M&S blames profit plunge on poor clothing sales

Marks & Spencer's profits fell in the first half of its financial year, which the high street chain has blamed on a continuing slump in clothes sales. Although M&S is still the UK's largest clothing retailer, its clothes sales have been in decline for eight years – and another 5.5 percent fall in like-for-like purchases has sent pre-tax profits tumbling 17 percent to $227.5 million on total sales, down 2.1 percent to $6.26 billion. 

Even so, the company's shares rose in early trading – up 6.3 percent to 193.94p on the FTSE 250. In September, M&S dropped out of the FTSE 100 for the first time since the index's launch in 1984. M&S's food halls returned to growth in the first six months, like-for-like sales rising 0.9 percent against a 0.3 percent forecast. 

Adidas sales accelerate

Sportswear giant Adidas has forecast its sales will pick up the pace in the fourth quarter after better-than-expected third-quarter results returned it to growth in Europe. The German company posted a currency-adjusted 6 percent sales rise to $7.10 billion, better than analyst forecasts averaging $7 billion, while operating profit was flat at $994 million, again above the analysis average of $997 million. 

Formed in the 1920s by brothers Adolf and Rudi Dassler – the latter would go on to found Puma after a family feud – Adidas has gone from using war-surplus materials on machines powered by bicycles to become Europe's largest sportswear manufacturer. Adidas has also attempted recently to diminish Nike's dominance of the US market, but the American company has grown faster in China and Europe. 

UK small manufacturers gloomy, but German industrial orders on the rise

Small British manufacturers are at their most pessimistic since just after the June 2016 Brexit referendum – but the mood is brighter in Germany, as industrial orders have risen by more than expected. 

The Confederation of British Industry's optimism index for small- and medium-sized manufacturers dropped to -32 in the three months to October, down from -28 in the three months to July, as firms reported weakening orders. Almost two-thirds of the 240 firms surveyed expected political or economic conditions to limit exports. 

By contrast, new data in Germany suggest Europe's biggest economy could avoid recession. The Federal Statistical Office reported the number of contracts rose 1.3 percent from August to September, defying predictions of a much slimmer 0.1 percent rise. Domestic orders were up by 1.6 percent, while those from abroad jumped 1.1 percent. 

Barry Callebaut retains growth target despite slowdown

Chocolate processor Barry Callebaut has maintained it is on target for sales volume growth of between four and six percent over the next three years, despite a slowdown in its most recent quarter. The firm reported that sales volumes grew 5.1 percent to 2.14 million tons in the year to August, with net profit up 6.9 percent to $371 million. 

The Zurich-based company provides chocolate and cocoa for companies such as Unilever and Nestle. It was formed in 1996 by the merger of Belgian chocolate producer Callebaut (founded in 1850 by Eugenius Callebaut) and French firm Cacao Barry (founded in 1842 by Charles Barry). 

Wirecard expects rapid growth in 2020 and beyond

German digital payments company Wirecard has reported a 43 percent rise in third-quarter core earnings. The Munich-based company's earnings before interest, taxation, depreciation and amortization (EBITDA) rose from $164 million in Q3 2018 to $234 million this time. 

Wirecard is awaiting the verdict of a KMPG investigation after the Financial Times alleged some of its financial reports had been inflated. Meanwhile, the firm has established its first direct presence in China with an 80 percent stake in Beijing-based AllScore Payment Services; Wirecard has the option to buy AllScore outright after two years for a maximum $120.8 million and expects China's EBITDA contribution to reach $55.4 million by 2022.

What do you get if you cross a unicorn with 70,000 tech geeks? The Web Summit in Lisbon, of course. It isn't only about billion-dollar start-ups, such as French firm Meero – a marketplace for freelance photographers, which raised $230 million for its on-demand photo platform this summer.

There are government delegations taking meetings behind closed doors – such as Pedro Siza Vieira, Portugal's economy minister, who told me he had met Huawei and White House representatives – separately, naturally. I would have liked to have been a fly on the wall there!

Vieira said the Web Summit in Lisbon is an important part of a growing tech scene in Portugal that will ultimately create jobs, drive competition in new markets and stoke economic growth. One big challenge, he said, was getting older generations on board with digital transformation in the workplace, while Millennials and Generation X might have an easier ride since they're more accustomed to the fast pace of technological change.

With four huge exhibition hangars crammed with exhibitors, I can honestly say I've never seen anything like it. I've covered plenty of trade fairs and conferences in my decades as a business reporter, but the sheer scale of it and the throngs here make it feel even bigger than any air show or car show I have covered – and since there are several keynotes and panel discussions going on at any one time, there is a constant stream of people creating a buzz.  

Portuguese electricity company EDP has built a boxing ring on its stand which elevates while investment hopefuls pitch their big ideas, speed-dating style. Once their minute is up, a bell rings to signal the end of the round. Handmade cosmetics firm Lush has a sushi-style conveyor belt for bath bombs, showcasing its latest innovations in digital packaging. Porsche has its new e-car Taycan on display. Hanson Robotics introduced the CGTN team to some eerily humanlike android called Sophia – "the world's first robot citizen."

At La French Tech's stand I was issued with a fun fake tech visa by director Kat Borlongan. She told me the French government is on a mission to boost its tech economy, pledging to spend big on digital innovation, training and making France ever more business-friendly for start-ups and tech entrepreneurs. The creation of a special tech visa makes it easier for the sector to import talent.

I had another interesting conversation with Victoriya Boklag, CEO and vice president of marketing and media at United Group, a multi-play telecoms and media provider in South East Europe. She doesn't buy the buzz about 5G technology becoming a game-changer in mobile technology. Quite bluntly, she questions how operators will make 5G pay and whether consumers are prepared to stump up the inevitable premium for a nascent, so far limited technology.

The organizers say this event is where the giants of the web assemble to pioneer change in the global tech industry. It certainly feels like anyone who is anyone in the world of digital is here in Lisbon. But the chatter is less about the who than the how to tackle the big issues shaping the digital conversation, from data privacy to the future of the internet, to whether tech is ultimately a force for good or something we all need to take more seriously soon.