Oil price continues to rise, retailers make plea to chancellor on business rates and TGI Fridays to lose jobs and branches despite rescue deal

“As US investors wait for earnings season to shift into gear it’s impossible not to focus on the rising tensions in the Middle East,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“The price of Brent Crude is now flirting with $80 a barrel which, whilst still relatively low compared to prices seen earlier this year, is an indication that markets are concerned about how the conflict may escalate.

“The dollar has also strengthened, stemming the gold rally that was a response to investors’ rush to safe haven assets and Friday’s US jobs data. The figures out just before the weekend suggested the Fed might not need to go as far or as fast with rates as had previously been priced in.

“Home to big oil companies Shell and BP, London’s FTSE 100 managed to eke out meagre growth, though the FTSE 250 didn’t achieve quite the same trajectory despite being kept afloat by continued excitement about a bolstered Chinese consumer outlook.

“The consumer is on the minds of retailers and hospitality companies alike, with the former already pushing the bargain button in a bid to grab those first Christmas pounds. It’s a sign of the sector’s fragility that deals are already being pelted at us on our socials.

“The last golden quarter was tarnished by an inflation weary consumer and though we have seen real wage growth there will be concern that people would rather put a bit of cash in their rainy-day fund rather than splash out.

“With the Budget hurtling towards us it was no surprise to find retailers including Ikea and Tesco lobbying the chancellor for a quick cut to business rates rather than waiting for the promised reform of the system which could take too long to prevent further high street holes appearing.”

TGI Fridays

“One name that won’t be vanishing from our towns and cities, at least entirely, is TGI Fridays. It’s a brand wrapped in nostalgia but one the new owners are hyper aware needs to modernise to appeal to today’s diner.

“Juicy burgers, sticky ribs and fried accompaniments are a guilty pleasure for many of us, but today’s more health-conscious customer has plenty of alternatives to choose from.

“Keeping the essence of what made the business successful whilst finding a new direction won’t be an easy task and the new owners have carved off 35 branches they don’t feel confident taking forward. The buyers, Breal Capital and Calveton UK, have a good track record in hospitality and with more than 2,000 jobs saved the brand has a chance to rediscover its mojo.”

These articles are for information purposes only and are not a personal recommendation or advice.