BUSINESS LIVE: NatWest names new boss; Retail sales jump; Oil prices rise

(PA) – Sales of retirement annuities reached a post-pension freedoms high last year, according to the Association of British Insurers (ABI).

Annuity sales soared in 2023 with a total sales value of £5.2billion, a 46% increase compared with 2022, the association said.

This is the highest annual value since 2014, when the pension freedoms were announced which granted retirees more flexibility over how to access their retirement savings.

The freedoms, which came into force from 2015, gave over-55s a range of options over how to use their defined contribution (DC) pension pot. Generally, people can take up to 25% of their pension as a tax-free lump sum.

Before the freedoms, many would have bought an annuity, which provides retirees with a guaranteed income. Annuities had become controversial due to disappointing rates and concerns that not enough people were shopping around to get the best deals for their needs.

The ABI suggested strong sales reflected higher interest rates, as more people have been looking to secure a reliable retirement income.

Last year included a bumper fourth quarter which saw £1.5billion in annuity sales, off the back of a strong third quarter when sales totalled £1.4billion, the ABI said.

Concerns are mounting for 152-year-old British brewing stalwart Adnams plc.

The Aquis-listed, Suffolk-based brewer of popular scoops Ghost Ship and Broadside has confirmed a report from Sky News that it is scrambling to secure fresh private funding for the business.

Retail purchases rebounded last month following a significant plunge in December, raising hopes of a quick end to the UK’s economic recession.

Total sales volumes increased by 3.4 per cent in January, according to the Office for National Statistics, more than double economists’ forecasts of 1.5 per cent growth.

Foxtons shares have rocketed over the last year, as investor optimism finally returns to the estate agent on the back of a booming rental business.

The FTSE All-Share firm’s shares have risen almost 50 per cent over the last 12 months, having been ‘turbo-charged’ by increased demand and higher rents which helped drive steady profit growth.

There are 32 investment trusts which would have made investors more than £1million if they had put their full Isa allowance into the same trust each year since 1999, data shows.

Sticking their entire annual allowance into each of these trusts over 25 years would have allowed investors to join the ranks of the Isa millionaires.

Energy bills will fall in April, experts think – but only by 15 per cent, or £293, to £1,635 a year.

Investors are betting on three interest rate cuts in the UK this year after the economy tipped into recession.

At the end of a week of crucial economic data, the Bank of England is now expected to lower headline borrowing costs from 5.25 per cent to 4.5 per cent by Christmas.

NatWest Group has confirmed Paul Thwaite as its permanent chief executive, as the lender posted its highest annual profit since the global financial crisis.

The banking giant’s pre-tax profits jumped by a fifth to £6.2billion in 2023, its best performance since making £9.3billion in 2007 and around £200million above analyst forecasts.

The caravanserai of bosses, buyers, influencers, journalists, models and the rest has swept into town for London Fashion Week (LFW), which begins today.

This year, some designers’ shows will be staged against a contentious background. As David Bowie said, in his song Fashion, this can be a world ‘full of tension and fear’.

The shrinking universe of London-listed real estate investments trusts (REITs) is tipped to diminish further in 2024, as the sector struggles under the weight of low assets, weak share prices and high discounts.

Charles Hepworth, investment director at GAM Investments:

‘After December’s 3.3% collapse in UK retail sales, today’s number for January went against all expectations.

‘Retail sales rose 3.4% despite the country being underwater, both literally and figuratively, after three separate winter storms.

‘It should be noted that this data can be extremely volatile and swings as wildly as a Conservative by-election majority.

‘Should this trend persist, with insightful economic data coming in better than expected, the economic slowdown is expected to be a shallow and short-lived affair. That isn’t necessarily good news for early rate cut hopes.’

Taylor Swift has brought American Football to a new female audience since she began dating a player – and now Charlotte Tilbury wants to open up Formula 1 to young women.

Matt Dalton, partner, risk consulting and consumer sector leader, at Mazars:

‘The retail sales number -surprisingly-blew past expectations, rising at the fastest pace in nearly three years. As inflation moderated, consumers hit main street and opened their wallets in January, in every category bar clothing.

‘The data release is a very positive read for the UK economy going forward, and consistent with our view that a UK recession will not necessarily deepen or indeed last long.

‘Slower online retail sales is a cause for concern, however, and we would expect this category to pick up too, before we talk about any sort of a sustainable bullish consumer trend.’

UK retail sales grew at their fastest pace in nearly three years in January, beating expectations, fresh ONS data shows.

Retail sales rose at a monthly rate of 3.4 per cnet in January, according to the Office for National Statistics, compared with forecasts for an increase of 1.5 per cent. The rise was the biggest since April 2021.

Sterling was last flat on the day at $1.259, having traded around $1.25815 prior to the numbers. Against the euro , the pound was also unchanged on the day at 85.46 pence.