Thanks for joining me. Britain’s largest housebuilders have revealed a significant decline in profitability and house completions as consumers face challenges due to rising interest rates.
Barratt Developments experienced a 16.2% drop in its adjusted annual pre-tax profits to £884.3m due to decreased mortgage affordability.
5 things to start your day
1) Saturday post ‘under review’ as struggling Royal Mail looks to cut costs | The company claims its current obligations are ‘outdated and in need of urgent reform.’
2) British chipmaker Arm to cut valuation ahead of US listing | There are concerns about the company’s growth since its filing to go public two weeks ago.
3) Shoplifting no longer seen as a crime, says Asda chairman | Lord Stuart Rose joins calls for the police to take more action against the wave of thefts.
4) Reward savers and boost the economy with the ‘Great British Isa’, says top fund manager | Mike O’Shea urges policymakers to create a tax-free investment vehicle to increase UK investment.
5) Facebook scraps $1.6bn funding scheme as Sir Nick Clegg’s project fails | The company shifts its focus to short-form video as it faces stiff competition from TikTok.
What happened overnight
Shares were mostly lower in Asia after a decline on Wall Street as traders returned from a long holiday weekend.
Japan’s Nikkei 225 index advanced, but most other regional markets experienced declines.
Crude oil prices rose following Saudi Arabia and Russia’s announcement of a fresh supply cut, which adds to inflationary pressures at a time when investors hope to see central banks backing away from interest rate hikes.
Tokyo’s Nikkei 225 increased 0.5% to 33,208.26. In Seoul, the Kospi declined 0.6% to 2,567.12.
The S&P/ASX 200 in Australia slipped 0.8% to 7,257.70 as the government reported that the economy grew at a 2.3% annual pace in the last quarter. In quarterly terms, it expanded by a modest 0.2%, which was better than expected.
Hong Kong’s Hang Seng index sank 0.8% to 18,306.24, extending losses as the market eases back from gains fueled by recent stimulus measures for the ailing Chinese property market.
The Shanghai Composite index shed 0.3% to 3,143.62. India’s Sensex edged 0.1% lower.
Stocks closed lower on Wall Street as traders returned from a long holiday weekend.
The S&P 500 fell 0.4% to 4,496.83. The Dow Jones Industrial Average dropped 0.6% to 34,641.97. The Nasdaq composite dipped 0.1% to 14,020.95.
The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, rose to 4.27% from 4.18% late Friday.
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