Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Royal Bank of Scotland
The PPI claims window may now be closed, but Royal Bank of Scotland [LON:RBS] has issued a note this morning highlighting that a surge in requests for refunds during August will lead to an additional impairment charge in the Q3 numbers of between £600m and £900m. These numbers are provisional so could vary, but shareholders will presumably be relieved by the fact that this episode has now come to an end.
Full year numbers from Dunelm [LON:DNLM] show this retail stand-out continues to succeed in a challenging sector. Sales up 10% and profits up by almost a quarter makes for a good backdrop, although the company remains cautious over the risks surrounding Brexit. There is however some confidence being seen from the fact that traditional competitors are retrenching at a time when Dunelm is looking to grow its market appeal and multi-channel offering. Shares are up 66% from a year ago, although remain below the all time highs from June 2013.
Full year numbers from housebuilder Barratt [LON:BDEV] are also out this morning. Completions are up but revenues have fallen, with margin improvement helping drive an increase in profitability. The company is upbeat about the outlook, suggesting that it can continue to increase the number of completions at 3-5% per annum and noting that government support for the sector remains strong. There is however no acknowledgement of the risk that the current political turmoil could bring to the business, but with earnings having exceeded consensus analyst forecasts, investors may struggle to find fault in the news.