Barclays profits jump ahead of looming bank tax; French bond yields hit fresh 24-year high – business live

Key events16m agoBarclays' bumper profits show need for bank windfall tax at budget, TUC says38m agoIntroduction: Barclays profits jump ahead of looming bank tax; French bond yields hit fresh 24-year highHere’s our full story on Barclays:Barclays is giving a further £500m to shareholders after reporting a jump in quarterly profits, as the lender steels itself for an increase in UK bank taxes at next week’s budget.It comes only days before the chancellor, John Healey, is due to announce a hike on banks in the 28 October budget, as the prime minister Andy Burnham’s government looks for ways to raise revenue to help fund cost of living support programmes.Barclays’ strong performance included a 6% rise in net interest income at its UK retail banking operations, to £2bn. The figure has become a flashpoint for campaigners pushing for a bank tax. It accounts for how much money banks make from loan charges, minus what they pay on deposits, and is linked to interest rates, which have been rising as the Iran war has driven up inflation expectations.Barclays' bumper profits show need for bank windfall tax at budget, TUC saysBarclays third-quarter profits of £2.3bn – bring its profits so far this year to £8.4bn, up 15% on the year.The TUC called the government for higher bank taxes, to fund a social energy tariff.At the moment, the bank surcharge is an additional 3% corporation tax on the profits of banking companies above £100m. The Conservatives slashed the surcharge from 8% to 3% in 2023, just as interest rates were reaching their peak – a move that has cost the Treasury £6bn, the union body argued.The TUC is calling for the government to increase the surcharge to raise up to £60bn over the next four years. Even just reversing the Tory cuts and setting it at 8% would raise £9bn over four years.TUC general secretary Paul Nowak said: double quotation markBarclays’ bumper profits aren’t an anomaly. All the big banks are doing exceptionally well at the same time – but their windfall profits have been underpinned by mortgage misery for millions. That’s why it’s time for banks to pay a fairer share. At a time when the chancellor needs to raise more revenue to support households and businesses through a looming energy bill crunch, Britain’s big four banks have made £200bn in profit since 2021. They can - and should - pay more tax. Introduction: Barclays profits jump ahead of looming bank tax; French bond yields hit fresh 24-year highGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Barclays’ profits jumped in the last quarter and it handed more cash to shareholders as further bank taxes looms in John Healey’s budget next Wednesday.The UK lender reported a 12% rise in pre-tax profits to £2.3bn for the three months to 30 September. Income rose 3% to £7.4bn, ahead of expectations. In the UK, loans grew 7% year on year with particular strength in its corporate business, up 14%.It announced a new £500m share buyback, bringing the amount handed back to shareholders so far this year to £2.8bn, up 46% year on year.C. S. Venkatakrishnan, the Barclays chief executive, said: double quotation markI am pleased with the ongoing momentum of Barclays’ operational and financial performance. With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets. We are confident in and committed to the 2028 targets that we laid out earlier in the year. The investment bank delivered strong equities performance, offsetting a challenging environment for FICC [Fixed Income, Currencies and Commodities]. Barclays’ investment bank reported income of £3.1bn, lower than analysts had forecast. Income from fixed income trading slid 19%, worse than a 5% drop among US banks.The TUC urged the chancellor to increase taxes on banks at next week’s budget.The union body wants the government to use the money to pay for a social energy tariff that brings down energy bills by up to £559 a year for those on low and middle incomes.Last week, when bank stocks were falling amid talk of a hike in UK bank taxes, Angeline Ong, senior technical analyst at investing and trading platform IG, noted: double quotation markA UK bank tax risk is now a base case. If it is confirmed on 28 October, it’ll be the size and timing that will be key. If Healey does go ahead, shares of Lloyds and NatWest, which are almost entirely exposed to the UK, would likely be impacted most, and you are seeing this already in the share price reaction today. Barclays is partly exposed. HSBC is least exposed in the mix. In financial markets, the cost of French government borrowing has increased further, hitting multi-decade highs, and piling pressure on ministers after weeks of increasingly violent street protests.The yield, or interest rate, on France’s 10-year bonds rose 4 basis points to 5.039%, the highest since July 2002, after breaking through the 5% mark on Wednesday.The risk premium over German Bunds has widened to 163bps, the widest since November 2011, reflecting investor concerns over France’s fiscal outlook. The government has yet to pass its budget.Oil prices have climbed above $111 a barrel this morning, after more ​Houthi attacks in Saudi Arabia fuelled fears over an escalation of the Middle East conflict and further disruptions to supplies.Brent crude, the global oil benchmark, is up 2.5% at $111.58 a barrel, raising fears of higher inflation, which puts pressure on bonds.Asian stock markets slid, with Japan’s Nikkei down 2.65%, China’s CSI 300 losing 1.5% and South Korea’s Kospi tumbling 3.7%.The Agenda 10am BST: UK index-linked gilt 2031 action 11am BST: UK CBI Industrial tends survey 11.50am BST: Bank of England governor Andrew Bailey speech 1.30pm BST: US Initial jobless claims for week of 17 October 3pm BST: Eurozone consumer confidence flash for October 3pm BST: US Conference Board leading index for September