Proactive Investors -
- FTSE 100 up 67 points at 8,253
- NatWest (LON:NWG) rallies on profit boost
- Rightmove calls for rate cuts
Rightmove calls for rate cuts to ease property market
Rightmove (LON:RMV) has shed its early morning gains and is now trading flat after investors weighed its resilience to headwinds with the overarching challenges of tough mortgage conditions.
Though the online estate agent kept its guidance for this year unchanged, Johan Svanstrom, chief executive, said: “With the election now concluded, the property market looks forward to potential interest rate reductions which will further stimulate activity".
Revenues in the half year to the end of June 2024 rose by 7% to £192 million with profits 1.8% ahead at £132,6 million and revenue per advertiser rising by 6% to £1,497 per month.
Existing home listings and transactions picked up with “a continued yet softening imbalance of demand and supply for rentals” and a tentative outlook for new home development volumes.
Adam Vettese at eToro said that while the market may be subdued, the longer term prospects for Rightmove remain positive.
"Whilst the current market may not be booming for listings, it makes it even less likely that any challenger will come in to take a chunk out of the firm's 86% market share," he said.
“With the election now in the rear view mirror and rate cuts on the horizon, as well as Labour’s promise to get Britain building, the outlook for the property market looks busier and Rightmove will undoubtedly benefit from this.”
Banks share data in 'dirty money' crackdown
Barclays (LON:BARC), NatWest, Lloyds (LON:LLOY) and other UK banks have provided the National Court Agency with customer data as part of plans to tackle "dirty money" flowing through the company's economy.
The project, which is the largest of its kind in the world, is set to take on criminal gangs and money laundering, which is estimated to cost the economy some £350 billion every year.
It comes around a year after more than six banks, including Lloyds and NatWest, started a trial in which they provided law enforcement with information on client accounts.
The NCA's project went live in May and has already highlighted eight potential crime networks that may be manipulating the financial system.
Other lenders involved in the project include Santander (BME:SAN), TSB, Metro Bank and Starling Bank.
Adrian Searle, director at the NCA, said: "The fundamental purpose is to bring together the collective efforts of law enforcement, government, regulators and the private sector to combat economic crime."
Disney and Warner Bros team up
Disney and Warner Bros have launched a new streaming bundle, combining Disney+, Hulu, and Max, to compete directly with Netflix (NASDAQ:NFLX), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN) Prime.
Available in the US for $16.99 per month with ads and $29.99 without ads, the bundle offers up to 38% savings compared to separate subscriptions.
This premium package brings together a vast array of content from brands like ABC, CNN, Disney, HBO, Marvel, Pixar, and Warner Bros, among others.
Subscribers can access a library featuring franchises such as Family Guy, Frozen, The Avengers, Star Wars, Batman, Game of Thrones, and Harry Potter.
Morning so far
The FTSE 100 is set for another day in the green after a strong open this morning, helped by strong results from NatWest and Rightmove.
While markets in Asia and the US deal with the current tech sell-off affecting stocks like Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT) and Meta, the UK's sentiment appears to be driven by the prospect of improving financial conditions.
NatWest said it expects full-year income to be ahead of its original forecast after a strong first-half performance, with the second quarter seeing close to every key metric beating guidance.
Analysts said the bank was boosted by an easing economic backdrop, with borrowers holding firm in the face of high interest rates.
Rightmove was also a top riser this morning after it backed its guidance in the face of tougher market conditions in the housing sector.
Despite homeowners facing higher borrowing costs, the online real estate platform still expects high single-digit revenue growth, helped as listings are currently booming.
In the US, Disney and Warner Bros have launched a new streaming bundle, combining Disney+, Hulu, and Max, to undercut rivals with 38% discout comapred to seperate subcriptions.
NatWest soars as it lifts profit guidance
NatWest shares have rallied close to 7%, making it the FTSE 100's biggest riser today after it lifted its full-year profit guidance.
The lender now expects full-year income to come to £14 billion, a notable bump from previous forecasts of between £13 billion and £13.5 billion.
It came as NatWest delivered an upbeat first-half financial update that surpassed market expectations.
Total income in the period came to £7.1 billion with operating profit of £3 billion. Though these results represented a year-on-year decline, they still managed to surpass forecasts.
Matt Britzman, senior equity analyst at Hargreaves Lansdown (LON:HRGV), called them a “knockout set of results”.
NatWest announced total shareholder returns of £1.7 billion for the first half of 2024. This includes an interim dividend of 6p per share, reflecting a 9% increase from the previous year's dividend.