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What is private credit, and should we be worried by the collapse of US firms?

The collapse of two US firms, First Brands and Tricolor, has shone a light on private credit and its growing influence in the global economy.The failures have led to ballooning losses at traditional banks, and, coupled with worries about the health of US regional banks, have raised concerns about weak lending standards and potential threats from an opaque corner of the so-called shadow banking sector.But what is private credit and should we be worried?Private credit emerged in the 1980s as a relatively niche industry offering private loans to businesses.Unlike banks, where loans are backed by customer deposits, private credit firms’ loans are backed by money raised from private investors, including pension funds, insurers and high net worth individuals. But they have become increasingly intertwined with the traditional banking industry, with lenders in Europe and the EU significantly exposed to private credit firms

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French customs reject British shellfish shipments after UK ‘reset’ deal with EU

One of Britain’s largest mussel exporters has suffered a £150,000 loss, after three of its shipments to the EU were rejected in recent weeks by French customs.Family-run business Offshore Shellfish, based in Devon, has continued exporting blue mussels to its European customers since Brexit, despite the administrative burden and onerous paperwork requirements.However, the past month has seen three out of four lorries prevented from entering the EU by customs officials at the port of Boulogne-sur-Mer for various reasons, which the company’s commercial director Sarah Holmyard called “subjective and inconsistent”.“We have sent hundreds and hundreds of loads since Brexit. We’ve never had a single one rejected,” Holmyard told the Guardian

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If you like a lot of chocolate on your biscuit … look away now

If you like a lot of chocolate on your biscuit you can no longer join our Club or pick up a Penguin, as the lunchbox favourites have reduced the amount of cocoa in their recipe so much they are now only “chocolate flavour”.The two snacks, both made by McVitie’s, changed their recipes earlier this year amid soaring cocoa prices – which have prompted manufacturers to try a number of different tactics to keep prices down.Club and Penguin can no longer be described as chocolate biscuits as they contain more palm oil and shea oil than cocoa, as first reported by the trade journal The Grocer.“We made some changes to McVitie’s Penguin and Club earlier this year, where we are using a chocolate flavour coating with cocoa mass, rather than a chocolate coating. Sensory testing with consumers shows the new coatings deliver the same great taste as the originals,” the McVitie’s owner, Pladis, said in a statement

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Nearly £11bn wiped off UK banks after US regional banking fears spooked markets – as it happened

Nearly £11bn has been wiped off the value of the largest banks listed in London today.Banks were among the big fallers in today’s sell-off, with Barclays down 5.66%, NatWest losing 2.88%, HSBC down 2.5%, Standard Chartered losing 3

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Bank shares lead global market fall amid jitters over US private credit

European stock markets fell on Friday and gold hit a record high after two US regional banks said they had been exposed to millions of dollars of bad loans and alleged fraud.Signs of credit stress rattled markets across Europe and Asia. In London the FTSE 100 fell 0.9%, Germany’s Dax fell 1.8%, Italy’s FTSE Mib fell 1

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‘A foot out in the cold’: leaders huddle at IMF as icy economic winds blow

“The security blanket is covering us, but maybe we have a foot out in the cold.” That was the typically colourful warning from the International Monetary Fund’s managing director, Kristalina Georgieva, this week to its gathering of finance ministers in Washington.At its spring meetings in April, the IMF said the erratic trade policies emanating from the White House, half a mile away from its glass and steel HQ, amounted to a “major negative shock” for the global economy.Since then, experts’ worst fears have not materialised – global growth has held up; frantic negotiations, agile manufacturers and new trading links have prevented supply chains collapsing.But the US economy has been cushioned against the full effects of the trade shift by the AI mega-boom – and the IMF issued a clear warning this week that it may not last