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Price of average UK home fell in December

Average house price fell by -1.5% in December (vs. -2.4% in November)
• Annual rate of growth dropped to +2.0% (from +4.6%)
• Typical UK property now costs £281,272 (down from £285,425 last month)
• Rate of annual growth slowed in all nations and regions during December
• The Halifax House Price Index hits 40-year anniversary, with house prices up 974% since early 1983

Kim Kinnaird, Director, Halifax Mortgages, said:

“In December, the cost of the average UK home was £281,272, a fall on the previous month of 1.5%, with annual growth slowing to +2% (from +4.6%). However, the fall in December was lower than the monthly decline of 2.4% recorded in November, even taking into account seasonal slowdown driven by the festive period.

“As we’ve seen over the past few months, uncertainties about the extent to which cost of living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market.
“The housing market was a mixed picture in 2022. We saw rapid house price growth during the first six months, followed by a plateau in the summer before prices began to fall from September, as the impact of cost of living pressures, coupled with a rising rates environment, began to take effect on household finances and demand.
“These trends need to be viewed in the context of historic prices. The cost of the average home remains high – greater than it was at the start of 2022 and over 11% more than house prices at the beginning of 2021. The first half of last year was a very strong period for sellers, between January 2022 and August 2022, the average cost of a home rose by over £17,000 to £293,992 (growth of 6%), setting a new record high.
“As we enter 2023, the housing market will continue to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both supply and demand overall, with house prices forecast to fall around 8% over the course of the year. It’s important to recognise that a drop of 8% would mean the cost of the average property returning to April 2021 prices, which still remains significantly above pre-pandemic levels.”

https://www.pmi.spglobal.com/Public/Home/PressRelease/0c613db654394dedb6f2e3d1c55cbeed

Just hope it's not another value trap
GL

Osirium Technologies PLC (AIM:OSI) surged 27% on Thursday, bringing five-day gains for the IT security services group above 50%.

The rally follows a major shake up on the board of directors, including the promotion of Stuart McGregor from sales director to chief executive officer.

OSI shares are now changing hands at 4.26p with a £5.2mln market capitalisation

https://www.proactiveinvestors.co.uk/companies/news/1002511/osirium-technologies-rallies-27-following-board-shake-up-1002511.html

Let's hope BoE keep hiking interest rates at 3.5% Lloyds extra earnings are 2.350 billion

Keep hiking them rates Governor Andrew bailey

Bumble1968
Thanks for the link

Jefferies pitches its ‘buy’ recommendation with a price target of 75p, versus today’s market price of around 48p.

Hi bubble2021, looking good for 2023 boring banks paying a good dividends are safe haven for investors in the recession
GL

US Futures all banks are up pre market financial stocks are back in favour

Norwegian Air 1.66%

Dr John Glen, Chief Economist, Chartered Institute of Procurement and Supply (CIPS):

"With more uncertainty than ever in the UK economy, squeezed service providers remained hampered by stubbornly high costs and low customer volumes and the sector remained in contraction. With reduced output for the third month in a row, the slowest rise in the cost of doing business for fifteenth months was not enough to stop service providers focusing on getting good value from their supply chains without racing to the bottom on price.
"This shrinkage has also started to impact on job creation levels which stalled for the first time in almost two years. With another drop in orders, especially from domestic customers, businesses were cautious about building more operating capacity which in turn will affect job seekers looking for the next pay rise to manage cost of living rises as the country braces itself for another recession.
"There were some noticeable improvements in the efficiency of supply chains where stocks of essential materials were in greater supply. However, industrial action affected some businesses with transportation issues and delayed deliveries reversing recent supply improvements in parts of the service economy."

Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey:

"UK service providers ended the year with another downturn in new orders as strong inflationary pressures and worries about the economic outlook sapped demand. Overall levels of business activity fell only fractionally, despite an exceptionally challenging business environment and spending cutbacks due to cost of living difficulties.
"Stalling recruitment and lower backlogs of work added to signs that service sector companies are now experiencing fewer capacity pressures. Business optimism has recovered from the lows seen in the wake of last September's 'mini- Budget', but many firms are braced for a sustained period of subdued demand in 2023.
"Around 40% of the survey panel expect a rise in business activity over the next 12 months, while 16% forecast a decline. Survey respondents commented on squeezed disposable incomes, elevated recession risks and a housing market downturn as key factors likely to constrain demand in the year ahead. Although service providers widely noted concerns about global economic headwinds and stubbornly high inflation, there were also many reports citing positivity about factors within their control, including forthcoming product launches, expansion into new markets and planned business investment."

Service sector moves towards stabilisation

Key findings

Fractional fall in activity recorded at end of 2022

Inflation rates down, but still high

Employment unchanged, ending long period of jobs growth

The UK service sector remained inside contraction territory, but only just as 2022 ended. Activity was down fractionally, whilst new business fell at its weakest rate for three months. Cost pressures also showed signs of weakening, with inflation rates down for both operating expenses and charges. Nonetheless, price pressures remain elevated, and the business environment challenging. Firms subsequently exhibited a cautious attitude to hiring staff, which overall were left unchanged compared to November.
At 49.9, compared to November's 48.8, the headline seasonally adjusted S&P Global / CIPS UK Services PMI® Business Activity Index improved in December though remained below the 50.0 no-change mark for a third month in a row. Although the best reading since September, and indicative of a broad stabilisation of activity, the latest survey data and anecdotal evidence from panellists nonetheless painted a picture of a difficult operating environment. There were reports that cost of living pressures and high inflation continued to depress consumption, whilst uncertainty and hesitancy characterised business decision making. Indeed, firms and clients were reported to be delaying making commitments to new contracts until 2023. The net result was a fourth successive monthly fall in new business volumes placed with UK service providers. Domestic weakness was also the key depressor of overall sales: new export business rose in December, albeit only slightly, for the first time since August.

https://www.pmi.spglobal.com/Public/Home/PressRelease/94ea784c833e4535a13bd3f154c81261

China's services activity shrank in December as surging COVID infections hit demand, a private-sector survey showed on Thursday, although the pace of recent declines slowed while business confidence rose to a 17-month high.

The Caixin/S&P Global services purchasing managers' index (PMI) rose to 48.0 in December from 46.7 in November, but remained below the 50-point mark, which indicates contraction in activity, for a fourth straight month.

https://www.reuters.com/world/china/chinas-dec-services-sector-extends-declines-covid-cases-surge-caixin-pmi-2023-01-05/

The survey of over 5,600 firms – 92% of whom are SMEs – reveals business confidence, conditions and sales have stabilised at low levels, while inflation remains the top external factor of concern.

https://www.britishchambers.org.uk/news/2023/01/no-signs-of-business-recovery-bcc-quarterly-economic-survey-q4-2022

This is good for Lloyds investors

Recession in Britain is now in full swing with experts warning of a “critical” situation for small businesses up and down the country, according to fresh data, as the economy turns sour to start 2023.

Brits are reining in spending to withstand the impact of record-high inflation on their budgets, resulting in one in four of the more than 5,600 businesses surveyed by the British Chambers of Commerce (BCC) in November registering a fall in sales.

https://www.cityam.com/recession-in-britain-in-full-swing-as-experts-warn-of-critical-situation-for-businesses/

Low-cost airline Ryanair has raised its profit guidance for its full year 2023 to between €1.32bn (£1.16bn) and €1.42bn (£1.25bn).

This is a 25 per cent boost on its initial range of between €1bn and €1.20bn.

Analysts at Liberum raised Ryanair’s forecast after a better than expected third quarter; Ryanair carried 11.5 million passengers in December, 21 per cent up on last year’s levels. Numbers were also up on November’s 11.2 million travellers.

https://www.cityam.com/ryanairs-profits-will-rise-as-recession-prompts-passengers-to-opt-for-cheaper-fares/

IndusInd Bank has tied up with Qatar Airways and British Airways to launch a multi-brand credit card for Indian customers, the lender announced in a media release on January 5.

The card benefits include meet-and-greet service, tier fast-track and concierge service, and members will also be able to collect Avios - the rewards currency for British Airways Executive Club and Qatar Airways Privilege Club.

Financial stocks are coming back in favour with Investors looking for recession proof investments Lloyds is one them as it's well capitalised to withstand any recession I'm expecting the share price to slowly start moving up

UFO will make further gains on China exposed stocks rising on optimism over the country's unwinding of covid restrictions, iron ore recent rally is driven by China's planned reopening

The FTSE 100 rises 0.2% to 7565 points as China-exposed stocks rise on optimism over the country's unwinding of strict Covid-19 restrictions. London's premier index is bolstered by further gains in the likes of Burberry and International Consolidated Airlines as the "China recovery story prompted broker upgrades," Interactive Investor analyst Richard Hunter writes.

https://www.cityam.com/ftse-100-why-burberry-is-set-to-benefit-from-chinas-zero-covid-policy-u-turn/