FTSE 100: Markets react to Rachel Reeves' controversial Mansion House speech

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Barclays has been fined £42 million for its "poor handling" of money laundering risks.

The Financial Conduct Authority (FCA) said the fines related to separate failings linked to the WealthTek and Stunt & Co businesses.

Moneyfacts said the latest inflation reading is 3.6%. This exceeds the average return that savers can earn.

Moneyfacts said: "While many top paying rates have improved in the past month, it may be a short-term reprieve - there has also been a harsh cut of almost 1% when looking back at one-year fixed rate bonds this time last year."

AstraZeneca is among the fallers this morning. It is down 1.2% in early trading.

It comes after a trial of its treatment for AL amyloidosis, a rare and life-threatening condition, failed to meet its primary target in the overall patient group.

There have been several up and down moves in the early FTSE 100 trading on Wednesday.

Miners Rio Tinto and Antofagasta are up over 1% while insurers Hiscox and Beazley were also higher.

However, Ashtead and Rentokil led the fallers, down 1.4% and 1.1%.

The UK's annual rate of inflation is at its highest since January 2024. It increased by 3.6% in June.

The FTSE 100 has opened up 3.2% on Wednesday.

The FTSE 100 finished Tuesday by dropping up to -0.6 per cent ahead of Rachel Reeves' speech from 8pm.

The FTSE 100 markets are set to react to the chancellor's speech. The markets open at 8am this morning.

We will keep you updated.

Reeves said: "I recognise the potential for ISA reform to improve returns for savers and access capital for UK businesses.

I have confirmed that Long-Term Asset Funds can be included in stocks and shares ISAs, allowing long-term ISA investors to benefit from this innovative product."

She added: "And I will continue to consider further changes to ISAs, engaging widely in the coming months and recognising that despite the differing views on the right approach we are united in wanting better outcomes for both UK savers and for the UK economy."

Reeves said: "For too long, we have presented investment in too negative a light, quick to warn people of the risks, without giving proper weight to the benefits.

And our tangled system of financial advice and guidanc has meant people cannot get the right support to make decisions for themselves."

Speaking to key industry figures at Mansion House, the chancellor said: "The FTSE is at an all-time high, today, for the first time ever, breaking 9000 points;

"London is home to the deepest equity capital market in Europe. It is the third biggest venture capital market globally.

"And the London Stock Exchange is the most international in the world with the FTSE soon to include shares listed not just in sterling but also in dollars and in euros."

She added: "But we must do more to ensure that British savers benefit from the success of growing British businesses."

Reeves called on regulators to put more focus on the benefits of investing in the stock market. 

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