John Lewis retail report: drones out, storage boxes in

The seventh annual John Lewis retail report suggests popular TV shows are driving customer demand in UK retail as viewers seek to dress like their favourite characters. Sales of Fleabag-style black jumpsuits leapt 66 percent, while Peaky Blinders flat caps sold 25 percent more. Even "less is more" TV shows boosted sales: the popularity of purge-or-fold minimalist Marie Kondo inspired a 47 percent rise in sales of storage containers.

The convergent technology of mobile phones has claimed retail victims with a 33 percent plunge in camcorder sales, a 30 percent drop in mantel clocks and a 20 percent fall in landline phones. Also among the formerly fashionable items on the way out are fish kettles, cocktail shakers and drones; John Lewis stopped selling the airborne cameras after last December's disruption at Gatwick Airport. 

EU's antitrust tech clampdown to continue 

EU regulators are set to force US chipmaker Broadcom to suspend its alleged anti-competitive operations while it is under investigation in the latest EU clampdown on big US tech firms. Interim measures will be announced on Wednesday, says the Financial Times, as the start of a battle which is expected to go all the way to the European Court of Justice. 

The EU will claim that Broadcom has been abusing its market dominance by imposing terms on clients that stop them buying chips from elsewhere; Broadcom denies the accusations. Similar cases have been brought before, but this is the first time in nearly 20 years that the EU will have demanded immediate cessation of activities before they have been proven by a full investigation. 

ASOS profits down two-thirds

Online fashion retailer ASOS has blamed a "disappointing" 68 percent slump in full-year profit on problems with expansion and logistics. Pre-tax profit fell from £102m to £33.1m in the year to 31 August, as ASOS swung from net cash of £42.7m to net debt of £90.5m - despite revenue rising 13 percent from £2.42bn to £2.73bn. 

ASOS has had serious problems with new warehouses in Berlin and Atlanta, the latter location indicative of US expansion. Chief exec Nick Beighton acknowledged the logistics have been "more disruptive than we expected" and that there is "lots of work to be done."

In other fashion news, discount retail chain Primark has reminded its customers that it has no online stores. Its goods have started to appear on Amazon, at up to twice the original price, forcing the 50-year-old retailer to tweet that "we encourage our customers to visit us in our stores."

EU ponders free trade vs environment

A new EU initiative would compel other countries to meet its climate standards or pay tax at the border. However, advocates of free trade have warned against clashing with World Trade Organization rules - and cited the crucial importance of open markets in the EU's ethos. 

Plans for a Carbon Border Adjustment have been floated by incoming European Commission president Ursula von der Leyen. The policy is designed to correct potential inequalities in the levies placed on imported goods, to avoid consumers buying cheaper but less ecological imports. However, finding a way to implement the idea may prove one of the biggest logistical and political tasks of Von der Leyen's premiership. 

Criminals 'likely' to exploit no-deal Brexit

A no-deal Brexit would "likely" be exploited by criminals, says the UK parliament's spending watchdog. "It is likely that organised criminals and others would quickly exploit any perceived weaknesses, gaps or inconsistencies in the enforcement regime," warned a National Audit Office (NAO) report released on Wednesday. 

The study also stated that a "large proportion" of businesses would not be ready for no-deal. HM Revenue and Customs estimate that between 150,000 to 250,000 traders would need to make a customs declaration for the first time, but only 25,000 have registered so far. Warning that the flow of goods across the English Channel could be reduced by between 45 percent and 65 percent for up to a year, NAO chief Gareth Davies said "Significant risks remain which may have consequences for the public and businesses."

The long-awaited Boris Bounce

The tease continues, but the signs are that a draft Brexit agreement may come out of Brussels. Financial markets are not hanging around for the details: gilt yields rose and the British Pound started to inch higher in overnight trading. 

However, a disappointment now could see much of GBP gains evaporating as quickly as they appeared. "Sterling's upside is substantial... but I would caution against over-exuberance at these levels until we see something in black and white," said Jeffrey Halley, Senior Market Analyst for Asia Pacific at OANDA. The EU summit this weekend is a key deadline.

US earnings confidence pick-me-up

The IMF downgraded its world growth forecast to 3 percent from 3.5 percent for 2019 - the lowest in 10 years. And uncertainty persists over US-China trade tensions. However, there was not such a glum outlook from corporate America. 

The quarterly earnings season in the US got off to a good opening with JP Morgan, Wells Fargo, Citibank, Johnson & Johnson and United Airlines all outperforming on revenue. Tech stocks also rallied after Apple hit a fresh record high.