Genuit, formerly Polypipe, has warned that full-year profits will be lower than expected due to economic and political uncertainty created by the budget.
Shares in the provider of sustainable water, climate, and ventilation solutions fell 13 per cent, or 46p, to 309p after it said construction clients had cut back on spending, wary of possible measures in the November 26 fiscal statement.
Underlying operating profit is expected to be between £92 million and £95 million, down from market forecasts of £95 million to £99 million. Underlying operating profits in 2024 were £92.2 million. Revenue in the ten months to October 31 rose 8.4 per cent year on year to £511.1 million, helped by price increases.
Budget rumours have hurt growth, says ex-Bank economist
Andy Haldane, the former Bank of England chief economist
TAYFUN SALCI/ALAMY
Speculation over the upcoming budget has partly driven weaker-than-expected UK growth, as fears over tax rises dampen business investment and consumer spending, the former Bank of England chief economist, Andy Haldane, has said.
Haldane, who served at the Bank until 2021, told Sky’s Mornings With Ridge And Frost that the build-up to November 26 has been a “circus”, urging an overhaul to stop leaks that can harm the economy.
Official data last week showed GDP expanded just 0.1 per cent in the third quarter, below forecasts. The chancellor, Rachel Reeves, blamed the softness to Jaguar Land Rover’s production shutdown after a cyberattack. Haldane said “without any shadow of a doubt” the persistent budget rumours have directly weighed on growth.
UK shares and bonds ‘increasingly attractive’
UK shares and bonds are “increasingly attractive” despite challenges for the economy. Domestic bonds are offering the highest yields among G7 nations and UK shares are trading at a price-earnings ratio of 14, about half that of the United States, according to Morningstar’s 2026 Global Outlook.
The stock market is also diversified, with roughly 80 per cent of the revenues generated by companies in the Morningstar UK Index coming from outside the country, spread relatively evenly across the US, continental Europe, Asia-Pacific, and emerging markets.
Among the G7 countries, Britain has the second-lowest government debt to gross domestic product, behind only Germany and ahead of the United States, Japan, France, Canada, and Italy, the report says.
FTSE 100 edges higher in subdued market
London’s leading share index has edged higher this morning on concerns of the deepening dispute between China and Japan over Taiwan, little corporate news and investors looking ahead to Nvidia results on Wednesday as well as the delayed US jobs report for September on Thursday.
The FTSE 100 rose 5.45 points, or 0.06 per cent, to 9.703.82, after closing down 1.1 per cent on Friday.
The advertising agency WPP was the biggest riser after a report in The Sunday Times that French rival Havas was eyeing out a possible takeover.
Burberry fell in sympathy after Japanese retail shares dropped as Beijing told Chinese tourists not to travel to Japan.
Miners Antofagasta and Anglo American fell after the price of copper eased amid a broad selloff among base metals on concerns that a December interest rate cut in the US may not be on the cards.
Sellers cut prices over budget jitters
Asking prices among new sellers have fallen by £6,589 in the past month
GETTY IMAGES
Sellers are cutting prices by the largest margin in 13 years as buyers hold off ahead of potential tax increases in the budget.
Asking prices for new listings over the past four weeks fell 1.8 per cent, or £6,589, to an average of £364,833, data from Rightmove shows. This is the biggest autumn decline since 2012 and exceeds the 1.1 per cent drop typically seen over the same period in the past decade. New sellers are defined as those listing their homes since October 12.
The slowdown reflects growing market caution amid speculation that the chancellor, Rachel Reeves, may raise property taxes, including a possible “mansion” tax on homes over £2 million, removing capital gains tax exemptions for primary residences, and increasing council tax, prompting many homeowners to adjust their pricing in anticipation.
• Read in full: Sellers cut house prices by most in 13 years over budget fears
Life insurers pass severe market stress test
ALESSIA PIERDOMENICO/REUTERS
The Bank of England’s Prudential Regulation Authority (PRA) said that Britain’s life insurers withstood its latest severe market stress test, indicating the sector was “resilient” to shocks, including falls in interest rates, equities, property, and credit quality.
While the results underscore sector resilience, the PRA emphasises that boards remain responsible for ongoing risk management and forward-looking stress testing to maintain robust solvency and capital planning practices.
The shares of FTSE 100 life insurers, such as Aviva and Legal & General, could be in focus when the stock market opens.
UK infrastructure investment groups to merge
HICL has a stake in London St Pancras Highspeed, the high-speed railway connecting London St Pancras station and the Channel tunnel
ALAMY
HICL Infrastructure and The Renewables Infrastructure Group (TRIG) will merge to form Britain’s largest listed infrastructure investment company with net assets of more than £5.3 billion.
The companies said the increased size would improve share liquidity, broaden the combined companies’ appeal to global institutional investors and index funds, and provide a pathway to potential inclusion in the FTSE 100 index and other global indices.
TRIG’s assets will transfer to HICL via reconstruction and voluntary winding up, with shareholders receiving new HICL shares and the option of up to £250 million in cash. Sun Life will provide £100 million in secondary market support.
Completion is expected in the first quarter of next year, subject to approvals, with existing management teams retained to implement the enhanced investment strategy.
UAE developer takes major stake in Thameside West
Arada, a United Arab Emirates real estate developer backed by Gulf royals, is to acquire a majority stake in London’s Thameside West mixed-use development.
The project, on the north bank of the Thames near Royal Victoria Docks, has a gross development value of £2.5 billion and plans to deliver at least 5,000 homes, Arada said. The first phase, expected to start construction in 2027, will deliver 1,000 homes.
The Arada chairman Sultan bin Ahmed al-Qasimi, a member of Sharjah emirate’s ruling family, said: “Our entry into this market was grounded in our unwavering faith in London and its attractiveness as one of the world’s leading capital cities.”
Japan tourism faces hit from Taiwan row
Chinese tourists visit the Ginza shopping district of Tokyo
GREG BAKER/AFP VIA GETTY IMAGES
Retail, leisure and other tourism-related Japanese shares fell today after China warned its citizens against travel to the island following a widening diplomatic rift over Taiwan.
Isetan Mitsukoshi, a department store operator with substantial sales to Chinese visitors, lost 10.7 per cent, Tokyo Disneyland operator Oriental Land lost 5.9 per cent and Japan Airlines shed 4.4 per cent.
On Friday, Beijing warned Tokyo of a “crushing” military defeat if it used force to intervene over Taiwan and warned Chinese citizens against visiting Japan. This morning Japan’s chief government spokesman, Minoru Kihara, said any move by China to restrict travel would violate an agreement between the nations’ leaders.
A senior Japanese diplomat will travel to China in an attempt to soothe the tensions. Chinese visitors account for roughly 25 per cent of Japan’s inbound traffic, making department stores, luxury retail, and hospitality particularly vulnerable. Fuelled by the weak yen, tourism has become an important part of Japan’s economy.
Bitcoin close to wiping out gains for the year
Bitcoin has stabilised this morning after almost wiping out all its gains for the year.
The cryptocurrency has fallen sharply since topping $125,000 in October as a result of a combination of risk in regards to interest rates and liquidity, geopolitical uncertainty, liquidations, and waning institutional demand.
Bitcoin, which was trading at $94,147 on Friday, is currently at $95,027.42. It ended 2024 at $93,714.