Banks

RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

Continue Reading

Currencies

Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

Continue Reading

Financial

Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

Continue Reading

Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

Continue Reading

Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

Continue Reading

Categorized | Property

UK credit signals: flashing orange


Posted on September 26, 2016

A couple look at houses for sale in the window of William H Brown estate agents in this arranged photograph in Chelmsford, U.K., on Tuesday, Dec. 15, 2015. U.K. asking prices rose an annual 7.4 percent in December amid a continuing shortage of homes for sale, according to Rightmove. Photographer: Chris Ratcliffe/Bloomberg©Bloomberg

    The UK citizen is a hydra-headed beast showing a different face depending on the matter in question. As a shopper, it is keeping the economy afloat, defying gloomy post-referendum auguries from the business class. Robust retail sales are exhibit A. On Monday came exhibit B, showing growing consumer credit from the British Bankers’ Association.

    As a would-be homeowner, the mood is more cautious. Mortgage approvals have fallen three months on the trot to a 19-month low. In part, this reflects issues beyond Brexit, not least sheer affordability; the Royal Institute of Chartered Surveyors found bearish sentiment strongest in London, the priciest location. But consumer and mortgage lender may face different ways a while longer. A devil-may-care attitude can buoy spending while Brexit is still being worked out. It sits uneasily with buying a house, which demands borrower and lender look more than a few weeks ahead.

    Email the Lex team at lex@ft.com