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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/nov/23/estate-agents-shares-slump-after-government-fees-clampdown-business-live
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| Estate agents shares slump after government fees clampdown - business live | Estate agents shares slump after government fees clampdown - business live |
| (35 minutes later) | |
| 9.21am GMT | |
| 09:21 | |
| It is uncertain whether the positive eurozone manufacturing performance will continue, says Paul Sirani, chief market analyst at Xtrade: | |
| Having continued to post weaker than expected figures throughout the first half of 2016, today’s manufacturing numbers add to the brighter picture for the eurozone’s economic conditions in the last six months. | |
| Eurozone manufacturing has remained surprisingly steady since June’s Brexit vote, with many countries showing signs of growth. Whether this can be maintained when the UK finally triggers Article 50 and begins to execute its formal withdrawal is up for debate. | |
| Concerns in the region also linger with German expansion slowing down. Any further grumblings from the economic power house of Europe would spell tough times ahead for ECB president Mario Draghi. | |
| Updated | |
| at 9.21am GMT | |
| 9.12am GMT | |
| 09:12 | |
| IHS Markit chief business economist Chris Williamson said: | |
| The preliminary PMI results for November indicate the sharpest monthly increase in business activity so far this year, with plenty of signs that growth will continue to accelerate. | |
| The PMI readings so far for the fourth quarter point to GDP expanding 0.4%, led by a rebound in German growth to 0.5%. France is also seen to be enjoying its best spell since the start of the year, with the PMIs signalling GDP growth of 0.2-0.3% in the fourth quarter. | |
| What’s especially encouraging to see is the build- up of uncompleted orders, which showed the largest rise since May 2011. Increasing numbers of firms are boosting capacity as a result of the order book backlog, leading to the joint-largest increase in employment seen this side of the global financial crisis. | |
| ECB policymakers will also be pleased to see inflationary pressures are intensifying steadily. Average prices charged for good and services showed the biggest rise for over five years, albeit with the rate of increase being very modest. However, with indicators such as rising backlogs of work and longer supplier delivery times suggesting demand is exceeding supply, price pressures look set to intensify further in coming months. | |
| 9.09am GMT | |
| 09:09 | |
| Eurozone business activity highest this year | |
| Overall business activity in the Eurozone was at its best level since December 2015, according to the latest figures. | |
| IHS Markit’s preliminary composite purchasing managers index came in at 53.8, u from 52.9 in October. | |
| Again it was a strong performance from the service sector which gave a boost to the figures. The services PMI was 54.1 in November, up from 52.8 and better than the expected 53. | |
| #Euro Markit Services PMI Flash at 54.1 https://t.co/rhkAL59yH7 pic.twitter.com/NwqBeVfs3g | |
| Manufacturing edged up from 53.5 in October to 53.7, higher than the forecast 53.3. | |
| #Euro Markit Manufacturing PMI Flash at 53.7 https://t.co/8LmfDdIAVS pic.twitter.com/dDycwHPJeG | |
| 9.01am GMT | |
| 09:01 | |
| The latest hit to estate agency shares follows a poor performance since the Brexit vote, says Neil Wilson, market analyst at ETX Capital: | |
| News of a ban on charging fees to tenants comes as a hammer blow to embattled estate agents. Shares in estate agents opened sharply lower this morning as the government plans to ban upfront fees charged by letting agents... | |
| Passing on the cost to landlords could drive down fees by improving competition, although estate agents claim they make no money from fees. | |
| Estate agents have suffered since the Brexit vote – shares in Foxtons are still trading down around 30% from their pre-referendum level amid falling client activity. Countrywide stock is now worth a third of what it was in May 2015. | |
| 8.53am GMT | |
| 08:53 | |
| Nov. dip in the German #PMI was slightly disappointing. For now, though, it still points to a renewed pick-up in GDP growth after a weak Q3. pic.twitter.com/Xg6AoG6VjP | |
| 8.40am GMT | 8.40am GMT |
| 08:40 | 08:40 |
| German manufacturing slips but services edge higher | German manufacturing slips but services edge higher |
| As with the French preliminary PMIs for November, so for Germany, with manufacturing disappointing but services performing better than expected. | As with the French preliminary PMIs for November, so for Germany, with manufacturing disappointing but services performing better than expected. |
| The manufacturing PMI came in at 54.4, down from 55 in October and a two month low. | The manufacturing PMI came in at 54.4, down from 55 in October and a two month low. |
| But services rose from 54.2 in October to 55, a six month high. | But services rose from 54.2 in October to 55, a six month high. |
| The Composite output index edged down from 55.1 in October to 54.9. | The Composite output index edged down from 55.1 in October to 54.9. |
| IHS Markit economist Oliver Kolodseike said: | IHS Markit economist Oliver Kolodseike said: |
| Although the PMI failed to further build on October’s ten-month high, the latest survey results highlight that Germany’s private sector economy remains in good shape in November. Moreover, the data suggest that economic growth has picked up from the meagre 0.2% rate in the third quarter. | Although the PMI failed to further build on October’s ten-month high, the latest survey results highlight that Germany’s private sector economy remains in good shape in November. Moreover, the data suggest that economic growth has picked up from the meagre 0.2% rate in the third quarter. |
| The survey data also signal that a healthy labour market remains one of the mainstays of Germany’s economic upturn. With new order intakes rising sharply, the expansion in workforce numbers was insufficient to prevent a further build-up of unfinished business, however. That said, rising backlogs generally lead to higher future output and it is therefore likely that companies will remain busy in coming months. | The survey data also signal that a healthy labour market remains one of the mainstays of Germany’s economic upturn. With new order intakes rising sharply, the expansion in workforce numbers was insufficient to prevent a further build-up of unfinished business, however. That said, rising backlogs generally lead to higher future output and it is therefore likely that companies will remain busy in coming months. |
| Moreover, there are clear signs that price pressures are intensifying further. Input cost inflation reached its highest level in over four-and-a- half years and output prices were raised further which should be welcome news for ECB policymakers who are desperately trying to boost inflation in the region. | Moreover, there are clear signs that price pressures are intensifying further. Input cost inflation reached its highest level in over four-and-a- half years and output prices were raised further which should be welcome news for ECB policymakers who are desperately trying to boost inflation in the region. |
| 8.32am GMT | 8.32am GMT |
| 08:32 | 08:32 |
| European markets open mixed | European markets open mixed |
| Despite Wall Street hitting yet new records - the Dow Jones Industrial Average closed above 19,000 for the first time - European markets seem reluctant to follow suit. | Despite Wall Street hitting yet new records - the Dow Jones Industrial Average closed above 19,000 for the first time - European markets seem reluctant to follow suit. |
| The FTSE 100 is certainly taking its cue from the US, climbing 0.67%, with mining shares once more among the gainers. | The FTSE 100 is certainly taking its cue from the US, climbing 0.67%, with mining shares once more among the gainers. |
| But Germany’s Dax has dipped 0.075 and France’s Cac is currently down 0.03%. | But Germany’s Dax has dipped 0.075 and France’s Cac is currently down 0.03%. |
| 8.19am GMT | 8.19am GMT |
| 08:19 | 08:19 |
| Agenda: Estate agency shares slump, while markets await eurozone update | Agenda: Estate agency shares slump, while markets await eurozone update |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| News that the UK government will ban fees charged by estate agents to cover the supposed administrative costs of families renting their homes has seen shares in the sector slump. | News that the UK government will ban fees charged by estate agents to cover the supposed administrative costs of families renting their homes has seen shares in the sector slump. |
| Countrywide is down 6%, Foxtons has fallen 9% and Savills has slipped 1%. Purplebricks has lost more than 4%. | Countrywide is down 6%, Foxtons has fallen 9% and Savills has slipped 1%. Purplebricks has lost more than 4%. |
| Meanwhile on a busy day for economic news, we are due to get the latest snapshot of activity in the eurozone, with the first estimates of manufacturing and services for November. | Meanwhile on a busy day for economic news, we are due to get the latest snapshot of activity in the eurozone, with the first estimates of manufacturing and services for November. |
| France is first out of the blocks, with a better than expected service sector figure helping make up for a dip in manufacturing data. The service sector index rose to a two month high of 52.6 in November from 51.4 the previous month, and better than the 51.9 expected. | France is first out of the blocks, with a better than expected service sector figure helping make up for a dip in manufacturing data. The service sector index rose to a two month high of 52.6 in November from 51.4 the previous month, and better than the 51.9 expected. |
| But the manufacturing index edged down to 51.5 in November, down from 51.8 in October and compared to a forecast of 51.4. | But the manufacturing index edged down to 51.5 in November, down from 51.8 in October and compared to a forecast of 51.4. |
| In the US there are initial jobless claims, manufacturing PMIs and consumer confidence figures.We are also on the lookout for results from Philip Green’s Arcadia group, and there are also updates from Thomas Cook and United Utilities.Oh yes, and there is also the small matter of the rest of the Autumn Statement, which is being covered separately in our politics live blog: | In the US there are initial jobless claims, manufacturing PMIs and consumer confidence figures.We are also on the lookout for results from Philip Green’s Arcadia group, and there are also updates from Thomas Cook and United Utilities.Oh yes, and there is also the small matter of the rest of the Autumn Statement, which is being covered separately in our politics live blog: |
| Updated | Updated |
| at 8.43am GMT | at 8.43am GMT |