FTSE 100 Live: Lloyds takes profit beat, LSEG new investment

Good morning from the City PM liveblog team.

Just how much is the motor finance redress scheme going to cost Britain’s biggest banks?

Yesterday’s results from Barclays offered an insight – and it wasn’t pretty.

The Canary Wharf-based bank almost quadrupled the provision it had set aside to cover motor finance claims, from under £100m to more than £300m.

On Monday, it was the turn of Secure Trust Bank, which said it had more than tripled the money it had set aside for a redress scheme to £21m, while the Bank of Ireland doubled its own provision to £350m.

The decisions follow a similar move by Big Four bank Lloyds last week, in which it upped its provision by an extra £800m to a total of £2bn, while Close Brothers upped its own provision by around 80 per cent to £300m.

Quite how big a hit will the saga take to banks’ bottom line? Today Lloyds Bank will release its quarterly results – expect some stern words on the matter by boss Charlie Nunn.

Here’s a summary of our top headlines from yesterday:

• Inflation stays hot as UK’s economic woes deepen
• Gilt yields drop as Reeves crosses fingers to reap benefits
• Google ‘disappointed’ by CMA’s Android and Chrome ruling
• Virgin Wines blames government for inflationary cost pressures
• PayPal-backed UK fintech kicks off legal battle over unpaid fees
• Lawyers sound alarm over proposed tax target on LLPs
• Reeves’ tax grab could ‘wipe £4bn out of the stock market’