House price slump is already upon us August 30, 2011 HOUSE prices remain overvalued in Britain, locking out many aspiring buyers. Of that there is no doubt. But it is also the case that average prices have fallen far more than is usually understood; the single biggest reason why so many younger people cannot enter the market is because they have to put down much [...]
WHAT THE OTHER PAPERS SAY THIS MORNING August 30, 2011 FINANCIAL TIMES DISPUTE ERUPTS OVER CONTROL OF LIBYA’S $65BN SOVEREIGN FUNG A dispute has erupted over control of Libya’s $65bn (£40bn) sovereign wealth fund, as the national transitional council attempts to maintain stability in the nation. Several NTC members have contested the authority of Mahmoud Badi, who is probing corruption at the Libyan Investment Authority. HONG [...]
Cheaper long-term mortgages are back August 30, 2011 MORTGAGE rates are plummeting. Interest rates on gilts and swaps – those things that indicate the price of fixed-rate mortgages – have been heading downwards for some time and look to set to stay there. Now lenders seem to have caught on and have started dishing out the goods. Last week, Chelsea Building Society launched [...]
US house prices weaken in June August 30, 2011 US house prices fell slightly in June, an index of pricing shows, in the latest sign that the housing market remains weak. A Standard & Poor’s index of 20 cities across the US showed house prices fell 4.5 per cent in June compared with a year ago. The fall was slightly better than the 4.6 [...]
Halo effect: Sage of Omah invests $5bn in buffeted Bank of America August 25, 2011 BILLIONAIRE investor Warren Buffett rode to the rescue of America’s biggest lender yesterday with a $5bn (£3bn) investment in the beleaguered Bank of America Merrill Lynch (BofA). Buffett’s investment provides a much-needed vote of confidence in BofA, which has seen its share price halve this year as it has fought to convince investors it had [...]
Tensions rising again in the markets August 25, 2011 WHEREVER one looks, there is danger in the air. Global equities are down 10.2 per cent in August and 11.3 per cent in the year to date. European and UK shares are down 13 and 10.4 per cent respectively in August, and 16.8 per cent and 11.5 per cent so far this year, Evolution Securities [...]
S&P president leaves after US downgrade August 23, 2011 STANDARD and Poor’s president Deven Sharma yesterday announced that he would leave the ratings agency. In a move described as having “nothing to do with the reaction to the US credit downgrading”, Sharma will stand down next month to pursue other opportunities. The president of four years has always had a rebellious streak, and has [...]
Pathetic markets want Bernanke to save them August 22, 2011 IT was heady stuff. The price of gold smashed through the $1,900 level in after-hours trading last night, as investors worried about instability and inflation piled into the precious metal. It was not just gold: equities also rose yesterday. Libya helped, of course, but there was one much more powerful reason why stock markets gained ground: [...]
Ireland eyes mortgage debt restructuring August 22, 2011 The Irish government is likely bring in legislation to restructure mortgage debts for thousands of troubled loanholders as it does not have the resources to fund a significant debt forgiveness programme, a junior minister has said. Ireland’s ruling coalition has promised to examine ways to ease the burden on mortgage holders struggling to cope with [...]
Gloomy American data fuels recovery doubts August 18, 2011 SHOCKINGLY negative economic data rattled markets in New York yesterday, adding to an ultra-bearish day for equities. Claims for US unemployment benefits rose; home sales dropped; inflation picked up; and a Philadelphia factory index collapsed to worse than a two year low. The gauge of factory activity in the Mid-Atlantic region fell off a cliff, [...]