This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7178572.stm
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Retailers suffer after M&S slump | Retailers suffer after M&S slump |
| (about 2 hours later) | |
| Shares in UK retailers have slumped after Marks & Spencer revealed poor Christmas sales, causing fears of a wider economic contraction. | Shares in UK retailers have slumped after Marks & Spencer revealed poor Christmas sales, causing fears of a wider economic contraction. |
| M&S saw its worst quarterly results in more than two years, sending shares 18% lower in early afternoon trade. Sainsbury's fell 6% and Next shed 5%. | M&S saw its worst quarterly results in more than two years, sending shares 18% lower in early afternoon trade. Sainsbury's fell 6% and Next shed 5%. |
| Separate figures showed consumer confidence fell for the third straight month in December, said Nationwide. | Separate figures showed consumer confidence fell for the third straight month in December, said Nationwide. |
| Consumers have cut spending to counter higher energy and mortgage costs. | Consumers have cut spending to counter higher energy and mortgage costs. |
| "We are seeing another sell-off today, triggered by ... the slowdown in the economy, Marks & Spencer results," said David Buik of Cantor Index. | "We are seeing another sell-off today, triggered by ... the slowdown in the economy, Marks & Spencer results," said David Buik of Cantor Index. |
| Consumer slowdown | Consumer slowdown |
| The survey from mortgage provider Nationwide showed consumer confidence reached its lowest level in 10 months. | The survey from mortgage provider Nationwide showed consumer confidence reached its lowest level in 10 months. |
| On Tuesday figures from the British Retail Consortium (BRC) said retailers saw their worst Christmas in three years. | On Tuesday figures from the British Retail Consortium (BRC) said retailers saw their worst Christmas in three years. |
| There's no doubt consumers were feeling the pinch in the run up to Christmas Andy Bond,Asda chief executive Share prices of UK retailers | |
| The results from M&S come after other firms have seen poor Christmas sales including PC World Owner DSG International, while Land of Lather issued a profit warning. | The results from M&S come after other firms have seen poor Christmas sales including PC World Owner DSG International, while Land of Lather issued a profit warning. |
| Last week clothing firm Next said it did not expect store sales to grow in 2008, adding that it was "extremely cautious" regarding its outlook for 2008. | Last week clothing firm Next said it did not expect store sales to grow in 2008, adding that it was "extremely cautious" regarding its outlook for 2008. |
| Already on Tuesday Sainsbury's saw its shares fall 8% spurred by worries that its Christmas trading sales figures - to be issued this week - would be poor. | Already on Tuesday Sainsbury's saw its shares fall 8% spurred by worries that its Christmas trading sales figures - to be issued this week - would be poor. |
| The figures suggest the consumer spending boom, which has helped keep the UK afloat, may be coming to an end. | The figures suggest the consumer spending boom, which has helped keep the UK afloat, may be coming to an end. |
| Interest rate decision | Interest rate decision |
| The gloomy news from the High Street will increase pressure on the Bank of England to cut interest rates when it meets on Thursday. | The gloomy news from the High Street will increase pressure on the Bank of England to cut interest rates when it meets on Thursday. |
| The Bank cut rates by 0.25% in December, and Bank governor Mervyn King has said he will take action to ensure the UK does not fall into recession. | The Bank cut rates by 0.25% in December, and Bank governor Mervyn King has said he will take action to ensure the UK does not fall into recession. |
| But the Bank is also concerned about growing inflationary pressures fuelled by higher energy costs, which might translate into pressure for higher pay rises. | But the Bank is also concerned about growing inflationary pressures fuelled by higher energy costs, which might translate into pressure for higher pay rises. |
| "Given the way things are going, why should the Bank of England's Monetary Policy Committee wait?," said Mike Lenhoff, chief strategist with Brewin Dolphin, adding that it takes a long time for interest rate changes to have an impact. | "Given the way things are going, why should the Bank of England's Monetary Policy Committee wait?," said Mike Lenhoff, chief strategist with Brewin Dolphin, adding that it takes a long time for interest rate changes to have an impact. |
| But despite signs of a slowdown, some retailers remained upbeat. | But despite signs of a slowdown, some retailers remained upbeat. |
| "There's no doubt consumers were feeling the pinch in the run up to Christmas," said Asda chief executive Andy Bond. | "There's no doubt consumers were feeling the pinch in the run up to Christmas," said Asda chief executive Andy Bond. |
| But he added: "We served a million more customers in the week before Christmas compared with the previous year." | But he added: "We served a million more customers in the week before Christmas compared with the previous year." |
| This made it the firm's best Christmas to date, and trading in the New Year had started well, he added. | This made it the firm's best Christmas to date, and trading in the New Year had started well, he added. |