Segro trading positively, Barratt completions on track

Stocks to watch

Property group Segro reported positive trading for the year to date on Wednesday, anticipating robust rent roll growth driven by active asset management and strong demand for properties. The firm also said it had made significant progress in asset disposals, exceeding £250m, as it focussed on profitable development projects with a potential rent of £77m, expected to yield 7.3% on cost.

UK housebuilder Barratt Developments said it remains on track to hit targeted home completions despite a much slower start to the financial year as a result of ongoing challenges prospective buyers are finding in securing mortgages. Chief executive David Thomas said the trading environment since 1 July "remains difficult", as the company reported falls in private reservations and forward sales. The declines reflected the impact of higher borrowing costs and the absence of the Help to Buy scheme, which accounted for 12% of private preservations in the first quarter of last year.

Newspaper round-up

Miller & Carter, the steakhouse chain owned by the nationwide pub group Mitchells & Butlers, has been criticised for taking payments from waiting staff worth up to 2% of the sales they serve up, cutting their income during the cost-of-living crisis. The payments are intended as a way for waiting staff to share tips with chefs and other back of house workers. – Guardian

The UK car industry has said incoming tariffs between the UK and the EU could raise the price of imported electric cars by as much as £3,400 unless a solution is found by the end of the year. The Brexit trade deal between the UK and EU gave carmakers until 1 January 2024 to source batteries from within Europe or face 10% tariffs when exporting to each other. However, the supply of European-made batteries has failed to meet demand, meaning carmakers face the new tariffs from next year under these “rules of origin”. – Guardian

Tesla has cut the price of its entry-level Model 3 car in Britain in the latest effort to boost demand for its electric vehicles amid growing competition and sluggish sales. The car maker began selling a new version of the Model 3 on Tuesday for £39,990, £3,000 cheaper than the previous cheapest version. – Telegraph

The Telegraph’s administrators have set up a company to hold the newspaper’s assets as Lloyds Banking Group continues with efforts to seize Barclay family holdings before a sale of the broadsheet title. The directors running the Telegraph on behalf of the bank have been appointed to a new entity before an auction that is expected to generate up to £600 million. – The Times

The proportion of first-time, female and minority ethnic candidates who were appointed non-executive directors of the UK’s largest listed companies fell sharply last year, according to a survey carried out by the recruitment firm Spencer Stuart. Diversity on the top 150 UK boards dropped as companies opted to hire those with prior experience in times of uncertainty instead. – The Times

US close

Rising bond yields weighed over Wall Street equity markets on Tuesday despite a raft of better-than-expected earnings data from bellwether stocks, while an escalation of violence in Gaza continued to rattle investors' nerves.

An airstrike on a Gaza hospital on Tuesday afternoon reportedly killed 500 people, according to Palestinian health officials. The news came as the Israeli government continued to prepare forces for a potential ground invasion – though when that offensive would take place is still unknown.

As financial markets watch the situation closely, US president Joe Biden is scheduled to travel to Israel on Wednesday, as attempts at shuttle diplomacy step up a gear. Unconfirmed rumours that UK prime minister Rishi Sunak may also travel to the Middle East in the coming days were also doing the rounds.

Following 1%-plus gains on Monday, US markets broadly finished flat to lower. Stephen Innes, managing partner at SPI Asset Management, said investors were "still on tenterhooks" and the previous session's tentative risk rally was "more of a function of no escalation rather than a broader de-escalation".

After a brief spell in positive territory, stocks had erased gains by the closing bell, with the Dow Jones Industrial Average and S&P 500 finishing flat, and the Nasdaq slipping 0.3%.