Top story
UK consumer confidence has remained unchanged in the second quarter of the year as strong earnings and jobs data failed to offset the uncertainty of a no-deal Brexit.
Consumer confidence in the three months to June remained a -8%, according to figures from the latest Deloitte Consumer Tracker.
However, confidence is down by four percentage points compared to the same period last year.
“Consumers’ finances are in good shape thanks to a long boom in jobs and strong wage growth. That said, uncertainties about Brexit and growth are weighing on consumer sentiment and their spending plans,” Ian Stewart, chief economist at Deloitte, said.
Sentiment towards disposable income and levels of debt declined by five and four percentage points respectively compared to the same period in 2018.
On a quarterly basis, income sentiment remained flat, but levels of debt sentiment fell three percentage points.
Meanwhile, confidence in job security dropped three points over 2018, “highlighting concerns about a possible weakening of the job market post-Brexit”, Deloitte explained.
Morning update
Casino Group has announced it has agreed a €219m sales of its Indian Ocean-based retailer Vindémia as its asset sales continue.
Founded in 1972 in Reunion Island and gradually acquired by Casino Group between 2001 and 2007, Vindémia today is the leading retailer in the Indian Ocean (Reunion Island, Madagascar, Mayotte, Mauritius) and is present across numerous formats (hypermarkets, supermarkets, cash and carry and proximity).
The retailer will be bought be GBH, a family group founded in 1960, which has focussed on industrial activities and later around automotive distribution and retail.
With this agreement, Vindémia’s activities will continue and develop within GBH’s Retail division.
The completion of this disposal will be achieved after consultation with employee representative bodies and subject to approval by the French Competition Authority.
In the agreement, GBH has committed to sell stores to a third party in anticipation of possible concerns from the competition authority.
On the markets this morning, the FTSE is up 0.1% to 7,517.5pts to start the week.
Early risers include McColl’s (MCLS), up 3% to 68.5p, Sainsbury’s (SBRY), up 2.1% to 210.2p, DS Smith (SMDS), up 1.8% to 363.7p and Marks & Spencer (MKS), up 1.4% to 209p.
Fallers include Greggs (GRG), down 0.8% to 2,447.2p, C&C Group (CCR), down 0.9% to €4.07 and British American Tobacco (BATS), down 0.9% to 3,065p.
This week in the City
It is a busy week ahead both home and abroad as we enter international half year earnings season before the summer break.
The week kicks off tomorrow with half year figures from fast growing FeverTree (FEVR), while McColl’s will post half year earnings and PZ Cussons will issue its full year results.
Wednesday brings first quarter sales from B&M European Value Retail (BME) as will PayPoint (PAY), while Britvic (BVIC) will release its third quarter sales figures along with Marstons (MARS).
On Thursday Unilever (ULVR) and will post its interim earnings, Diageo (DGE) will release its full year results and catering giant Compass Group (CPG) will post its third quarter sales figures.
Internationally, Kimberly Clark and Coca-Cola (KO) post their interim results tomorrow.
On a busy Thursday, Carrefour, Hershey, Danone (BN), Casino, AB InBev (ABI), Amazon and Starbucks all post interim results.
Nestle (NESN) will release its own half year results on Friday along with Colgate-Palmolive and McDonalds, while Starbucks will post its third quarter figures.
In economic news, Tuesday will bring the release of the monthly Kantar and Nielsen grocery market share figures, while wider newsflow will be dominated by the result of the Conservative Party leadership election the selection of a new UK Prime Minister on Wednesday.
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