BUZZ-Berkeley: bottom of FTSE 100 after warns of 30 pct profits fall next year
** London-focussed builder Berkeley's shares down 3 percent - bottom of FTSE 100 after co warns profits after 2018/2019 could be about 30 pct lower
** Co, which primarily operates near the top of the London property market, says housing market in London and the South East has remained subdued over the last year
** Says building costs have also risen 4-5 percent with increases across labour and materials
** Posts better-than-expected 15 pct rise in pretax profit to 935 million pounds
** "Despite its strong historical track record, we remain Underweight on Berkeley, given its falling earnings trajectory and its exposure to London & the South East, where we expect capital values to underperform in the short/medium term" - Morgan Stanley (Xetra: 885836 - news)
** Cautious commentary pulls down rival builders: Barratt Developments (-1.1 pct), Redrow (-1.6 pct), Crest Nicholson (Frankfurt: A1KCZN - news) (-1 pct)