MARKET REPORT: Warm weather puts the wind up fashion retailers

Some of Britain’s best-known retailers have gone out of fashion along with city authorities amid fears of falling demand and warmer weather affecting the upcoming autumn and winter clothing seasons.

Shares in Next fell 4.4%, or 314p, to 6,900p and Primark owner AB Foods sank 1.7%, or 34p, to 1,950.5p after the pair was added to JP Morgan’s “negative catalyst “.

The U.S. investment bank said the unseasonably warm weather — with the highest September temperatures globally — affected clothing retailers as they rolled out their fall and winter product lines.

JP Morgan also noted concerns that the benefits of pent-up demand in European retail “may begin to wane and that clothing price deflation may also weigh on peak price forecasts until 2024.”

The gloomy outlook swept through the industry as Marks & Spencer lost 4.1%, or 9.4p, to 221p and JD Sports fell 3.1%, or 4.4p, to 138.75p.

Retail rattled: Next shares fall 4.4%, Primark owner AB Foods sinks 1.7% after pair added to JP Morgan’s ‘negative catalyst’

The City also had little enthusiasm for luxury car maker Aston Martin as JP Morgan cut its price target to 379p from 425p. Shares reversed 3.3%, or 8.2p, to 241.4p.

But there was good news for Compass Group, the world’s biggest catering company, after Jefferies raised its rating to ‘buy’ from ‘hold’ and raised its price target to 2,575p from 2,000p. Shares added 1.4%, or 28p, to 2,044p.

The FTSE 100 was down 0.03%, or 2.37 points, at 7,492.21, and the FTSE 250 was down 0.9%, or 160.26 points, at 17,572.06.

It was a session for the London stock market as investors came to terms with the attack on Israel over the weekend.

Volex has become the latest company to report a cyber attack.

The company, which makes power cables and plugs for charging electric cars, said hackers gained “unauthorized access to certain IT systems and data” at some of its international sites.

He added that the problem is unlikely to be too costly as there is minimal disruption to global production levels.

Stock Watch – Chill Brands

Chill Brands has landed a major deal to sell its nicotine-free vapor products in 150 WH Smith stores – including Heathrow, Gatwick and Kings Cross stations.

Boss Callum Somerton said the deal provides “exposure to hundreds of thousands of potential customers every day”.

Chill Brands added that it has secured more than £350,000 worth of orders from UK retailers since launching its vape in August.

Shares jumped 8.9%, or 0.45p, to 5.5p.

Volex, which is chaired by financier Nat Rothschild, joined the likes of engineer Vesuvius (down 1.5%, or 6.2p, to 400.8p), manufacturer Morgan Advanced Materials (down 2.7%, or 6 .5p, to 235p) and outsourcing Head (down 0.24 per cent, or 0.04 points to 16.84 points) in suffering from cyber attacks this year.

Shares in Volex fell 7.3%, or 22.5p, to 288p.

The private equity firm bidding to buy DX Group has been given more time to carry out checks on the shipping company before deciding whether to make a bid.

HIG European Capital Partners submitted a “non-binding and conditional offer” worth 48.5pa shares, or just under £300m, last month. Under takeover rules, it had until yesterday to formally announce whether it wanted to make a bid or withdraw.

The deadline was extended until the end of the game on November 6. Shares rose 0.6%, or 0.25p, to 42.5p.

One deal that did go through was the sale of Citigroup’s consumer wealth portfolio in China to HSBC.

The settlement covers assets and deposits worth around £2.95 billion from wealthy clients in 11 major cities.

Shares in HSBC fell 1.5 percent, or 9.7p, to 645p. Citigroup rose 0.5%, or 0.19 points, to 40.14.

Assura, a primary care investor and developer, secured £1.5m through 152 rent reviews in the six months to the end of September.

And the company refinanced its loan – or revolving credit facility – increasing it from £125m to £200m.

But it also warned of continued delays on pipeline schemes as it negotiates rents to reflect higher construction costs. Shares fell 0.2%, or 0.1p, to 42p.