Business
Soft inflation data encourages hopes of pre-Christmas rates cut
The FTSE 100 forged ahead on Wednesday, with housebuilders in demand, as weaker-than-expected inflation figures boosted hopes for an interest rate cut before the end of the year.
The FTSE 100 index closed up 88.01 points, 0.9%, at 9,515.00.
The FTSE 250 ended 321.49 points higher, 1.5%, at 22,229.79 and the AIM All-Share advanced 2.17 points, 0.3%, at 768.03.
Consumer prices rose 3.8% year-on-year, unchanged from August and below the FXStreet-cited consensus of a 4.0% increase, according to figures from the Office for National Statistics.
Core inflation, which strips out energy, food, alcohol, and tobacco, eased to 3.5% from 3.6%.
Both readings were below Bank of England forecasts for 4.0% and 3.8%.
In addition, closely watched services inflation held steady at 4.7%, defying forecasts for a rise to 4.8%, and below the Bank’s 5.0% projection.
Kathleen Brooks, at XTB, noted rate cut bets ramped up post the inflation report bolstering the chances of an early Christmas present from the UK’s central bank.
She said there are now 17 basis points (bps) of cuts priced in for December, compared to 10 bps of cuts expected on Tuesday.
“Better UK inflation news brings a December rate cut back into play,” said James Smith, developed markets economist at ING.
While Barclays said a quarter point rate cut could come as soon as November.
“The flow of data since the September (Bank of England) meeting has been soft on the labour market, soft on activity and now soft on inflation – a compelling trinity,” the bank noted.
While Goldman Sachs said the data “increase the risks that the next (Bank of England) cut comes earlier than our February baseline.”
In response, sterling fell while bond yields fell. The yield on the UK 10-year gilt traded below 4.40% in Wednesday, after topping 4.80% a month ago.
The pound was quoted lower at 1.3366 US dollars at the time of the London equity market close on Wednesday, compared to 1.3390 dollars on Tuesday.
The euro stood at 1.1610 dollars, down slightly compared to 1.1612 dollars. Against the yen, the dollar was trading at 151.78 yen, a touch higher compared to 151.74 yen.
On the FTSE 100, rate sensitive housebuilders were buoyant, with Persimmon up 6.3%, Barratt Redrow up 5.1% and Berkeley Group up 3.8%.
On the FTSE 250, builders merchant Travis Perkins surged 6.9% and building materials firm Marshalls climbed 5.9% on hopes that rate cuts will accelerate growth in the housing market.
Banks were also in favour after well received third quarter results from lender Barclays.
The London-based bank surprised the City by bringing forward a £500 million share buyback and also raised guidance.
This came despite increasing its provision for car finance and taking a £110 million hit from the collapse of subprime lender, Tricolor.
Barclays Group finance director Anna Cross said, excluding the motor finance provision, the operational performance of the business has continued to strengthen with signs of momentum visible across the business.
She also said there are “no signs of consumer distress” in the UK ahead of November’s budget, with arrears low and stable, demand robust, and customers managing spend carefully.
Barclays rose 4.9%, while NatWest, which reports third quarter results on Friday, climbed 1.6%, and Lloyds Banking Group, which reports on Wednesday, advanced 1.0%.
The mood was less bright in Europe. The CAC 40 in Paris ended 0.6% lower, while DAX 40 in Frankfurt closed 0.7% lower.
Stocks in New York were lower at the time of the London close. The Dow Jones Industrial Average was down 0.3%, the S&P 500 was 0.6% lower, while the Nasdaq Composite declined 1.1%.
Netflix stumbled 10% after reporting weaker-than-expected earnings after Tuesday’s US market close.
The streaming service took a 619 million US dollars (£463 million) charge related to an ongoing dispute with Brazilian tax authorities.
The yield on the US 10-year Treasury was quoted at 3.96%, unchanged from Tuesday. The yield on the US 30-year Treasury stood at 4.55%, widened from 4.54% on Tuesday.
Elsewhere, British Airways owner IAG rose 2.2%, benefiting from an upgrade by Goldman Sachs to “buy” from “neutral”.
On the FTSE 250, ITV plunged 8.1% after Liberty Global sold £135 million worth of ITV shares in a placing to institutional investors, cutting its stake in the broadcaster to 5% from 10%.
The telecommunications company, based in Denver, Colorado, first took a stake in London-based television broadcaster ITV in 2014 from satellite subscription service provider Sky for £481 million and nearly doubled it the following year – to 9.9% from 6.4%.
Also on the FTSE 250, Softcat climbed 4.6% after posting double-digit annual growth in both profit and revenue.
The IT infrastructure provider reported a 12% rise in pre-tax profit to £178.2 million on revenue up 52% to £1.46 billion, driven by an “exceptionally strong” second half and large project wins.
Gold continued to track lower after its record-breaking run. The metal traded at 4,028.64 dollars an ounce on Wednesday, down from 4,131.30 dollars on Tuesday.
Joshua Mahony at Rostro said gold traders are desperately trying to gauge whether Tuesday’s historic collapse was indicative of a new period of weakness or simply a case of “blowing off steam” after a dramatic surge into record highs.
He said: “Ongoing themes around geopolitics, trade tensions, debt, dollar strength and haven demand means that there is always likely to be a concoction of factors for traders to consider.
“However, with the Trump-Putin meeting called off, and scepticism over the likeliness of a wide-reaching US and China trade agreement, there will likely be calls for gold to regain its upward momentum soon enough.”
Brent oil traded at 62.61 dollars a barrel, up from 61.26 dollars late on Tuesday.
The biggest risers on the FTSE 100 were: Persimmon, up 74p at 1,253p; Howden Joinery, up 51p at 863.5p; Barratt Redrow, up 19.5p at 405.9p; Barclays, up 17.75p at 382p; and Entain, up 37.8p at 824p.
The biggest fallers on the FTSE 100 were: Rolls Royce, down 32p at 1,102.5p; Fresnillo, down 34p at 2,080p; Polar Capital Technology Trust, down 7p at 433p; Melrose, down 8.8p at 625.2p; and Glencore, down 4.2p at 340.2p.
Thursday’s global economic diary has retail sales figures in Canada and a eurozone consumer confidence report.
Thursday’s UK corporate calendar has third quarter results from lender Lloyds Banking Group; exchange operator and data provider London Stock Exchange; pest control firm Rentokil; consumer goods company Unilever; and miner Antofagasta.
Contributed by Alliance News
Business
Asian banks are healthier! Lenders across Asia–Pacific stronger than the US; what Moody’s report shows – The Times of India
Banks across the Asia–Pacific region are displaying stronger capital health than lenders in the United States and Western Europe, Moody’s said in its latest survey. The agency’s comparison of the largest banking institutions across major markets shows Asia–Pacific banks have accumulated strong capital levels under what it describes as tighter and more cautious regulatory oversight.The survey found that the risk-weighted asset (RWA) profiles of large Asia–Pacific banks correspond closely with their actual credit losses over the past decade, indicating that the risk assigned to their assets reflects the ground reality. At the same time, the report stresses that RWA densities are not uniform across the region and vary by market. RWAs measure the level of risk in a bank’s portfolio by assigning higher weights to assets considered riskier, meaning institutions with higher RWA density have a greater proportion of high-risk assets on their balance sheets.A notable highlight of the study is the capital strength of major private sector banks in India. Moody’s stated, “Large private sector banks in India have high CET1 capital adequacy and leverage ratios because their internal capital generation has outpaced their RWA growth in the past couple of years, and they can raise equity easily from capital markets when needed.” CET1, or Common Equity Tier 1 capital, comprises retained earnings and equity shares and is the core line of defence against losses. Higher CET1 ratios translate to a greater capacity to absorb shocks without affecting depositor safety.By the end of 2024, the average CET1 ratios of large banks in Hong Kong, India and Korea in the sample stood at 18.0%, 14.7% and 14.5%, respectively. These figures stand higher than the 13.5% reported by the four biggest US banks and the 13.8% recorded by the top six banks in Western Europe, according to the report.While Moody’s says Asia–Pacific banks can raise equity from capital markets with relative ease when required, it also notes that state-owned banks remain weaker than their private counterparts on capital and leverage.The agency attributes higher RWA densities in India, Vietnam and some Chinese lenders to the continued use of the standardised approach for calculating risk weights, a method based on fixed regulatory prescriptions rather than banks’ own internal assessments. In India, regulators have announced plans to permit banks to move to the IRB (Internal Ratings-Based) approach by 2028, a transition expected to reduce RWA density if implemented successfully.For India, the sample in the survey consisted of State Bank of India, Axis Bank, ICICI Bank and HDFC Bank, representing roughly half of the country’s total banking system assets. Overall, the report examined 35 banks across eight major Asia-Pacific banking systems, covering 75% of the total assets of all rated banks in these markets.
Business
How To Apply For Insurance Claim After Accident? Where Does Licence Validity Come In? | Explained
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Even if your driving licence has expired, the law protects accident victims. Learn how insurance claims work and what the 30-day grace period covers
The rules for insurance claims following a road accident differ depending on whether it is a third-party claim or an own damage claim.
The Punjab and Haryana High Court has clarified that a driving licence remains valid for 30 days after its expiry. If an accident occurs on the 30th and final day of this grace period, the insurance company is legally required to honour the claim.
According to The Tribune, the licence in the case under consideration expired on June 4, 2001. The 30-day grace period began on June 5, meaning the licence remained valid until July 4, 2001. The accident took place on July 4, 2001, at around 10:45 am, and as it fell within the grace period, the licence was deemed legally valid.
Insurance Claims In India: What The Law Says
The rules for insurance claims following a road accident differ depending on whether it is a third-party claim or an own damage claim.
Third-Party Insurance: Mandatory for All Vehicles
Under Section 146 of the Motor Vehicles Act, 1988, third-party insurance is compulsory for every vehicle in India. Third-party claims relate to:
- Injury or death of a third party
- Damage to third-party property
The Supreme Court has consistently ruled that even if the driver has no licence, an expired licence, a suspended licence or a licence of the wrong category, the insurance company must still compensate the victim or their family.
This obligation remains even if:
- The driver has no driving licence at all
- The licence has expired
- The licence is suspended
- The licence belongs to an incorrect vehicle category
- The driver only holds a learner’s licence
‘Pay and Recover’ Principle
The Supreme Court frequently applies the pay and recover principle:
- The insurer must first pay compensation to the victim.
- The insurer may then recover the amount from the vehicle owner.
In 2023, the Supreme Court reaffirmed that the victim must not suffer because the driver lacked a valid licence.
Own Damage Claims: Strict Rules Apply
The rules for own damage claims are entirely different. Every motor insurance policy clearly states that the driver must have:
- A valid driving licence
- A proper licence for the vehicle category
If, at the time of the accident:
- The driver had no licence, or
- The licence had expired, or
- The licence was not appropriate for that vehicle,
the insurance company will reject the own damage claim entirely.
This position was upheld by the Supreme Court in Dharmendra Goyal vs Reliance General Insurance (2022) and reaffirmed in multiple judgements between 2023 and 2025.
The National Consumer Commission (NCDRC) issued similar rulings in dozens of cases.
Grace Period And Licence Validity
If an accident occurs within the 30-day grace period after the licence has expired, insurance policies provide full coverage, both for:
- Third-party claims, and
- Own damage claims
This rule is applicable nationwide.
When Is Renewal Necessary?
According to Section 15 of the Motor Vehicles Act, 1988 and the Central Motor Vehicles Rules, 1989:
30-Day Grace Period
- The licence remains fully valid for 30 days after expiry.
- There is no penalty if renewed within these 30 days.
Penalties After The Grace Period
- After 30 days: Rs 300 fine, increasing to Rs 1,000 per year.
- After 1 year: The applicant must take the driving test again.
- After 5 years: A complete restart is required, including a new learner’s licence.
Renewal Made Easier (2025 Guidelines)
The Ministry of Transport’s 2025 guidelines confirm:
- The 30-day grace period applies across India.
- Driving licences can be renewed instantly online via the Parivahan.gov.in portal.
Click here to add News18 as your preferred news source on Google. December 08, 2025, 14:12 IST
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The Executive Board of the International Monetary Fund (IMF) is scheduled to meet today, with Pakistan expecting approval of approximately $1.2 billion, according to official sources.
The IMF’s board calendar for December 8–14 confirms that Pakistan’s case is on the agenda. The board is set to review the staff-level agreement recently reached with Islamabad.
Under the current loan programme, the board may approve the release of a $1 billion tranche. Additionally, Pakistan could receive the first $200 million installment from the Resilience and Sustainability Facility (RSF), which supports climate-related initiatives.
Final approval will be determined during the board’s deliberations.
Earlier reports indicated that Pakistan had agreed to a key IMF condition requiring a special audit of supplementary grants issued over the past ten years.
Pakistan has also accepted another IMF measure aimed at limiting the federal government’s discretionary authority in issuing supplementary grants.
The 10-day technical discussions between Pakistan and the IMF, which began on November 11, have concluded.
The talks focused on reforms in public finance management (PFM) and measures to improve transparency in the budget process.
According to sources, the digital Public Finance Management Assessment was reviewed, and oversight mechanisms for the digitized PFM master plan were discussed.
Asian banks are healthier! Lenders across Asia–Pacific stronger than the US; what Moody’s report shows – The Times of India
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