British stocks slipped on Friday as a sell-off in banking shares weighed on the market, while broader European indexes also ended in the red.
London’s FTSE 100 fell 0.2%. The pound held steady against the U.S. dollar at 1.35. Elsewhere in Europe, Germany’s DAX lost 0.5% and France’s CAC 40 dropped 0.8%.
Banking stocks were at the center of the downturn. A policy think tank suggested that commercial lenders should face a new tax, arguing that they earn billions from interest payments made by the Bank of England, money that could instead support public services. The proposal triggered a sharp reaction in the sector.
The FTSE 350 Banks index slid 1.9%. Lloyds Banking Group sank 3.4% and Barclays slipped 2.2%. Metro Bank posted the steepest decline, tumbling 7.7%. NatWest fell 5%, while HSBC dropped 1%. Standard Chartered was the only major bank to buck the trend, rising 0.8%.
In brighter news for the financial sector, shares of wealth manager JTC PLC jumped after reports that private equity firm Permira Advisors is exploring a takeover. Permira has made an approach valuing JTC at about £2 billion in cash. The company has until September 26 to confirm whether it will make a formal offer.
Elsewhere, Frasers Group announced changes at the top. Chair David Daly will step down after eight years on the board. Jon Thompson will take over as chair on September 1, with Daly officially leaving following the company’s annual general meeting on September 24.