BUSINESS LIVE: Barratt waives CMA’s Redrow considerations; Job openings up

Plus500 has lifted full-year profit expectations after seeing a jump in new customers in the first half of 2024.

The FTSE 250-listed Israeli stock trading platform revealed a 13 per cent rise year-on-year in new customers for the six months ended 30 June.

Barratt Developments is set to complete its acquisition of Redrow later this week, six months after initially announcing the takeover.

The £2.5billion deal would create Britain’s largest housebuilder, with the ability to construct about 23,000 homes per year and earn over £7billion in revenues.

Energy bills will rise 9 per cent in October, experts warn – just as households need to turn their central heating on.

The average home now pays energy bills of £1,568 a year, for a deal with prices limited by the Ofgem price cap.

Property asking prices fell for the first time this year in August, according to Rightmove, despite mortgage rates falling over recent weeks.

The average newly-listed home for sale fell in price by 1.5 per cent, an average of £5,708.

Universal is in talks with ministers about tax incentives as it looks to build a multibillion-pound resort in Bedford.

The US company, owned by Comcast, has snapped up 500 acres of land in the UK as a potential site for Europe’s largest theme park.

But now Universal is in talks with officials about tax and infrastructure arrangements – which could be a make-or-break for a site, according to the Financial Times.

London-listed stocks have opened the week slightly lower, weighed down by aerospace and defence shares, but investor optimism over a potential September rate cut in the United States limits losses.

Aerospace and defence stocks have inched 1.3% lower, tracking losses in European defence stocks following reports the German federal government would reject new military aid requests for Ukraine due to spending cuts.

On the flip side, precious and industrial metal miners have inched 0.7 per cent higher each, as gold prices trade near historic levels while copper gains on waning fears of US recession and Chinese demand concerns.

Real estate and real estate investment trusts are marginally higher after property website Rightmove said British estate agents reported higher buyer interest since the Bank of England’s interest rate cut.

Among individual stocks, Plus500 has gained 4.1 per cent to top the FTSE 250 index after the online trading platform forecast its annual results to be above market view and also recorded a 13 per cent jump in new customers in the first half of the year.

Susannah Streeter, head of money and markets, Hargreaves Lansdown:

‘Stocks look set to struggle for a sense of direction at the start of a week dominated by ongoing conflicts and US domestic politics, while China’s economic difficulties come into focus again.

‘The FTSE 100 has opened lower, as investors assess fresh data indicating a further fall in foreign direct investment in China, with an acceleration in the pace of the decline.

‘The precariousness of the latest talks in the Middle East amid high tensions between Russia and Ukraine may also be weighing on sentiment.

‘The pause for breath comes after a week of sharp recovery, boosted by hopes that the US economy will avoid a hard landing, while an orderly but rapid reduction in interest rates looks set to unfold.

‘The expectation of lower borrowing costs in the US has pushed the dollar lower against a basket of currencies, while the yen has gained ground on expectation of another interest rate hike from the Bank of Japan, which has weighed sharply on the Nikkei.

‘Minutes from the Fed, out later this week, will be closely watched for further clues about the monetary policy path.

‘But it will be Fed Chair Jerome Powell’s speech on Friday at the central bankers meeting in Jackson Hole that will be the big draw, as he’s expected to cement expectations for a quarter of a percentage point cut in September, and more reductions are likely to follow by the end of the year.’

Online trading platform Plus500 has forecast annual results to be above market view this year after recording a 13 per cent jump in new customers in the first half.

The company said it would return $185.5 million to its shareholders, comprising a share buyback plan of $110 million and dividends of $75.5 million.

Trading platforms benefited from increased market volatility during the pandemic and in 2022 following Russia’s invasion of Ukraine.

Despite a quieter 2023, trading platforms saw a year-end revenue spike due to heightened volatility from the conflict in Gaza.

Analysts expect the Israel-based company to log annual revenue of $697.8 million with a core profit of $314.6 million, according to a company-compiled consensus.

Anthony Codling, managing director of RBC Capital Markets:

‘It is good for Barratt, Redrow and homebuyers in general that Barratt has chosen to push ahead with its proposed merger with Redrow despite the small issue raised by the CMA.

‘We view the CMA’s issue as a minor one that can be easily resolved and not an issue big enough to stand in the way of the planned combination of Barratt and Redrow.

‘The sooner the merger is completed the sooner homebuyers can benefit from a larger choice of homes offered for sale by the newly formed combined group.’

No one wants Rachel Reeves to succeed more than I do. Not because I voted Labour – I didn’t – but because I want the country to flourish.

And because, as the first female Chancellor, she could be an inspiration to women.

The world’s financial markets will be on tenterhooks this week as top central bankers gather to discuss the global economy.

Officials from the US Federal Reserve, the Bank of England and the European Central Bank (ECB) will meet for the annual conference in Jackson Hole, Wyoming.

But all eyes will be on Fed chairman Jerome Powell when he delivers a speech on Friday about the US economic outlook.

Ted Baker will close all its remaining 31 stores tomorrow – putting more than 500 jobs at risk.

The firm behind its UK shops – No Ordinary Designer Label – collapsed into administration in March after failing to woo younger shoppers.

This led administrators to shut 15 shops.

Job vacancies have risen for the first time this year as confidence grows among employers.

Listings for UK roles hit 862,043 in July, up 1.1 per cent from the month before, according to job site Adzuna.

The uptick was driven by graduate roles, as well as legal and manufacturing positions.

Barratt Development’s £2.5billion takeover of rival Redrow is set to go ahead after the housebuilder agreed to address concerns raised by the competition regulator.

The group said it intend to complete the combination ‘later this week’, thereby removing ‘uncertainty for the employees, supply chain and wider stakeholder groups of both businesses’.