Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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October 7, 2022

‘Spoons will see it through

Overnight & Macro

A quieter end to the week. US equity markets were lower, the $US firmed up a bit, and the £ fell back modestly.

Gold and other commodities were subdued.

Oil prices were similarly quiet. However, this week’s OPEC+ production cuts caused Washington to consider extending its Strategic Petroleum Reserve release and suggested they might impose an export ban on oil and oil-related products. Crude prices seem now to have found a bottom and established a range of $80 to $100.

Investors continue to ponder how deteriorating economic data may change the outlook for US rate rises.

UK Companies

JD Wetherspoon announced solid full-year results. As always with Tim Martin, you also get a clear view (his view) of the day’s issues and how they affect the hospitality industry. His main targets remain ineffective UK lockdown policies and unequal tax treatment of on-sale and off-sale alcohol. For a company he founded 39 years ago from one pub in Muswell Hill, ‘Spoons is firmly established as the pre-eminent lowest-cost operator in a very challenged sector. They will survive this consumer downturn if anyone does.

Paving slab, block and tile manufacturer Marshalls, issued a negative update regarding the outlook for its landscape products division, reversing recent resilience seen by other building supply companies and indicating a deteriorating outlook for property repair, maintenance and improvement (RMI) spending.

Wincanton produced a solid trading update. Wincanton is a UK-focused transport and logistics contractor. It is growing in all areas. But particularly by focusing on areas like e-commerce fulfilment, including the tricky problem of managing returns, Wincanton is finding new growth areas. While end demand might be weak, companies continue to invest in optimising their supply chains.


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Any prices quoted in our research are as at the previous day’s close.