Next dazzles
Outlook upgraded
Retailer Next bucked the gloom enveloping much of the UK high street with a strong trading update which suggested better-than-expected full-year performance. Next has a reputation for careful management expectations, yet a 4.5 per cent overall growth in brand sales, helped by a strong internet performance, is not to be sniffed at in the current economic climate. Moreover, Next nudged full-year profit expectations up from £560m-£610m to £575m-£620m.
Lights out
Indian blackout
India's power crisis plumbed new depths this week with vast swathes of the world's second most populous country plunged into chaos, as huge power outages affected hundred of millions of people. On Tuesday, three power grids failed, one for the second consecutive day, leaving half of the country with no power. Delhi was one of the worst affected cities with much of its urban transport system knocked out and a lack of traffic lights leading to a gridlock on the roads. Ministers blamed states for drawing more than their quota from the national grid, but the problem merely highlights the paucity of India's current power generation capacity and the growing divide between supply and demand.
Loss of face
UBS sues Nasdaq
Swiss bank UBS is suing the US equities exchange Nasdaq for its 'gross mishandling' of the mega bucks float of social network Facebook. UBS was acting as a market maker in the float, but due to various technical hitches on the part of Nasdaq, estimates it lost SF130m (£85m). The technical problems led UBS to place orders several times over, leaving the bank holding more shares than it needed and suffering from the rapid fall in the value of Facebook's paper since May.
Growing gloom
UK data concern
The gloomy data emanating from the UK's economy shows little sign of abating. Following on from the recent poor GDP figures, the UK's manufacturing this week reported that July was its worst month for more than three years with demand for goods falling both at home and abroad. This followed on from news that UK consumer confidence remains at a low ebb, household income has fallen once more, mortgage lending continues to shrink and retail sales are anaemic.
Help at hand?
Data adds to concern
Economic data from various corners of the globe is cementing the notion that the global economy is entering a period of significant slowdown, something which is likely to prompt further policy action from central banks. The latest data showed that China's manufacturing sector output contracted again in July, following news of contraction in the economies of Singapore and Taiwan and poor data from Japan and Korea. Meanwhile, European unemployment has hit a euro-era high of 18m people or 11.2 per cent.
Own goal?
MUFC IPO
Manchester United followed up a £25m a year sponsorship announcement with Chevrolet by publishing details of its proposed initial public offering in New York. If the float achieves the mid-point of the $16-$20 price range, the club should raise $300m. But there is considerable anger that around $140m of this would go straight to the owners, the Glazer family, rather than to paying off the debt that they loaded onto the club during their leveraged buy-out in 2005. Furthermore, the new shareholders will have very few voting rights, with the Glazer family retaining their grip on decision-making at the club.
