Photo credit: www.theguardian.com
M&S Tells Hundreds of Agency Workers Not to Report to Work
According to reports from Sky News, a significant number of agency workers at Marks & Spencer’s main clothing and home goods distribution center in the East Midlands have been instructed to stay home.
This situation underscores the profound disruption caused by a major cybersecurity incident that has forced the retailer to suspend online orders as of last week.
Exclusive insights reveal that Marks & Spencer has notified hundreds of agency workers not to report to work at its Castle Donington distribution facility due to the ongoing repercussions of a substantial cyberattack. https://t.co/hBK3eUvbiU
— Mark Kleinman (@MarkKleinmanSky) April 28, 2025Share
Updated at 11.45 CEST
Key events
Please enable JavaScript to use this feature
FTSE 100 Achieves 11 Consecutive Days of Gains
The FTSE 100, representing Britain’s high-performing shares, has tied its longest streak of daily increases in eight years.
Despite some late-session declines, the index managed to close slightly up by 2 points or 0.02%, reaching 8417 points.
This marks an impressive 11-day winning streak, equivalent to the previous stretch recorded in December 2019. The index’s last longer rally was in January 2017, when it achieved 14 consecutive days of gains.
However, the FTSE 100 has not completely rebounded from its declines due to trade tensions. It previously traded above 8,600 points before President Trump announced new tariffs on trading partners in early April.
Stocks have been bolstered as Trump delayed most tariffs for 90 days, signaling a potential easing of trade tensions.
Neil Wilson, a strategist at Saxo Markets, notes that the FTSE 100 possesses “defensive characteristics,” with many constituent companies offering robust dividends.
Nevertheless, Wilson cautions:
There’s a sense of market complacency; although tariffs are suspended, they are not eliminated. The market’s current behavior suggests an overly optimistic outlook. While we can ascertain the present trend, the future remains uncertain, particularly given the unpredictable nature of trade negotiations.
Share
A recent rally in early Wall Street trading started to fade after troubling news regarding Texas’s manufacturing sector emerged.
Currently, the Dow Jones Industrial Average remains stagnant, while the tech-focused Nasdaq has seen a 1% decline.
Share
Recent reactions highlight the dismal state of the Dallas Fed manufacturing report:
The Dallas Fed’s manufacturing outlook has reached its lowest level since May 2020, with new orders declining while prices paid and received increased. pic.twitter.com/USkCd68Pwm
— Kathy Jones (@KathyJones) April 28, 2025
Since the market peak in 2007, the business landscape has remained challenging long-term. The latest reading from the Dallas Fed indicates a faltering general business outlook, the worst since COVID began. #investing pic.twitter.com/ZH0syUb9Yc
— Kapitalyst (@TheKapitalyst) April 28, 2025
Share
Texas Manufacturing Activity Declines as Tariff Impacts Spread
Recent trends show that manufacturing activity in Texas has decreased at the fastest pace since the early stages of the COVID-19 pandemic.
Business leaders in the region are expressing concerns that the ongoing trade conflict is negatively affecting their operations, as demonstrated in the latest Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas. The survey reveals a significant downturn in business conditions in April, with the general business activity index dropping to its lowest point since May 2020.
A notable rise in economic uncertainty was recorded, alongside a dip in executives’ perceptions of the economic landscape.
There was a sharp decrease in new orders, and the shipments index fell into negative territory for the first time this year.
The Dallas Fed Manufacturing Survey paints a dire picture, with the most recent index hitting its lowest since May 2020—most comments focus on the implications of tariffs and policy inconsistencies. pic.twitter.com/PQByWPIFPi
— Joe Weisenthal (@TheStalwart) April 28, 2025
The feedback provided by respondents to the Dallas Fed survey highlights pressing concerns:
A representative from a chemicals manufacturing company reflected:
“The uncertainty surrounding tariffs and their consequences could have a significant impact on our business and ongoing projects.”
Meanwhile, a computer and electronics manufacturer voiced similar fears, stating:
The unpredictability of our industry has escalated due to tariff-related issues; smaller firms are burdened with tariffs that large electronics manufacturers escape, resulting in potential delays and obsolescence of orders.
We have had to cancel shipments due to customers’ inability to absorb tariff costs, affecting our production capabilities and threatening jobs. If this continues, many small businesses may be critically impacted or even face closure. If we aim to revitalize U.S. manufacturing, we must avoid undermining the very companies that could facilitate this recovery.
We should consider a nuanced approach rather than adopting a broad-brush strategy. The current risks are profound and notably different from those seen during the COVID shutdown. Consumer and business activity is contracting until a semblance of stability is restored, evident through smaller and delayed orders—it’s total disarray.
Food manufacturers have similarly criticized the trade uncertainties, with one stating:
“Tariffs and their associated unpredictability are significantly disrupting our supply chains and capital investment plans.”
Share
Travel sector stocks are among early gainers on the S&P 500, with Norwegian Cruise Line Holdings increasing by 3.5% and Southwest Airlines climbing by 2.8%.
Share
Wall Street Commences the Week with Minor Gains
The New York stock market has opened the week with slight upward movements.
The Dow Jones Industrial Average is up 184 points or 0.5%, reaching 40,297 points. The broader S&P 500 recorded a modest increase of 0.1%.
Even with this recent rise, the Dow remains down 3% over the past month.
Interestingly, only Richard M. Nixon’s second term has produced worse returns from U.S. equities 100 days into his administration than what is currently being observed in Donald Trump’s second term.
As noted by Russ Mould, investment director at AJ Bell,
President Trump’s second term, marking its first 100 days, has seen an 11% recovery in the S&P 500 from its lowest point on April 8. This rally has likely spared Trump from having the worst market start of any post-war U.S. president.
“Since Trump took office on January 20, the S&P 500 has decreased by 7.9%, a steeper drop than what Nixon experienced during the initial 100 days of his second term, which saw a 9.9% decline in 1973.”
“This challenging beginning to Trump’s presidency, particularly concerning stock prices and the dollar, highlights a sudden shift in market sentiment following the optimistic reception of his election victory last November, which led to strong gains in both the S&P 500 and the U.S. dollar while maintaining steady Treasury yields.”
“However, recent tariff implementations, escalated tensions with China, and a subsequent series of adjustments and stall tactics have left investors feeling perplexed and undermined the earlier confidence in U.S. market resilience.”
Share
Updated at 15.39 CEST
Amid widespread anxiety regarding the economic repercussions of the U.S. trade war, European markets are witnessing gains today.
In London, the FTSE 100 has risen by 30 points or 0.36% to 8445 points, potentially achieving its highest closing level in over three weeks.
Germany’s DAX is up 0.7%, while France’s CAC 40 has gained 1%.
Despite a significant power outage affecting Spain and Portugal, trading in Madrid continues, with the Spanish IBEX rising by 0.6%.
Tom Stevenson, investment director at Fidelity International, described the current market situation as being in a state of flux:
“Investors find themselves caught between the buoyancy of the ‘Trump put’ theory and the growing apprehension regarding potential economic slowdowns or recessions.”
“The ‘Trump put’ refers to expectations that the President will intervene to counteract market weaknesses by adjusting trade policies. Recent rallies in bonds and equities suggest this intervention may occur when markets reach recent lows.”
“While this view is optimistic, it is bolstered by steady earnings growth expectations, though they are expected to slow in coming quarters as valuations normalize from earlier peaks.”
“The upcoming earnings reports from major sectors, particularly in tech from companies like Meta, Microsoft, and Amazon, will provide crucial insights. Additionally, the valuations for these ‘Magnificent Seven’ stocks have adjusted to more reasonable levels, down from 40 times expected profits to the current 25.”
Germany’s Merz Advocates for Zero Tariffs with the US
Friedrich Merz, Germany’s future Chancellor, has announced that he intends to propose to Donald Trump a complete elimination of tariffs.
Merz stated:
“Our position is straightforward: it would be advantageous for both sides to eliminate all customs duties on traded goods.”
He also emphasized the need for mutual acknowledgment of technological standards between Germany and the U.S., stating:
“The divergence in technical regulations among major trading nations has increased, and addressing this discrepancy could significantly reduce bureaucratic hurdles.”
Merz has also outlined plans for early cabinet appointments, naming utility executive Katherina Reiche as a potential economy minister and foreign policy expert Johann Wadephul as the new foreign minister.
Share
M&S has confirmed that agency staff at its Castle Donington logistics center for clothing and homeware have been instructed not to come to work today.
Regular staff members at the site remain on duty, as reported by PA Media.
The retailer’s stores continue normal operations, and customers can still access its website and app for purchases.
Contactless payment systems in stores have also been restored following initial disruptions linked to the cyber incident.
Measures have been implemented to safeguard its network, and the retailer has alerted relevant data protection authorities and the National Cyber Security Centre about the incident.
Channel 4 CEO Alex Mahon to Depart After Eight Years
Alex Mahon, the chief executive of Channel 4, is set to resign after nearly eight years at the helm, with her departure planned for the summer.
During her leadership, Mahon, who became the first female CEO in the broadcaster’s forty-year history in 2017, successfully fended off two attempts to privatize Channel 4.
At 51, Mahon was often scrutinized for her compensation, which constituted the highest payday for any CEO in Channel 4’s history. She will be succeeded on an interim basis by Jonathan Allan, the current chief operating officer.
“Mahon has been one of the most influential leaders since the inception of Channel 4 over 42 years ago,” remarked Dawn Airey, the interim chair of the broadcaster.
Share
Domino’s Pizza has announced a decline in sales across its U.S. outlets for the most recent quarter, potentially signaling economic concerns.
The same-store sales in the U.S. fell by 0.5% in the first three months of the year, diminishing the impact of a 3.7% increase in international sales during the same period.
Investec analyst Kate Calvert noted that extended delays in reinstating online sales could further harm M&S’s financial performance.
She commented:
“The short-term impact on profits is undeniable.”
Gold Prices Decline from Recent Peaks
Gold prices are retreating from the record highs achieved recently, down 0.85% to $3,290 per ounce as market participants show a preference for riskier investments.
While gold reached an all-time high of $3,500 per ounce last Tuesday, it has since declined as market fears surrounding the trade war have moderated, even though the conflict continues to inflict economic damage.
Achilleas Georgolopoulos, a senior market analyst at Trading Point, shared insights on market conditions:
This week is unfolding smoothly for traders, with most preparing for upcoming developments. Risk appetite is improving, evident in last week’s solid performance of U.S. equity indices and the U.S. dollar’s recovery from early-week losses. The Nasdaq led the surge, fueled by optimistic speculation that the U.S.-China trade conflict might ease, particularly benefiting technology products.
The route to a U.S.-China agreement remains complicated, as both governments appear hesitant to take the necessary first step towards serious negotiations, fearing perceptions of weakness, a stance President Trump is unlikely to embrace.
UK Retailers Report Continued Decline in Sales Volumes
Recent findings from the CBI’s latest Distributive Trades report reveal that UK retailers experienced a decline in sales volumes for the seventh consecutive month in April.
A net balance of -8% of retailers indicated a decrease in sales, although this was an improvement from the -41% reported in March.
Looking ahead, retailers anticipate a faster decline in sales next month.
Martin Sartorius, principal economist at the CBI, attributes the somber outlook to the tax increases implemented in last year’s budget:
“Although April’s retail sales volumes decreased at a slower pace, businesses remain pessimistic due to the repercussions of the Autumn Budget measures, ongoing weak consumer sentiment, and global economic unpredictability.”
These sentiments were echoed in the wholesale sector, which reported one of the steepest sales drops in four years.
The CBI’s survey presents a more pessimistic view compared to the official retail sales figures from the Office for National Statistics, which indicate an uptrend in sales for the first quarter of the year (seasonally adjusted).
Share
Global Economic Recession Risks Increase Due to US Trade Policy Shockwaves
A significant risk exists for the global economy to enter a recession this year, as indicated by a majority of economists surveyed in a Reuters poll.
The survey found that 60% of the 167 economists acknowledge a high or very high risk of global recession within the year. Conversely, 66 participants indicated a low risk, including four who rated it as very low.
Many economists highlighted that Donald Trump’s tariffs are detrimental to business confidence.
According to Reuters:
A striking consensus emerged from the poll, with no economists suggesting a positive impact from tariffs on business sentiment; 92% indicated a negative effect, while only 8% described the impact as neutral, predominantly from Indian counterparts and other emerging economies.
Source
www.theguardian.com