Business news in brief
Crest Nicholson signals strong demand for houses
Housebuilder Crest Nicholson is seeing good sales growth as demand for new homes remains strong and the property market continues to be supported by government policies such as Help to Buy. In a brief trading update ahead of its annual general meeting, the group pointed to full-year forward sales growth of 15 per cent to £620m.
Crest has recently reduced its exposure to central London where sales have slowed, and instead focused on land in “more affordable outer zones”. To this end, the firm is expanding its Chiltern and Midlands divisions with the current number of sales outlets at 55, 12 per cent higher compared to 2017 and further outlet openings planned over the coming months. PA
Stobart stops Flybe bid after failing to agree terms
Stobart Group has said it does not intend to make a bid for Flybe after failing to agree “satisfactory terms”
with the regional airline. Last month shares in Flybe rocketed after Stobart said it was weighing a potential approach for the Exeter-based business. But yesterday Stobart announced that it is “not intending to make an offer for Flybe” after the airline’s board rejected the move. PA
China raises key interest rate
China gingerly raised a key short-term interest rate yesterday following the US Federal Reserve’s rise, in a symbolic reminder that Beijing is keeping an eye on global market trends even as it cracks down on financial risks at home. The People’s Bank of China (PBOC) said it had increased the rate on 7-day reverse repurchase agreements by 5 basis points to 2.55 per cent. Reverse repos are one of its most commonly used tools to control liquidity in the financial system.
The Federal Reserve raised US interest rates by 25 basis points, or a quarter of a percentage point, on Wednesday and forecast at least two more hikes for 2018. The PBOC’s move had been widely expected and was its first major policy decision under new governor Yi Gang, who was appointed by parliament on Monday as part of a sweeping reshuffle of China’s cabinet under President Xi Jinping. Reuters
Reckitt quits Pfizer consumer health auction
Consumer goods group Reckitt Benckiser has pulled out of discussions with Pfizer over buying its consumer healthcare business, strengthening the hand of drug maker GlaxoSmithKline. Reckitt dropped out of the sale process late on Wednesday, the day before Pfizer was expecting binding offers for the unit. Sources familiar with the matter said GSK was working on an offer. Reuters