Hi Nala, the drop coincided with the release of the US job/payroll data. The numbers of people on the payroll were higher than forecast meaning that the labour market will be tight and inflation even higher. The Fed will have to increase interest rates faster and further to counter this.
Rising interest rates are not good for a company like BBOX which has £1.4billion of debt. More money being spent on interest repayments means less profits and lower dividends. The same applies for their customers/tenants which could put pressure on rents and cause vacancies.
Why? On the whole, I think that Unilever's products are superior to their rivals or supermarket own brands. No doubt some will trade down as the cost of living crisis worsens, but for many Unilever goods are worth the extra money.
All valid points. We potentially could be at or near the peak of inflation; the price of oil is down 20% from its recent peak, iron ore is down 50%, wheat and copper are down by around 40%. The NI reductions will also feed in to pay packets from this month. True, the energy rises in October will hurt a lot of people but the new Tory leader will have to address this is in one form another.
It's hard to take a contrarian view when a share is down 80% in a year, but whilst down side risk is still there, there are some signs we may avoid (a technical) recession and keep inflation under wraps. If we can do that and the shorts reduce then the next 12 months could be interesting.