BUSINESS LIVE: Consumer confidence increases; BHP faces multi-billion pound lawsuit; Superdry losses are increasing

He’s the East End boy who became one of Britain’s richest men in a rags-to-riches story that included the takeover of Tottenham Hotspur, a beauty queen girlfriend less than half his age and a sprawling business empire .

But Joe Lewis’ downfall was complete when he pleaded guilty to insider trading in a federal courthouse in Manhattan on Wednesday.

Investments in Vodafone by the United Arab Emirates pose a security risk, the government has said.

Deputy Prime Minister Oliver Dowden said the nearly 15 percent stake held by state-controlled Emirates Telecommunications poses a threat to Britain, given Vodafone’s work with government departments and its influence over the British telecoms industry.

John Coldham, co-head of retail sector (UK) at Gowling WLG:

‘While the retail sector continues to face ongoing challenges with households curtailing spending and overhead costs rising, WH Smith’s dominance of train stations and airports remains unabated, with a lack of competition.

‘The retailer’s high street stores may not be booming like many others in the sector, but the success of its travel division has led to the company also opening franchises in hospitals across the UK to boost its growth.

‘This is a smart move because like the shops at travel hubs it will offer guaranteed footfall, a necessity for patients and visitors alike, with few other shopping options to choose from.

‘Internationally the company continues to perform well and shareholders will be pleased to see this progress, especially as profits are reinvested and Britain is used as an example to other regions.’

WH Smith’s revenue rose 8 percent year-on-year in the 20 weeks to January 20, thanks to resilient travel demand.

The increase in footfall at train stations and airports has created vibrant sales, with Travel UK, the company’s largest division, recording a 15 percent increase in sales for the period.

“The Group is doing well and is in its strongest position ever as a global travel retailer. We are confident of another year of significant growth in 2024.”

Fashion house LVMH celebrated an increase in Christmas turnover.

The bumper festive quarter helped the group cash in on record sales and profits for 2023, but there were worrying signs that demand for luxury goods was faltering.

Superdry’s finance boss Shaun Wills will resign at the end of March after the struggling fashion retailer reported a wider half-year loss.

The group blamed unusual weather and the cost of living crisis for an adjusted pre-tax loss of £25.3 million for the six months to October 28, compared with a loss of £13.6 million last year.

Superdry has appointed Giles David as interim CFO, effective January 29.

Julian Dunkerton, Founder and CEO, said:

‘This has clearly been a difficult period for Superdry. A challenging consumer market, against a backdrop of macroeconomic uncertainty and some notable unusual weather events, have all resulted in the Group’s financial performance weakening.

“These macro and external factors have been exacerbated by the underperformance of our wholesale segment. While this was expected to some extent following the decision to exit our US operations and the sale of brand rights in non-core territories, the segment continues to prove challenging.”

The Brazilian arm of the BHP Group will appeal a decision by the Federal Court of Brazil regarding a Federal Public Prosecutor’s Office claim of 155 billion Brazilian real (£24.8 billion) over the collapse of the Samarco-owned Fundao Dam , revised in 2015.

The group told investors this morning:

‘BHP Brasil has not yet accepted a decision from the court and will review the decision to assess its implications, the possibility of appeal and any impact on the Group’s supply in relation to the Samarco Dam failure.

‘BHP Brasil is fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil through the Fundação Renova, a non-profit, private foundation established after the Fundão tailings dam failed to complete 42 remediation and compensation programs to be implemented in Brazil. ‘

Christine Lagarde, head of the European Central Bank (ECB), yesterday insisted that talks on interest rate cuts were “premature”, even as storm clouds gathered over Germany, the largest economy.

The ECB left interest rates unchanged at 4 percent and did little to substantiate the expectation that it will cut rates five times this year.

UK consumer confidence has risen to its highest level since January 2022, increasing optimism about the UK economic outlook over the next 12 months, according to the closely watched GfK Consumer Confidence Index.

Linda Ellett, the UK head of consumer, retail and leisure markets at KPMG, said: ‘Although inflation and interest rates are gradually falling, prices are still rising and consumers are still seeing costs rise.

‘Many people are still faced with the prospect of big jumps in their mortgage when their permanent contract expires this year. And even more companies are faced with higher costs, for example for the renewal of insurance premiums or contractual increases for mobile and broadband services.

‘Household purchasing power continues to be gradually eroded and in this environment it is little surprise to see little appetite for spending dwindling savings on major purchases, except perhaps – for those who can afford it – to temporarily to take a break. on holiday.

‘Research by KPMG shows that the number of households that feel worse about their financial security is almost two to one greater than the number of households that feel more secure.’