Stock market investors hope for Santa rally; Vistry shares plunge after latest profit warning – business live | Business

Housebuilder Vistry is firmly on the city’s naughty list after it reported its third profit warning of the year (see before and after).

Shares in Vistry almost 20% broke in the beginning of the traffic, making it the worst in the FTSE 250 Index of medium-sized companies.

Matt Britzman senior equity analyst at Hargreaves Lansdowne says:

Vistry’s The festive period is not a happy one, with the profit of the chimney once again falling, this time from £300m to c. £250m, while waiting for years to end the business failed to make the fair list.

This means that in the group’s third level of earnings of the year, the disturbing trend of the string of management’s plans and forecast errors, which have left investors feeling not far from funny. Even the recent influx of cash failed to brighten the season in December, with net debt already expected to close the year at around £200m – a far cry from what investors had hoped for in either situation.

As the year ends on a negative note, Vistry faces a long winter of confidence-building, leaving investors with little choice but to discuss their options.

Another profit warning at Vistry

Kaliena Makortoff

British house builder Vistry has issued its third profit warning in three months, marking the end of the year for the construction company’s hit.

A business that has been relegated FTSE 100 share index on Monday, now expects annual pre-burn profit of just £250m, down from previous guidance of around £300m.

The group – formerly known as Bovis Homes – said this was partly due to delays, with some developments not yet completed, and transactions with partners on the way to 2025 kicking back.

Vistry He also said that the ditching from some proposed negotiations, where the conditions of trade were not attractive enough. He expects better conditions and options to open next year.

But this is the third profit from the admonition Vistry as many months.

In October, Vistry conducted by an independent review of operations in the southern division showing that “understated” total construction costs by around 10%. It is estimated at the time that this profit will knock from 115m in the next two years, and will finally cut the annual profit in 2024 to 350 pounds, below the 419m pounds last year. The news sent its shares into the lead, wiping £1bn off the value of the company.

In the exact month, November, vestry she said expectantly the biggest hit was profits of around £165mand its projected 2024 profit to £300m.

Hence, on the third profit warning on Tuesday, the president and chief executive Greg Fitzgerald He had said that these months had been “challenging”;

“Today’s announcement and financial results for FY24 are disappointing. Our top priority for 2025 is to build and continue to build high quality mixed tenure new homes for our partners and private clients, and to play our part in addressing the country’s acute housing shortage.

We remain committed to our company’s housing strategy and are firmly committed to advancing our business and building profits.”

Hello and welcome to our rolling coverage of business, financial markets and the world economy.

It’s the last trading day in global stock markets before Christmas, and traders will be hoping for a visit from Santa.

The Santa Rally is a stock market phenomenon where advanced stock markets arise around the time of Christmas. But there are signs today that he is coming late.

Stocks are concentrated across the Asia-Pacific region, including China CSI 300 the index gained 1.27% today and Hong Kong Stress Seng completed 1% Australia’s S & P/ASX 200 digs by 0.25% and South Korea’s KOSPI index rose a more modest 0.13%

What follows is acquired on Wall Street yesterday, where S&P 500 rose 0.7%.

This set the UK market for profit in the shortened Christmas Eve session today; FTSE futures are 0.6%, which lifted the London market from last week’s low of the month.

Market sentiment has been pushed back in recent weeks by concerns that central banks will not cut interest rates faster than expected in 2025. Investors now expect just two US lending cuts next year, and two in the UK as well.

Global growth is also expected to slow next year, as Donald Trump’s return to the White House raises the risk of new tariffs on global trade. Trump’s election win sparked a rally in November, so maybe Santa is coming early this year.

Ipek Ozkardeskayasenior analyst at Swissquote Banksets the scene;

It’s never too late to believe in Santa.

Investors on Monday shrugged off the bad news of the past week – particularly that which suggested the Federal Reserve ( H ) would only rate its rate twice in 2025 due to an excessively soft US economy. Yesterday’s data showed that US durable goods orders fell more than expected in November, new home sales rebounded slightly less than expected and consumer confidence dropped unexpectedly in December.

This bag of bad news has helped moderate the latest hawks’ dives into H expectations. So, there are buyers and buyers. The S&P500 rebounded 0.73%, the Nasdaq 100 jumped more than 1% and even Europe’s Stoxx 600 led a small gain, while Denmark’s Novo Nordisk jumped more than 5.5% to buy a stake in a weight-loss drug. stay here

goals

• 12.30pm GMT: UK stock market to close early for Christmas

• 1.55pm GMT: US Redbook index of US retail sales

• 3pm GMT: Richmond Federal Reserve