Economics

UK property Housing transactions slumped by more than a third in May. About 100,000 deals on properties worth more than £40,000 took place last month, according to estimates from HM Revenue and Customs, down from 158,000 in May last year.

European rates The European Central Bank’s dilemma over interest rates deepened as figures pointed to a “toxic cocktail” of stagnant growth and spiralling inflation. European manufacturing and service companies reported declining activity for the first time in five years.

German business The business climate index for Germany, one of the strongest performing countries in the eurozone, slipped from 103.5 in May to a lower-than-expected reading of 101.3 in June, according to the Munich-based Ifo economic research institute.

Belgium The Belgian business confidence index fell back sharply to -5.9 in June, from -1.6 in May.

Oil prices increased after militants blew up a Nigerian oil pipeline. Despite Saudi Arabia’s increase in output, the attack heightened concerns about crude oil supplies around the world.

Chinese rates The Shanghai stock market took another heavy beating after the central bank admitted that surging fuel prices and steep inflation may prompt a rise in interest rates.

Australia plans to make energy more affordable in the long run with its new emissions trading scheme, due in 2010, which would offset energy price rises through the auction of carbon permits.

Singapore Inflation in the city state was 7.5 per cent in May, a 26-year high. The rise is attributed to a surge in housing and food costs as well as the continued rise in crude oil prices, which is driving up transport costs.

Banking & finance

Bradford & Bingley Clive Cowdery, the insurance entrepreneur, attempted to muscle in on the bank’s rights issue, backed by four of the mortgage bank’s biggest investors. The investors — Standard Life, Legal & General Investment Management, M&G and Insight — want B&B to drop plans to sell a 23 per cent stake to TPG Capital as part of a £400 million capital raising.

HBOS closed below its rights issue price for the first time, as some of London and New York’s bestknown hedge funds revealed that they were betting the bank’s stock will fall. Shares in Britain’s biggest mortgage lender closed down 4.25 per cent at 270.25p a share, compared with the 275p subscription price.

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