Business news in brief
Mortgage price war puts pressure on Santander profits
High street banking giant Santander will reveal how it has fared amid the mortgage price war raging in the UK when it kicks off half-year bank results on Tuesday. The Spanish-owned lender has already revealed a hit from the intense competition in the market, which is putting the squeeze on British banks, with a 35 per cent plunge in its first quarter profits. First out of the stalls from the UK banking sector, Santander is expected to reveal the woes have continued throughout the first half of 2019, with mortgage rates under pressure across the board. The trend has been great for borrowers, but has taken its toll on retail banking groups, who have already seen profit margins hammered by more than a decade of low interest rates. PA
Watchdog: Packaging merger could hit prices
Officials at the competition watchdog have warned that the merger of two of the UK’s biggest food and drink packaging companies could lead to a rise in prices for customers. The Competition and Markets Authority has demanded assurances that Liqui-Box’s takeover of DS Smith’s rigid and flexible packaging division will not reduce competition. The deal “could create insufficient competition in the supply of these products, leading to their customers potentially having less choice and paying higher prices, especially as there are very few large suppliers in the UK... the reduction in competition could lead to lower quality products and/or a poorer service,” the CMA said.