Luxury brand Burberry saw its shares plunge by 11% after announcing the replacement of its chief executive and suspending its dividend due to lower than expected annual profits. The company, famous for its trenchcoats, appointed Joshua Schulman, former boss of Michael Kors, as the new chief executive, replacing Jonathan Akeroyd. The trading update for the three months to June revealed a challenging market environment, with a 21% drop in comparable store sales and a 22% decrease in revenues to £458m. The company is on track to post an operating loss for the first half of the financial year. The announcement caused a 12% drop in share price, adding to a 58% decline over the past year. The company cited weakening consumer demand, especially in China, as a major factor in its struggles.
On the political front, the price of bitcoin surged following an attempted assassination of Donald Trump. The former president’s support for cryptocurrency and plans to speak at the Bitcoin 2024 conference in July have bolstered investor confidence. Trump’s chances of winning the presidential election also saw a 10-point increase on prediction markets. The speculation around a potential Trump victory has led to a 70% surge in shares of Trump Media & Technology Group. Analysts believe that Trump’s policies towards cryptocurrencies and international relations could have a significant impact on the market.
Recruitment consultancy Robert Walters warned of a slow recovery in the jobs market, with a 5% reduction in headcount and a 12% decline in net fee income during the second quarter. Global recruiters are facing challenges as clients delay hiring decisions, and candidates are hesitant to change jobs amidst economic uncertainty. CEO Toby Fowlston expressed caution, expecting a gradual improvement in confidence levels and not anticipating significant recovery until 2025. Despite the challenging market conditions, the company remains confident in its experienced leadership team.