Rolling business and financial news, as Germanys economy ministry warns that geopolitics and the weak eurozone are hitting demand. German industrial orders disappoint, againComing up... the Bank of England and European Central Banks monthly meetings. 9.30am GMT Britains housing market may be cooling (see Halifaxs data), but the nations love affair with the car continues.The Society for Motor Manufacturers and Traders reports that 2 million cars have now been registered so far this year, the best performance in over seven years. 9.16am GMT Britains Competition and Markets Authority has vowed to get to grips once and for all with the countrys banks.It announced a full, 18-month inquiry into the sector this morning, to decide whether there is effective competition in retail banking.Alex Chisholm, the head of the Competition and Markets Authority (CMA), is to embark on the most detailed analysis of the sector for a decade after concluding that customers were not getting a good enough deal from the major high street players. Major banks could be be broken up or forced to be more transparent about their fee structures and a previous deal over the treatment of small business customers in operation since 2002 is also to be reviewed.According to the CMA the big four Barclays, HSBC and bailed-out Lloyds Banking Group and Royal Bank of Scotland have a 77% share of personal current accounts and a 85% share of small business banking, market shares which have barely shifted despite almost a dozen of investigations in the last 15 years.Crunch time for Britains Big Four banks as competition inquiry launched http://t.co/Fl6ZgOIeYc 9.09am GMT Over in Greece, the left-wing opposition party, Syriza, has a significant lead over the right-wing New Democracy which leads the coalition.Thats according to the latest opinion poll, provided by university lecturer Spyros Gkelis:#Greece New poll (Palmos Analyis) (%): SYRIZA 29.4 ND 19 GoldenDawn 6.5 Potami 5.4 4,3 PASOK 4.1 Ind.Greeks 3 EcoGreens 1.4 DemLeft 0.5 9.03am GMT Back to the first story of the morning, Germanys weak economy.Chris Williamson of Markit sees signs of recovery, even though Septembers 0.8% rise in factory orders was much weaker than expected (see opening post for details)Factory orders in #Germany showing some signs of life after Aug slump. +0.8% in Sep. But like PMI, trend remains weak pic.twitter.com/C7Lkf7HJX9 8.40am GMT The 0.4% drop in house prices last month is a clear sign that the market is cooling, says Howard Archer of IHS Global Insight:Evidence of a housing market slowdown is now coming pretty thick and fast, with Octobers dip in house prices reported by the Halifax being a striking example. 8.37am GMT More evidence of a cooling housing market. Halifax says prices fell 0,4% in October & 0.8% rise in latest three months lowest since Dec 12. 8.31am GMT Is Britains housing market running out of steam?UK house prices fell by 0.4% in October, according to figures just released by the Halifax building society.Halifax marks house prices down 0.4% last month leaving average price of a property up 8.8% over the past year.Activity continues to decline with mortgage approvals in September falling for the third successive month to a 14 month low, whilst home sales are at their lowest level since October 2013. The associated weakening in demand has brought supply and demand into better balance.The economy is, however, continuing to grow at a healthy pace and employment is still rising. These factors should support housing demand over the coming months. However, while the chances of an imminent interest rate hike may have receded, a recent Halifax survey found that many borrowers are concerned about the impact a rise could have on their monthly mortgage repayments over the next 12 months. This concern is likely to curb buying intentions. 8.17am GMT Theres a shake-up underway in Britains milk industry -- Dairy Crest is selling its dairies operations to rival Müller , for £80m. The move allows Dairy Crest to focus on its cheeses and spreads operations, such as Cathedral City and Utterly Butterly, where profit margins are higher.[we] believes the Transaction to be in the best interests of consumers, customers, dairy farmers, employees and Dairy Crests shareholders.Dairy Crest exit from milk means there are only 3 big suppliers left Denmark's Arla, Germany's Müller + the UK's First Milk farmers co-opCompetition authorities and Government likely to look at Dairy Crest/Muller deal. Dairy Crest accounts for 15pc of UK milk, Muller similarEnd of an era.... Dairy Crest to sell off its dairy business http://t.co/nENkzOEMkj pic.twitter.com/AEr2xivR7m 7.53am GMT Thomas Gitzel, an economist at VP Bank, says Russian sanctions appear to have deeply unsettled German industry.He reckons that the 0.8% rise in Septembers factory orders suggests the next few months will be tough:These figures show things will be difficult for German industry in the winter months of the year. 7.48am GMT Thomas Harjes, Frankfurt-based European economist at Barclays Plc, reckons Germany is being buffeted by problems overseas:A slump in exports to Russia and lackluster shipments to the rest of the euro area weighed on output, Germanys domestic fundamentals remain sound. We expect private consumption to gradually strengthen again. 7.38am GMT Bad news from Germany - factory orders across Europes largest economy have missed expectations in September, intensifying concern over its growth prospects.The economy ministry reported this morning that factory orders rose by just 0.8% in September, way below forecasts of a 2.3% rise.Ouch, no good. *GERMAN SEPT. FACTORY ORDERS RISE 0.8%; MEDIAN EST. 2.3% RISEMost worrying: German domestic orders -2.8% MoM in Sept., after -1.0% in August. 7.37am GMT Good morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business.Breaking: Competition and Markets Authority announces full competition inquiry into retail and business bankingCompetition watchdog confirms investigation into small businesses and personal current accounts Continue reading...
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