UK retail

All,

Ted Baker’s numbers were thought the end of August. While that is 4 weeks further than the last numbers we have from New Look, NL management said on the call that August was going better for them.

So we are not inclined to project Ted Baker’s fortunes on wider UK retail. Rather the company’s own turmoils around its founder seems to have compounded the weakness on the high street.

Also, at current yields we feel the weakness is largely priced in at Matalan - who remain our favourite long in UK retail.

Wolfgang