Below are our top 10 stories that you need to know about. Be sure to check our twitter page for regular posts of important headlines. Click on the links for full stories.
Opinion article of the week: Wall Street has been questioning why the markets have been so volatile recently and a theory has been circulating as to why this is the case. Click here to find out more.
1. LABOUR LEADERSHIP ELECTION
Jeremy Corbyn has won the Labour leadership election. He won with over 60% of the votes and his victory indicates a significant shift to the left for Labour. Corbyn hopes to tackle the inequality in our society and change the way politics is conducted in order to engage more young people. Click here for more on Corbyn’s key policies. Tom Watson won the deputy Labour leadership contest.
2. INTEREST RATES
The Bank of England holds the key interest rate at the record low of 0.5%. The Bank of England policy makers remain confident that recent economic turmoil caused by China’s market crash will not significantly harm the UK’s economy. (Bloomberg)
3. OIL PRICES
Oil prices are teetering at roughly $45 a barrel but Goldman Sachs analysts believe that oil prices may drop to as low as $20 a barrel. This is due to surplus supply and the reluctance of oil producing nations to reduce production, most notably, OPEC’s largest producer Saudi Arabia. Furthermore, Russia accounts for nearly 11% of world production of liquid hydrocarbons but they are also very unwilling to reduce supply. Market supply is also increasing as Iran returns to the market. (Business Insider)
4. EU SUBSIDY FOR FARMERS
The European Parliament has pledged to provide a €500 million subsidy for farmers in the EU. An emergency meeting was held on Monday at the European Parliament in Brussels while farmers protested outside of the building. The money that was pledged will help implement a number of measures that will provide targeted aid for farmers across all 28 member states and help reduce market supply through improving storage systems. (The Independent)
5. IPO MARKETS
Despite volatile markets in August, there appears to signs of life sparking in the IPO (Initial Public Offering) market. Motor insurer Hasting announced its plan for a £1bn float. Pharmaceutical companies Shield Therapeutics and Finnish Faron Pharmaceuticals both plan to launch their IPO’s in the near future (City A.M.). The IPO market has not gone unscathed by the market volatility as there has been a 28% decline in the values of IPO’s in 2015 to date compared to the same period in 2014. (Financial Times)
6. UK HOUSING MARKETS
The shortage in supply of housing in the UK has led to a 9% annual increase in price of houses and the Royal Institute of Chartered Surveyors have forecast a 6% rise in the coming year. (The Independent). Furthermore the Office for National Statistics released a report on Friday showing that output in the construction industry in July 2015 has decreased by 1.0% compared with June. (ONS) On a more positive note, the use of the Help to Buy scheme has hit record levels, with 4,745 new homes sold under the equity loan part of the scheme. 80% of all Help to Buy scheme sales were made to first time buyers. (BBC News)
7. UK MANUFACTURING OUTPUT
The EEF manufacturers’ organisation published its quarterly outlook report and it forecast a meagre 0.7% growth. It also claims manufacturing output is dropping to its lowest level since the end of 2009. (The Economist)
8. EU COMMISSION BLOCKS TELECOMS MERGER
The European Commission have blocked a merger between Scandinavian telecom companies TeleliaSonera and Telenor as they believed it would significantly reduce competition in Denmark’s telecommunications market. Following this news, BT & Vodafone’s share prices fell by 1.6% on Friday.(City A.M.)
9. TESCO SOUTH KOREA SALE
Tesco has agreed a £4.2bn sale of its South Korean Homeplus business. CEO Dave Lewis plans to focus on Tesco’s core UK stores after a series of poor financial results. (The Telegraph)
10. MORRISONS CONVENIENCE SALE
Morrisons have agreed to sell 140 of their ‘M Local’ convenience stores, retaining only five of the stores. Morrisons expects to incur a loss of roughly £30m on the deal. Critics suggest that factors such poor site selection for their convenience stores meant that they were they were simply unable to keep up with competition in an already saturated market. (City A.M.)