News Headlines – Friday 6th September

Michael Gove has spoken out claiming campaigners against the planning reforms are stopping children growing tall by forcing them to live in smaller homes with shared bedrooms. He also added that keeping the planning restrictions would have stunted educational growth for many. Telegraph, p1

The Times suggests that all the best people want to display masonry in their homes. Actors like Oliver Thornton and One Direction star Harry Styles have both been attracted by exposed brick. Matt Stanway, sales manager at Urban Spaces believes properties with exposed brick have the edge in terms of desirability. The more loft features – concrete ceilings wooden flooring, steel factory windows – the better. Times B&M, p5

Number of first time buyers has swelled according LSL Property Services. There were 26,100 people buying homes for the first time in July, up 8,000 through the year. Information from Connells Survey and Valuation added to LSL’s figures, suggesting that August had seen 40% more first time buyers than the same month the previous year. City AM, p7; Times, p47; Guardian, p13; FT, p3

Investors, buoyed by the apparent momentum of the economy, expect the first rise in interest rates to come almost two years earlier than the Bank of England indicated last week. Market interest rate expectations suggest the Bank’s Monetary Policy Committee will disregard its new forward guidance and raise the rate in the final months of 2014 or beginning of 2015. Financial Times, p1

New rules to limit pay in the financial sector are being unnecessarily rushed according to the British Bankers’ Association. The lobby group recommends the rules be postponed until 2015. In its submission to the European Banking Authority, the BBA said the EU’s decision to equate earnings with those considered to be a material risk taker meant many relatively junior staff faced having their pay curbed. Telegraph, B1

The European Commission in expected to publish details of new legislation which would ban mobile roaming charges. From 2014, customers would be able to keep costs down by selecting another provider for calls, texts and data while travelling if their own network charges extra for service abroad. Guardian, p31

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Paper Summary – Tuesday 26th February 2013

Economics
Stock markets around the world are rapidly digesting fresh uncertainty in the Eurozone.  Italy is staring down the barrel of an election tie – with Silvio Berlusconi on one side, an ex-communist on the other – and a professional comedian in the middle.

Personal Finance
In lending news, the Telegraph’s Harry Wilson reports that the British Bankers’ Association has approved giving up its involvement in operating the Libor rate after a report recommended the trade body be stripped of its oversight role.  The paper also looks at BBA’s lack-lustre lending and their excuse, a cold January.  It’s a different story in the bridging industry, and the Telegraph quotes the response of the Chairman of short-term secured lender West One Loans, Duncan Kreeger – “weather is for wimps” (City Diary).  Meanwhile, City AM reports the Chancellor has announced more direct intervention in the running of RBS – with direct involvement by the Treasury (rather than UKFI) in the strategic allocation of resources – as well as the company’s overall lending strategy.

Property
The Sun says house builder Persimmon has revealed record order books, and annual profits up 54% to £225 million, with a particularly strong showing in the North of England.

Recruitment & Employment
Graham Hiscott, writing in the Daily Mirror says British Gas is planning to hire 1,000 young people over the next three years as part of a drive towards energy efficiency.  The energy giant is expecting a public backlash when it announces annual profits tomorrow, believed to be around £600m, with parent company Centrica also making nearly £2.8bn.