Landsec acquires further 10pc stake in Bluewater, Bellway lowers FY completion forecast

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Commercial property development and investment firm Landsec said on Tuesday that it has acquired a further 10% stake in Bluewater, taking its ownership of the Kent retail destination to 74%. Landsec paid £95m for the additional interest, a price it said reflects a 7.4% yield based on the net rental income generated by its existing holding.

Housebuilder Bellway expects to complete fewer homes in the current fiscal year and deliver softer margins amid weak demand and a lower order book. The group said it was now targeting total completions of between 9,000 and 9,400 compared with 9,695 in the prior year. The forecast comes after the FTSE 250-listed firm reported a 5.7% increase in underlying pre-tax profits to £305.7m in year to July and announced a £150m share buyback.

NEWSPAPER ROUND-UP

The global economy "could soon test the limits of resilience", as emergency oil stocks run low and government budgets become overstretched, the International Monetary Fund has warned. In its twice-yearly World Economic Outlook, the IMF said global growth had withstood the Middle East conflict better than feared over the past six months. It said the rerouting of oil supplies away from the strait of Hormuz, and the release of strategic energy stocks, had helped to contain the impact on oil prices from the US-Iran war. – Guardian

Stellantis and Renault have backed the UK car industry for inclusion in proposed rules to protect EU industry, but urged the British government to consider limiting imports of Chinese cars. Emanuele Cappellano, who leads Stellantis's European brands including Fiat, Citroën, Opel and Vauxhall, and François Provost, the chief executive of France's Renault, said the UK should effectively be counted as one of the EU's 27 member states for the purposes of the proposed "Made in Europe" legislation. – Guardian

Poundland could be pushed into administration within days, putting 12,000 jobs at risk, one of Britain's largest trade unions has claimed. Usdaw, which represents 370,000 retail workers, said it feared that owners Gordon Brothers could decide the fate of the discount retailer as soon as Tuesday. Poundland is subject to a number of competing bids after Gordon Brothers decided to sell the business but unions say they have "deep concerns" that it will be pushed into administration. – Telegraph

Mike Ashley has tightened his grip on Burberry after upping his stake in the luxury brand, putting him on course to become the group's biggest shareholder. The billionaire's Frasers Group now owns 7.4% of the trench-coat maker, up from 6.3% a fortnight ago, after using financial derivatives to add to his holding. Frasers would become Burberry's largest investor if Mr Ashley converts the derivatives to shares, a move which would give the fashion tycoon immense power over the 170-year-old fashion brand. – Telegraph

A record number of mansions and penthouses in London have been let over the past 12 months as the wealthy increasingly look to rent rather than buy. Changes to stamp duty and taxes for non-doms last year have brought the high-end sales market in London to a juddering halt, but the wealthiest still want to "maintain a presence in the capital", according to JLL, the estate agent. The trend means that the "prime central London" rental market is busier than ever. JLL data showed that 338 homes with annual rents of more than £150,000 have been leased over the past 12 months, a 14% increase on the previous year and a record. – The Times

US CLOSE

Major indices delivered a mixed performance on Monday as investors turned their attention to a heavy slate of earnings and fresh inflation data in the days ahead.

At the close, the Dow Jones Industrial Average was up 0.38% at 51,850.55, while the S&P 500 shed 0.06% to 7,807.24 and the Nasdaq Composite saw out the session 0.44% weaker at 27,245.90.

Reporting by Iain Gilbert at Sharecast.com