Banking stocks under pressure in weaker FTSE 100
08:39 , Graeme Evans
The FTSE 100 index is down by 38.45 points to 8202.20, with traders largely on the sidelines ahead of this afternoon’s US non-farm payrolls report.
The biggest fallers have come from the banking sector after Barclays shares dropped 3.95p to 224.6p and NatWest retreated 4.2p to 335p.
Associated British Foods lost another 32p to 2257p after yesterday’s update, while Burberry is down 15.8p to 621.6p ahead of its imminent FTSE 100 relegation.
Berkeley Group shares are 20p cheaper at 4970p after it reiterated profit guidance in its latest trading update
Medical devices firm Convatec and gambling group Entain are among the stocks up by around 1% on a shortened risers board.
The FTSE 250 index is down by 43.72 points to 20,718.78.
Berkeley stands by guidance after ‘stable trading’ and backs government’s planning reform
07:39 , Michael Hunter
London-focused house builder Berkeley has said it is on track to meet annual profit guidance, with contracts already exchanged covering 90% of the sales needed to reach it in the first quarter.
The FTSE 100 group has pledged earnings of £525 million for the full year.
Its outlook was defined during the house market slowdown which came with higher mortgage costs. Interest rates hit 5.25% and stayed there for a year after 14 consecutive rises, their highest in 16 years, as the Bank of England acted to tame double-digit inflation.
Rates have already been cut, to 5%, and are expected to fall again to 4.75% by the end of the year.
Berkeley’s focus on the capital means it is seen as more exposed to the drop in mortgage affordability, because higher house prices mean it can be more challenging to secure home loans at higher loan-to-value levels.
Any house market recovery is also seen as likely to be led by the release of pent-up demand in London and other areas of high demand.
The £5.2 billion said it expects pre-tax profit for the year to be “weighted towards the first half, similarly to last year”. Operating margin for that period will be “slightly ahead” of its long-term range of 17.5% to 19.5%.
Berkeley is also known for its expertise in so-called “brown field” development, where urban and suburban sites are redeveloped, backed the government’s planning reforms designed to boost building toward a manifesto pledge for 1.5 million new homes in the next five years.
It backed Labour’s plans again today, saying: “Achieving this ambition requires a change of attitude and a refreshed partnership approach to allow developments, that are currently stalled, to come forward and Berkeley is committed to playing its full part in delivering the new homes the country needs.
“This ambitious plan from the new Government brings with it a number of changes to the operating environment, the impact of which Berkeley will fully evaluate ahead of updating the market with its Interim Results in December.”
Poppy Gustafsson steps down as Darktrace boss
07:32 , Graeme Evans
FTSE 100-listed AI cybersecurity business Darktrace today announced that Poppy Gustafsson has stepped down as chief executive.
Her departure comes as private equity firm Thoma Bravo nears the completion of its £4.1 billion takeover of the Cambridge-based business.
Gustafsson has been with Darktrace since it was founded in 2013 and oversaw the company’s stock market flotation in 2021. It now employs over 2,400 people, operates in 110 countries and serves close to 10,000 customers.
She said: “Darktrace has been a huge part of my life and my identity for over a decade and I am immensely proud of everything we have achieved in that time.”
Chief operating officer Jill Popelka, who originally joined the board as non-executive director in January, has been appointed as Gustafsson’s successor with effect from today.
Thoma Bravo partner Andrew Almeida said: “We are fully supportive of Poppy and the board’s succession plan.
“Jill is the perfect leader to build on Poppy’s tremendous legacy at Darktrace as it embarks on this next phase of its life given her immense experience of scaling and maturing fast-growing businesses.”
Markets steady ahead of US jobs report
07:13 , Graeme Evans
The FTSE 100 index is seen broadly unchanged after last night’s mixed session for Wall Street benchmarks ahead of this afternoon’s US jobs report.
Deutsche Bank’s US economists are forecasting non-farm payrolls rose by 150,000, which compares with 114,000 in the previous month’s report.
They think that some bounce back from July’s weather-impacted reading should allow the Federal Reserve to start cutting interest rates in quarter point increments.
However, a more aggressive half point reduction will be on the table at the Fed’s meeting of 17/18 September if the figures deliver fresh disappointment.
The S&P 500 index last night lost 0.3% in its third consecutive fall, but the Nasdaq Composite rose 0.2%. London’s FTSE 100 index fell 0.3% yesterday and is seen opening today’s session 12 points lower at 8230.