Friday, 25 November 2011

Retailers fall on "cheap chic" H & m woes of the

Anne Critchlow, an analyst with Societe Generale, said the company, and industry "cheap chic" in General, cannot continue to absorb the costs without waking up prices. "The problem of rising raw material prices do disappear not within six next or 12 months,"she said.""

Next, who took the decision to increase its prices to account for the rising costs of cotton, was the largest faller in the FTSE 100, closure of 57 to 566 p.

Primark-owner associated british foods, which warned last week that cotton prices to increase its margins fell 12 percent to £ 10.87. Marks & Spencer fell 5.3 percent 360.7.

Tom Gadsby, matrix Analyst Group, has warned that the cheap chic fashion industry was left in a catch 22 situation. "Put up prices to try to find a gross margin and the risk of the company alienating clients who is accustomed to low price points." "Keep where they are and margins will continue to be depressed", he said.

European consumer confidence poll showed UK shoppers confidence plunged this month, and has a CBI retail sales figures also show a decrease in sales growth after a peak in the run-up to Christmas.

Despite the sadness of the retail, FTSE 100 disappointing U.S. employment figures and fresh fears on State of the Japanese economy closed just 4.13 points to 5,965.08, supported by strong gains in insurance and financial stocks.

Insurers took the top four spots in the index after late surge, as speculation mounted that they can escape the expensive capital requirements for banks.

"We strongly support that insurers are not the same as the banks," Andrew Moss, CEO, Aviva, up 17.6 to 242 p, told Reuters in Davos. "It's just that capital should be tested against actual economic risks in the business." We are supportive of who and what Solvency II is based on. But anything and that... would be illogical.

Among the old mutual on 1 p 5.7 insurers, Legal & General 3.3 112.8 percent, Prudential 20.5-704 p and Standard life ended the day higher 234,3 p 6.3.

Man Group, more important coverage of the World Fund in 292 p 8.2 Manager after announcing plans to sell structured products linked to GLG partners, assets in excess of $1 Manager it bought in October.

Man was also stimulated by an optimistic note of Nomura, who notes: the stock a "buy" with a target price of 380 p. The Japanese Investment Bank said that it has been upgraded from his point of view of the financial sector of "neutral" specialty "optimist" on the back of "positive financing potentials to improve volumes and upgrades". "."

BSkyB shares were also asks after the pay-TV company reported a 26pc profits jump 467 million pre-tax in £, 15pc sales to. £ 3 18bn. Actions added 5 to 762.5 p, valuing the company more than 5.3 £ 13.

Figures better than expected by analysts to raise their expectations for the amount that News Corporation shall provide control 60 9pc of heaven, it has not already. BSkyB Council rejected News Corp initial 700 p-a-part proposed offer this summer, but indicated that they would accept a submission to over 800 percent.

Lorna Tilbian from Numis, analyst said: "we continue to expect the agreement close to 800 p 850 p price range and see an increased risk that this could be rather than Q3 Q2".

Elsewhere in the sector, Inmarsat, SATCOM, 14 company rose p 665.5 strong earnings Wednesday, after S & P Equity Research raised its rating on the company to "hold" to "buy". It comes after LightSquared, a high-speed satellite U.S. start-up WINS regulatory approval to build a nationwide telephone US mobile service, which will include using a portion of the spectrum of the Inmarsat.

Heritage oil, which lead the slaughterers midcap Wednesday has done an about-face to Don 20.3 to 330,4 p Top FTSE 250 after that brokers, said 29pc Wednesday, falling on the news, company hit the gas instead of oil, has been done.

"A 30pc share price decline looks like a huge over-reaction," said Richard Griffith, the evolution of securities analyst.

However, other analysts were very skeptical about the prospects for extraction of gas of Kurdistan society, with Arthbothnot analyst change its "strong buy" rating to "sell".

At the other end of the table, Betfair lost to 67.5 at 918 p on ongoing concerns about its Italian operations. Exchange more bet in the world, whose shares were among the losers for the last three days, seems to have lost its challenge against Italian regulators pulled the plug on the Exchange.

We remain skeptical society will achieve growth, especially if the Italy is disabled, "analyst at Daniel Stewart has said in a note.


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