Building & Construction equity research

Explore the most viewed and latest equity research and media content for companies within the Building & Construction sector.

Stocks in this sector provide goods such as construction materials and offer services from contractors.

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Breakfast Today

  • 17 Jan 17

"In his first speech of 2017, Mark Carney was clear. "Households appear to be looking through Brexit-related uncertainties" he declared at the LSE yesterday, detailing his concerns that growth which is led by private consumption remains vulnerable to an inflationary spike fuels by Sterling weakness. While it is believed that the Bank of England will be prepared to let the economy 'run hot' for a brief period, should price-growth stay stubbornly above its 2% target, then it will be prepared to raise interest rates as sharply as necessary. Given that the Prime Minister is today also expected to lay out her 12 main negotiating objectives for the UK in pending divorce negotiations from the EU, with the expectation that business investment will remain relatively subdued as management await the final outcome of Article 50 discussions, this all suggests the UK could now be facing 2 years or more of below par growth. The Pound's weakness of the past few days is expected to intensify as markets recognise the increasing likelihood of a 'Hard Brexit', with Theresa May seemingly prepared to rule out membership of the Single Market in the hope she will instead be able to secure a unique, special relationship with the EU. This all sets a nervous scene for London's opening this morning, given that yesterday's Martin Luther King holiday means traders cannot rely on the US to set opening sentiment while Asian markets closed broadly weaker. The FTSE-100 is seen down around 15 points in early trade, although this will stay relatively light until the implications of the Prime Minister's speech have been fully digested. The UK also is scheduled to release a batch of December macro data this morning, including Retail, Consumer and Producer Prices, which may build upon the concerns highlighted by Mark Carney, while the EU is scheduled to publish its ZEW Economic Sentiment Survey as the World Economic Forum Annual Meeting gets underway in Davos. Speeches from Fed members, William Dudley and Lael Brainard are also anticipated this afternoon. UK corporates due to release earnings or trading updates this morning include Cairn Energy (CNE.L), Greggs (GRG.L), Hotel Chocolat (HOTC.L), Miton Group (MGR.L) and Provident Financial (PFG.L). Traders will also remain sensitive to certain majors reporting in the US this afternoon, including Morgan Stanley and Tiffany." - Barry Gibb, Research Analyst

Breakfast Today

  • 06 Jan 17

US traders yesterday appeared to be taking some of the warnings emanating from the Wednesday's FOMC minutes more seriously. Doubts regarding Trump's 'miracle growth rhetoric' emerged taking the shine off the recently strong financials sector, with cash liberated being switched back into defensives like government bonds and gold, sufficient to push the Dow Jones down over 130 points before it staged a recovery to close with just minor losses. 10-year Treasury yields also fell to their lowest in a month, touching 2.35% before also rallying ahead of the fix. Having reached a 14-year high against the international basket earlier in this week, the Dollar was knocked back a full percent, with the Chinese Yuan emerging as the principal beneficiary registering it biggest one-day gain since 2005 as the central bank surprised forex dealers by removing its US$ peg in an effort to reverse the currency's recent aggressive decline. Asian equities mostly followed the US lead, with only the Hang Seng making a reasonable gain while other bourses closed flat to fractionally down. Further damage to confidence could be inflicted later today, if the key December US non-farm payroll data due this afternoon come out significantly below the 180,000 jobs consensus, which would likely to push expectations of the Fed's anticipated higher rate trajectory back somewhat and take the US$ with it. Other macro data due today includes European December Consumer Confidence and November Retail Sales as well as US Trade Balance figures. Equities in London are seen having a relatively quiet end to the week, with the FTSE-100 expected to move just 5 points either side of unchanged in light volumes ahead of the release of the US employment report, which is due at 13:30hrs GMT.