British Shares Hold Gains; Healey Reportedly Weighs Bank Tax Changes

11:46 AM EDT, 10/16/2026 (MT Newswires) -- London's FTSE 100 closed 0.36% higher on Friday as investors assessed developments in UK fiscal policy and corporate updates amid the ongoing European earnings season. Chancellor John Healey is poised to raise taxes on Britain's banks in the Oct. 28 budget to help offset the impact of the war in the Middle East on public finances, the Guardian reported. The move is intended to generate additional revenue and keep the government's deficit-reduction plans on track amid rising borrowing costs, the report said. Separately, the UK and Germany agreed to strengthen defense-industrial cooperation at a meeting of the UK-Germany Ministerial Group on Equipment and Capability Cooperation in London. Discussions included collaboration on developing long-range strike capabilities. In corporate news, HSBC Holdings (HSBA.L) ended the session 0.51% higher. The British lender plans to double the number of its artificial intelligence specialists in Hong Kong to more than 300 over the next two to three years, the South China Morning Post reported, citing David Liao Yi-chien, the bank's co-chief executive for Asia and the Middle East. Wise Group (WISE.L) shares fell 7.71% as the money-transfer company reported a 21% year-over-year increase in net revenue to $739.1 million for the fiscal second quarter ended Sept. 30. "Wise released its Q227 results on 16 October, delivering volumes that were 2% behind consensus, although net revenues that were 2% ahead. As a result, the company tightened its FY27 net revenue growth guidance upwards from a range of 15% to 20% yoy to a range of 17.5% to 20% yoy, also reiterating that it expects its FY27 profit before tax margin to be at the top end of its 20-25% guided range," Berenberg said. Swiss lender UBS Group reportedly discussed the possibility of moving its listing and legal headquarters to the UK with former Chancellor Rachel Reeves, who pitched London as a potential base if the Swiss bank decides to relocate amid stricter Swiss capital requirements, the Financial Times reported, citing people briefed on the talks. The two most recently met earlier in 2026.