Meta falls foul of new EU rules and housebuilders rise on Nationwide figures

“It’s impossible for investors not to consider the importance of stable government as so many countries face potential upheaval from disgruntled voters” says Danni Hewson, Head of Investment Analysis at AJ Bell.

“France’s far-right might not have pulled as much support as had been expected and that’s given markets a bit of breathing space today. But with the UK heading to the polls in a few days and big questions being asked about Joe Biden there’s more than enough to set nerves on edge.

“But markets have made looking to the future an art form, looking past present volatility and pricing in what’s next long before it happens.

Meta

“Meta is the latest US tech giant to incur the wrath of EU regulators who are flexing the muscles given to them by this year’s Digital Markets Act.

“In what was seen as a clever workaround the social media giant gave users a chance to pay for an ad-free version of Facebook and Instagram, but critically it didn’t ask them to opt in to the barrage of advertising now littering its pages.

“Like Apple before it, Meta now has a chance to go away and mull over its options but failure to win over the commission might result in hefty, multi-billion-euro fines which could take a considerable bite out of global profits.

“In isolation this breach of digital rules wouldn’t really trouble those powerful tech giants which have a huge global footprint, but the EU’s stance is being viewed as the thin end of the wedge, with other regulators, including those in the US, taking a long, hard look at the dominance of these behemoths.

“For years ‘Big Tech’ has run tame, but there has been growing concern that the lack of robust oversight had allowed them to force smaller rivals off the field, giving them a position of power over the consumer; a position that has become more uncomfortable as AI accelerates our reliance on all things tech.

UK Housebuilders

“It could be a big week for housebuilders with companies like Persimmon, Taylor Wimpey and Barratt already on the front foot as latest data from Nationwide shows average prices are still rising even as would-be buyers struggle with high mortgage rates.

“If the polls are to be believed Labour is on its way into government and, if it follows through on its manifesto pledge, 1.5 million new homes will be built over the next parliament.

“The party has also pledged to shake up the planning system, to bring back national housing targets, and deliver a huge increase of social and affordable homes.

“Affordability has long been a huge issue for first-time buyers who look with longing at the property owned by their parents and grandparents and wonder if they’ll ever retire the moniker ‘generation rent’.

“For developers and their shareholders, it could be the claxon call that gets Britain building, though there will undoubtedly be many uncomfortable discussions about exactly where development would best serve the country.”

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