(Bloomberg) -- Bad news for homeowners this morning as new data shows house prices are falling by the fastest pace since June 2020, as soaring borrowing costs cooled demand. The data from Nationwide Building Society said home prices fell 1.4% in November, which putting the pandemic era aside, is the fastest drop since the global financial crisis more than a decade ago. It is significantly faster than the 0.4% fall economists had expected. Chaotic market conditions, meanwhile, have also impacted financial brokers like AJ Bell and Peel Hunt, with the latter’s first-half profit after tax down 100%.
Here’s the key business news from London this morning.
In The City
ITM Power Plc: The hydrogen energy development company’s CEO Graham Cooley resigned with effect from today.
- The company delayed its planned trading update to give its new CEO Dennis Schulz time to prepare
AJ Bell Plc: The investing platform’s profit before tax margin fell year on year after it cut costs in order to entice customers onto the platform.
- The assets under administration on its platform fell 2% year on year after negative market movements outweighed the benefit of net inflows
Peel Hunt Ltd: The stockbroker says equity capital markets activity has been “at a multi-decade low” and the outlook for the sector remains “challenging”.
- The company’s revenue in the first half of the year is down 42% while its profit after tax came down to zero
Virgin Money UK Plc: The challenger bank will work through the impending recession to increase shareholder returns, CEO David Duffy said in a Bloomberg TV interview.
- The lender has been telling shareholders in Australia this week it will improve return on tangible equity to 11% in the coming months, allowing it to disburse a 10 pence dividend and carry out further buybacks
The political pressure on Rishi Sunak to get on with a promised bonfire of European laws never seems to cease, says Bloomberg Opinion’s Paul J. Davies. “The pledge is a sacred totem to the influential right-wing of the ruling Conservative Party,” Davies writes.
How much of a difference will the government’s plan to relax the ring-fencing of banks make to London's competitiveness? Listen to the latest In The City podcast episode:
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Protecting tenants in social housing from the full effects of inflation is set to cost £3.2 billion in lost income for England’s public sector landlords, according to Moody’s Investors Service Inc.
Edinburgh-based fund manager Abrdn Plc will re-enter the FTSE 100 next month after being demoted in August, alongside Lloyd’s of London insurer Beazley Plc and mining machinery firm The Weir Group Plc.
The Bank of England’s rate setters will be keeping a close eye on November’s Decision Maker Panel survey, which is due today. Bloomberg Economics reckons policymakers will pay particular attention to further signs that price pressures are easing, after the October survey showed a material fall in medium-term inflation expectations.
For a news fix when the day is done, sign up to The Readout with Allegra Stratton, to make sense of the day’s events.
--With assistance from Kwaku Gyasi.
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