Latest news with #Santander
Reuters
8 hours ago
- Business
- Reuters
Telecom Italia in talks with banks to sell 1 bln euro state credit, say sources
MILAN, June 20 (Reuters) - Telecom Italia (TIM) ( opens new tab is in advanced talks with banks to sell a 1 billion euro ($1.2 billion) state credit the phone group expects to be able to cash in from the government after a prolonged legal dispute, two sources told Reuters. TIM and Rome have been locked in a legal battle over a license fee TIM was obligated to pay to the state in 1998, the year after the telecoms sector was deregulated. TIM scored a victory last year when a Rome appeals court ordered the Italian government to give TIM back the original licence fee, worth just over 500 million euros, a figure that has since doubled due to accrued interests. The government has appealed the decision in front of Italy's top court. Pending the top court's ruling, TIM is in talks with UniCredit ( opens new tab and Santander ( opens new tab to get financing against the expected 1 billion euro refund from the government, the people said. Such a form of financing, whereby a company raises cash from banks by selling them a claim, typically invoices, at a discount to the claim's nominal value, is called factoring. In a similar case to TIM's, the top court has ruled in favour of Vodafone (VOD.L), opens new tab. In any case, were the final court decision to be against TIM, the company would just return the banks the cash they have lent it plus any interest that has matured, the people said. That would be no different than repaying ordinary bank debt. TIM, UniCredit and Santander all declined to comment. Italy's top court last month delayed its final decision over the case, saying further checks were needed to establish whether TIM's initial claim was filed with the correct court. A hearing on the matter is expected next week. ($1 = 0.8632 euros)
Daily Mail
a day ago
- Business
- Daily Mail
Interest rates held at 4.25%: What it means for your mortgage and savings
The Bank of England has held interest rates at 4.25 per cent as it continues to tread carefully amid fears of resurgent inflation. The decision came as little surprise to financial markets, with a pause widely predicted by analysts. Its previous decision, last month, was to cut rates from 4.5 to 4.25 per cent, taking base rate 1 percentage point below its 5.25 per cent peak. The next decision will take place on 7 August, and will depend on what happens to the rate of inflation, but also the health of the overall economy. Today's decision to hold rates will be unwelcome news for many households who are hoping to see the cost of their mortgage reduce. However, it will be received positively by savers who saw rates slashed following May's cut. We explain what the Bank of England's decision to hold rates at 4.25 per cent means for your mortgage and savings - and whether rates could be cut again soon. What does this mean for mortgage borrowers? Today's decision to hold the base rate at 4.25 per cent will seem like bad news for mortgage borrowers. However, most would have seen little immediate benefit even if rates had been cut. That is because lenders usually base their pricing on the longer-term trajectory of interest rates, rather than reacting to individual base rate decisions. Interest rates are expected to be cut one more time this year to 4 per cent, before eventually settling at around 3.75 or 3.5 per cent. David Morris, head of homes at Santander said this year's rate cuts 'are already "priced in" to mortgage rates, meaning that market-leading rates should continue to hover around the top end of the threes or lower end of the fours'. He added: 'In practice home buyers trying to play the market and wait for the return of ultra-low rates may well be waiting for some time.' > Mortgage calculator: Check the best rates based on your property value What next for mortgage rates? The lowest fixed rate mortgage deals continue to hover just below 4 per cent. The lowest fixed rate is a three-year fixed remortgage deal offered by MPowered Mortgages charging 3.82 per cent. NatWest is offering the lowest two-year and five-year fix at 3.92 per cent and 3.95 per cent respectively. These are all based on a 40 per cent deposit, but most home buyers should be able to secure a rate of somewhere between 4 and 5 per cent. The future direction of mortgage rates hinges on what markets perceive to be the future of interest rates and the future of interest rates hinge not just on the rate of inflation, but also on the health of the overall economy. The latest Office for National Statistics monthly estimate for April 2025 showed the UK economy contracted by 0.3 percent compared with March, more than the 0.1 percent fall analysts had expected. Reacting to the negative surprise, money market bets for the next Bank of England rate cut in August increased from 81 per cent to 86 per cent, up from just 44 per cent at the start of the month. However, higher than expected inflation could result in MPC members refraining from rate cuts in the future. Inflation was 3.4 per cent in the 12 months to May, falling from 3.5 per cent in the 12 months to April, ONS figures revealed earlier this week. At 3.4 per cent, inflation still sits significantly higher than the Bank of England's 2 per cent target. Matt Smith, a mortgage expert at Rightmove, said: 'As the rate of inflation stays above 3 per cent, the expectation is that the Bank of England is set to act cautiously. 'Anticipation had risen that we may be in line for multiple base rate cuts this year at the peak of tariff uncertainty, but as some of these pressures have eased, this expectation has fallen back. 'Forecasts for the rest of the year are likely to jump around a bit due to ongoing global uncertainty and changes in how the market expects things to pan out.' At present, market forecasts point to interest rates being cut one more time in 2025 to 4 per cent and then falling to either 3.75 per cent or 3.5 per cent in 2026. Some major financial organisations have predicted they could fall further than this, though. For example, HSBC and UBS are forecasting that interest rates will fall to 3 per cent by the end of 2026. There are also some that think interest rates will stay higher. Analysts at Pantheon have forecast that interest rates will finish 2026 at 4 per cent - only 0.25 percentage points below where they are today. What should you do with your mortgage? Those who need to buy or remortgage soon may be wondering whether to opt for a two or five-year fix. Mortgage advisor Aaron Strutt of Trinity Financial advises borrowers to not base decisions on mortgage rates falling in the near future. 'The number of people opting for two-year fixes in anticipation of cheaper borrowing costs has increased as the base rate and fixed rates are expected to get cheaper over the near term,' he said. 'Some of the big investment banks have been predicting some pretty significant base rate reductions, but personally, I wouldn't bet on it. 'While most borrowers are taking two-year fixes, opting for a three- or five-year fix isn't such a bad idea. 'Payment security is really important in these challenging economic times.' What does this mean for savers? The base rate affects how much interest savers can earn on their money. In general, savings rates rise when the base rate is rising, and fall when it is falling. Now that the base rate has been held at 4.25 per cent, savers could get a 'stay of execution' according to Kevin Brown of building society Scottish Friendly. 'The longer the MPC waits [to cut], the longer savers can enjoy competitive returns,' he added. Those who keep their cash in easy-access Isas are most at risk of rate cuts, according to one financial expert. The top accounts on This is Money's best-buy cash Isa tables currently pay around 5.4 per cent, well above the current base rate of 4.25 per cent. James Blower, founder of the Savings Guru says: 'Easy access Isa rates are the most ripe for cuts. 'Moneybox has already cut its rate today and Tembo is set to tomorrow – expect to see Plum and Trading 212 fall back too.' What next for savings rates? The direction of travel for savings rates in a falling base rate environment is only one way and that is down. Though the base rate has been held at 4.25 per cent, if it falls to 4 per cent or 3.75 per cent by the end of this year as markets are currently predicting, fixed-rate bonds and Isas are the savings accounts most likely to be in the firing line. Blower said: 'I can't see any reason for rates to do anything but fall in the second half of 2025.' For those looking to lock their money away for a time, the best one-year bond currently pays 4.5 per cent. This is down from a high of 6.2 per cent in October 2023. Blower added: 'Fixed-rate bonds and fixed Isas are likely to hold around current levels, for now, but expect them to ease back in the summer and fall further if I am right about the August cut.' 'The 4.5 per cent paid on one-year bonds currently, while lower than it has been earlier in the year, is likely to look great value in the coming weeks. 'Expect one-year best-buys to fall to around the 4.25 per cent mark by the end of the summer if the base rate is cut in August.' > Best fixed-rate savings accounts: See the top deals in our independent tables What should savers do now? Savers should keep a keen eye on their savings rate, whether it is an easy-access account, fixed-rate account or an Isa. If your money is not working hard enough for you, move it to an account paying a better rate. Rachel Springall of rates scrutineer Moneyfacts Compare says: 'The savers who are worried rates will come down in the coming months may then wish to grab a top fixed deal for a guaranteed return.' 'Outside of fixed bond rates, there has been some competition across the fixed cash Isa top rate tables, now with new market-leading rates. 'Savers looking to protect their money from tax would do well to take advantage of their new Isa allowance if they have yet to do so. 'Loyalty does not pay so it comes down to savers to proactively review rates and switch their account if they are getting a poor return on their hard-earned cash.' Best savings rates and how to find them The best easy-access savings deals pay around 4.75 per cent. Atom Bank is offering a market-leading easy-access deal paying 4.75 per cent. Someone putting £10,000 in this account could expect to earn £475 in interest after a year, if the rate remains the same. Those with cash they won't immediately need over the next year or two should consider fixed-rate savings. The best one-year deal is offered by Cynergy Bank paying 4.5 per cent. A saver putting £10,000 in this account will earn a guaranteed £450 interest over one year. It comes with full protection under the Financial Services Compensation Scheme up to £85,000 per person. The best two-year bond pays 4.43 per cent and comes from Birmingham Bank. This provider also offers the best three-year bond which pays 4.47 per cent. Hampshire Trust Bank has a five-year bonds which pays 4.46 per cent. Savers should also strongly consider using a cash Isa to protect the interest they earn from being taxed. CMC Invest is currently offering a market-leading 5.44 per cent on its easy-access cash Isa for new customers. It includes a 0.85 per cent bonus for three months. After this the rate will revert to 4.59 per cent. Meanwhile, Trading 212* has a cash Isa paying 4.86 per cent with a 12-month bonus of 0.76 per cent. Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Daily Mirror
a day ago
- Business
- Daily Mirror
Santander 'eyeing up takeover of rival UK bank' after major firm put up for sale
Sky News has cited City sources who claim that Santander has contacted Banco Sabadell, the Spanish parent company of TSB, about a possible takeover Santander has reportedly approached the owner of TSB about a potential takeover of the UK high street bank. Sky News has cited City sources who claim that Santander has contacted Banco Sabadell, the Spanish parent company of TSB, about a possible takeover. Sabadell confirmed earlier this week that TSB is up for sale and said it had received interest about an acquisition, but did not name who had expressed interest. Sabadell and Santander, also a Spanish bank, have so far declined to comment on the report. TSB has around 175 bank branches in the UK, while Santander has 444 locations, but revealed plans earlier this year to shut 95 branches. The closures will leave Santander with 349 physical sites. Sabadell said: 'Banco Sabadell will assess any potential binding offer it may receive. Naturally, any transaction would be subject to the satisfaction of all legal obligations.' The reports of its interest in TSB come after the executive chairman of Santander denied the high street lender was looking to the UK. Speaking at the World Economic Forum in Davos in January this year, Ana Botin denied said Santander would remain in the UK 'into the future'. She said: 'We love the UK. It's a co-market and will remain a co-market for Santander. Punto [full stop].' The bank has been in the UK since it purchased Abbey National in November 2004. Sabadell is currently in the middle of rebuffing a takeover attempt by Spanish banking group BBVA, a deal which is opposed by the Sabadell board and government in Spain. BBVA has launched an €11billion (£9.4billion) move to take control of Sabadell. It comes a decade after Sabadell bought TSB for £1.7billion in the UK, a year after Lloyds had spun off TSB in a stock market float. TSB recently reported a £101million pre-tax profit in the first quarter, nearly double what it made a year ago. Meanwhile, Santander has reported pushed back bids from NatWest and Barclays to buy its UK retail bank. The Mirror has recently published a list of banks closing in June. There were 79 bank branches set to close for good this month, including 16 Lloyds branches, 15 Halifax, 24 Natwest, 23 Santander, and one TSB. According to a report from the consumer group Which?, banks and building societies have closed over 6,300 high street branches at a rate of 53 per month over the last decade. This represents 64% of the branches which were open back in 2015. Banks say the decline in high street branches has been driven by a rapid increase in online and mobile banking, and a rapid decline in the use of physical branches.
Yahoo
2 days ago
- Business
- Yahoo
Barclays and Santander are potential bidders for Banco Sabadell's TSB unit
-- Banco Sabadell SA's British unit TSB has drawn initial interest from potential buyers including Barclays Plc and Banco Santander SA (NYSE:SAN), according to a Reuters report on Wednesday. The banks are in early stages of exploring separate bids for TSB, according to the report. Sabadell confirmed Monday it had received expressions of interest and would consider offers for the business it has owned for ten years. A potential sale of TSB could strengthen Sabadell's defense against a hostile takeover attempt by rival BBVA (BME:BBVA) SA by removing a valuable asset from its portfolio. The discussions are still in preliminary phases, and there is no guarantee they will result in a transaction. Neither potential buyer has made a formal offer at this stage. Related articles Barclays and Santander are potential bidders for Banco Sabadell's TSB unit Apple interested in using AI to design custom chips- Reuters, citing exec Microsoft plans to cut thousands of jobs in sales division - Bloomberg
Daily Mail
2 days ago
- Business
- Daily Mail
Santander eyes TSB takeover after rival Sabadell puts the British lender up for sale
Santander has reportedly approached Spanish rival Sabadell about a takeover of British lender TSB. Sabadell has put TSB, which has 175 UK branches, up for sale and said it had received preliminary expressions of interest. Sky News reported Santander was among them, despite persistent speculation that its own UK network is also for sale. Its interest appears to imply that Santander boss Ana Botin is open to expansion here. Analysts see UK-listed NatWest as the most likely buyer for TSB after the Treasury sold its last stake in the bank last month. Sabadell put TSB up for sale as it fights off Spanish lender BBVA's £9billion hostile takeover approach. Hugo Cruz and Ban Maher, analysts for KBW Europe, said it would 'make sense for Sabadell to consider its options' with TSB having 'limited synergies with the rest of the group'. A report in the Financial Times that TSB could be sold for £1.7billion to £2billion might be 'too low' for Sabadell, which bought it for £1.7billion in 2015, the analysts said.
