BUSINESS LIVE: BP profits slump 72%; Wayve raises more than $1bn; Retail sales sink in April

House prices will rise by 2.5 per cent this year amid an improved economic outlook and lower mortgage costs, property firm Savills has predicted.

It previously expected that prices would fall by 3 per cent.

Savills’ forecast is the latest to take a more upbeat view. Lloyds, Britain’s biggest mortgage lender, also recently said it saw prices rising this year. Lucian Cook, head of residential research at Savills, said the outlook had improved since its last forecast in November.

British self-driving tech startup Wayve has raised $1.05billion in a funding round led by Japanese investment bank SoftBank Group.

The funding will be used to accelerate the development and launch in production-model vehicles of its Embodied AI technology that can learn from and adapt to human behavior.

Nvidia also contributed in the Series C funding round as a new investor, as did existing investor Microsoft .

The latest funding brings Wayve’s total funds raised to just over $1.3billion and marks the largest investment yet in a British startup focused on artificial-intelligence technology.

Founded in 2017, Wayve’s autonomous driving technology uses AI that the startup says will enable vehicles to ‘navigate situations that do not follow strict patterns or rules, such as unexpected actions by drivers, pedestrians, or environmental elements’.

‘This will enable automakers and fleets to accelerate their transition from assisted to autonomous driving,’ Wayve boss Alex Kendall told the Reuters news agency.

Retail sales dropped 4 per cent in April versus the previous year, dampened by a spell of wet weather and an early Easter bank holiday.

The year-on-year drop is set against a growth of 5.1 per cent in April 2023, but was artificially worsened by the earlier timing of Easter, which previously pushed March sales unusually high, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor.

Nonetheless, even when correcting for the seasonal distortion, the average growth for March and April together was only 0.2 per cent, down on the three-month average of 0.5 per cent and the 12-month average of 2.2 per cent.

Helen Dickinson, chief executive of the British Retail Consortium, said: ‘Dismal weather and disappointing sales led to a depressing start to spring for retailers, even accounting for the change in timing of Easter.’

Disruption in the Red Sea is getting worse and will reduce the capacity of trade from the Far East to Europe by up to a fifth this quarter, shipping giant Maersk warns.

Container vessels have been rerouted around the southern tip of Africa since the end of last year to avoid attacks by Iranian-backed Houthi militants in the Red Sea.

BP posted a 72 per cent year-on-year decline in net profits for the first quarter as the energy giant suffered much lower gas prices.

Profit after tax tumbled to $2.3billion from $8.2billion in the first three months of 2023, as total revenue dropped 13 percent to $48.9billion.

Rival Shell last week said its net profit dropped 15 percent to $7.4billion in the first quarter.

Gas prices have dropped heavily since soaring after the invasion of Ukraine by major energy producer Russia in early 2022.

Chief executive Murray Auchincloss said: ‘We’ve delivered another resilient quarter financially and continued to make progress on our strategy. Oil production was up and our ACE platform in the Caspian is now producing.

‘We are simplifying and reducing complexity across bp and plan to deliver at least $2 billion of cash cost savings by the end of 2026 through high grading our portfolio, digital transformation, supply chain efficiencies and global capability hubs.’