Peter Grom
UBS Investment Bank, Research Division

All right. Good morning, everyone. Welcome to the UBS Global Consumer and Retail Conference here in New York City. My name is Peter Grom, I’m the U.S. Consumer Staples Analyst here at UBS, and we are very excited to have joining us Rahul Goyal, President and Chief Executive Officer; and Tracey Joubert, Chief Financial Officer from Molson Beverage or Molson Coors Beverage Company this morning. So clearly, beverage alcohol has been under pressure from the top and bottom line perspective over the last several years. And several weeks ago, both Rahul and Tracey outlined the Horizon 2030 strategy as the company looks to navigate this challenging backdrop and return to more consistent growth.

In terms of format for today, I have a series of questions that I plan to run through with Rahul and Tracey during the 45 minutes we have here. But before we start, I’m required to read a legal disclaimer. As a research analyst, I’m required to provide certain disclosures relating to the nature of my own relationship and that of UBS with any company on which I express a view on this call today. These disclosures are available at www.ubs.com disclosures. Alternatively, please reach out to me. I can provide them to you after this webcast.

So with that, why don’t we get started? Rahul, Tracey, thank you so much for joining us.

Rahul Goyal
President, CEO and Director

Thanks for having us, Peter.

Digital banking giant Revolut has officially launched its UK bank after receiving regulatory approval from the Prudential Regulation Authority (PRA), marking a major milestone in the fintech company’s long-running push to establish itself as a fully licensed bank in its home market.

The new entity, Revolut Bank UK Ltd, will gradually begin rolling out current accounts to customers, starting with a limited group before expanding to the company’s 13 million UK users over the coming weeks.

The approval allows Revolut to move out of the “mobilisation” phase of its banking licence, the period during which a company prepares operational systems and governance before offering full banking services.

For the first time, Revolut customers in the UK will be able to hold deposits protected by the Financial Services Compensation Scheme (FSCS), which safeguards eligible deposits of up to £85,000 per person.

The launch of the UK bank enables Revolut to begin offering deposit accounts with FSCS protection, bringing it into closer competition with established high-street lenders and digital challenger banks.

While Revolut has operated in the UK since 2015 and built one of the country’s largest fintech customer bases, it previously operated using an e-money licence, meaning deposits were safeguarded but not covered by the FSCS guarantee.

The transition to a licensed bank also opens the door to a broader range of services, including lending products, credit offerings and expanded financial services for both retail and business customers.

However, Revolut has emphasised that the rollout will be gradual to ensure a smooth transition.

Initially, new customers will be offered the bank’s current accounts, while existing users will continue using the app and payment services as normal until their accounts are migrated.

The company expects the migration of existing customers to take several months, with notifications being sent through the Revolut app during the transition period.

Revolut’s co-founder and chief executive Nik Storonsky described the launch as a pivotal moment for the company’s global ambitions.

“Launching our UK bank has been a long-term strategic priority for Revolut and marks a significant moment in our journey,” he said.

“The UK is our home market and central to our growth. We look forward to introducing a full suite of banking services to our millions of UK customers, bringing the same innovative experience we already provide across the rest of Europe.”

Storonsky added that the development represents a major step toward the company’s long-term goal of creating “the world’s first truly global bank.”

The banking licence approval comes shortly after Revolut announced plans to invest £3 billion ($4 billion) in the UK economy and create around 1,000 high-skilled jobs as part of its expansion strategy.

The company has also unveiled an ambitious global investment programme worth £10 billion ($13 billion) over five years, which will support international growth and the launch of banking services in additional markets.

As part of that strategy, Revolut plans to enter 30 new markets by 2030, with licensing progress already underway in parts of the Americas and other regions.

The fintech group has become one of Europe’s fastest-growing financial technology firms, offering services including international payments, investment tools, cryptocurrency trading and budgeting features through its mobile app.

Francesca Carlesi, chief executive of Revolut UK, said the regulatory approval represents a defining stage in the company’s development.

“Becoming a bank in our home market marks a defining moment in our journey — a milestone achieved through relentless focus, discipline and belief in what we’re building,” she said.

“Securing this licence lays the foundation for our next chapter: expanding into a broader suite of products, including credit, to sit alongside the innovative services our customers already rely on every day.”

Carlesi added that the launch will help Revolut continue its mission of delivering “the most seamless, secure and customer-centric banking experience for consumers across the UK.”

Revolut’s transition into a fully licensed UK bank is likely to intensify competition across Britain’s financial services sector, particularly among digital challenger banks such as Monzo and Starling.

With millions of existing customers already using its app for payments and financial services, Revolut enters the banking market with a substantial user base that could rapidly adopt its new FSCS-protected accounts and future lending products.

The company’s move also reflects a broader shift within the fintech industry, as many technology-driven financial firms seek full banking licences in order to expand their services and strengthen customer trust.

For Revolut, securing approval in its largest market represents both a regulatory breakthrough and a crucial step in its ambition to become a global digital banking powerhouse.

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Scheme includes refit of landmark Kendal Milne store in Deansgate

Gary Neville’s development company has announced a new city-centre neighbourhood with the historic Kendals building at its heart.

Relentless Developments, owned by the Man United legend, has dubbed the proposed neighbourhood off Deansgate ‘Kendals District’, which will be spearheaded by the redevelopment of the department store.

Top quality workspace; hospitality and leisure facilities; a luxury hotel; and branded residences are all earmarked to be set within new public realm and cultural space.

At the heart of this redevelopment will be the ambitious retrofit of the iconic Kendal Milne building on Deansgate.

This will be driven by a partnership between Relentless, Investec and supported by the Greater Manchester Combined Authority (GMCA). It will create 230k sq ft of modern, prime office space, along with an extensive F&B and retail provision.

The art deco department store, last home to House of Fraser, enticed shoppers for generations after opening in 1939. The massive building has been largely empty since its closure in 2019, but there was planning approval to convert the nine-storey Deansgate block into offices, cafes, and shops in 2021.

After years of relative quiet on the project, at the end of last year Greater Manchester mayor Andy Burnham confirmed £44m of his new £1bn ‘Good Growth Fund’ would be spent to help get the conversion off-the-ground.

Anthony Kilbride, CEO of Relentless Developments, said: “Kendals is a complex heritage retrofit that has demanded real conviction, not just in the building itself, but in the wider vision for this part of the city. As one of Manchester’s most recognisable landmarks, this high-impact site is perfectly positioned to anchor district-scale regeneration and act as a true gateway to a new neighbourhood.

“What we are bringing forward with the Kendals District is not piecemeal development; it is a coherent, carefully planned quarter that brings together workspace, hospitality, culture and public realm in a way that creates long-term value for the city. It demonstrates how effective public-private collaboration can unlock growth, accelerate delivery and create places of genuine economic and social impact.

“The retrofit of the former Kendal Milne building will set the tone for what follows: thoughtfully designed, highly sustainable space that prioritises wellbeing and flexibility, meeting the evolving needs of modern occupiers while respecting the heritage of the site.

“Relentless is proud to be leading five of the six transformational sites within the district and looking forward to playing a central role in shaping what will become one of Manchester’s most dynamic and recognisable new quarters.”

Relentless’ role in the Kendals District follows the success of its St Michael’s development on Jackson’s Row where the developer is partnering with Marriott International to play host to a 162-room W Hotel and 217 W Residences within a 43-storey tower.

Coun Bev Craig, leader of Manchester City Council, added: “Good Growth is about creating investment opportunities that create a lasting impact to the fabric of our city. While this is often about supporting new development to create growth, it is as much about using the incredible assets we already have in Manchester.

“Kendals is a prime example of this approach – breathing new life into an iconic heritage building to not only ensure its long-term future, but to create a platform for a new city centre district to deliver growth at scale and with ambition.”

To find all the planning applications, traffic diversions, road layout changes, alcohol licence applications and more in your community, visit the Public Notices Portal.

As the U.S. enters its fifth year of inflation running above the Federal Reserve’s 2% target, major retailers are responding to softer demand and increased competitive pressure.

With consumer sentiment in 2026 divided and the cost of living remaining a top concern among Americans, Target announced Wednesday that it will reduce prices on more than 3,000 items.

“Busy families are thinking about value as they begin to update their homes and wardrobes for spring,” , Cara Sylvester, Target’s executive vice president and chief merchandising officer, said in a press release.

“We’re delivering by lowering prices on 3,000 spring favorites across apparel, essentials and home,” she continued. “We’re committed to making it easier than ever for guests to have the fresh style and incredible value they love, with lower prices on the items we know they want.”

BELOVED BUC-EE’S CONVENIENCE STORE CHAIN FACES CUSTOMER SERVICE CRISIS AFTER DEVASTATING ‘F’ RATING

The discounted categories include women’s and children’s apparel, footwear such as flats, sandals and sneakers, bedding and blankets, baby products, household essentials and pantry staples.

Most reductions range from 5% to 20% off original prices and will begin rolling out in stores this month through the spring.

However, the price reduction program excludes stores in Alaska and Hawaii.

Inflation remained above the Federal Reserve’s 2% target in February as policymakers continue to weigh affordability concerns. The Bureau of Labor Statistics said Wednesday that the consumer price index (CPI) — a broad measure of the cost of goods and services, including gasoline, groceries and rent — rose 0.3% in February and increased 2.4% from a year earlier. The annual rate was unchanged from January, while the monthly gain was slightly higher than January’s 0.2% increase.

The price cuts appear to be part of a broader strategy aimed at restoring sales growth. Target CEO Michael Fiddelke outlined the company’s plan to return to growth during a financial community meeting last week, citing investments in key categories such as women’s apparel, home and baby.

“This new chapter of growth at Target is defined by clear choices and rooted in a deeper understanding of our unique lane in retail, the guests we serve and the areas where we’re distinctly positioned to win,” Fiddelke said.

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“This work is underway, and by putting style, design and value at the center of every decision,” he continued, “we’re making big changes to lead with a trend-forward assortment, elevate the guest experience, accelerate with technology and equip our teams to deliver the most delightful experience in retail, for today and over the long term.”

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FOX Business’ Eric Revell contributed to this report.

Global oil prices have climbed back above $90 a barrel after a cargo vessel was struck by a projectile in the Strait of Hormuz, intensifying fears that the escalating conflict involving Iran could trigger a prolonged disruption to one of the world’s most critical energy shipping routes.

Brent crude, the international benchmark, rose sharply to around $92.34 a barrel, recovering from earlier losses and extending the dramatic volatility seen across energy markets over the past 48 hours. The latest surge followed reports from the United Kingdom Maritime Trade Operations (UKMTO) that a commercial cargo ship had been hit by an unidentified projectile in the Strait of Hormuz, causing a fire onboard.

The incident is the latest in a series of attacks targeting vessels in the Gulf region, underscoring the growing risks to global oil and gas supply chains as the Middle East conflict intensifies.

Shipping through the Strait of Hormuz, a narrow waterway between Iran and the United Arab Emirates that typically carries around one-fifth of the world’s oil exports, has almost completely halted as commercial operators weigh the risks of operating in the area.

Peter Aylott, director of policy at the UK Chamber of Shipping, said attacks on vessels have been indiscriminate and spread across the region, including incidents near Kuwait and in the western Persian Gulf.

He warned that the danger of further strikes has effectively paralysed maritime traffic.

“Shipping passing through the strait has dropped from around 100 vessels per day to fewer than five, and most of those appear to be Iranian ships,” Aylott said.

The situation has left around 1,000 commercial vessels stranded in the Gulf, including an estimated 80 to 90 ships with UK interests, as shipping companies refuse to risk moving cargo through the increasingly dangerous corridor.

Two additional vessels, a bulk carrier and a container ship, were also reportedly struck within the past 24 hours, raising concerns that the disruption could deepen if hostilities continue.

Energy markets have experienced extraordinary swings as traders attempt to gauge how long the conflict will last and whether the Strait of Hormuz will reopen to normal shipping.

Brent crude surged to over $118 per barrel earlier in the week, its highest level since 2022, before dropping close to $80 a barrel amid reports that governments were considering releasing emergency oil reserves.

The benchmark then rebounded strongly after the latest shipping attack, reflecting continued uncertainty about supply.

At one point during Asian trading, Brent had slipped to $88 per barrel, after the Wall Street Journal reported that the International Energy Agency (IEA) was considering the largest coordinated release of oil reserves in its history.

Such a move would surpass the 182 million barrels released in 2022 following Russia’s invasion of Ukraine.

However, the attack in the Strait of Hormuz quickly shifted market sentiment back toward supply fears, sending prices climbing again.

Overall, Brent crude has now risen more than 40 per cent since the start of the year, driven by escalating geopolitical tensions and concerns over disruptions to global energy flows.

Further uncertainty has emerged over whether military escorts might be used to secure shipping routes through the Strait of Hormuz.

US energy secretary Chris Wright briefly posted on social media that the US Navy had escorted an oil tanker through the strait to ensure energy supplies continued flowing.

The post was quickly deleted, and American officials clarified that the US military is not currently escorting commercial vessels through the waterway.

The confusion has added to investor uncertainty about the security of global energy shipments and the potential for further escalation.

Without clear military protection or a diplomatic breakthrough, shipping companies are expected to remain cautious about returning to the route.

The renewed surge in oil prices has triggered declines in European stock markets as investors worry about the economic impact of higher energy costs.

In London, the FTSE 100 fell 1 per cent to 10,301, reversing gains from the previous day. Shares also dropped across major European markets including Germany and France, while Asian equities posted modest gains overnight.

Higher oil prices are widely expected to push up inflation worldwide, potentially forcing central banks to keep interest rates higher for longer.

European leaders have warned that the conflict is already driving up energy import costs across the continent.

Ursula von der Leyen, president of the European Commission, said the disruption has already cost the European Union around €3 billion in additional energy imports.

“Gas prices have risen by 50 per cent and oil prices have risen by 27 per cent,” she told EU lawmakers in Strasbourg.

“That is the price of our dependency.”

Despite the spike in prices, von der Leyen rejected calls for the EU to return to purchasing Russian energy — imports that were largely halted after Russia’s full-scale invasion of Ukraine in 2022.

Energy traders say the key question now facing markets is how long the Strait of Hormuz will remain effectively closed.

If tanker traffic remains severely restricted, analysts warn that oil prices could climb even higher in the coming weeks, potentially surpassing previous crisis levels.

The Strait of Hormuz crisis has already drawn comparisons with previous global energy shocks, and economists warn that prolonged disruption could slow global economic growth while reigniting inflationary pressures.

For now, markets remain caught between expectations of emergency supply releases and the very real risk that the world’s most important oil shipping route could remain unusable for an extended period.

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India’s market regulator Sebi has introduced a simplified certification requirement for certain employees associated with research services, in a move aimed at improving ease of doing business in the securities market. The regulator said on Wednesday that staff involved in sales and other non-core activities related to research services will now be allowed to obtain a lighter certification module conducted by the National Institute of Securities Markets (NISM).

Under existing regulations, Persons Associated with Research Services (PARS) are required to obtain certification from NISM in accordance with the Sebi (Research Analysts) Regulations, 2014. Previously, this involved clearing the NISM Series-XV: Research Analyst Certification Examination, which is primarily designed for professionals directly involved in research activities.

Sebi said it has now developed a new certification module specifically tailored for employees who interact with clients but are not directly engaged in preparing or producing research reports.

Going forward, PARS engaged in sales and other non-core services will be required to obtain certification through the “NISM Series-XXV-A: Persons Associated with Research Services (Sales and Other Non-Core Services) Certification Examination.”

The regulator clarified that employees who have already obtained the NISM Series-XV certification will not be required to take the new examination immediately. Instead, they will be required to obtain the Series-XXV-A certification only after the validity of their existing Series-XV certificate expires.

At the same time, Sebi said that individuals who are directly involved in research functions will continue to be governed by the existing framework. These professionals will still be required to pass the NISM Series-XV Research Analyst Certification Examination, which remains mandatory for core research activities such as preparing investment recommendations or research reports.
The new certification structure effectively creates two different qualification tracks: one for professionals directly engaged in research and another for employees handling client-facing roles linked to research distribution or support functions.Sebi said the reform is intended to reduce unnecessary compliance burden for employees who are not directly involved in research functions while still maintaining regulatory oversight over activities connected to research services.

“The reform aligns with the objective of ensuring ease of doing business and fostering greater participation in research-related activities while upholding the interest of investors,” the regulator said in its statement.

The move is expected to benefit brokerage firms, investment advisory businesses and research houses where sales teams, relationship managers and other client-facing staff often distribute or discuss research reports without being part of the research process itself.