Market Report: Barclays warned that the Budget could kill annuities market

The £12bn annuities market could be at risk of extinction, Barclays warned yesterday.

George Osborne's decision to scrap compulsory annuities in Wednesday's Budget has knocked over £4bn off the value of Britain's life insurers, and analysts at Barclays warned that the move "has the potential to lead to the demise of the UK individual annuity market".

Investors yesterday continued to punish those in the sector, as well as bookies, who were also hit by the Budget. William Hill, down 4.9p to 346.6p, admitted that it had underestimated the cost of the Chancellor's crackdown on fixed-odds betting machines, upping its projection from £16m to £22m.

GlaxoSmithKline, down 26p to 1,629p, weighed on the Footsie after poor results from trials of a lung cancer treatment.

The FTSE 100 closed down 30.69 points at 6,542.44, with traders spooked by hints from Janet Yellen, the new chairman of the US Federal Reserve, that she may increase interest rates sooner than expected. One of the few risers on the index was the energy group SSE, up 48p to 1,486p, boosted by an upgrade from Morgan Stanley.

There was a strong crop of results among mid-cap listed companies. The upmarket estate agent Savills, up 22.5p to 638.5p, revealed a 34 per cent jump in pre-tax profits to £75.2m, with £6bn worth of UK homes sold last year.

Ted Baker, up 33p to 2,238p, said it had become global as the fashion brand hailed a 26.7 per cent increase in pre-tax profit to £40m. The Tory advertising agency M&C Saatchi announced record revenues and operating profit, but fell 2p to 297.5p.

The shopping centre owner Intu tapped shareholders for £500m to fund a £867m deal with Westfield yesterday. The Lakeside owner has bought two sites from Westfield, with a 50 per cent stake in a third. Investors didn't like the price of the issue and Intu fell 14.9p to 308.3p.

The Aim-listed online service procurement platform blur group announced its biggest contract, a legal project worth $15m (£9m). It added 17.5p to 495p.

Start your day with The Independent, sign up for daily news emails
Voices
voices
News
general electionThis quiz matches undecided voters with the best party for them
Arts and Entertainment
Keira Knightley and Matthew Macfadyen starred in the big screen adaptation of Austen's novel in 2005
tvStar says studios are forcing actors to get buff for period roles
News
Prince William and his wife Catherine, Duchess of Cambridge show their newly-born daughter, their second child, to the media outside the Lindo Wing at St Mary's Hospital in central London, on 2 May 2015.
news
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before