Market Buzz
Sunday newspaper round-up: Brexit, Toxic debt, SpaceX
The EU's chief negotiator has warned Boris Johnson that he must keep his promises if he wants to avoid the double economic hit of a no-deal Brexit and the coronavirus pandemic. In an exclusive interview, Michel Barnier accuses the prime minister of backsliding on commitments made in the political declaration. Issuing an ultimatum, he warned that there would not be an "agreement at any cost". - Sunday Times.
Friday newspaper round-up: Manufacturers, car production, Monsoon Accessorize
Britain’s manufacturers are poised to make tens of thousands of workers redundant after a worse-than-expected slump in orders, prompted by the pandemic that has left many firms struggling to survive. A survey by the manufacturers’ lobby group, Make UK, found that 25% of companies are already drawing up plans to cut jobs in the next six months. A further 45% say they are considering redundancies. – Guardian.
Thursday newspaper round-up: Galliard Homes, 'lockdown generation', hospitality sector
A property development company behind some of London’s most prestigious developments has told staff they could be asked to return to the office, even if they can do their job from home. Galliard Homes, which describes itself as London’s leading property developer, sent a memo to staff outlining the conditions under which it intends to resume operations as lockdown restrictions begin to ease. – Guardian.
Wednesday newspaper round-up: Retailers, Boohoo, British industry
Many retailers given the go-ahead to reopen next month will face a “fight for survival” in the coming months, as they try to restore their fortunes with tough new physical distancing and health and safety requirements, a senior retail executive has warned. Clothes shops, toy stores, electronics retailers and booksellers were on Monday given the green light to get back to business on 15 June. The date was two weeks later than most retailers had anticipated. Other high street businesses allowed to reopen on that date include indoor markets, shoe shops, tailors, auction houses and photography studios.
Tuesday newspaper round-up: British Airways, office space, Bombardier
The Unite union has claimed that British Airways plans to fire the vast majority of its workforce and rehire them on reduced pay and worse terms. BA informed unions last month that it was holding a consultation on as many as 12,000 job cuts. The notice under section 188 of the Trade Union Act means workers could be made redundant as soon as 15 June. – Guardian.
Sunday newspaper round-up: Hong Kong, Air bridges, Vaccine
Hong Kong democracy activists yesterday made frantic plans to cover their tracks amid fears of a brutal crackdown by the world’s most powerful surveillance state. Many deleted politically sensitive online postings, wiped social media accounts and turned to proxy servers that mask their identities after China announced sweeping national security laws for the territory. - Sunday Times.
Friday newspaper round-up: Hospitality sector, holiday firms, Lloyds
More than 30,000 pubs, bars and restaurants may remain permanently closed because the coronavirus shutdown has sent a wrecking ball through the UK’s hospitality trade. The grim prediction follows a week in which the Casual Dining Group, which owns the Bella Italia and Café Rouge restaurant chains, warned it was headed into administration – casting doubt over the future of its 250 restaurants. – Guardian.
Thursday newspaper round-up: Top earners, UK holidays, care homes
The highest paid 1% of British earners received nearly 17% of all the country’s income ahead of the Covid-19 crisis, according to a study making allowance for the concentration of taxable capital gains among the better off. Analysis by Warwick University, the London School of Economics and the Resolution Foundation of previously confidential HMRC data showed that the top 1% had a growing and much bigger slice of income than previously thought. - Guardian.
Wednesday newspaper round-up: Recession, tracing app, Intu Metrocentre
The chancellor, Rishi Sunak, has warned that Britain is facing a “severe recession, the likes of which we haven’t seen” and lasting economic damage from the coronavirus pandemic. In a downbeat assessment of the country’s economic prospects after a sharp rise in unemployment benefit claims, the chancellor warned a Lords committee it was “not obvious there will be an immediate bounceback” from recession. – Guardian.
Tuesday newspaper round-up: Wage subsidies, youth unemployment, OVO
Government wage subsidies for disabled and vulnerable workers could be drastically scaled back from August under Treasury plans to wind down its Covid-19 furlough scheme, employers’ groups have warned. Charities and social enterprise employers have been told by the government that its plan to bring the coronavirus job retention scheme to an eventual close this autumn does not currently include an exemption for vulnerable workers. – Guardian.
Monday newspaper round-up: Heathrow boss, entry-level jobs, dividends
The boss of Heathrow has urged the government to develop plans to restart travel between “low-risk countries” as global lockdown measures are eased. John Holland-Kaye, chief executive of the busiest airport in Britain, said the UK should adopt a risk-based approach to flights and warned that the UK economy will suffer if blanket travel restrictions continue. He also backed the idea of “immunity passports” to allow people who have already had Covid-19 to travel more freely.
Sunday newspaper round-up: Sovereign wealth fund, Easyjet, Heathrow
The Treasury is weighing plans for a “bad bank” to hold stakes in bailed-out businesses amid fears that nationally significant firms could fail in the Covid-19 crisis. The plans, which are at an early stage, range from creating an “asset resolution” scheme to recoup value for taxpayers, to a sovereign wealth fund. The plans echo the Labour government’s establishment of a bad bank during the 2008 financial crisis, when UK Financial Investments (UKFI) was set up to manage the mortgage books of Northern Rock and Bradford & Bingley after they collapsed.
Friday newspaper round-up: TfL, Nissan, BT Openreach
The government has said London transport fares will have to rise, as it reached an agreement over a £1. 6bn bailout with Transport for London. TfL will receive £1. 1bn as a cash grant plus another £505m in loans, according to reports on Thursday night. In return, TfL will carry out a review of its finances and have government officials on its board. – Guardian.
Thursday newspaper round-up: Govt taskforces, property sales, Tesco
The government has unveiled five new taskforces devoted to vulnerable sectors of the economy, intended to liaise with unions and others to see how soon each sector can safely resume work with coronavirus distancing measures. The five areas covered are all ones that have to wait before even limited reopening efforts can begin, in most cases until at least July. They are pubs and restaurants; non-essential shops; recreation and leisure; places of worship; and international air travel.
Wednesday newspaper round-up: Retailers, Carnival, housing market
Britain’s retailers have warned of the mounting risk of shop closures and job losses across the country after consumer spending plunged to record lows in April since comparable records began as the coronavirus lockdown took hold. Reflecting the impact of lockdown measures across the country, the British Retail Consortium said sales fell 19. 1% last month compared with April last year, in the steepest drop since the trade body for high street and online shops started recording sales in January 1995.
Tuesday newspaper round-up: Gig economy workers, furlough scheme, Bain Capital
Workers in the gig economy are being exposed to coronavirus infection because the government is failing to enforce EU safety at work regulations, a union has said. The Independent Workers’ Union of Great Britain (IWGB) has written to the Department for Work and Pensions threatening legal action if the duty of care is not extended to include those who are not employees. – Guardian.
Monday newspaper round-up: Furlough scheme, Virgin Money, Insurers
A healthcare firm which employs the prominent Conservative politician Owen Paterson as a paid consultant has been awarded a £133m contract without any other firms being given the opportunity to bid for the work. The Department of Health and Social Care (DHSC) has given Randox the contract to produce testing kits to help respond to the coronavirus pandemic. It was awarded “without prior publication of a call for competition”, according to details of the contract seen by the Guardian.
Sunday newspaper round-up: Furloughed staff, Economy, Coronavirus crisis
Furloughed staff only able to return to work on a part-time basis could have their wages “topped up” by the government, as part of a gradual redaction of the job retention scheme. Under plans being considered in the Treasury, firms would be encouraged to bring furloughed staff back to work gradually to maintain social distancing and to ease the burden on businesses as they begin to rebuild their operations. - Sunday Times.
Thursday newspaper round-up: Debenhams, business leaders, Ocado, Flybe
More than a month into coronavirus lockdown measures large parts of the British economy are now on life support. Nearly one in four UK workers have been furloughed in the past fortnight, with their wages subsidised by the state in an attempt to stop the unfolding economic crisis – already expected to be the deepest recession since 1709 – from getting even worse. - Guardian.
Wednesday newspaper round-up: Youth unemployment, Disney, Ocado, Deloitte
The majority of Britain’s business owners will need less than a week to restart operations after any loosening of the government lockdown, according to a weekly survey by the British Chambers of Commerce. The latest BCC tracker poll found that almost two-thirds of respondents employing fewer than 10 people said they would need fewer than seven days to get ready. About half of respondents that employ more than 50 people could be open within seven days. – Guardian.