongly in European markets. The company's recent publications showed a significant boost in its UK operations, with production scaling up to 325,000 vehicles and revenues climbing to £7.3bn in their 2024 accounts. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT) welcome the measures to support car manufacturers in the switch to electric vehicles as a '"really needed" step. Speaking on BBC Radio 4's Today programme, he said: "No one in the industry is denying that ultimately, we need to get to zero emission road transport but the underlying level of consumer demand just doesn't match those ambitious targets. It was a step that was really needed for this industry because the amount of pressure, financial pressure, that they're under from any number of global headwinds is severe at the moment." However, Robert Forrester, CEO of Gateshead-based listed motor retailer Vertu, said the Government's announcement "doesn’t really address the major issues". He said: “We have got 34 different global manufacturers and clearly the tariffs in the US have put most of those manufacturers under more pressure at a time when there was already pressure in the system. That’s why the Government has actually made this announcement. I’m not sure it actually goes far enough to address what will be quite significant issues in the years ahead. "The electric vehicle targets up to 2030 remain in place, the fines have been changed but it’s still a £12,000 fine for every petrol and diesel car up to 2030 that is sold above the zero emissions target - that’s billions of pounds to manufacturers - and manufacturers face a choice of either paying significant fines or rationalising petrol and diesel cars. Nothing has really changed here, this is real tinkering.
ShareResizeListen(4 min)Photo: Getty ImagesThis is an online version of Financial News’s wealth management newsletter. To subscribe click hereFN Wealth Management turns one this week. It’s hard to believe that it’s only been a year since we launched our dedicated coverage of the sector.I’m immensely proud of what we’ve achieved so far. We’ve broken some of the biggest people moves this year, includingCamilla Stowell’s exit from Coutts,a major overhaul at the top of JPMorgan’s private bank in Emea, theresignation of UBS’s UK high net worth bossandJonathan Leach’s promotion to run Citi’s UK private bank.Newsletter Sign-upWealth ManagementAll the latest updates from private banking, family offices, discretionary fund management and morePreviewSubscribeOur subscribers have also been treated to exclusive interviews with some of wealth’sbiggest namesand up and comers, as well as deep dives spanning comeback plans atJulius BaerandSt James’s Place,UBS’s growth ambitions in the USandHSBC’s wealth hiring spree.To mark our one-year anniversary, Financial News is bringing our subscribers a bevy of special content over the coming weeks.Up first, we’ve got a fresh analysis of how wealth managers arequietly tapping into the private markets boom.They may have been slow to get out the gate thanks to operational hurdles, which have wedded them to daily-dealing funds. But the rise of new evergreen fund structures, which permit investors to retrieve their money on a monthly, quarterly or semi-annual basis, is opening up the possibility of broadening exposure to retail investors.read moreWhy Apollo is open to new types of wealth partnershipsFCA warns over conflicts of interest and debt levels among wealth consolidatorsMultiple senior executives at private capital firms told FN that Britain’s biggest wealth managers were ready to start allocating to unlisted investments such as private equity and private credit. Some are months out from launching their own products.However, this “turning point” for private assets comes as regulators and major investors sound the alarm over a possible mis-selling scandal, fresh off the collapse of First Brands and Tricolor in the US.If you want to read that, and the rest of our exclusive coverage of the sector, you’ll need to be anFNsubscriber. You can request a free trial by emailing licensing@fnlondon.com. You can find our weekly newsletter here too.What the hell happened?Next, my colleague Justin Cash and I ask: ‘What the hell happened to Schroders Personal Wealth?’Documents seen by FN show that the Lloyds Banking Group and Schroders joint venture had lofty ambitions of hitting aggressive profit targets and thought its charging model would see it “capture more margin than any of its peers”.Article continues belowThat did not come to pass, despite significant cross-selling efforts and major tech upgrades.Rathbones wealth CEO Camilla Stowell advises women in the City to 'do it your way'Speaking of exclusive interviews,FNcaught up with ex-Coutts private banking boss Stowellfresh into her new role at Rathbones.She shared her predictions for wealth management in 2026, her advice for women starting their careers in finance, and her favourite City haunt.We’ve also got a scoop about acorporate bond push at RBC’s wealth arm, and op-eds on everything fromprivate equity’s pursuit of the sectortothe impact of AIand therace for global wealth.Evelyn Partners sale updateElsewhere, Evelyn Partners has joined the string of wealth managersjumping on the AI bandwagon.FNrevealed today thatGoldman Sachs has been added to the roster of adviserstrying to get a sale of the UK wealth giant over the line.Meanwhile,Citi lost another wealth leaderas Hannes Hofmann, the global head of its family office business, departed the Wall Street bank.To close out, I want to give a huge thank you to all of our newsletter subscribers, who have come along for the ride.Newsletter Sign-upWealth ManagementAll the latest updates from private banking, family offices, discretionary fund management and morePreviewSubscribeYour feedback and enthusiasm for our wealth management endeavour has meant the world.Want to read all of our exclusive coverage of the sector? Request a free trial by emailing licensing@fnlondon.com.Write toKristen McGachey at kristen.mcgachey@dowjones.com
ShareResizeLloyds' joint venture with the fund giant has trimmed staff costs amid an uncertain futurePhoto: Chris Ratcliffe/Bloomberg/Getty ImagesHeadcount at Schroders’ wealth tie-up with Lloyds slumped by nearly 10% in 2024, as it looked to shore up costs and bounce back from a year of losses.Average staff numbers at Schroders Personal Wealth fell from 885 to 814 last year, latest accounts show.
ShareResizePrivate equity firms are eyeing alternative sources of money from the private wealth industryPhoto: Getty ImagesBuyout bosses are facing a swathe of questions from their institutional investors as the flood of retail money raises uncertainty for their traditional backers.Limited partners have been handed a list of nearly 50 suggested questions by their trade body to ask private equity managers during meetings.
ShareResizeQuilter’s assets under administration and management during the first half were up 12% compared to the same period in 2024Photo: Alamy Stock PhotoQuilter, the FTSE 250 wealth firm, has recorded a bounce back in its total assets to £123.4bn over the first half of the year, having previously taken a hit from US president Donald Trump’s global tariffs.The firm’s assets under administration and management were up 12% during the period, compared to £110.6m during the same six months in 2024, according to interim results published on 6 August.
After years of living on the street and crashing on friends’ couches, Quantavia Smith was given the keys to a studio apartment in Los Angeles that came with an important perk — easy access to public transit.Recommended VideoThe 38-year-old feels like she went from a life where “no one cares” to one where she has a safe place to begin rebuilding her life. And the metro station the apartment complex was literally built upon is a lifeline as she searches for work without a car.“It is more a sense of relief, a sense of independence,” said Smith, who moved in July. She receives some government assistance and pays 30% of her income for rent — just $19 a month for an efficiency with a full-market value of $2,000.“Having your own space, you feel like you can do anything.”Metro areas from Los Angeles to Boston have taken the lead in tying new housing developments to their proximity to public transit, often teaming up with developers to streamline the permitting process and passing policies that promote developments that include a greater number of units.City officials argue building housing near public transit helps energize neglected neighborhoods and provide affordable housing, while ensuring a steady stream of riders for transit systems and cutting greenhouse gas emissions by reducing the number of cars on the road.“Transit-oriented development should be one of, if not the biggest solution that we’re looking at for housing development,” said Yonah Freemark, research director at the Urban Institute’s Land Use Lab, who has written extensively on the topic.“It takes advantage of all of this money we’ve spent on transportation infrastructure. If you build the projects and don’t build anything around the areas near them, then it’s kind of like money thrown down the drain,” Freemark said.Transit housing projects from DC to LAThe Santa Monica and Vermont Apartments where Smith lives is part of an ambitious plan by the Los Angeles County Metropolitan Transportation Authority to build 10,000 housing units near transit sites by 2031 — offering developers land discounts in exchange for affordable housing development and other community benefits.In Washington D.C., the transit authority has completed eight projects since 2022 that provided nearly 1,500 apartments and a million square feet of office space. About half were in partnership with Amazon, which committed $3.6 billion in low-cost loans and grants for affordable housing projects in Washington, as well as Nashville, Tennessee, and the Puget Sound area in Washington state. Almost all are within a half-mile of public transit.“Big cities face the greatest challenges when it comes to traffic congestion and high housing costs,” Freemark said. “Building new homes near transit helps address both problems by encouraging people to take transit while increasing housing supply.”Among projects Boston has built, the Pok Oi Residents in Chinatown is a 10-minute walk to the subway and a half-dozen bus stops. That’s a draw for Bernie Hernandez, who moved his family there from a Connecticut suburb after his daughter got into a Boston university.“The big difference is commuting. You don’t need a car,” said Hernandez, who said he can walk to the grocery story and pharmacy. His 17-year-old daughter takes the subway to school. Now, his car mostly sits idle, saving him money on gas and time spent in traffic.“You get to go to different places very quickly. Everything is convenient,” Hernandez said.States take aim at zoning regulationsStates from Massachusetts to California are passing laws targeting restrictive zoning regulations that for decades prohibited building multifamily developments and contributed to housing shortages.Last month, California Gov. Gavin Newsom signed a state law allowing taller apartment buildings on land owned by transit agencies and near bus, train and subway lines.“Building more homes in our most sustainable locations is the key to tackling the affordability crisis and locking in California’s success for many years to come,” said State Sen. Scott Wiener, a Democrat who authored the bill.California joins Colorado, which requires cities to allow an average of 40 housing units per acre within a quarter-mile of transit, and Utah, which mandates about 50 units per acre. In Washington, the governor signed a bill this year allowing taller housing developments in mixed-use commercial zones near transit.“We want to ensure that there are mixed-income, walkable, vibrant homes all around those transit investments and that people have the option of using cars less to improve the environmental health of our communities,” said Democratic Rep. Julia Reed, who authored the Washington bill.“It’s about giving people the opportunity to drive less and live more.”Housing takes center stage in MassachusettsMassachusetts Democratic Gov. Maura Healey has made housing a priority.Among her most potent tools is a 2021 law that requires 177 towns or communities nearby to create zoning districts allowing multi-family housing. The state provided nearly $8 million to more than 150 communities to help create these zones, while threatening to cut funding for those that don’t. More than 6,000 housing units are in development as a result.“You put housing nearby public transit” Healey said. “It’s great for people. They can literally get up, leave their home, walk to a commuter rail and get to work.”Among the first to comply was Lexington, which has approved 10 projects, including a $115 million complex with 187 housing units and retail space.Walking past earth-moving equipment and dump trucks at the construction site earlier this year, project manager Quinlan Locke said: “This is a landscape yard. It’s commercial. It’s meant for trucking.”But, he added, in “two years from now, it’s going to be meant for people who live here, work here and play here. This is going to become someone’s home.”Opposition to zoning changesSome advocates argue the lofty goals of transit housing are falling short due to fierce local resistance and lack of funding and support at the federal and state levels.Higher mortgage interest rates, more government red tape, rising construction costs and lack of investment at transit stations also have contributed to a troubling trend — nine times more housing units built far from public transit versus near it in the past two decades, according to a 2023 Urban Institute study.In Massachusetts, 19 communities still haven’t created new zones. Some unsuccessfully sued the state to halt the law, while residents rejected new zones in others. Lexington eventually shrank its zone from 227 acres to 90 acres after residents complained.“If we allow the state to come in and dictate how we zone, what else are they going to come in and dictate?” said Anthony Renzoni, a selectman from the town of Holden, which sued the state and is drawing up a new zoning map after residents rejected the first one.New housing, a new lifeIn Los Angeles, the six-story complex where Smith lives in East Hollywood is home to 300 new residents since opening in February. It’s revitalizing the area around the metro site, with a Filipino grocery, medical clinic and farmers market opening early next year.Half the 187 units are reserved for formerly homeless residents like Smith, who had been living in a rundown motel paid for with a voucher and before that on the street. She’s been assigned a case worker and is getting help with basic life skills, budgeting and finding work.Equally important: Smith, who can’t afford a car, doesn’t need one.“I’m very very fortunate to be somewhere where the transit takes me where I want to go,” she said. “Where I want to go is not that far.”
ShareResizeMonument Bank is targeting a New York listing, according to reports, but its CEO Ian Rand says the fast-growing digital lender hasn't discounted LondonMonument Bank has not ruled out an IPO on the London Stock Exchange, even as it eyes a potential float in New York, its chief executive has toldFinancial News.Former Barclays executive Ian Rand confirmed the UK challenger bank would pursue an IPO in the coming years. But he added that a decision has not been made about where the firm will list.
West Country-headquartered eyewear firm Inspecs says Donald Trump's tariffs are not expected to impact consumer demand and it is monitoring the situation "closely". The Bath-based company said its non-US-based businesses were not currently affected by the recent changes announced by the US President and that selective pass-through of cost increases would "largely mitigate" the situation. It also said it was focused on delivering operational efficiencies. Inspecs designs and manufacturers eyewear, frames and lenses, with many produced in countries such as China, which have been slapped with high tariffs by President Trump. The company only opened a new factory in Vietnam last year. "Notwithstanding the recently announced tariffs and caution in relation to market conditions, compelling new projects in the pipeline give us confidence in delivering on market expectations for 2025," said chief executive Richard Peck. In a set of unaudited preliminary results for the year ended December 31, 2024, Inspecs reported a group revenue decrease of 2% to £198.3m. Total operating expenses were reduced by 0.3% despite inflationary pressures, the firm said on Thursday, while underlying EBITDA - a measure of performance - reduced by 2.2% to £17.6m. Inspecs said it expected a "significant drop" in net finance costs in 2025 amounting to around £700,000 and that trading was in line with market expectations. "Inspecs demonstrated resilience in 2024 despite challenging macroeconomic conditions," said Mr Peck. "However, our continued focus throughout the year on the integration and simplification of our business has been significant. "We successfully got our new factory in Vietnam up and running, which has significantly improved our capacity. We also strengthened our brand portfolio by introducing several new brands and expanding our existing ones, all the while working on our supply chain and efficiencies. "Additionally, we have focused on growing our customer base in key markets. These strategic initiatives allowed us to improve our margins, maintain our administrative costs in an inflationary environment, and reduce our net debt, setting us up well for the future." Mr Peck said the first quarter of 2025 had "laid the groundwork" for a "pivotal" year for the company. He added: "As we move forward, the focus remains on sharpening efficiency, streamlining operations, and advancing key initiatives."
ShareResizeThe watchdog’s multi-firm probe examined how major consolidators of wealth managers and financial advisers are managing risks, debt and integration following an acquisitionPhoto: Bloomberg via Getty ImagesThe Financial Conduct Authority has sounded the alarm over potential conflicts of interest and high debt levels in its landmark review into M&A deals in the UK wealth sector.The watchdog’s multi-firm probe, which was launched last October, examined how major consolidators of wealth managers and financial advisers — such as private equity firms — are managing risks, debt and integration following an acquisition.
Shares in FTSE 100 heavyweight Rolls-Royce are on the rise, having now regained more than half of their value lost following President Donald Trump's tariff declarations. The Derby-based group's shares are currently trading at approximately 734p, marking an increase of over 10 per cent since the start of today's trading, as reported by City AM. This is a significant recovery from Monday's recent low of 635p. Prior to Trump's tariff announcement last week, Rolls-Royce shares had been trading at a record high of 812p in mid-March. The partial recovery coincides with a surge in the FTSE 100 – as markets opened this morning following President Donald Trump's tariff backtrack on Wednesday. London's blue-chip index saw gains of over six per cent – a rise of nearly 500 points. This followed the FTSE closing down three per cent yesterday, before Trump sent global markets skyrocketing with a 90-day halt on his 'Liberation Day' levies. Wall Street also made a comeback on Wednesday following the news. The S&P 500 rallied 9.5 per cent and the Dow Jones 7.9 per cent. The Nasdaq soared over 12 per cent as major tech giants reversed losses. Apple was up 15 per cent and Tesla 22 per cent. In other news, at the end of February, Rolls-Royce proposed a 6p per share dividend for investors, marking its first payout since before the pandemic. This came as underlying profit reached £2.5bn, significantly ahead of a previous forecast of between £2.1bn and £2.3bn. Revenue of £17.8bn also surpassed analysts' consensus of around £17.3bn.
ShareResizeWhat’s behind the Cirencester-based wealth giant’s rebound?Photo: Mike Kemp/Getty ImagesThis is an online version of FN’s weekly wealth management newsletter. To subscribe, click hereSt James’s Place has enjoyed a reversal in fortunes in more ways than one. Itschief executive Mark FitzPatrickhas engineered a comeback at the wealth giant by slashing costs and overhauling its complex charging structure.
An identity card manufacturer has won a “six-figure” investment that it says will “future-proof” it for years to come. Company Cards Ltd, which trades as Swype, pioneered the digital printing of ID cards in the UK. The St Helens business was the first to beta test a digital printing press for Hewlett Packard 25 years ago – and will use its latest funding to invest in more HP equipment as it looks to continue its “significant sales growth”. Swype has won the funding through NPIF II – FW Capital Debt Finance, managed by FW Capital as part of the Northern Powerhouse Investment Fund II (NPIF II). The investment will be used to buy a new digital press and to expand into green and renewable printing options including PVC-free and even wooden cards. Swype's website showcases recent projects including membership cards for St Helens rugby league club and gift cards for Champneys health spas, with whom Swype has worked since 2012. Tim Scott, managing director and founder of Swype, said: “We operate in a very capital-intensive industry and all the machinery we use is expensive. It’s important that we remain at the cutting edge and this investment enables us to achieve this, enhancing and increasing our productivity, quality and capacity. “The new Hewlett Packard HP Indigo 7900 digital press will future proof the printing side of the business for the next 8-10 years. We’ve swiftly installed the press, modifying the room with no disruption to the day-to-day operations which has meant our clients have been able to take advantage of this seamless transition. We’ve found FW Capital to be very supportive and this investment will also assist our expansion into green and renewables card options with recycled PVC, board cards, wooden cards and PVC-free cards.” Barry Wilson, investment executive at FW Capital said: “With this latest printing press Swype are continuing a relationship they have had with Hewlett Packard for over 25 years. Using NPIF II investment we’ve been able to provide working capital support to help Swype invest in the business, expand their offering and product efficiencies with this new printing press. "It’s also exciting to hear about their plans to expand their eco-friendly card options too which is an area where demand is increasing. We look forward to following Swype’s progress over the coming months and years.”
ShareResizeBuyout shops are looking at the human-capital-driven services industries for their next roll-up targetsPhoto: Getty ImagesWe’re celebrating one year of FN Wealth Management with exclusive news, features and interviews. Sign up to our weekly email to read for all our coverage of the sector.Callum Pirie is a director for financial services and fintech investment banking at Houlihan Lokey
ShareResizeThe battle for top wealth talent is intensifying at global banksPhoto: Mike Kemp/Getty ImagesCitigroup veteran Selim Elgen has joined JPMorgan’s private bank in the Middle East,Financial Newshas learned. Elgen will be based in JPMorgan’s Dubai office and will look to expand the US bank’s book of ultra wealthy families in the Middle East and North Africa region, people familiar with the matter toldFN.
ShareResizePrivate banks are looking to broaden their investor base into alternativesPhoto: Michael Nguyen/Getty ImagesAs banks continue their push into private markets, a landmark partnership struck by Deutsche Bank last month could be the first of many.Deutsche’s wealthy clients will be able to invest in unlisted assets as part of a fund launched with in-house asset management arm DWS and private markets giant Partners Group on 23 September.
ShareResizePhoto: SOPA Images/LightRocket via Getty ImagesOctopus plans to accelerate its push into the UK retail wealth market following a deal to buy Virgin Money’s investment arm.Octopus Money, the group’s online investment platform, has agreed to purchase Virgin Money Investments subject to approval by the Financial Conduct Authority, it said in a statement on 5 August.
Investors including billionaire Jorge Perez have plans to build luxury condo towers on a lot they bought for $180 million on Fisher Island in South Florida. Miami-Dade County officials, suddenly panicked about the effect on the local economy, are trying to stop them. Recommended VideoThe parcel is the last sliver of land available for high-end residential development on the posh island, which was recently named the most expensive ZIP code in the US. But it also houses a 700,000-barrel fuel depot that’s crucial for Miami’s port, the world’s largest hub for passenger cruises and a bustling cargo facility. The developers plan to replace the fuel terminal with condos. “This is an existential crisis,” Miami-Dade County Commissioner Raquel Regalado said at a meeting last month, citing the port’s importance as an economic juggernaut.County officials, under fire for failing to head off a real estate deal involving critical infrastructure, are rushing to find a solution and in some cases calling for legal action to force a sale of the land to the government. But the developers are plowing ahead even as mediation talks are ongoing: They shared plans with Bloomberg News to build two 13-story “ultra-luxury” condo towers.“It’s the last masterpiece to complete the island,” said Jon Paul Perez, Related Group’s chief executive officer. He’s the oldest son of Jorge Perez, whose long career developing residential projects in Miami earned him the moniker of “condo king.” Next door to the new site on Fisher Island, Related Group is completing a condo building in which it sold two penthouse units for $150 million. The deal for the new lot closed last month. A joint venture between Related Group, HRP Group, Raycliff Capital and GFO Investments bought the land from a fuel-terminal operator at a record price for Fisher Island, capping over a year of working with local authorities on the proposed development. The land will require environmental cleanup. Penthouses in the planned towers are expected to be priced at around $100 million, said Bippy Siegal, CEO of Raycliff Capital. On a square-foot basis, the condos — which will all be corner units with ocean views — will probably start at about $5,000 per square foot and “handshakes have already been done” for sales, Siegal said. Jon Paul Perez said he estimates the project will have a total sell-out value of about $2 billion. The land sale came with a two-year leaseback agreement with the fuel-depot operators. Developers expect to break ground in 2027 and complete the luxury towers about three years after that, adding residential units to an island that has been home to celebrities such as Oprah Winfrey and tennis star Caroline Wozniacki. Before the backlash from Miami-Dade County, the developers spent 18 months in talks with the island’s famously finicky community association and its country club – a process they called a “heavy lift.” While they said about 30% of residents opposed the project, citing worries about traffic and crowding in the exclusive enclave, many were eager to get rid of the fuel depot. One person’s eyesore is another person’s lifeline, however. In September, Royal Caribbean Cruises Ltd. CEO Jason Liberty pleaded with county commissioners to keep the fuel facility intact, calling it “the backbone” of port operations. Flanked by other cruise industry leaders, he warned that no major ports in the US operate without their own fuel bunkering. A formal mediation process began Oct. 20. PortMiami’s director, Hydi Webb, said the property serves an “essential public purpose.” The port is reviewing options for building a new fueling site and “continues to actively pursue a path for potential acquisition of the Fisher Island site,” she said. The developers said they were “committed to constructive, good-faith dialogue with PortMiami and Miami-Dade County to advance our shared goal of strategic, sustainable economic growth for the port, the county, and our planned residential development.” Fuel AlternativesCounty commissioners were caught off guard when they were called into a special meeting in September to first discuss the issue. They have been seeking answers from Miami-Dade County Mayor Daniella Levine Cava and her staff, as well as from port leaders, who acknowledged that the issue should have been raised when the property went on the market. In an Oct. 9 meeting, Cava said officials were studying different alternatives but warned that there weren’t any viable options to replace the facility without hurting cargo and cruise operations. The port itself is also located on an island, and the county estimated it would need six to 10 contiguous acres (2.4 to 4 hectares) to build a new fueling hub. That kind of space doesn’t exist on the port’s island or the densely populated surrounding areas. Cava told commissioners that the developers had offered to build and fund a new $200 million fueling facility on the port, although there’s a lack of space. She said that previously they’d offered to lease the Fisher Island facility back to the county at a rate that would have added up to a tally of $1 billion over 30 years.Miami competes for ship traffic with Port Everglades in Fort Lauderdale, along with cruise and cargo ports in Cape Canaveral, Tampa and Jacksonville. Officials and cruise-line professionals warned that Miami would be at a sizable disadvantage if it loses on-site fuel bunkering. Commissioner Eileen Higgins, who will compete in a runoff to be the next mayor of Miami, said she was in favor of moving forward with eminent domain procedures, which allow the government to pay a market-rate price for property that’s of critical public interest. The county is “negotiating with the worst possible scenario,” now that the developers’ land deal closed, Higgins said. “We do not need luxury buildings to ruin this economic vitality that is PortMiami.”
ShareResizeJames Whittaker said he would continue to grow headcount as Deutsche Bank wins more ultra rich clients in the regionDeutsche Bank is eyeing further hires for its UK wealth business as it ramps up its push in the ultra high net worth space.James Whittaker, head of the private bank in the UK and Nordics, toldFinancial Newshe would continue to grow headcount as the German lender wins more ultra rich clients in the region.
Shares in the FTSE heavyweight Rolls-Royce plummeted by as much as 10% on Friday amid escalating fears of a global trade war. The global markets took a hit after China declared a 34% retaliatory tariff against the US. As a significant exporter of aircraft and marine engines, as well as power systems, Rolls-Royce saw its stock price drop to a one-month low of 682p, as reported by City AM. The company's operations are deeply integrated into the global supply chain, relying on components from various countries and distributing finished products across the globe. The FTSE 100 experienced a sharp decline of up to 3.8%, while the FTSE 250 dropped over three percent. During Trump's 'Liberation Day' speech, the UK was targeted with a ten percent import tax, which was set as the baseline rate. Russ Mould, investment director at AJ Bell, commented on the market situation: "With markets having suffered their worst week in five years, investors were hiding under their duvet on Friday hoping the pain would go away." He observed that the relentless selling persisted, with markets falling across Asia and Europe and futures prices indicating that the US would follow suit once trading commenced. Mould pointed out that "countless sectors" would feel the impact of the economic upheaval, but the complexity of the "moving parts" made it challenging to "know where to begin to comprehend the situation." The European markets also felt the sting of these escalations, with Germany's Dax dropping nearly five percent and France's Cac 40 plunging over four percent. In his speech, Trump declared a 20% tariff rate on EU imports to the US. The President stated that the "worst offenders" would face the highest levies, reiterating his claim that the US had been "taken advantage of."
The Trump administration is moving forward with a plan to introduce a 50-year fixed-rate mortgage, a reform officials believe could make homeownership more feasible for millions of Americans amid soaring prices and mounting affordability concerns.Recommended Video“Thanks to President Trump, we are indeed working on The 50-year Mortgage – a complete game changer,” Federal Housing Finance Agency Director Bill Pulte said Saturday in a statement released on social media.His announcement came after Trump shared a graphic online comparing his proposal to the 30-year mortgage policies championed by President Franklin D. Roosevelt during the New Deal.With 30-year fixed rates remaining stuck above 6% for more than three years, high homeownership costs have kept many would-be homebuyers out of the market. According to Redfin data, the median U.S. household is currently spending approximately 39% of its monthly income on mortgage repayments—well above long-term affordability benchmarks.Meanwhile, the “lock-in effect” has prevented many prospective sellers from putting their homes on the market because they don’t want to give up the ultra-low rates they secured before borrowing costs jumped in 2022. The result has been housing market gridlock that’s putting ownership out of reach for younger Americans and worsening overall affordability.As buyers seek alternatives amid elevated rates and unprecedented home values, adjustable-rate mortgages are in more demand and now account for 10% or more of mortgage applications, the highest since 2021, according to the Mortgage Bankers Association.Pulte has blamed Federal Reserve Chairman Jerome Powell, who hiked interest rates to curb inflation but has since resumed easing cautiously, saying on X.com that he is keeping rates “artificially high.”He also said the administration is “laser focused on ensuring the American Dream for YOUNG PEOPLE and that can only happen on the economic level of homebuying. A 50 Year Mortgage is simply a potential weapon in a WIDE arsenal of solutions that we are developing right now. STAY TUNED!”How a 50-year mortgage would work—or notAt its core, the proposed 50-year loan product targets lower monthly payments by extending the standard amortization period. For instance, Fannie Mae’s calculator estimates that, for a $400,000 home at a 6.575% interest rate with 20% down, the monthly principal and interest would be $2,788 on a 30-year fixed, $2,640 for 40 years, and $2,572 for 50 years. But critics warn the risks are significant. Extending mortgages to 50 years would increase total interest paid and slow the buildup of home equity, potentially trapping borrowers in debt for a lifetime. Economist Tyler Cowen, of the influential blog Marginal Revolution, put the idea into GPT-5 and came back with the takeaway that a government‑backed 50‑year mortgage would “likely lower monthly payments but raise house prices, slow equity build‑up (and raise default risk in downturns), and increase interest‑rate risk in the financial system.”In the short run, this would see sellers and incumbent owners capturing much of the benefit while first‑time buyers face higher entry prices.The situation now is far from optimal, though. The average age of the first-time homebuyer keeps being pushed higher amid the turbulent housing market of the last several years. Recently, the National Association of Realtors found that it was 40 years old in 2025, the highest ever.As ResiClub’s Lance Lambert noted in a statement toFortune, that means the typical first-time homebuyer is just as close to collecting Social Security as they are to graduating from high school.Pulte floats Fannie, Freddie buying stocksThe 50-year mortgage proposal came amid a flurry of posts from Pulte, a member of one of America’s most prominent homebuilding families, who was fresh off a Friday appearance at ResiDay, a residential real estate conference hosted by ResiClub.Pulte said, without disclosing details, that Fannie Mae and Freddie Mac would seek to take equity stakes in private-sector companies in a manner similar to the unprecedented deal with Intel months earlier.“We hold all the cards,” Pulte told ResiClub about Fannie and Freddie, which have been under government conservatorship since the Great Financial Crisis of 2008. “[We] will probably take ownership in different companies by virtue of companies offering them equity in exchange for Fannie and Freddie doing smart business constructs with them,” he said, likening it to Intel.
A rather barren-looking former cement works site, nestled in the otherwise beautiful surroundings of Weardale, County Durham, is a critical part of what could be the world’s first entirely circular electric vehicle (EV) production cluster. The Eastgate works was demolished more than 20 years ago, but it is where Weardale Lithium has recently secured planning permission to build the country’s first lithium extraction facility. It hopes to take underground water - known as ‘geothermal brines’ - from beneath the North Pennines, before processing it to get lithium, a soft silvery metal which is ideally suited for use in batteries. The UK is estimated to need 15,000 tonnes of the stuff each year to feed the EV industry. Stewart Dickson is the former investment banker and mining expert who leads the business, which has already used grant funding from the Government’s Automotive Transformation Fund to complete trials of its technology. The company says that work has been highly successful, and it is now pressing ahead with multimillion-pound plans to build a demonstration plant next to nearby boreholes - where it will produce battery grade lithium carbonate on-site. Only 50 miles away on Teesside (“next door” in the minerals world), London Stock Exchange-listed company Alkemy Capital Investments is hoping to develop what it says is Europe’s largest low-carbon, lithium refinery. It hopes that facility can produce 15% of the continent’s requirements of lithium hydroxide - the next stage in the battery and EV supply chain. Lithium carbonate is the feedstock for that process and while not all of the Weardale-derived compound will go to Teesside, the two firms are already working together to create a supply chain. With these two projects set up, North East lithium can then be taken to AESC’s gigafactories in Sunderland, made into batteries which are then put into vehicles at the nearby Nissan plant, before lithium is extracted from end-of-life batteries by Altilium Metals - which has been working in the region and has plans to build a facility on Teesside. Newcastle’s Connected Energy is also pioneering the use of second life batteries for storage systems. Colin Herron, a prominent voice in the electric vehicle industry and heavily involved in the Faraday Institution, is energised by the possibilities - and says an all-encompassing industry in the North East is possible within two years, pending commercial agreements coming to fruition. “We can present to the world - and we are - that this region is utterly unique in being able to do this,” Mr Herron says, having taken that message to trade shows as far afield as the US and Japan. “You’ve only got to go from Stanhope, up to Newcastle and across to Teesside - that’s it. That triangle there will have absolutely everything in it, including the car manufacturer and the battery manufacturer.” In Weardale, the brines are said to be low in impurities - a factor that has excited US science and tech giant KBR, which is providing the technology licensing and proprietary engineering design for the County Durham plant. KBR’s involvement is seen as a coup for Weardale, meaning it can offer a one-stop-shop solution for turning brines into lithium carbonate - a rarity in the market. The $7bn revenue operator - which has a hand in everything from fertiliser projects in Angola to engineering for NASA satellites - brings capabilities to the project that Weardale’s nascent competitors do not have. You have to travel about 450 miles south, to Cornwall, to find the competition. Here Cornish Lithium and GEL are looking to do similar things, though Weardale’s operation is said to be larger and already has a march on the planning front. Mr Dickson expects the project to break ground this year with the first lithium carbonate emerging from the site next year. “It’s a very fast-paced development, but we think the project merits that. I’m sure it won’t be a straight road because what we’re doing is innovative and it's new. So, we’ll have to be agile along that journey. It’s very much a scaled, stepwise approach.” The undertaking is an enormous one, and requires sizable investment. The recent planning success has provided a boost, giving more surety to potential backers. In 2023, Cornish Lithium secured £24m of backing from the UK Infrastructure Bank - now the National Wealth Fund - and while Mr Dickson says such investment in the Eastgate plant is unlikely at this stage, there are conversations taking place that he hopes will pave the way for future injections. There are frustrations though - and Mr Dickson says this Government and the last have so far “not adequately resourced policy” around batteries and UK critical minerals. With key minerals such as lithium shaping up to become the “next economic battlefield” in a more geopolitically precarious world, Weardale’s home-grown approach comes with compelling national security and capital efficiency selling points. And it’s not only money needed to get the project off the ground. Skills are another urgent demand. Weardale has talked of its commitment to hiring locally, but admits that at least some of the jobs will be recruited globally. “Isn’t that exciting?” says Mr Dickson, who sees the challenge as a positive one. “New science, technology and engineering, green jobs that are ready for future-facing businesses. "But, that brings with it a new set of challenges. We’ve already done the preliminary scoping of the number of jobs that we’ll need and the roles, and we have an ambition to hire locally. That will require some upskilling of people already in the labour force and also new skills for people coming into the labour force.
