UK House prices up 0.9 % in March

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House prices up 0.9% in March.

The society’s monthly snapshot of the market showed the average price of a property in the UK increased to £150,946.

The rise follows 16 months of falls, and reverses some of the 1.9% drop recorded in February, but the society said it was a “surprise bounce” and it was too early to talk of house price recovery.

Rival lender the Halifax surprised commentators when it reported a 1.9% increase in prices in January, but this was more than offset by a fall in February. However, this week the Bank of England said the number of loans taken out by homebuyers had risen by 19% in February, with 37,937 loans approved during the month, leading to suggestions that activity in the market may have bottomed out.

Nationwide’s regional breakdown of house prices, also published today, showed a continued fall in all parts of the UK in the first quarter of the year.

Northern Ireland continued to see the biggest drop, with prices down by almost a third (29%) on the same period last year, while in Scotland prices dropped by just 12.6%.

However, the quarterly rate of falls halved in Northern Ireland, from 8% in the last three months of 2008 to 4.1%, and for the first time it did not record the largest quarterly fall in the UK – this was in Wales where prices fell 8.3%.

GDP of EU (27 countries)

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GDP of EU (27 countries)
GDP of EU (27 countries)

data, 2008 year (for some countries predicted values)

The German economy is largest in EU. 19.4 % of EU’s GDP accounts for Germany. 15.2 % of the GDP of EU gives France, 14.1 % - United Kingdom, 12.3 % - Italy, 8.5 % - Spain.

Shares of GDP in the EU:
19,4    Germany
15,2    France
14,1    United Kingdom
12,3    Italy
8,5    Spain
4,6    Netherlands
2,8    Poland
2,7    Belgium
2,5    Sweden
2,2    Austria
1,9    Greece
1,8    Denmark
1,5    Finland
1,4    Ireland
1,3    Portugal
1,2    Czech Republic
1,1    Romania
0,8    Hungary
0,5    Slovakia
0,3    Slovenia
0,3    Luxembourg
0,3    Bulgaria
0,3    Lithuania
0,2    Latvia
0,1    Cyprus
0,1    Estonia
0    Malta

U.K. mortgage approvals fell to the lowest in 14 years in November

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U.K. mortgage approvals fell to the lowest in 14 years in November as the contracting economy discouraged buyers and financial institutions declined to pass on the central bank’s interest-rate cuts, the British Bankers’ Association said.

Banks granted 17,773 loans for house purchase, down 61 percent from the same month in 2007, the London-based BBA, which represents the U.K.’s biggest banks, said today in a statement. The number of home loans was 20,767 in October.

The British economy shrank 0.6 percent in the third quarter, more than previously estimated, the statistics office said today. While the Bank of England has reduced the benchmark interest rate to the lowest since 1951, banks that have been stung by the global financial crisis are reluctant to lend against houses as their value declines, and potential buyers are concerned about losing their jobs in the slump.

Car dealers: special offers

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The automobile industry is in great crisis. Sales of cars are falling almost everywhere. Car dealers invent different discounts and gifts to somehow revive demand. Discounts on different cars and different dealers in different times. Buy a car now without rebates are not reasonable, because you can find interesting suggestion from one of the dealers.
In our opinion, the prices of cars will continue to decline. The largest U.S. automakers are in a dire situation. The financial sector is in a difficult position, too. As a result, receive all kinds of loans more difficult now.

Cardiff, Wales
Lloyds TSB Group (carselect.co.uk)
discount to 32 %

Ford Fiesta 1.4
new price - £ 9995 (€ 11759)
old price - £ 11453 (€ 13474)
discount - £ 1458 (13 %)

Peugeot 207 1.4
new price - £ 8995 (€ 10582)
old price - £ 10578 (€ 12445)
discount - £ 1583 (15 %)

Renault Scenic 1.5 dCi 106
new price - £ 12430 (€ 14624)
old price - £ 18188 (€ 21398)
discount - £ 5758 (32 %)

London, UK.
Evans Helshaw
discounts to 31 %

Chevrolet Matiz 1.0 SE
new price - £ 5995 (€ 7053)
old price - £ 8280 (€ 9741)
discount - £ 2285 (28 %)

Ford Focus CC-2 Diesel
new price - £ 15995 (€ 18818)
old price - £ 20995 (€ 24700)
discount - £ 5000 (24 %)

Ford Ranger Thunder 4×4 2.5
new price - £ 13700 (€ 16118)
old price - £ 18176 (€ 21384)
discount - £ 4476 (25 %)

Renault Scenic dCi 85
new price - £ 10995 (€ 12935)
old price - £ 15905 (€ 18712)
discount - £ 4910 (31 %)

GDP of UK decreased at 0.5 %

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UK GDP in the third quarter of 2008 decreased compared to the previous quarter at 0.5%, reported Bloomberg News, referring to preliminary data from the National Statistical Office. This is the first decline in GDP since 1992.

Experts had expected the reduction of the rate at 0.2%.

The increase in GDP of Great Britain on the third quarter of 2007 was 0.3%. The experts predicted increasing that figure to 0.5%.

Economic activity in the service of Great Britain, which accounts for 75% of GDP, declined in the last quarter to 0.4% in the manufacturing sector - by 1%.

The financial crisis spread to all areas of the British economy - from banking to construction, and reducing the rate of GDP shows that the country is on the eve of the first recession since 1991.

This week, British Prime Minister Gordon Brown for the first time acknowledged the likelihood of a recession in the economy. The package of government assistance to banks in the amount of 500 billion pounds ($ 805 billion) as well as lowering the base interest rate the Bank of England to 0.5 percentage point, perhaps it was too late to stem further decline in the economy.

Houses prices in England and Wales slipped 6.2 %

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UK house prices fell for a 12th month running in September to stand 6.2 % lower than they were a year ago.
The drop of 1.0 % on the month to 165,300 pounds (decline in August was 0.9 percent).
In August, prices were 5.3 percent lower than a year ago.
On Sept 2, the government raised the threshold above which tax is paid on a home purchase to 175,000 pounds and announced measures to help first-time buyers and those struggling to make mortgage repayments.
Since then, strains in the banking sector have intensified, dealing a further blow to confidence and prompting a number of lenders to raise their mortgage rates.
The survey showed there was a decline both in the number of buyers registering with estate agents and the number of new properties coming onto the market.
Properties in September typically took more than 11 weeks to sell — almost twice as long as last year — and the percentage of the asking price being achieved fell to 90, the lowest level since the survey began.

P.S. If real estate prices in the UK are falling, the real estate prices in Bulgaria are continuing to grow.

Terrible tragedy in Spain

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Rescuers have told of a ’scene from Hell’ after 153 people were killed when a tourist plane crashed and burst into flames at Madrid airport.

The Spanair jet with 164 passengers and nine crew on board split in two as it smashed back on to the runway just seconds after lifting off. Of the passengers, 20 were children and two were babies.

There were reports of an explosion and a fire breaking out in an engine. The plane, an MD-82, had earlier been delayed from take-off for an hour for checks on a reported mechanical fault.

An unconfirmed report said the crash happened on the pilot’s second attempt at a take-off.

The pilot had returned to the stand after his original attempt because he realised there was a problem with the left engine, Javier Fernandez Garcia, the flight coordinator at Madrid airport, told Spanish newspaper El Mundo.

There were several children on board, including two babies. It was not immediately known if the babies were among the dead.

The Foreign Office said it was not aware of any British nationals involved in the crash.

Around 27 survivors were pulled alive from the wreckage and 23 of them were taken to hospital with serious injuries.

At least one is thought to have died on the way to hospital.

The Russian stock market on Friday closed in plus

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The Russian stock market on Friday closed in plus. MICEX index rose by 1.1%. Shares of Gazprom went up by 1.3%, Norilsk Nickel - at 1.4%, Sberbank - at 2.6%, Rosneft - at 1.8%.
At the market was still weighs Georgian-Ossetian conflict. Foreign investors withdraw money from Russia.

Poland will place missiles

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On Thursday USA and Poland reached  to place an American missile defense base on Polish territory. It’s strongest reaction so far to Russia’s military operation in Georgia.
Russia reacted angrily, saying that the move would worsen relations with the United States that have already been strained severely in the week since Russian troops entered separatist enclaves in Georgia, a close American ally. At a news conference on Friday, a senior Russian defense official, Colonel General Anatoly Nogovitsyn, suggested that Poland was making itself a target by agreeing to serve as host for the anti-missile system. Such an action “cannot go unpunished,” he said.

Those fears were codified to some degree in what Polish and American officials characterized as unusual aspects of the final deal: that at least temporarily American soldiers would staff air defense sites in Poland oriented toward Russia, and that the United States would be obliged to defend Poland in case of an attack with greater speed than required under NATO, of which Poland is a member.

Polish officials said the agreement would strengthen the mutual commitment of the United States to defend Poland, and vice versa. “Poland and the Poles do not want to be in alliances in which assistance comes at some point later — it is no good when assistance comes to dead people,” the Polish prime minister, Donald Tusk, said on Polish television. “Poland wants to be in alliances where assistance comes in the very first hours of — knock on wood — any possible conflict.”

A sense of deepened suspicions — and the more darkly drawn lines between countries in the region — were also apparent in the emotional reaction from Russia.

“It is this kind of agreement, not the split between Russia and United States over the problem of South Ossetia, that may have a greater impact on the growth in tensions in Russian-American relations,” Konstantin Kosachyov, chairman of the foreign affairs committee in the Russian Parliament, told the Interfax news agency on Thursday in Moscow.

The missile defense deal was announced by Polish officials and confirmed by the White House. Under it, Poland would host an American base with 10 interceptors designed to shoot down a limited number of ballistic missiles, in theory launched by a future adversary such as Iran. A tracking radar system would be based in the Czech Republic. The system is expected to be in place by 2012.

In exchange for providing the base, Poland would get what the two sides called “enhanced security cooperation,” notably a top-of-the-line Patriot air defense system that can shoot down shorter-range missiles or attacking fighters or bombers.

A senior Pentagon official described an unusual part of this quid pro quo: an American Patriot battery would be moved from Germany to Poland, where it would be operated by a crew of about 100 American military personnel members. The expenses would be shared by both nations. American troops would join the Polish military, at least temporarily, at the front lines — facing east toward Russia.

Russia has long opposed the deal, saying the United States was violating post-cold-war agreements not to base its troops in former Soviet bloc states and devising a Trojan Horse system designed to counter Russia’s nuclear arsenal, not an attack by Iran or another adversary.

Stop-and-start negotiations over the arrangement that was sealed Thursday had been under way for almost two years, with the Polish government reluctant to press the deal in the face of strong opposition — and retaliatory threats — from Moscow.

For its part, Washington had balked at some of Poland’s demands, in particular the sale of advanced air defense systems that were unrelated to shooting down ballistic missiles.

But in a sign of the widening repercussions of the conflict in Georgia, those concerns were cast aside, as the offensive by Russia’s military across its borders was viewed around the world as a sign of Moscow’s determination to reimpose its influence across the old Soviet bloc.

Evraz borrows $ 725 million to refinance North American division

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Evraz Group has raised a five-year revolving credit facility of $550 million and a five-year term loan of $175 million to refinance the debt of its North American division Evraz Inc. NA.
The Russian steel maker said interest on the two loan facilities was LIBOR + 2.5% and LIBOR + 3.25%, respectively. The loans are secured by the assets of Evraz Inc. NA and its subsidiaries.
RBS Greenwich Capital and GE Capital arranged the credit facility and RBS Greenwich Capital the term loan.

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