Global Inflation Tsunami - Supermarkets, Retail Sector Crisis 2017
Companies / Retail Sector Mar 09, 2017 - 04:47 PM GMTBy: Nadeem_Walayat
In June 2016 the people of Britain voted against the interests of the establishment political elite that have played pass the parcel amongst themselves at each general election for at least the past 40 years, who in treaty after treaty have been systematically selling the sovereignty of the British people to the emerging european union superstate primarily for personal gain.
Whilst the formal process for Britain leaving the European Union remains pending triggering of Article 50. However there was one significant immediate reaction to the Brexit vote which was sterling's sharp 20% drop and which currently stands about 18% below its pre-brexit trading level.
The implications of sterling's sharp drop were inflationary resulting in an an increase the price of imports and therefore has been exerting upwards pressure on shop prices as suppliers restock at the worse exchange rate that already depressed retailers such as the big supermarkets have delayed fully implementing and which is likely to result in a crisis for the retail sector during 2017 that literally faces a perfect storm, that could even result in a Woolworth moment...
Ensure you are subscribed to my youtube channel for new videos in this retail sector series as I take a look at the stock price prospects for Britain's biggest retailers, including Tesco, Sainsbury, Morrisons and Marks and Spencers amongst others.
This video is based on my following article - http://www.marketoracle.co.uk/Article58336.html
By Nadeem Walayat
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Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
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