Sky News City Editor Mark Kleinman has cast his eye forward to 2026, delivering ten bold predictions for London's financial district and the wider corporate world. After a mixed year for his 2025 forecasts, Kleinman anticipates a period of significant transformation, driven by mergers, activist investors, and political pressure.
Markets, Mergers and Boardroom Battles
Kleinman predicts that 2026 will see a major resurgence in global banking mergers and acquisitions, extending beyond the US as post-crisis regulations ease. He expects British banks to be at the heart of this activity, forecasting that Standard Chartered could be taken over and that Barclays' chief executive, C.S. Venkatakrishnan, will play a key role.
For the FTSE 100, which broke the 10,000-point barrier at the start of the year, he believes it will not end 2026 in five figures. He also forecasts UK interest rates to settle at 3.25% by year's end, with oil priced at $70 a barrel.
Boardrooms will see a familiar merry-go-round, with new chairs expected at Experian, Informa, and J Sainsbury. Successors will also be named for the chief executives of RELX, AstraZeneca, and BHP. Activist investors will force more exits, including at SSP and WH Smith. The most surprising departure, however, will be at Tesco, where CEO Ken Murphy is predicted to announce his exit despite strong shareholder support.
Political Pressure and Industry Upheaval
The political landscape will remain fraught for Sir Keir Starmer's government. Kleinman expects the Prime Minister to survive in 10 Downing Street until the end of 2026, but only just, amid mounting challenges. Immigration issues will boost support for Reform UK, a trend he says will be amplified if a major tabloid newspaper declares its backing for Nigel Farage's party ahead of the next election.
Shareholder activism will target blue-chip giants. At BP, Elliott Advisers is forecast to secure a board seat, prompting new CEO Meg O'Neill to launch severe cost-cutting. At WPP, Cindy Rose's restructuring is tipped to be insufficient to prevent an activist from pushing for a radical break-up of the advertising group.
The media industry faces profound change. Kleinman predicts the Daily Telegraph will be bought by Lord Rothermere's DMGT, the BBC will appoint an outsider as Director-General, and Sky will succeed in purchasing ITV's broadcasting arm. London's Evening Standard, he says, will finally abandon its print edition altogether.
Regulation, Steel and Sporting Hopes
On regulation, the shake-up of UK watchdogs will continue. Kleinman anticipates former Amazon UK boss Doug Gurr becoming permanent chair of the Competition and Markets Authority (CMA), while the Treasury will hire an outsider to lead the Prudential Regulation Authority (PRA).
In a major move for industry, the government is predicted to formally nationalise British Steel, currently owned by China's Jingye Group, risking a legal and diplomatic row but paving the way for reuniting it with other former Specialty Steels UK sites.
Finally, Kleinman ends on a sporting prediction: England will win a major men's international football tournament on July 19, beating Spain in New York to end a 60-year wait. Closer to home, the Premier League's financial case against Manchester City will remain unresolved until season's end, with appeals potentially dragging on for years.
