AI sell-off deepens as chip stocks slump in market retreat - business live

Rolling coverage of the latest economic and financial news

Matt Britzman, senior equity analyst at the broker Hargreaves Lansdown, says Barclays’ investment bank did much of the heavy lifting this quarter.

Costs were higher than expected, but income grew faster, and the combination of a larger dividend and £1bn share buyback adds further weight to an encouraging set of numbers.

The outlook has also improved, with Barclays raising its full-year income target and expecting more benefit from its core banking activities. UK lending continues to grow, and the investment bank is producing much healthier returns, although it still has more to prove against the scale of its US rivals. For now, the strategy is moving in the right direction, with stronger profits supporting investment in the business as well as increased cash returns to investors.

Big banks like Barclays are raking it in while working people and local businesses are struggling. High interest rates have been a boon for banks but have meant mortgage misery and higher bills for the rest of us.

Andy Burnham has rightly pledged to prioritise tackling the cost-of-living crisis. With the war in Iran rumbling on, energy prices are only going to rise – and households will need more support in the months ahead.