The FTSE 100 will commence trading at 8am. Today’s companies with reports and trading updates include IHG and ITM. Read the live business blog from Friday 20 October below.
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Elon Musk, CEO of Tesla, witnesses a reduction of £7.5bn in his wealth due to share price decline
As the profits of the electric car manufacturer dropped, Elon Musk saw approximately £7.5bn wiped off his personal fortune.
In New York, the company’s stock plunged by as much as 9 per cent, resulting in a £57bn decrease in its overall value and eroding the value of Musk’s ownership stake. Nevertheless, his stake is still valued at £75bn, making him the world’s wealthiest individual. Remain an individual.
‘Retailers are acutely aware that consumers continue to prioritize their spending’
According to Aled Patchett, head of retail and consumer goods at Lloyds Bank:
‘Declining/unchanging sales suggest that despite low inflation rates on essential items like food, consumers remain cautious about their monthly household budgets. However, our latest UK sector tracker indicates that in September, prices charged by food and drink manufacturers reduced at the fastest rate in over three years. “This could potentially stimulate higher spending habits and further decrease costs for consumers.”
‘Retailers are well aware that consumers continue to prioritize their spending, including avoiding well-known brands and large purchases. Despite these factors, the slow pace of food price inflation might influence buyers’ decision-making.
‘Companies eager to boost sales in the final months of the year will be hoping that the combination of decreasing inflation and a surge in discounts will suffice to stimulate consumer spending.”
Anxious investors turn to cash savings and government bonds
Telegraph Media Group commences formal sale process
Telegraph Media Group and Spectator magazine have officially initiated a sale process, with the potential deal value reaching up to £600million.
In June, AlixPartners, a restructuring group, announced that Bank of Scotland had appointed receivers for the shares owned by the publisher’s owners, who failed to repay loans from the bank.
The receivers stated their intention to seek ways of recovering the debt for the bank, which is a subsidiary of the Lloyds banking group.
In August, publicly listed publisher National World confirmed its interest in Telegraph Group, which possesses newspapers and the company responsible for operating The Spectator.
According to Reuters, National World is searching for potential investors to assist in its bid for the group.
‘Depressed and unforeseen demand, coupled with high interest rates, are beginning to impact retailers’
Silvia Rindon, EY UK&I Retail Lead:
‘The amalgamation of pent-up and unanticipated demand, as well as high interest rates, is starting to affect retailers who did not utilize the pandemic period to restructure their businesses. Those who failed to invest further in their stores, offerings, or customers are discovering that shoppers are opting to go elsewhere.
‘Looking forward, the EY Item Club Autumn Forecast presents a mixed outlook for consumer spending, which is projected to benefit from various supports in the upcoming months.
‘Decreasing energy bills and food prices, as well as inflation, indicate that overall inflation is anticipated to reduce to an average of 7.4% this year before falling to 2.9% by 2024.
‘As we enter the final ‘golden’ quarter of the year, pricing and inventory management will be crucial priorities for retailers and brands.
‘Last year, many consumers postponed their spending for as long as possible in order to better manage their finances, resulting in significant discounts occurring earlier than usual. Retailers will need to evaluate the potential impact this could have on cash flow during a critical period of the year.”
Shareholder criticizes Hipgnosis music fund as ‘desperate’ ahead of crucial vote
Retail sales and consumer confidence experienced decline
According to the Office for National Statistics, the most recent data indicates a 0.9 per cent decrease in retail sales in September, highlighting a weakening of consumer purchasing power in the UK.
Furthermore, separate data from the GfK consumer confidence index on Friday displayed a decline in British consumer confidence, reflecting growing households’ concerns regarding personal finances and the overall economic outlook.
Source: www.dailymail.co.uk
