Housing high
Record prices
House prices in the UK have reached new record levels, according to the latest figures from the Office for National Statistics (ONS). On the ONS scale, the UK house price index reached 185.8 in August, surpassing the previous record high of 185.5 set in January 2008. The average UK house price is now £247,000 having risen 3.8 per cent over the year to August, which is the highest recorded since statistics began in 1968. The news will add fuel to the fire of critics who claim that government property market support mechanisms such as Help to Buy are creating a new bubble.
Macs for iMacs
Burberry boss quits
Angela Ahrendts, who was the best paid chief executive in the FTSE 100 last year, has signalled her intention to quit luxury brand Burberry in favour of a role at technology giant Apple. Ms Ahrendts can take credit for tripling Burberry's market capitalisation in her seven years in the top role there and made her announcement on the back of a positive trading update. She will be replaced by chief creative officer Christopher Bailey. At Apple, she will take up the position of vice president of retail and online, the third head of this division in as many years.
Posting profits
Mail surges
The Royal Mail initial public offering (IPO) delivered for investors who were able to get their hands on shares in its heavily oversubscribed listing. The shares surged in grey market trading, then continued to head upwards on its full listing on Tuesday, hitting 490p at one point against a buy-in price of 330p. The strong showing is likely to prompt others to join in the party, especially considering the success of a number of other notable IPOs this year, including esure, Countrywide and Foxtons. Others said to be considering a float include big beasts such as entertainment business Merlin, owner of Legoland and Alton Towers among many others and Saga, which may split out its AA business or IPO the combined entity.
See Royal Mail delivers profits
Inflation unmoved
Fuel rise to come
The headline Consumer Prices Index of inflation reading for the UK remained stuck at 2.7 per cent for September against expectations of a slight fall. A fall in the cost of petrol was cancelled out by a smaller than expected fall in European and long haul flight costs and a rise in domestic flight costs, while food inflation was static at 4.8 per cent. Other upwards factors included rising education costs, and further pressure will be applied once domestic fuel price rises to come through in the coming weeks.
See The other inflation problem
China calling
Osborne deal
George Osborne spent much of the past week in China on a charm offensive to strengthen and deepen trading ties between the UK and Asia's powerhouse and to confirm London as a global centre for renminbi trading. Among a number of initiatives announced, including plans to allow Chinese banks to set up wholsesale operations in London, was an agreement to allow UK institutions to invest directly into China rather than via Hong Kong. The two countries also inked a memorandum of understanding on nuclear power, which could lead to Chinese investment in the UK's halting new nuclear programme.
Twitter IPO
NYSE wins
The forthcoming initial public offering of social media giant Twitter will see it list on the New York Stock Exchange rather than the technology-focused Nasdaq index, which is home to the likes of Facebook, Google, Apple and Groupon. Twitter is expected to begin its investor roadshows later this month with a view to floating before the end of the year with some analysts predicting a valuation of $15bn for the company once it goes public. Its most recent results showed revenues of $422m for the first nine months of the year, against $205m in 2012 as active users hit 232m by the end of September. Advertising revenues more than doubled in the third quarter, but increased marketing costs meant that nine-month losses from from $71 to $134m.
