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UK banks face a potential relaxation of ‘ring-fencing’ rules that keep their retail banking business separate from the rest of their business, according to a report.

The government is mulling potential changes to these banking sector rules, which currently apply to lenders with at least £25bn of deposits.

https://www.berkeleyrossjournal.com/uk-banks-could-see-ring-fencing-rules-relaxed-report/

UBS sees Lloyds as a 'buy' with a 60p price target, suggesting some 30% upside to the current price.

All UK banks deserve an upgrade, but none more than Lloyds Banking Group PLC (LSE:LLOY) – that’s the view of UBS.

Repeating a ‘buy’ recommendation the Swiss bank says Lloyds is the preference in the sector and its forecasts are some 15% above market consensus.

“We expect strong deposit growth; rebounding consumer credit; and rising interest rates to lead to substantial growth in UK net interest income in the next two years which is not captured in consensus nor current valuations,” analyst Robert Noble said in a note.

The upbeat UBS rating comes as new chief executive Charlie Nunn has had his feet under the table for just a couple of weeks, after succeeding António Horta-Osório in August.

It also comes as the UK authorities mull potential changes to these banking sector rules which could relax 'ring-fencing' rules that keep their retail banking business separate from the rest of their business.

UK banks are seen as being at a disadvantage to US and EU lenders, where rules are seen as less tight.

The ring-fencing rules were constructed in the wake of the 2008 credit crunch to protect customers' money in the event of bank fails, but were not completed and fully enforced until 2019 when £1.2 trillion of core deposits was secured in ring-fenced banks.

Hope its the lab results from Elizabeth Hills

Looking good

Britain’s much-derided traffic light Covid travel system is to be scrapped today, according to reports.

Amber ratings are set to go alongside the requirement for PCR tests for those who have been double-jabbed while dozens of countries are to move off the red list, the Times said.

Boris Johnson is expected to announce the changes later

All australia miners down on China iron ore consumption news

LONDON, Sept 17 (Reuters) - Britain will on Friday consider easing England's COVID-19 rules for international travel after the travel industry complained that a myriad of onerous rules and red tape were hobbling airlines, holiday and tourism companies.

In a bid to slow the spread of the novel coronavirus, Britain has a maze of different rules requiring expensive private testing and quarantine and a so-called traffic light system which ranks destinations as green, amber and red.

https://www.reuters.com/world/uk/uk-will-probably-review-covid-19-travel-rules-later-friday-2021-09-17/

Retail sales volumes fell by 0.9 per cent in August as the easing of lockdown restrictions encouraged people to socialise over Summer.

New data from the ONS shows that a sharp decline in retail volumes seen in July, which stood at 2.8 per cent, eased off in August with sales climbing incrementally by 03 per cent across a three month period. A dip in food store sales of 1.2 per cent and a 1.5 per cent jump in automative fuel sales suggests that people leaned into post-lockdown freedoms by travelling and eating out.

https://www.cityam.com/retail-sales-august/

Who would of thought of that 2 years after a world pandemic the banks would be double to where they are now, state the obvious

Lloyds Banking Group PLC (LSE:LLOY) and Natwest Group PLC might be busy early doors after an upgrade from Deutsche Bank (NYSE:DB).

"We expect strong deposit growth; rebounding consumer credit, and rising interest rates to lead to substantial growth in UK net interest income in the next two years which is not captured in consensus nor current valuations.

"We are positive on domestic exposure but our preference is Lloyds where we are 15% above consensus and it trades at 6.6x 2023E P/E with 10% yield," said the bank

Target prices rise to 60p for Lloyds (from 57p) and 260p from 230p for NatWest.

IAGLongterm

Ryanair update lifts airline shares
A positive update from Ryanair Holdings PLC (LSE:RYA) has given a lift to the whole airline sector, which has been under cosh again in recent days on worries about the prospects for international travel.

Ryanair said it planned to fly an extra 25mln passengers by 2026 - up from its previous target of 200mln - as the industry tries to rebound from the pandemic.

UBS analysts said: "The company now plans to increase passengers by 50% from March 2020 levels of 149mln passenger (to 225mn) by March 2026.

"Previous guidance was around 200mln passengers and we currently forecast 203mln passengers.

"Should the profitability per passenger be maintained then we expect upward pressure to forecasts. Indeed a c11% upgrade to passenger numbers versus our passenger forecasts for 2026 at similar levels of profitability would all else being equal also increase our net income from around €2.3bn to around €2.5bn. There is the potential for improved profitability per passenger given the gearing."

The news has pushed Ryanair's shares up 7.55% to €16.52, while British Airways owner International Consolidated Airlines PLC has climbed by 3.27% and EasyJet PLC has improved by 6.36%. Wizz Air Holdings (AIM:WIZZ) PLC has also benefited, adding 4.62%.

Today's rise has nothing to do with UK restrictions easing markets have priced this in already is not new news

A positive update from Ryanair has given a lift to the whole airline sector, which has been under cosh again in recent days on worries about the prospects for international travel

US retail sales have come in stronger than expected in August.

They rose by 0.7% compared with expectations of a 0.7% fall. However the July figure was revised from a 1.1% fall to a 1.8% decline.

Sales at clothing stores were up 38.8% while gasoline sales rose 35.7%. But there was another sharp drop in car sales.

Asperger1
""fair bet we will see the SP rise just as fast over the next (post covid) 12months""

I was expecting the share price to be a lot higher as this pandemic wasn't a financial recession

European car registrations dropped in July and August after four months of growth, industry data showed on Thursday, suggesting that a global semiconductor shortage is hitting sales in car dealerships across Europe.

New passenger car registrations fell by 23.6% and 18.1% year-on-year in July and August, respectively, in the European Union, Britain and the countries of the European Free Trade Association

https://www.thisismoney.co.uk/money/share-investing/article-9994347/Should-sell-Lloyds-shares-waiting-better-days.html

https://www.cityam.com/ryanair-aims-to-fly-225m-passengers-a-year-by-2026/

Lloyds is up 5.5% in the last 5 days even the Chief Finance Officer William Chalmers is having a top up

house prices growth across the UK while UK average prices returned to levels seen earlier this year.

Figures from the Office for National Statistics show that average prices in the capital increased by 2.2 per cent over the year to July 2021, down from 5.1 per cent in June.

The city’s average house prices remained the most expensive out of UK regions, at an average of £495,000, according to the Land Registry’s House Price Index.

Sterling edged up on Wednesday, but was off the multiple-week high touched the previous day, after data showed British inflation hit a more than nine-year high last month, fuelling expectations the Bank of England could act sooner to hike rates.

"With inflation running hot and wages on the rise, the Bank looks quite likely to be one of the first major central banks to hike rates next year,"

https://www.google.com/amp/s/uk.finance.yahoo.com/amphtml/news/sterling-edges-uk-inflation-jump-084951329.html