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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/nov/13/trade-war-threat-trump-markets-inflation-uk-us-eurozone-business-live
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| UK inflation hits three-year low; London house prices fall again – business live | UK inflation hits three-year low; London house prices fall again – business live |
| (about 1 hour later) | |
| Rolling coverage of the latest economic and financial news, including the latest UK inflation and house price data | Rolling coverage of the latest economic and financial news, including the latest UK inflation and house price data |
| Finally, after a weak start the FTSE 100 has ended the day little changed. | |
| The blue-chip index has closed 10 points lower at 7,355. | |
| While most eyes are on the impeachment hearings which just began, Fed chair Jerome Powell has told another Congressional committee that America’s economy should keep growing steadily despite problems overseas. | While most eyes are on the impeachment hearings which just began, Fed chair Jerome Powell has told another Congressional committee that America’s economy should keep growing steadily despite problems overseas. |
| Powell told the Joint Economic Committee that slow international growth, and trade tensions, were a risk, adding: | Powell told the Joint Economic Committee that slow international growth, and trade tensions, were a risk, adding: |
| Powell also reiterated what he said two weeks ago, that the Fed doesn’t expect to change interest rates soon unless there is a “material reassessment” of their outlook. | Powell also reiterated what he said two weeks ago, that the Fed doesn’t expect to change interest rates soon unless there is a “material reassessment” of their outlook. |
| Here’s my colleague Jasper Jolly on today’s high court ruling against unions who were planning industrial action at Royal Mail: | Here’s my colleague Jasper Jolly on today’s high court ruling against unions who were planning industrial action at Royal Mail: |
| NEWSFLASH: Royal Mail has won a High Court injunction to block potential strikes by postal workers in the run-up to Christmas, according to the Press Association.... | NEWSFLASH: Royal Mail has won a High Court injunction to block potential strikes by postal workers in the run-up to Christmas, according to the Press Association.... |
| Over in New York, the US stock market has opened a little lower, but it still near record highs. | Over in New York, the US stock market has opened a little lower, but it still near record highs. |
| Traders are watching for Fed chair Jerome Powell’s testimony to Congress later, and the impeachment hearings on Capitol Hill. | Traders are watching for Fed chair Jerome Powell’s testimony to Congress later, and the impeachment hearings on Capitol Hill. |
| Here’s the opening moves: | Here’s the opening moves: |
| Dow: Down 53 points or 0.2% at 27,637 | Dow: Down 53 points or 0.2% at 27,637 |
| S&P 500: Down 9 points or 0.3% at 3,082 | S&P 500: Down 9 points or 0.3% at 3,082 |
| Nasdaq: down 27 points or 0.3% at 8,458 | Nasdaq: down 27 points or 0.3% at 8,458 |
| Anyone who trusted Neil Woodford with their money should take a deep breath. | Anyone who trusted Neil Woodford with their money should take a deep breath. |
| Investors in the Woodford Equity Income fund, which was frozen in June after a surge in redemptions, risk losing 33% of their investment as the fund is wound up. | Investors in the Woodford Equity Income fund, which was frozen in June after a surge in redemptions, risk losing 33% of their investment as the fund is wound up. |
| That’s according to a review carried out into the fund by private equity specialists PJT Park Hill, Citywire is reporting. | That’s according to a review carried out into the fund by private equity specialists PJT Park Hill, Citywire is reporting. |
| Equity Income was taken over by Link Fund Solutions (which later took control of the Woodford Income Focus fund) | Equity Income was taken over by Link Fund Solutions (which later took control of the Woodford Income Focus fund) |
| Adrian Lowcock, Head of personal investing at investment platform Willis Owen, says: | Adrian Lowcock, Head of personal investing at investment platform Willis Owen, says: |
| Greg Daco of Oxford Economics shows how energy prices pushed US inflation up last month: | Greg Daco of Oxford Economics shows how energy prices pushed US inflation up last month: |
| Just in: US inflation rose last month, by more than expected. | Just in: US inflation rose last month, by more than expected. |
| Consumer prices rose by 0.4% during October, having been flat in September. | Consumer prices rose by 0.4% during October, having been flat in September. |
| Energy prices pushed the cost of living up (unlike in the UK!), with gasoline and heating costs higher. | Energy prices pushed the cost of living up (unlike in the UK!), with gasoline and heating costs higher. |
| Housing and food costs rose a little, while clothing had a negative impact. Transportation, medical care and prescription drug costs all rose month-on-month | Housing and food costs rose a little, while clothing had a negative impact. Transportation, medical care and prescription drug costs all rose month-on-month |
| This lifted the annual inflation rate up to 1.8%, from 1.7%. However core inflation (which strips out volatile measures like energy) dipped back to 2.3% from 2.4%. | This lifted the annual inflation rate up to 1.8%, from 1.7%. However core inflation (which strips out volatile measures like energy) dipped back to 2.3% from 2.4%. |
| Here’s some snap reaction: | Here’s some snap reaction: |
| In rather awkward timing, the owner of British Gas has just won an appeal against the energy price cap. | In rather awkward timing, the owner of British Gas has just won an appeal against the energy price cap. |
| Centrica persuaded the High Court that regulator Ofgem had not calculated part of the cap fairly - on the very morning we learned that it has pushed inflation down. | Centrica persuaded the High Court that regulator Ofgem had not calculated part of the cap fairly - on the very morning we learned that it has pushed inflation down. |
| The utility group was unhappy that Ofgem made a late change in determining fair energy prices for 11 million homes. Centrica argued this change knowingly underestimated the cost of supplying energy last winter, and cost it £70m. | The utility group was unhappy that Ofgem made a late change in determining fair energy prices for 11 million homes. Centrica argued this change knowingly underestimated the cost of supplying energy last winter, and cost it £70m. |
| Ofgem says it is disappointed, and could appeal, adding: | Ofgem says it is disappointed, and could appeal, adding: |
| The energy price cap is here to stay, but the utility industry is pushing back against another Labour Party proposal -- nationalisation. | The energy price cap is here to stay, but the utility industry is pushing back against another Labour Party proposal -- nationalisation. |
| SSE, the energy provider, has told reporters that the move could disrupt the industry - as it reported a jump in profits. | SSE, the energy provider, has told reporters that the move could disrupt the industry - as it reported a jump in profits. |
| Reuters has the details: | Reuters has the details: |
| But do the public agree? A new poll by YouGov found solid support for nationalising the energy companies. | But do the public agree? A new poll by YouGov found solid support for nationalising the energy companies. |
| SSE’s shares are up 2% today, after it lifted its profits to £263m, on an adjusted basis, in the last six months, up from £229.4m. | SSE’s shares are up 2% today, after it lifted its profits to £263m, on an adjusted basis, in the last six months, up from £229.4m. |
| House prices in the North of England will outpace those in the South for the next five years. | House prices in the North of England will outpace those in the South for the next five years. |
| That’s according to a report from Savills estate agents, which also predicts that London house prices will keep lagging. | That’s according to a report from Savills estate agents, which also predicts that London house prices will keep lagging. |
| The Press Association has the details: | The Press Association has the details: |
| The average house price is predicted to be 35,000 higher in five years’ time as “Brexit and election-related angst” subsides, according to a report. | The average house price is predicted to be 35,000 higher in five years’ time as “Brexit and election-related angst” subsides, according to a report. |
| Savills expects the average house price across Britain to lift from 231,000 in 2019 to 266,000 in 2024 - with northern regions out-performing those in the South. | Savills expects the average house price across Britain to lift from 231,000 in 2019 to 266,000 in 2024 - with northern regions out-performing those in the South. |
| There are also signs that the prime central London property market could be set for a bounce, but elsewhere in London growth in house prices is expected to lag behind the rest of Britain. | There are also signs that the prime central London property market could be set for a bounce, but elsewhere in London growth in house prices is expected to lag behind the rest of Britain. |
| The North West of England is tipped to see the strongest percentage house price growth, with property values predicted by Savills to surge by 24% by 2024. | The North West of England is tipped to see the strongest percentage house price growth, with property values predicted by Savills to surge by 24% by 2024. |
| Charlie Kannreuther, head of residential at Savills in the North West and West Midlands, said: | Charlie Kannreuther, head of residential at Savills in the North West and West Midlands, said: |
| Here’s Jamie Durham, economist at PwC, on today’s house price data: | Here’s Jamie Durham, economist at PwC, on today’s house price data: |
| You can read the full report online here. | You can read the full report online here. |
| Back in 2016, technology entrepreneur Elon Musk spoke warmly about the depth of automotive engineering talent in the UK. | Back in 2016, technology entrepreneur Elon Musk spoke warmly about the depth of automotive engineering talent in the UK. |
| The boss of Tesla gushed: | The boss of Tesla gushed: |
| Well, the time has come for Tesla to cite its first European factor, and it’s chosen.... Berlin! | Well, the time has come for Tesla to cite its first European factor, and it’s chosen.... Berlin! |
| Now, Germany obviously also boasts a lot of engineering ability. But it appears that another factor, namely Brexit, could have swayed the decision.... | Now, Germany obviously also boasts a lot of engineering ability. But it appears that another factor, namely Brexit, could have swayed the decision.... |
| Could the eurozone’s growth malaise be ending? | Could the eurozone’s growth malaise be ending? |
| New data shows that industrial production rose by 0.1% in September, compared with August - as the slump in factory output bottoms out. | New data shows that industrial production rose by 0.1% in September, compared with August - as the slump in factory output bottoms out. |
| Production is still 1.7% lower than a year ago, but it’s possible that manufacturing stabilising. | Production is still 1.7% lower than a year ago, but it’s possible that manufacturing stabilising. |
| UK house price inflation remains subdued, as prices in the capital continue to fall. | UK house price inflation remains subdued, as prices in the capital continue to fall. |
| UK average house prices increased by 1.3% over the year to September 2019, unchanged from August 2019, the Office for National Statistics says. | UK average house prices increased by 1.3% over the year to September 2019, unchanged from August 2019, the Office for National Statistics says. |
| But in London, prices continued to drop. The average property now costs £474,601, down from £476,545 in September 2018, and £474,957 in August 2019. | But in London, prices continued to drop. The average property now costs £474,601, down from £476,545 in September 2018, and £474,957 in August 2019. |
| Here’s the key points: | Here’s the key points: |
| Average house prices increased over the year in England to £251,000 (1.0%), Wales to £164,000 (2.6%), Scotland to £155,000 (2.4%) and Northern Ireland to £140,000 (4.0%). | Average house prices increased over the year in England to £251,000 (1.0%), Wales to £164,000 (2.6%), Scotland to £155,000 (2.4%) and Northern Ireland to £140,000 (4.0%). |
| London experienced the lowest annual growth rate (negative 0.4%), followed by the East of England (negative 0.2%). | London experienced the lowest annual growth rate (negative 0.4%), followed by the East of England (negative 0.2%). |