FTSE flat amid mixed messages from retailers

Debenhams announced it expects its annual profits to jump 20% following a focus on margins rather than sales volumes. The retailer's stock was up 2.85% today to 66.85p. However, the rising price of cotton owing to the Pakistan floods, plus the VAT increase, could cause problems for budget retailers, according to Primark. In a trading statement released yesterday the firm said its like for like sales over the financial year to September are expected to grow by 6%, compared to the 8% growth seen in the first half of the year. Emerging market investment firm Ashmore Group is the large...