Bank shares drop as John Healey prepares to raise taxes on the banking sector in the budget – business live

Rolling coverage of the latest economic and financial news

• John Healey poised to raise taxes on banks in budget

Elsewhere in the markets today, South Korea’s Kospi share index has recorded its biggest weekly loss since October 2008, down 14.5% this week.

Although the Kospi did rise today (+2%), it was still a bad week for technology stocks – as investors worried about the borrowing, spending commitments and future profitability of AI companies.

The reality is that while companies embraced AI aggressively as it first emerged, now they are figuring out how to use it effectively while keeping AI costs under control. A slowing, more careful, path towards corporate adoption has been missed by the market which remained wildly frothy about valuations.

“A 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.”