Langton Capital – 2023-07-31 – Food costs, service sector, sales, train strikes, company updates etc.:
Food costs, service sector, sales, train strikes, company updates etc.:A DAY IN THE LIFE: It’s maybe a bit sad but the sense of achievement in having cut the grass, particularly given the many and varied downpours we’ve been having, was off the charts over the weekend. Yeah, punch sky. Not an endearing spectacle in itself and, whilst the grass may be ragged, unedged, tufty in parts and generally poorly cut, at the end of the day, it’s shorter than it was and that’s what matters. And looking at the weather going forward, it seems to be poor and then it gets worse. Not good. And my mood isn’t lifted particularly by the fact that the weather app keeps defaulting to Rome, our most recent overseas jaunt, where it’s 32 degrees and sunny for as far as the eye can see. Anyway, it’s another of those five day weeks and already we’re tired. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories (after the ellipses) are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium are £395 for one subscription, £695 for multiple, £995 for very large subscribers, all plus VAT. Or sign up for easy in, easy out monthly option per subscriber HERE https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN PUBS & RESTAURANTS: Food prices: CGA and Prestige Purchasing have announced that food price ‘inflation as measured by the CGA Prestige Foodservice Price Index rose again to 22.6% year-on-year in June—close to the record high of 22.9% in December 2022.’ The survey says that ‘in sharp contrast to supermarkets, where prices increased by just 0.4% during June, month-on-month inflation in the Index was more than five times higher at 2.2%….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Service sector declines: The CBI Growth Indicator shows that the weighted balance of activity across the private sector fell by 6% in the three months to July, down from 0% in June…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Trading: CGA has reported that, perhaps not surprisingly, drink sales ‘dipped’ in the week to 22 July on the back of poor weather…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Lumina Intelligence reports that consumer spend growth has been stagnant YoY in the 13 weeks ending 25 June, up just 1.7% and well behind inflation…. Cost of living crisis: Banks began to reduce fixed mortgage rates last week with TSB cutting rates by 0.55pp, HSBC by 0.35pp, Nationwide by 0.35pp and Barclays by 0.15pp…. Train strikes: Fresh from the weekend’s disruption, train drivers’ union ASLEF has announced that its drivers at 15 train companies in England will not work overtime from Monday to Saturday this week and again from 7-12 August…. Other news: KAM reports that 51% of parents want more nutritional food on children’s menus, with 26% wanting to see more sustainable ingredients and 25% wanting healthier drinks…. The BRC reports that six thousand shops have closed down across Britain in the last five years, with vacancy rates reaching 13.9% in Q2 this year. The high street vacancy rate worsened QoQ to 13.9% whereas the shopping centre vacancy rate was flat QoQ at 17.8%…. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. The FT points out that post-Brexit alcohol duty rules come into force in the UK next week. COMPANY NEWS: AB InBev has announced that it will cut hundreds of US corporate jobs, saying the cuts will impact fewer than 2% of its workforce…. McDonald’s CEO Chris Kempczinski has told an analysts presentation that ‘the UK is dealing with the worst, or close to the worst consumer sentiment in Europe.’ He says this is ‘putting some pressure on the business but we’re overall pleased with how our European markets are performing.’ Per MCA, Competitive Socialising – owner of the Swingers experiential golf bar brand – will prioritise the US for the expansion of the concept, with plans to reach 15 sites worldwide by 2026…. Coca Cola has announced that strong trading for Costa Coffee in the UK and China have helped to drive its coffee business to a strong second quarter result. Oatly shares dropped by c24% on numbers last week… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Getir has announced that it would be officially pulling out of Spain, Italy and Portugal but plans to continue operations in the U.K., the U.S., Germany, the Netherlands and Turkey…. Café chain Knoops has announced that it has organised a £6 million debt financing led by Eléonore de Lubersac, granddaughter of French banking tycoon Raoul de Lubersac…. Fireaway pizza is to open its 150th site just six years after launching its first. OTHER LEISURE: Games company Frontier Developments’ shares blipped up last week (before easing back) on gaming industry gossip that its F1 game has been much improved. Lane7 is set to open its first bowling alley in London, taking a large site in Victoria featuring boutique bowling lanes over several floors, an 18-hole ‘Instagram worthy’ golf course, and a food menu created by Patty & Bun. Lane7 launched in Newcastle in 2013 and now has 13 locations in cities including Bristol, Edinburgh and Sheffield. Mark Zuckerberg states that Threads’ focus is now on user retention, with more than half of its 100 million users failing to stick around after launch…. Bentley has reported revenue marginally down at €1.68bn from €1.71bn, with operating profits also slightly down at €390m…. HOLIDAYS & LEISURE TRAVEL: Minoan Group, the listed holiday resort company, has reported H1 numbers to end-April saying that discussions with the Public Welfare Ecclesiastical Foundation Panagia Akrotiriani regarding the development of its assets continue. The company says that the ‘lhe Loss for the period was almost halved compared to the same period last year to £286,000 (2021/22: £542,000)….’ FINANCE & MARKETS: The Bank of England has announced that Dr Ben Bernanke, former Fed chairman, ‘has agreed to lead a review into the Bank’s forecasting and related processes during times of significant uncertainty’. The Bank has been under pressure to explain errors in forecasting under current governor Andrew Bailey… • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Zoopla has said that it expects house prices to fall by 5 per cent in the next year. In real terms, the drop will be somewhat larger. Nominal house prices are up by just 0.6 per cent in the 12 months to June reports Zoopla, a drop of perhaps 7% or so in real terms. Sterling higher at $1.285 and €1.1671. Oil up at $84.40. UK 10yr gilt yield unchanged at 4.32%. World markets better on Friday but London set to open around 25pts lower as at 6.30m. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. |
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