This is London: The £240,000 garage There is ample room for an Aston Martin - as long as your other car is not much larger than a Mini. But regardless of size, this ordinary garage has just netted one couple £240,000.
FT.Com: Britain’s vacant shop space increases by 45% The amount of empty shop space in Britain has jumped by 45 per cent in the past year, according to research by one of the country's top retail property agencies. The rise in voids will add to concerns about the consumer slowdown that began about a year ago. Void rates have increased from an average of 3.1 per cent in the late 1990s to 3.8 per cent last year. They have since risen to 5.5 per cent, according to Donaldsons property consultants. Donaldsons described this as a “relentless increase”.
Reuters: August consumer confidence slumps despite rate cut Consumer confidence deteriorated sharply to its lowest level in nine months in August, dragged down by a more pessimistic assessment of Britain's economy, a report showed on Wednesday. Consultancy GfK Martin Hamblin said its confidence barometer fell to -4 from -1 in July. That was the lowest since a reading of -4 in November and confounded expectations for stablisation at -1 thanks to August's Bank of England interest rate cut.
SkyNews: CONSUMER CONFIDENCE DIPS Consumer confidence fell sharply in August, hitting its lowest level in nine months. The barometer of confidence fell to -4 from -1 in July as Britons' assessment of the country's economic situation slumped, said consultancy GfK Martin Hamblin.
TimesOnline: 60% admit to ignoring their bank statements Research suggesting that three quarters of consumers are more likely to read the back of cereal packets than information sent to them by their financial service providers has led to calls for a simplification of financial correspondence.
Economist.com: Counting the cost Had you been told in late 2001—not long after that September's terrorist attacks, and when stockmarkets had been tumbling for 18 months or so—that the price of crude oil would more than triple within four years, you might well have predicted global economic meltdown.
Economist.com: The damage that Katrina could still wreak Hurricane Katrina is already known to have killed dozens along the Gulf of Mexico coast, with the death toll expected to rise as rescuers reach more affected areas. Besides its devastating cost in lives, Katrina could push the American economy—maybe even the world economy—into recession
Sky News: OIL PRICES EYED UP Analysts are eyeing up the cost of oil after prices raced ahead to a record high $70.80 a barrel. The rise came after fears about the possible effect of Hurricane Katrina. There were initial concerns that the hurricane could do lasting damage to US Gulf Coast oil production and refining equipment, straining an industry already working nearly flat-out. However, BP later reported that its massive Thunder Horse construction appeared to have escaped unscathed, calming the market.
ThisisMoney: Car costs double in ten years THE cost of running a car has passed the £2,000-a-year mark for the first time, a survey has revealed. The average annual cost of motoring has doubled in the past ten years and is now around £2,053, excluding interest repayments on loans and depreciation of the cost of the car. With petrol and diesel prices soaring - the £4 gallon having become the norm - the biggest cost is fuel.
Telegraph: Payback time for credit card spenders Shoppers are spending far less on their credit cards, the Bank of England said yesterday, as they switch to less expensive forms of debt. The Bank said borrowing on plastic rose by £312m in July - less than half the average amount of £655m over the previous six months - while bank loans gained in popularity.
Telegraph: Forbes predicts oil will drop to $35 within a yearSteve Forbes, the billionaire business publisher, predicted that the oil bubble will burst inside a year and the price will plunge, as the impact of Hurricane Katrina sent the price of oil soaring to new record levels.
Independent: Mortgage lending hits a three-year low Hopes of a revival in consumer spending took another blow yesterday from figures showing that mortgage lending hit a three-year low last month, while retailers suffered another gloomy trading session over the key bank holiday weekend.
TimesOnline: Buy-to-let available, minimum investment of just £1 TO LOCALS in the Leeds suburb of Horsforth, No 5 Back Clarence Road is a cute-looking, stone-built one-bedroom terraced cottage perfect for a first-time buyer. To 65 web-surfing investors who have just snapped it up for £104,000 without setting foot in it, it is LS184JZ1 plc, a company with tradeable shares. Welcome to the pioneering world of internet-based buy-to-let investment, where investors can become micro-landlords for a fraction of the cost of buying an entire property
TimesOnline: Hurricane 'will force consumers to reduce fuel use' OIL prices soared to record levels yesterday as nervous traders ignored pledges of additional supplies from Saudi Arabia and instead worked feverishly to calculate the impact of Hurricane Katrina. The price of a barrel of US light crude touched $70.85 a barrel, five cents higher than Monday’s peak, while Brent in London jumped $3.55 to $68.42 when trading resumed after Bank Holiday Monday. Gas prices in the United States also rose sharply.
BBC NEWS | Business | Energy price rise for six million Six million people who buy their gas and electricity from Powergen face bigger bills from Wednesday. The company's domestic electricity charges are going up by seven percent and its gas charges are rising by 12%.
ThisisMoney: Mortgage lending continues to slide UK mortgage lending grew at its weakest rate in more than three years last month while consumer credit also rose less than expected, according to figures released by the Bank of England. The 12-month growth rate in house prices fell to 10.4% in July, down from 10.8% in June and the weakest increase since June 2002.
BBC NEWS | Business | UK borrowing slowdown continues Mortgage lending in the UK is rising at its slowest rate since January 2002, according to the Bank of England. Lending in July rose at a yearly rate of 10.4%. Last month bank and building society lending rose £6.45bn, the lowest cash increase for a little over three years.
FT.Com: UK mortgage lending rise weakest in 3 years The amount of outstanding mortgage debt rose at its slowest pace in three years last month while unsecured consumer credit also increased more slowly than expected, Bank of England data showed on Tuesday.
FT.Com: Clues from other times and places For the government and the Bank of England, the dream scenario on the housing market is a soft landing: a period of stable prices during which affordability improves as earnings catch up. As residential property values come off the boil, experts are turning to historical and international comparisons in search of clues to what the future holds.
Reuters: Retail sales fall in August - CBI Retail sales volumes fell again in August, dragging the underlying trend to its weakest in at least 22 years, an industry survey signalled on Tuesday. The Confederation of British Industry's distributive trades survey showed 27 percent of retailers reported sales volumes up on the year in August but 45 percent said they were down.
Reuters: July mortgage lending rise weakest in 3 yrs Mortgage lending saw its weakest monthly rise in more than three years in July while consumer credit also increased less than expected, official data showed on Tuesday. The Bank of England said mortgage lending rose by 6.451 billion pounds last month, compared to a forecast for 7.1 billion pounds and following a 7.064 billion rise in June. That was the weakest rise since June 2002.
Reuters: Sterling falls to 3-week low vs dollar after data Sterling fell to its lowest level in three weeks against the dollar on Tuesday after Bank of England data showed the lowest rise in mortgage lending in three years in July. Mortgage lending rose by 6.45 billion pounds last month, compared with June's 7.06 rise and forecasts for a 7.1 billion increase. Net consumer credit also rose less than expected.
SkyNews: PEOPLE CLUELESS ON DEBT A new financial education service has beern launched after research showed many people do not have a clue when it comes to mortgages and debt. A survey of 1,000 people for the Prudential found that more than half did not know how much debt or credit they had. A similar number did not know what a repayment mortgage was.
SkyNews: GLOOM HITS HIGH STREET Shops on the High Street are at their gloomiest since 1983, according to the latest survey from the CBI. A third of retailers believe the situation is going to get worse while one in five businesses believe overall business outlook will deteriorate in the next quarter. That is the first time in seven years that firms have been more despondent than hopeful about prospects.
ThisisMoney: Earn £70k a year as a brickie A SHORTAGE of skilled builders and a boom in Government spending on construction have ushered in the era of the £70,000-a-year bricklayer. A jump in public-sector building work has triggered a scramble for craft workers that has sent pay spiralling. Earnings could get another hefty upward shove when building work starts on the 2012 London Olympics complex, say industry sources.
TimesOnline: Retail slump to deepen after dismal summer AFTER a miserable summer, trading conditions on Britain’s high streets are going to deteriorate further, according to new sales figures from the CBI, the employers’ organisation, which show the worst trend for 22 years. Hopes that consumer spending was about to pick up have been dashed by the CBI’s quarterly survey, which shows little sign of any recovery for retailers threatened by the housing slowdown and the new quotas on imports of Chinese clothing.
TimesOnline: Hurricane Katrina whips oil price to a record high OIL soared to record levels yesterday as Hurricane Katrina forced the shutdown of half of the Gulf of Mexico’s crude output and more than two thirds of its natural gas production.The price of a barrel of US light crude leapt to $70.80 in overnight trading as oil companies scrambled to move personnel from offshore rigs and platforms. Reports that the hurricane had weakened caused oil to pull back from its early gains to end at $67.20, up $1.07 on Friday’s close.
BBC NEWS | Business | Dreary summer on the High Street Retailers have suffered one of their worst summers on the High Street in years - and the situation is set to remain bleak, according to the CBI. One in five retailers expect trade to worsen in the next quarter, the group said, against 13% who expect a rise.
BBC NEWS | Business | Oil close to highs as storm rages The price of oil has stayed close to record levels as Hurricane Katrina batters the US southern coastline. A barrel of light crude was trading at $68.48 in New York, before falling back slightly to $68.45 in Singapore. On Monday, the price surged to a record of $70.80 on concerns that Katrina would damage refining and extraction operations in the Gulf of Mexico.
Herald: Danger of negative equity for buy-to-let borrowers Is a scandal looming over the sale of buy-to-let mortgages? "Some borrowers may already be in negative equity without realising it," warns John Brown, residential director of DTZ Residential for mid-Scotland.
Reuters: Oil leaps above $70 as Katrina rips through US Gulf Oil prices surged to a record above $70 a barrel on Monday as one of the biggest hurricanes in U.S. history disrupted oil and gas production in the Gulf of Mexico. The region is home to a quarter of total U.S. oil and gas production. U.S. crude oil futures jumped nearly $5 a barrel in electronic trade to touch a peak of $70.80 a barrel, the highest front-month price since the New York Mercantile Exchange (NYMEX) began trading the contracts in 1983.
Telegraph: B&Q struggling as housing slowdown puts brake on DIY B&Q, the country's biggest DIY retailer, is being hit harder than its arch rival Homebase in the worst trading year for the industry. The DIY and gardening sector is expected to see its first ever decline in consumer expenditure this year, according to research published today by Verdict.
Telegraph: US debtors rush to beat bankruptcy deadline The number of Americans filing for bankruptcy is soaring, as hard-up individuals seek to beat the deadline for the introduction of tougher laws making it more difficult to write off personal debts.
Independent: Inflation may run out of control - King The Governor of the Bank of England has warned that inflation could spiral out of control if economic shocks such as an oil price spike jolted consumers' faith in stable prices. Addressing other central bankers, Mervyn King said monetary policy in the UK and US was vulnerable precisely because of its own recent success.
Guardian: 14th month of house price falls House prices fell for the 14th month in a row and show no signs of recovery in the near future, a survey shows today. Hometrack said national house prices fell by an average of 0.1% this month compared with July and have declined by an average of 3.7% over the past year. The national average price is £161,000, down from a peak of £167,000 in June last year.
Guardian: What I learned from Alan Greenspan - Mervyn King I want to describe the three important lessons that I have learned from Alan Greenspan [as chairman of the US Federal Reserve] during my time at the Bank of England. First, to be a successful central banker requires an extraordinary degree of objectivity. The key is to recognise that economics tells you how to think, not what to think. It is not a set of settled conclusions about issues. Above all, it is vital never to confuse the world with a model. The whole point of a model is to abstract from a wide range of factors in order to think clearly about one particular issue.
TimesOnline: Rate cut fails to put spark into housing market THE quarter-point cut in interest rates made at the beginning of this month made no immediate impact on Britain’s stagnant housing market. Instead of potential buyers being enticed back to the market, more have stayed away. According to Hometrack, which follows housing market trends through a network of estate agents, the number of new buyers edged down again, by 0.5 per cent.
SkyNews: MANY HOUSES NEEDING CASH English homes need £48bn of repairs and improvements, with a third of private properties failing to meet even basic standards, research has shown. Nearly seven million homes in England, including five million private houses, fall below the standards of decent accommodation, says mortgage lender Halifax.
Independent: Woolwich dismisses fears of property market crash Woolwich, the British bank owned by Barclays, became the latest organisation to dismiss fears of a crash in the UK residential property market yesterday, forecasting that the average house price will in fact more than double over the next 20 years, to around a third of a million pounds.
Bloomberg: Greenspan Says Housing Boom to `Simmer Down,' Prices May Fall The U.S. housing boom is sure to end eventually, slowing spending and possibly leading to a drop in home prices, Federal Reserve Chairman Alan Greenspan said. The housing boom will inevitably simmer down,'' Greenspan said in the text of a speech at the close of a two-day Kansas City Fed symposium in Jackson Hole, Wyoming. ``As part of that process, house turnover will decline from currently historic levels, while home price increases will slow and prices could even decrease.''
SkyNews: SPENDERS NOT SAVERS People in their 40s and 50s would rather spend their money now than save towards their retirement, a survey has claimed. Three out of 10 people in this age group say enjoying their cash now is a bigger priority for them than investing for their future, according to Insight Investment.
In2Perspective: House prices still stagnating Hometrack's August survey of the national housing market reports a fall of -0.1%, following last month’s fall of -0.2%. The group says house prices have now been falling for 14 months and show little sign of imminent recovery.
Guardian: Households rein in their spending Spending by British households fell to the slowest rate for a decade as consumers tightened their belts in the face of higher borrowing costs, more expensive energy and a cooling housing market.
TimesOnline: Oil price hike 'will hit growth in UK' HIGH oil prices will knock Britain’s growth rate next year for the second successive year, forecasters say, pushing the economy even further away from Gordon Brown’s growth predictions.
TimesOnline:Tales of a Landlady: So, size really does matter Hello? Is anybody out there? Who’ll buy my house? Come on, guys! It’s a really good buy. Well, there’s an Aga. And it’s (quite) near the new Olympic “hub”. But estate agents in Islington all pull long faces when I turn up.
The Observer: You have a right to fight blight It is a homeowner's nightmare. Your peace of mind, privacy and tranquillity are erased overnight because of a new air, road or rail scheme or a retail park being built nearby.
The Observer: Playing the percentages The decision by the Bank of England's Monetary Policy Committee to reduce the base rate by 0.25 per cent to 4.5 per cent this month should have come as welcome news to those with home loans.
Times Online: Fed chief reveals his thoughts on house price risks Deep in the thickets of the impenetrable syntax that characterises most of his speeches, Alan Greenspan usually plants a small gem of information that gives an important clue to his latest thinking about US monetary policy.
in2perspective: USA risks property crash Alan Greenspan, the United States’ central banker, has warned Americans that they risk a crash if they continue to drive property prices higher
Telegraph: Meet the IPODS (They're Insecure, Pressurised, Over-taxed and Debt-ridden) Politicians of all parties are cooking up trouble for the future by neglecting younger voters in favour of older ones, according to the author of new research that has branded 18- to 34-year-olds the IPOD generation - insecure, pressurised, over-taxed and debt-ridden.
smh.com.au: A mortgage belting for Sydneysiders Home loan affordability remains at "scary" levels in Sydney even though property prices continue to fall across the city, and it will weigh heavily on the economy for years to come, the housing industry has warned.
Guardian: Gate Gourmet beefs up its redundancy offer Some 2,000 catering workers - including 670 sacked staff - are to be offered enhanced redundancy payments by Gate Gourmet if they agree next week to quit the troubled company, which was at the centre of the dispute that crippled Heathrow a fortnight ago.
TimesOnline: US heading for house price crash, Greenspan tells buyers WALL STREET shuddered yesterday after Alan Greenspan, the United States’ central banker, warned American homebuyers that they risk a crash if they continue to drive property prices higher. He said that the US house-price spiral had become an economic imbalance, threatening stability like the country’s trade gap or its budget deficit.
SkyNews: SHOPPERS STALL FURTHER The rise in consumer spending for the second quarter of the year was at its lowest annual rate in more than 10 years. Consumer spending rose by 0.2% after increasing by 0.1% in the first quarter, said the Office for National Statistics.
Guardian: Job cuts at toilet paper maker The maker of Velvet toilet tissue has warned that its UK workforce could bear the brunt of a restructuring set to cost 3,600 jobs. Svenska Cellulosa employs some 7,000 staff at 30 sites across the UK including in Edinburgh, London, Northampton, Darlington and Portsmouth. It said Britain, Denmark, Sweden and the Netherlands would be hardest hit.
WesternGazette: TOWN FACES FRESH BOUT OF JOB LOSSES The spectre of job losses cast a fresh shadow over Yeovil this week, following a shake-up at two of the town's largest employers. Honeywell Aerospace, which employs around 800 staff in Bunford Lane, confirmed 50 local jobs have been axed as part of a global streamlining process to cut five per cent of staff worldwide.
Times Online: Economic growth dampens rate cut hopes Economic data published today has prompted one prominent analyst to question the Bank of England's Monetary Policy Committee's decision to cut interest rates by 0.25 per cent last month, and suggest that inflationary pressures will prevent any cuts in the short- to mid-term.
ThisisMoney: First-time buyer joy - in 2025 FIRST-time buyers only have 20 years wait before they will be able to step on the property ladder, according to new research. Unlike today's troubled youngsters, first-time buyer in 2025 will benefit from a plethora of small starter homes built from Government subsidies and earnings growth outstripping property price rises.
Telegraph: Hundreds of EU textile firms fold Almost 200 textile firms are closing each week across the EU because of surging imports from low-cost countries, despite quotas imposed on Chinese clothing last month
ThisisMoney: Second-home plan under attack PLANS to let pension savings be used to buy a second home came under fire last night. Chancellor Gordon Brown's proposed changes could mean sizeable tax breaks for some wealthy buyers. There are fears that this will trigger sharp house price rises in rural areas, forcing locals out of the property market.
Guardian: Lloyds TSB to move 125 jobs to India Staff at Scottish Widows were told yesterday that 125 jobs are to be outsourced to India by the parent company Lloyds TSB to cut costs. The news shocked the 4,000 workers at the Edinburgh-based insurer, according to union officials at Amicus, who pledged to fight compulsory job losses.
Guardian: Diesel 'could cost £1 a litre by Christmas' The price of a litre of diesel could reach £1 before Christmas if oil prices continue to rise, analysts have warned. The average price of diesel is now 95.3p a litre, compared with unleaded petrol at 91.6p. Diesel costs are rising more quickly than petrol because of constraints in refining capacity, said Ray Holloway of the Petrol Retailers Association, which represents independent filling stations.
TimesOnline: Crude politics to keep oil price rising This week the price of a barrel of oil surged towards $70 a barrel, up more than 65 per cent on the start to the year and near the inflation-adjusted price last seen in 1980, shortly after the Iranian revolution.
Money Week: What Lies Ahead for US House Prices? Can you open a financial paper today without an article on the slowing housing market? Everyone is looking for signs of an impending fall in housing prices.
Money Week: The Future for UK Interest Rates It is self-evident from the voting figures — a 5:4 majority for a rate cut with the Governor voting against the 25bp reduction to 4.5% — that the decision made by the Monetary Policy Committee at the Bank of England on August 4 was, as we had always expected, very finely balanced.
ThisisMoney: Second homes boom predicted OR thousands of Britons, buying a second home has meant looking at places such as Spain, the Dordogne in France and Tuscany in Italy.In the UK, there was the West Country or the Cotswolds. Now, however, would-be buyers are turning their attentions to slightly less obvious areas - such as Bradford and the East End of London.
Sky News: FACTORY ORDERS FALTER Factory order books fell at their sharpest pace in nearly two years in August, a survey for the CBI has shown. However, companies still expect to raise output in the coming months. The Confederation of British Industry said its monthly manufacturing order books balance fell to -29 in August, its lowest since October 2003.
SkyNews: MORTGAGE DEALS FALL OFF Mortgage approvals for home purchases fell 6% in July. However, that was at a much slower rate than in previous months. Approvals - the number of loans agreed but not yet made - fell to 65,611 in July from a 12-month high of 70,750 in June, said the British Bankers' Association.
Guardian: Oil prices top $68 a barrel Crude oil prices broke through the $68 a barrel mark for the first time today after China reported a surge in oil imports in July. Storms that could damage production in the Gulf of Mexico also contributed to the latest bounce in prices. Gulf production accounts for around 30% of US output and refineries have shut down as a precautionary measure against hurricanes.
BBC NEWS | UK | Tax plan sparks rural homes fear Plans to give tax breaks on second homes could exacerbate the shortage of affordable housing in the countryside, a government watchdog has warned.
Telegraph: Surging oil price forces bosses to wield axe There was a sharp jump in the price of oil yesterday, as the CBI said British factories had slumped because of high energy prices. The employers body said it was "energy, not wages" that is biting into manufacturers, who are firing 20,000 to 25,000 staff every three months.
Guardian: Economic growth will slow to 13-year low, says CBI Britain's economy is likely to grow at the slowest rate for 13 years as the result of the slowdown in consumer spending and a new recession in the manufacturing sector, according to the CBI.
TimesOnline: High street slowdown fuels fears for stricken industry THE recession in manufacturing looked set to worsen yesterday after a survey of the sector showed that slowing consumer spending and soaring oil prices had caused new business to fall at its fastest rate for nearly two years.
ICWales: Fears over 800 job losses in Pontypool FEARS that the Welsh automotive industry is about to take another blow grew last night as reports circulated that the future of the TRW plant in Pontypool is in doubt. Local politicians reacted with dismay to claims that the major employer in Pontypool yesterday started negotiations with workers over potential job losses. TRW, a global car parts manufacturer, employs 800 people in its Pontypool car brakes factory.
Independent: BCC trims growth forecast as consumers spend less The British Chambers of Commerce have slashed their economic growth forecast for this year to 2 per cent, fuelling expectations that the Chancellor will have to cut his own far more optimistic estimate.
Guardian: Builder predicts housing recovery Shares in house-building companies rallied yesterday as Britain's largest home developer defied housing market sceptics by reporting record first-half figures.
Telegraph: 'Shoemaker to the stars' files for bankruptcy Charles Jourdan, shoemaker to the world's rich and famous for the past 80 years, filed for bankruptcy yesterday after collapsing under €9m (£6m) of debt. The company's 432 employees have been warned that they will lose their jobs unless a buyer can be found for parts of the business in coming days.
ThisisMoney: Northern slump hits home at Persimmon A SLOWDOWN in the housing market has finally caught up with Britain's most valuable builder, Persimmon, as it reported a 12% fall in sales from its northern division.
ThisisMoney: Ombudsman reports hike in IFA complaints THE Financial Ombudsman Service has reported a spike in the number of endowment mis-selling complaints involving Independent Financial Advisors. The FOS said 13% of all endowment complaints concerned IFAs last year, but it expects that figure to rise significantly during the current.
BBC NEWS | England | London | Tube firm announces 300 job cuts One of the companies responsible for maintaining the Tube is axing 300 jobs. Metronet said there would be no compulsory cuts as part of the restructuring and losses would mainly be administration and backroom posts.
Reuters: UK's Persimmon expects autumn boost to house sales British housebuilder Persimmon (PSN.L: Quote, Profile, Research) has seen an increase in confidence among house buyers and expects sales to pick up possibly as soon as September, Chief Executive John White said on Tuesday.
Guardian: Property market slowed in July Selling a property became harder in July, with the number of viewings before a sale up 50% on June's figure, estate agents said today. A survey by the National Association of Estate Agents (NAEA) revealed that July lived up to its reputation as a traditionally quiet month for buying a home. Its members reported falls in the number of buyers on their books, the number of properties available and the number of sales agreed.
ThisisMoney: Fixed rate deals edge up BORROWERS looking to fix their mortgage are being urged to get a move on as some of the best buy products on the market disappear. Despite interest rates falling this month, lenders have started to raise their rates on fixed deals following a shift in sentiment over the future of the economy.
BBC NEWS | UK | 'Planning' call for second homes People wanting to sell their properties to second-home buyers should be made to seek planning permission, the Liberal Democrats have suggested.
Times Online: Tough times for buy-to-let novices The buy-to-let boom is over, for the time being at least. Figures from the Council of Mortgage Lenders show that the number of new loans fell by 4% in the first half of the year. This follows an 18% decline in the second half of last year.
Times Online: Inflation rate is now slave to oil prices SHOULD Britain be starting to worry about inflation? After the stream of inflationary news stories last week, it is tempting to think so. On Monday, the oil price shot up to more than $65. On Tuesday, the official measure of inflation jumped to its highest level for eight years. Then on Wednesday came the most disconcerting development: Mervyn King, the Governor of the Bank of England, tried to warn the Monetary Policy Committee that a cut in interest rates could jeopardise the inflation outlook, but found himself outvoted for the first time in the history of the MPC.
ThisisMoney: Tough financial times for young Britons SO what is the problem with the youth of today? It is hardly a new question, but rarely has there been more cause to ask it. There are disturbing and concrete signs that the younger generations are in a serious quandary - and not just the 'happyslapping' hoodie wearers.
ThisisMoney: UK jobs threat after shipping firm takeover ERMAN travel giant TUI's £1.2bn purchase of Anglo-Canadian shipping company CP has raised the spectre of job cuts at the Gatwick-based firm. TUI may target jobs there in its quest to rationalise as its Hapag-Lloyd line becomes the world's fifth biggest containershipping business.
IC Wales: Bankruptcies prompt consumer debt fears THE number of consumer debtors resorting to bankruptcy, when compared to entrepreneurs and business people, has hit a new high. The proportion of bankruptcy cases represented by those whose debts are mainly personal loans and credit card balances rose by 70% in the year 2004/05, according to new figures.
Reuters: Property transactions fall in July-UK tax collector The number of property transactions in England and Wales edged down in July, Britain's tax collector said on Monday, but activity remained well above a low at the start of the year. Transactions fell to a seasonally adjusted 122,000 in July from 123,000 in June, HM Revenue and Customs said. That was down on 151,000 a year ago but above a low of 107,000 this January.
ThisisMoney: £9,000 bill for two late payments MONEY was always tight for John Bullen and his wife Freda, but the couple scrimped and saved to make sure they met their monthly repayments for a £13,000 loan.
Scotsman: Don't bank on more interest cuts THE latest inflation figures and the minutes of the last Bank of England Monetary Policy Committee meeting showing the governor voting against a cut in interest rates have brought us to a critical juncture in monetary policy. Britain could now be close to an economic 'worst of all worlds'. It is one that combines slowing growth, subdued consumer spending, rising unemployment, a housing market dead in many areas, rising inflation, pending tax increases and interest rate setters deeply divided as to what the response should be: rate cuts, no cuts - or even an increase.
Independent: Hopes of more rate cuts recede as oil pumps up inflation The cost of living is running at its highest rate for eight years, official figures revealed last week. Soaring petrol prices lay behind the rise in inflation to 2.3 per cent in July, its highest since 1997, according to the Office for National Statistics.
Telegraph: There's no need to panic over inflation Last week the corpse seemed to be stirring. Inflation rose from 2 per cent to 2.3 per cent, leading to fears that we are on the brink of an inflation resurgence. Are these fears justified?
Times Online: Move fast to snap up cheap home loans FIRST-TIME buyers and homeowners looking for a new loan were urged this week to act fast to grab the best deals as lenders moved to increase the rates on fixed-rate mortgages. The trend for more expensive fixed-rate deals comes despite the Bank of England’s decision to cut the base rate to 4.5 per cent.
Financial Times: Housing wealth falls for first time in a decade British net housing wealth has declined for the first time in a decade because of rising mortgage debt and falling house prices, according to an analysis by the Financial Times. In the second quarter, the net wealth tied up in British homes dropped by over £60bn. This was because falling house prices wiped close to £40bn off the value of the housing stock and total mortgage debt rose by over £20bn. The last time net housing wealth fell was in the fourth quarter of 1995.
Times Online: Company tax surge eases the strain on Chancellor A SURGE in revenues from corporation tax and national insurance helped to ease strains on the Government’s finances last month, but still left Gordon Brown on course to overshoot his borrowing plans for the financial year.
Guardian: Manufacturing share has fallen 30% The manufacturing sector's share of the economy has fallen by almost 30% since Labour came to power in 1997 and now contributes only half as much to output as financial and business services, the government said yesterday.
Silicon.com: 'Chav' towns hit by house-buying info websites The proliferation of websites providing house buyers with information on good and bad neighbourhoods could widen the divide between the richest and poorest places in the UK, according to new research.
BBC NEWS | England | Staffordshire | Group meets to discuss RAF losses A task force which was set up following the announcement of hundreds of job losses at RAF Stafford has met for the first time. The Ministry of Defence (MoD) has said 280 redundancies at the storage depot are planned by 2007. The task force is to press the MoD to let JobCentre Plus give early help to workers affected.
BBC NEWS | England | Cumbria | Threat to textile printing jobs Up to 62 jobs at a textile printing firm could be lost after plans for a major restructuring were announced. Staff at Stead McAlpin in Carlisle, which is part of the John Lewis Partnership, were told about the plans on Thursday. The company said changes were needed to secure the company's future, which had been in some doubt because of a period of difficult trading conditions.
BBC NEWS | England | Shropshire | Job losses at county timber firm Richard Burbidge Ltd, based in Oswestry, is blaming the cuts on a downturn in the DIY and housing market. The firm, which employs more than 400 people in Oswestry and Chirk, said up to 30 posts, mainly managerial and administrative, may be affected.
Colne News: Job losses shock as firm goes bust Wages to go unpaid as company faces insolvency. WORKERS at the Trawden-based company VFN engineering this week received official confirmation that they had lost their jobs.
Reuters: Do retailers' tales of woe reflect reality? Have consumers really lost their appetite for shopping or are retailers just complaining needlessly? Britain's shopkeepers have loudly lamented a slowdown in spending -- the British Retail Consortium said July sales were the weakest in a decade -- as consumers faced soaring fuel bills and higher mortgage payments over the last year.
Sky News: Are You Part Of The New Billion-Pound Pensions Scandal? If you're on of the 7.5 million people who opted out of the State Second Pension (formerly SERPS) you are likely to find a recent report from consumer group Which? very interesting. Essentially, the study has found that, due to high investment charges and poor performance in many private funds, millions of us would have been better off simply staying put.
Sky News: AA TO CUT MORE JOBS The AA motoring organisation is planning to cut 100 jobs from two of its call centres. The AA - owned by two private equity firms following a £1.8bn takeover in October - said the job losses at Newcastle and Cardiff involved mainly management and administrative roles. The AA recently announced that a site at Maidstone in Kent, which employs 154 staff answering emergency breakdown calls, will close.
BBC NEWS | England | Lancashire | Matalan announces 300 axed jobs Clothes retailer Matalan is to cut 300 jobs, including about 100 posts at its headquarters in Lancashire. It follows warnings to staff in June that the firm was looking to save £15m a year because of slowing sales.
ThisisMoney: Shutters go up at Barkers after 135 years BARKERS, the iconic Kensington department store, is to close after 135 years of trading. Its trademark designer clothing and Le Creuset saucepans could be replaced with lentils and mung beans as the front-runner to take up the premises is US-based Whole Foods Market. Whole Foods is best-known in the UK for its upmarket Fresh & Wild organic stores, which it bought in January 2004.
ThisisMoney: Take shelter, taxpayers HIGHER taxes are looming as the economy produces less than Government forecasts. The knock-on effect is a shortfall between the Government's spending plans and money coming into the coffers. Here, Sylvia Morris looks at where you can shelter your money to make the most of the tax breaks on offer.
ThisisMoney: Controversy over 'flat tax' THE Treasury was accused of a cover-up last night over whether Britain would benefit from the adoption of a flat tax - a radical proposal favoured by some Tories. Arguments in favour of the policy, the direct opposite of Gordon Brown's complicated regime, were said to have been cut out of a briefing paper released under the Freedom of Information Act.
The Business: Job losses as Multiyork feels pressure Norfolk furniture company Multiyork announced plans yesterday to shed 39 jobs amid a downturn in orders. Multiyork, which employs 280 people at its head office and factory in Stephenson Way, Thetford.
Guardian: Economists expect tax rises next year Bumper tax receipts last month failed to stem criticism from analysts and opposition parties about the state of the public finances. The Office for National Statistics said public sector net borrowing last month registered a surplus of £2.9bn, the highest since records began in July 1980. Current receipts grew by 9.1% to £43bn.
Guardian: Rate cut fails to entice housebuyers Demand for mortgages dropped to its lowest level in three and a half years last month as Britain's consumers showed little sign of regaining their appetite for borrowing.
Times Online: Personnel Boss Axes His Own Job MATALAN’S human resources director has cut 300 jobs — including his own. Anthony McDaniel is one of about 90 staff to leave the discount retailer’s head office in Skelmersdale, Lancashire, as part of cost cutting in the face of a tough trading period.
The Motley Fool UK: Is Greed The Cause Of Debt? It's usually been thought that the reason most people get into trouble with debt is because of a life-changing event such as divorce, ill health or unemployment.
Yahoo! News: China newspaper pleads for higher fuel prices As most of the world struggles to cope with the impact of crude prices soaring over $60 a barrel, an influential Chinese paper on Thursday made an unusual call for higher fuel prices to protect the national economy.
Reuters: Mortgage lending slows sharply Mortgage lending slowed sharply in July to its weakest since December 2001, the British Bankers' Association said on Thursday, while consumer credit remained weak.
Reuters: EU ministers say trade limits will hit European jobs The European Union must ease curbs on Chinese clothing imports or risk job losses and bankruptcies across the 25-nation bloc, four EU ministers said in an article published on Thursday. Writing in the Financial Times newspaper, the ministers accused Brussels of sticking to an outdated view of international trade which could harm the EU economy.
BBC NEWS | England | Humber | High-tech steel centre costs jobs Steelmaker Corus has unveiled plans for a £10m automated distribution centre in Scunthorpe which will mean the loss of about 20 jobs. The new unit will allow steel sections to be moved automatically from the medium section mill to a computerised stacking system and onto transport.
Sky News: BENEFIT CLAIMS INCREASE The number of people out of work and claiming unemployment benefit rose 2,800 in July, the sixth rise in a row. Although the figure was less than predicted, the rise still marks the longest stretch of increases since the economic slump of 1992. The total number of people out of work - including those not claiming benefits - rose by 27,000 to 1.4m.
Sky News: MORTGAGE LENDING SLOWS Mortgage lending eased during July with total mortgage lending reaching £25.2bn during the month. That was 2% less than during June and 13% below the same time last year, said the Council of Mortgage Lenders. The figures appear to show the housing market stabilised while people waited for August's widely-anticipated interest rate cut.
Sky News: SALES CONTINUE TO FALL Shop sales continued to fall in July following their sharp jump the month before, but the fall was less than expected, according to the Office for National Statistics.
Guardian: Borrowers opt for fixed mortgages Half of all mortgages taken out in July were fixed-rate deals, as the average price of these loans fell for the ninth consecutive month, figures showed today, but lending was down on the previous month.
Sky News: Bye, Bye, Buy-To-Let? Although the buy-to-let (BTL) bandwagon continues to roll, it's fairly clear that the brakes are being applied in some areas. In the first half of this year, mortgage lenders lent £9.9 billion to buy-to-let investors. Although this is 1% up on the second half of 2004, it's down more than a sixth (17.5%) on the first half of 2004. The number of new BTL loans has decreased even further, down from 119,900 in the first half of 2004 to 93,400 in H1 2005, a fall of about two-ninths (22%).
ThisisMoney: City's high-fliers face huge tax clampdown Thousands of wealthy City financiers face a new Governmentled purge of their pay arrangements. International banks with hubs in the Square Mile and Canary Wharf are running scared over concerns that they will be a hit with massive backdated bills for unpaid tax for dealmakers on their UK books.
ThisisMoney: Postal charges to soar The cost of posting some letters and parcels will rise by more than 50% under changes to Royal Mail's pricing structure. But the company says it will become cheaper to send other items. From September next year, postal charges will be determined by an item's size and shape, as well as its weight.
Guardian: Bank governor voted against cut in rates The most serious schism in the Bank of England's monetary policy committee since it was granted operational independence in 1997 was laid bare yesterday after it was revealed that the governor, Mervyn King, led a faction opposing this month's cut in base rates.
Telegraph: Crisis looms for Britain's borrowers Unemployment would lead almost two-thirds of borrowers to default on personal loans and credit card balances within three months of losing their income.
SMH (AUS): Boom, crash; it's a property opera When John Howard romped home in last year's election, the know-alls professed no surprise. The value of people's homes had been soaring - why on earth would they be in a mood to toss out the Government?
Housing Outlook: The UK Housing Market Outlook August 2005 The latest data from the Halifax estimate that house prices rose by 0.2% in July with year on year growth of 2.3%. The Nationwide data present a similar picture, with a rise of 0.2% in February and 2.6% growth over the year. Hometrack reported the prices had been falling for 13 months, with a monthly fall of 0.2% in July.
ThisisMoney: Sellers ditch agents for the web HOMEOWNERS are increasingly sidestepping estate agents to avoid hefty fees and attempting to sell their property online. Around 70% of consumers said they feel comfortable about marketing their property over the internet, while buyers are also logging on to search for homes.
Telegraph: Bank governor's problems are numbered on the petrol pumps We have feared a minor inflationary shock for nearly two years, ever since Gordon Brown effectively loosened the inflation target, by ditching the trusty old retail prices index, and replacing it with the euro-friendly consumer price index. At the time, this passed most people by as it was lost amidst the Chancellor's manoeuvring to keep us out of the single currency.
Guardian: Carpet retailer's sales fall 7% Britain's biggest carpet retailer Carpetright yesterday blamed weak consumer spending and disruption caused by the London bombings for a sharp fall in sales over recent weeks. Revenues were down 7.5% in the first 15 weeks since end-April, but the company said it expects business to recover in the autumn.
Guardian: Inflation hits eight-year high The prospect of further cuts in interest rates receded sharply yesterday after government figures showed soaring oil prices and less generous summer sales pushing inflation to its highest level since Labour came to power.
Sky News: BUY-TO-LET MARKET SLIPS Lending to buy-to-let investors slowed further during the first half of 2005 as house price growth stalled. A total of £9.9bn was advanced to people through buy-to-let loans during the first six months of the year, said the Council of Mortgage Lenders.
BBC News: Inflation jumps to record in July UK consumer price inflation (CPI) rose to 2.3% in July from 2% a month earlier, figures from the Office for National Statistics (ONS) show.
Telegraph: Retailers go braless for autumn EU curbs on imports of Chinese clothing have left Europe's retailers facing an autumn stock crisis, blocking millions of garments in ports and warehouses while shelves go empty in the shops.
BBC NEWS | Business | C&W to buy Energis and cut jobs Cable & Wireless has said it is to buy business telecoms provider Energis for an initial £594m ($1.1bn) in cash. The deal will lead to 700 job cuts, part of plans to cut costs by at least £80m within three years.
ThisisMoney: Property prices on the slide HOUSE prices are falling as the number of properties entering the market increases, figures revealed yesterday. Pressure on sellers to lower their expectations was borne out by a drop of 0.2%, or £367, in the average asking price in England and Wales during the past month.
The Citizen: HAS THE HOUSING BOOM ENDED? New figures show that the county's housing boom could be over after a 45% fall in house sales in Gloucestershire. Details released by the Land Registry show that between April and June this year property sales fell county-wide with 2,352 homes changing hands - compared to 4,275 in the same period last year. The slump has provoked speculation the frenetic market may finally be beginning to slow down.
ThisisMoney: Thousands face debt ruin The personal debt crisis has escalated to the point where six out of ten borrowers would default on loans and credit cards within three months of losing their job, a report warned yesterday.
MoneyExtra: Cost of housing rises by 5% as council tax bills increase New research by Halifax, based on the latest ONS data, shows that the cost of owning and running a house rose by 5% in 2003/04, more than four times the rate of CPI inflation, the government's preferred inflation measure.
Telegraph: CBI says times are tough for minnows Small and medium-size manufacturers are being forced to scale back investment and reduce their workforce as trading conditions continue to deteriorate, the CBI said.
FT.Com: Purchasers 'have to buy smaller homes' A quarter of homebuyers are forced to buy smaller properties than they desire because new homes are too small, according to the website Propertyfinder.com. It says that developers, constrained by government policy that encourages high density development, have created an over-supply of one and two-bedroom homes and a shortage of three and four-bedroom properties.
Reuters: House prices fall in latest month -survey Buyers continued to have the upper hand in the property market in August as homeowners further lowered their asking prices to achieve a sale and agents' books remained full, a survey showed on Monday.
Guardian: How high can the oil price go? How high can it go and when will it start to hurt? This may sound like something the actress should ask the bishop but the question is, in fact, about oil. Black gold, as it is also known, smashed through the $66 a barrel level last week, its highest ever, and has risen 10% this month alone.
Evening Times: Estate agents face rogue 'for sale' signs rap ESTATE agents who "aggressively" market homes in property hotspots face a council crackdown. More than 40 estate and letting agents in Renfrewshire have been rapped for displaying 'for sale' signs and placards illegally.
Sky News: YOUNG 'SPEND RECKLESSLY' Older people believe Britons in their 30s are spending recklessly without worrying about debt or their future finances, a new report claims.
Telegraph: Guardian Media plans 407 sackings Guardian Media Group, the publisher of the left-wing national newspaper, has been secretly considering plans to fire 407 staff in a cost-cutting operation designed to improve its profits.
ThisisMoney: Mis-selling: The inside story COMPLAINTS are flooding in at 25,000 a month from homeowners who believe they were mis-sold mortgage endowment policies, according to a unique survey by Financial Mail. But the leading providers and sellers of endowments - Norwich Union, Prudential and Standard Life among them - insist they are coping with this unprecedented barrage.
Telegraph: Estate agents lose jobs as 'very weak' market takes its toll The slowdown in the housing market has hit Britain's biggest chain of estate agents hard with staff being laid off and branches closed. Countrywide has reduced its staff in estate agencies by nine per cent through natural wastage and closed 33 branches.
Telegraph: Pension funds face tax clamp Pension funds could be subject to 40pc inheritance tax for the first time after new rules take effect next April, accountants and lawyers claim.
Times Online: No news is good news for UK banks MERVYN KING’S latest Bank of England Inflation Report is the antidote to hysteria. Reading it should provide the equivalent of a course of beta-blockers for investors biting their nails over bank shares.
Times Online: Banks quick to take their cut SAVERS are fearful that their returns could slump by more than last week’s quarter-point cut in the base rate after two savings institutions reduced some of their rates by half a percentage point or more.
Herald: Fish farms plead for aid to survive SCOTTISH fish farmers meet for crisis talks today in an effort to win the government cash they say is necessary for survival, with fears of imminent company closures and job losses in some of the most remote parts of Scotland.The independent sector of the industry, which employs about 4000 people, mostly in small communities throughout north-west Scotland, says it is facing an unprecedented cash crisis.
Scotsman: Knitwear jobs axed A WORLD famous textile firm yesterday announced 35 job losses. Pringle of Scotland said it hoped to keep the number of compulsory redundancies at their outlet in Hawick, Roxburghshire, to a minimum.
Flintshirestandard.co.uk Fears over job losses UNION leaders say it is too early to say how many jobs will be axed at a Deeside food firm. Workers fear that up to 500 jobs are at risk, but Greencore said that will not be the case, admitting only that the redundancies will be “substantial.”
FT.Com: House prices fall for fifth month House prices fell for the fifth month in a row in July, bringing price levels back to those last seen in December, according to the FT House Price Index, the most accurate guide to the real trends in residential property prices.
ThisisMoney: Nationwide borrowers miss out NATIONWIDE, the UK's largest building society, has disappointed borrowers after reducing its base rate mortgage by only 0.1% following last week's cut in interest rates.
ThisisMoney: Endowment shortfalls on the rise The size of the average shortfalls in homeowners endowment policies is on the up with a difference of £7,057 between the maturity value of a property and the mortgage it needs to repay.
Reuters: Oil extends record-breaking streak above $66 Oil prices climbed above $66 a barrel on Friday, setting a fifth record high in as many days as robust U.S. economic growth keeps refiners straining to meet demand and friction over Iran's nuclear programme jangles nerves.
Guardian: Iranian stand-off pushes oil to fresh high Refinery problems add to pressure as petrol threatens to hit £1 a litre. Oil prices shot up to yet another record yesterday, driven by Iran's stand-off with the west over its nuclear plans and by more refinery trouble in the United States.
Telegraph: Young renters shun the property ladder Young adults are opting for renting in fashionable areas close to their social circles rather than commit themselves to a mortgage - which smacks of having children and getting married, claims a new study.
The Daily Telegraph (AUS): Rates may go down Reserve Bank governor Ian Macfarlane today ruled out any move on interest rates in the near term, adding an interest rate cut was just as likely as an increase.
The Guardian | Countrywide hit by 'appalling' downturn Britain's biggest chain of estate agents yesterday showed just how dramatically the housing market had slowed when it revealed it had suffered a loss for the first time in a decade.
Money Week: Where risk hides All the financial indicators are telling us that the markets are practically risk free, says James Ferguson, but they are not. In fact, risk levels are higher than ever.
Money Week: How to avoid slipping on oil The soaring oil price is bad news for the global economy, but how high does it have to go before it really starts to cause trouble? Annunziata Rees-Mogg reports
Money Week: Will US Housing Rust or Bust? Until early this year, I steadfastly argued that US housing markets were far from bubble territory, supported as they were by strong fundamentals and buttressed by what I saw as attractive ‘valuations,’ at least by my admittedly crude metrics.
SKY News: BA suspends check-ins A catering row which has hit British Airways services has escalated after the airline was forced to halt all check-ins to Heathrow flights.
ThisisMoney: Countrywide's profits collapse COUNTRYWIDE today unveiled an 89% collapse in profits as its core estate agency division suffered a loss for the first time in a decade.Pre-tax profits in the six months to 30 June fell to £3.5m from £30.7m a year earlier. Chairman Christopher Sporborg said the housing market appeared to have stabilised but confidence could easily be knocked off course by external events.
ThisisMoney: Lenders stop card flutter THE DAYS of banks and building societies dishing out credit cards like confetti could be at an end as lenders struggle with a surge in bad debts.
ThisisMoney: Young reject buying to rent SPIRALLING house prices have spawned a new breed of 18- to 34-year-olds who have no interest in buying a property and are at the heart of a move towards Continental-style renting.
BBC NEWS | Business | Dairy firm Arla in profits alert Milk supplier, Arla Foods UK, has seen its shares fall 9% after it issued a profits warning. The firm's chief executive Tim Smith told Reuters that the steep increase in diesel prices and in plastics for packaging had hurt it the most.
ThisisMoney: Car insurance hike on the cards INSURANCE companies face a staggering £800m loss on car policies this year as stiff competition means premiums have failed to keep up with the spiralling cost of claims, influential research predicted today.
Telegraph: OFT to survey bailiffs' behaviour The Office of Fair Trading is asking consumers to comment on whether debt collectors are physically or psychologically harassing them, with findings which will show how its guidance has changed behaviour in the sector.
Telegraph: Scot Power chief warns of rising cost Ian Russell, chief executive of ScottishPower, yesterday forecast high power prices for another 12 months and suggested that a $9.4billion sale of its underperforming US business PacifiCorp to billionaire Warren Buffett could be completed earlier than expected.
Telegraph: Diesel alert and fears for stockpile push oil to new record Oil prices soared to record highs yesterday as news of a fall in American gasoline stockpiles caused by strong demand from drivers spooked traders and a leading energy consultant warned that Europe faced a severe shortage of diesel within 10 years.
Guardian: Bank chief widens rift with Brown The division between the Treasury and the Bank of England over the health of the public finances widened yesterday when the Bank's governor, Mervyn King, openly questioned Gordon Brown's interpretation of the so-called golden rule.
Times Online: Bank foils City hopes for more rate cuts THE Bank of England undermined hopes for further cuts in interest rates yesterday when it forecast a strong rebound in the economy from next year and sounded a warning that lower rates would stoke inflation.
Money Week: UK House Prices Remain Overvalued The housing market correction may have a long way to go. Near term, the outlook for house prices, for transactions levels and for mortgage lending is significantly cooler than we have seen over the past five years. In our view, UK house prices probably remain overvalued, perhaps significantly so.
BBC NEWS | Business | US housing boom vexes the Fed As the Federal Reserve raises interest rates in the US for the 10th time, its inability to control accelerating house price inflation is worrying analysts.
FT.Com: Gilts dip as UK rate-cut hopes fade Short-dated gilts fell as hopes of another UK interest rate cut this year faded on the back of a relatively hawkish quarterly inflation report from the Bank of England released on Wednesday.
ThisisMoney: Parents shoulder burden of student debt PARENTS are being forced to bear the brunt of soaring levels of student debt, a study has revealed. Growing numbers are forking out thousands of pounds to cover their offspring's tuition fees and living expenses while studying.
Times Online: Sharp rise in exports boosts hopes for growth SURGING exports, with the sharpest monthly rise in sales of UK goods abroad for more than eight years, have led to a steep drop in Britain’s trade gap and boosted hopes for upward revisions to the economy’s recent growth.
Times Online: Rightmove hires in IPO managers Rightmove.co.uk, the online property website, has hired Swiss-American investment bank UBS to help prepare it for a stock market listing that could see it valued at more than £200 million.
Guardian: Britons have their 'head in the sand' over savings The majority of Britons would be unable to cope financially in the event of a minor household emergency, research revealed today. Of the 2,300 people questioned for Alliance & Leicester, just 28% said they had money put aside which could be used to replace household appliances, such as a cooker or fridge.
Reuters: BoE to lower growth outlook as consumers flag The Bank of England is set to slash its economic growth forecasts on Wednesday and analysts say the extent of the downgrade is key to how much further interest rates will fall, if at all.
Telegraph: Borrowers are kept waiting for their cut Borrowers with some of Britain's major lenders are still waiting to benefit from the Bank of England's decision to cut the base rate by a ¼ point last week.
Independent: Retailers sweat as China quotas cause shortage of jumpers Peter Mandelson, the European Trade Commissioner, sparked a dispute with retailers yesterday as curbs on Chinese textile imports prompted fears that shops will be left without autumn fashion collections this year.
Guardian: Fears of £1 a litre for petrol as world prices reach high Petrol prices at the pump set yet another record yesterday after world oil prices touched an all-time high for the second day running. Analysts said £1 a litre for petrol and even more for diesel were now a possibility but added that it was likely oil prices would fall back again in the autumn.
Economist.com: Perils at the pump Oil prices have hit yet another record, on fears of political instability in the Middle East and refining problems in America. So far, the world economy has managed to chug along without much ill effect. But how long can consumers go on paying ever more at the pump without cutting back elsewhere? And why aren’t high prices bringing new supplies to market?
Forbes.com: Wall Street's Fate Caught Up With Housing Of course, a lot can change quickly on Wall Street. And the current climate carries special risks. We’re not talking about oil recently hitting a record $62 per barrel, or Fed Chairman Alan Greenspan’s new warning of more rate hikes ahead, or even China’s revaluation of the yuan against the dollar this week. We’re talking about the growing danger from real estate.
StaffNurse.com: Nurse job losses warning The RCN has been alerted to the possibility of at least 350 nursing job cuts around Britain, the Nursing Standard reports today.
New York Times: That Hissing Sound This is the way the bubble ends: not with a pop, but with a hiss. Housing prices move much more slowly than stock prices. There are no Black Mondays, when prices fall 23 percent in a day. In fact, prices often keep rising for a while even after a housing boom goes bust.
Time Online: Retailers call for more rate cuts as sales hit low The lobby group representing Britain's retailers has called on the Bank of England to cut interest rates at least once more before Christmas after releasing figures showing that high street sales last month put on their weakest showing for 10 years.
Guardian: Banks call for data-sharing on personal credit histories Stories of customers with wallets stuffed full of credit cards, stacked up with more debt than their holders can afford to repay, have become commonplace amid the outcry about the level of personal indebtedness in Britain.
Times Online: £1.5bn cost of pensions lifeboat 'could sink businesses' COMPANIES will pay £1.5 billion to keep the Government’s pensions lifeboat afloat, five times more than previously estimated, experts said yesterday when it emerged that a number of businesses faced being crushed by their individual levies.
Times Online: B&B upbeat on buy-to-let as profits rise 6% Specialist lender Bradford & Bingley sang the praises of the buy-to-let mortgage market as its revealed that pre-tax profits had risen by 6 per cent during the first half of the year despite a "challenging" housing market.
ODPM: House price index June 2005 (PDF) The mix-adjusted average house price in the UK in June 2005 stood at £184,152 up from £182,651 in May (not seasonally adjusted).
ALL BOOMS BUST: Words of Caution from Robert Kiyosaki Lately, I have been asked if we are in a real estate bubble. My answer is, "Duh!" In my opinion, this is the biggest real estate bubble I have ever lived through. Next, I am asked, "Will the bubble burst?" Again, my answer is, "Duh!"
This is Money: Retail sales hit new lows High street sales continued to suffer in July, with poor weather pushing sales down to their weakest level for 10 years.
FT.Com: Lenders warm to the idea of positive data sharing Supporters of the increased use of positive credit scoring by lenders were disappointed that an amendment designed to achieve just that did not make the cut at the third reading of the Consumer Credit Bill in July.
BBC NEWS | Business | Housing market set to 'flatline' House price inflation has slowed to a crawl across most parts of the UK but property market experts have told BBC News that they do not think a crash is around the corner.
Yahoo! Finance: Oil soars towards $64 to new record high Oil soared towards $64 a barrel to a new record high on Monday on fears of militant attacks in the world's biggest oil exporter Saudi Arabia and a possible gasoline shortage in the United States.
BBC NEWS | Magazine | How to build a house for £60,000 With new homes planned to help first-time buyers get on the property ladder, John Prescott has challenged developers to come up with houses that can be built for £60,000. What's the secret?
Credit Action: Debt Statistics August 2005 Total lending in June 2005 grew by £8.8bn. Secured lending grew by £7.5bn in the month and consumer credit lending grew by £1.3bn in the month.
Guardian: Factories hit by fall in orders Confidence among manufacturers has fallen in all regions for the first time in two years while property price inflation has hit its lowest level for nearly a decade, according to surveys released today.
Guardian: Hold on, this could get bumpy You may think that the housing market, whose foundations having been looking increasingly shaky over the past year, would be shored up by last week's interest rate cut from the Bank of England.
Guardian: Are consumers living on borrowed time? As if to underline the urgency of the Bank of England's first cut in interest rates for two years last week, Britain's lenders have issued a string of warnings that their debt-ridden customers are beginning to struggle.
ThisisMoney: Banks write off £3bn bad debts Rising fears that customers will not be able to repay their loans have forced High Street banks to write off almost £3bn in the first six months of the year.
Sunday Times: Royal boom in St Andrews In just three years the average house price in St Andrews soared from £103,000 to more than £214,000 — a 108% rise.
BBC NEWS | UK | 50,000 miss licence law deadline Up to 50,000 businesses which provide alcohol, hot food or entertainment after 11pm may have to shut temporarily after failing to reapply for licences.
Telegraph: Royal Mail plans 30,000 more job losses Royal Mail is to reduce the number of its full-time employees by at least 30,000, according to a strategic plan that it has submitted to Postcomm, the mail regulator.
Independent: House prices slow but industry picks up speed House price inflation slowed to its annual lowest growth rate in almost a decade last month, a survey showed yesterday, just a day after the Bank of England cut interest rates in response to sluggish consumer spending. But the manufacturing sector showed some signs of revival
Guardian: House price growth at a nine-year low House price growth fell to a nine-year low last month, the Halifax said yesterday, the latest proof that Britain's lengthy property boom is running out of steam.
Guardian: Bankruptcies hit highest level since 1960 Credit card companies came under fire last night as new figures showed a record number of people going bankrupt as a result of the country's growing mountain of debt.
Times Online: Bad debt 'over the worst' ALL OF Britain’s main banks are showing the effects that rising interest rates have had on consumers. The number of people in arrears on payments on home loans, credit cards and personal loans has risen rapidly during the first half, and is substantially higher than the same period last year.
Times Online: Industry slowdown is not as bad as feared Industry received a boost after figures showed it slowed in the second quarter by less than previously thought, as a survey of confidence and new growth estimates suggested the economic slowdown could be easing.
Times Online: 13,000 jobs could go in Rover fallout THE jobs toll from the collapse of MG Rover could be 13,000 and the loss of wealth from the West Midlands up to £380 million, according to the MG Rover Task Force.
New HousePriceCrash Video. Courtesy of ClassixUK. This movie is dedicated to Kirstie Allsop of Channel 4's "Location, Location, Location" who famously said that she would eat her hat if house prices in the UK dropped.
Sky News : Manufacturing Output Slightly Higher There are encouraging signs that the slowdown in the UK economy may not be as bad as had been feared.The better news comes with figures showing that manufacturing output rose 0.2% in June.
ThisisMoney: Petrol set to hit £1 a litre Motorists today faced the threat of pump prices soaring to £1 a litre as the cost of crude oil rose to a record high. Some garages are already charging up to 95p a litre for petrol and only fractionally under £1 a litre for diesel.
Times Online: Consumer debt fears as insolvency rises A sharp rise in the number of individuals being declared insolvent during the second quarter has prompted some City economists to express concerns about the high level of consumer borrowing.
BBC News: Bankruptcies hit another record The number of individual insolvencies in England and Wales soared by an annual 36.8% in the second quarter, official figures show.
Sky News: House Price Inflation Hits Nine-Year Low The annual rise in house prices has slowed to its lowest level for more than nine years, the latest Halifax survey shows. It says house prices rose by 0.2% in July, while the three-month annual rate of increase slowed to 2.3% - the lowest since April 1996.
Every Investor: There's too much new-build property already. If Prescott concretes over the south of England to build thousands more homes, your house could plummet in value. Cutting base rates may ease the pressure on house prices. But the old-fashioned law of supply and demand still points to flat or falling prices.
Reuters: Economists see strong chance of further rate cut The Bank of England is likely to follow up Thursday's interest rate cut with a further reduction, probably by the end of this year, according to a Reuters poll. The poll of 42 economists, surveyed after the Bank cut its benchmark rate to 4.5 percent from 4.75, gave mid-range forecasts for rates to end this year and next at 4.25 percent.
Reuters: Rate cut seen as no remedy for retail slowdown While a quarter-point rate cut from the Bank of England was just the medicine many retailers were calling for, analysts said it was far from being a panacea for the ailing sector. "I really don't think this is going to make much difference to consumer behaviour for quite some period. For most families, the issues are at least as much increases in costs like utility bills and indirect taxes," said Simon Irwin at JP Morgan.
FT.com: Fantasy figures in the buy-to-let market (Reinhard's letter to the editor) Sir, In your front-page report (July 30) you expose the practice of avoiding lenders' deposit requirements for buy-to-let investors by overstating the value of the property. We have been warning about this and other fraudulent practices for a long time.
The Motley Fool UK: The Effect Of The Base Rate Cut The last time the Bank of England cut interest rates two years ago, everyone was caught napping and it came as a bit of a surprise. Not this time though.
Money Week: Taking the direct approach Last week I asked for your help. Could anyone, I said, suggest a bank that was capable of taking care of my current account with an adequate level of competence.
Sky News : Fewer Permanent Jobs On Offer Growth in permanent job placements slowed in July to the lowest in five months and wage inflation was its slowest in 18 months, a report says.
Times Online: Interest rates: more cuts to come? The City and business has applauded the Bank of England's 0.25 per cent cut in interest rates. But the debate has already moved on to what's in store next month. By Graham Searjeant, The Times Financial Editor
Times Online: Bank cuts interest rates to 4.5 per cent The Bank of England has cut the cost of borrowing for the first time in two years today as it moves to kickstart consumer confidence and revive the flagging economy.
Gitterdammerung (The Twilight of the Gits) Or the coming cataclysmic property crash - and its even more cataclysmic consequences. The current global property price boom is the biggest bubble in history - we are headed for a truly cataclysmic property crash
Times Online: HBOS asks for details of council tax arrears HBOS, Britain’s biggest mortgage lender, is pressing the Government to force local authorities to provide banks with details of council tax arrears in a drive to improve credit scoring.
Guardian: Services pick-up unlikely to halt interest rate cut A significant measure of the economy's dominant services sector showed an unexpected pick-up last month but analysts remain confident that the Bank of England will cut interest rates today.
Guardian: Hanson warns of weak housing demand Building materials company Hanson yesterday announced a 28% rise in first-half profits but warned that weak demand in the UK house-building market would hit its future performance.
Telegraph: Maxwell sells to keep bailiffs at bay Kevin Maxwell, the son of the disgraced newspaper publisher Robert Maxwell, is selling his family home to pay a loan secured against it, a court was told yesterday.
ThisisMoney: Key workers locked out Thousands of young teachers, nurses and firemen cannot buy Government-backed affordable homes because banks and building societies will not give them mortgages
Guardian: Savers losing interest According to the analysts, an interest rates cut is on the cards tomorrow. Hilary Osborne talks to providers and industry experts to find out what this means for your savings
Independent: Bank must 'get off the fence' and cut rates, says CBI Sir Digby Jones, the figurehead of British business, urged the Bank of England yesterday to "get off the fence" and cut interest rates as new figures showed retail sales fell in July for the fifth month in a row.
Sky News: When Debts Don't Die With The Dead It's often thought that if you drop dead while owing money that your debts die with you. Not so. Your debts only die at the same time as you if you leave no assets at all.
Telegraph: Brown's burden of debt could grow by £60bn The Office for National Statistics yesterday classified over £4billion of obscure liabilities as government borrowing - the first step in a move which could see Gordon Brown forced to add £60billion to his official borrowing numbers.
Sky News: Why A Rate Cut Won't Help If the MPC does cut the base rate by a quarter-point to 4.5% this week, it will be at the same level as it was in July 2004. However, there are several reasons why this rate reduction will have little positive impact on household budgets. Here are four to think about:
BBC News: UK High Street sales remain weak Conditions on the High Street remained tough in July with nearly 50% of retailers seeing a drop in sales volumes, according to a CBI survey.
ThisisMoney: Trail-blazer ING drops the baton CRITICS warned it was a ploy when ING bank launched its flagship savings account with a chart-topping interest rate. Customers would be lured, they said, then the rate would be cut.
Times Online: Domestic decline sends industry into recession THE recession in manufacturing appears to be persisting into the second half of the year, according to the first snapshot of industry activity that will further cement expectations of an interest rate cut this week.
Times Online: Flat profits at Alliance & Leicester Alliance & Leicester, Britain's eighth-largest banking group, shrugged off fears about mortgage and lending arrears but still delivered flat profits for the first half of the year.
Telegraph: HSBC counts the cost of struggling borrowers HSBC, the world's second biggest bank, yesterday branded Britain as its most difficult market due to a weaker economy and an increasing number of borrowers struggling to pay off loans.
Times Online: Governor pads up for crucial interest rate test Interest rates are likely to be cut for the first time in more than two years when the Bank of England’s Monetary Policy Committee is expected to vote on Thursday in favour of a boost to the slowing economy.
ThisisMoney: Docklands in the doldrums A STOCK of upmarket flats worth £80m is sitting empty and unsold in Docklands.The jittery property market has hit smart developments aimed at well-paid City workers particularly hard.
Reuters: First-time buyers priced out of countryside First-time buyers are finding rural England increasingly unaffordable as house price growth has outstripped the rises seen in urban areas and local wages have failed to keep pace, according to a survey by the Halifax
BBC News: First-time buyers on poverty 'knife-edge' Many would-be first-time homebuyers consider getting on the property ladder a passport to prosperity but, it seems, it can also be a financial millstone condemning some to poverty living.
Times Online: Time is nigh for giving spenders a fillip Is the great British consumer dead? Or is he (or she) merely resting? This week the Bank of England looks set to put these questions to the test with an interest rate cut that will attempt to spark renewed life into a nation of unusually quiescent shoppers.
Times Online: Manufacturing decline boosts rate cut hopes A surprise decline in state of the manufacturing sector in July has cemented expectations that the Bank of England will choose to lower interest rates when it meets on Thursday.
Sky News: Oil Prices Up On Nerves Oil prices rose more than 50c to a nearly three-week high above $61 a barrel on Monday after state television reported the death of King Fahd.
Telegraph: Revenue singles out offshore accounts As part of its drive to increase tax receipts, HM Revenue & Customs is writing to people with offshore bank accounts, asking them to explain why no tax is due.
The Guardian: A difficult drive through the mist This week the Bank of England looks almost certain to ease off the brakes on the economy by cutting interest rates by a quarter point to 4.50%, the first reduction in two years.
Times Online: Bad loan losses jump at HSBC HSBC, Britain's biggest bank, has reported a hefty increase in its provisions for bad loans in the first half of the year, adding to fears that a consumer downturn has taken root in the UK.
Money Week: August Rate Cut is No Sure Thing The outlook for the UK economy is fluid - terrorist events, major data revisions, the potential fallout from China’s currency revaluation/currency regime change and even London’s Olympic bid success all add a significant degree of uncertainty to the monetary policy outlook.
Money Week: Debt, Delusion, and Deception Due to higher inflation, higher short-term rates and compound interest, ever-increasing amounts of credit are required to maintain their effects on spending and asset prices.
