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1343 GMT – M&Co’s appointment of administrators amid a difficult trading environment is a sign that more apparel companies may report problems ahead, Shore Capital analysts Clive Blake and Eleonora Dani said in a note. They say the decision comes after the collapse of Joules a few weeks ago, where inflation remains high and cold weather will impact energy bills in December. “Given the squeeze on British household incomes, we wouldn’t be surprised to see more stories of hardship in the coming weeks and months,” he added. Looking ahead, the second half of 2023 is likely to see some relief in the consumer climate, analysts say. (michael.susin@wsj.com)
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Currys 1H investor buzz is likely to be more than sales growth
1521 GMT – With Currys set to report 1H results on Thursday, investors are likely to prioritize their focus on like-for-like sales trends for the period, AJ Bell investment director Russ Mold and analyst Danny Hewson said in a note. The electrical retailer may be well-known in the UK but it represents just 54% of group sales, while 41% comes from the Nordic region and 5% from Greece, they note. Investors will also focus on the group’s balance sheet as its earlier operating margins were squeezed, he said. Regarding shareholder returns, market expectations predict an unchanged total dividend payout of 3.15 pence for fiscal 2023, he says. (michael.susin@wsj.com)
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European Media Stocks Defensive Edge Merit at a Glance
1531 GMT – European media stocks with solid fundamentals deserve investor attention amid likely tougher economic conditions in 2023, says JP Morgan. JPM expects a slowdown in the eurozone and the UK early next year and a US recession later in the year, the US investment bank says. Higher interest rates hit multiples in 2022 and the resulting slowdown looks set to hit earnings in 2023, JPM says. “Our strategists suggest that the recent rebound in cyclicals may be premature and has a defensive bias. Our top picks are quality names with compelling equity stories regardless of the macro environment,” JPM analyst Daniel Kerven said in a note, adding that the bank Favors RELX. , Pearson and U.M.G. (philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswire;
(END) Dow Jones Newswire
December 12, 2022 12:52 ET (17:52 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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