Inflation continues to be the number one issue cropping up in company reports. The higher prices are squeezing customers wallets and businesses margins, contributing to an economic slowdown. Fortunately for pets, trends of “humanisation and premiumisation” are meaning their owners are still spending to keep them in kibble as Pets at Home revealed this morning. And Man. United is back in the spotlight after its announcement yesterday.
Author of the article:
Bloomberg News
Charles Capel and Leonard Kehnscherper
Publishing date:
Nov 23, 2022 • 1 hour ago • 2 minute read
(Bloomberg) — Inflation continues to be the number one issue cropping up in company reports. The higher prices are squeezing customers wallets and businesses margins, contributing to an economic slowdown. Fortunately for pets, trends of “humanisation and premiumisation” are meaning their owners are still spending to keep them in kibble as Pets at Home revealed this morning. And Man. United is back in the spotlight after its announcement yesterday.
Here’s the key business news from London-listed companies this morning:
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In The City
Irish Continental Group Plc: The shipping provider says recent weakness in deep sea container movements shows the impact of an economic slowdown triggered by higher inflation and interest rates.
- The company and its customers are facing a “concerning” level of price rises, and although some of the increase in petrol prices may fall with the economic slowdown, other costs have increased
Pets At Home Group Plc: People are continuing to buy and spend money on their pets, despite the economic slowdown, propelled by trends of “humanisation and premiumisation,” the pet care company says in its earnings report.
- Inflation, however, continues to impact the business and its customers, with foreign exchange, energy and rising wages putting pressure on its margins forcing them to mitigate them where possible
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De La Rue Plc: The passport and currency maker’s margins have been impacted by a worse sales mix and issues in its supply chain.
- Still, the company has managed to reduce the costs of their supply chain inflation to “less than half” of its initial expectations
In Westminster
Rishi Sunak suffered a blow to his authority as he struggled to quell Conservative rebellions on multiple policy fronts, and his downcast MPs threatened an exodus from Westminster ahead of the next election. Yesterday evening, the prime minister was forced to pull a vote on major housebuilding plans due next week, after some 47 Tory backbenchers signed an amendment that threatened to defeat the government.
Chancellor Jeremy Hunt is scheduled to testify to the Treasury Committee about his Autumn economic statement this afternoon, with the budget’s near-term fiscal boost to demand likely to grab policymakers’ attention, according to Bloomberg economists Ana Andrade and Dan Hanson.
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Meanwhile, Nigel Farage, a commodities trader for two decades before becoming the face of Brexit, is back in the world of markets and he’s got plenty to say about the state of finance.
In Case You Missed It
The owners of Manchester United are exploring strategic options that could lead to a full sale of the club. The Glazer family is working with financial advisers on the process, which could also lead to a partial sale of the club or investments including stadium and infrastructure redevelopment. A few hours before this news, the club also announced the departure of its star Cristiano Ronaldo.
Abrdn Plc is on track to reclaim its place in the UK’s blue-chip stock index after asset managers outperformed during the recent market rebound.
Looking Ahead
B&Q owner Kingfisher Plc and Dr. Martens Plc are among the companies reporting earnings tomorrow. Dr. Martens’ brand strength, along with a digital push and new stores, mean the shoemaker could overcome the squeeze on discretionary spending, according to Bloomberg Intelligence.
For a news fix when the day is done, sign up to The Readout with Allegra Stratton, to make sense of the day’s events.
—With assistance from Kwaku Gyasi.
