Biggest August fall in British house prices since 2018; Dimon warns UK against higher bank taxes – business live

AstraZeneca has halted a late stage lung cancer treatment trial.

The pharmaceuticals giant found that tests of experimental drug volrustomig plus chemotherapy in patients with metastatic non-small cell lung cancer were not meeting its goals of improved survival rates.

Susan Galbraith, executive vice president for Oncology Haematology R&D at AstraZeneca, explains:

“We initiated the eVOLVE-Lung02 trial aiming to improve the outcomes for patients whose lung cancers have lower PD-L1 expression and a less durable response to current immunotherapy regimens.

While we are disappointed, we will learn from this trial and are determined to continue pioneering new medicines from our industry-leading pipeline in our quest to improve outcomes for patients with lung cancer.â€

Shares in AstraZeneca have risen by 1.4%, despite this setback.

After falling all of last week, the London stock market has risen in early trading this morning.

The blue-chip FTSE 100 share index is up 40 points at 107,90, a rise of almost 0.4%.

Mining stocks are leading the risers.

But could there be trouble ahead?

Axel Rudolph, chief technical analyst at investing and trading platform IG, suggests markets are starting to look a little too comfortable given the risks still lurking beneath the surface.

Rudolph explains:

The VIX volatility index falling to its lowest level since December and a 12th consecutive week of equity fund inflows suggest investors are becoming increasingly complacent, even as the Strait of Hormuz remains closed and oil prices continue to rise.

The latest retail sales and consumer sentiment figures provide another warning that the US consumer is beginning to feel the strain, while the surge in long-term Treasury yields points to a very different picture from the one implied by the recent equity rally. Three straight weeks of gains is impressive, but with volatility so low and risks still building, investors may be underestimating just how vulnerable this rally is to a fresh bout of bad news.â€

The downturn in China's property market has deepened, new data shows.

Property investment in China fell 19.2% in the first seven months from the same period last year, widening from the 18% drop in January-June, according to Reuters, citing official data.

Property sales by floor area fell by 11.8%, after falling 11.6% in the first half of the year.

New construction starts measured by floor area were down 24.0%, compared with a 23.4% slump in the first six months.

Japan's economy failed to meet growth forecasts in the last quarter.

Data released early this morning showed that Japanese GDP only rose by 0.3% in April-June, down from 0.5% in January-March.

On an annualised basis, GDP rose by 1.1%, barely half as fast as the 2% forecast by economists.

Deutsche Bank analysts explain:

The slowing came amid disappointing domestic activity, as business investment fell by -1.2% QoQ, while private consumption saw zero growth (vs. +0.4% exp.).

It's another headache for Tokyo, after policymakers were forced to step in to support the yen earlier this month in a joint operation with the US.

The Nikkei stock index rose, though – gaining 506 points, or 0.75%, to 69,220 points.

Back in the housing market, there are signs that investors are driving a harder bargain when buying homes.

Hamptons reports that 56% of house offers from investors were at least 10% below the initial asking price in July – rising to 63% among landlords paying in cash.

David Fell, lead analyst at Hamptons, says:

“When the market slows, seasoned investors rarely stand on the sidelines for long. With homes taking longer to sell and chains proving fragile, landlords are using their liquidity and chain-free status to maximise their leverage when it comes to agreeing a price.

In a market where certainty has become more valuable, these benefits tend to be worth more than in hotter markets where sellers often have multiple options on the table.

Elsewhere this morning, the boss of JP Morgan has renewed his pressure on the UK government not to raise taxes on banks.

Jamie Dimon told chancellor John Healey that creating a more hostile tax environment for banks could cost jobs, the Financial Times reports.

They say:

The Wall Street executive told Healey in a call on Thursday that higher taxes often drive jobs elsewhere, citing a material decline in finance roles in New York that he attributed in part to the city's tax burden, according to people briefed on the conversation.

This is the latest in a series of interventions from Dimon.

In May, Dimon threatened to scrap plans to build a new £3bn UK headquarters in London if Keir Starmer were replaced by a new Labour prime minister who is hostile to banks.

No sooner had Andy Burnham been appointed than Dimon was at it again – warning that bank taxes have “adverse consequences.â€

However, pressure for higher taxes on UK banks have risen after they raked in bumper profits this year – HSBC, NatWest, Barclays and Lloyds reported earnings of £29.2bn over the first six months of the year.

Rightmove has also spotted a pick-up in the housing market since the change of prime minister.

Buyer demand is up 5% since Andy Burnham came to power on the 20th July, they report, explaining:

“The new Prime Minster has brought a general boost to optimism and has ruled out property tax changes in October's Budget, meaning buyers have fewer reasons to wait around and see what happens.â€

That could give the market a little more momentum going into autumn….

Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.

Britain's housing market is locked in its weakest August since 2018, as sellers slash their prices in search of a buyer.

New data from Rightmove this morning shows that the average price of a newly-listed home in Britain fell by 2% this month, to £364,999. That's a drop of £7,360, much larger than in a typical August.

The decline means average asking prices are now 1.0% lower than a year ago, as mortgage rate rises in recent months have cooled the market.

In a further blow to sellers – but a boost to potential buyers! – Rightmove has cut its forecast for house price growth this year to between 0% and -2%, down from a previous forecast of 2% growth.

“The uncertain geopolitical picture, changing mortgage rate landscape, and new Chancellor's first Budget in October making it difficult to predict the rest of the year,†it warns.

Today's data also shows a widening North-South divide in the housing market over the last 12 months. Prices in the north of England are up by 1.5% compared with a year ago, while prices in the south of England are down by 1.8%.

Colleen Babcock, property expert at Rightmove, says:

“This month's larger-than-usual August price drop is a sign that many sellers are recognising the reality of the market and pricing much more competitively from day one.

Buyers have the widest choice of homes for sale at this time of year in more than a decade, so standing out on price for the right reasons is hugely important. While no seller likes to come to market lower than they might have hoped, Rightmove analysis shows that those who price realistically are statistically proven to be giving themselves the strongest chance of finding a buyer and successfully completing a move. One tactic some sellers are using when considering lower offers on their home, is to also make a lower offer themselves on their onwards purchase, to see if they can make up the difference.â€

The largest house price drop is in London, with prices down by 3.1% annually.

Wealthy areas have seen the biggest drop – the new asking price of a home in the Royal Borough of Kensington and Chelsea has dropped to £1,552,970. A month ago, the figure was £1,648,148, a difference of just over £95,000.

The agenda

• 8am BST: China investment, retail sale, house price and unemployment data

• 1.30pm BST: NY Empire State Manufacturing Index

• 3pm BST: NAHB index of US housing market