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Highlights
- UK Prime minister Boris Johnson has warned about shortages on shelves in the run-up to Christmas.
- Lack of staff and truck drivers is impacting supply chains across industries.
- The construction sector and manufacturers are the worst affected.
Following Brexit, the British economy has been in a period of transition according to the UK Prime Minister Boris Johnson. Due to the pandemic and other Brexit related issues, Johnson warned Britons that they can expect supply shortage and empty shelves in the run-up to Christmas. The Prime minister has stated in the Manchester Tory Party conference that the fuel crises is finally subsiding after witnessing days of long queues outside the dry filling stations.
However, he didn’t comment on whether the economy wide shortage due to staff deficit, mainly lack of lorry drivers, would be dealt with in time for the festive season. The supply chains across industries are being impacted by the shortage of truck drivers. The construction sector and manufacturers are the worst sufferers as their delivery schedules are very tight and they can’t afford long delays.
Johnson in an interview said that he was aware about the crises building up in the transportation industry. Nevertheless, he was adamant that he wouldn’t compromise to fill the void in the labour market by allowing the entry of more foreign workers into the UK. Meanwhile, Foreign Secretary Liz Truss said that the Prime ministers couldn’t be held responsible for the empty shelves as he can’t be blamed for what's in the shops.
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Let’s take a look at some of the stocks which have been impacted by this news and should be avoided in the short run.
BP plc (LON: BP)
London-headquartered BP plc is a global oil and gas company and holds a position among the world's seven oil and gas ‘supermajors’. Its current market capitalisation stands at £67,680.90 million, and it has given a return of 58.54% in 1 year. Its YTD returns stand at 33.44% with earnings per share of -1.00. The previous close price of BP plc’s shares was GBX 337.95 as on 1 October 2021.
Unilever plc (LON: ULVR)
London-headquartered Unilever plc is among the biggest manufacturing companies in the UK which supplies consumer goods including nutrition, hygiene and personal care products. Its current market capitalisation stands at £102.685.17 million, and it has given a return of -18.48% in 1 year. Its YTD returns stand at -10.12% with earnings per share of 2.13. The previous close price of Unilever plc’s shares was GBX 3,973.00 as on 1 October 2021.
ALSO READ: UK gas supply shortage: 2 FTSE stocks to explore
Tesco PLC (LON: TSCO)
Headquartered in Welwyn Garden City, Tesco PLC is a UK-based global retailer of groceries and general merchandise. Its current market capitalisation stands at £19,170.77 million, and it has given a return of 18.86% in 1 year. Its YTD returns stand at 7.87% with earnings per share of 0.64. The previous close price of Tesco PLC’s shares was GBX 249.20 as on 1 October 2021.
Keller Group plc (LON: KLR)
London-headquartered Keller Group plc is a leading UK-based geotechnical specialist contractor. Its current market capitalisation stands at £696.40 million, and it has given a return of 57.28% in 1 year. Its YTD returns stand at 36.10% with earnings per share of -0.21. The previous close price of Keller Group plc’s shares was GBX 963.00 as on 1 October 2021.
Severfield PLC (LON:SFR)
Headquartered in Thirsk, Severfield PLC is the largest structural steel specialist across the UK which serves a wide range of market sectors, from education to commercial offices. Its current market capitalisation stands at £231.83 million, and it has given a return of 33.81% in 1 year. Its YTD returns stand at 7.45% with earnings per share of 0.07. The previous close price of Severfield PLC’s shares was GBX 75.00 as on 1 October 2021.
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