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Business - Need to Know

Afternoon Edition

UK house prices fell 0.3 per cent in February from a month earlier, according to the latest figures from Halifax. That is the first monthly drop since October.

On an annual basis the pace of growth slowed to 8.3 per cent, down from July’s peak of 10.2 per cent.

However, it is worth noting that monthly figures can be volatile and in the three months to February house prices were 2.6 per cent higher than the previous three months. Kathryn Hopkins, our Property Correspondent, has the details here.

As expected the Bank of England has held interest rates at the record low of 0.5 per cent for the 72nd consecutive month.

Coming up shortly, Mario Draghi, the European Central Bank president, is expected to outline the details of the bond-buying programme that was announced at its January meeting.

Attention will not just be on the details of its latest quantitative easing, but also on its latest growth forecasts, with an expected upgrade from 1 per cent to 1.3 per cent this year.

We will also get inflation forecasts. Particular attention will no doubt be paid to 2016, as any upward revision could mean QE will have a more limited shelf life than many had initially thought.

That press conference will be at 1.30pm GMT and you can follow it live on our Business Now live blog.

Finally, don't forget to follow me on Twitter - @becclancy - for regular updates throughout the day.

Have a great day.

Rebecca Clancy
Breaking News Editor, Business
The Times

The Footsie continued to flirt with the prospect of surpassing the 7,000 barrier as it drifted around record highs. The blue chip index of the UK's leading public companies was up 27 points, 0.4 per cent, to 6,946.62 at midday, pushed higher by Aviva.

The insurer was the biggest riser on the FTSE 100, adding 6.25 per cent to 565.25p, after it posted a 6 per cent rise in 2014 operating profit and hiked its dividend payout. Rival Friends Life was also towards the top of the leaders' board as investors liked a 38 per cent jump in profits.

Alex Ralph
Business Correspondent

The new car market continues to set records, according to the Society of Motor Manufacturers and Traders.

Today the Federal Reserve releases the results of its annual bank stress tests, which measure how well each financial institution would hold up in a simulated crisis. Banks are expected to keep their top-tier capital above 5 per cent. The tests will be followed in a week by another exercise to see whether the banks can execute planned shareholder returns, such as dividends and share buybacks.

Costco, the discount warehouse shopping club, reports second quarter results before the opening bell. The company has said that net sales for the three month period ending February 1 increased 6 per cent to $49.01 billion, beating general retail sales over the same period. However, comparable store sales and international sales were hit by the strong dollar and falling petrol prices. Earlier this week the company named Citigroup and Visa as its credit partners, replacing American Express. Wall Street is expecting earnings per share of $1.18 on $27.7 billion in revenue, against $1.05 and $26.31 billion for the same period last year.

The Labor Department reports on the number of new claims for state unemployment benefits made last week. Economists expect a drop of 18,000 to 295,000. This means that the four-week moving average remains below 300,000 and is indicative of labour market conditions that continue to improve. The report is out at 1.30pm GMT.

At 3pm GMT, the Commerce Department reports on the level of factory orders for January. Economists expect new orders for manufactured goods to have increased by 0.2 per cent in the month, after a 3.4 per cent fall in December. The plunge in petroleum product prices is expected to depress the overall figure.

Greg Smith, chief executive of Boeing, will speak at the JP Morgan Aviation, Transportation and Industrials conference in New York, today. He is likely to be asked about the growing mountain of deferred costs Boeing has amassed producing the 787.

Markets: Futures suggest a positive day on Wall Street. The Dow Jones is expected to open up 23 points at 18,109, the S&P to rise 2.75 points to 2,099.25 and the Nasdaq to grow 8.25 points to 4,452.50.

Alexandra Frean
US Business Editor
@freanie

Admiral Group's 2014 was the year of the baked Alaska - hot and cold in a single bite
Henry Engelhardt, chief executive, helps investors digest the insurer's annual results
Today's FTSE 100 risers and fallers
Up (%)
Aviva 6.25
Friends Life Group 5.76
ITV 2.51
GKN 2.39
Schroders 2.27
* As at noon
Down (%)
Rio Tinto -2.34
HSBC Holdings -2.32
RSA Insurance Group -1.38
easyJet -1.26
Standard Chartered -1.22
* As at noon
The Markets Today
FTSE 100 6,946.62 0.40%
FTSE 250 17,240.22 0.61%
Cac 4,961.18 0.89%
Dax 11,471.57 0.71%
Brent Crude 61.69 0.78%
Gold 1,200.10 -0.04%
GBP/USD 1.5243 -0.13%
GBP/euro 1.3795 0.16%
10Y Gilt 128.273 -0.06%
* As at noon
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