Best wishes for the festive season.

Cloud Bookkeeping

H&M struggles with profitability.

H&M blamed high clothes prices , its exit from Russia and a cost-cutting programme for an unexpectedly large collapse in its earnings as the world’s second-largest fashion retailer’s struggles with profitability continue . Operating profit plunged 87 per cent to SKr820mn in the fourth quarter to the end of November from a year earlier . Shares in H&M fell more than 4 per cent to SKr125 . 80 yesterday , having lost nearly half of their value since their recent peak in April 2021 . The Swedish retailer , which lags behind Inditex , the Spanish owner of Zara , in sales and profitability , launched a SKr2bn cost-cutting programme last year that included 1 , 500 job losses . H&M’s sales in the fourth quarter were up 10 per cent to SKr64 . 4bn but flat in local currency terms . It said sales from December 1 to January 25 had increased 5 per cent in local currencies . «Sales in ...

Commercial properties continue to fall

UK commercial property values and rents are projected to «tumble off a cliff edge» in the first quarter of 2023, as estate agents warn offices will fare worst as prices fall. A survey of more than 400 commercial agents forecast a 2.9 per cent decrease in prices per square foot across the industry in the first three months of the year, with offices falling 3.1 per cent. «Where we saw the market stop still, we will see the market finding its level, people working out where things are, where value is,» he said. Listed vehicles have already seen this valuation drop in their share prices, with real estates investment trusts such as Land Securities and British Land falling by a fifth or more this year. According to the RIB estate report, offices are expected to suffer the most significant sales price falls, with nearly a third of respondents expecting them to come down by more than 5 per cent. In addition, the survey projected a 1.3 per cent fall in rents per square foot over the perio...

BoE is considering to increase deposit guarantee.

According to anonymous sources, the Bank of England is considering reforming its deposit guarantee scheme. The move comes in response to concerns that the current system may not be sufficient to protect customers in case of a bank failure. The Financial Services Compensation Scheme guarantees deposits up to £85,000 per person per institution. However, some experts have raised concerns that this may not be enough to prevent a run on banks in a significant financial crisis. As a result, the Bank of England is reportedly considering several options for reforming the scheme, including increasing protection and introducing more stringent bank regulations. A final decision on any changes will be made later this year. One option the Bank of England considers is increasing the protection offered by the deposit guarantee scheme. This could involve raising the maximum amount guaranteed per person or extending coverage to more types of deposits. Another possibility is to introduce more stri...

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