Luxury Supplier MinervaHub Asks Banks to Alter Terms of Its Debt
MinervaHub SpA, a supplier of materials for fashion and accessories, is renegotiating debt terms with lenders as it battles a downturn in the luxury sector.
The Milan-based firm is working with bankers at Rothschild & Co. on the talks, according to people familiar with the matter, who asked not to be identified because they're not authorized to speak publicly.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
38 minutes ago
- Yahoo
Mitsubishi UFG Notes Market Implications From Bank of England's Policy Decision
The Bank of England left rates unchanged on Thursday, as expected, sai MUFG. The six-to-three vo Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
38 minutes ago
- Yahoo
Bank of England holds interest rates at 4.25% amid inflation fears
The Bank of England (BoE) has kept interest rates untouched at 4.25% amid geopolitical uncertainty and surging food and oil prices. Members of the Monetary Policy Committee (MPC) voted by 6-3 to keep borrowing costs on hold following their reduction announced in May. Three members — Swati Dhingra, Dave Ramsden and Alan Taylor — backed a quarter of a point cut to 4%. Dhingra and Taylor had backed a half a point reduction at the meeting in May. It means the Bank has voted to cut rates at every other meeting since it started easing borrowing costs last August, from a peak of 5.25%. The governor of the Bank of England Andrew Bailey said the world had become 'highly unpredictable' as interest rates were held at 4.25%. Read more: UK inflation slows to 3.4% in May as transport costs ease Bailey said: 'Interest rates remain on a gradual downward path, although we've left them on hold today. 'The world is highly unpredictable. In the UK we are seeing signs of softening in the labour market. 'We will be looking carefully at the extent to which those signs feed through to consumer price inflation.' The decision had been widely anticipated by markets, particularly following inflation data for May showing prices rising 3.4% — well above the Bank's 2% target. Investors and economists saw little chance of a rate cut, especially with tensions in the Middle East escalating and pushing oil prices higher. Traders bet there is an 84% chance that policymakers will cut from 4.25% to 4% at the next meeting. The chances stood at 77% on Wednesday. This would remain in line with the Bank's pattern of reducing rates at every other meeting since it started lowering from a peak of 5.25% last August. Vivek Paul, UK chief investment strategist at BlackRock Investment Institute, said:'The Bank's decision to hold firm today shows that, much like the weather, inflation is too hot to feel comfortable about cutting rates just yet. Services inflation showed signs of easing in yesterday's CPI print, but remains stubbornly high. Read more: FTSE 100 LIVE: Stocks slip as Bank of England holds interest rates "Among developed market central banks, the Bank of England still faces one of the toughest trade-offs between growth and inflation. Uncertainty remains around tariff impacts, and the recent escalation of tensions in the Middle East has added fresh uncertainty." Indeed, the Monetary Policy Committee (MPC), led by governor Bailey, was expected to maintain a cautious tone even before the outbreak of conflict between Israel and Iran sent oil prices soaring by 8.5% in less than a week. Zara Nokes, global market analyst at JPMorgan Asset Management, said UK inflation is still 'uncomfortably high'. "Escalating tensions in the Middle East, and the upward pressure this is putting on oil prices, will only add to the Bank of England's concern about easing rates too quickly," she said. "The Monetary Policy Committee will face a tougher choice when meeting again in August, given the combination of still-sticky inflation and evidence that the labour market is quite clearly cooling. A deterioration in the labour market should, in theory, put downward pressure on inflation, but until there are clear signs of this in the hard data, the Bank should be careful not to claim victory over inflation quite yet, not least because of the uncertain geopolitical climate.' Threadneedle Street admitted that the Middle East conflict is pushing up energy prices. "Energy prices have risen owing to an escalation of the conflict in the Middle East. The Committee will remain sensitive to heightened unpredictability in the economic and geopolitical environment, and will continue to update its assessment of risks to the economy," it said. Brad Holland, director of investment strategy at Nutmeg, said: 'It was always going to be an uphill battle for the Bank of England to justify a back-to-back rate cut following last month's decision to bring down rates. Services inflation and wage growth continue to run hot, and external factors such as tariffs and global conflict have created too many 'unknowns'. The Bank is showing caution. 'For now, the question weighing on many people's minds is: how long will it take for interest rates to fall further? It is believed by many that the 'neutral rate', where the UK economy can deliver price stability, lies around 3%. But, we could be a long way away from this target with the market currently expecting the base rate to fall to 3.5% by April 2026. Getting services inflation down to a more manageable level is crucial to lowering interest rates. 'Many expect the next rate cut to take place in the early autumn when trends in services prices will be clearer, and the impact of the international situation will be better understood. Arguably, the Bank of England is playing for time.' Read more: Number of million-pound homes for sale in Britain doubles since 2019 The UK economy contracted 0.3% in April, marking the sharpest monthly decline since 2023. Analysts cited the lingering effects of US president Donald Trump's trade tariffs and a temporary hit from the expiration of the stamp duty holiday. Lindsay James, investment strategist at Quilter, said: 'Events of recent weeks means all hopes of the BoE moving faster to cut interest rates have been extinguished. As such, it comes as very little surprise that the MPC has chosen to hold rates at 4.25%. Although we had three votes for a cut, ultimately inflation continues to drive decision making, and with the headline figure remaining elevated earlier this week, there is very little movement just now for the committee, and that is before global events are factored in. 'We are still awaiting the full impact of Donald Trump's tariffs to show up in the prices of goods. We are approaching the end of the 90-day pause on reciprocal tariffs, and what happens from there is really anyone's guess. Even with the US-UK trade deal, the raft of tariffs on other nations would likely be felt in some form here too. In particular, Europe looks the least likely to cave to Trump, and given it is the UK's biggest trading partner, there will be knock-on effects." The BoE said that underlying UK GDP growth "appears to have remained weak", and the labour market has "continued to loosen". It also warned that there was a "two-sided risk to inflation", as weak demand could pull it down, but higher food prices could send it higher. "Consumer price inflation is expected to remain broadly flat at current rates throughout the remainder of the year before falling back towards target next year," the BoE said. Despite four rate cuts over the past year, the BoE is proceeding cautiously after aggressive tightening through 2022 and 2023 to combat inflation. Markets currently expect two more 25 basis-point cuts by the end of 2025. Read more: Pound treads water as Bank of England holds interest rates Matthew Ryan, head of market strategy at Ebury, said: 'For now, we are sticking by our call for just two further cuts to the base rate between now and year-end, possibly in August and November, when the latest Monetary Policy Reports will be released. 'We don't believe that the MPC will entertain the idea of lowering rates more aggressively than that just yet." The Bank rate is a key reference point for borrowing and savings products across the UK, affecting everything from mortgage costs to interest on savings accounts. Kevin Mountford, co-founder of Raisin UK, warned of potential volatility in mortgage markets. 'This decision has wide implications for consumers. While Zoopla's House Price Index reported healthy housing sales in May, fixed rates look like they could become unsettled. Consumers looking to borrow should take advantage when they see a good option for them," he said. 'Any decision that has a financial impact for consumers, like buying a new home, is of course a big one and with a high cost of living showing little sign of ease, it can be easy to get stuck in the day to day. The current rates provide consumers with little reassurance but it is essential for people to take a step back and think about the bigger picture." Frances Haque, chief economist at Santander UK, said: 'Aspiring homeowners and those already on the ladder could expect to see mortgage rates continue to hover between the top end of the threes or lower end of the fours. For this to change significantly we'd need to see changes in economic data — and as ever, that could see mortgage rates go up as well as down. "While these may pose bumps in the road for buyers, the traditional increase in home moving we see during the summer will likely continue to drive demand for properties as we enter Q3 which, coupled with affordability improvements, means we expect the 2025 mortgage market will continue to grow.' Across the Atlantic, the US Federal Reserve opted to leave borrowing costs unchanged on Wednesday. The Fed left its outlook for interest rates this year unchanged, with its 'dot plot' indicating another two cuts. Seema Shah, of Principal Asset Management, said that decision was 'somewhat surprising'. She said: 'Any change in this year's dot plot would have been interpreted as a signal that the Fed has a clear plan about its future policy path, when actually the likely truth is that, with the economic outlook still very much shrouded in uncertainty, the Fed is unsure of how things will pan out.' However, some central banks are lowering borrowing costs. The Swiss National Bank (SNB) cut its interest rate to zero on Thursday in response to falling inflation and a stronger Swiss franc. The SNB reduced its policy rate from 0.25%, as had been expected by markets. Norway's central bank surprised markets today by announcing a quarter-point interest rate cut amid the 'uncertain' economic outlook. Norges Bank lowered borrowing costs from 4.5% to 4.25% — its first reduction in five years. Read more: Trending tickers: Alphabet, Amazon, Circle, Shell and Whitbread Bitcoin price steady above $105k as Trump mulls Iran strike Number of million-pound homes for sale in Britain doubles since 2019
Yahoo
38 minutes ago
- Yahoo
Lenders follow Bank of England and hold mortgage rates
Most lenders opted to maintain their mortgage deals as the Bank of England (BoE) decided to hold interest rates on Thursday, but experts expect more sub-4% offers in the coming weeks. The average rate for a two-year fixed mortgage stands at 4.89%, while five-year fixed deals average 5.19%, according to data from Uswitch. The Bank of England has kept interest rates at 4.25% amid inflation fears, delivering a blow to homeowners who were expecting a relief in their mortgage. However, industry experts are not giving up hope yet. Tom Davies, group financial services managing director at LRG, said: "For prospective buyers, the key question shouldn't be, 'Will the rate fall again soon?' but, 'Can I afford to buy now, and is the right property available?'. Today that answer is more often yes than no. Buyers who wait for the perfect moment may find it never arrives — or that it passes them by. "What matters now is a functioning, competitive mortgage market with realistic pricing and good choice. That's a strong foundation: a good environment for anyone looking to move or invest." Matt Thompson, head of sales at estate agency Chestertons, said: 'Some buyers paused their property search in the hope for another interest rate cut and a more varied selection of mortgage products but higher-than-expected inflation has diminished those odds for the time being. "We have recently seen some lenders increase the cost of their fixed-rate deals but there are still sub-4% options available which will encourage some house hunters to resume their search over the coming weeks.' Read more: UK house price growth halves after stamp duty break end The primary inflation measure, the Consumer Price Index (CPI), stood at 3.4% in the 12 months to May, a slowdown from the previous month. However, price increases are still well above the BoE's 2% target. This week among the major lenders only Halifax reduced rates, as most banks decided not to touch their mortgage deals. HSBC (HSBA.L) has a 4.01% rate for a five-year deal, unchanged from the previous week. For those with a Premier Standard account with the lender, this rate is 3.98%. Looking at the two-year options, the lowest rate is 3.99% with a £999 fee, also unchanged from the previous week. Both cases assume a 60% loan-to-value (LTV) mortgage, meaning buyers need to have at least 40% for a deposit. HSBC offers 95% LTV deals, meaning you only need to save for a 5% deposit. However, the rates are much higher, with a two-year fix at 5.05% or 4.89% for a five-year fix. This is because their financial situation and deposit size determine the rate someone can get. The larger the deposit, the lower the LTV, allowing buyers to access better deals because lenders consider them less risky. NatWest's (NWG.L) five-year deal is 3.95% with a £1,495 fee, untouched from the previous week. The cheapest two-year fix deal is 3.2%, again the same as last week. You'll need at least a 40% deposit to qualify for the rates in both cases. At Santander (BNC.L), a five-year fix is 4.08%% for first-time buyers, the same as before. It has a £999 fee, assuming a 40% deposit. Read more: Number of million-pound homes for sale in Britain doubles since 2019 For a two-year deal, customers can also secure a 4.01% offer, with the same £999 fee, again unchanged. However, the lender has cut a raft of deals for first-time buyers: 90% LTV two-year fixed rate with a £0 fee and £250 cashback. Rate reduced by 0.15% to 4.73%. 95% LTV two-year fixed rate with a £0 fee and £250 cashback. Rate reduced by 0.14% to 5.00%. 90% LTV five-year fixed rate with a £999 fee and £250 cashback. Rate reduced by 0.10% to 4.47%. 95% LTV five-year fixed rate with a £0 fee and £250 cashback. Rate reduced by 0.22% to 4.85%. The new pricing is available to all customers, whether they are applying via a broker or directly, under Santander's "no dual pricing" pledge. Barclays (BARC.L) was the first among major lenders to bring back under-4% deals and currently has a five-year fix at 3.99%, unchanged from last week. For "premier" clients, this rate drops to 3.98%. The lowest for two-year mortgage deals is 3.97%, also unchanged. Barclays last month launched a mortgage proposition to help new and existing customers access larger loans when purchasing a home. The initiative, known as Mortgage Boost, enables family members or friends to effectively "boost" the amount that can be borrowed toward a property without needing to lend or gift money directly or provide a larger deposit. Under the scheme, a borrower's eligibility for a mortgage can increase significantly by including a family member or friend on the application. For example, an individual with a £37,500 annual income and a £30,000 deposit might traditionally be able to borrow up to £168,375, enabling them to purchase a home priced at around £198,375. However, with Mortgage Boost, the total borrowing potential can rise substantially if a second person, such as a parent, joins the application. In this case, if the second applicant also earns £37,500 a year, the combined income could push the borrowing limit to £270,000, enabling the buyer to afford a home worth up to £300,000. Nationwide's (NBS.L) lowest mortgage rate for first-time buyers is 4.24% for a five-year fix, which is the same as before. First-time buyers are currently looking at 4.04% for a two-year fix, again no changes from the previous week. Read more: Average UK house asking price drops by more than £1,000 The lender has adjust its mortgage affordability calculation by reducing stress rates by 0.75 and 1.25 percentage points, helping applicants borrow more, whether buying a first home, moving, or remortgaging. Applicants can borrow, on average, £28,000 more; however, in some remortgage cases, customers could borrow up to £42,600 more. Nationwide also reduced its standard stress rate and the rate applied to eligible first-time buyers and home movers fixing their deal for at least five years. Halifax, the UK's biggest mortgage lender, offers a five-year rate of 4.03% (also 60% LTV), untouched from last week. The lender, owned by Lloyds (LLOY.L), offers a two-year fixed rate deal at 3.97%, with a £999 fee for first-time buyers, lower than the previous 4%. It also offers a 10-year deal with a mortgage rate of 4.78%. Read more: How to choose where to live as you get older Halifax has enhanced its five-year fixed mortgage products by increasing borrowing capacity. This improvement allows borrowers to access up to £38,000 more, enabling them to secure larger mortgages based on individual incomes. Rachel Springall, finance expert at Moneyfacts, said: "The flourishing choice of low-deposit mortgages will no doubt be welcomed by borrowers looking to remortgage or are a first-time buyer. "The government has been clear that it wants lenders to do more to boost UK growth, and so a rise in product availability for aspiring homeowners is a healthy step in the right direction." NatWest's currently offers some of the lowest rates, with a five-year fix coming in at 3.95% and a two-year deal at 3.92%. However both require a hefty 40% deposit. The average UK house price is £297,781, so a 40% deposit equals about £120,000. A growing number of homeowners in the UK are opting for 35-year or longer mortgage terms, with a significant rise in older borrowers stretching their repayment periods well into their 70s. Read more: UK inflation slows to 3.4% in May as transport costs ease Lender April Mortgages offers buyers the chance to borrow up to six times their income on loans fixed for five to 15 years, from a deposit of 5%. Both those buying alone and those buying with others can apply for the mortgage. As part of the independent Dutch asset manager DMFCO, the company offers interest rates starting at 5.20% and an application fee of £195. Skipton Building Society has also said it would allow first-time buyers to borrow up to 5.5 times their income to help more borrowers get on the housing ladder. Leeds Building Society is increasing the maximum amount that first-time buyers can potentially borrow as a multiple of their earnings with the launch of a new mortgage range. Aspiring homeowners with a minimum household income of £40,000 may now be able to borrow up to 5.5 times their earnings. Mortgage holders and borrowers have faced record-high repayments in recent years, as the Bank of England's base rate has been passed on by banks and building societies. According to UK Finance, 1.3 million fixed mortgage deals are set to end in 2025. Many homeowners will hope the Bank of England acts quickly to cut rates more aggressively. At the same time, savers will likely root for rates to remain at or near their current levels. Read more: The pros and cons of getting a mortgage into your 70s How school fees can affect your mortgage borrowing Pros and cons of lifetime ISAs
