Stock markets rattled by signs of weakening consumer confidence

View this email in your browser
20th May 2022

Bite-sized business news from the UK and beyond
Good morning Yesterday the Bank of England released its first book titled ‘Can’t We Just Print More Money?’, it promises to give a crash course in economics by answering 10 questions. It comes after a YouGov survey of 1,600 people in 2020 found public understanding of economic concepts to be 'generally very weak'. 
Today's stories
  • Stock markets rattled by signs of weakening consumer confidence
  • Global fertiliser market faces a crunch
Stock markets rattled by signs of weakening consumer confidence

What happened?
Yesterday UK stock markets continued their decline as investor concerns about the global economy deepened. The FTSE 100 closed down an additional 2% at 7,302 points taking the two-day performance to -3%, the day after the US S&P 500 index fell 4% - its worst daily loss in almost two years. 

Earning results from the US triggered further worries over the global economy 
This week Walmart, Target and Lowe’s – some of the biggest US retailers – reported disappointing quarterly results.

They all warned that supply-chain costs, inflationary pressures and unwanted inventory (as customers trade down to own-label brands) cut into their profits. Target’s stock fell 25%, its worst drop since the market meltdown of 1987.

With higher costs eroding profit margins and the US consumer, who make up nearly 70% of the America economy, looking under pressure, markets are worried global economic growth is slowing just as central banks are raising interest rates to try to tame inflation at its hottest in 40 years.

As the world’s biggest economy, any concerns in the US read across to the UK
The worsening outlook for the consumer weighed on retailers and food and drink company shares. Guinness owner Diageo and electronics retailer Currys were among the biggest fallers in the UK market.

Signs that consumers are cutting back could help prices cool down
While it’s bad news for anyone with a stock portfolio, poor retail earnings might be a hopeful sign for central banks in their fight against inflation. Both Target and Walmart execs said that consumers were spending less on merchandise and big-ticket items like TVs, which is the type of demand slowdown that could cool prices for goods in the future.
Other stories to keep you in the loop
  • Royal Mail warns it will put prices up again
  • EasyJet forecasts return to near pre-Covid flying levels in 2022
  • Fevertree shrugs of cost pressures as British hospitality trade recovers 
  • Klarna faces valuation drop to $30bn as it seeks funding
  • US cult hit Impossible Foods lands in UK with meat-free duo
  • Sri Lanka defaults on debt for first time in its history
  • KPMG warns British corporate giants of big hike in audit fees
  • Amazon’s spend on TV and film in UK passes £1bn as Netflix cuts back
  • McDonald's restaurants in Russia to reopen under new name after buyer found
  • Iceland offers over-60s 10% discount on shopping bill 
Global fertiliser market faces a crunch

What happened?
Nitrogen, phosphorus, and potassium (often abbreviated to NPK, their chemical symbols) have become the latest commodities to shoot up in price, as reflected by the world fertiliser price index. Fertilisers are a key input in modern farming providing the nutrients crops need to grow.

Prices for NPK were up 125% in January from a year before, and have since risen another 20%.

What’s driving this?
Fertiliser prices were trending upward even before the war in Ukraine, due to pent up demand from the pandemic, supply chain troubles, high energy prices, and even a hurricane. Russia is a major fertiliser producer and its invasion of Ukraine has disrupted trading in the Black sea, exacerbating the issue.

Why does it matter?
Higher food production costs threaten food security around the world. While rich countries are certainly experiencing the effects of more expensive fertiliser, the situation is even worse in developing nations. Globally, the access to and use of chemical fertilisers is far from balanced, with many countries experiencing deficits while rich nations apply them in excess.

All this means further pressure to the price of food which will not only hit your wallet, but could create a humanitarian emergency not seen since the 2008 global food crisis which ignited the Arab Spring uprisings in the Middle East. 
Stat of the day

There are now more apartments in New York City listed for rent on Airbnb than there are available rental units
Interesting links from around the web
Forward to Friend Forward to Friend
Not a subscriber? Join free
Sent this by a friend? Sign up here
How did you like today's email?
Get in touch with any feedback or even just to say hi

Copyright © 2022 Market Loop, All rights reserved.

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

This email was sent to you
why did I get this?    unsubscribe from this list    update subscription preferences
Market Loop · 16 Great Chapel St · London, London W1F 8FL · United Kingdom

Email Marketing Powered by Mailchimp

Older messages

Inflation approaches double digits

Thursday, May 19, 2022

.... and Demand for luxury watches continues to soar View this email in your browser 19th May 2022 Bite-sized business news from the UK and beyond Good morning Inflation is at its highest level in 40

More job vacancies than unemployed for first time on record

Wednesday, May 18, 2022

.... and Big Tech signals the end of passwords View this email in your browser 18th May 2022 Bite-sized business news from the UK and beyond Good morning Last week Facebook owner Meta opened its first shares plunge as furniture demand weakens

Tuesday, May 17, 2022

.... and India pulls the plug on wheat exports View this email in your browser 17th May 2022 Bite-sized business news from the UK and beyond Good morning 32 years after opening its first branch in

UAE telecom giant buys 10% of Vodafone

Monday, May 16, 2022

.... and Elon Musk pauses Twitter takeover View this email in your browser 16th May 2022 Bite-sized business news from the UK and beyond Good morning Congratulations to the UK's Sam Ryder who

UK economy shrinks as consumers cut back

Friday, May 13, 2022

.... and Deliveroo strikes landmark deal with trade union View this email in your browser 13th May 2022 Bite-sized business news from the UK and beyond Good morning Due to soaring oil prices and the

How they built a $667,867/yr business in 30 days… (EVERYTHING revealed)

Monday, June 27, 2022

newbie-friendly and takes as little as 60 minutes to set up. This coming Thursday (30th June), we're going to be running a private in-house call where our guests are going to reveal a simple

Are you joining the client acquisition challenge?

Monday, June 27, 2022

Never been easier to close a deal͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

June 27 - In the wake of Roe v. Wade, retailers turn their attention to benefits

Monday, June 27, 2022

Foot Locker divests its team sales business; Anne Klein to sell furniture at tricky time for the category; Madison Reed names chief marketing, digital officers; As consumers spend more on gas and food,

Making $10k+ Per Month Sharing SEO Tips & More...

Monday, June 27, 2022

Making $10ka month from a side hustle sharing SEO tips, a content creation service provider, a lifestyle blog success story, appsumo review, and more... Today's email is sponsored by: ​ Today's

June 27 - Cannes Lions clashes with the real world | American Eagle launches NFT-inspired shop

Monday, June 27, 2022

American Eagle Outfitters launches NFT Apparel Shop; How YouTube's brewing TikTok rivalry could impact mobile video strategies; Metaverse madness: What brands are doing to cut through the noise;

Here's how to lower your FB ad costs...

Monday, June 27, 2022

It's the last Monday in June, Reader, and that means 🎉 Social Media Day 🎉 is this week! This newsletter is brought to you by the Crypto Business Conference. In today's edition: Nearly every

Agtech harvests near-record funding

Monday, June 27, 2022

Q&A: the UK's growth funding gap; Zomato picks up Blinkit for $568M; Strapi snags $31M; Hadrian nabs $11M+ for cyberattack simulations Read online | Don't want to receive these emails?

[New Class] How to boost SEO in 5 easy steps

Monday, June 27, 2022

Hey Reader, These days, you can no longer rely purely on PPC to get eyeballs on your listings—it's just not sustainable. So for this month's Secret Sauce mini-class, we'll be discussing a

5 Tips for Small Business Owners on Finding & Reaching the Right Audience Within Year One of Launch

Monday, June 27, 2022

Learn how to leverage the right digital tools to discover your small business' ideal target audience, and begin reaching them. HubSpot Marketing Blog June 27, 2022 5 Tips for Small Business Owners

How to Get 100 Customers with $0 Budget 🚀

Monday, June 27, 2022

View in browser Hey 👋🏼 Chris here… Happy Monday to the thousands of motivated marketing professionals & startup founders who are a part of this community. One of the most frequently asked questions