The Mail, The Times and Telegraph report on bonuses at Goldman Sachs – with The Times revealing that bankers are set to share $8 billion in pay, bonuses and benefits for the first half of the year. The Mail reports that bankers bonuses will ‘soar’ by 10 per cent, and they have ‘raked in’ on average £170,000 in those six months (Mail, page 2 and Times page 34, Telegraph, page B5).
Recruitment and HR:
According to the OECD (Organisation for Economic Co-operation and Development), unemployment is set to remain high in developed countries next year, with young people and the low-skilled hit hardest. The annual employment outlook from the organisation predicts unemployment to grow to 11.2 per cent in Italy and close to 28 per cent in Spain and Greece. The UK rate is forecast to rise slightly from 7.7 per cent to 7.8. (FT, page 4 – Brian Groom)
Figures from LSL Property Services show that house prices north of the border are up by £2,283 since December 2012 and have reached an average of £143,809. The estate agent said that process in Aberdeen hit a record high in May (The Times, p34 – Need to Know).
The Daily Express and Telegraph report on the ONS house price stats, highlighting that prices are rising in every part of the UK with a typical three-bed semi now selling for £10,000 more than last year. In the Express David Newnes of LSL comments that higher house prices reflect healthier levels of activity in the housing market, which are their most dynamic since the financial crisis. (Express, page 2 Sarah O’Grady, Telegraph, page B3 Emma Rowley).
Projections by rating agency Moody’s show that the financial instruments blamed for sparking the global economic crisis are set to default in far greater numbers as hard-up UK homeowners fail to meet their mortgage repayment. UK residential mortgage-backed securities – which pool revenue streams from home loans – backed by interest-only mortgages will be disproportionately hit by rising interest rates over the next 20 years. (FT, page 26 – Christopher Thompson).
Latest figures from the ONS reveal that fewer workers are saving for retirement than at any time since records began, with just 46% of UK employees saving to a pensions scheme in 2012, compared to more than 55% a decade ago (Guardian, page 23 Patrick Collinson).