European Central Bank (ECB) Governing Council member and Bank of France President Francois Villeroy de Galhau told BFM on Friday that an interest rate cut in spring is "very likely."
He noted that although there is a "large consensus" that rate cuts are coming, there is still a "minor issue" regarding the exact timing. "Spring can mean being from April to June," he detailed.
Yesterday, the ECB announced it had decided to leave its key interest rates unchanged, with ECB President Christine Lagarde not specifying when the potential monetary policy loosening might commence.
Baha Breaking News (BBN) / AY
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In the medium term, boohoo is targeting a 6%-8% adjusted EBITDA margin. And analysts see the business returning to profitability in FY 2026 (which covers most of 2025).
Time to buy?
Currently, the stock is trading on a lowly price-to-sales multiple of 0.28. Therefore, if boohoo can return to double-digit growth and rebuild profitability, I think the share price could rise substantially.
This might justify risk-tolerant investors who are eyeing a big turnaround considering a small position. However, I’m too wary of competition from Shein, Temu and TikTok Shops to feel confident investing myself
*My take on his reasons for not buying are flimsy.
A few years ago, not many stocks were as hot as boohoo (LSE: BOO). The firm was riding a fast fashion wave due to its peppy brands like PrettyLittleThing. Revenue rose nearly 500% between 2016 and 2020 while net income more than tripled. boohoo went from a near-penny stock to a £5bn market cap.
Yet if I’d invested £5,000 back in 2020, my investment would be a measly £650 today.
How has this happened?
Competitive advantages
In a word — moat. Or more specifically, a lack of one.
A moat – or sustainable competitive advantage(s) — is probably one of the first concepts a new investor will encounter. And for good reason, as any company built to last will need at least one.
Here are three examples of competitive advantages that a firm can develop and leverage to strengthen its market position and sustain long-term success.
Cost Leadership: being able to produce goods or services at a lower cost than competitors, allowing for competitive pricing and higher profit margins.
Product Differentiation: offering unique or superior products that set the company apart and create brand loyalty.
Switching Costs: creating barriers that make it difficult for customers to switch to competitors.
Chinese competition
Unfortunately, it seems boohoo might be lacking in this department. After all, Chinese fast-fashion retailers Shein and Temu have been able to muscle in and grow rapidly.
These firms send the majority of their products direct to customers from low-cost factories in China. This keeps their offerings dirt cheap, making boohoo hesitant to raise prices itself.
Meanwhile, with bargain prices always just one click away, there doesn’t appear to be too much brand loyalty among boohoo’s customers (mainly young adults).
In the six months to 31 August, sales fell 17% year on year to £729m while active customers declined 12% to 17m. Full-year revenue is expected to drop 12%-17% and an annual loss is anticipated.
Louise Déglise-Favre, an industry analyst at GlobalData, said that boohoo’s “struggles are largely due to the meteoric rise of Shein, which…is more agile than boohoo and offers unbeatable low prices”.
Turnaround strategy
Despite all this, boohoo is eyeing a comeback. It has made its ‘Back to Growth’ strategy a central priority.
This focuses on building “a leaner, lighter, faster business model” across all its brands.
One area that I think could prove meaningful is its recent investments in warehouse automation. The firm says there has been a seven times increase in unit pick rate, leading to greater efficiency and savings in the first few months.
This should help cement an area where I think boohoo still has an edge. That is faster delivery and, presumably, better customer service due to closer proximity to UK and US shoppers.
In the medium term, boohoo is targeting a 6%-8% adjusted EBITDA margin. And analysts see the business returning to profitability in FY 2026 (wh
Major European stock indexes traded mixed in premarket on Friday as investors awaited fresh reports on German industrial production and producer prices. Additionally, the latest data on the European Union's gross domestic product and unemployment are expected to be released during the trading session. Traders also assessed yesterday's European Central Bank's decision to keep interest rates unchanged.
The DAX was flat at 8:00 am CET, while the FTSE 100 gained 0.14%. At the same time, the CAC 40 lost 0.07%, and the Euro Stoxx 50 added 0.11%.
The euro and the British pound were both flat against the dollar at 7:58 am CET, selling for $1. 09483 and $1.28098, respectively.
Baha Breaking News (BBN) / JJ
Happy Friday y’al
Enjoy your weekend
Major European stock indexes traded mixed in premarket on Friday as investors awaited fresh reports on German industrial production and producer prices. Additionally, the latest data on the European Union's gross domestic product and unemployment are expected to be released during the trading session. Traders also assessed yesterday's European Central Bank's decision to keep interest rates unchanged.
The DAX was flat at 8:00 am CET, while the FTSE 100 gained 0.14%. At the same time, the CAC 40 lost 0.07%, and the Euro Stoxx 50 added 0.11%.
The euro and the British pound were both flat against the dollar at 7:58 am CET, selling for $1. 09483 and $1.28098, respectively.
Baha Breaking News (BBN) / JJ
Happy Friday y’al
Enjoy your weekend
Gold currently $2161.33
Stock markets in Europe were flat to lower in Thursday's premarket trade in anticipation of the European Central Bank's policy meeting, during which officials are expected to hold their interest rates steady for the fourth consecutive time.
Meanwhile, investors also braced for the data releases on factory orders in Germany, the Swiss unemployment rate, and British housing prices.
Frankfurt's DAX and the Euro Stoxx 50 were flat. The CAC 40 dipped 0.12%. London's FTSE 100 fell 0.40%. The euro and the pound sterling were flat against the dollar, changing hands to 1.08996 and 1.27372 respectively at 7:57 am CET.
Baha Breaking News (BBN) / AB
Stock markets in Europe were flat to lower in Thursday's premarket trade in anticipation of the European Central Bank's policy meeting, during which officials are expected to hold their interest rates steady for the fourth consecutive time.
Meanwhile, investors also braced for the data releases on factory orders in Germany, the Swiss unemployment rate, and British housing prices.
Frankfurt's DAX and the Euro Stoxx 50 were flat. The CAC 40 dipped 0.12%. London's FTSE 100 fell 0.40%. The euro and the pound sterling were flat against the dollar, changing hands to 1.08996 and 1.27372 respectively at 7:57 am CET.
Baha Breaking News (BBN) / AB
Gold currently $2155.61
Chancellor says Office of Budget Responsibility forecasts inflation will fall below its target rate soon as it modestly upgrades its economic growth forecast from six months ago.
The Office for Budget Responsibility (OBR) has only slightly upped its forecast for the UK economy this year but delivered better news on inflation.
In line with the Bank of England’s latest forecasts, the OBR expects inflation to be below the central bank 2% target ‘in just a few months’ time’, said chancellor Jeremy Hunt.
Following news that Britain had entered a recession coming into this year, the UK’s fiscal watchdog now expects gross domestic product to rise by 0.8% in 2024, Hunt said, slightly up on the 0.7% forecast six months ago in the Autumn Statement.
Last month the Office for National Statistics estimated that GDP had dropped by 0.3% in the final quarter of the year, following a 0.1% fall in the previous quarter. That meets the most commonly accepted definition of a recession: two successive quarters of economic contraction.
While the OBR sees little reason for more positivity on this year, forecasts for later years were upgraded more clearly. The body now sees 1.9% growth in 2025, before 2.2% in 2026, 1.8% in 2027 and 1.7% in 2028.
The medium-term figures represent an improvement from the medium-term predictions six months ago of 1.4% in 2025 and 1.9% in 2026.
The chancellor placed more emphasis on the lower path for UK borrowing, noting that the OBR had reported that headline debt was ‘falling in every year’ of its forecast to 94% as a proportion of GDP in 2029.
$2127.69 🤭
Major European stock exchanges traded mostly with gains in the premarket on Wednesday as the attention turned to the United Kingdom and British Chancellor of the Exchequer Jeremy Hunt, with investors awaiting the spring budget announcement. Meanwhile, later this week, the European Central Bank will be revealing its interest rate decision.
The DAX was flat at 8:00 am CET. At the same time, the Euro Stoxx 50 added 0.08%, the CAC 40 increased 0.10%, and the FTSE 100 rose 0.25%.
At 7:59 am CET, both the euro and the pound were flat against the dollar, exchanging hands for 1.08599 and 1.27046, respectively.
Baha Breaking News (BBN) / AY
Happy hump y’al
Major European stock exchanges traded mostly with gains in the premarket on Wednesday as the attention turned to the United Kingdom and British Chancellor of the Exchequer Jeremy Hunt, with investors awaiting the spring budget announcement. Meanwhile, later this week, the European Central Bank will be revealing its interest rate decision.
The DAX was flat at 8:00 am CET. At the same time, the Euro Stoxx 50 added 0.08%, the CAC 40 increased 0.10%, and the FTSE 100 rose 0.25%.
At 7:59 am CET, both the euro and the pound were flat against the dollar, exchanging hands for 1.08599 and 1.27046, respectively.
Baha Breaking News (BBN) / AY
Gold currently $2127.69
Happy hump y’al
European stock exchanges were mostly lower during the premarket trade on Tuesday in anticipation of key data releases slated for publication in the coming hours which will include the euro area's producer inflation and an insight into the region's services sector activity, as well as separate reports on German and British industry.
Bayer AG also shared its closing quarter earnings for its fiscal 2023, noting that it saw €11.9 billion in revenue.
The DAX declined 0.12%. The CAC 40 was flat. The FTSE 100 was down by 0.45%. The Euro Stoxx fell 0.23%. The euro slipped 0.06% against the dollar, selling at 1.08486 at 8:02 am CET. The pound sterling slid 0.07% compared to the greenback, changing hands to 1.26806.
Baha Breaking News (BBN) / AB
European stock exchanges were mostly lower during the premarket trade on Tuesday in anticipation of key data releases slated for publication in the coming hours which will include the euro area's producer inflation and an insight into the region's services sector activity, as well as separate reports on German and British industry.
Bayer AG also shared its closing quarter earnings for its fiscal 2023, noting that it saw €11.9 billion in revenue.
The DAX declined 0.12%. The CAC 40 was flat. The FTSE 100 was down by 0.45%. The Euro Stoxx fell 0.23%. The euro slipped 0.06% against the dollar, selling at 1.08486 at 8:02 am CET. The pound sterling slid 0.07% compared to the greenback, changing hands to 1.26806.
Baha Breaking News (BBN) / AB
Gold currently $2115.56
Vol. Sold 1,428,195 Sold Value £1.35m
Vol. Bought 2,441,507 Bought Value £2.32m
Good point Mr.Bond an upgrade from Liberum is way more valuable than any fluctuation in the gold price.
The prices of precious metals rose on Monday after the release of weaker-than-expected economic data in the United States last week, leaving the commodities again as a safe haven for investors.
According to the country's Institute for Supply Management (ISM), US manufacturing activity declined for the 16th month in a row in February. Additionally, the consumer confidence survey conducted by the University of Michigan indicated a decrease in optimism during the same period.
Gold advanced by 1.54% at 11:17 am ET to sell for $2,115.47 per ounce. At the same time, silver increased by 2.50%, going for $23.75 per ounce. Platinum went up by 1.54% at the same time to go for $900.91 per ounce. One minute later, palladium gained 0.31%, selling for $945.70 per ounce.
Baha Breaking News (BBN) / RR
Gold currently + 1.40% $2113.25
Major European stock indexes traded mostly lower in the premarket session on Monday as investors awaited the new reports on Swiss inflation and the Eurozone investor confidence to be published during the day. Additionally, German companies Bayer AG and Lufthansa Group are expected to release their quarterly financial results later in the week.
The DAX traded 0.07% lower at 8:00 am CET, while the FTSE 100 lost 0.09%. At the same time, the CAC 40 fell 0.11%, and the Euro Stoxx 50 gained 0.17%.
The euro added 0.09% against the dollar at 7:58 am CET, to sell for $1.08475. The British pound was up 0.08% compared to the US currency, changing hands at $1.26663 simultaneously.
Baha Breaking News (BBN) / JJ
Happy Monday y’al
Major European stock indexes traded mostly lower in the premarket session on Monday as investors awaited the new reports on Swiss inflation and the Eurozone investor confidence to be published during the day. Additionally, German companies Bayer AG and Lufthansa Group are expected to release their quarterly financial results later in the week.
The DAX traded 0.07% lower at 8:00 am CET, while the FTSE 100 lost 0.09%. At the same time, the CAC 40 fell 0.11%, and the Euro Stoxx 50 gained 0.17%.
The euro added 0.09% against the dollar at 7:58 am CET, to sell for $1.08475. The British pound was up 0.08% compared to the US currency, changing hands at $1.26663 simultaneously.
Baha Breaking News (BBN) / JJ
Happy Monday y’al
Gold currently $2084.86
Gold +1.29% $2070.03