British multinational food processing and retailing company
Markets are stabilising after a stretch of high activity in tech options, with traders shifting focus as implied volatility cools. Small caps are leading potential next moves, while global equities reflect a policy-led, carry-friendly regime.
Shein's Hong Kong listing is priced lower than hoped, valuing the company around $26.3 billion. Trading began shakily, with early losses narrowing as markets digest regulatory twists, tax changes, and weak consumer sentiment that have weighed on the fast-fashion group after a rapid ascent.
Associated British Foods has reported a forthcoming update on fourth-quarter trading, with Primark leading sales amid a volatile retail climate. Analysts expect a potential late-summer boost from price reductions on hundreds of clothing items, while ABF prepares to spin Primark off as a standalone FTSE 100 entity by 2027. The update also flags pressure from higher gas costs and a weaker sugar division.
The John Lewis Partnership has reported a pre-tax loss of £124m for the six months to August 1, widening from £88m the previous year, while Waitrose sales rise and department stores dip. The group cites a challenging trading environment, transformation costs, and higher national insurance as key factors, with caution on the second half ahead of peak Christmas trading.
Associated British Foods says Primark has acquired a Sheffield warehouse and will offer home delivery in Great Britain in the future, expanding beyond its established click-and-collect model. Primark sales are dipping year-on-year, with UK performance modestly positive while continental Europe weakens. A demerger plan to list Primark separately is targeted for end-2027.
The Office for National Statistics has reported a 0.5% month-on-month rise in August retail sales, defying forecasts of a dip. The gain follows a string of upbeat readings, driven by hot weather that boosted demand for fans, air conditioning, clothing and sports goods. Year-on-year, sales are up 2.4% for the three months to August, with online shopping and department stores among the strongest performers. Fuel sales remain weak amid higher energy costs.