Crypto News: The London Rush: British rain, American dreams

Hi, I'm Louise from Bloomberg UK's breaking news team, catching you up on this morning's business stories.

British people love moaning about the weather, but for some retailers the cloudy skies have become a real bugbear.

JD Sports is the latest among a swathe of peers to blame the rain for a weakness in UK summer sales, at least in part (other factors include more demand for discounts than full price goods).

It gives brands yet another reason to take on the tough challenge of going Stateside. For JD Sports, could it be Sweet Home Alabama?

The athleisure retailer has been increasingly shifting its attention to the US, splashing out $1.1 billion on Alabama-based peer Hibbett to fuel its expansion earlier this year.

The States accounted for the biggest chunk of first half revenue, ahead of the UK, and it has added 100 US stores in the space of a year.

Plus, there is the strengthening pound, which could cost JD £20 million. Make sure to read Market Today's Dave Goodman below.

It's not all bad, however: the sportswear brand reported overall growth in sales and maintained guidance for the most part. But with shares dipping 6% at the open, investors are looking at the clouds rather than the sunshine beyond.

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

AO World is buying musicMagpie, which lets consumers trade in old electronics, CDs and DVDs, for just under £10 million.

Travel agency Saga delayed first-half results to explore partnerships. It is in talks with Ageas about a deal for its insurance arm.

Talking of travel, Keir Starmer is whizzing off to Brussels today to meet European Commission President Ursula von der Leyen, as he tries to revamp the post-Brexit relationship with Europe.

But he has a lot to contend with at home first. Bloomberg Opinion's Marcus Ashworth argues that, for all the worry over fleeing non-doms, Labour's priority must be to incentivise the workforce.

Iran's missile attack on Israel has spurred a swift promise of retaliation.
JD Vance tried to soften his hardline reputation in debate against Walz.
Nike seeks to wipe a troubled slate clean ahead of incoming CEO's arrival.

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

In its earnings today, JD Sports said it is suffering from the pound's strength — a reminder that a rising currency, while usually viewed as a sign of economic strength, is not good news for everyone.

It's traditionally seen as a problem for exporters, meaning it is a particular worry for JD now it does more and more business in the US. That was ramped up this year by JD spending $1.1 billion on Alabama-based retail chain Hibbett.

The firm said its guidance was based on exchange rates of $1.25 and 1.15 euros, while the current rates at the time of the statement were closer to $1.34 and 1.20 euros. The impact of the strength reduced profit before tax and adjusting items by £6 million in the first half, and at current rates will have a £20 million hit in the second.

For the real nerds, the precise numbers are pretty stark when you break them down. JD says every extra US cent on the rate has an impact worth £1.7 million on profit before tax and adjusting items and every one euro cent is worth £1 million.

— David Goodman

Check Bloomberg UK's Markets Today blog for updates all day.

Tesco's focus on competitive pricing to battle the discounters, as well as its online shopping and loyalty push, has so far been paying off. The supermarket grew market share to the highest in over two and a half years, according to Kantar data last month.

It reports first half numbers tomorrow. Let's see if every little (still) helps.

Which English rock band has agreed to sell the rights to its music catalogue, merchandise and spin-offs to Sony for about $400 million?

Clue: hits include Wish You Were Here and (ironically) Money.

[Yesterday's answer: The UK's two remaining blast furnaces (for now) are in Scunthorpe, after the last one at Port Talbot closed this week.]

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