“Lloyds is best positioned to benefit from the recovery in profits at UK banks”
— Robert Law, managing director of European banks equity research at Nomura, responds to the strategic review announced by Lloyds
London property on the up
House prices in London rose 2.6% in the last quarter, according to the Nationwide house price index, compared to an average rise across the UK of only 0.2%. It said the average property is now worth £166,764.
Student debt fears grow
Almost half of all students expect to graduate with more than £20,000 of debt, according to research from the Association of Investment Companies. Nine in ten parents said they are struggling with the costs of university in the difficult economic climate, while more than 60% of students are worried about job prospects.
Payout begins at Equitable
The first Equitable Life compensation cheques, averaging £600, were sent to policyholders last week, kicking off a three-year payment programme. The government has set aside £1.5 billion for the Equitable Life Payment Scheme. Compensation will represent only about a quarter of losses.
Smart meters cost penalty
The £11.3 billion programme to install a smart meter in every home has been criticised in a report by the National Audit Office. It said the average household was likely to see only a £23 reduction in annual bills by 2020, while the cost of the roll-out will add £6 to each bill in 2015. It warned that the final cost of the roll-out could rise further.
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Greek plan lifts Footsie
— The FTSE 100 soared 292 points to 5,990, a one-month high, as new austerity measures in Greece staved off a debt default
— Over a year shares are up 23.7% (up 27.8% with dividends) while Halifax’s house price index fell 4%
— Over three years shares are up 8.5% (up 21.5% with dividends) while house prices have fallen 12.9%
— Over five years shares are up 1.9% (up 22.6% with dividends) while house prices are down 10.1%
— Over 10 years shares are up 5.4% (up 49.5% with dividends) while house prices are up 77.5%
— The pound fell two cents against the euro, ending the week at €1.11, and rose one cent against the dollar, closing at $1.61