Among today’s news you see:
- Marks & Spencer (LON:MKS) missed with 1.7% LFL sales, when 2% was expected. This figure was propped up by food up 5%, while all other inc. clothing was flat.
- J D Wetherspoon (LON:JDW) , reported in line, expecting continued difficult environment ahead, and input price costs rising 4 – 7%.
- Speedy Hire (LON:SDY) – sales only up 0.4% in quarter to June. But hire rates are up 8.8% (from 7.8%) and volumes down 5.8%.
China growth of 9.5% was cheered, but Ireland rating cut was not. Sales volume is falling or flat while prices are rising. This is horrible for retailers, but OK for primary producers – food, cotton, iron, copper etc.
Probably also difficult for Europe and US commercial landlords.
So I like inflation protected assets – eg equities backed by commodities, and I don’t like retail that sells into Europe & US mainly and is not premium desirable product.