Post Tagged with: "Britain"
Big Mac Index: Europe overvalued, Asia undervalued
The Economist released its remarkably telling Big Mac Index this past weekend. The index looks at the relative cost of Big Mac in various countries to gauge how over- or undervalued the currencies in those locales are. Judging from this Index, there are some monster distortions in the currency markets right now. The numbers marked
The RBS and HBOS sinkholes
This comes via the Telegraph: UK Financial Investments (UKFI) said in its annual report that its loss on the two stakes – 70pc of RBS and 43pc of Lloyds Banking Group – had reached £10.9bn at the end of June. The losses, which are not yet realised, have been wracked up since Gordon Brown was
Nationwide: guidance on its 125% LTV product
This comes via the Nationwide website: As a responsible lender which aims to support its borrowers Nationwide has responded to market conditions and made an option available which enables some existing customers in negative equity to move home. This is not available to new customers. The maximum LTV for existing customers taking a new deal
Nationwide brings back 125% LTV mortgages
The Nationwide, the world’s largest building society, is now bringing back the dreaded 125% mortgage. While the lender claims these mortgages are a “niche product” designed for customers of Nationwide in negative equity, the Financial Services Authority (FSA) is looking to ban this type of lending. From the BBC: It will only be available to
UK house prices up for third time in fourth month
On the same day that the worst economic growth numbers in the U.K. in 51 years, we also get some news that the British economy may be stabilising. Well, at least house prices seem to be stabilising as Nationwide reported a 0.9% increase in house prices in UK June. That is the third rise in
Magna is going to get GM Europe
You probably saw in my links that Fiat had bowed out because of German government demands. The Magna story also comes via the BBC: Canadian car parts maker Magna International is the preferred bidder for GM Europe, owner of Opel and Vauxhall, Lord Mandelson has said. The UK business secretary said a deal between Magna
UK: Canary in the coalmine or light at the end of the tunnel?
Marshall Auerback here with some thoughts on the UK given the recent stellar performance of Sterling. “The Conservative belief that there is some law of nature which prevents men from being employed, that it is ‘rash’ to employ men, and that it is financially ‘sound’ to maintain a tenth of the population in idleness for
Nationwide: U.K. house prices rise for second time in three months
Is the housing market in the U.K. bottoming? Many pundits are talking as if it is and now we get the Nationwide data for May 2009 which shows a second rise in three months. I am sceptical that we are at a bottom, so let’s see what the Halifax data say. Fionnuala Earley has moved
U.K.’s Nationwide releases robust earnings and capital report
On the face of it, Nationwide’s earnings report looks extremely good: 15% Tier 1 Capital, Pre-tax profit of nearly £400 million. Given this financial institution’s leverage to the residential housing market, their results stand in stark contrast to the likes of Chelsea, which was downgraded by Fitch last week with four other U.K. building societies.
Nationwide: U.K. house prices resume their descent
After a blip in the data last month, Nationwide is reporting that U.K. house prices have resumed their fall. However, for the second month in a row, the annual price fall has slowed. In March, the fall was 15.7%. This month we see only 15.0% compared to prices in April 2008. Fionnuala Earley, the Nationwide’s
Britain gets deflation
An increasing number of countries are recording negative year-on-year inflation numbers. I reported first on Spain, then on Switzerland. Add the U.K. to the list as well. Deflation returned to Britain for the first time in nearly five decades last month as prices measured by the retail price index (RPI) were lower than the same
House prices in the U.K. up for first time since Oct 2007
House prices increased in March in the U.K. according to Nationwide Building Society. Below is what Nationwide’s Chief Economist Fionnuala Earley had to say about this surprise good news: “Spring brought a surprise bounce to house prices in March. The price of a typical house increased for the first time since October 2007, rising by