There’s an interesting contribution to the newswires this morning from the department of Justice, with regard to the Civil Liability Bill which will be introduced to the House of Lords today.
Critically, the discount rate which is applied to personal injury claims will be reformed. When this was last changed, the low interest rate environment cost insurers dearly but this is no longer seen as being the correct approach. Some forecasts suggest individual motor insurance policies could fall by as much as £20 as a result of the change – insurers may get a boost, too.
Ocado Group [LSE: OCD]
There’s a trading statement out from Ocado this morning, updating us on the company’s first quarter performance. Although perhaps best known for its fleet of grocery delivery vans, Ocado is also looking to deliver its technical knowhow to other supermarkets wanting a delivery service solution. Unfortunately, the update provides no further details of new partnerships and with the bad weather earlier in the year having hit sales for the quarter, the market may well have been expecting more.
Bellway [LSE: BWY]
More news from housebuilders this morning with a half year update from Bellway. Great if you’re a shareholder, disappointing if you’re trying to get on the property ladder and presumably embarrassing if you’re in government! Revenues are up 15% and gross profits have risen by a similar amount. Earnings per share have risen by even more – some 17% – and the interim dividend has come in well ahead of forecasts, too. Analysts remain bullish over the outlook for the company’s share price, but how long can generous Treasury support continue to be extended to the industry for?