Financial markets now certain the RBA will hike interest rates in 2026

Financial markets are now pricing in a 100% chance the Reserve Bank will hike rates in 2026, in what would be a blow to mortgage holders but may take some steam out of an overheating property market.The latest forecasts represent a turnaround from just two weeks ago, when traders were factoring in an even chance that the next RBA move would be a cut by its May meeting.It comes as data showed inflation is now moving in the wrong direction, alongside this week’s national accounts and household spending figures which showed the economy is accelerating into the new year.Adam Donaldson, the head of interest rates strategy at the Commonwealth Bank, said “the market has come to the conclusion that the Reserve bank won’t be cutting rates any further”.“Basically, from February onwards, the market is starting to price some risk that rates will go up

UK first-time buyers in best position to snap up property in a decade, data shows

Buyers attempting to get on to the property ladder in the UK have received a lift, after figures from Halifax showed they are in the best position to snap up a home in a decade.Britain’s biggest mortgage lender said that the average price of a UK property hit a record high of £299,892 in November, after a marginal month-on-month rise.However, Halifax said when property prices were compared with average incomes, affordability was at its strongest since late 2015.The lender added that taking into account higher interest rates – the average two-year fixed mortgage rate is 4.85%, according to Moneyfacts – mortgage costs as a share of incomewere at their lowest level in about three years

Skipton in Yorkshire named happiest place to live in Great Britain

It is nicknamed “the gateway to the Dales”, is home to one of England’s best-preserved medieval castles and, for trivia fans, was the birthplace of half of Marks & Spencer. Now, the Yorkshire market town of Skipton has been named “the happiest place to live” in Great Britain.It received the accolade from the property website Rightmove, which runs a “happy at home” index that is now in its 14th year. The survey asks residents how they feel about their area based on a range of factors.With its picturesque location on the edge of the Yorkshire Dales, Skipton was ranked particularly highly for its access to nature and green spaces, the friendliness of the people and access to essential services such as schools and doctors

‘Tough market conditions’ hit UK half-year retail sales at Frasers Group

The owner of Sports Direct and Flannels has said sales have fallen at its UK retail businesses amid heavy discounting by rivals and “very subdued” consumer confidence.Frasers, which is controlled by the former Newcastle United owner Mike Ashley, said sales at its UK sports division were down 5.8% in the six months to 26 October to £1.3bn despite growth at the main Sports Direct chain because of “planned decline” at its Game outlets and the Studio Retail online arm.Michael Murray, the chief executive of Frasers Group, which also owns House of Fraser department stores, Jack Wills and dozens of other brands and a number of shopping centres, said “market conditions are tough” and “consumer confidence is very subdued”

Dryrobe wins trademark case against rival waterproof changing coat D-Robe

Dryrobe, the maker of huge waterproof towel-lined coats favoured by cold water swimming fans, has won a trademark case against a smaller label that must now stop selling items under the D-Robe brand within a week.A judge at the high court in London ruled the company was guilty of passing off its D-Robe changing robes and other goods as Dryrobe products and knew it was infringing its bigger rival’s trademark.The ruling described a Dryrobe as “an oversized waterproof coat with a towelled lining, designed for surfers or swimmers to change under whilst also drying them, keeping them warm, and protecting them from the weather”.The company has rigorously defended its brand against being used generically by publications and makers of similar clothing and is expected to seek compensation from D-Robe’s owners for trademark infringement.Dryrobe was created by the former financier Gideon Bright as an outdoor changing robe for surfers in 2010 and became the signature brand of the wild swimming craze

Budget uncertainty triggers plunge in UK construction activity; Trustpilot shares slump after short-seller claims – as it happened

Newsflash: Britain’s construction sector has suffered its sharpest downturn since the first Covid-19 lockdown forced building sites to shut five and a half years ago.Activity across housebuilding, commercial building work and civil engineering all tumbled last month, a new survey of puchasing managers at building firms has found.Construction firms are blaming fragile market confidence, delays with the release of new projects and a lack of incoming new work.The report, by data firm S&P Global, shows there was “a sharp and accelerated reduction in output levels across the construction sector”. Many builders reporting that market conditions were challenging, with new orders slumping at the fastest rate in five and a half years, and job cuts rising