Microsoft to unveil Xbox successor
YORKSHIRE’S BIGGEST companies have paid the price of Theresa May’s humiliating General Election performance with six out of the region’s top 10 PLCs losing value on Friday.
Shares in the county’s biggest PLC, York-based housebuilder Persimmon, lost 32p to close at £23.79 after analysts said that housebuilders are set for uncertain times after the election resulted in a hung parliament.
The Federation of Master Builders (FMB) said the construction sector could be left vulnerable to the negative effects of political uncertainty following the indecisive result of the election.
Brian Berry, chief executive of the FMB, said: “The construction sector is particularly vulnerable to dips in consumer confidence brought about by political uncertainty and therefore it’s crucial that this uncertainty is minimised.”
However, he said there could be a silver lining for the business community as the prospect of a hard Brexit now seems less likely.
“Theresa May stood on a hard Brexit platform and she has clearly not been given a mandate to approach the negotiations in this way,” he said.
Equity analyst Nick Hyett, at Hargreaves Lansdown, said: “Investors are betting that the average Brit will be poorer following the election result.
“The fallers are notable. Housebuilders are down across the board, but they’re joined by restaurants, high street banks, fashion retailers and media outlets. The implication is clear, consumer’s disposable incomes are expected to be stretched, and big ticket items, like property upgrades, as well as little luxuries, like regular meals out, are expected to be among the first to go.”
The region’s financial firms took a tumble with Yorkshire Bank’s owner CYBG down nearly 3 per cent to 265p while Bradfordbased credit lender Provident Financial fell 3p to £29.80.
Shares in North Yorkshire power generator Drax Group fell 0.6p to 347p. Drax has had runins with the Government before over subsidies and the uncertainty of a hung parliament weighed on the group’s shares.
Other Yorkshire losers include Wakefield-based budget greetings card retailer Card Factory and the owner of Leeds-based leisure airline Jet2.com, Dart Group. Both could suffer if shoppers rein in their spending.
However, shares in Yorkshire’s second biggest PLC, Bradfordbased Morrisons, rose 0.8p to 244p.
Analysts said that whatever happens to consumer spending, people still need to eat and Morrisons is pitched at the cheaper end of the market.
Analyst Bruno Monteyne at Bernstein said the election result is neutral for Morrisons as it sells less clothing and homewares than its rivals.
Carolyn Fairbairn, CBI director-general, said: “With only 10 days before Brexit talks begin, the UK needs to be fast out of the blocks.
“Agreeing transition arrangements and guaranteeing EU citizens’ rights should be early priorities to get the talks off to a good start and show to the world that trade and people come first.”
Justin Urquhart Stewart, head of corporate development at Seven Investment Management, said: “HMS Britain is rudderless, directionless and shortly leaderless. Not a good strategy for the economy.
“The captain is likely to be tipped over the side and we will need to find a new credible commander, not just to lead us through the Brexit negotiations but also through the next election which in all likelihood could be in the next two years.”
Microsoft will unveil its successor to the Xbox One when the E3 video games convention begins next week.
Currently code-named ‘Project Scorpio’, the new system will be the “world’s most powerful console”, Microsoft claims, having already confirmed the final product will go on sale later this year. The new console is the most anticipated announcement of the gaming convention, which begins in Los Angeles on Tuesday.