BUSINESS LIVE: CMA warns on Three-Vodafone merger; Spoon’s costs ease; Retail sales stagnate

Global stock markets soared yesterday amid hopes that the move towards interest rate cuts is gathering pace on both sides of the Atlantic.

The FTSE 100 rose nearly 2 per cent to an 11-month high of 7882.55 after Bank of England governor Andrew Bailey said ‘things are moving in the right direction’ for a cut as inflation falls.

Daniel Mahoney, UK economist, Handelsbanken:

‘Retail sales figures for February are fairly unremarkable although they are notably better than market expectations. Sales volumes were estimated to be 0% m-o-m (market expectations: -0.4%), following an increase of 3.6% in January.

‘December saw a large fall in sales, which was subsequently corrected in January. At the time, there were some concerns that December’s print could indicate a worrying trend, but January and February’s prints suggest that it was merely a seasonal blip.

‘Retail sales volumes gradually declined from the middle of 2021 for around two years but have effectively plateaued from that point onwards.’

J D Wetherspoon profits soared in the first half of its financial year, supported by a gradual easing of costs and an increase in customers coming to grab drinks and food.

The group, which owns and operates pubs across the UK and Ireland, reported a profit before tax of £36million, compared with £4.6million a year ago.

UK retail sales unexpectedly held steady last month after rising by a revised 3.6 per cent January, figures from the Office for National Statistics showed on Friday.

Flat performance for February compare to forecasts that sales would shrink by 0.3 per cent for the month.

‘There was growth in clothing, which rebounded after recent falls as people invested in the new season’s collections, as well as department stores,” ONS senior statistician Heather Bovill, said.

‘However, these were offset by falls in fuel sales, possibly affected by rising prices, and a reduction in food sales.’

Compared with a year ago, sales volumes were 0.4 per cent lower.

Mobile customers could pay higher prices if the merger between Three and Vodafone is allowed to go ahead, the competition watchdog has warned.

But the Competition and Markets Authority is concerned that a shrinking market of providers could push up prices for all mobile phone customers – not just those of Vodafone and Three.