While the news that inflation has fallen again compared to the month before, you’d be forgiven for asking it to hurry up. Consumer prices rose 10.5% from a year earlier, slower than the 10.7% last month and the peak at 11%. Don’t, however, tell the tourists buying Burberry’s luxury trenchcoats, sending its sales soaring in Europe.
(Bloomberg) — While the news that inflation has fallen again compared to the month before, you’d be forgiven for asking it to hurry up. Consumer prices rose 10.5% from a year earlier, slower than the 10.7% last month and the peak at 11%. Don’t, however, tell the tourists buying Burberry’s luxury trenchcoats, sending its sales soaring in Europe.
Here’s the key business news from London this morning:
In The City
Burberry Group Plc: Coronavirus-related disruption in China pushed down the British luxury brand‘s sales to below analyst estimates.
- A 23% fall in mainland China sales was partially offset but strong sales in South Korea, Japan, as well as a 19% improvement in European sales led by tourists
- Luxury-goods peer Compagnie Financiere Richemont SA also reported today slumping sales in China after coronavirus cases reduced customer traffic and forced it to close stores
Currys Plc: The electronic goods retailer reported strong sales in the UK, particularly in domestic appliances and mobile phones, although trading in consumer electronics and computing was weaker.
- The company’s international operations were slower, leading to weaker profits from continued pressure on its gross margin
Antofagasta Plc: The mining company said the relaxation of coronavirus restrictions in China and wider demand for the commodity led to a positive start to the year for copper.
- That’s good for the company’s mines, especially given that it expects to product more copper in this year than the year before
In Westminster
Foreign Secretary James Cleverly said there have been “real improvements” in Brexit negotiations with the European Union, his first televised remarks on the matter since holding a video call with European Commission Vice-President Maros Sefcovic on Monday.
Meanwhile, the UK’s clean energy goals are being threatened by slow investment in home efficiency measures such as heat pumps and better insulation, according to a think tank.
In Case You Missed It
Sustainability managers, chief growth officers and cloud engineers are among the 15 most in-demand jobs in the UK — just as the hiring battle is showing signs of cooling down.
British billionaire and Manchester United fan Jim Ratcliffe officially joined the race to buy the English soccer giant. United supporter groups have long called for a change in ownership amid a perceived lack of investment in playing staff and facilities.
Finally, the cost-of-living crisis is driving investment in Britain’s student halls, as undergraduates hunt for tenancy agreements that lock in the price of their bills.
Looking Ahead
Deliveroo Plc’s fourth-quarter update tomorrow will be closely watched for further progress toward its goal of reaching adjusted Ebitda breakeven as soon as the second half of this year. The rival of Just Eat Takeaway.com NV may need to cut costs to make this happen, although trimming marketing spend could also hamper customer growth, according to Bloomberg Intelligence’s Diana Gomes.
While gross transaction volume in the UK and Ireland rose 11% in the third quarter, the international segment dipped 2%, adjusted for currency effects. Deliveroo recently announced exits from Australia and the Netherlands amid strong local competition. Any plans for further retreats would be of interest.
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