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UK house prices rose by 5% in September compared with a year ago, the Nationwide says, as the property market saw post-lockdown demand continue.The annual rate of growth is the highest for four years, according to figures based on the Nationwide’s lending data.The building society said activity had “recovered strongly” since coronavirus restrictions on viewings were lifted. But job fears ahead mean many young people have put moving plans on hold.Price rises across regionsThe Nationwide said that UK house prices rose by 0.9% in September compared with August.In the three months from July to the end of September, UK prices were up 1.7% compared with the previous quarter and the average home cost £226,129. Prices rose on a quarterly basis in most areas of the UK, the building society said.”The rebound reflects a number of factors. Pent-up demand is coming through, with decisions taken to move before lockdown now progressing,” said Robert Gardner, Nationwide’s chief economist.He said the temporary stamp duty holiday, which means no tax is levied on the first £500,000 of all property sales in England and Northern Ireland until the end of March, was “adding to momentum” by bringing purchases forward. “Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown,” Mr Gardner added.
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However, the Nationwide has joined other commentators in warning of the medium-term impact of the pandemic on the housing market.Lucy Pendleton, from independent estate agents James Pendleton said: “[House price growth] can’t continue forever, and it is very likely indeed that we won’t see a higher annual growth rate this year.” Movers ‘more likely to buy than first-time buyers’
First-time buyers: Four ways the property market ‘will be tougher’
The Nationwide’s Mr Gardner said younger people were much more likely to have put off plans than older people, reflecting concerns about job prospects, particularly as government wage support becomes less generous.Potential first-time buyers have also found it difficult to secure a mortgage when they are unable to offer a large deposit, as lenders take a safety-first approach fearing defaults as finances are squeezed.

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Caesars Entertainment, the Las Vegas casino-owner, has struck a £2.9bn deal to take over William Hill.The boards of the US firm and William Hill agreed a cash offer of 272p a share, compared with 273p at the start of Wednesday trading, subject to shareholders voting in favour. US private equity firm Apollo had also made a bid to take over William Hill.But Caesars said that if the UK company chose Apollo, it would jeopardise a joint venture between them.Caesars owns a 20% stake in William Hill’s US operations, which also have exclusive rights to operate sports betting under the Caesars brand.The US firm, which owns Caesar’s Palace in Las Vegas, is particularly interested in William Hill’s US bookmaking business which currently has 170 retail sites in 13 different states.In August William Hill said it would not be reopening 119 of its UK High Street betting shops after the coronavirus shutdown, saying it did not expect customers to return in the numbers seen before the pandemic.William Hill said its directors would “unanimously and unconditionally” recommend that shareholders accept the deal.Roger Devlin, chairman of William Hill, said: “The William Hill board believes this is the best option for William Hill at an attractive price for shareholders.”Caesars chief executive Tom Reeg said: “The opportunity to combine our land based-casinos, sports betting and online gaming in the US is a truly exciting prospect.”

Royal Dutch Shell has said it plans to cut 7,000 to 9,000 jobs as it responds to challenges including the slump in oil demand amid the Covid-19 pandemic.The oil giant said the cuts would be implemented by 2022 and included 1,500 people who were taking voluntary redundancy.It gave no indication of where the job losses would happen.The move comes five months after it cut its dividend for the first time since World War Two.Shell chief executive Ben van Beurden said the job cuts were “the right thing to do for the future of the company” as it strives to become a net-zero emissions energy business.Shell employs 83,000 people worldwide, including 6,000 in the UK. It has been hit by a substantial drop in profits since the pandemic struck.It saw a 46% fall in first-quarter net income to $2.9bn (£2.3bn), while second-quarter income fell 82% to $638m.The firm said third-quarter earnings were expected to be “at the lower end of the $800m to $875m range”.Who wins and who loses when oil prices fall?
Has the world started to take climate change fight seriously?
Shell is in the midst of a cost-cutting drive that is expected to deliver annual savings of $2bn to $2.5bn by 2022.Other big oil firms are facing similar challenges. Rival BP has also cut its dividend and recently announced it was cutting 10,000 jobs out of its global workforce of 70,000.’Tough process'”We have had to act quickly and decisively and make some very tough financial decisions to ensure we remained resilient, including cutting the dividend,” said Mr van Beurden.”But as hard as they were, they were entirely the appropriate choices to make. And Covid-19 has hit us in another way. We have, very sadly, lost six employees and six contractor colleagues to the virus.”Mr van Beurden described the job-cutting programme as “an extremely tough process”. “It is very painful to know that you will end up saying goodbye to quite a few good people,” he said. “But we are doing this because we have to, because it is the right thing to do for the future of the company.”He said Shell had to be “a simpler, more streamlined, more competitive organisation that is more nimble and able to respond to customers”.Mr van Beurden reiterated that Shell intended to become a net-zero emissions energy business by 2050 or sooner.That meant the company had to change the type of products it sold, he said.”We will have some oil and gas in the mix of energy we sell by 2050, but it will be predominantly low-carbon electricity, low-carbon biofuels, it will be hydrogen and it will be all sorts of other solutions too,” he said.

British beef is back on US menus for the first in more than 20 years as exports restart on Wednesday.The beef was banned after the BSE outbreak in 1996 when cattle were infected by what became commonly known as Mad Cow Disease.Some UK beef was cleared for export in March after US inspections in 2019, and shipments from Northern Ireland’s Foyle Food Group will be the first to leave. Ministers said the US market will be worth £66m to the UK over five years.The Agriculture and Horticulture Development Board, a body funded by farmers and the supply chain, called the resumption of exports a “historic moment”. Dr Phil Hadley, a director at the board, said: “The US represents an important potential market for our red meat exports and today’s first shipment is the result of the hard work and persistence of industry and government to bring about this crucial next step. “This important milestone will bring a fantastic boost to the sector and we look forward to seeing more of our red meat served up on dinner tables across the US in the months and years to come.”In 2019, the US Food Safety Inspection Service undertook a series of audits at UK beef, pork and lamb facilities. Pork exports to the US continue as usual, while exports of lamb have yet to commence.”This is great news for our food and farming industry, helping the sector go from strength to strength,” said Environment Secretary George Eustice.Post-Brexit dealsInternational Trade Secretary Liz Truss said: “This could be just the tip of the iceberg. The free trade deal we are negotiating with the US will create a host of export opportunities for British agriculture. We are seeking an ambitious and high standards agreement that benefits farmers and delivers for consumers.”However, those free trade talks remain controversial, with critics warning the government not to lower UK food standards in order to strike a deal.This week a group of celebrities and chefs, including Jamie Oliver and Joe Wicks, said post-Brexit trade deals should not open the floodgates to lower-quality food, citing chlorine-washed chicken and hormone-injected beef.However, Ms Truss has previously insisted the UK will not allow US chlorine-washed chicken to be stocked in supermarkets as a ban is already written into law.She said the UK will not compromise on environmental, animal welfare and food standards in its quest for trade agreements.

Britain’s car industry risks losing out even if there is a post-Brexit trade deal with the EU, according to documents seen by the BBC.Car parts from Japan and Turkey used in the UK will not be treated as British, so some exports may see higher tariffs.In a letter, Britain’s chief Brexit negotiator says the UK has failed so far to get the car parts deal it wants, and “obviously cannot insist on it”.Having enough parts sourced within the UK and EU is key to a free trade deal.In a letter to the car industry, seen by the BBC, chief negotiator Lord Frost says one of their key priorities – that parts and components from Japan and Turkey count as British in any deal – has been rejected by the European Commission. This risks some UK automotive production attracting taxes on trade, known as tariffs, when exported to the EU, even if there is a “zero tariff” trade deal struck with the EU. What are the sticking points in Brexit trade talks?
Trade talks: What do the UK and EU want?
A separate draft legal text, also obtained by the BBC, lists the UK’s request for manufacturing of electric cars, batteries, and bicycles to be treated leniently, and count as British, even if the majority of components come from elsewhere. The letter says: “I am sorry to say that so far they [EU negotiators] have neither been willing to discuss these nor share any proposed text with us”.Both documents refer to the need, even in a deal, for UK manufacturers to prove that UK-exported goods are actually British-made, with a specified threshold of British parts, expected to be around a half. Under the terms of an anticipated deal with the EU, any components from EU countries can count as British – something known as “cumulation”. But the letter reveals the requirement for that to be extended to other partners of the UK and EU, in particular Japan and Turkey, is being refused.
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Much UK manufacturing is below the required threshold, although the reverse is not the case for the European Union. The problem is particularly acute for electric vehicles where an even larger proportion of the value of the car is contained in the battery.”The commission has made clear that it will not agree third-country cumulation in any circumstances, which we regret, but obviously cannot insist upon,” says Lord Frost’s letter, written on 7 September.Senior figures in the car industry expressed the view that the government could have chosen to insist on a deal that did contain such measures. But discussions on such subjects have been stalled by the impasse over fishing rights and subsidy powers.The original Brexit deal negotiated by former PM Theresa May contained a route to minimise checks on what are known as “rules of origin”. That option was removed as part of the revision to the withdrawal agreement a year ago. But Lord Frost points out that the UK and EU27 car industries have jointly asked for such arrangements, including special consideration for electric vehicle exports.

An aircraft storage facility in Central Australia is now so full that its owners have had to seek out more space.Many carriers haven’t had enough passengers to justify flying during the pandemic, and have opted to store their planes. Asia Pacific Airline Storage is storing 94 planes at Alice Springs, and will store more in Southeast Queensland. Analysts say it’s a sign of how difficult conditions have become for airlines. Singapore Airlines and Cathay Pacific as well as their subsidiaries are storing planes in Alice Springs, as are Fiji Air and Cebu Pacific. Asia Pacific Airline Storage (APAS) has an additional sixteen slots on site, but they are already booked with existing customers. The site has become a local landmark in the remote town of about 25,000 people. The company has plans to expand the facility from its current 110 slots to accommodate 160-200 aircraft. Until the expansion is ready, APAS needs to find extra space elsewhere. “To manage some additional storage requirements we’ve started to store some aircraft at Wellcamp in Toowoomba,” Tom Vincent, the company’s managing director, told the BBC.At the moment, there are only two planes at the new facility in Southeast Queensland, but more are due to arrive this week. Rigorous maintenance Desert conditions are widely regarded by manufacturers and airlines as preferable for storing planes because it is easier to protect against corrosion in dry weather. While they are in storage, the planes have to undergo a rigorous maintenance schedule. “People have this misconception that you just park an aircraft and it sits there until you want to activate it again,” said Mr Vincent. In fact, APAS now has 70 employees ensuring the planes are properly looked after until the airlines need them again. How the travel downturn is sending jet planes to ‘boneyards’
Hundreds of thousands of airline jobs at risk, warns industry body
Mr Vincent said he always expected to expand the facility, but the pandemic has dramatically increased demand. And while there has been a very slow trickle of planes returning to service, the vast majority have been entering rather than leaving storage. The facility is not an airline “boneyard” where old planes are stripped for reusable parts, but Mr Vincent suggested that might become part of the business if the industry continues to face headwinds. ‘Extremely difficult situation’One industry analyst said the facility’s expansion is a clear indication of the difficulty airlines are facing during the Covid-19 pandemic. Flightglobal’s Asia Editor Greg Waldron said times are tough for Singapore Airlines and Hong Kong-based Cathay Pacific – which are both using the facility. Neither airline has domestic flights, which will likely be the first to reopen, he said. “If you’re something like Cathay Pacific, where you don’t have that domestic market, you’re in an extremely difficult situation,” he said. However, he said the air freight business remains strong, and will help many airlines stay afloat. The International Air Transport Association (IATA) has just downgraded its 2020 traffic forecasts.The association now says it expects traffic to be 66% below the level it was in 2019.The IATA estimates that it will be at least 2024 before air traffic reaches pre-pandemic levels. “I guess there’s not a clear pathway for a return for normality. There’s a lot of industry views out there that a return to pre-covid levels is going to take many years,” Mr Vincent said.

Walt Disney has announced it will lay off 28,000 employees, mostly at its US theme parks. Disney cited the parks’ limited visitor capacity and uncertainty about how long the coronavirus pandemic would last as reasons for the layoffs. The company’s theme parks have taken a major hit from the pandemic. Disney shut all its parks earlier this year as the virus spread, but only Disneyland in California remains closed. “We have made the very difficult decision to begin the process of reducing our workforce at our Parks, Experiences and Products segment at all levels,” Josh D’Amaro, chairman of the parks unit, said in a statement.The layoffs apply to “domestic employees” of which about 67% are part-time. Disney also has parks in Shanghai, Hong Kong, Tokyo and Paris, which are not affected by the announcement.Hong Kong Disney reopened last week after shutting down for a second time in July due to a spike in Covid-19 cases. Except for Disneyland in California, all of the company’s parks have now reopened, although visitor numbers are limited to allow for social distancing. Disney focuses on streaming as it falls to a loss
Walt Disney World reopens in Florida amid Covid-19 surge
Disney lost $4.7bn (£3.6bn) in the three months to 27 June, with revenues for its Parks, Experiences and Products division plummeting 85% compared to the same quarter in 2019. Mr D’Amaro said the company’s problems were “exacerbated in California by the state’s unwillingness to lift restrictions that would allow Disneyland to reopen.”Disney has been working to persuade California to allow the company to reopen Disneyland.

Chancellor Rishi Sunak admitted last week that his latest coronavirus economic support package won’t save all jobs. But as employers and employees digest the latest plans it’s clear many of them feel viable firms are being hung out to dry just as the economy faces the impact of further lockdown measures.The support plan, involving ending the furlough scheme and shifting more of the financial burden from the taxpayer and onto employers, has broad support from the CBI and TUC. But many firms say the government has simply withdrawn a lifeline. The BBC spoke to four people who feel things just got worse.’Companies like ours are hanging on by their fingertips'”We have struggled all the way through – and now this,” says an exasperated Sonia Hawkins. “We have done everything right and followed the rules. But there is no help for us.”In 2019, her family-run music and lighting equipment hire firm had its best year since it was set up as a mobile disco business in 1978. “Now we’ve had the rug pulled from under us,” she says.After the furlough scheme ends on 31 October, the Treasury will instead subsidise people who worked at least a third of their usual hours.”We have next to no income. We’ve got people on furlough. We would have to bring them back and pay them just to get a subsidy. It’s nuts.”The company, Disco Equipment Hire, serves many areas that went into deep freeze during lockdown: big parties, weddings, conferences.Sonia said that after the firm’s “phenomenal” 2019, they invested heavily in expanding – new equipment and transport. “Luckily, we had enough money to survive during the lockdown,” she said. “In June, we invoiced for just £50.”A few weeks ago Sonia was hopeful that business was starting to pick up. Now she fears that two more staff will have to go, in addition to the five already made redundant – leaving just the four family members plus an additional employee.”We were praying that the chancellor was going to come out with something for us – grants, more furlough assistance. “Our bills don’t stop,” she said. “Companies like ours are hanging on by their fingernails.”Under-25s ‘give up dream job hope’ in pandemic
‘I took a pay cut but at least I kept my job’
‘There’s no work around. I’m not even getting responses’Maria – she did not want her surname disclosed – had already survived one round of redundancies at the large hotel where she works. But Maria’s employer has just warned her job is at risk in a new round of cuts.”I’m fearing the worse,” says the sales manager. “My job was certainly viable. I brought in the most revenues for the business.”Maria works in a city-centre hotel – part of a big chain.”The hotel manager has been trying to keep things afloat,” she said. “But as everyone knows, people aren’t going into the cities any more.” “We’ve gone from about 110 staff to 20. The people there are doing a bit of everything now – trying to keep things going with as few staff as possible.”Maria said everyone was banking on an extension to the furlough scheme: “I think we all felt that it would be enough for help us through the next few months.”She’s still hoping for the best. Maria has been at the hotel for four years, and with the group for 12 years. “They know my capabilities, that I’m good at my job.”She’s hoping to hear about her future within the next week. Even so, Maria has been firing off her CV in the search for other jobs in sales and business management.It’s been dispiriting: “There’s no work around. I’m not even getting responses.”‘A lot of our competitors have already gone into liquidation’After six months of zero income, events company KDM spotted signs of life in the sector in early September. Business activity started to pick up, says manager Nicky Whyman.Bookings in the first week of September were only 10% of monthly activity pre-lockdown, but it was a sign for optimism. That has since evaporated after fresh lockdown measures.She says: “As the economy started to open up, we were gearing up for small events – socially distanced, indoors and outdoors. But companies now say they cannot commit to any in-person events until mid-2021 at the earliest.” That would mean 12-15 months of being unable to operate due to government restrictions.The firm, which cut eight jobs earlier during lockdown, brought back the remaining 18 staff to work part-time this month. “But then the government announced it was scrapping the pilots of larger business events and would no longer look at reopening of conference centres and exhibitions.”When the furlough ends next month we are in the same situation as we were in April, except that there will no longer be government support for us or the wider events industry at all.”The way the government has structured the new support package means we are being asked to bring people back from furlough just so we can claim the [pay] subsidy – great in theory for employees, but illogical and expensive for employers.”We are being asked to pay staff the necessary 55% of their salaries for 33% of working hours. The numbers just don’t add up.”Founded in 1990, KDM’s operations stretch from organising conferences to team-bonding experiences, working exclusively for the corporate market. Its events can involve 2,000-plus people. The firm is confident it can weather the storm, but things are tough.”We are using cash reserves to keep paying staff and not have to make staff redundant. But we can’t continually drain the coffers.” She says the chancellor should have extended the furlough scheme for specific industries that are currently barred from operating. “It is difficult to see many viable companies surviving without targeted support.”Nicky says the events industry, worth £70bn to the economy, has proposed ways to operate safely, but is being ignored. “If the government would only work with us we could start to get business moving in a safe and secure manner. A lot of companies within our sector have already gone into liquidation.”The women who started businesses in lockdown
Will Christmas celebrations be the same this year?
‘There are no jobs. It’s terrifying’Lisa, on furlough since March, had been cautiously optimistic about returning to work over the next few weeks. With Christmas coming, the events sales manager was expecting seasonal parties to bring in some business.”Now all the rules have been tightened I’m not expecting to go back to work any time soon,” she says. Indeed, she’s now not at all hopeful of ever returning to her job. “Work has all but vanished for my work since Covid.”Lisa does not want to disclose her surname nor employer for fear of saying anything to jeopardise future work. “We have gone through a consultation period for redundancies. I’ve just no idea what is going to happen.”The latest jobs support scheme does nothing to help those of us on furlough. I have been brought back one day a week, but what is happening now gives my employer no incentive to give me more days,” Lisa adds. She hopes her employer might allow her to take unpaid leave until March, but there has been no decision.With her partner only working part-time after being furloughed, she worries about paying the bills and providing for her children. “It’s terrifying.” Domestic costs have been cut to a minimum. When in jobs, they needed two cars for their work. Now one sits on the driveway, uninsured because they can’t afford the premium.Aged 40, Lisa has worked in the hospitality industry since she was 16. She says: “I have a lot of experience and have been applying for other jobs. I have searched and searched for different jobs since March. But there’s nothing.”She’s not bitter, just scared about the future. “I can understand what Mr Sunak is trying to do [to help the economy]. But it is so difficult for us. He doesn’t seem to have done anything [last week] that will help people like me. “The government has said the new [social distancing] rules may be in place for six months. In that case, they should have extended the furlough scheme for six months.”

A hydrogen-powered train has travelled on Britain’s rail network for the first time. The prototype, called the Hydroflex, made a 25-mile round trip in Warwickshire, reaching speeds of up to 50 mph. Its next phase is to move the hydrogen tanks, fuel cell and battery out of a carriage and stash them underneath the train. The aim is for the train to start carrying paying passengers by the end of 2021.

Millions of the UK’s poorest households could see their incomes cut by £20 a week from April unless a “lifeline” payment continues, charities warn.The Joseph Rowntree Foundation and others are calling on the chancellor to make a temporary rise in Universal Credit, plus other benefits, permanent.The yearlong hike was introduced in April, after the UK went into lockdown, to help those who had lost their jobs.But there are no signs it will be extended beyond next April.Chancellor Rishi Sunak last week outlined his Winter Economy Plan, but there was no commitment to keeping the temporary Universal Credit increase.’Good work undermined’Now some 50 children’s charities, food bank providers, housing organisations, benefit and debt advisors, disability groups, and others say if this “lifeline” is cut it risks plunging struggling households into poverty.”Falling incomes and rising costs throughout the pandemic have put families under immense financial pressure, but the £20 uplift has been a lifeline that has enabled many of them to keep their heads above water and has stopped us seeing a marked surge in poverty levels,” the coalition of groups say in a letter to the chancellor.”However, if the uplift ends in April 2021, this good work risks being undermined.”Modelling by the Joseph Rowntree Foundation suggests around 16 million people will be in households facing an overnight income loss equivalent to £1,040 a year, with those on the lowest incomes and families with children being hardest hit. They say 700,000 more people will be driven into poverty, including 300,000 children, while a further 500,000 of those already in poverty will be plunged into deep poverty – a measure which is gauged by being more than 50% below the poverty line. “We are therefore urging you to make the uplift permanent and stop families being cut adrift whilst they need help to stay afloat,” the letter adds.’Sick and disabled people’The letter also urges the extension of this lifeline to claimants of legacy benefits who are currently excluded from the additional £20 a week support.”Further, it is simply not right that those on legacy benefits, who are mostly sick or disabled people and carers, and so have been most at risk during this pandemic, have not been thrown an equivalent lifeline,” it says.”We urge you to follow the advice of the Social Security Advisory Committee and support 1.5 million more people by applying an equivalent uplift to those on legacy benefits who have so far been excluded from increases.”The Joseph Rowntree Foundation is an independent social change organisation working to solve UK poverty.Other signatories include Barnado’s, Citizens Advice, Child Poverty Action Group, Macmillan Cancer Support, Oxfam, The Salvation Army, Save the Children, and Shelter. It comes a week after think tank the Resolution Foundation issued a similar warning. It pointed out that unemployment may rise strongly next April, which would add to the hardship of the £20 boost being withdrawn.