Will this unloved sector perform like House Builders did?
Taking Stock on Friday 5th January 2024
Will this unloved sector perform like House Builders did?
Companies discussed on “Taking Stock” today:
05:15 Next #NXT
06:00 JD Sports #JD.
10:20 Taylor Wimpey #TW.
12:45 Destiny Pharma #DEST
13:30 Angle Plc #AGL
15:15 C4X Discovery #C4XD
19:19 Loungers #LGRS
19:50 Mitchells & Butler #MAB
20:14 JD Wetherspoon #JDW
21:45 Revolution Bars #RBG
28:38 Angling Direct #ANG
30:50 Shoe Zone #SHOE
36:00 Supreme #SUP
TOP BUSINESS STORIES
UK house prices rise for first time in eight months
British house prices rose in annual terms in December for the first time in eight months, data from mortgage lender Halifax showed on Friday, adding to signs of a stabilisation in the property market after a hit from higher borrowing costs.
House prices were 1.7% higher than in December 2022 - when the market was hammered by the "mini-budget" crisis of former Prime Minister Liz Truss.
In monthly terms, prices rose by 1.1% from November, Halifax said.
Slump for UK builders eases in December on rate cut hopes - PMI
Britain's construction sector showed signs in December that it might have seen the worst of a slump caused by the steep climb in interest rates, a survey showed on Friday.
The S&P Global/CIPS UK construction Purchasing Managers' Index (PMI) rose to 46.8 from November's 45.5 but remained below the 50.0 growth threshold for a fourth month in a row.
Companies remained worried about Britain's economic outlook, especially for commercial projects, Tim Moore, economics director at S&P Global, said.
Commercial construction activity shrank by the most since January 2021, hit by the Bank of England's 14 back-to-back increases in borrowing costs to fight inflation which have taken its benchmark interest rate to the highest level in 15 years.
"However, expectations of falling interest rates during the months ahead appear to have supported confidence levels among construction companies," Moore said.
Around 41% of firms which took part in the December survey saw business activity rising over 2024 while 17% forecast a decline, a contrast with overall negative sentiment a year earlier, S&P Global said.
House-building remained the biggest drag on the overall sector but the rate of decline was the least severe since July last year. Similarly, civil engineering activity shrank at a softer pace in December.
Starmer refuses to commit to unfreezing tax thresholds if Labour wins election
Sir Keir Starmer has refused to commit to unfreezing tax thresholds if Labour wins the next general election, saying he won't make promises he can't keep.
However, the Labour leader was firmer in his position on inheritance tax, telling Sky News if the Tories reduce it, he will reverse that change because he does not believe "further tax cuts for those that are very wealthy" is the right way forward.
He also warned the Tories he will meet their "fire with fire" as he expects Rishi Sunak will "go low" in a fiercely contested general election.
It comes after the prime minister indicated he will call the national vote in the second half of this year.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.