Business news live: Workers to save more into pensions and FTSE 100 to open near record levels

The Department for Work and Pensions are reviving the Pensions Commission, amid concern that people are not saving enough for retirement. Estimates include three million self-employed people saving nothing at all, with some ethnic groups and low-paid workers at particular risk of retirement poverty without change over the intervening decades. A report from the commission will be due in 2027 to bring plans into place.

The new week brings with it fresh attempts for several markets to hit new highs, with the FTSE 100 pushing around the 9,000 points threshold, bitcoin seeks support above $120,000 and Brent Crude Oil ended last week above $70.

Meanwhile, two investment banks - Bank of America and Goldman Sachs - have differing views on how fast the Bank of England will reduce interest rates for the rest of 2025, though both expect a cut in August.

Follow The Independent’s live coverage of the latest stock market and business news here:

Business news live - Monday 21 July

• FTSE 100 breached 9,000 points last week before falling back
• Pension changes coming including a rise in workplace salary savings
• 3 million self-employed people saving nothing at all for retirement
• How much you need to retire and 4 things to help you get there

Business news live - Monday 21 July

16:45 , Karl Matchett

That’s it for us for today, we’ll be back tomorrow with more coverage of the mortgage market, pensions changes, stock markets and more.

We’ll leave you with key news from today’s coverage:

• How much you need in your pension to retire — and four things to help you reach that amount
• Wise co-founder condemns ‘inappropriate and unfair’ US listing proposals
• Are you among the 82% of self-employed people who don’t pay into a pension? How to take charge of your retirement savings

See you tomorrow from 7am.

Business news live - Monday 21 July

06:58 , Karl Matchett

Good morning and welcome to the start of another week of business news coverage here on The Independent.

We’ll keep you abreast of the latest stories regarding the UK’s biggest firms, political moves impacting SMEs, personal finance, the stock markets and more.

Can FTSE 100 challenge 9,000 points again?

07:07 , Karl Matchett

The UK’s benchmark index, the FTSE 100, pushed past the 9,000 points level for the first time ever last week - but despite doing so a couple of times, didn’t quite manage to stabilise above it.

This week more earnings reports will be a test of whether UK plc can breach the barrier more permanently.

There were one-off impacts last week to big businesses too, such as Diageo’s chief executive departing, GSK being hit by the FDA rejecting a new drug’s approval and WPP’s profit warning.

‘Why take the risk?’ Readers push back on Rachel Reeves’s savings shake-up

07:15 , Karl Matchett

Rachel Reeves’s plan to encourage savers to move their cash into investments has sparked a lively reader response, especially among older people who say they have neither the time nor appetite for risk.

Many commenters questioned the wisdom of urging people into the stock market, arguing that fixed-rate savings accounts and tax-free ISAs already offer attractive returns of 4–5 per cent, with none of the potential losses.

The results and comments show there is still lots more to be done in terms of encouraging and educating the wider population as to why investing works and who it is right for.

‘Why take the risk?’ Readers push back on Reeves’s savings shake-up

SMEs fear for high street future with more than a third planning to sell up

07:26 , Karl Matchett

Data has shown that business owners believe the high street in the UK is destined to become obsolete and more than a third (37 per cent) are planning to close their doors or sell up in 2025.

Simply Business’s SME report surveyed more than 2,000 business owners and a shocking 63 per cent, almost two in every three, say they believe the high street will be gone in a decade.

More to follow on this story.

Pensions shakeup coming with contributions to be increased

07:56 , Karl Matchett

Liz Kendall, the work and pensions secretary, is to reopen the Pensions Commission as Labour seek to ensure future pensioners to do not face the gap in retirement savings they are currently set to do so.

Estimates suggest those retiring in 2050 will be almost £1,000 a year worse off than those retiring today, with not enough being saved for the future.

We’ll bring more details across the morning - but a notable change is that the automatic pensions enrolment situation for peoples’ workplace pension looks likely to change, with an outline in place to increase total contributions from 8 per cent to 12 per cent, including employer contribution.

Millions are saving too little for retirement - DWP

08:11 , Karl Matchett

Analysis by the Department for Work and Pensions (DWP) shows that three million self-employed people are saving absolutely nothing at all towards retirement, while 15m working people are undersaving for it.

In particular, lower-paid people and some ethnic minorities are at risk of being affected in outsized fashion.

The commission will be engaged in creating a report for 2027, speaking with businesses and unions, to create a plan for the long term.

Major UK banks set for latest reports

08:22 , Karl Matchett

Big week coming up in the domestic markets, with several FTSE 100 names set to report.

The banks will as usual be an indicator of how the country is faring overall.

Richard Hunter, head of markets at interactive investor, explained what to look out for: “The UK is braced for an escalation of corporate updates this week, including half-year numbers from the more domestically focused Lloyds Banking and NatWest.

“For each, shareholder returns will be a key focus, along with any bad debt allowances and mortgage growth figures.

“Lloyds may provide an update on impairments especially relating to motor finance commission arrangements, for which it has already set aside some £1.2 billion, while NatWest may give some indication on its acquisition policy following the removal of the government stake and its purchases of the Metro mortgage book and Sainsbury’s Bank, as well as an apparently rebuffed approach for the UK arm of Santander.”

Pension Commission: Workers at increased risk of retirement poverty

08:50 , Karl Matchett

Today’s workers are at a greater risk of poverty in old age than their parents, experts warned, as the UK looks to revive a government body to tackle the crisis.

People looking to retire in 2050 are on course to receive £800 per year less than current pensioners, according to Age UK.

The Department for Work and Pensions (DWP) will resurrect the Pensions Commission, which last met in 2006, to “tackle the barriers that stop too many from saving in the first place”.

Heres the full report of the pension commission plan:

Today’s workers ‘at greater risk of poverty in old age than their parents’

London Stock Exchange to consider 24-hour trading

09:37 , Karl Matchett

Opening up the London stock markets for 24-hour trading is one of the measures being considered by owner group LSEG to revive the City’s fortunes, reports the FT.

Currently, the London stock exchange allows shares to be traded 8am to 4.30pm, but platforms like Robinhood - and the cryto world in general - have round the clock trading.

The move is in part thought to be appealing to retail traders who may be working during those regulation trading hours.

LSEG didn’t comment on the reported plan.

Workers increasingly pushed to use AI

09:58 , Karl Matchett

Executives around the globe are pushing workers to use AI more and more frequently, one report says, with some bosses saying it is not a voluntary option.

Plenty of businesses - Microsoft, BT, Amazon and others - have said AI usage will increase and replace some job roles, while others have been forthright in telling staff they must use it as part of their day to day routines.

IEA data shows AI uptake is at a much faster rate than the internet or personal computers were when they first got released.

Small rise for FTSE 100 and European stocks flat

10:17 , Karl Matchett

The FTSE 100 opened higher but has given up some of those earlier gains, now sitting on a 0.05 per cent rise in mid-morning.

It’s a similar story on the continent, with the German DAX opening up but now flat for the day and France’s CAC 40 dropping 0.2 per cent.

Overnight, Japan’s stock market took a hit with a drop of 0.21 per cent but there were rises for the Hang Seng and Shanghai Composite, both around 0.7 per cent.

EU prepares tariff response amid no-deal with US

11:22 , Karl Matchett

There is still no clear-cut deal between the US and the EU for a trade deal, with a 30 per cent blanket rate set to be applied next month on exports to the States from the bloc.

Howard Lutnick says it’s a hard deadline and the commerce secretary added he was confident a deal would be done beforehand - but the EU are readying a response all the same.

Last week they said a 30 per cent tariff would effectively wipe out all trade between the two.

The EU wants a similar deal to the UK starting at 10 per cent, with some exemptions.

Revolut to bring 400 jobs with new Paris HQ

11:39 , Karl Matchett

Fintech firm Revolut are building their new headquarters in Paris and say they’ll be opening up 400 jobs, spread across France, Spain, Ireland, Germany and Portugal.

At least half will be based out of the HQ, as the banking company looks to establish itself for a French licence.

Revolut was founded in London but has expanded globally. No confirmation is in place where the company might IPO in future though it is thought to prefer a Nasdaq listing rather than in the UK.

Are you among the 82% of self-employed people who don’t pay into a pension?

12:00 , Karl Matchett

If you're self-employed, when was the last time someone talked to you about pensions? Chances are, probably not very recently.

However, research from NEST Insights shows that more than half of self-employed people in the UK - which includes freelancers, sole traders and limited company owners - are on track to experience retirement poverty. This compares to just a quarter of full-time employees.

Why has it happened and what can you do to change that?

Are you among the 82% of self-employed people who don’t pay into a pension?

Wise co-founder condemns ‘inappropriate and unfair’ US listing proposals

12:22 , Karl Matchett

The co-founder of Wise has criticised the fintech firm’s “inappropriate and unfair” governance changes within plans to move its primary stock market listing from the UK to the US.

Taavet Hinrikus wrote a letter to shareholders through his investment vehicle Skaala Investments OU, which owns 5.1% of shares in Wise.

The letter criticised the company’s proposals to move its primary listing to a stock exchange in the US, but also to extend the voting rights of so-called Class B shareholders by another decade.

A dual-class shareholding structure means the Class B shareholders have more than 90% of the voting rights.

Such structures have faced criticism that they give minority stakeholders an oversized voting power over a company’s proposals.

More details here:

Wise co-founder condemns ‘inappropriate and unfair’ US listing proposals

Is a lifetime ISA or personal pension better for retirement income?

12:40 , Karl Matchett

If you don’t qualify for an employer pension, or you’re looking for a way to supplement yours, both a Lifetime ISA and a personal pension, such as a SIPP (a self-invested personal pension), can be effective retirement planning tools.

They have a lot in common: they’re both tax-efficient, they hold a similar range of investments - Lifetime ISAs are a little more restricted - and most compellingly, contributions to either are topped up by 25 per cent, albeit in different ways.

At first glance, it may seem that you could pay the same amount into one or the other and they would deliver an equal income in retirement. This isn’t the case.

Here’s a look at which could provide a higher income for you, and why.

Lifetime ISA vs personal pension: Which is better for higher retirement income?

US stocks predicted to lift on Monday

13:00 , Karl Matchett

Futures markets show American stocks rising when the market opens later today.

The Nasdaq is at 0.28 per cent up ahead of trading, with the S&P 500 following close behind.

That’s despite Germany and France seeming to strike a tone which is more in favour of launching counter-offensives against the US, related to tariff talks.

Water regulation should be overhauled, review recommends

13:26 , Karl Matchett

The system for regulating water companies should be overhauled and Ofwat replaced, a landmark review of the sector has advised.

The much-anticipated final report from the Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, outlined 88 recommendations to the UK and Welsh governments to turn around the ailing industry.

The Government-commissioned team was tasked to carry out the largest review of the sector since privatisation in the face of widespread public anger over pollution, bills and bosses’ bonuses, although ministers ruled out nationalising water companies.

Water minister Emma Hardy told broadcasters on Monday that the system is “broken”, but did not commit to how many of the 88 suggestions would be accepted by Whitehall.

More here.

How much you need in your pension to retire — and four things to help you reach that amount

13:44 , Karl Matchett

Pensions are back in the spotlight after the government announced new measures to tackle the growing issue of people failing to have enough money when they retire.

Liz Kendall, the work and pensions secretary, said on Monday that almost half of the working age population “isn’t saving anything for their retirement at all”. She has revived the pensions commission, which last met in 2006, in a bid to determine how best to help workers after experts warned that people looking to retire in 2050 are on course to receive £800 per year less than current pensioners.

The scale of the issue cannot be underestimated.

Here’s what you need to retire - and four way to help you get there.

Four things you can do to add thousands to value of your pension

Pensions crisis: 'Millions won’t have enough to live on'

14:00 , Karl Matchett

Sticking with pensions, the scale of people not saving enough is now coming more to light.

82 per cent of self-employed people aren’t saving anything into a pension fund at present.

Half of working-age people aren’t saving enough to hit retirement goals.

Even 48 per cent of people earning £67k or more aren’t saving enough for what they will need in retirement.

Scott Gallacher, director at wealth management firm Rowley Turton, said:

“This is a massive threat. Auto-enrolment got people started, but contribution levels are too low and haven’t kept up with reality,” said Gallacher. “We’re heading for a future where millions simply won’t have enough to live on.”

Ecology launch mortgage for those making green improvements

14:19 , Karl Matchett

Ecology Building Society have announced the launch of a new mortgage product for those who want to make home improvements in an environmentally friendly way.

The ethical lender say their renovation mortgage is “for owners and buyers who want to cut their home’s carbon footprint, available up to 80% LTV (loan to value).”

It caries a variable rate of 5.29 per cent, with the potential to reduce this by 1.5 per cent by making the home more energy efficient.

There is no mortgage fee and cashback may be available for installing heat pumps.

EU to charge UK to join defence fund

14:41 , Karl Matchett

The UK is joining forces with the EU in a new defence project - but the EU will charge the UK to do so.

The Financial Times reports that will come in the shape of a fee payable on any weapons the EU fund buys from British companies.

It means the UK would have to pay a percentage into the fund to balance out benefits received economically as well as in security terms. The same would apply to Canada or other non-EU nations joining.

BP name chair successor to Helge Lund

15:00 , Karl Matchett

BP has appointed Albert Manifold as its new chair, meaning Helge Lund will depart after six years.

Mr Lund’s exit had already been confirmed, with Mr Manifold chosen as his successor following a decade as CEO of concrete firm CRH.

BP shares are up 0.3 per cent today, but down 12 per cent over the past year.

15:21 , Karl Matchett

The UK Sustainable Investment and Finance Association says the government’s decision to revive the Pensions Commission shows how serious the situation is - and says the right outcome would be a win for all involved, from businesses to individuals and the wider economy.

James Alexander, CEO of UKSIF, said: “The decision to revive the Pensions Commission suggests the government is taking systemic shortfalls in retirement savings seriously. This body must now drive long-term reforms that tackle the huge standards of living crisis facing workers.

“We recognise these developments must be delivered gradually, addressing both employer and individual affordability considerations. But put simply, without significant changes, millions of pensioners will risk unnecessary hardship in their later years.

“The right reforms have the potential to generate large pools of pension capital, which could increase investment into private markets and the wider economy. This can lead to a win-win situation, as the money can also help fund our high-growth areas, such as the clean energy sector.”

US stocks rise - Block jumps after joining S&P 500

15:40 , Karl Matchett

The FTSE 100 has dropped this afternoon and is now slightly in the red, -0.08 per cent for the day.

But over in the US, shares are rising this afternoon, with the S&P 500 up 0.6 per cent and the Nasdaq rising 0.82 per cent.

Block, the payments company led by Twitter founder Jack Dorsey, is up almost 8 per cent after it was selected to join the S&P 500.

That’s partly as index trackers are now to buy the shares, boosting demand further.

More than 400,000 customer details leaked in Louis Vuitton data breach

16:02 , PA±

Hong Kong's privacy watchdog is investigating a data leak affecting about 419,000 customers at Louis Vuitton.

Leaked information included names, passport details, addresses and email addresses as well as phone numbers, shopping history and product preferences, Hong Kong's Office of the Privacy Commissioner for Personal Data said.

No payment information was affected, Louis Vuitton - the main brand of luxury giant LVMH - said in a statement.