Barratt, British Land and Rolls-Royce

“Blue-chips failed to track the positive themes seen on Wall Street and Asia overnight with traders looking ahead to jobless data in the UK, while stateside it is a slew of production data that will capture investors' attention,” says AJ Bell Investment Director Russ Mould.

“Housebuilder Barratt continues to trade well with overall market conditions remaining healthy. Demand is robust, driven by an undersupply of homes, good mortgage availability and a supportive Government policy environment including Help to Buy. But conditions in London at higher selling prices remain more challenging and the group has taken pricing action on a number of its sites in the capital. Barratt’s shares were down by more than 1.8% in early trading.

“British Land saw a significant increase in first half underlying profits but it will proceed more cautiously with developments following the Brexit vote. British Land has seen differing dynamics in its markets since the referendum with leasing momentum maintained in retail but signs of more caution among occupiers in offices. The group’s speculative development commitment remains modest at 5% and it has benefited from having only a small amount of office space to let.

“Aero engine maker Rolls-Royce sees benefits from the fall in sterling since the Brexit vote. The group believes foreign exchange benefits from weaker sterling and life cycle cost reductions will more than offset higher engineering and programme costs in civil aerospace. Rolls-Royce has made significant progress over the last 12 months implementing the findings of an operating review, including key changes to the management and structure of the company while also taking actions that are adding pace and simplicity to its processes.”

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