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Markets Today: Is London returning to normal?

Catch up with our Markets Live blog for the latest news that affects your investments
April 13, 2021
  • Companies news: JD Sports and Revolution Bars announce results after restrictions ease for retail and hospitality
  • ONS: UK economy grew 0.4 per cent in February, but was still nearly 8 per cent smaller than this time last year 
  • England begins rollout of Moderna jab now all over 50s have been offered the the jab

Good morning and welcome to the IC’s daily blog - rounding up the biggest business news. There is an air of optimism in England this morning (and probably a few hangovers). Retailers have welcomed back customers, zoos are bustling with children enjoying the end of their Easter holiday, hair has been chopped and images of Brits battling the snow to enjoy their first lockdown pint have created a sense of great stoicism. 

But the FTSE 100 is still reaching for its long-awaited return to 7000 points after relatively subdued trading yesterday - perhaps investors were too busy enjoying the pub. 

And - not to put a dampener on the merriment - there are reasons for caution in some areas of the market. In her latest property column, Emma Powell has questioned the momentum in certain housing stocks - the reopening may have sparked positive movement for some of the UK’s least loved stocks, but some are not in a position to recover. 

The UK’s retailers continue to face challenges after the pandemic accelerated the shift in shopping habits. JD Sports (JD.: Hold, Mar 2021), which has revealed the extent of its investment in its global store estate in this morning's results, is also battling a change in the way its suppliers want to reach its customers - Nike, Adidas and Under Armour are increasingly looking to sell directly to the consumer. 

Meanwhile, Revolution Bars has highlighted the strain the pandemic has put on hospitality companies’ cash flows in this morning’s interim results. Operating cash flows flipped from a £15m inflow in the first half of 2020 to a £5.6m outflow in the six months to December 2020. And these numbers reflect just a few weeks of lockdowns, the four months of restrictions from January to yesterday are likely to have had an even bigger impact on the company’s balance sheet. 

But management has said that the company will emerge stronger. Judging by the number of people who raced back to bars, pubs and restaurants yesterday, we are also optimistic that the hospitality companies which have survived the pandemic are well placed to thrive in the coming months. 

Read our take on all this morning's top stories in our blog below.