Rachel Reeves conducts a discussion with Scott Bessent and financial executives, focusing on investment matters
In the lead-up to President Donald Trump's arrival in the UK, Chancellor Rachel Reeves gathered a group of senior financial officials for a crucial meeting at Downing Street. Among the attendees were representatives from major financial institutions such as Barclays, HSBC, Revolut, JP Morgan, Goldman Sachs, Schroders, Morgan Stanley, Bank of America, and CD&R. Crypto firms, including Coinbase, were also present.
The discussions focused primarily on potential details for a future trade deal. The Chancellor's industrial strategy was a key topic, with a focus on boosting retail investment and lending, and cutting some regulations. The specific financial institutions involved in the meeting were not explicitly named, but it is known that senior officials including Chancellor Reeves and US Treasury Secretary Scott Bessent spoke with representatives of major financial actors.
Significant investment commitments were made during the meeting, totaling over £1.25bn. Citi Group announced an investment of £1.1bn across its US bank operations, while S&P announced an investment of £4m into their Manchester offices.
Recently, BlackRock, another participant in the roundtable discussion, opened a new office in Edinburgh. The meeting also saw the presence of officials from the London Stock Exchange Group.
Rumours of potential bank taxes, which may claw back losses through the Bank of England's quantitative tightening (QT) process, circulated during the meeting. These rumours, coupled with growing criticism of Chancellor Reeves' fiscal policies from the financial sector, may have led to some awkward exchanges. City chiefs have expressed concerns about the idea of bank taxes being increased, with Barclays' CEO claiming US banks are taxed higher than in other jurisdictions.
Despite these challenges, Chancellor Reeves hailed the UK economy's potential due to the investment commitments made during the meeting. She has made the growth of fintech and crypto firms a priority in her industrial strategy, as outlined in her Mansion House speech.
Meanwhile, President Trump is set to arrive on Tuesday evening and will have meetings on Thursday at the Prime Minister's estate in Chequers. No development is expected this week regarding steel tariffs and preferential treatment for the UK regarding tariffs on pharmaceutical companies.
In a separate development, Coinbase, a crypto firm, produced an advertisement satirizing the UK's decline. The ad has sparked controversy and debate in the financial and political circles.
As the UK prepares for President Trump's visit, the financial sector remains a key focus for the Chancellor, who is working to boost investment, foster innovation, and secure a promising future for the UK economy.
Read also:
- Week 39/24 Highlights: Tesla CEO's visit, Robo-taxi buzz, Full Self-Driving study, Affordable electric cars, and European pricing less than €30,000
- Solar energy company, Imperium, alongside QORAY Mobility & Energies Solar Business, bolsters Nigeria's environmental future by producing superior solar panels domestically and offering flexible payment options.
- AI Inspection Company, Zeitview, Secures $60 Million Funding for Expansion
- Future of Payments: If the U.S. regulates stablecoins through the GENIUS Act, according to Matt Hougan
