Retail data released overnight provides a great insight into how consumers are reacting to higher prices: in short, agreeing to pay more, but buying fewer items. That’s going to have an important impact on consumer goods retailers like Asos Plc, who are due to report tomorrow. One retailer seemingly unfazed by the economy is JD Sports Fashion Plc, who this morning announced the potential purchase of a European sportswear company.

Here’s the key business news from London this morning:

In The City

JD Sports Fashion Plc: The apparel maker is in exclusive negotiations to buy Groupe Courir SAS, a European sports retailer with 313 stores across six countries, for an enterprise value of €520 million.

• Courir’s focus on the female consumer will be complementary to JD’s French operations, the company said

Direct Line Insurance Group Plc: The insurance company’s average renewal premiums for its motoring business increased nearly 20% in the first quarter, in an attempt to improve its margins.

• The company has experienced an uptick in motoring claims, which they say will “put pressure” on earnings in 2023

HSBC Holdings Plc: The bank is rapidly expanding its wealth business in Hong Kong, mainland China, India and Singapore, said Nuno Matos, chief executive officer for wealth and personal banking at the London-based lender.

• HSBC is also boosting its presence in global wealth hubs including London, Switzerland and the United Arab Emirates, Matos said at the Bloomberg Wealth Asia summit Tuesday

De La Rue Plc: The banknote printer will delay the publication of its 2023 results until the end of June as it continues to search for a new chairman and holds talks with banks on amending its covenants.

Retail Sales: The value of goods sold increased at a steady clip for the second month, indicating households are absorbing higher prices by adjusting their spending habits, the British Retail Consortium said.

• Volumes fell once again as a squeeze on living standards from double digit inflation meant consumer spending didn’t stretch as far as it used to

In Westminster

The Treasury is requesting proposals on how its financial regulators can improve the UK’s international competitiveness, City minister Andrew Griffith said, as the government faces criticism of the country’s business climate.

Britain’s energy suppliers should renegotiate contracts with small businesses to reflect a heavy drop in wholesale prices, a major trade body said.

Meanwhile, the UK’s biggest manufacturing lobby called for a Royal Commission to fight back against heavy industrial subsidies from the US and the European Union.

In Case You Missed It

Jan du Plessis is quick to offer a withering assessment of the City of London’s place in the world. “It’s clear that over the last five, 10 and 15 years, we have been declining as a financial capital in almost any metric,” he says during an interview at the Financial Reporting Council, which he now chairs.

The Chinese owners of Birmingham City Football Club agreed to sell their shares to US hedge fund manager Tom Wagner. The financier joins other US buyers targeting the lower UK leagues, boosted by a strong dollar and Americans’ growing interest in British football. US-based investors have bet on teams including Ipswich Town, Lincoln City and Crawley Town.

Finally, a British fintech firm which helped drum up retail investors’ participation in share sales from Aston Martin, Deliveroo and others, is turning its attention to boosting direct purchases of bonds by small-time UK savers.

Looking Ahead

Tomorrow will see updates from caterer Compass Group Plc, manufacturing investor Melrose Industries Plc and online fashion retailer Asos Plc.

Bloomberg Intelligence analysts will be watching Asos’ results for “any signs of a strategic turnaround.” Asos is expected to have saved £100 million in costs in the six months through February, says BI’s Tatiana Lisitsina, adding that if the company failed to do so, it might need a capital raise.

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