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Hold Bellway for income: Housebuilder Bellway, one of Questor’s tips of the year, announced record revenues and earnings per share in its annual results, sending its shares almost 5% higher. John Watson, Chairman of the FTSE 250-listed group, said it had been an “exceptional” year in which the company hit record revenue and profits. Fears that the U.K. housing market was running out of steam have proved unfounded. Revenue increased by 33.8% to £1.49 billion, gross profit jumped 55.6% to £316.4 million and pretax profits soared by 74.5% to £245.9 million. Investors were rewarded with a 73.3% increase in the annual dividend to 52p, ex-dividend December 11 and payable January 14. Bellway sold 6,851 homes in the year ended July, up 21.2% on a year earlier. The full year growth rate has slowed on the 25% reported in the first half but it was still ahead of previous guidance of around 6,700 homes and ahead of both broker and market expectations. The housing group also finished the year with a strong balance sheet, it had net cash of £5.1 million at the end of July, reversing the net debt position of £5.8 million a year earlier. The cashflow was also strong during the year with cash generated from operations after tax and interest up 30% to £76.8 million that covers £45 million of dividend payments 1.7 times. The pension deficit was reduced to £7.9 million from £9 million a year earlier. We picked Bellway as one of our tips of the year due to the assistance it is getting from the Help to Buy scheme and we would hold on to pick up that income. Bellway at £15.65+82p Questor Says “Hold”.

The UK has blocked a €5bn deal by Russian billionaire Mikhail Fridman to acquire gasfields in the North Sea, as even private Russian companies with no connection to Russian president Vladimir Putin’s inner circle fall victim to the chill between Moscow and the west. The government’s move shows that the impact of US and EU sanctions, which have targeted Russia’s energy, banking and defence industries, is spreading beyond Kremlin-controlled groups to oligarchs with close western ties. (Financial Times)

US oil prices approached $80 a barrel on Wednesday, as investors continued to fret about weakening demand and plentiful supplies. Nymex November West Texas Intermediate ticked 94 cents lower to $80.92 a barrel in late afternoon trading, after dropping to an earlier low of $80.01 – a two-year low. ICE November Brent – the international benchmark – fell 91 cents to $84.14, after hitting a fresh four-year low earlier in the day. The price of Brent has dropped more than $30 since mid-June. (Financial Times)

Balfour Beatty poaches defence Boss as new CEO: Struggling construction group Balfour Beatty has poached Leo Quinn, the current Boss of defence research company Qinetiq, as its new Chief Executive, according to reports.

Saudi Prince Alwaleed says falling oil prices ‘catastrophic’: Saudi Arabia’s most high-profile billionaire and foreign investor, Prince Alwaleed bin Talal, has launched an extraordinary attack on the country’s oil Minister for allowing prices to fall.

CSR poised to reveal takeover by Americans: CSR, the Cambridge chipmaker that specialises in Bluetooth technology, has agreed to a takeover that will be announced, but will not be sold to suitor Microchip Technology

UK house price index rose less than expected in August In August, on an annual basis, the house price index registered a rise of 11.7% in the UK, less than market expectations for a rise of 12.3%. In the earlier month, the house price index had registered a similar rise of 11.7%.

Oil prices could fall below $80 as Opec keeps pumping: Oil prices are anticipated to fall below $80 per barrel as the Organisation of Petroleum Exporting Countries (Opec) is increasingly expected to keep its spigots open as the world’s biggest drillers fight for market share.

China property: mind the gaps: Agile Property now trails the leader board by some distance, having halved this year. Late on Friday, the company announced that Chairman and Founder Chen Zhou Lin had been detained on the mainland as early as 10 days previously. There is little other information; the arrest may have nothing to do with the business. That the stock closed down 17% shows how jumpy investors are. Yields on other property bonds rose more than 1% in sympathy. But the cost of debt remains bearable, at between 4% (for China Resources Land) and 11% (China Evergrande). And costs of funds in China may be set to rise. Early this month, Premier Li Keqiang indicated that the central government will no longer guarantee – even implicitly – all loans made by local government finance vehicles (LGFVs). According to Bloomberg data, LGFVs have issued Rmb1.7tn ($278 billion) of debt this year, up nearly one half compared with all of 2013. Even if listed companies do not take loans from their local governments, the blurry line between government and investment means that tightening liquidity is likely to have knock-on effects. And at the bottom end, the sector’s balance sheets already look extremely shaky. Net debt to equity at China Evergrande, for instance, is 120%.

Statoil to sell stake in Caspian project for $2.25 billion to Petronas: Norway’s Statoil on Monday announced plans to sell its remaining stake in the Shah Deniz gas project in Azerbaijan as the state-controlled energy company faces pressure to cut spending and meet dividend commitments.

Oil slides as Saudis dig in for price war: Oil prices have hit a near four-year low after Saudi Arabia indicated that it was digging in for a drawn-out price war.

UK retail sales across all sectors unexpectedly dropped in September Retail sales across all sectors unexpectedly eased 2.1% on an annual basis in September, in the UK, compared to a rise of 1.3% in the previous month. Markets were anticipating retail sales across all sectors to climb 1.0%. UK employment confidence index climbed in September The employment confidence index rose to a level of 10.0 in September, in the UK. The employment confidence index had registered a reading of 6.0 in the preceding month.

Iran warns Opec indecision will hit oil prices as crude slumps: Oil prices will slump further if the Organisation of Petroleum Exporting Countries (Opec) repeats its mistakes of the 1990s and fails to cut its production fast enough to cope with a glut of crude now flooding the international market, Iran’s Oil Ministry has warned.

Lenders warn Bank of England over risks to mortgage market: The Bank of England is being warned about the risks to the mortgage market as it considers proposals this week to toughen rules limiting the borrowing of Britain’s big banks.

American shale revolution ends Saudi Arabia’s reign as oil king: The United States is set to be crowned the world’s largest producer of liquid petroleum this week, knocking Saudi Arabia off the top spot for the first time in two decades.

UK construction output unexpectedly slid in August In August, construction output unexpectedly eased 0.3% in the UK on a YoY basis, less than market expectations for a rise of 2.9%. Construction output had registered a revised rise of 4.3% in the preceding month.

Sell Carnival as Ebola fears hit sector: The cruise holiday industry has been hit hard by the spread of the deadly virus Ebola. The travel sector suffered further losses when Prime Minister David Cameron said Ebola testing was needed to “keep people safe”. Anyone now arriving at airports and Eurostar terminals from areas that have been affected by Ebola will be screened. Shares in cruise operator Carnival [LON:CCL] ended last week down by 10% at £22.11. The company had to take action and change itineraries of two ships that were scheduled to land in ports near West African countries hit by the spread of the virus. Until the Ebola fears escalated, things were improving for the cruise operator. In a trading update at the end of September, the company reported better-than-expected quarterly profits and raised its full year forecast as higher demand from Chinese holiday makers boosted ticket sales for cruises in Asia. The company said it now expected adjusted earnings of $1.84-$1.88 per share for the year ending 30 November 2014, up from its previous forecast of $1.60-$1.75. Net revenue yields, which combine ticket sales and money spent onboard, are expected to be flat. Carnival was also in line to receive an added boost from falling fuel costs. Fuel makes up about a quarter of the total cost of running a cruise liner. This has been painful for the industry, with the benchmark Brent crude price staying around $110 a barrel. However that has all changed this year as the oil price has collapsed by more than 20% since $115 per barrel in June to below $90 as excess global oil production and falling demand has hit prices. Carnival at £22.07. Questor says “Sell”.

Halt Balfour sell-off, City analyst urges: Balfour Beatty’s future has been thrown into confusion after a leading City stockbroker said investors should block the £820 million sale of Parsons Brinckerhoff.

HOUSE PRICES TO RISE 30pc IN FIVE YEARS This is according to research from Rightmove and Oxford Economics, but if you thought this was going to be just a London phenomenon, think again. Southampton, Luton, Brighton and Swindon are the areas likely to see the biggest increase by 2019, according to the research.

The Royal Institute of Chartered Surveyors says house prices in London fell for the first time in almost four years last month, and will continue to do so in the coming months. House prices in the rest of the UK still growing, but at the slowest rate for over a year.