Business news live: Gilt yields spike on Rachel Reeves exit speculation and AstraZeneca CEO discusses leaving London

Good morning all and welcome to the Independent’s live blog coverage for Wednesday.

Today we’ll be following up on the latest ISA reform, with both cash and lifetime versions under review, and detailing the latest stock market news after it was reported AstraZeneca could pursue a listing switch to the US.

Additionally we’ve got exclusive news coming on trade tariffs impacting businesses in the UK.

Lots to cover – let’s get into it.

The FTSE 100 rose 0.28 per cent yesterday after an up-and-down (-and-up-again) day.

Within the index, the biggest gainers were:

Drinks maker Diageo, up 3.75 per centPub owner Whitbread, up 3.37 per centFootwear store JD Sports, up 2.88 per centGold miner Endeavour Mining, up 2.87 per cent.

Two of those were in no small part due to the EU insisting on lower tariffs for alcohol exports to the US in a trade deal and a rising price of gold. Whitbread, meanwhile, have a new significant shareholder who took up a 5 per cent position.

We may see more of this later on this week as we get closer to tariff deadline day, if that can be a thing.

But Andrew Bailey, governor of the Bank of England, says the uncertainty for businesses over the impact of tariffs mean they are not spending – and keeping interest rates tighter might only exacerbate that.

“We haven’t seen the effects much yet from tariffs and we didn’t expect to by now,” he said – but acknowledged the BoE’s MPC took a “prudent” approach last time out by simply waiting to see and opting against an interest rates cut.

Most analysts expect another 25bps cut in August, taking the base rate to 4.00 per cent.

Santander has agreed to buy TSB for £2.65bn, rising to a potential £2.9bn, in a deal which will create the UK’s third-largest bank.

The deal still faces approval but is expected to close in early 2026.

That could mean the disappearance of TSB from the high street after Santander revealed plans to “integrate TSB” into the group.

Multiple reports emerged yesterday evening that the chief executive of AstraZeneca, the biggest firm on the London Stock Exchange, wants to move the company’s listing to the US.

The loss of the £160bn market cap pharmaceuticals firm would be the biggest hit yet for the LSE – but arguably an even bigger issue for the government, to see a British company redomiciled.

More on that coming shortly.

A quick stock markets checkup for the morning, with the FTSE 100 enjoying a small rise, 0.11 per cent up.

Smaller companies are down though, 0.33 per cent for the FTSE 250 and 0.30 per cent on AIM.

In Europe, Germany’s DAX is up 0.3 per cent and France’s CAC 40 is 0.47 per cent up.

Banks and financials are among the risers in the British firms so far, with Standard Chartered leading the way, up 2.83 per cent.

Looser stress tests on US banks have seen many of the nation’s biggest names announce increased dividend payments and share buybacks.

JPMorgan, Goldman Sachs, Bank of America, Morgan Stanley and others have all confirmed the new arrangements, with the biggest being Goldman’s 33 per cent increase to the dividend.

JPMorgan are beginning a $50bn share buyback programme, with Morgan Stanley authorising $20bn for the same.

The lowered regulations come after over a decade of tight restrictions following the 2008 financial crisis.

Right, back to yesterday’s agreed deal for Santander to buy TSB, with some more details becoming clear.

Sabadell shareholders still have to approve the deal, for a £2.65bn sale, expected to rise to £2.9bn.

That will result in a €0.50 per share extraordinary cash dividend for Sabadell shareholders, with the Spanish firm’s chairman Josep Oliu stating it would be a deal of “significant value”.

A wrinkle is that Sabadell are currently subject to a hostile takeover bid from BBVA – if that were to go through, BBVA would take the dividend as the effective “shareholder” at that time.

Sabadell will also not compete in the UK banking market for two years after the sale of TSB is complete, as part of the agreement.

Following last night’s reports that AstraZeneca’s chief wanted to pursue a US listing, The Independent understands that the company remains in discussions with the UK government over support for the industry.

That is an ongoing situation unrelated to any stock market listing, but with the wider environment seen to be one of the CEO’s frustrations, it’s a key aspect for progress.

Labour noted life sciences as one of the key pillars in its industrial strategy last week and AstraZeneca is the UK’s biggest public-listed company in the sphere.

The EU, meanwhile, have noted pharmaceuticals as one of the industries they want lower than standard 10 per cent tariffs for in any trade deal with the US.