Key Takeaways
- Thousands of motorists who purchased cars on finance before 2021 could be eligible for compensation, as the Financial Conduct Authority (FCA) plans to consult on a new compensation scheme, with potential payouts estimated to be no lower than £9 billion and possibly reaching £18 billion.
- Global markets experienced significant losses at the close of the week, driven by renewed U.S. tariffs and disappointing economic data, particularly a weaker-than-expected July jobs report.
- Regal Cinemas (CINE.L), the second-largest U.S. movie theater chain, is leveraging YouTube stars to attract customers back to cinemas, indicating a strategic shift in the entertainment industry's marketing efforts.
Thousands of motorists in the UK who financed car purchases before 2021 may be in line for significant payouts following an announcement by the Financial Conduct Authority (FCA). The regulator has stated it will consult on an industry-wide compensation scheme, estimating the total cost of the scheme, including compensation and administrative expenses, to be at least £9 billion, with a "more plausible" total potentially reaching £13.5 billion to £18 billion. This initiative stems from a review that revealed many motor finance firms failed to comply with disclosure rules regarding commissions paid to car dealers. While individual payouts are generally expected to be less than £950, the FCA aims for a fair and easy-to-participate scheme, advising consumers against using claims management companies. The consultation is expected to launch by early October, with the first payments anticipated in 2026.
Meanwhile, global financial markets concluded the week with substantial declines. U.S. stock indexes posted their worst week since early April due to new U.S. import tariffs and a barrage of weak economic data. The July jobs report, showing only 73,000 jobs added against an estimated 115,000, further fueled market expectations for a September rate cut by the Federal Reserve. China's mainland stock markets also retreated as new U.S. tariff rates clouded the global growth outlook and economic data suggested a slowdown in the Chinese economy.
In the entertainment sector, Regal Cinemas, owned by British company Cineworld Group (CINE.L), is turning to YouTube stars to entice audiences back to movie theaters. As the second-largest movie theater chain in the U.S., Regal's move highlights the evolving strategies within the industry to combat declining attendance and adapt to changing consumer habits. This comes as the cinema industry continues to recover from pandemic-related closures and seeks innovative ways to boost box office revenues.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.