Wednesday, 8 February: In the Bank of England’s monthly report on business conditions they’ve stated they see price rises spreading to more gods than just fuel and food, which we’ve already seen. This is hardly anything groundbreaking, with sterling at the level it is the cost of imports will slowly rise and at some point will be passed onto the consumer but as we stand the economy has been more than resilient to date. Inflation, it’s a-coming.
Netflix have alluded to plans that involve merchandise as a way of increasing revenues. The online media streaming service wants to license its own merchandise, which may include books, apparel, toys, collectibles etc. Being part of the Sons’ MC is no longer a pipe dream when you have the official badge. Archer tactleneck? Add 1 to cart thanks.
Jose Cuervo has announced official plans to go public, after putting the barkes on last year due to the election of Donald Trump. There still remains mass political uncertainty especially focused on Mexican companies however their recent performance continues to cement its place as the world’s number one tequila brand. The firm generates around 60% of sales in North America, and many believe the price inelasticity of tequila to be the saving grace if prices are hiked due to import tariffs.
London shares today traded relatively uneventfully, closing the day effectively flat. Miners anchoring the index on a fairly positive day’s trade, reflected by the FTSE 250 climbing 25 bps (typically miners have less sway on the 250). Elsewhere Europe across the board told a similar story and sterling was also relatively inactive.
After returning to profit in 2016, Rio Tinto, have announced a higher than expected dividend alongside a share buyback worth $500m. Shares closed the day down 1.67%.
Redrow, one of the UK’s largest house builders in terms of their output not that they make just huge homes, have reported a 35% rise in pre-tax profits after selling more homes at higher prices.