Toyota expects huge drop in sales figures

Toyota is braced for a huge drop in official sales figures as the beleaguered
Japanese motor group insisted that it would not cut prices to lure back
passengers put off by the manufacturer’s multiple car recalls.

The sales fall last month — after an already sharp drop in January, when
Toyota sales were down more than 12 per cent in a rising market buoyed by
the scrappage scheme — looks likely to exceed 25 per cent.

Fresh industry figures for Toyota sales in the UK are not scheduled to be
published until later in the week.

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Factory gate prices rise in September

Prices at the factory gate rose for the first time in five months in
September, with almost all sectors taking part in the unexpected rise,
according to official figures today.

The Office for National Statistics said that non seasonally adjusted output
prices rose 0.5 per cent in September.

It took the annual rate of inflation to 0.4 per cent, the first positive
reading since April. Prices registered a 0.3 per cent fall in August.

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Next upgrades profits in sunny sales surge

Next, the clothing retailer, unexpectedly delivered some encouraging news from
the high street this morning when it reported a sharp bounce in sales from
the hot weather and a profits upgrade.

The company brought forward its first half trading update, detailing
better-than-expected revenues in recent weeks and that, as a result, there
would be less stock than expected discounted in the end of season sale,
which started on Saturday.

Next had said earlier this year that it did not intend to slash prices
ferociously to encourage customers back into the shops in the downturn. The
hot weather added an estimated 2 per cent to 3 per cent to sales of summer
clothing, and leaving 19 per cent less stock in the sale than last year.

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Pension view ‘not radical enough’

The author of an influential report into the future of pensions now believes that his proposals were not radical enough.

Lord Turner told the BBC he would now argue that the age at which people received a state pension should be raised more quickly.

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Sharp fall in eurozone economy

The German economy suffered its largest contraction since reunification in the first three months of the year, official data has shown.

Gross domestic product (GDP) fell 3.8% from the previous quarter, led by sharp falls in exports and investment, the Federal Statistics Office said.

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Gatwick sale ’still on schedule’

Airport operator BAA has said its sale of Gatwick Airport is on schedule with initial bids having been received from potential buyers.

However, BAA made no comment on the sale of Stansted, which is expected following a Competition Commission review of UK airport ownership. Read more

French retailer in administration

French women’s clothing store chain Morgan has gone into administration, the latest retailer to be hit by the sharp fall in consumer spending.

The company, which expects to report a 9% fall in 2008 sales, said it still hoped to be able to sell the business. Read more

Hotelier group in profit warning

Intercontinental hotels has warned of a sharp deterioration in trading conditions in October and issued a profit warning for the final quarter.

It said revenues per available room dropped 4.5% as the economic turbulence spread to the hotels sector. Read more

New Mortgages Completed Hit A Record Low

In just a year, new mortgages approved for home buyers fell in July to just 33,000, down by 71% from a year previous.

Bank of England figures reveal a new record low in lending and bring into focus the sharp decline in new mortgages in just a single year..

Part of the reason is that only sure-fire borrowers attain the strict criteria lenders now assert on new applicants.

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Housing Market: Persimmon’s on a Low Ride

Statistics don’t hide a thing. The housing market’s sharp downturn and the challenging trading conditions that Persimmon has been subjected to, is evident from its almost two-thirds slump in the pre-tax profits with another half of the year yet to roll on. This slump has compelled the firm to jump down its dividend to 5p per share from 18p per share.

The house builder reportedly grossed 100.9 m pounds in pre-tax profits in a time span of six months that completes on June, galloping down a massive 64% from its position at the same time, a year ago.

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