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Key Economic News UK BBA mortgage approvals climbed in June BBA mortgage approvals rose to a level of 44.48 K in the UK, in June, compared to a revised reading of 42.87 K in the previous month. Markets were expecting BBA mortgage approvals to climb to a level of 43.30 K.

At 0330GMT today, Brent crude oil one month futures contract is trading 0.11% or $0.06 lower at $54.56 per barrel. On Friday, the contract declined 1.18% or $0.65, to settle at $54.62 per barrel, after Baker Hughes reported an increase of 21 oil rigs in the US to settle at 659 for the last week

Luxury transformation Indian billionaire Yusuffali Kader has joined forces with UK property developer Galliard to complete a GBP110m deal to create a five-star hotel at Great Scotland Yard, the site of the first headquarters of the Metropolitan police. The investment by Mr Kader, India's 30th richest man, is the latest in a surge of property deals by investors from the subcontinent

The world's big energy groups have shelved $200bn of spending on new projects in a round of cost-cutting aimed at protecting investors' dividends as oil prices fell for the second time this year. The decline in Brent crude, which has more than halved in the past year, was triggered by Opec’s decision not to cut output in the face of a US supply glut and weaker than expected demand. (FT)

Sky scores with £1 billion annual profits as it prepares to fight the European Commission over anti-competitive claims: Sky will unveil annual profits of more than £1 billion this week as it prepares to fight European Commission accusations of anti-competitive behaviour

Unilever enjoys solid first-half: Unilever sells household products that most of us use every day. Brand loyalty and a strong market position allows it to push through price increases that match the inflationary pressure on costs that give investors steadily rising profits and dividends. The encouraging signs for the company, that makes everything from Dove soap to Hellmans mayonnaise, was that sales growth in emerging markets accelerated to 6.5% in the three months to the end of June, up from 5.4c in the first quarter. Unilever is the largest ice cream seller in the world. Brands such as Ben & Jerry’s and Magnum should benefit from a heat wave across Europe at the moment and declining prices for raw materials as commodity prices slump. Its cash performance is also impressive with free cash flow up 48% during the first half of the year. The cash supports an excellent track record of regular dividend payments, and the quarterly payout was held at €30.2 cents (21p), ex-dividend 5 August and paid on 9 September. The full-year dividend is expected to increase by about 11% to 124 cents (89.7p), offering a prospective yield of 3%. The shares are highly rated, trading on 22 times forecast earnings. However, investors are willing to pay that premium because of the steady performance and lack of alternative investments that offer a 3% yield that rises above inflation every year. Unilever at £29.05. Questor says “Hold”.

Property cyber crime is escalating: Fraudsters are aggressively targeting solicitors that handle property sales because of the large sums of money involved in these transactions.

Foreign criminals push up London house prices: Foreign criminals are laundering billions of pounds by purchasing expensive properties, pushing up house prices, the National Crime Agency has said. Donald Toon, Director of the agency’s economic crime command, told The Times he was alarmed by the number of homes registered to complex offshore corporations, some of which have been bought with laundered money.

U.K. lenders sign up for first-time buyer Isa: Six of the U.K.’s largest lenders have signed up for the government’s latest scheme to subsidise home ownership, scheduled to launch on 1st December. The Help to Buy individual savings account (Isa), first announced in the Chancellor’s March Budget, will subsidise first-time buyers saving for a deposit with £1 for every £4 put aside.

BP takes last $10 billion hit on Gulf oil spill: BP WILL take a $10 billion hit this week in what the FTSE 100 oil giant hopes will be the last big penalty for its Gulf of Mexico oil spill in 2010. The write-down, to be revealed in the £72 billion company’s second-quarter results, will be taken after it agreed an $18.7 billion payout a fortnight ago to settle all remaining claims with the federal government and five southern American states. The settlement brings the total cost of the disaster to $54 billion.

Last call for rock-bottom mortgage deals: Banks are under growing financial pressure to raise fixed rates because the wholesale cost of money used to price these loans has jumped higher over the past month, according to brokers. The cost of funding two, three and five-year deals has jumped by 10 percentage points since the middle of last month as markets have begun pricing in the first increase in the Bank of England base rate.

London first-time buyers pay most using help schemes: Homebuyers in the capital using various affordable housing schemes have to pay the highest price for a home in the country, according to Halifax. At the same time, according to a report by the building society, buyers in London get the biggest discount compared with their counterparts in the capital who do not receive help trying to get on to the property ladder.

Oil prices ended lower last week, after the Energy Information Administration announced that US crude oil stockpiles registered an unexpected increase in the week ended 17 July. Meanwhile, speculation that Iran would soon flood the oil market pressured oil prices as well. Brent crude oil prices fell 4.3% to $54.620/barrel

Cuadrilla set to appeal fracking refusal decision: Shale gas company Cuadrilla said that it will not back down in its attempt to kick-start the U.K.’s fracking industry.

Howden Joinery falls on cost concerns: Howden Joinery is enjoying strong trading as a U.K. housing market recovery boosts home improvements, but rising costs took the shine off results sending shares more than 8% lower. The kitchen specialist has benefited from people who can’t move up the housing ladder, deciding to stay put and upgrade their existing home. Sales increased by 11% to £483 million during the 24 weeks to June 13 when compared to the same period last year. It was a strong sales performance but investors were more concerned by rising costs eating into profits. Costs were up £28.8 million, or 13%, to £246.6 million, increasing at a higher rate than sales. The FTSE 250-listed kitchen and joinery group is still a successful and growing company. Shares in Howden Joinery have enjoyed a fantastic run, soaring from lows of 13p in early 2009. The shares are now trading on 20 times the forecast earnings per share. Market consensus is for full year The impact rising interest rates on the housing market and consumers is unknown. As an investor, Questor would resisting buying at these prices. Howden Joinery at 474.8p-43.2p. Questor says “Hold”.

Oil and gas crunch pushes Russia closer to fiscal crisis: Russia has fallen into full-blown depression and faces a mounting fiscal crisis as oil and gas revenues plummet

Aberdeen Asset Management retreats to its granite bunker: Not Aberdeen Asset Management or its Boss, Martin Gilbert. For all that the Aberdonian does a good line in rueful, easy-going charm, he is in defensive mode. Unsurprising, given that in three months £10 billion has been withdrawn from its funds, compounding a difficult two years. Mr Gilbert says emerging markets were painful. He is a master of deflecting attention to where he wants it to go, but the outflows from Scottish Widows Investment Partnership, the fixed income and passive equity fund Manager bought two years ago to spread the range, were pretty bad too. Last month, the business — which traces its roots to the Granite City but is in fact based in London’s Bow Lane — issued £100 million in convertible preference shares to Mitsubishi UFJ and bought back £100 million of ordinary equity. “It is all about controlling the things we can control — that is, costs — while we wait for markets to come round,” says Mr Gilbert, who never forgets how close Aberdeen came to going bust a decade ago during the split capital investment trust scandal.

Interest rate rise may cap heavy house price growth: Average annual house price growth in Britain’s big cities is expected to reach double digits again by the end of the year — unless there is a rate rise.

UK retail sales advanced less than expected in June Retail sales recorded a rise of 4.00% on a YoY basis in June, in the UK, less than market expectations for a rise of 4.80%. In the previous month, retail sales had registered a revised rise of 4.70%. UK retail sales unexpectedly fell in June On a monthly basis, retail sales recorded an unexpected drop of 0.20% in June, in the UK, less than market expectations for a rise of 0.40%. Retail sales had advanced by a revised 0.30% in the prior month.

At 0330GMT today, Brent crude oil one month futures contract is trading 0.45% or $0.25 higher at $55.52 per barrel. Yesterday, the contract declined 1.53% or $0.86, to settle at its lowest level since April 2 at $55.27 per barrel, as the persistent glut in oil supplies continued to drag the crude oil prices down