BRITISH firms focused on domestic markets could be the safest bet to ride out a trade war, experts suggest.
London’s FTSE 100 has already seen £250billion wiped off since Donald Trump announced his new tariffs on April 2.
B&Q owner Kingfisher should weather the storm better than most[/caption]
Dunelm’s boss Tim Stacey said there could be ‘cost of goods benefits’[/caption]
But seven home-grown companies have weathered the storm better than most.
Experts polled by The Sun named Marks & Spencer, Next, Tesco, B&Q owner Kingfisher, Sainsbury’s, Dunelm and DFS as being some of the least exposed stocks to the incoming duties.
It is rare for traders to appreciate domestic retail, as investors have often preferred to focus on international, technology-focused companies.
Retailers once celebrated for “cracking America” are now facing tariff pain. “King of Trainers” JD Sports, which has US outlets, will be hit especially hard, as its suppliers like Nike make the bulk of their goods in Asia.
It will face a tough grilling from investors when it gives a performance update tomorrow.
Tesco, Britain’s biggest supermarket, is the top pick of analysts because most of its suppliers are domestic, and it is focused on the UK consumer.
Sainsbury’s is more exposed as its Argos business relies on importing toys and electrics from Asia.
But some analysts say that this will be an advantage because issues with US sales could mean that Chinese factories will look to sell more to the UK and could cut prices.
Tim Stacey, boss of Dunelm — which also relies on Asia — last month said there could be “cost of goods benefits”.
Expert Clive Black, of Shore Capital, warned that while domestic supply chains and markets will be better off than most, they will be very vulnerable to consumer confidence as the public fears a recession and job losses.
Yesterday, the widespread market sell-off meant just four FTSE 100 stocks closed higher — UK-focused retail bank Natwest, gambling firm Entain, housebuilder Taylor Wimpey and gold miner Fresnillo.
Donald Trump announced his new tariffs on April 2[/caption]
MINECRAFT QUICK OFF THE BLOCKS
THE blockbuster new Minecraft film has given cinemas the best opening weekend since 2023’s Barbie movie — despite it being panned by critics.
The Vue Cinema chain said A Minecraft Movie had raked in £14.9million in two days, compared with Barbie’s £18.4million.
The Minecraft film has given cinemas the best opening weekend since 2023’s Barbie movie[/caption]
Jack Black and Jason Momoa star in A Minecraft Movie[/caption]
Starring Jack Black and Jason Momoa, it features four misfits going on a quest in a bizarre, cubic world.
The film is based on the Minecraft game — one of the highest-selling video games in history, with over 300million copies sold since its 2011 release.
Tim Richards, Vue chief executive, said: “We expect this to continue this week across all of our European markets.”
HOPE YET IN TRUMP SHAKE-UP
PROTEIN shakes and supplements business Applied Nutrition has said it could start making some of its products in the US to avoid future tariff costs.
The company, which counts Coleen Rooney as an investor and ambassador, said Donald Trump’s levies could have their upside.
Coleen Rooney is an investor in Applied Nutrition[/caption]
Finance chief Joe Pollard said there would be “a lot of opportunity” in countries like Canada, who may look to source from companies in the UK after previously using a US supplier.
The firm floated with a £350million valuation last year which netted its former scaffolder founder, Thomas Ryder, a £100million windfall.
Applied Nutrition yesterday posted a 4.8 per cent rise in revenues to £47.6million in the six months to January.
However, its pre-tax profits slipped by 26.7 per cent to £11.8million, which knocked its shares by 3.6 per cent.
HOMES IN PRICE DIP
HOUSE prices suffered an unexpected 0.5 per cent monthly fall in March, according to Halifax figures.
The average UK property is now £296,699, £1,575 down on February as the boom in buyers trying to beat the April 1 stamp duty changes tails off.
But prices are still 2.8 per cent higher than they were a year ago.
Interest rate cuts later this year could see more house purchases and a rise in prices again, economists say.
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