MFI, the iconic furniture brand that once dominated Britain’s retail parks before the rise of Ikea, is poised to return to the UK homewares market in the first half of next year.

The brand, which collapsed in 2008 after more than 40 years of trading, will be relaunched by Victorian Plumbing, the online bathroom retailer that acquired MFI’s brand and domain name last year.

Victorian Plumbing has said that MFI’s product range fits well with its existing customer base and plans to invest £3 million this year in people and property as part of the brand’s revival.

This move aims to carve a significant slice of the estimated £20 billion UK homewares market.

A storied past from war surplus to retail giant

MFI’s origins date back to 1964 when it was founded as Mullard Furniture Industries by Noel Lister and Donald Searle, who initially traded in war surplus goods.

The brand was named after Searle’s wife’s maiden name.

MFI quickly grew, floating on the stock market in 1971 as MFI Warehouses. In 1985, the company merged with supermarket chain Asda, creating Asda-MFI.

By the late 1980s, MFI had become a household name across Britain. It was subject to one of the largest management buyouts in the country’s history in 1987, led by former police officer Derek Hunt.

At its peak, the retailer operated over 200 stores nationwide and supplied more than 50 million items annually.

The brand’s popularity was such that it was once claimed one in three Sunday lunches in the UK were prepared in a kitchen fitted by MFI, and 60% of British children were conceived in bedrooms furnished by the company.

How IKEA’s arrival in the UK led to MFI’s decline

MFI’s decline began with the arrival of Ikea in the UK in 1987, which ushered in new competition and fresh retail dynamics.

Alongside rivals like B&Q and Argos, MFI struggled to keep pace with changing consumer expectations and retail trends.

The financial crisis of 2008 delivered a final blow, pushing MFI into administration and forcing the closure of all 111 stores, resulting in the loss of 1,200 jobs.

After its collapse, the MFI brand was bought by Victoria Plumb, which attempted to revive it as an online-only retailer in 2011.

However, this effort lasted only until 2015 when the business ceased trading again.

Victorian Plumbing plans strategic relaunch

In 2024, Victorian Plumbing acquired Victoria Plum, the successor of Victoria Plumb, including the MFI brand, in a deal valued at £22.5 million.

The company has since reported a 6% year-on-year revenue increase, reaching £152.7 million in the first half of the financial year, reflecting strong growth and market confidence.

Mark Radcliffe, Founder and CEO of Victorian Plumbing, expressed enthusiasm for the MFI revival.

He said the relaunch would enable the company to tap into a broader section of the UK homewares market, leveraging decades of e-commerce expertise and proprietary technology alongside the trusted MFI name.

“We have built a business with solid financial foundations that invests in the future and is committed to delivering long-term value to shareholders,” Radcliffe added.

Preparing for growth in a competitive market

The company revealed that it has made significant investments in its new purpose-built warehouse and expanded its product range beyond bathrooms into other home areas.

This preparation has allowed Victorian Plumbing to improve its customer proposition and take market share despite challenging trading conditions.

The return of MFI comes at a time when British consumers continue to show strong interest in home improvement and furnishings, presenting a timely opportunity for the revived brand.

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Walmart customers could soon see higher prices on store shelves, as the retail giant grapples with rising costs from new and ongoing tariffs.

The company announced Thursday that it will raise prices on some items this month and into early summer, as tariff-related expenses begin to ripple through its supply chain.

“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” Walmart Chief Financial Officer John David Rainey said in an interview. 

He said the retail environment remains dynamic, and that while sales climbed in the latest quarter, the broader consumer impact of tariffs is only beginning to show.

The company’s share price fell by almost 4% on Thursday following the developments.

Walmart earnings: sales growth seen despite inflation worries

Walmart reported a 4.5% increase in US comparable sales for the quarter, surpassing Wall Street expectations.

The growth includes both in-store and digital channels, with the company’s e-commerce business posting a 22% rise globally.

Sales have continued to gain momentum, even as inflationary concerns weigh on consumer sentiment.

This performance comes amid a volatile macroeconomic backdrop.

In March and April, markets fluctuated sharply, and household confidence dipped.

Yet Walmart benefited from continued demand for essentials, particularly groceries and household items, with more affluent households also turning to the retailer for value offerings.

“Our customers are still cautious,” said Rainey, noting that inflation in categories like child care and groceries remains a key concern for shoppers.

Tariffs force price increases, but Walmart holds firm on essentials

Although the US recently lowered tariffs on Chinese imports from 145% to 30%, the effect on retail pricing remains significant.

“Even at a reduced rate, the 30% tariff creates meaningful price increases,” Rainey said.

Walmart has already passed some of these costs on to customers.

The price of bananas, a staple item, has risen from 50 cents to 54 cents per pound.

Other imported goods such as avocados, coffee, and fresh flowers are also under pressure due to food tariffs from countries including Costa Rica, Peru, and Colombia.

Still, Walmart is attempting to cushion the blow.

Chief Executive Doug McMillon said the company will do its best to avoid raising prices on food and consumables, even if general merchandise prices edge up.

“We want to keep our food and consumables prices as low as we can,” he said, noting efforts to limit food waste and manage supplier costs.

Despite the rising input costs, Walmart left its full-year profit and sales forecast unchanged, reflecting confidence in its ability to navigate the environment.

McMillon added that the company may absorb some costs in the short term to stay competitive.

Expect big fluctuations in quarterly margin and earnings: CFO to investors

The retail giant, however, is cautioning investors to expect significant fluctuations in its profit margins and earnings from quarter to quarter, as it contends with sharp and unpredictable changes in inventory costs.

On a call with analysts, Rainey said tariff-related cost increases may lead to higher prices on goods, though any eventual cost declines could force Walmart to apply markdowns to clear excess inventory.

“The magnitude of these swings, both positive and negative, given the level of additional costs that could be applied to the inventory that we’re purchasing right now, are unprecedented in our business,” Rainey says. 

He urged investors to assess the company’s performance by looking at results across the next few quarters as a whole, rather than focusing on short-term shifts.

Rainey added that Walmart is preparing for multiple outcomes as global trade negotiations evolve.

The company believes the most probable result is that bilateral agreements between the US and its trading partners will be reached, bringing tariff rates down from their current levels.

If that scenario plays out, Walmart expects to meet its full-year guidance for both sales and earnings.

However, Rainey warned that if the previously proposed, significantly higher tariffs by President Trump are reinstated, Walmart’s financial results could suffer a substantial blow.

Under that outcome, the retailer’s ability to grow profits this year would be at risk, he said.

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Thursday saw dramatic variations in the parallel exchange rate of the US dollar in Bolivia, with the informal currency market starting to feel the effects of growing cryptocurrency adoption, especially Tether (USDT).

According to Dolarboliviahoy, which keeps a track of the local exchange rate, the dollar started the day at Bs18.80, before falling to Bs17.80 by around 9:30 a.m. in a highly volatile market.

This movement seems to be strongly related to a higher demand for digital dollars, according to El Deber, a Bolivian media outlet.

As the supply of genuine US dollars declines, Bolivians are turning to stablecoins, notably USDT, to access and exchange dollar-denominated value.

Economists feel that this tilt is critical to enhancing the physical dollar’s street value.

Digital currency fills the dollar shortage

According to economist Darío Monasterio, the rise in the parallel exchange rate is mostly due to the increased use of USDT, which replicates the value of the US dollar and serves as a hedge against local currency devaluation.

He pointed out that the digital dollar is gaining popularity because it avoids the scarcity of cash on the streets.

“There is clearly a growing demand for this digital dollar, and that’s also pulling the price of the physical parallel dollar up,” says Monasterio.

“People aren’t buying cash dollars because they’re too expensive, so they’re opting for USDT, which now directly competes with the physical dollar in the informal market”, he added.

USDT, a stablecoin pegged to the US dollar, has become a go-to resource for Bolivians looking to maintain purchasing power in a tighter economic market.

As these transactions expand, they become less peripheral to exchange rate dynamics and increasingly shape them.

Algorithmic pricing driving volatility

In Bolivia, the parallel dollar market has also become more volatile as tradable algorithms for USDT on decentralised exchanges drive the price behaviour of this US dollar-pegged coin.

“We know that algorithms raise the price automatically when demand jumps, and this ripple effect is rapidly recognised by local traders and currency exchange houses”, explained Monasterio.

“On these platforms, prices change automatically, since the algorithms recognise the change in demand or supply instantly. Those movements are observed by traders and those who help make capital available, and will price accordingly,” he said.

The algorithmic structure of the digital dollar complicates an already unregulated market, increasing both volatility and susceptibility to user behavior.

Political uncertainty adds to market pressures

Monasterio cited cryptocurrency adoption as the main fundamental driver, but also pointed to political factors putting pressure on the exchange rate.

The recent rise in the dollar, which surpassed Bs 15 in parallel, was attributed to economic activities by institutions, such as YPFB’s use of cryptocurrency, and political events, such as the breakdown of the opposition group.

The risk premium in the market is due to uncertainty surrounding the electoral lists and, more broadly, the governance issues.

He said in the El Deber report: “That, in turn, makes people go towards more stable assets such as USDT, and this is how it makes a snowball effect”.

These moments of political crisis magnify the sense that Bolivia’s economic model may not be sustainable in the long term and push residents to flock to assets they think are sturdier.

USDT’s increasing role in the informal economy

For the first time, the parallel dollar has surpassed the Bs 18 level, a psychological and economic milestone not seen since a brief spike in August 2024.

The USDT rise is increasingly viewed as part of a larger response to macroeconomic volatility and societal distrust of the Bolivian currency.

El Deber emphasised that Bolivians are adopting USDT not only to navigate a dwindling supply of physical dollars, but also to protect their money from devaluation.

The stablecoin is becoming a popular vehicle for dollarisation, particularly among individuals outside the traditional financial system.

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Japan witnessed record foreign inflows into its equities and long-term bonds in April, as global investors reacted to US President Donald Trump’s aggressive tariff announcements by reallocating capital away from American assets.

Data from Japan’s finance ministry showed net inflows of 8.21 trillion yen ($56.6 billion), the highest for any month since the government began tracking the data in 1996, according to Morningstar.

The surge in foreign interest was driven by heightened concerns over US policy stability and asset performance, pushing institutional investors to diversify their holdings.

“Trump tariff shocks likely changed global investors’ outlook on the US economy and asset performance, which likely led to diversification away from the US to other major markets including Japan,” said Yujiro Goto, Nomura’s head of FX strategy in Japan in a report by CNBC.

US tariffs triggered dramatic asset reallocation

Much of the inflows occurred in the immediate aftermath of Trump’s announcement of “reciprocal” tariffs in early April.

The US 10-year Treasury yield jumped 30 basis points from April 3 to 9, while Japan’s 10-year yield dropped 21 basis points during roughly the same period, reflecting a flight to safety.

While global equities initially slumped, Japan’s Nikkei 225 managed to end the month over 1% higher.

In contrast, the S&P 500 slipped nearly 1%. Analysts attributed this divergence to Japan’s haven status and institutional buying.

Pension funds, reserve managers, life insurers, and other asset managers were key drivers of the inflows, rather than retail investors, according to Nomura.

“It was quite an exceptional month, when you consider everything that has happened in the global macro economic environment,” said Kei Okamura, Neuberger Berman’s SVP and Japanese equities portfolio manager. 

“That obviously had an impact in the way global investors were thinking about the asset allocation towards the U.S … they needed to diversify,” he told CNBC in a phone call.

Analysts say demand for Japanese assets to remain strong despite US’ trade deals

The recent shift in the US administration’s trade posture — including a breakthrough in negotiations with China and bilateral agreements with allies such as the UK — may slow the pace of flows into Japan.

But many analysts still expect strong demand for Japanese assets to persist.

Vasu Menon, managing director of the investment strategy team at OCBC, said that Trump’s unpredictable policy moves and frequent reversals have eroded global confidence in US assets.

“Given such a backdrop, demand for Japanese assets may remain healthy even if it is not as a strong as the April level,” he said.

Japan’s ongoing talks with the US with regards to tariffs have also raised some optimism over cutting the 24% “reciprocal” tariffs on Japan, Menon said.

Reforms at Tokyo Stock Exchange, currency outlook support flows

Beyond geopolitics, structural factors are also making Japanese assets more attractive.

Reforms at the Tokyo Stock Exchange, launched in March 2023, have focused on improving corporate governance.

Companies trading below a price-to-book ratio of one must now either comply with reforms or explain why they are not doing so.

This push has spurred a wave of share buybacks, boosting earnings per share and supporting valuations.

Asset Management One International said the initiative had enhanced the appeal of Japanese equities for both domestic and foreign investors.

Moreover, with the Japanese economy showing signs of recovery and the yen potentially set to strengthen if the dollar weakens again, many asset managers see further room for inflows.

“So this trend has legs,” said Okamura. “Japan will likely continue to see good flows.”

Limited upside seen in short-term bonds

While long-term bonds and equities drew significant foreign interest, short-term Japanese Treasury bills are unlikely to attract similar inflows.

The arbitrage opportunities that existed when the Bank of Japan maintained negative interest rates have largely disappeared, said Morningstar’s Michael Makdad.

Still, Japanese equities in particular are benefiting from a confluence of favourable conditions — trade diversification, domestic reforms, and relative economic stability — making the country a compelling choice for global capital.

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The AUD/USD exchange rate remains in a tight range ahead of the closely-watched Reserve Bank of Australia (RBA) interest rate decision. It was trading at 0.6423 on Friday, a level it has remained at in the past few weeks. 

RBA interest rate decision

The AUD/USD pair changed a little after the Australian Bureau of Statistics (ABS) published encouraging job numbers. The economy created 89,000 jobs in April, a big increase from the median estimate of 20.9k and the previous month’s 36.4k. 

More data showed that the unemployment rate remained unchanged at 4.1%, while the participation rate rose from 66.8% to 67.1% this month. This increase was much higher than the median estimate of 66.8%.

These numbers mean that the economy is doing well even as geopolitical risks remain. Still, analysts believe that the Reserve Bank of Australia (RBA) will deliver another interest rate cut next week. Economists polled by Reuters also expect another two rate cuts this year. 

The most dovish analysts are from NAB Bank, who expect it to slash rates by 0.50%. In a statement to Reuters, the analysts said:

“Following tariff news at the start of April, we shifted our expectations. We’re expecting the cash rate to go to 3.35% now. That shift was really a rough lesson of a very changing, uncertain global environment where global growth was likely to slow.”

The RBA rate cut will be the second one in the current cycle. It slashed rates by 0.25% in February and maintained a neutral tone. 

The bank has been concerned about inflation, which has remained elevated above its 2% target for a while. The most recent data showed that the headline CPI remained at 2.4% in the last quarter. 

Federal Reserve cuts in question

The AUD/USD pair is also reacting to the recent truce between the United States and China. After a two-day meeting in Switzerland, the two countries reached a truce that led to a dramatic cut in interest rates. 

The truce led analysts to lower their recession expectations, citing chances of improved trade dynamics.

However, what the Federal Reserve will do when it meets in June is unclear. Analysts expect that the bank will leave interest rates unchanged in this meeting and maintain its wait-and-see policy.

Polymarket traders place a 88% chance that the bank will not cut rates in this meeting. Odds of not cutting in July and September are 71% and 54%. Traders also anticipate that the bank will cut rates two times this year.

AUD/USD technical analysis

The daily chart shows that the AUD/USD exchange rate bottomed at 0.5910 in April and then bounced back to the current 0.6430. It has settled at the 50% Fibonacci Retracement level.

The pair has moved above the 50-day Exponential Moving Average (EMA), a highly bullish sign. It has also formed an ascending channel shown in black. 

The AUD to USD pair has also formed an inverse head and shoulders pattern. Therefore, the most likely scenario is that it will cause a bullish breakout in the coming weeks. If this happens, the next point to watch will be the psychological point at 0.6600. A move below the 50-day moving average at 0.6357 will invalidate the bullish outlook.

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