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ShareCast News) - The number of mortgages approved by British banks in September fell to its lowest since May, data released on Monday showed. According to the latest figures published by the British Bankers' Association (BBA), said mortgage approvals for house purchases fell to a four-month low of 44,489 in September from 46,567, although they remained up 14% year-on-year. "Borrowing figures in the mortgage market remain strong as customers take advantage of record low interest rates. In particular, remortgaging remains high as savvy customers secure attractive deals ahead of a possible rate rise," said BBA chief economist Richard Woolhouse. Meanwhile, net credit card lending and lending for personal loans and overdrafts both declined from August to September, the report added. "The dip in mortgage approvals in September could possibly reflect recent modestly reduced expectations of a near-term rise in interest rates," said Howard Archer, chief UK and European economist at IHS Global Insight. "It is also possible that lower mortgage approvals in September is a sign that housing market activity is being constrained by a shortage of properties on the market."
The opportunity to buy a home in England and Wales is at its best in 13 years amid a decline in the cost of essentials, a drop in mortgage payments and a rise in average incomes over the past 12 months. It improved for the third quarter in a row in the three months to June and is 40% up on 2007, according to Hamptons International's latest ability-to-buy index, which measures changes in the cost of living, interest payments and house prices. - The Times
BP and Shell slip up on Crude bottom: Royal Dutch Shell and BP are set to blame the weak oil price for dramatic falls in third quarter pretax profits and revenues, analysts say. The price of crude oil has nearly halved over the past 12 months because of a Saudi Arabia-led effort by the OPEC cartel to crush competition from U.S. shale oil operators
Asset Managers suffer as oil funds withdraw cash: Global asset Managers are facing a double hit to their fees, as sovereign wealth funds withdraw billions to support their oil-dependent economies-and switch to a cheaper in-house investment approach.
Oil traders threaten London market exit over EU ‘position limits’: Some of the world’s largest oil traders are threatening to pull their business from London’s derivative exchange because of tough new European rules that would place limits on their ability to manage price swings. Oil majors including BP and Royal Dutch Shell, and large independent traders such as Trafigura, may be unable to hedge their financial exposures to the contents of more than a handful of oil tankers under current proposals from the European Commission
At 0430GMT today, Brent crude oil one month futures contract is trading 0.27% or $0.13 higher at $48.12 per barrel. On Friday, the contract declined 0.19% or $0.09, to settle at $47.99 per barrel. Meanwhile, Baker Hughes reported that the active US oil rig count dropped by 1 to reach 594 in the previous week.
The increase in stamp duty on more expensive homes has led to a sharp drop in sales of properties for at least £1m, two reports confirmed. The UK total fell by 11% in the first half of 2015 compared with the same time last year, says Lloyds Bank. LonRes research for the Financial Times found the number of London homes sold for between £1m and £2m fell 22.5 per cent from July to September, against the same time in 2014. - Sunday Telegraph
Oil profits set to plummet by billions: BP and Shell hit as prices plunge and exploration venture collapses: BP and Shell will this week report billions of pounds wiped off their profits as the effect of the low oil price coupled with expensive exploration failures hammer two of Britain’s biggest companies.
Shell looks to the skies and sees a clean solution to oil dilemma: A company backed by Royal Dutch Shell has begun work on one of the world’s biggest solar power plants, as part of a project to use the sun’s rays to suck crude oil out of the ground in Oman. GlassPoint Solar, an American company funded by Shell, is set to break ground on the new solar farm at the Amal oilfield in southern Oman this month. It has been commissioned by Petroleum Development Oman, the country’s biggest oil producer, which is one-third owned by Shell.
BP reached a strategic agreement with China National Petroleum Corp. and China Huadian Corp. to expand its business in mainland and adding billions of dollars to its account
Brent oil prices dropped last week, after the Energy Information Administration reported that the US crude inventories rose 8.0 million barrels for the week ended 16 October 2015. Brent crude oil prices fell 4.9% to $47.99/barrel.
Avoid Foxtons as shares look overvalued: Shares in Foxtons [LON:FOXT] fell by more than 6% after the London-focused estate agent said high prices and stamp duty changes resulted in house purchases in the centre of the capital fell to record lows. The company said that uncertainty around the general election also knocked property sales in London. The number of sales completing in the centre of London is currently 40% below historical averages, according to broker Cannacord Genuity. Foxtons said the housing market has been slow to recover following a sharp downturn in the second half of last year. Foxtons has previously managed to offset the sluggish market for property sales with steady growth from the lettings market. The problem for anyone considering Foxtons’ shares is that investors are being asked to pay a high rating for the shares, which can only really be supported if the company is growing rapidly. However, there are many signs London is in the latter stages of a property bubble; any growth from here may be hard to come by. Foxtons at 203p-18½p. Questor says “Avoid
Travis Perkins warns on growth as homeowners shy away from DIY: Travis Perkins warned that earnings growth this year would be at the lower end of forecasts as a slowdown in the housing market meant that homeowners spent less on renovating their homes.
London property prices turn around to bite Foxtons: Foxtons’ shares tumbled this morning after it reported that “historically low levels” of activity in central London had hit sales commissions
Sales rise as household income hits six-year high: Families have more money to spend after taxes and buying essentials than they have had in six years, helping sales at the tills to grow last month by the biggest amount in nearly two years. Prospective buyers optimistic as wages rise: Mortgage lending is having its best spell since 2008 as negative inflation and rising wages leave would-be buyers confident enough to take the plunge into the property market.
At 0330GMT today, Brent crude oil one month futures contract is trading 0.56% or $0.27 higher at $48.35 per barrel. Yesterday, the contract climbed 0.48% or $0.23, to settle at $48.08 per barrel, amid bargain hunting.
Foxtons said that the number of sales in the prime central London property market was taking time to recover due to price rises and increases in a property tax.The company, which saw its turnover rise 8.8% to £43.5m in the three months to September 30th, said however it was in a strong position to benefit from growth in outer London areas.
Oil prices edged up, gaining support from a weaker dollar to hold above a three-week low hit in the previous session after a bigger-than-expected build in U.S. crude stocks added to concerns of a global oil glut.
Independent Oil and Gas aims to drill well East of Shetland after stock market fundraising: North Sea- focused Independent Oil and Gas has won further backing from investors keeping alive its hopes of developing a find off Shetland
Oil price crunch could leave Middle East's export giants out of cash within five years, warns IMF: Growing conflict and a vicious oil sell-off have left government budgets in a precarious state