MARKET REPORT: Warm weather puts the wind up fashion retailers

Some of Britain’s best-known retailers have gone out of fashion in the City amid concerns about declining demand and warmer weather affecting the upcoming autumn and winter clothing seasons.

Shares in Next fell 4.4 per cent, or 314 pence, to 6,900 pence, and Primark owner AB Foods sank 1.7 per cent, or 34 pence, to 1,950.5 pence after the pair was added to JP Morgan’s “negative catalyst watch.”

The US investment bank said unseasonably warm weather – September temperatures around the world are the highest ever recorded – has hit clothing retailers as they launch their fall and winter product lines.

JP Morgan also expressed concern that the benefits of pent-up demand in European retail “could begin to wane, and that deflation in clothing prices could also impact revenue forecasts through 2024.”

The gloomy outlook spread across the industry as Marks & Spencer lost 4.1 per cent, or 9.4 pence, to 221 pence and JD Sports fell 3.1 per cent, or 4.4 pence, to 138.75 pennies.

The City also showed little enthusiasm for luxury carmaker Aston Martin, with JP Morgan cutting its price target to 379p from 425p. The shares fell 3.3 per cent, or 8.2 pence, to 241.4 pence.

But there was good news for Compass Group, the world’s largest catering company, after Jefferies upgraded its rating from “hold” to “buy” and raised the price target to 2,575p from 2,000p. The shares added 1.4 per cent, or 28 pence, to 2,044 pence.

The FTSE 100 fell 0.03 per cent, or 2.37 points, to 7,492.21 and the FTSE 250 fell 0.9 per cent, or 160.26 points, to 17,572.06.

It was a rollercoaster session for the London stock market as investors came to terms with the attack on Israel over the weekend.

Volex became the latest company to report a cyberattack.

The company, which makes power cables and charging plugs for electric cars, said hackers gained “unauthorized access to certain IT systems and data” at some of its international sites.

He added that the issue was unlikely to be too costly as there was minimal disruption to global production levels.

Stock Watch – Cold Brands

Chill Brands has secured a major deal to sell its nicotine-free vapor products in 150 WH Smith stores, including those at Heathrow, Gatwick and Kings Cross station.

Boss Callum Sommerton said the deal provides “exposure to hundreds of thousands of potential customers every day”.

Chill Brands added that it has secured more than £350,000 in orders from UK retailers since launching its vaporizer in August.

The shares rose 8.9 per cent, or 0.45p, to 5.5p.

Volex, which is chaired by financier Nat Rothschild, joined the likes of engineer Vesuvius (down 1.5 per cent, or 6.2 pence, to 400.8 pence), manufacturer Morgan Advanced Materials (down 2 .7 per cent, or 6.5 pence, up to 235 pence) and the subcontractor. per capita (down 0.24 per cent, or 0.04 pence, to 16.84 pence) in suffering cyber attacks this year.

Volex shares fell 7.3 per cent, or 22.5 pence, to 288 pence.

The private equity firm bidding to buy DX Group has been given more time to conduct checks on the delivery company before deciding whether to make a bid.

HIG European Capital Partners last month submitted a “conditional, non-binding proposal” worth 48.5 shares annually, or just under £300m. Under takeover rules, it had until yesterday to formally announce whether it wanted to submit a bid or withdraw.

The deadline was extended until the close of play on November 6. The shares rose 0.6 per cent, or 0.25p, to 42.5p.

One deal that crossed the line was the sale of Citigroup’s consumer goods portfolio in China to HSBC.

The deal covers around £2.95 billion in assets and deposits from wealthy clients in 11 major cities.

HSBC shares fell 1.5 per cent, or 9.7 pence, to 645 pence. Citigroup rose 0.5 per cent, or 0.19 pence, to 40.14 pence.

Assura, a primary care property investor and developer, raised £1.5m through 152 rental reviews in the six months to the end of September.

And the company refinanced its loan (or revolving line of credit) increasing it from £125 million to £200 million.

But he also warned of continued delays to pipeline projects as he negotiates rents to reflect higher construction costs. The shares fell 0.2 per cent, or 0.1p, to 42p.