UK FINANCE PUBLISHED LATEST HOUSEHOLD FINANCE DATA

Gross mortgage lending across the residential market in October 2019 was £25.5 billion, 0.9 per cent lower than in the same month in 2018, according to the latest Household Finance Update from UK Finance published today. Mortgages approvals by the main high street banks for home purchases in October were 3.0 per cent higher, remortgage approvals were 12.7 per cent up, while approvals for other secured borrowing were 2.1 per cent lower compared to October 2018.

The data also shows that the £11 billion of credit card spending in October 2019 was 2.3 per cent lower than in September 2018, with repayments remaining in line with credit card spending, demonstrating that consumers are managing their finances effectively overall.

EU CLOSE TO AGREEING NEW CLEARING HOUSE RULES

Governments across the European Union are reported to be close to agreeing new rules for handling failures of clearing houses, Reuters (online only) reports. These changes would increase the burden on such firms but will limit the impact of losses to the financial system.

Clearing houses were at the centre of the 2008 financial crisis but regulators failed to agree then on how to handle their failure successfully. If these new rules are agreed, they could set a new global standard for regulators.

NEWS IN BRIEF

The latest economic outlook from PricewaterhouseCoopers (PwC) reveals the UK economy could be £83 billion larger if slower areas could make up half of the efficiency gap (City AM, print only, p5).

Global trade remains subdued with the world economy contracting in September by 1.3 per cent, according to new CPB World Trade Monitor data, reversing the gains made in the previous two months (Financial Times, £, p6).

The latest Confederation of British Industry (CBI) survey of retailers predicts shops could return to sales growth next month following six months of falling demand (i, print only, p40).

The Financial Conduct Authority (FCA) will ban the marketing to retail investors of unregulated mini bonds (Financial Times, £, online only).

A majority of EU politicians are expected to declare a ?climate emergency? ahead of the United Nations climate conference in Madrid, according to City AM (print only, p15).

WHAT THE COMMENTATORS SAY

The financial services industry needs to grapple with the new era of artificial learning (AI) and machine learning, comments Patrick Hosking, financial editor of The Times (£, p43). Mr Hosking writes that while these technological advances can be beneficial, they have the potential to be disruptive and dangerous if handled incorrectly - a recent survey by the Bank of England and Financial Conduct Authority found that two thirds of firms surveyed are using AI in some form already. He concludes that regulators should be careful they are not blinded to the potential dangers of AI.

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Mike Peckham, managing partner, and Stephen Head, senior partner, Gadhia Consultants and Huntswood, blog on how security measures must evolve to defeat the cyber threat.

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