Proactive Investors -
- FTSE 100 down 26 points at 7,412
- Rising oil price renews fears of rise inflation
- Bridgepoint (LON:BPTB) buys ECP in £835 million deal
NatWest confirms Haythornthwaite as new Chair
NatWest Group PLC (LON:NWG) has confirmed the appointment of Rick Haythornthwaite as chair succeeding Sir Howard Davies.
Haythornthwaite will NatWest board as an independent non-executive director on January 8 2024 and take over as chair on April 15, 2024, when Sir Howard Davies will stand down from the board.
Mark Seligman, senior independent director, said: "After careful consideration of a number of high-quality candidates, the board has unanimously chosen Rick as our new Chair."
He said he was a "highly experienced Chair who combines a successful commercial career with a deep knowledge of financial services markets and technology, as well as a strong track record of delivery at significant customer-facing organisations."
Haythornthwaite said: "It is a privilege to assume the role of NatWest Group Chair."
Haythornthwaite is chair of Ocado (LON:OCDO) Group and a non-executive director of NYSE-listed Globant SA.
He will step down as a director of Globant and from his private company directorships apart from the AA where he will become a non-executive director.
Here are some of today's risers and fallers in London
Genedrive PLC (LON:GDRG) shares soared 10% higher after the molecular diagnostics company said it secured UKCA marking for its new Genedrive CYP2C19 System, allowing it to start commercialisaton of the point-of-care test in the UK.
UKCA is the new UK product marking required for certain products placed on the market in Great Britain. It covers most products that previously required the European Union’s CE mark
Mosman Oil and Gas Ltd (LON:MSMN) jumped 44% after lodging its Year Three report on EP 145, its exploration block in the Amadeus Basin in Australia, with the Northern Territory government.
The current work schedule on the permit will be the acquisition of seismic in early 2024, subject to funding and APAA and government approvals.
WH Smith PLC (LON:SMWH) shares fell 7% despite a solid trading update on disappointment that the firm didn't raise guidance once more.
"The shares trade on a mid-teens PE and are excellent medium and long-term value, but the lack of an upgrade today may mean they do not do much up to the prelims in November," said analysts at Peel Hunt (LON:PEEL).
Shares in Surgical Innovations Group (AIM:SUN) fell over 15% after it warned on profits, saying disruptions to manufacturing productivity and in the supply chain have persisted since its June update and are also expected to hit second-half profits.
Directors guided to a "modest" profit at the adjusted EBITDA level for 2023, with "better momentum" in the 2024 financial year.
Eurozone construction activity slows in August
It's not just construction in the UK that is suffering.
Over in the eurozone, construction acrivity declined in August at the fastest pace since the start of the pandemic as rising interest rates hit building activity.
???????? “Gloomy” - that’s how the HCOB Construction PMI report characterizes eurozone activity in the sector in Aug“Companies continued to reduce activity owing to sustained declines in new orders. In response, firms once again scaled down input buying, reduced employment levels and… pic.twitter.com/E3EZfI73tF
— Nikolay Kolarov, CFA (@libertniko) September 6, 2023
The HCOB eurozone construction purchasing managers’ index, which tracks total activity in the sector, edged down to 43.4 in August from 43.5 in July, its lowest level so far this year, and taking it further below the 50 level that separates growth from contraction.
Housebuilding declined at the fastest pace since April 2020, while commercial construction and infrastructure activity also declined but at a slower pace.
Barratt falls after results but it's not all doom and gloom
Shares in Barratt Developments (LON:BDEV) remain in negative territory, down 1.7%, following its annual results.
Riss Nould as AJ Bell notes the UK’s biggest housebuilder is a good bellwether for the wider sector so gloomy results are unsurprisingly dragging down the peer group.
"The costs of doing business are still rising while increased borrowing costs for consumers are hitting demand and house prices," he pointed out.
“Beset by planning issues too, Barratt is announcing marked reductions in its build targets for 2023," he added.
But unlike during the global financial crisis, the last time the industry was really shaken to its foundations, most housebuilders, Barratt among them, have fixed the roof while the sun was shining and have fairly robust finances, he added.
But Aarin Chiekrie, equity analyst at Hargreaves Lansdown (LON:HRGV) felt "it’s not all doom and gloom."
Build cost inflation looks set to ease to mid single-digits this year while a sharp reduction in land spend last year more than offset the share buyback programme, helping to keep Barratt’s net cash position broadly flat at a mighty £1.1 billion.
"That provides plenty of flexibility to smooth out any future bumps in the road," he reckons.
But with interest rates set to remain higher for longer, consumer confidence and spending will continue to come under pressure this year, it could be a while before momentum really picks back up again, he thinks.
"Barratt’s valuation’s already trading well below the long-term average, so the market slowdown looks well priced in", he believes.