UK property prices continue to recover.

The dwindling supply of property and an improving market confidence have combined to boost the average UK house price, with the price climbing to £156,100 up 0.2% from August but remaining 5.6% below the level of September 2008. In August, the average house price bumped 0.1% from July and 6.7% from the year before. Questions still remain as to whether the recent surge in activity will continue, despite the talk of general improvement in property and equities.

According to the International Monetary Fund (IMF), the global economy has begun to expand again and financial conditions have improved significantly. However, in their most recent World Economic Outlook, the IMF has forecast that the pace of recovery is expected to be slow and unemployment is liable to remain at high levels for a long time. The IMF has cut their previously pessimistic forecast of the amount that banks are likely to lose in bad loans and investments. The revised total for the period between 2007 and 2010 is now $3.4 trillion, down from its previous estimate of $4 trillion. The reduction is attributed to the improved outlook for the global economy.

The squeeze on government finances will be so tight that outsourcing of catering services in the public sector is likely to rise sharply and that catering giant Compass are likely to benefit. A spokesman for the company forecast that mounting pressure on public bodies to cut spending has provided an opportunity for the industry to expand. Compass, the world’s largest industrial catering company have already enjoyed solid performances in its education, healthcare and defence divisions had helped to offset weakness in more discretionary sectors. In a recent trading update, the company announced that rising unemployment had hurt turnover at both their business and industry and sports and leisure divisions.

Despite a recent increase in sales, men’s formal wear retailer Moss Bros failed to prevent first-half losses, that increased by more than 35 percent. Moss Bros., who also own the Hugo Boss brand, were encouraged by increased sales over the last two months, after they had fallen by 2.6 per cent in the six months to the end of July. First-half revenue dipped from £61.1 million to £60.8 million while the company’s pre-tax loss widened from £2.2 million to £3 million.

It appears that with the completion of a debt-for-equity swap with its lender HSBC, high street camera retailing chain, Jessops, have succeeded in staving off insolvency The agreement, which will protect 2,000 jobs in Jessop’s 115 stores in the UK and Ireland, will see investors share a one-off payment of £100,000, equating to five per cent of their current estimated market value. Jessops arrived at the understanding with HSBC after some of its agreements coming in to the Christmas trading period were cast into doubt by the lack of certainty over its future.

The FTSE 100 closed down 25.82 points at 5,133.9, wrapping up the third quarter having risen by 21 percent, making for the largest quarterly gain in its history. Meanwhile the FTSE 250 fell back 62.21 points to 9,153.76 on the day’s trading. During the third quarter, the FTSE 250 has also risen, this time by more than 18 percent.

The pound was still steadily rising against the major currencies on yesterday’s trading. Sterling advanced against the dollar, rising to $1.6015 after an above-forecast jump in September UK consumer confidence.

• Pound/US dollar 1.6015
• Pound/Euro 1.10996
• Pound/Japanese Yen 143.953
• Pound/Swiss Franc 1.666

The Dow Jones Industrial Average continued to weaken on Wednesday’s trading, dropping 29.92 points to close on 9,712.28. The NASDAQ remained stable, dropping just 7.19 points to 2122.42.

As the effects of the recession continue to be felt, the unemployment rate across the Eurozone has again risen. The seasonally adjusted rate for August rose to 9.6%, compared with 9.5% in the previous month according to official figures recently released, with the number of jobseekers in the Eurozone reaching 15.2 million. Economists insist that unemployment rates are liable to increase, despite the fact that most of the economies in the region are moving out of the recession.

Crude oil prices rose by more than $1 a barrel ahead of the latest US inventories data while gold regained the $1,000 level and base metals staged a broad advance as sentiment towards commodity markets found support from renewed dollar weakness.

financial

• 53 Pounds in 9 weeks... 4.5 Pounds this Week Wow... back on track!  After 2 weeks of relatively small...
• The First Divestment: NMDC Update: As per current Ministry of Steel meetings, the NMDC...
• Bear fund managers warn against short sales Here's an interesting article from Bloomberg. I don't agree with...

Tags: Banking, British Economy, British Pound, catering company, Crude oil, Currency, defence, Dow Jones, Economics, Economy, education, Eurozone, Financial News, FTSE, healthcare, HSBC, Hugo Boss, IMF, International Monetary Fund, Jessops, Money, Moss Bros, NASDAQ, Property Prices, Recession, UK Banks, UK Economy, UK Recession, World Economic Outlook