House builders targeted by short sellers

Afternoon all,

House builders and consumer groups are coming under pressure from short sellers as investors bet on a downturn across both sectors in the coming months. New analysis from the law firm White & Case has shown that the number of London-listed firms with over five per cent of their shares held short more than doubled from 27 to 60 in the three months to October.

Meanwhile, Boston Consulting Group (BCG) is the latest professional services firm to come under scrutiny from HMRC over its partnership structure and tax calculations for senior staff.

We’ll be back in your inboxes at 8am tomorrow. In the meantime, have a great evening!

Matt

House builders, building materials manufacturers, and retail and consumer groups have borne the brunt of the pressure from investors. Builders accounted for five of the 14 companies with the highest disclosed short positions, led by Vistry, where investors currently hold short interest of 16.7 per cent.

This was closely followed by brick maker Ibstock, with investors holding a position of 12.9 per cent, after it was forced to lower its earnings target in response to “deteriorating” trading conditions.

The tax authority is conducting an inquiry into how the consulting group determines whether its partners are technically self-employed or employees for income tax and national insurance contribution (NIC) purposes, according to BCG’s recent Companies House filings.

The consulting firm, which employs around 33,500 people globally, said in the filings it had hired external legal counsel to help examine its approach to the so-called salaried members rules, which apply to all firms that follow the LLP structure.

A new report by the Business, Innovation, Science and Trade Committee warned the government’s stance on the world’s second largest economy had put the UK’s security at risk. 

MPs agreed that the government should block sharing sensitive information with China while businesses should adhere to careful rules in dealing with firms from the country. 

The central bank is expected to lift its base rate to four per cent on Thursday – its first hike in three years – following a sharp resurgence in inflation.

The move will deal a blow to the 2.3m households set to reach the end of their fixed-rate deals in 2027, according to figures from trade body UK Finance.

Nearly a dozen industry bodies have warned the Chancellor not to delay plans to develop a central strategy on the regulation and adoption of cryptocurrencies and digital assets ahead of a pivotal vote in parliament.

“A strategy would provide the necessary ‘north star’, giving businesses and investors greater confidence and signalling in the UK’s long-term direction,” the industry chiefs wrote in a letter seen by City AM.

Shakhtar Donetsk have set up shop in London at Chelsea’s Stamford Bridge to show the world that Ukraine remains open for business despite five years of aggression from Russia, their chief executive tells City AM.

There was a mixture of dismay, exasperation and righteous indignation in the Scotch whisky industry when, in his first Budget as chancellor last Wednesday, John Healey ignored longstanding pleas for a fairer approach to excise duty on spirits.

The Scotch Whisky Association’s CEO Mark Kent, said afterwards: “Another increase – the fourth in as many years – will see the tax burden on the average bottle of Scotch Whisky rise to 74 per cent…”

This Budget was not a plan for growth or national renewal, it was a smothering pillow for the UK economy, writes Robert Jenrick.

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