Car showrooms are open again: some dealerships, with a hint of forgivable hyperbole, report a surge of pent-up demand. And after building only 197 new cars this April, compared with 71,000 in April 2019, car factories are returning to production — even if under new safety rules that will slash productivity for the duration and
Should the government be prepared to take equity stakes in major companies that will struggle to survive the current crisis? That’s a question already on the table in relation to Jaguar Land Rover and Tata Steel, and likely to arise for British Airways, aero engine maker Rolls-Royce and others. We’re told Chancellor Rishi Sunak is
The Royal Mail worker who rang my bell to deliver an Amazon package on Friday was wearing a glittery ball gown because she and her colleagues were fundraising for local hospitals: ‘Two thousand quid so far,’ she said cheerily as she accepted my donation and thanks. But if I had asked her what she thought
This month’s most significant corporate deal attracted less attention than it might have done in normal times, crowded out by grim news elsewhere. It is the proposed £31 billion merger of O2 and Virgin Media to create a telecoms giant with 46 million customers. Following BT’s 2016 acquisition of the mobile operator EE, further ‘convergence’
British Airways warns of 12,000 redundancies. Ryanair announces 3,000 job losses as ‘a minimum to survive the next 12 months’; Virgin Atlantic adds 3,000 more. The aero engine makers Rolls-Royce and GE talk of more than 20,000 job losses between them. Of all the sectors hard hit by pandemic, aviation is one whose prospects look
Was the Chancellor wrong to guarantee only 80 per cent, rather than 100, of ‘coronavirus business interruption loans’ to keep small- to medium-sized companies afloat? Rishi Sunak’s announcement this week of fully guaranteed micro-loans for the smallest companies seeking to borrow up to £50,000 was reported as a partial climbdown in the face of pressure
Keep your eye on GlaxoSmithKline. The UK-based multinational drug-maker represents the future, both as a mass-producer of the vaccines that we pray will finally defeat Covid-19 and as a beacon of the way shareholder capitalism will re-position itself in the post-pandemic era. GSK last week announced a collaboration with its French rival Sanofi to create
When I wrote last week about business-to-business pain-sharing for survival, I was naturally thinking first about UK companies. I say ‘naturally’ because in every aspect of this crisis, national interest has, as it were, trumped transnational co-operation. That’s particularly the case where medical supplies are concerned — as in the US President’s attempt to stop
The phrase ‘sharing economy’ was coined a decade or so ago to describe collaborative new business models made possible by the internet, from Airbnb and Uber to crowdfunding, peer-to-peer lending and skill bartering sites. It was about ways of monetising assets, circulating capital and earning casual livings that boosted economic activity after the ‘great recession’
The suspension of the residential property market is disheartening for those who were hoping to buy a first flat or new-build house this spring. But spare a thought also for estate agents, who are usually well back in the queue for public sympathy but are nevertheless a familiar part of our high-street fabric, their windows
The CBI’s guidelines on ‘best practice for business’ during the pandemic tell the 1,500 larger companies that make up the lobby group’s core membership to prioritise employee welfare while also asking ‘how can we help’ government and society to manage the crisis. So far so good. But the notes don’t say ‘Consider a temporary cut
The world needs airlines — and, barring Armageddon, will still have some when this crisis is over. It will also still have aircraft, pilots and airports. The aviation industry, accustomed to volatility as it is, should be well capable of restructuring and regrowing in response to renewed demand, even if bankruptcies are left behind. I
‘It’s a ghost town,’ said the officer manning the body scanner at Manchester airport — Manchester, New Hampshire, that is, a city of some 112,000 citizens. I don’t know how many of them would normally be passing through its departure hall on a Sunday morning, but today there are no more than 50, plus me
Hit-and-miss, heavy-handed, but a necessary use of justice to deter repetition. That was my summing-up, last year, of the Serious Fraud Office’s probe into the Libor and Euribor scandal, in which just nine low-ranking traders from four banks were convicted, despite evidence that rate-fixing malpractice had been endemic throughout the money markets for years. In
If anything, stock markets have been slow to respond to the spreading coronavirus outbreak. Stories of Chinese supply interruptions, from JCB digger components to plastic toys, have been circulating since mid-February, while hedge funds have been hard at work short-selling cruise-operator shares: Royal Caribbean and Carnival are both down 30 per cent. Now airlines have
After a dull interlude, the big banks in their annual results season look a bit more interesting again. First to report was Barclays, where pre-tax profits were up 25 per cent to £4.4 billion but attention focused, yet again, on Chief Executive Jes Staley, whose name rarely appears in print without ‘accident-prone’ attached to it.
It’s the way the world’s going, but still it looks quite impressive that the number of women directors of FTSE100 companies has risen from 135 in 2011 (when Vince Cable, as Business Secretary, began agitating on the subject) to 349 today — representing a third of all blue-chip boardroom seats. It’s not long since that
So farewell Bernie Ebbers, former chief executive of WorldCom, the long–distance phone operator that became America’s biggest-ever bankruptcy case in 2002. Ebbers has died aged 78, having been released on health grounds in December from a 25-year jail sentence for his part in an accounting fraud that concealed the perilous state of WorldCom’s finances, misleading
I first wrote about the risks and rumours around Huawei — and made bad jokes about its name — in September 2012. That was seven years after BT started ordering cheap equipment from the Chinese telecoms giant without, apparently, delving into stories about its military-connected origins. But 2012 was the year when Huawei was reported
Seven years ago, when HS2 was still officially costed at £33 billion, I wrote that I was looking forward to using my pensioner’s rail pass on it ‘early in the reign of hugely popular, three-times-married King Harry, in whose favour his elder brother will abdicate after his 50th birthday’. Now HS2’s upper cost estimate has
