The Bank of Russia will try to prop up the struggling rouble as Vladimir Putin’s regime desperately tries to counter Western sanctions.
The nation’s central bank said it would step up support for the currency, which has plummeted in value by 46pc since last June.
The Bank of Russia said that between September 14 and 22 it would sell 21.4bn rubles (£170m) of foreign currency each day on the market, about 10 times the current volume it is selling on a daily basis.
The central bank tied the move to an upcoming payment of foreign currency bonds issued by the government, known as eurobonds.
The value of the rouble recovered after a fall in the immediate aftermath of Russia’s invasion of Ukraine, thanks to measures taken by the authorities.
However, it has been sliding for more than a year and fell precipitously at the start of August, breaking the 100 rouble to the dollar level for the first time since the immediate wake of the start of the Ukraine war.
The Bank of Russia has hiked its key interest rate from 8.5 to 12pc to stabilise the rouble and contain rising inflation.
Read the latest updates below.
02:22 PM BST
Bailey gives evidence to MPs over interest rate rises
The Governor of the Bank of England has begun giving evidence to MPs about the fight against inflation, which has led to 14 consecutive interest rate rises to 5.25pc.
Andrew Bailey told the Treasury select committee said the former US Federal Reserve chairman Ben Bernanke will outline the terms of his review of the Bank’s forecasting on September 22.
The Bank of England’s forecasting methods have come under scrutiny after inflation surged to a peak of more than 11pc last year, prompting the appointment of Mr Bernanke.
02:05 PM BST
US trade deficit wides as it imports more phones and microchips
A rise in imports widened the US trade deficit in July, government data showed, as consumers kept up spending on things like mobile phones.
The country’s trade gap grew to $65bn in July, up from June’s revised $63.7bn figure, the Commerce Department said.
But this remained below the average for the second quarter according to analyst estimates.
In the latest figures, imports picked up 1.7pc to $316.7bn while exports rose 1.6pc to $251.7bn.
In particular, imports of consumer goods such as mobile phones and pharmaceutical preparations increased, alongside semiconductors.
While the US economy has showed signs of slowing, resilient consumer spending has helped boost US trade.
But this could weaken as rapid interest rate hikes by the central bank – aimed at lowering inflation and cooling demand – ripple through the world’s biggest economy.
01:53 PM BST
Bailey to give evidence to MPs as pound falls
The Governor of the Bank of England will given evidence to MPs today about the direction of interest rates and the battle against inflation.
Andrew Bailey will speak as the pound slumps near a three-month low against a resurgent dollar amid widespread market jitters about global growth and increasing oil prices.
The pound was last down 0.1pc against the dollar at $1.25 having shed 0.5pc a day earlier, when it touched its lowest since mid June. It is already down nearly 1pc in September.
It comes as the dollar rose 0.7pc against six major peers on Tuesday – its biggest daily gain since March – on the back of data showing weak Chinese and European economies versus a comparatively resilient United States, and higher oil prices.
The pound was the best performing major developed market currency against the dollar in the first half of the year, with better than feared British economic data and sticky inflation driving expectations that the Bank of England would keep raising rates longer than most other peers.
Markets have priced in that the Bank of England will raise interest rates to 5.5pc at the next meeting of the Monetary Policy Committee this month – and traders expect one more rate rise at some point after that.
01:39 PM BST
NatWest confirms new chairman following Farage scandal
NatWest has confirmed that Richard Haythornthwaite will succeed Sir Howard Davies as chairman in the wake of the Nigel Farage debanking affair.
He will join the board on January 8 and become chairman on April 15 following a handover period.
The change comes after Sir Howard Davies faced huge pressure over his handling of the eventual dismissal of NatWest chief executive Dame Alison Rose following her comments to a BBC journalist about Mr Farage.
Senior independent director Mark Seligman said the board had followed a “rigourous process” in hiring Mr Haythornthwaite, who is currently chairman of Ocado and the AA and one of Britain’s most experienced businessmen.
Mr Haythornthwaite said:
It is a privilege to assume the role of NatWest Group chair. I am inheriting a very different NatWest compared to my predecessor; one that is more customer focused, financially resilient and well positioned to maintain its recent strong performance.
I look forward to working with the board to build on the exceptional progress made, so we can continue to support the UK economy and deliver for our customers and stakeholders.
Sir Howard added: “I am very pleased by the choice the board has made and am confident that Rick’s experience and range of skills will complement and further strengthen the NatWest board in the years to come. I look forward to working closely with him to ensure a smooth handover next year.”
01:30 PM BST
Wilko store closures ‘a big shame,’ say customers
The closure of 52 Wilko stores has been described as “another nail in the coffin for the high street” by customers at a branch in Acton, west London, which is among those due to shut next week.
Michael Penning, 74, a business consultant from the town, who was shopping for paint brushes, said:
I think it’s a shame, a big, big shame. It kind of filled a gap Woolworths left, it doesn’t have everything, but it filled a gap, I’m not sure what’s going to fill the void. It’s just such a good place to shop for so many different things.
They’re competitive in price and the quality is pretty good. It’s going to be another empty unit on the high street.
Another customer said she will miss it because there are some items she cannot get elsewhere.
Laura Everett, 31, an implementation manager from Acton, said: “I do come here quite often, there isn’t anything that’s really the same.
“Some of the things I get from here, such as white vinegar, I don’t know anywhere else I can get it from. I will miss it really.”
01:14 PM BST
Airlines cannot ‘carry the can’ for air traffic control chaos, say companies
Airlines are demanding to be reimbursed for the cost of the August bank holiday air traffic control (ATC) failure.
Industry body Airlines UK said its members should not “carry the can every time we see disruption of this magnitude”.
The boss of National Air Traffic Services (Nats) said a “one in 15 million” technical glitch on August 28 prevented it from automatically processing flight plans, causing widespread disruption.
Airlines UK chief executive Tim Alderslade said:
Airlines worked round the clock in response to the situation, providing accommodation to passengers and putting on more flights to bring them home as quickly as possible, at huge cost to all carriers impacted.
Airlines cannot be the insurer of last resort though and there must be accountability from Nats when things go wrong.
Airlines are seeking clarity on what options exist for Nats to cover our costs under the current legislation and will continue to engage with Government on all options for redress.
We can’t have a situation whereby airlines carry the can every time we see disruption of this magnitude.
01:01 PM BST
ECB raising rates at next meeting is ‘close call,’ say policymakers
Investors are “maybe” underestimating the chances of the European Central Bank raising interest rates next week, according to one of its policymakers.
Governing Council member Klaas Knot said that updated inflation projections will not differ much from the last round in June, even as a slowdown in the eurozone’s economy dampens demand.
The hawkish Dutch central bank chief said it would be a “close call” told Bloomberg News that it was a “close call” whether the ECB would increase rates to a record breaking 4pc. He said:
I continue to think that hitting our inflation target of 2pc at the end of 2025 is the bare minimum we have to deliver.
I would clearly be uncomfortable with any development that would shift that deadline even further out. And I wouldn’t mind so much if it shifted forward a little bit.
Mr Knot’s fellow Governing Council member Peter Kazimir said the ECB needs to raise rates one more time to hit its 2pc inflation target and doing so at the next meeting would be preferable to waiting until the following meeting.
The euro is up 0.2pc against the pound following their comments to 85p.
12:49 PM BST
Ocado cuts price of kale and avocados to win back middle class shoppers
Ocado is cutting the price of kale, avocados and organic vegetables as it battles to win back middle class shoppers.
Our retail editor Hannah Boland has the details:
The online grocer has announced its third round of price cuts since June, saying it was reducing the costs of more than 330 everyday essentials.
These include kale, where Ocado is cutting the price by 6pc, avocados, which are getting 13pc cheaper, and organic red cabbage and broccoli. Cabbage is falling from £1.75 to £1.10, a 37pc drop, while broccoli is getting 10p cheaper to £1.
Other items being reduced include Tropicana smooth orange juice, Birra Moretti beer and Colgate toothpaste.
Hannah Gibson, chief executive of the online grocer, said the latest cuts meant Ocado had slashed the price of more than 630 products in the past three months.
The chart shows how the online supermarket is battling the march of the German discounters.
12:16 PM BST
Putin and MBS speak following oil cuts
The Kremlin said that Vladimir Putin had spoken by phone with Saudi Crown Prince Mohammed bin Salman today following the two nations’ decisions to cut supplies to the global oil market.
The announcements of the production cuts on Tuesday sent the value of Brent crude above $90 a barrel for the first time this year.
Russia will roll over its decision to reduce oil exports by 300,000 barrels per day, while Saudi Arabia will extend its voluntary oil output cut of one million barrels per day until the end of the year.
A Kremlin spokesman said: “It was noted that the agreements reached on reducing oil production, combined with voluntary commitments to limit the supply of the commodity, make it possible to ensure the stability of the global energy market.”
The move comes as the Bank of Russia tries to prop up the value of the ruble, which has plummeted since last summer in the wake of Western sanctions over the war in Ukraine.
The central bank will sell 21.4bn rubles (£170m) of foreign currency each day on the market, about 10 times the current volume it is selling on a daily basis.
12:03 PM BST
US markets poised to fall amid stock market selloffs
Wall Street is preparing for a fall across stock markets at the opening bell amid widening concerns about the world economy.
A rise in Treasury yields and oil prices pushed stocks lower on Tuesday as signs of sticky inflation raised concerns that the US Federal Reserve may need to increase interest rates again.
Meanwhile, markets have been spooked by weak factory data from Germany – Europe’s largest economy – and poor data on services output in China, the eurozone and the UK.
Investors are awaiting a slew of fresh economic data due later today, including the S&P Global flash US composite PMI index and the ISM non-manufacturing PMI for signs of cooling inflation.
Investors will also be focused on the Fed’s “Beige Book” for a snapshot of the US economy, ahead of the keenly awaited inflation data scheduled for next week.
Traders’ odds for a pause in interest rate hikes in the central bank’s September meeting remained intact at 93pc, with bets on a pause in November at 54.3pc, according to the CME FedWatch Tool.
In premarket trading, the Dow Jones Industrial Average and S&P 500 were down 0.2pc and the Nasdaq 100 had fallen 0.3pc.
11:26 AM BST
NatWest lines up new chairman after Farage debanking scandal
NatWest Group is reportedly lining up the former chairman of MasterCard to replace Sir Howard Davies as chairman following the Nigel Farage debanking scandal.
Our banking & financial services correspondent Simon Foy has the details:
Read on for more about the new chairman, who is one of Britain’s most experienced businessmen.
11:19 AM BST
Halfords gets sales fix from car maintenance
Retailer Halfords has seen strong demand for motoring maintenance and servicing boost sales, but said retail trading was held back by unsettled summer weather and falling consumer confidence.
The car parts to bikes firm said “needs-based” products and services were the main driver behind a 14.1pc rise in total revenues over the five months to August 18, with sales up 7.8pc on a like-for-like basis.
Like-for-like sales soared 16.6pc across its autocentres chain, while retail sales rose 3.4pc.
Spending on discretionary ranges was more lacklustre so far in its second quarter, with cycling, car cleaning and touring products hit by “unfavourable weather and low consumer confidence”.
Bike sales fell 2.7pc on a comparable basis, the group said. Halfords said it was on track with full-year expectations, forecasting pre-tax profits of between £48m and £58m.
Shares in the firm have gained 2pc.
Chief executive Graham Stapleton said: “It’s been a good start to the year for Halfords, and our ongoing focus on essential maintenance and servicing is driving a strong performance in our autocentre and retail motoring business.”
11:13 AM BST
German factory orders plummet
German factory orders fell more than expected in July in the latest setback for Europe’s largest economy as it grapples with an industrial slowdown.
New orders, closely watched as a sign of future economic activity, plummeted by 11.7pc compared with the previous month, federal statistics agency Destatis said.
The steep fall was mainly down to the comparison with June, when the indicator leapt by a surprising 7.6pc on the back of several large orders including a major one in the aerospace sector.
Analysts surveyed by financial data firm FactSet had expected a smaller July decline of 3.5pc.
10:59 AM BST
Pound slips as oil prices raise inflation fears
The pound has fallen against the dollar as increasing oil prices raised concerns that the US Federal Reserve could be forced into more interest rate rises.
Sterling was last down 0.1pc against the greenback at $1.25.
Brent crude broke above $90 a barrel on Tuesday for the first time this year as Saudi Arabia and Russia announced further reductions in production.
The move has raised concerns about inflation, although oil has slipped back marginally today by 0.7pc to below $90.
10:38 AM BST
Wilko store closures revealed
Administrators have set out details of Wilko store closures, which will result in 1,300 job losses, as they continue to seek buyers for large parts of the discount chain’s estate.
The following stores will close on Tuesday, September 12:
Acton, Aldershot, Barking, Bishop Auckland, Bletchley FF, Brownhills, Camberley, Cardiff Bay Retail Park, Falmouth, Harpurhey, Irvine, Liverpool Edge Lane, Llandudno, Lowestoft, Morley, Nelson, Port Talbot, Putney, Stafford, Tunbridge Wells, Wakefield, Weston-super-Mare, Westwood Cross, Winsford.
The following stores will close on Thursday, September 14:
Ashford, Avonmeads, Banbury, Barrow in Furness, Basildon, Belle Vale, Burnley (Relocation), Clydebank, Cortonwood, Dagenham, Dewsbury, Eccles, Folkestone, Great Yarmouth, Hammersmith, Huddersfield, Morriston, New Malden, North Shields, Queen Street Cardiff, Rhyl, Southampton-West Quay, St Austell, Stockport, Truro, Uttoxeter, Walsall, Woking.
Edward Williams, joint administrator, said:
In the absence of viable offers for the whole business, very sadly store closures and redundancies of team members from those stores are now necessary.
The loss of these stores will be felt not only by the team members who served them with such dedication, including through the uncertainty of recent weeks, but also the communities which they have been a part of.
10:15 AM BST
Construction to weaken for rest of the year, experts warn
The construction sector will weaken as the year goes on as the industry grapples with the impact of high interest rates, experts have warned.
The construction sector managed a PMI of 50.8 overall in August, although housebuilding suffered a sizeable dip.
Giulia Bellicoso, assistant economist at Capital Economics, said the fall in the housing reading to 40.7 in August was “in line with recent housing construction data, which has contracted for nine consecutive months”. She said:
High mortgage rates have taken the cost of buying a home out of reach for many, causing demand for new builds to slump.
The housing balance is currently consistent with an 20pc year on year drop in housing starts in Q4. We anticipate a fall of closer to 33pc, so the survey is likely to get worse still before we can think about recovery.
She added: “All told, we think that construction PMIs will weaken over the remainder of the year.”
Max Jones, director in Lloyds Bank’s infrastructure and construction team, said: “Despite another rise in output, sentiment remains somewhat subdued among contractors we speak to, with order books and working capital levels flatter than they’d like.
“Ongoing pressures from the cost and availability of materials also means contractors will be monitoring the health and performance of their supply chains closely.”
09:55 AM BST
Housebuilding suffers steepest downturn outside of pandemic since 2009
Housebuilders suffered their second biggest downturn since the first Covid lockdown last month as rising interest rates hammered the property sector, according to a closely-watched survey.
The S&P Global/CIPS UK Construction purchasing managers index (PMI) showed housebuilding remained the weakest-performing part of the construction sector, with a reading of 40.7 amid subdued market conditions and cutbacks to new build projects.
Overall, the construction sector managed a reading of 50.8 in August, indicating slight growth in output, but business activity forecasts for the year ahead were the weakest since January and job creation lost momentum.
Tim Moore, economics director at S&P Global, said:
UK construction companies experienced another slump in house building activity during August as rising interest rates and subdued market conditions resulted in cutbacks to client demand and new build projects in particular.
Aside from the pandemic, the recent downturn in residential work has been the steepest since spring 2009.
Resilient demand for commercial work and infrastructure projects are helping to keep the construction sector in expansion mode for now, but the survey’s forward-looking indicators worsened in August.
Total new orders decreased at the fastest pace for more than three years amid worries about the broader economic outlook and the impact of elevated borrowing costs.
09:37 AM BST
Gas prices flat despite strike threat
European natural gas prices were flat despite the risk of looming strikes in Australia amid a recent recovery in imports of fuel via tankers.
Benchmark futures were unchanged at around €34.50 per megawatt hour as the clock is ticked on Chevron to negotiate a deal with unions in Australia to avoid walkouts at two major liquefied natural gas plants.
Should the strikes at Gorgon and Wheatstone go ahead, any impact could be limited amid strong storage levels in Europe.
Imports of LNG in Europe are recovering after a dip, helping offset reduced pipeline flows from Norway amid maintenance to major plants.
09:22 AM BST
Darktrace slumps as it faces year of ‘two halves’
Darktrace has sunk toward the bottom of the FTSE 250 after it cut its outlook for earnings.
The Cambridge-based cybersecurity business said it predicted adjusted earnings before taxes and other charges to be in the range of 17pc to 19pc for 2024, down from previous estimates of about 22pc.
The company said the year ahead would be a “tale of two halves”, with the first six months “stabilisation and second half re-acceleration”.
Revenues for the year to the end of June were up 31pc to $545m (£434m), with net profit rocketing from $1.4m to $58.9m.
However, shares have slumped 3.4pc.
Saad Maqsood, an analyst at Third Bridge, said: “Darktrace noted in March that they were investmenting in their go-to-market strategy.
“Our experts argue that there’s a growth opportunity for Darktrace if they can sort out their sales strategy and partner more closely with managed security services providers (MSSPs).”
09:00 AM BST
Monzo launches ‘call status’ tool to tackle scams
Digital bank Monzo has become the first UK bank to launch a “call status” tool to prevent its customers falling victim to impersonation scams.
The in-app feature will tell customers whether the bank is calling them or if they are being targeted by fraudsters with an attempted scam.
It is the first feature of its kind from a UK bank that lets people verify the caller, Monzo said.
Impersonation scams happen when a criminal contacts a person, pretending to be a trusted organisation like a bank or a utilities provider, and often making an urgent request for money or personal and financial information.
More than £177m was lost to thousands of cases of the sophisticated scam during 2022, according to figures from UK Finance.
Banking customers are typically advised to end a call if they are suspicious of the caller, and then contact their bank directly.
But Monzo’s new tool will let people check their “call status” in the app, which will show whether or not a member of the bank’s team is talking to them at that moment.
“If someone is telling you they’re from Monzo, hang up now,” the status will read if the call is not verified.
08:40 AM BST
Chinese officials told not to bring iPhones to work
China has reportedly ordered officials at central government agencies not to use Apple’s iPhones and other foreign-branded devices for work.
Staff at “some” central government regulators also received instructions via chat groups and in meetings to stop bringing such devices into the office, according to the Wall Street Journal.
The move comes a month after Joe Biden’s administration banned US investments into Chinese technology.
The UK banned the use of China mobile giant Huawei’s technology in the rollout of the nation’s 5G network.
08:26 AM BST
Barratt slumps amid wider downturn on FTSE 100
Barratt Developments fell after the homebuilder warned of a tough housing market environment amid wider falls across the FTSE 100.
The UK’s exporter-heavy blue-chip index dropped 0.8pc in early trading, while the domestically focussed FTSE 250 index declined 0.5pc.
Shares of Barratt dropped 1.6pc after Britain’s largest housebuilder posted a drop in annual profit and forecast difficult trading conditions over the coming months.
The broader housebuilders index declined 1.1pc.
Global markets also extended losses for a second day as faltering growth in China and Europe heightened concerns about global economic momentum.
Emerging markets-focused fund manager Ashmore’s shares fell as much as 4.3pc after it reported a 6pc drop in annual profit.
WH Smith rose 2.6pc after the retailer reported a 28pc jump in annual revenue, boosted by strong demand during a busy summer travel season.
08:19 AM BST
Air traffic control chaos down to ‘one in 15m’ glitch, says boss
The technical glitch which caused widespread disruption to flights last week was a “one in 15 million” occurrence, an air traffic control (ATC) boss said.
National Air Traffic Services (Nats) chief executive Martin Rolfe said one of its systems failed after it “didn’t process (a) flight plan properly”.
The plan submitted by the airline – which has not been named – was “not faulty”, he added.
The problem led to Nats being unable to process flight plans automatically for several hours on August 28, a bank holiday Monday and a peak period for air travel.
More than a quarter of flights were cancelled that day, affecting around 250,000 people, with cancellations continuing for two more days.
Asked what the odds of this happening were, Mr Rolfe replied: “We know it’s at least one in 15 million, because we’ve had 15 million flight plans through this system and we can be absolutely certain that we’ve never seen this set of circumstances before.”
In a preliminary report shared with Transport Secretary Mark Harper, Nats did not identify the route of the flight plan which led to the chaos but stated the aircraft was scheduled to enter UK airspace during an 11-hour journey.
08:06 AM BST
UK markets slip as Chinese and European growth falters
The FTSE 100 has opened lower after faltering growth in China, the UK and Europe heightened concerns about global economic momentum.
The UK’s blue-chip index has slumped 0.5pc to 7,400.57 while the midcap FTSE 250 has dropped 0.4pc to 18,422.63.
07:56 AM BST
Wagamama owner’s sales rise amid activist investor pressure
The owner of Wagamama has reported an increase in sales as it battles against a plot by activist investors to break up the business.
The Restaurant Group revealed a 10pc increase in total revenue to £467.4m as like for like sales increased by 7pc at Wagamama and 8pc across its pubs division.
The company made a pre-tax profit of £2.3m in the first half of the year, compared to a loss of £28.5m a year earlier.
It comes after the Telegraph revealed in July that TMR Capital is considering a swoop for two of the four divisions at The Restaurant Group.
The British Virgin Islands-based investor is eyeing a bid for the company’s Brunning & Price pub division and its casual dining chains, which include Frankie & Benny’s and Chiquito.
Chief executive Andy Hornby said:
We are encouraged by the significant progress made in the first eight months of the year, delivering strong like-for-like sales growth despite the consumer backdrop. In light of the strong trading we are increasing our expectations for FY23 adjusted ebitda.
We are making excellent progress on our medium-term plan and the board continues to actively explore strategic options to further accelerate margin accretion and deleveraging.
07:39 AM BST
WH Smith sales take off as international travel returns
Retailer WH Smith said full-year sales jumped higher thanks to the rebound in international travel.
The group reported a 28pc rise in total group revenues over the year to August 31, after a 17pc rise in the second half.
Sales in its travel arm leapt 42pc higher, up 27pc on a like-for-like basis as trading has been buoyed across its stores based at sites including airports and railway stations due to the recovery in travel worldwide.
Second-half comparable travel sales lifted 15pc, while sales edged 1pc higher in its high street estate.
WH Smith said: “In the UK, we saw continued strength in air passenger numbers in the peak holiday season, building on the recovery in passenger numbers that we saw in the second half of the previous financial year.”
07:33 AM BST
Virgin Media O2 buys broadband business founded by sanctioned oligarch
Virgin Media O2 has snapped up a broadband firm from a fund set up by a sanctioned oligarch after the Government ordered the sale on national security grounds.
Our media reporter James Warrington has the latest:
The telecoms giant has inked a deal to buy Upp from LetterOne, which was founded by Ukrainian-born billionaire Mikhail Fridman in 2013.
Upp is one of a number of challenger broadband firms known as “alt nets” that are looking to take on BT with their own full-fibre networks.
The company is behind a £1bn project to roll out the high-speed internet connections in East Anglia.
The sale, understood to be valued at tens of millions of pounds, was ordered last year by then-Business Secretary Grant Shapps.
He said the move was necessary to prevent, remedy or mitigate the risk to national security.
Mr Fridman and his Russian business partner Petr Aven were forced to step down from LetterOne after they were hit with EU sanctions following Russia’s invasion of Ukraine.
07:31 AM BST
Barratt ‘has limited control of its own destiny’
After Barratt revealed its latest results, Charlie Huggins, a manager at broker Wealth Club, said:
Lower home completions combined with elevated build cost inflation have taken their toll on Barratt Developments and its peers. New home buyers are clearly exercising greater caution, and the outlook for the coming months is highly uncertain.
Mortgage rates have increased significantly over the past year and have been highly volatile from one week to the next, making it very difficult for home buyers to plan their next move. First time buyers have experienced even greater pressure, given the limited availability of high loan to value mortgages and the end of the Help to Buy scheme in England.
Barratt is doing everything it can to weather the storm, reducing costs and stepping back from the land market. But like all housebuilders, it has limited control of its own destiny and needs market conditions to improve.
The outlook for Barratt is murky at best right now. Cracks are starting to appear in the housing market, and while interest rates should be close to peaking, first time buyers remain under enormous pressure. Until there is greater clarity on the future path of interest rates it seems unlikely market conditions will significantly improve.
07:29 AM BST
Mortgage squeeze triggers slump at Britain’s biggest housing developer
Britain’s biggest housing developer said customers are struggling with mortgage affordability as it revealed a fall in profits.
Barratt Developments revealed a 3.9pc decline in the number of completions to 17,206 in the year to the end of June, weeks after bosses slashed its targets for the coming year to between 13,250 and 14,250.
The company suffered a 16.2pc fall in its adjusted annual pre-tax profits to £884.3m, down from more than £1bn the previous year. Revenues were up 1pc to £5.3bn.
It suffered a fall in profitability, with return on capital employed down to 22.2pc from 30pc, with forward sales down to 49pc for next year, compared to 62pc last year.
It comes after 14 consecutive increases in interest rates by the Bank of England to 5.25pc, with at least two more rate rises priced in by money markets.
Chief executive David Thomas said: “Customers continue to face cost of living and mortgage affordability challenges, and new developments are increasingly constrained by an ineffective planning system.
“Whilst we expect that the backdrop will continue to be difficult over the coming months, we are a resilient business with a strong balance sheet and an experienced management team.”
07:16 AM BST
Good morning
Thanks for joining me. Britain’s largest housebuilders has revealed the slump in profitability and house completions as consumers are squeezed by rising interest rates.
Barratt Developments revealed a 16.2pc fall in its adjusted annual pre-tax profits to £884.3m amid the fall in mortgage affordability.
5 things to start your day
1) Saturday post ‘under review’ as struggling Royal Mail looks to cut costs | Company claims its current obligations are ‘outdated and in need of urgent reform’
2) British chipmaker Arm to cut valuation ahead of US listing | Microchip designer faces questions over growth since filing to go public two weeks ago
3) Shoplifting no longer seen as a crime, says Asda chairman | Lord Stuart Rose joins calls demanding police do more to tackle wave of thefts
4) Reward savers and boost the economy with ‘Great British Isa’, says top fund manager | Mike O’Shea urges policymakers to create a tax-free vehicle to increase UK investment
5) Facebook scraps $1.6bn funding scheme as Sir Nick Clegg project fails | Company shifts focus to short-form video as it faces stiff competition from TikTok
What happened overnight
Shares were mostly lower in Asia after a decline on Wall Street as traders returned from a long holiday weekend.
Japan’s Nikkei 225 index advanced but most other regional markets fell.
Crude oil prices pushed higher after the fresh supply cut announced by Saudi Arabia and Russia, adding to inflationary pressures at a time when investors are hoping to see central banks back away from interest rate hikes.
Tokyo’s Nikkei 225 advanced 0.5pc to 33,208.26. In Seoul, the Kospi declined 0.6pc to 2,567.12.
The S&P/ASX 200 in Australia slipped 0.8pc to 7,257.70 as the government reported the economy grew at a 2.3pc annual pace in the last quarter. In quarterly terms, it expanded a modest 0.2pc. The figures were better than expected.
Hong Kong’s Hang Seng index sank 0.8pc to 18,306.24, extending losses as the market eases back from gains fueled by recent stimulus measures for the ailing Chinese property market.
The Shanghai Composite index shed 0.3pc to 3,143.62. India’s Sensex edged 0.1pc lower.
Stocks closed lower on Wall Street as traders returned from a long holiday weekend.
The S&P 500 fell 0.4pc to 4,496.83. The Dow Jones Industrial Average dropped 0.6pc to 34,641.97. The Nasdaq composite dipped 0.1pc to 14,020.95.
The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, rose to 4.27pc from 4.18pc late Friday.
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