Business news live: FTSE 100 hits record milestone, Reeves to address mortgages and pensions in speech

As part of new plans to encourage people to invest more, those who have funds in low-interest bank accounts will be contacted over more potentially lucrative opportunities.

A large advertising campaign on the benefits of investing is to be started and banks will send customers details of opportunities which might benefit them.

In addition, a review of risk warnings will be undertaken, with current language around investments thought to be off-putting.

“We need to double down on our global strengths to put the UK ahead in the global race for financial businesses, creating good skilled jobs in every part of the country and helping savers’ money go further,” said Ms Reeves today.

UK Sustainable Investment and Finance Association CEO James Alexander says the nation must get a grip of pensions now, with two in five private sector employees facing a shortfall in retirement.

Speaking on BBC Radio 4, he said: “It’s really vital that we get a grip of pension savings in the UK, and a part of that, a big part of that, is looking at auto-enrolment contribution levels.

“Can we handle a future where a whole load of pension savers, people in retirement, don’t have sufficient income in order to live…in the UK?

“The pensions minister has said that auto-enrolment rates will not rise in this parliament. That’s the right decision. It means that these things can be long-term plans that investors and companies can work towards.

“This review has to balance the needs of ensuring people are saving the right amount for retirement and, of course, not putting too much burden on businesses.”

More details from Steffie Banatvala:

One of London’s most successful fintech firms is considering going public on the US stock market rather than in the UK.

Starling Bank is looking at listing in New York due to potentially higher valuations, a departure from last year when then-interim CEO John Mountain said they were “very committed” to a London IPO.

“We continue to observe what is happening externally with our peers, and also what is happening on the global stage in terms of the UK versus US [stock markets],” Declan Ferguson, CFO, told the FT.

Starling’s value in 2023 was around £1.5bn, down from £2.5bn a year earlier.

Getting savers to invest in the UK is a hot topic this year – so all these milestones for the main index of British companies is well worth highlighting.

And there’s more than just record highs at play here too, as AJ Bell’s Dan Coatsworth explains:

“It’s party time as the FTSE 100 has smashed through the 9,000 level. This is another big tick in what’s proving to be a momentous year for the UK stock market, which suggests the market is shaking off its unloved reputation and more investors like what’s on the menu.

“Outperforming the main US indices since January is a major achievement for the UK and the FTSE 100 going through 9,000 builds on this success. It should help to convince overseas investors that the UK market isn’t dull and boring.

“The UK stock market is full of interesting companies that are leaders in their respective fields. While the UK market lacks the kind of technology opportunities found in the US, it excels in other areas and investors are spoiled for choice in sectors such as financials, natural resources, healthcare and industrials.

“The timing is perfect as the financial regulator has announced various initiatives to potentially give the UK market another boost. The IPO process will be sped up in an effort to convince more companies to list in London. Existing quoted companies won’t have to publish detailed documents to raise more money, in most cases. The process of issuing corporate bonds to retail investors will also be simplified.

“These initiatives are a step in the right direction as long as investors can still obtain the necessary information on which to make informed decisions. With cash interest rates trending lower, there is a good chance that individuals will look at other ways to make money and investing is a natural avenue to pursue.”

China have stated their economy grew 5.2 per cent in the three months to June, a slowdown from the first quarter of 2025 but still above the target rate of 5 per cent growth.

That is despite the Asian nation battling to find an agreement with the US over a trade deal and tariffs of up to 145 per cent at one point being placed on them.

Some economists have suggested the growth rate is weaker than official figures suggest but it’s still well above the rate of the UK (1.3 – 1.5 per cent estimated this year) or the US (1.4 to 1.8 per cent).

The worker union Unite is demanding the airline industry standardise hand luggage rules in the UK to stop passengers getting irate with airport staff.

Doubtless we’ve all seen the scenes when someone’s bag wheels don’t fit in the frame and the £70-odd fee gets handed to them – in no small part down to each airline sizing them differently.

Make the rules the same is the cry; don’t be surprised when they do so and make them even smaller then, might be the response.

Worth noting this is already in effect in Europe.

Unite general secretary Sharon Graham said: “The industry needs to get its act together and introduce standardised hand luggage rules. The current situation is not only unfair on passengers but is resulting in airport workers facing abuse on a regular basis. This is totally unacceptable.”

Plenty of mortgage market-related changes over the last few weeks, from altered stress tests to changing borrowing limits.

Need to know how it helps you get on the ladder? Money writer Marc Shoffman tells all.