Newsflash: The Bank of England is recommending that lending rules are relaxed so that banks and building societies can issue more mortgages at high loan-to-income levels.The BoE’s Financial Policy Committee is recommending that individual lenders should be allowed to increase their share of lending at high LTIs to above the current limit of 15%.This could make it easier for borrowers to stretch themselves to afford a more expensive property.High loan-to-income loans are defined as those at a ratio above 4.5.

Loans above this level are riskier, as borrowers could struggle to meet mortgage payments if their incomes fell, or if interest rates rose.Announcing the plan, the FPC says:The Committee noted its role in supporting the Government’s priority to make home ownership more accessible and discussed the UK housing market and the role of regulatory mortgage policies.It wants the overall lending market to restrict high LTI loans to 15% of total demand, while allowing individual lenders to exceed it.The loan-to-income lending limit was introduced in 2014, as part of a package to cool the housing market.The FPC says:The Committee noted that the original policy intent of the LTI flow limit recommendation was to ensure the flow of new residential mortgages at high LTIs did not exceed 15% of total new mortgages in aggregate.

The FPC judged that the aggregate 15 per cent limit continued to strike the right balance between providing appropriate protection from the increased risk to economic growth of large cuts to consumption associated with an over-indebted household sector, while providing sufficient capacity for otherwise creditworthy households to borrow at higher LTIs,As such, it has recommended the Prudential Regulation Authority (PRA) and the FCA amend implementation of its LTI flow limit to allow individual lenders to increase their share of lending at high LTIs while aiming to ensure the aggregate flow remained consistent with the limit of 15%,Time to recap:The Bank of England has rolled out looser mortgage rules that policymakers hope will help 36,000 more first-time buyers on to the housing ladder each year,New guidelines announced by the UK’s central bank mean that individual banks and building societies can offer more high loan-to-income (LTI) mortgages, which are equal to, or worth more than, 4,5 times a borrower’s annual earnings.

While high LTI loans are usually considered more risky, the Bank said most banks were not taking advantage of their individual caps, meaning there were fewer available to borrowers than hoped,Sam Woods, the chief executive of the Bank’s regulatory arm, the Prudential Regulation Authority, said the changes should benefit tens of thousands of first-time buyers,In its latest financial stability report, the Bank also warned that US tariffs will hurt global growth, while governor Andrew Bailey suggested the recent increase in UK borrowing costs was part of a wider rise in bond yields,Nvidia has become the first company to ever hit $4 trillion in market value, solidifying its position as one of Wall Street’s most-favored stocks to tap in the ongoing surge in demand for artificial intelligence technologies,The CEO of X, Elon Musk’s social network, has announced she would step down after two years in the role.

The maker of London’s black cabs has said it will cut 180 jobs at its factory in Coventry, blaming a declining UK market for taxis.Copper prices hit a record high in the US after Donald Trump announced he would impose a 50% tariff on the industrial metal, in the latest escalation of his trade war.Donald Trump has said there would be more trade-related announcements today… our US politics blog is tracking the latest developments:The maker of London’s black cabs has said it will cut 180 jobs at its factory in Coventry, blaming a declining UK market for taxis.The London EV Company, owned by Chinese car conglomerate Geely, said that the number of cabbies is falling across the capital and the rest of the UK, denting demand for its hybrid electric cars, which combine a battery with a smaller petrol engine.London’s black cabs are tightly regulated by Transport for London, with requirements such as a turning circle tight enough for the small roundabout outside the Savoy hotel.

Since 2018 only “zero-emissions capable” vehicles have been eligible for first-time licences.However, that market has been largely satisfied, with over 60% of the capital’s taxi fleet made up of electrified LEVC TX models, with around 9,000 operating within the city.LEVC’s efforts to sell more cabs outside of London, and to sell van versions of the car, have not resulted in a large pick-up in sales, in part because of stiff competition.Some people close to Geely have suggested the company, which also owns the struggling Lotus sportscar brand in the UK, might consider basing a new pure electric taxi on vehicles made in China, with final assembly carried out in the UK.Government statistics show that the number of taxi-only driver licences fell by 7% in 2024 compared with a year earlier.

At the same time, the number of private hire vehicle drivers jumped by 14%.LEVC’s vehicles do not tend to be used by many private hire vehicle drivers, such as those who drive for taxi apps Uber and Bolt, and who are thought to make up a large proportion of the overall increase in drivers.Alex Nan, LEVC’s chief executive, said:With the UK taxi market continuing to experience significant challenges, LEVC has reluctantly made the decision to reduce its TX manufacturing output, resulting in a round of compulsory redundancies.LEVC will of course provide full support for its customers as normal and there is no impact on the sales or aftersales of new or used TX.LEVC firmly believes in the future of the UK taxi industry and we remain committed to our vision of being a leading provider of green mobility solutions.

Despite the temporary challenges the taxi sector is facing, we are dedicated to safeguarding the iconic London black cab and are actively discussing with regulators the requirements to support the development of an all-new TX.Newsflash: Linda Yaccarino, the CEO of Elon Musk’s social media platform X, has announced she’s stepping down.Yaccarino, previously an advertising executive, was appointed two years ago after Musk bought, and then rebranded, Twitter.During her tenure, some advertisers boycotted X due to concerns about extreme content running on the site.Posting on X, she says:After two incredible years, I’ve decided to step down as CEO of 𝕏.

When @elonmusk and I first spoke of his vision for X, I knew it would be the opportunity of a lifetime to carry out the extraordinary mission of this company,I’m immensely grateful to him for entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App,I’m incredibly proud of the X team - the historic business turn around we have accomplished together has been nothing short of remarkable,We started with the critical early work necessary to prioritize the safety of our users—especially children, and to restore advertiser confidence,This team has worked relentlessly from groundbreaking innovations like Community Notes, and, soon, X Money to bringing the most iconic voices and content to the platform.

Now, the best is yet to come as X enters a new chapter with @xai.X is truly a digital town square for all voices and the world’s most powerful culture signal.We couldn’t have achieved that without the support of our users, business partners, and the most innovative team in the world.I’ll be cheering you all on as you continue to change the world.As always, I’ll see you on 𝕏Wall Street has opened higher, as the Trump trade war fails to alarm investors.

The S&P 500 index is up 0.6%, gaining 37 points to reach 6,263 points.The tech-focused Nasdaq has gained 201 points, or almost 1%, to 20,619 points.Another day, another plea from Donald Trump for lower interest rates.Posting on his Truth Social platform, the US president claims that US interest rates should be at least three percentage points lower, claiming there is “no inflation”.

He also labels Fed chair Jerome Powell as “Too Late” again, writing:Our Fed Rate is AT LEAST 3 Points too high.“Too Late” is costing the U.S.360 Billion Dollars a Point, PER YEAR, in refinancing costs.No Inflation, COMPANIES POURING INTO AMERICA.

“The hottest Country in the World!” LOWER THE RATE!!!Fact check: The annual rate of US inflation was 2.4% in May, above the Fed’s 2% target, with prices rising by 0.1% on a monthly basis.The Fed’s current target rate is 4.25%-4.

5%,Trump is suggesting that this should be 1,25%-1,5%, which would be the lowest since early 2022, before the Ukraine war drove up inflation,Ironically, Trump’s decision to shift the deadline for trade deals to 1 August makes it harder for the Fed to justify a rate cut this month, as it creates more uncertainty.

Newsflash: chipmaker Nvidia has become the first listed company to be worth $4tn,Nvidia has hit this peak at the start of Wall Street trading, pushed up by continued investor excitement about artificial intelligence,$NVDA > $AAPL ✅ pic,twitter,com/lBLy0Iiu3zNvidia’s shares, which are up 2.

7% in early trading, have gained 22% so far this year as the tech sector has largely shrugged off concerns about Donald Trump’s trade wars.Nvidia semiconductors, such as its “Blackwell” chip, have been in heavy demand as artificial intelligence companies have scrambled to build high-powered systems to train their AI models on.Last month, Nvidia’s CEO Jenson Huang cheered investors at the company’s annual shareholders meeting, telling them:“We have many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity.”The Bank of England has fined payment systems firm Vocalink Limited £11.9m for failing to operate adequate risk management and governance arrangement.

Vocalink, which is owned by US payment processor Mastercard, designs, builds and operates bank account-based payment systems in Britain.Sarah Breeden, deputy governor for Financial Stability, says:“Vocalink fell short of its obligation to have adequate risk management and governance arrangements when responding to the Bank’s Direction.Its failure to comply with that Direction in full has resulted in a significant fine.”The Bank’s investigation identified the root cause of Vocalink’s non-compliance was the failure to have in place a sufficiently integrated risk management framework for the remediation programme.This would have ensured that risks facing the programme could be properly understood, monitored and shared amongst the three lines of defence (and external assurance providers).

It also found there were failures to escalate key risks and information to senior committees, which undermined the firm’s ability to fully comply with the Direction.The Bank considers Vocalink’s governance arrangements fell below the standards expected of a financial market infrastructure firm.Daimler Truck Holding expects US orders to remain at “extremely” low levels until uncertainty over President Donald Trump’s trade policies subsides and freight volumes begin to recover.Chief financial officer Eva Scherer said logistics companies have cut back on truck purchases amid a drop in shipments of tariff-hit goods such as steel and aluminum.Scherer told Bloomberg:“We’re in a situation where it’s very difficult to predict from a CFO perspective.

Scenario planning is more important than ever.”Over in the US, the Trump immigration crackdown is hitting the labour supply, reports Paul Ashworth, chief North America economist at Capital Economics.He writes:After stemming the inflow of unauthorised immigration over the Southwest border, the Trump administration now appears to be gradually ramping up the number of detentions and removals.This crackdown is beginning to have a more marked impact on labour supply, with the foreign-born labour force shrinking by more than one million people in the last four months.Despite all the trade war uncertainty, the UK stock market is rising towards its highest ever levels.

The FTSE 100 is up 14 points (+0,16%) so far today at 8868 points, only around 16 points shy of its all-time closing high of 8,884 points set last month,Lenders can apply for a waiver from today to increase the amount of high loan-to-income mortgages they issue, says BoE deputy governor Sam Woods,Woods insists that today’s changes (outlined here) are ‘more than a tweak’,The Bank estimates that the unused capacity of high LTI mortgages that are not being issued at the moment is equivalent to “another 36,000 high LTI first-time buyer mortgages per year in the UK”.

There are other constraits on first-time buyers, such as the need for a deposit (see here), Woods adds.He also predicts that the Bank may need to ‘put the brakes on’, if there is a surge in high LTI lending that takes the industry total up to the overall 15% of loans limit.BoE governor Andrew Bailey then calls for reforms to the UK pension system, but opposes the suggestion that funds should be forced to buy UK assets.Q: what’s your view on the possibility that the government will mandate how much invest pension funds should invest in UK assets? Bailey replies that the UK only has a low level of pension fund investment in “the real economy in this country”, and that structural changes to the pension fund industry (consolidating funds) would be helpful.However, he says:I do not support mandating.

I don’t think that’s appropriate.He adds that the current government is taking the same approach as its predecessor on this issue, addingI think reforming the pension system does, to be honest, require a lot of heavy lifting, but it needs to be done.It will take a bit of time, but it needs to be done for these structural reasons.I don’t support mandating, but I do hope that we can reach a point where there is a natural ability to tackle this problem.Earlier this year, chancellor Rachel Reeves said she would create a “backstop” power to force large pension funds to back British assets, if necessary, to drive up investment.

Q: Will a global trade war lead to UK job losses?BoE governor Bailey replies that there’s been a big increase in uncertainty around trade and tariffs, pointing out:Fragmenting the world economy is bad for activity in the world economy.That’s fairly simple trade theory.That fragmentation is bad for economic activity, and is therefore bad for employment, he adds:“Obviously, in that sense, there is a consequence.So we have to watch that very carefully.”Bailey adds that it was a “very good thing” that the UK government was first to negotiate a trade agreement with the US.

Q: Your report warns that a weak IPO market is resulting in fewer exit opportunities for private equity backed firms.How concerned are you about the lack of buoyant public markets, including in London? (my colleague Kalyeena Makortoff asks).BoE governor Andrew Bailey replies that firms are telling the Bank that they are delaying investment decisions due to the higher level of uncertainty in the world economy.That can include decisiont on whether to raise capital, and in which market to raise it.Bailey adds:It’s not surprising, because economics and economic theory tells us this, that since investment decisions are typically irreversible