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"Greggs warns lower consumer confidence is hitting sales

Baking chain Greggs has warned that it faces ‘headwinds’ as UK consumer confidence falls, in a fresh blow to the economic outlook.

Greggs reported that sales growth slowed at the end of last year. In the final quarter of 2024, sales at its company-managed shops rose by 2.5%, weaker than the full-year sales growth of 5.5%.

Greggs says that it faced a “more challenging market backdrop” in the second half of 2024, as weaker consumer confidence hits footfall on the high street, meaning fewer visits to its stores.

Shares in Greggs have fallen by 9.5% this morning."

EST:

https://www.youtube.com/watch?v=7LKWshaqPzI

"Tesco and M&S shares fall despite strong Christmas trading

A flurry of top UK retailers are revealing how they performed over the crucial Christmas period – and seeing their shares fall.

Tesco, the UK’s largest supermarket, declared it enjoyed its “biggest ever Christmas”, with sales at established UK stores rising by 4% in the six weeks to 4 January. But shares have dropped by 1.6% this morning.

Marks & Spencer says it also had a good Christmas, with like-for-like food sales up 8.9% in the 13 weeks to 28 December.

M&S warns, though that “the external environment remains challenging, with cost and economic headwinds to navigate”. Its shares have fallen by 6% this morning.

Discount retailer B&M reported a 2.8% increase in UK sales in the last quarter of 2024, with CEO Alex Russo saying “the business remains undistracted by the current economic headlines”.

B&M has also narrowed its forecast for profit growth this year, knocking its shares down by 10% this morning."

"Profits in financial services are set to fall at their fastest rate since the depths of the financial crisis after Rachel Reeves’s Budget tax raid sent costs spiralling.

Britain’s leading industry is shedding staff and slashing investments as optimism in the tumbles to its lowest level since the aftermath of Liz Truss’s mini-budget in 2022, according to a quarterly survey of the financial industry by the Confederation of British Industry (CBI).

Two-thirds of financial services companies anticipate a drop in profits in the next three months, with just one in 10 expecting an increase - an imbalance that matches the very worst moments of the financial crisis when RBS was bailed out by the Government in late 2008."

"UK bond sell-off continues

UK borrowing costs are rising again this morning, despite the government’s efforts to calm the markets last night.

The yield, or interest rate, on benchmark 10-year UK debt rose by 12 basis points (or 0.12 percentage points) in early trading in London to 4.921%, the highest since 2008.

Thirty-year bond yields, which hit 28-year highs this week, are rising again too – up over 10 basis points to 5.474%.

These moves suggest investors are still fretting about the outlook for the UK economy, given concerns about low growth and inflationary pressures."

Can almost guarantee the BB are going to be saying "pump ahead of placing"

Thanks for posting Tro,

Minchin sounds so excited, lol.

Re the Eurozone:

"It’s time to bring growth rather than inflation-busting back onto the agenda, as we have argued before: Nothing less than the geopolitical relevance of Europe is at stake. Since 2019, gross domestic product per capita is up 2.5% in the euro area compared with 7.9% in the US. GDP growth in the bloc is expected to come in below 1% this year."

https://www.bloomberg.com/opinion/articles/2025-01-06/european-economy-ecb-s-lagarde-faces-a-make-or-break-2025

From what ive read Tro, theres some optimism that things may improve later in the year.

Once the tax increases etc, have settled in.

But it's all quite scary at the moment. Eurozone data is lousy too. Trump volatility, wars, etc.

"UK long-term borrowing costs highest since 1998

The UK’s long-term borrowing costs touched the highest level since 1998 ahead of a bond auction of 30-year gilts.

The yield (or interest rate) on 30-year gilts, as UK government bonds are known, climbed by three basis points to 5.21% earlier this morning, and is now at 5.19%. The move came ahead of an auction for £2.25bn."

"Next, said it will increase prices by 1% this year to help offset a £67m rise in wage costs driven by tax changes announced in the government’s autumn budget."

"UK retailers may have to cut thousands of jobs after bleak Christmas

In a sign of how tough things are in the retail sector, Britain’s largest retailers are warning they could be forced to cut thousands of jobs this year as the industry braces for higher taxes and employment costs after a bleak Christmas shopping season.

Reflecting tough trading conditions on the high street, figures from the British Retail Consortium (BRC) show sales growth over the “golden quarter” between October and December came close to flatlining."

That "Yeah", was with reference to the super sanctions, lol.

Tro,

Yeah, lol.

Gold as a hedge against Trump, lol.

Thanks Tro,

GBP: O&G Nambia, Gold in Western Australia.

Got a few MILA too.

Bought GBP.

Tro,

lols.

Settings icon - audio-track, an English voice-over can be selected if preferred.

https://www.youtube.com/watch?v=u321m25rKXc

Report on the interview:

https://www.telegraph.co.uk/world-news/2025/01/06/zelensky-clashes-with-us-podcast-host-over-forgiving-putin/