Good morning. Today we're talking about a UK tech darling going into administration, tech giant Nvidia’s impressive quarter and falling UK retail sales.

Big Stories

UK tech darling goes bust

Soaring high in 2021 with a valuation over £5bn, British online car retailer Cazoo has come crashing down, entering administration. This follows significant restructuring efforts, including hundreds of job cuts. Cazoo's initial success stemmed from its online car buying platform launched in 2018. The pandemic further bolstered its popularity as restrictions pushed car purchases online. Cazoo heavily invested in marketing, sponsoring major sporting events to capture market share. But despite selling 160,000 vehicles, rising inflation and squeezed consumer spending hampered their ability to raise funds. This led to abandoning European ventures, significant job cuts and a £700m loss in 2022. Now in administration, Cazoo's remaining assets, including the online marketplace, are up for sale.

AI boom fuels Nvidia

Shares in US tech firm Nvidia hit a record high after a blowout first quarter performance. Revenue jumped 262% year-over-year to $26bn, fuelled by surging demand for their AI chips used in data centres. This resulted in a 628% increase in profits. CEO Jensen Huang declared “the next industrial revolution has begun,” as Nvidia predicted $28bn in sales this quarter - $2bn more than analyst expectations. The optimistic outlook further bolstered confidence in the company - whose market value sits at $2tr - and the AI market's continued growth.

Rain washes retail sales

UK retail sales fell 2.3% in April, far worse than the 0.4% decline predicted. Wet weather - rainfall was 155% of its seasonal average - kept shoppers indoors, especially impacting clothing, sports and furniture stores. This highlights a major challenge for retail data – its sensitivity to weather. Economists struggle to predict the impact, leading to significant forecast misses. While online sales rose slightly, the overall picture remains gloomy due to the weather. However analysts believe this is a temporary dip, not a sign of a broader economic downturn.

Elsewhere...

Labour support: 120 business leaders have signed a letter endorsing the Labour Party’s economic plans ahead of the 4 July general election saying it is “time for a change”.

Cooling prices: UK inflation fell to 2.3% - just above the target of 2% - the lowest level in almost three years.

Pet peeve: The UK competition regulator has launched a formal investigation into the £2bn veterinary market, over concerns that pet owners could be overpaying.

In the red: Getir, the grocery delivery app which this month confirmed plans to exit the UK, has an outstanding debt to Tottenham Hotspur Football Club running to millions of pounds.

Dialled in: BT has significantly delayed plans to force customers to switch from physical copper-based landlines to internet-based services following concerns from vulnerable people.

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Number of the Day

£1 billion

How much Taylor Swift's Eras Tour will boost UK spending by this year, according to Barclays, with more than a million fans expected to see the pop star perform live.

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