Tesco Sandhurst

Tesco shares fell to their lowest level in more than six years after the supermarket group trimmed its profits forecast and warned that inflation was affecting costs, shoppers and staff pay hikes (The Financial Times £).

Tesco expects annual profits to be at the lower end of its previous guidance as customers look to cut the cost of their weekly shop amid the biggest squeeze on incomes since the 1950s (The Times £).

Britain’s largest supermarket chain Tesco is expecting profits at the lower end of its forecasts as it battles to keep prices down to stop customers switching to Aldi and Lidl (The Telegraph). 

Tesco has committed to restraint on prices hikes, with consumers ‘watching every penny’ as they try to make ends meet during the cost-of-living crisis (The Mail).

Tesco has ramped up the supermarket price war as Britain’s biggest grocers battle to win over the nation’s cash-strapped shoppers (The Mail).

Tesco has said it plans to cut more than 300 head office jobs while raising pay for shop workers for the third time in 13 months, as it issued a warning that profits would be hit by cost inflation (The Guardian).

The Lex column in The Financial Times (£) wonders if hardpressed shoppers may still desert Tesco for Aldi and Lidl despite the supermarket giant making promises to keep prices in check. “With budgets strained to breaking, customers may prefer a grocer with no premium range that might tempt them to overspend.”

Retailers bore the brunt of investor jitters yesterday after a closely watched survey revealed that service sector growth stalled last month and an update from Britain’s biggest supermarket fanned worries of a worsening cost of living crisis, with Sainsbury’s, Ocado and Marks & Spencer all dropping in value (The Times £).

Unilever was accused of ‘taking the world for idiots’ by selling Magnum and Cornetto ice creams in Russia as ‘essential goods’ (The Mail). The consumer goods giant has not pulled products from the country, and is one of a few Western firms still trading there since February’s invasion of Ukraine.

Some of the world’s top oil-producing countries have agreed to cut the amount they export in a decision expected to raise petrol prices around the world (BBC News).

A City solicitor who told a client to “burn” a secure messaging system in a dispute with Ocado has avoided jail after being found in contempt of court (The Times £).

Creditors of Lord Bilimoria who are owed money from his Cobra beer business are set for a new payout after he received dividends of £2.3 million from the brewer last year (The Times £).

Despite growing sales by 20% year on year, and hitting £12.9m in the 12 months to September, brewer Northern Monk wasn’t able to make a profit this year owing to “unprecedented” cost pressures (The Times £).

Liz Truss sought to reassure financial markets on Wednesday by stating her commitment to fiscal discipline while claiming there was an “anti-growth coalition” opposed to her economic agenda (The Financial Times £).

Growth in the UK’s dominant services sector ground to a halt for the first time in 18 months in September, leading to warnings that the economy is on the brink of a recession (The Times £).

Soaring energy prices and widespread pessimism caused the UK’s key services industry to stagnate in September following 18 months of successive growth (The Mail).

Recession fears are mounting across Britain and the eurozone after business activity fell at the fastest rate in almost two years (The Mail). S&P Global said output across the UK services and manufacturing sectors declined at the fastest pace since January 2021.

Invest in small farmers or world will face regular food crises, says UN agency chief (The Guardian).

Fish is an excellent food for the middle-aged brain, a new study suggests (The Times £). The research indicates that eating salmon, sardines and other fish rich in omega-3 fatty acids in your forties and fifties is linked to a healthier brain structure and more agile thinking.