Langton Capital – 2022-05-10 – Confidence, prices, consumer spending, footfall, McColl’s, Cineworld etc.:
Confidence, prices, consumer spending, footfall, McColl’s, Cineworld etc.:A DAY IN THE LIFE: We’ve reintroduced Start the Day. It’s on the right in bold (or at the bottom if you receive the Word version of this email). It features: • Start the Day with a Song (back after its Covid shutdown. Suggestions, especially more recent releases, welcome), • Quotey McQuoteface (a Quote & general knowledge quiz), • A Little Birdie Told Us (interesting stuff whispered in our shell-like – comments & contributions welcome) • And Yesterday’s Tweets (which does what it says on the tin). See premium. Reply to this email to upgrade. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories are in the Premium Email. Reply to this email if you would like to upgrade. See Twitter for in-day comment. Let us know if you would like an example of the Premium Email or to comment on the new format. Prices for the Premium, unchanged for 2yrs, are £295 for one subscription, £495 for multiple, both plus VAT. Reply to this email to order & request invoice. Or sign up for easy in, easy out monthly option HERE INFLATION, FOOD PRICES & THE BANK OF ENGLAND: Foodservice prices: CGA and Prestige Purchasing have released their latest Foodservice Price Index, which shows that ‘year-on-year inflation in the foodservice sector hit 13.6% in March 2022.’ • See premium. Reply to this email to upgrade. Barclays has also commented on inflation, agreeing that ‘the invasion of Ukraine in late February 2022 lifted energy prices further and is likely to result in substantial food inflation.’ It says ‘inflation [is] expected to peak at c.9% y/y in April and remain elevated through 2022.’ Bank of England MPC member Michael Saunders has commented on the inflationary environment saying in a speech to a Resolution Foundation event that ‘secondary inflation’ could be a major problem unless the Bank takes action to ‘lean strongly’ against high inflation expectations. Mr Saunders voted last week for a 50bp increase in rates. • See premium. Reply to this email to upgrade. PUBS & RESTAURANTS: Consumer spending & footfall: Barclaycard has reported on consumer spending in April this year, saying that it is up 18.1% on last year, boosted by holiday spending. The measure picks up spending on credit and debit cards and it may be influenced by the switch from cash to plastic over recent years. • See premium. Reply to this email to upgrade. The latest retail numbers from BRC-KPMG show that sales dipped in April after a sharp drop in consumer confidence. • See premium. Reply to this email to upgrade. The Springboard Shopping Centre Index w/e 7 May showed +18.3% footfall YoY, but -14.2% compared to 2019. • See premium. Reply to this email to upgrade. A survey of the nation’s food intake shows a 57% jump in the proportion of households cutting back on food or skipping meals over the first three months of this year. One in seven adults (7.3 million) are estimated to be food-insecure, up from 4.7 million in January. The Food Foundation says many people are eating irregularly. Other news: UKH has said that it supports moves by Business Minister Paul Scully to widen the ban on exclusivity clauses. COMPANY NEWS: Another bloody day for the market and for the hospitality sector yesterday. Four percent losers included 888, Compass, Intercontinental Hotels, Marston’s, Nichols, Ten Entertainment and TUI. Five percent losers were Fever Tree, Jet2, On the Beach, Playtech, Saga & Whitbread. Six percenters wee Flutter, PPHE, Sportech and SSP. Rank was 7% down, Just Eat was 8% off. Cineworld and Entain were 9% lower. Carnival was 10% down, Hotel Chocolat was 11% down and, coming in in last place, Deliveroo was some 12% lower. • See premium. Reply to this email to upgrade. Hawksmoor plans to open in Liverpool later this year in the Grade II-listed India Buildings. Morrisons has reportedly fended off competition from EG Group in a race to buy McColl’s. The offer is expected to see McColl’s stores and workforce preserved in their entirety. Morrison’s is reported to have won over an offer from EG Group. The German Doner Kebab restaurant company is to open its 100th UK restaurant today. The company says ‘our goal for 2022 is to almost double our UK portfolio and continue our mission to bring the GDK experience to more cities and towns throughout the UK.’ HOLIDAYS & LEISURE TRAVEL: Staffing shortages: Travelodge has 700 vacancies it plans to fill before the peak summer season, with 640 of those being permanent positions. Roles range from hotel manager and assistant to housekeeper supervisor plus 20 maintenance engineers and 40 roles at the company’s head office in Thame, Oxfordshire. Birmingham Airport has been described as ‘absolute chaos’ as travellers face hours long queues. Travellers at Manchester Airport have also reported long queues on social media. There has been no recent news on the queues for new passport from HM Passport Office. Other travel news: STR reports that London’s hotels saw occupancy of 72.0% in April, with ADR of £151.42 and RevPar of £108.98. The overall improvement in weekday levels points to a return of corporate demand. American Express Global Business Travel CEO Paul Abbott claims corporate travel companies must consolidate to make the technology investments required to prosper. OTHER LEISURE: Cineworld has this morning reported that it has ‘obtained undertakings to waive from its holders of its guaranteed convertible bonds due 2025 in respect of events of default arising due to non-payment of amounts due to the former dissenting shareholders of Regal Entertainment Group.’ It says it is ‘continuing discussions with the Regal Litigation Parties and a further announcement will be made as and when appropriate.’ The Wall Street Journal reports that Peloton is actively courting investors to buy between 15 and 20% of the company in a bid to right the ship. The deal could bring some much-needed cash, as Peloton attempts to regain its footing amid gym re-openings and increased competition. FINANCE & MARKETS: Inflation. See feature above Pubs & Restaurants’ section. The Telegraph comments on house prices saying that ‘although experts disagree on when a crash could come, what might cause it, or how severe it would be, house prices are all but certain to go into reverse eventually. Previous drops have come with little warning and caused misery for millions of homeowners.’ Sterling up at $1.2364 and €1.1688. Oil price lower as investors switch from inflation to stagnation concers at $105.32. UK 10yr gilt yield back down through 2% to stand at 1.95%, down 6bps. World markets reported heavy losses yesterday. London set to open up around 13pts as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply to this email to upgrade. |
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