DCC interim revenues grow, Persimmon sees higher cancellation rates
By Iain Gilbert
Date: Tuesday 08 Nov 2022
(Sharecast News) - London pre-open
The FTSE 100 was called to open 32.7 points lower ahead of the bell on Tuesday after wrapping up the previous session 0.48% weaker at 7,299.99.
Stocks to watch
Sales and marketing firm DCC posted improved interim revenue and operating profits on Tuesday thanks to "strong growth" in its "seasonally less significant" first half.
DCC said interim revenues had surged 44.1% to £10.83bn, while adjusted operating profits rose 11.9% to £221.2m and adjusted earnings per share were 6.7% higher at 146.4p.
UK housebuilder Persimmon has warned of fewer completions and a hit to margins from falling house prices amid the cost-of-living crisis.
Persimmon said on Tuesday that cancellation rates had risen from 21% to 28% in the last six weeks after the government's disastrous mini-budget - which saw thousands of mortgage offers pulled from the market - and rising interest rates.
Newspaper round-up
Germany is keen to talk to Britain about a solidarity pact that would allow Europe's largest consumers of natural gas to bail each other out if an extreme cold snap were to create shortages this winter, German officials have said. Such an agreement could be mutually beneficial for both London and Berlin, the German civil servant in charge of rationing in the case of a supply crisis told the Guardian in an interview. - Guardian
A slump in the pound has seen US investors put almost $1.0bn into London commercial property in recent months even as other international investors take flight. American investors spent $929.0m on commercial property such as offices, shops and warehouses in the capital between July and September, according to data compiled by Savills. That was almost double the $479.0m invested by US businesses in the second quarter. - Telegraph
Jeremy Hunt is set to announce a new tax raid on inheritance as he battles to balance the books at next week's Autumn Statement. The Chancellor and Rishi Sunak are understood to have agreed to freeze the threshold above which people must pay tax for another two years. - Telegraph
Global corporations including UPS and Manpower were among 18 companies pursued by the UK government for failing to comply with rules governing the treatment of suppliers, a criminal offence punishable by fines. The business department launched proceedings against them for failing to abide by rules related to the reporting of supplier-payment performance, The Times can reveal. They all complied with the rules after the government intervened - but one, part of Europe's largest veterinary group, took more than three months to do so. - The Times
A leading British fund manager has been increasing its investment in debt issued by UK companies in the belief that the rapid raising of interest rates by central bankers could be nearing its peak and that the risk of borrowers defaulting is already priced into corporate bonds. The yields on UK corporate bonds have risen sharply since the start of this year on the back of the increase in government debt and fears of growing pressure on companies as the economic outlook darkens. - The Times
US close
Wall Street stocks closed higher on Monday as investors looked ahead to this week's midterm election and the publication of the all-important consumer price index.
At the close, the Dow Jones Industrial Average was up 1.31% at 32,827.00, while the S&P 500 advanced 0.96% to 3,806.80 and the Nasdaq Composite saw out the session 0.85% firmer at 10,564.52.
Reporting by Iain Gilbert at Sharecast.com
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