Latest Land Registry Results show Rise in UK House Prices, Lloyds Rumours

The Land Registry in the UK (aka Her Majesty's Land Registry) has been a government department since 1862 that keeps a register of title to freehold and leasehold land in England and Wales. Scottish land titles are maintained by RoS ("Registers of Scotland"). LR said prices rose by 1.7% in July, the biggest monthly leap in 5 years, though prices are overall 11% lower than last year.

LloydsTSB is rumoured to be ruminating a sale of businesses following its bailout, including Scottish Widows, its insurance and money management division, and Clerical Medical.

nationalisationfears( lloyds ), brightsparks(X) ? X=kfc, X=gameaccount.

Downside

takeover(lloyds, hbos, X) ? X = jan09.
megabank(uk, lloydshbos).

expectedloss(lloyds, gbp(8.5bn)),reasons(X). ? X=default(hbosloanbook, gbp(11bn)), X=lloyds_stricter_accountingrules.


Upside
brightsparks(X) ? X=kfc, X=gameaccount.
newjobs(kfc, uk, X) ? X = 9000. stores(kfc, uk, X). ? X=760.
spend(gbp(150m), U, V).? U = threeyears, V=fiveyears.
partner(gameaccount, X). ? X = williamhill, X = galacoral.
stakedvia(gameaccount, gbp(100m), X). X=lastquarter.

HBOS and Lloyds TSB in merger talks, Barclays buys Lehman Brothers North America, Morgan Stanley ruminating merger

Announcement came after a third disastrous day of trading in HBOS shares. HBOS dropped 19% during the day from 182 to 147. HBOS was admitted to trading on 10 September 2001. The government instigated Lloyds TSB to take HBOS under its wing, acting quicker than it did in last year's Northern Rock crisis. Merging the two will create the UK's fourth largest bank by assets.

Barclays takeover of Lehman North America ($1.5bn for the real estate and $250m for the business) was announced. The advisers on the deal, according to Bloomberg, were Credit Suisse Group AG, Deutsche Bank AG and JP Morgan Cazenove Ltd.

The cost of credit protection on Morgan Stanley's debt has accelerated over the last two days. Morgan's stock price is down 46% this year. They are rumoured to be mulling a merger (with Wachovia). The credit crisis has meant the financial landscape is changing fast. There is huge consolidation in the banking sector. Recent turbulence suggests the market will head towards more regulation, particularly of hedge funds, and more limits on risk taking and leverage.

Market virus.