Good morning,
The papers are dominated by one piece of news and its implications this morning: the resignations of Rishi Sunak and Sajid Javid. The chancellor and health secretary have been replaced by Nadhim Zahawi and Steve Barclay respectively, with Boris Johnson’s dwindling cabal of allies saying this is good news for the PM. Yes, Zahawi does seem rather more keen to make populist tax cuts, but most pundits say the end is nigh for the Johnson premiership. The only real question is how nigh, and who will replace him?
Talking of taxes, the government is planning to make sovereign wealth funds pay corporation tax on property and commercial enterprises.
And Swiss bank UBS has decided to sublet two floors at its landmark London headquarters, 5 Broadgate, after its hybrid working policy has left it with a glut of office space.
Meanwhile, Intermediate Capital has entered exclusive talks to buy Wembley Arena from Quintain.
Property dealmaking is set to plummet and values to fall as investors adapt to a “new paradigm” of rising rates and a global economy in turmoil, Brookfield’s UK boss has said. But he still has his eyes on British Land.
The pound has fallen to a two-year low against the dollar and stocks have slid over fears that higher energy prices will push the UK economy into recession.
But the Bank of England has warned lenders against making “excessive” cuts in lending to households and businesses, saying it would be “counterproductive”.
Still, things are looking good for the auctions market, with totals raised across property auctions in the UK rising by 25% over the quarter to reach £480m in May.
DHL is planning to spend £190m creating 10 new collection and delivery depots across the UK. It will create a new hub at SEGRO’s Coventry Airport site and also expand 20 existing sites.
Rula Developments has gained detailed planning consent for Fulwood 190, a 190,000 sq ft speculative warehouse near Huthwaite in Nottinghamshire.
But £450m of taxpayers money has been wasted on new Brexit border buildings that have never been used.
Demand for solar panels has doubled this year as homeowners seek to protect themselves from rising energy prices.
But in Finland homes are being heated using a giant sand battery. Using a 22 ft tall silo filled with 100 tonnes of ordinary builders’ sand and some clever plumbing, the fiendishly clever Fins are able to heat 100 homes.
And finally, if the prime minister is still feeling positive about his chances for survival, he might want to check the odds. While they vary between bookies, the aggregated odds of the PM being booted out this year are 1/7 – meaning that he has just one chance in seven of staying put – and shortening. The odds of him lasting until next year are given as 10/1. But who will replace him? That is less clear. Rishi “Brutus” Sunak has 4/1 odds of becoming the next Conservative leader, but only 5/1 of being the next PM. Interestingly, this doesn’t put him very far ahead of international trade minister Penny Mordaunt at 9/2. Michael Gove is still trailing at 37/1, which isn’t that far behind Tony Blair, at 53/1. The only thing the bookies agree on is that Johnson is toast. But if he wants to carry on burying his head in the sand, there is a silo in Finland…
