Latest: Research group estimates UK growth picked up in last three months.
Summary: Shareholders vent feelings at M&S
Shareholder: M&S demeaned women with 'disgrace' of a Christmas advert
M&S refuses to meet with Living Wage campaigners
Shareholder dozes off, claims Daily Telegraph
Earlier:
ONS: Manufacturing output down 1.3% in May
Pound hit.
What the analysts say
4.48pm BST
Wall Street is losing ground too:
Stocks are at session lows and are continuing to fall. $SPX -0.79% $DJIA -0.8% $COMP -1.61% http://t.co/W4KEoXqkt8 pic.twitter.com/CI8DUtIbMT
4.46pm BST
Chris Beauchamp of IG points out that a profit warning from Air France helped to push markets down today, as investors wait for mining giant Alcoas results tonight.
He writes:
The FTSE is busily confounding bulls and bears alike, swinging higher one week and then sharply lower the next, as the post-2009 trend fizzles out.
With the long weeks of summer stretching out before us, the grim reality is that such trading will probably be the norm until September when normal service resumes. Airline stocks remain out of favour due to the Air France KLM warning this morning, as IAG drops to levels not seen since November, while Shire slumped despite news that AbbVie had raised its bid for the firm by 11% from the previous rebuffed offer.
3.44pm BST
It's been a poor day in the stock markets, with the main European indices all falling today as investors get jittery.
The FTSE 100 has shed 67 points to 6753, a drop of 1%, and it's a similar picture in German and France.
The bar has been raised and expectations for earnings are higher than they were last quarter.
If they don't come in as expected, stocks could pull back."
3.24pm BST
Mystery solved:
SLIPPER UPDATE. This is the best selling men's slipper in Britain. 70,000 of them sold last year. http://t.co/LOiECuxmu9
3.21pm BST
0.9% July 2014 GDP estimates (NIESR) http://t.co/a3BLM3dg4c #GBPUSD
3.13pm BST
So, there we have it -- two quite conflicting views of the UK economy.
The Office for National Statistics reckons that manufacturing output suffered its biggest fall since the start of 2013, shrinking by 1.3% in May (details start here)
So the NIESR have taken the view that there will be a UK production and manufacturing bounce back in June (and a services surge..) #GBP
@graemewearden on same day BCC survey suggests slowing as does index of production while this week german IOP also slowed -is this the peak?
3.03pm BST
Britain's recovery picked up pace in the last three months, according to the National Institute of Economic and Social Research.
NIESR's estimates that the UK economy grew by 0.9% in the second quarter of 2014 - a slight acceleration on the 0.8% recorded in the first three months of the year.
The month-on-month dip in the ONS latest production estimates is expected to weigh only marginally on the economys overall robust performance in 2014Q2.
Great UK number there .... NIESR estimates the Q2 output to have risen by 0.9% - so eq. of > 3.6% y/y
The NIESR response to today's poor UK production figures was to revise economic growth in the 3 months to May from 0.9% to 0.7% #GBP
2.50pm BST
Despite concerns over M&S's performance, Marc Bolland does still retain the support of most shareholders.
Reuters reports:
Bolland's re-election as a director of the company was backed by 96 percent of shareholders who voted at the meeting, according to indicative poll results.
2.31pm BST
To recap....
"We know we have to do more," he said. "We now have to deliver on the investment we've made."
Give M&S its due, both Robert Swannell and Marc Bolland stuck around long after the AGM finished to talk with shareholders. Unlike Tesco...
1.39pm BST
In other news, US pharmaceutical firm Abbvie has hiked its takeover offer for Britain's Shire again.
1.28pm BST
M&S has now rattled through the 24(!) resolutions on the agenda.
Shareholders have been dispatched to their free lunch, with chairman Swannell thanking them for keeping the company on its toes.
1.27pm BST
We had a brief outage there sorry.
The Times's Deirdre Hipwell has tweeted some highlights:
Quite a few shareholders seem unhappy about m&s heavy" discounting" which one said will ultimate be "a recipe for disaster"...
Robert Swannell saysm&s is business to be "proud of" and trusted...which is more important than quarter's tradin g...some sounds of derision
1.21pm BST
M&S is accused of being out of touch, by discouraging staff from joining a union.
Swannell says staff are free to do what they want, and insists that most employees are happy.
12.52pm BST
The waiting is over. John Farmer, a regular face at UK annual general meetings, has the microphone:
Farmer lays into M&S, asking:
12.45pm BST
Customers have to pay when they phone M&S's call-centre, another shareholder complains.
The spaghetti bolognese now contains too much chilli, and your energy providers are too slack at reading bills.
12.42pm BST
What impact did a technical problem in January, which prevented customers making orders, have on profits?
Robert Swannell claims he doesn't know what glitch this is -- and anyway, it can't be the shiny new website's fault as it didn't start until February.
12.36pm BST
Robert Swannell refuses to introduce living wage, or even hold a meeting with representatives to discuss it
12.36pm BST
A second questioner, from campaign group Citizens UK, also asks M&S to consider signing up to the Living Wage.
Chairman Robert Swannell repeats that "I can't make commitments that I cannot live up to."
12.31pm BST
Another shareholder, a former staffer, urges M&S to meet with the Living Wage Foundation so that it can sign up to the scheme.
Hundreds of employers have done the right thing and become an accredited living wage provider. It would be wonderful news to announce at next year's AGM, she says.
12.28pm BST
There are 3.2m people with diabetes in the UK, and many more who aren't diagnosed, says Mr Durham, another shareholder.
I know what you're saying, interrupts Robert Swannell, healthy food is important.
12.25pm BST
Now Mrs Ward asks whether M&S is closing unprofitable stores, or converting them into food-only outlets. If not, why not?
We consider this very carefully around the boardroom table, chairman Swannell replies. We don't have any genuinely unprofitable stores today, but we are looking to the future.
12.18pm BST
A shareholder asks about an incident last year when a Muslim member of staff declined to serve a customer trying to buy alcohol.
Swannell says M&S is "entirely respectful of everyone's particular taste.... It's a very rare event when we get it wrong."
12.16pm BST
A long question about how M&S needs to do more to cater for older shoppers (some with "wider waistlines") who want to look 'smart, chic, colourful". Apparently the current ranges are too dull and generally inappropriate.
12.16pm BST
Robert Swannell claims that he opens the newspaper and reads that executives he's never heard of are leaving M&S.
This M&S bingo is turning into "slag off the press and shoot the messenger". Perhaps they should focus on running the business instead?
12.13pm BST
Excellent question -- is the absence of a bonus for M&S's 80,000+ staff a "failure of leadership"?
Swannell says that, quite rightly, shareholders and commentators expect that bonuses are paid when outstanding performances are delivered. We didn't hit our targets, so bonuses weren't handed out.
12.09pm BST
Now a former staff member, Mr Brown, lays into Marc Bolland.
I've been coming here every year, he says, and every year I'm ultimately disappointed by M&S's performance, he says. Profits are down, and the share price is languishing where it was a decade ago.
Mr Brown is up now, a retired member of staff. Gets applause after saying that Bolland promises much, "but every year we are disappointed"
12.05pm BST
Another shareholder, Mrs Abrahamson, wins applause for criticising the availability of M&S ranges.
Why isn't the Twiggy range available on the high street, and why are certain larger lingerie products only available online?
Outrage from Mrs Abrahamson: Why is Twiggy range only online?
RS: insists older ladies it is aimed at are "digitally savvy" or able to order in stores
12.03pm BST
Why do none of M&S's non-executive directors have any retailing or textile expertise?
Swannell concedes the point -- but we can't get 50 skills on the board unless we have 50 board members, he argues.
Next up why do the non-execs have no retail or textile expertise? RS insists it's "well balanced"
11.58am BST
Here's the M&S advert in question, in which Rosie Huntington-Whiteley loses most of her clothes.
11.56am BST
Our first shareholder says he has written to Swannell twice and not received the courtesy of a reply.
M&S is suffering falling profits again, and falling behind the likes of Next.
This must be the slowest turnaround of a ship in history.
shareholder says M&S xmas advert was demeaning to women. "It's a disgrace".
11.49am BST
Finally, onto questions.... and chairman Robert Swannell urges investors to be brief as there are a lot of questions to wade through....
11.47am BST
I fear the retail press pack are losing patience....
Another M&S stat - one in five British men wear M&S slippers. That one caused gasps in the room
BE is now dangling prospect of three dress lengths? Mini/midi/maxi?
just one each? RT @bbckamal: BREAKING FACT Belinda Earl, M&S style director: one in five men wear an M&S slipper #marksandspencer
11.45am BST
Now fashion director Belinda Earl is outlining the various efforts to kickstart M&S's clothing sales.
Apparently, 50% of menswear products have an 'innovative feature' such as special anti-crease technology.
11.37am BST
Oh, the perks of being a CEO....
Bolland: I am a lucky guy. I get beaten up in the media every now and then but I do get to try the new Christmas food early
11.35am BST
Bolland is hammering home that M&S is a decent citizen -- we work with children to clean beaches, and we've trained in-store staff to become Dementia Friends, he says.
11.34am BST
Joel Hills of ITV News reckons Bolland's statement is terribly familiar....
Marc Bolland is delivering almost precisely the same slide show presentation that he did in May after full year results.
11.33am BST
M&S has been under-investing for the last 20 years, Bolland claims.
If so, that's a damning verdict on Sir Stuart Rose's legacy (the previous CEO), and those who came before him....
11.31am BST
Marc Bolland is now explaining, at some length, how his team have been beavering away to improve the M&s infrastructure.
No danger of the audience wearing away the edges of their seats:
After IT systems, we are now on warehouses. One shareholder in front of me is already asleep. Seriously
11.30am BST
The new website's better! (even if sales have taken a nasty hit)
MB: says Amazon web platform was like driving a rental car
11.28am BST
MB bamboozling audience with promise that mens and womenswear depts will have "a scheme that is aligned".
11.27am BST
Bolland concedes that some M&S stores need improving -- analyst Louise Cooper doesn't argue:
Boland: "poor store environment" try Kings Road - horrendous.
11.25am BST
Our technology was a terrible state, Bolland says; "We had 1990s IT systems....".
Now we're running on an SAP system, he smiles. Not sure this is going to wow the small investors (unless they've also got shares in the German software giant)
11.24am BST
Marc Bolland looks terribly pleased to report that Marks & Spencer's best performing bakery is at its new store in Paris -- yes, Britain is selling baguettes to the French.
11.23am BST
Our retail correspondent Zoe Wood flags up that M&S shareholders are not happy about having to drudge to the home of football (they often flock the Royal Festival Hall on South Bank)
Oh dear M&S shareholders already grumpy about the hike up to Wembley with greeters getting an ear bashing.
Swannell: "Essence of M&s as business you can trust will never change". Falling profits not trust is the problem..
Swannell admits "more to do on product design and execution" on womenswear
Marc Bollands tells assembled pensioners the website is in its "running in" period
11.20am BST
Now CEO Marc Bolland is on his feet, saying that the performance over the last year was a "mixed bag".
Profits fell 4%, he reminds M&S shareholders.
11.16am BST
Chairman Robert Swannell insists that M&S's rebuilding job is near the end of the road:
"Our period of heavy lifting in making the required improvements to the infrastructure of M&S is coming to an end.... We are now set up for delivery."
11.12am BST
M&S"s website will deliver the results we need, Swannell insists, despite the impact on sales as it gets up to speed. (reminder, sales tumbled by 8% in the last quarter)
11.10am BST
Swannell flags up that no-one at M&S received a bonus in the last year because the firm missed its targets, and then elicits a round of applause for a handful of front-office staff.
11.09am BST
M&S Robert Swannell concede that the retailer's performance has been "mixed".
The food operation has been "outstanding", but the general merchandise arm, despite "outstanding improvements" in its product range, has failed to meet financial expectations.
11.05am BST
The Marks & Spencer AGM is underway.
Robert Swannell, chairman, begins by saying that few companies can boast "such an active and engaged shareholder base".
M&S AGM starts with chair Robert Swannell telling shareholders: "You keep us on our toes and have real passion and commitment for M&S"
10.54am BST
Marks & Spencer shareholders are gathering at Wembley for today's annual meeting.
Sunny day, but dark clouds hang over Wembley and M&S's AGM. Visual metaphor, innit pic.twitter.com/hwBoRBl8Vm
10.50am BST
Worth noting that Britain's manufacturing sector still hasn't clawed its way back to its pre-crisis peak; indeed, it's over 10% smaller than in 2008.
It's the same story for other G7 countries:
10.43am BST
Howard Archer of IHS Global Insight calls the data a "nasty jolt", that might make an interest rate rise this year less likely:
With Governor Mark Carney stressing that the strength of data will drive when the Bank of England will first edge up interest rates, the disappointing May industrial production data will likely be seen as supportive to the Bank holding off from raising interest rates until 2015.
However, it is still a close call as to when the Bank of England first moves on interest rates and there will undoubtedly be many swings in expectations over the coming weeks and months. At least we can be pretty sure that the Bank of England will sit tight on monetary policy at when the July MPC meeting ends on Thursday.
10.23am BST
EEF, the manufacturers organisation, says the drop in output in May shows the challenges that factories still face, including the weak state of the euro economy:.
Deputy chief economist, Neil Prothero, explains:
This brings to an end a very strong run of data and serves as a reminder that manufacturers continue to face a number of headwinds, not least subdued external demand across Europe, which continues to weigh on export prospects.
10.18am BST
Rob Wood of Berenberg bank simply doesn't believe that UK factories performed so poorly in May (see 9.43am onwards for the details)
The surprise drop in UK manufacturing output in May is unlikely to be a true reflection of what is happening in the sector.
Industrial production fell by 0.7% and manufacturing output declined by 1.3% in May, well below consensus expectations. That is utterly at odds with strong survey readings and the 1.8% rise in manufacturing employment over the past year. On these figures, manufacturing just gave up all its gains since January, which is unlikely to be a good description of what is really happening in the sector.
One has to wonder whether the bell is tolling for the UK's economic "goldilocks" period, and by extension for the pound's strength.
@graemewearden @BusinessDesk the market, in its infinite wisdom, has looked at PMI data & concluded "aberration" before going back to sleep
This is the first decline in 6 months for UK factory output and calls into question just how strong the balancing act of UK growth really is.
PMI survey data has continued to show strong growth in orders, employment and sentiment in recent months so to see such a decline is indeed puzzling.
Kiss goodbye to hopes the UK recovery will be smooth. pic.twitter.com/90vTC7lcKN
10.02am BST
Here's how the pound reacted, losing almost half a cent against the dollar at one stage.
9.57am BST
Andrew Sentance, a former policymaker at the Bank of England, reckons we shouldn't panic.
He points out that manufacturing output has still grown by 1.1% over the last three months, despite May's dip.
@notayesmansecon 3-month ave shows manuf output up 1.1pc on previous 3 months and 3.8pc up on year ago. Need to look through volatility.
9.54am BST
The pound has fallen by 0.3 of a cent against the US dollar, to $1.710, as traders calculate that the Bank of England is less likely to raise interest rates soon.
9.53am BST
Looking at the details of the factory output data (online here), it appears that most sectors of Britain's manufacturing base suffered a drop in output in May:
9.43am BST
Crumbs! UK manufacturing output has suffered its biggest decline in 16 months, suggesting that Britain's recovery may not be as secure as hoped.
Total factory production across the UK fell by 0.7% in May compared to April, dashing expectations of a 0.2% rise.
"basic metals & metal products; basic pharmaceutical products & pharmaceutical preparations; and computer, electronic & optical products."
Biggest fall in UK factory output for 16 months in May
Disappointing manufacturing and industrial production data - - Wow - that's a surprise #gbp
9.31am BST
Back to Marks & Spencer's results.... and Keith Bowman of Hargreaves Lansdown Stockbrokers reckons investors are still giving Marc Bolland the 'benefit of the doubt'.
The City is also encouraged to hear that M&S's Womenswear business was "in growth", and that M&S wants to become a "more profitable" business.
Against a backdrop of low expectation, M&S appears to have offered some hope. An increased focus on profit margin generates potential longer term optimism, with General Merchandise sales no worse than forecast. Key Womenswear sales have grown, while a recent improvement in online sales, despite previously flagged difficulties, provides some relief.
On the downside, General Merchandise sales are still in retreat, whilst like-for-like food sales are marginally below forecast. Furthermore, the groups international sales are not without difficultly given ongoing challenges in Ireland and shipment timing issues this time around to franchise partners in the Middle East.
9.25am BST
What would Thomas Piketty make of those surging Rolls-Royce sales, we wonder...
@graemewearden r > g... :-)?
9.18am BST
Torsten Müller-Ötvös, CEO of Rolls-Royce, declares:
This is an excellent half-year result and demonstrates the continued confidence that our customers have in our company and our fine cars.
The new Rolls-Royce Wraith has been a stunning success in the super-luxury segment, setting new modern style and technology leadership benchmarks.
8.56am BST
Breaking away from M&S to another famous brand....and sales of Rolls-Royce cars have jumped by a third in the last year.
Parent company BMW has reported that it shifted 1,968 Rolls-Royce cars in the first half of this year, up from 1,475 a year ago, and is on track for a record year.
Rolls-Royce continues to see strong customer demand for Wraith, significant orders for the recently announced Ghost Series II and good demand for the Phantom family of cars across the world. Strong sales performances were seen in Asia Pacific, the Middle East and Europe.
8.33am BST
#chortle
Despite having worn it, shame @marksandspencer can't just take back its website and ask for a replacement and/or a credit note.
8.33am BST
Another analyst, Richard Perks of Mintel, isn't convinced that M&S's troubles are simply down to a new website:
M&S website is a red herring. How can GM have done so badly in such a strong market?
Has M&S been switching space from furniture to clothing to make the clothing figures look better?
8.28am BST
Marc Bolland has insisted that he is "really committed" to what he is doing at M&S, on an early-morning call with reporters.
Bolland, who replaced Sir Stuart Rose in 2010, also said he was happy with the 'step by step' progress being achieved at the company.
8.10am BST
Marks & Spencer shares up 0.6% despite weak sales, perhaps confidence in turnaround and hope of website upgrade 'settling in'
8.08am BST
M&S shares have inched almost 1% higher in early trading:
Positive start for Marks & Spencer $MKS after quarterly results. Share price up a modest 0.7%. pic.twitter.com/03dBc1OnKC
8.05am BST
James McGregor, director of retail consultants, Retail Remedy, reckons M&S is running out of excuses:
"This is the last quarter that the bedding-in of the new website can be used as an excuse for the poor performance of clothing.
"Alongside clothing, the ongoing performance of food is starting to look tragicomic.
"M&S wants to be an international, multi-channel brand but will it ever achieve this while its identity problems continue?
7.57am BST
Josh Raymond, analyst at City Index, reckons today's results from M&S "could have been worse", but there are still "significant concerns" over Marc Bolland's leadership.
He's also concerned by the slump in online sales as M&S gets its new website in order, having spent £150m on it:
It remains to be seen whether the website impact is becoming a fundamental concern on sales or whether this is really just teething issues with its roll out, which the firm maintains will last approximately six months (having been rolled out in February).
7.49am BST
City traders reckon M&S's shares are going to pick up a little this morning:
7.48am BST
you have to question how much of a 'rush' the new .com site for #M&S for teething issues to impact -8.1% online sales? due diligence?
7.43am BST
Financial journalists are staggered that M&S could have suffered an 8% drop in online sales, at a time when retailers should be profiting from the e-commerce boom:
This M&S website "settling in" period - does anyone know another company that has had a "settling in" period that led to sharp sales falls?
I mean - how do you lose 8% of online sales? That comparison with Next is not going to look pretty at the AGM...#MarksAndSpencer
M&S Food sales strong (again) but M&http://t.co/k1YFGXqNOM sales slumped - company explains this is because M&S was "less promotional".
As previously indicated, we are now focussed on optimising the website commercially, with updates made on a regular basis.
We have recently seen a gradual improvement in sales performance, despite a lower level of promotional activity. We expect to return to growth ahead of our peak trading period.
7.34am BST
And here's the details of M&S's results:
7.26am BST
Here we go! Marks & Spencer has suffered another fall in general merchandise sales, as the travails with its new website continue to hit turnover.
Hours before its annual meeting, M&S has told the City that clothing, footwear and homeware sales slumped by 1.5% on a like-for-like basis in the last three months. That means they've been falling steadily for the last 3 years.
"We have seen a continued improvement in Clothing, although as anticipated the settling in of the new M&S.com site has had an impact on sales. We are pleased that the Womenswear business was in growth, driven by full price sales, in line with our increased focus on margin.
Our Food business had another great quarter, continuing to outperform the market, through our focus on differentiation through quality and innovation."
Despite some improvement in consumer confidence, market conditions remain challenging.
7.23am BST
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