Bellway flags lower output, Centrica expecting top-end earnings

London open

The FTSE 100 is expected to open 40 points higher on Tuesday, having closed up 0.11% at 7,570.69 on Monday.

Stocks to watch

UK housebuilder Bellway said it expected lower output and average prices due to a weaker order book and an uncertain interest rate environment. The company on Tuesday maintained guidance that it would deliver full year volume output of around 11,000 homes, compared with 11,198 in the 2022 fiscal year with an overall average selling price of around £300,000, down from £314,399 at the end of July last year. “Overall reservations in the period have been lower than the prior year, however, we have been encouraged by the levels of customer interest and the seasonal uplift in demand,” the company said in a trading update for the five months to June 4.

British Gas owner Centrica said it expected annual earnings to be at the top end of expectations, driven by “significantly higher” profits at its retail division as customers struggle with soaring energy prices. It added that first half net cash generation was also expected to be “robust”, the company said in a trading update. “The company's performance over the first five months of the year, across its diverse and balanced portfolio, has been strong overall,” Centrica said.

Newspaper round-up

Britain has endured the worst exports record of any member of the G7 besides Japan over the last decade, according to a new analysis that will raise pressure on the government to reconsider its post-Brexit trade deal with the EU. As most of the world’s other major seven economies have rebounded from the pandemic, export growth has remained sluggish in the UK at a time when businesses trading with the EU faced extra red tape and costs as a result of the country leaving the bloc. – Guardian

The Federal Trade Commission asked a court to temporarily block Microsoft’s acquisition of Activision Blizzard on Monday, seeking to halt the deal from closing before the government’s case against the $69bn deal is heard. The FTC said Microsoft and Activision had signalled the deal could close as soon as Friday, and asked a federal judge to block any final agreement before 11.59pm ET on 15 June. – Guardian

UBS has axed a raft of senior Credit Suisse executives after the bank completed the takeover of its stricken rival. The Swiss lender said that a slew of Credit Suisse’s most senior bosses will leave the combined company, while others will take on lesser roles, as UBS asserts its dominance following the historic tie-up. – Telegraph

The Financial Conduct Authority is facing mounting scrutiny of its handling of the Crispin Odey scandal amid pressure from MPs for the City regulator to reveal what it knew about misconduct allegations against the hedge fund manager. Odey, 64, was ousted from his eponymous hedge fund group on Saturday as partners at the firm scrambled to stabilise the business in the face of a series of sexual assault and harassment allegations against its founder. – The Times

One of Silicon Valley’s leading venture capital firms has chosen London for its first international office, in a much-needed vote of confidence in the UK’s technology sector. Andreessen Horowitz will open a London arm later this year of its crypto practice, which focuses on blockchain technologies and start-ups, managing about £6 billion of committed capital. The office is set to open this year.- The Times

US close

Wall Street posted some decent gains by the close on Monday, as all the major indices ended in the green.

At the close, the Dow Jones Industrial Average was up 0.56% at 34,066.33 points, while the S&P 500 ascended 0.93% to finish at 4,338.93, reaching its highest level in over a year.

That was closely mirrored by the Nasdaq Composite, which jumped 1.53% to end the session at 13,461.92, marking its own yearly peak.

Monday’s performance was underpinned by the expectation of forthcoming announcements from key central banks across the globe, including the Federal Reserve, the European Central Bank, and the Bank of Japan.

In foreign exchange markets, the dollar saw marginal decreases across the board, falling 0.01% on sterling to trade at 79.93p, while it recorded an equivalent decline against the euro to 92.95 euro cents.