News summary, Friday 25th October

Economics

Bank of England governor Mark Carney signalled the end of ‘banker-bashing’ yesterday, with a dramatic speech which marks a U-turn from previous governor Mervyn King’s hostility to the banking sector. Carney said that he is comfortable for Britain to develop an enormous banking sector over the coming decades, without threatening the wider economy. In his speech, Carney said that UK banks’ assets could exceed GDP by 9 times by 2050, if the capital keeps its current share of global banking. He also pledged that properly managed and regulated banks would be able to secure more help at lower cost from Threadneedle Street if they got into financial trouble. (FT, p.1, City AM, Tim Wallace, Allister Heath, p.1-2, Times Business p.60, Guardian, p.32).  

 

Property

London house prices are set to soar by 35 per cent over the next 5 years, according to new research from CBRE. (City AM, Michael Bird, p.1) London’s prices are set to accelerate at more than three times the speed seen in the north east of England and Scotland, and twice as fast as in the UK generally. Zoopla also revealed that homeowner confidence has spiked, reaching a four-year high across the country. Sentiment is highest in London, with nearly 97 per cent of homeowners predicting that prices will rise in the year ahead. (City AM, p.1)

 

Personal Finance

Health chiefs are urging people to keep the heating on this winter to reduce the winter death toll, despite rising energy prices. Public Health England suggests that living rooms should be kept at 21 degrees Celsius, with the rest of the house heated to 18 degrees Celsius – reporting that, above this and you may waste your money; below this and you may risk your health. The agency also said that lots of thin layers are better than one thick jumper, and that people should consider wearing slippers. (Times, p.2, Telegraph, p.1-2, Daily Mail, p.30)

 

Recruitment

British workers mentally clock off for the weekend at 2.39pm on Fridays, according to a new study. The British Airways research found that most of us wind down long before home time with 59 per cent admitting they take Fridays much easier than the rest of the week. 61 per cent said they wind down earlier on a Friday because they work over their contracted hours in the week and insist their boss still gets ‘value for money’. (Telegraph, p.9, Daily Mail, p.32)

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