Market activity remains subdued in the interval between Christmas and New Years Day. It’s a time of year for reflection, but it also provides a handy juncture in which to bury unfavourable news updates – at least that’s the cynical view. But a couple of recent stock exchange releases will have raised eyebrows.
Barclays (BARC) has come out fighting after US federal regulators took the decision to sue the UK bank and two of its former employees over the issuance of allegedly fraudulent mortgage-backed securities at the height of the US housing boom. Federal authorities have already reached settlements with European lenders Credit Suisse ($5.3bn) and Deutsche Bank ($7.2bn), together with several home-grown financial institutions, so Barclays may have a fight on its hands. Click here to read our view on the legal manoeuvres and risk factors.
In what some will see as a harbinger of a wider industry malaise, Bovis Homes (BVS) revealed that around 180 completions have been deferred till 2017 following a slowdown in activity during December. The delayed completions mean that reported profits will come in below consensus expectations for the 2016 year-end, but property analysts will be wondering whether any of the house builder’s rivals will follow suit.