Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Barratt Developments on track to meet FY expectations
Barratt LON:BDEV has issued a trading update this morning, noting that conditions continue to improve from the situation seen late last year and that FY profits will now be in line with market expectations and that between 16,000 and 17,000 properties will be sold. Arguably the responsiveness of the company here in adapting to changing consumer demand is to be applauded here, although the impact on margins will be telling.
- UK Stock Market News: Lloyds, Hays, Mondi
- Companies Reporting: HSBC, Alibaba, Lloyds
- UK Stock Market News: Close Brothers, Barratt, Helium One
#2. Facebook news strategy shift hits revenues at Reach
Media group Reach LON:RCH has a trading update out covering the four month period to April 23rd. This highlights an uptick in print sales revenue but an overall decline in group income. The note highlights initiatives being conducted to tackle the decline in page views – some of which is attributed to the way Facebook presents its news feeds – whilst the business is also eyeing a push into US markets.
#3. Lloyds: significant uplift in profits as higher interest rates offer boost
Q1 numbers are out from Lloyds LON:LLOY this morning, highlighting a close on 50% uptick in post-tax profits and a 19.1% return on tangible equity, significantly above the 13% target. Net interest income rose by an impressive 20%, whilst impairment changes were just £0.2bn, reflecting the quality of the loan book.
