London's Investment Bankers Set for Bigger Bonuses Amid Economic Recovery
Key Ideas
  • London's investment bankers are expected to receive higher bonuses due to the city's recovery from a two-year slump caused by surging interest rates.
  • Millions of households in Great Britain will enjoy lower gas and electricity bills this summer as the energy price cap drops by £122 annually.
  • Britain is planning to excavate vast salt caverns under its biggest former naval base in Dorset to store hydrogen for emergencies, enhancing energy security.
  • Legal & General's announcement of a new fund will allow employees saving in workplace pension schemes to invest in illiquid, unlisted assets for the first time.
London's investment bankers are anticipated to see an increase in bonuses this financial year following a period of economic recovery in the city after facing challenges due to rising interest rates. The demand for investment banking services, such as facilitating mergers, advising on fundraising, and underwriting, weakened during the pandemic-induced surge in borrowing rates, leading to job cuts and pay reductions in the sector. On the energy front, millions of households in Great Britain are set to benefit from reduced gas and electricity bills during the summer months due to a price cap adjustment, although bill increases are projected for the upcoming winter, posing challenges for many. Additionally, plans are underway in Britain to create salt caverns beneath Portland Harbour in Dorset to store hydrogen reserves, ensuring emergency energy supply and supporting the country's energy security. Moreover, Legal & General's introduction of a new fund will enable employees participating in workplace pension schemes to access illiquid and unlisted assets for potential investments, diversifying their portfolios and potentially yielding higher returns. Lastly, JP Morgan's asset management division has taken a short position against shares of Raspberry Pi, a microcomputer manufacturer recently listed on the stock market, indicating market dynamics and investment strategies in London's financial landscape.
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