Continued policy of the latest economic and monetary news, as Whitbread announces thousands of task cuts at its Premier Inns, Beefeater and Fayre Brewers sites.
Typographical Error Alert: I just found out that I misspeled Simon Emeny’s call in this last post!Apologies, now corrected. Hoping to be banned
The heads of two of the UK’s largest pub chains have criticised the government’s plan to close them at 10 a. m. and inspire others to repaint from home.
Speaking on Sky News, Fullers CEO Simon Emeny said it was “completely unfair” to refer to the bar industry, as less than 5% of infections occurred there.
Emeny argues that the government deserves to inspire “responsible socialization” in pubs, than forcing consumers to socialize on the street or in other people’s homes.
Sales in the north-east of England have fallen by about 50% in the last 4 days since the arrival of one last time at 10 pm, Emeny suggests.
This would be “absolutely paralyzing” for the industry and a massive blow to customer confidence.
Emeny adds that he is more involved in losing jobs and livelihoods, as well as in the intellectual aptitude of his employees, than in losing sales.
I think it will be devastating for the industry, and it will be devastating for so many other people who will be left adrift, basically other people under the age of 30, who will lose their jobs as a result of totally inconsistent and inconsistent government strategies. Virus.
Fullers is reconsidering plans to reopen the remaining closed pubs, and fears that sites in London and other urban centres will be the hardest hit if the house returns to work.
With 900,000 jobs in the hotel sector still vacant, the government will have to expand the era of licensing for the hotel industry and provide more support for VAT, Emeny adds.
JD Wetherspoon boss Tim Martin is even more brutal, calling the last 22-hour time “completely stupid. “There have been few infections in the pubs.
He tells Sky that there are 3. 2 million hospitality employees looking for social distancing rules lately. The government is now “getting those other people fired around 10 p. m. ” and take other people to the streets.
When asked about the government’s “contradictory signs” following Eat Out to Help Out’s good fortune last month, Martin said:
It’s crazy.
I’m pretty sure the government has no idea what it’s doing. The most vital thing in our democracy is for Parliament to deal with this issue.
Martin adds:
An organization of colleagues, many of whom have been elected, imposes government throughout the degree.
Martin needs the government to consider experts, such as Professor Carl Heneghan of Oxford University, who argue that the government deserves to introduce “targeted protection” for those more vulnerable than new national restrictions.
Parliament now takes a week to discuss the locks, says Martin, who believes MPs would conclude that the locks are not working.
It warns that the extension of the licensing program would be a “sticky plaster,” and that tax revenue would be affected if pubs closed again.
He’s just that those pranksters are ruining the country.
Martin also criticizes Boris Johnson’s handling of the crisis, saying that “at the moment he is not up to the task. “
As the one running a company, the Prime Minister will have to “listen to the experts, what he wants to happen and stick to a moderate path, listening at all times. “
We want leadership, common sense and a smart economy.
The economy is ruining
The UK Treasury reported that the overall commercial loans in its Covid-19 loan programme have now reached 57. 3 billion pounds, up from 52. 6 billion a month ago.
This includes 38 billion pounds of “return loans,” which allow small and medium-sized businesses to borrow up to 50,000 pounds.
Another 155 billion pounds borrowed under the Coronavirus Disruption Loan Program (CBILS) to cover up to five million pounds of lost cash.
These programs were due to be completed soon, however Chancellor Rishi Sunak will eliminate them, due to concerns about the accumulation of Covid-19 infections.
The cost of the homework program has also increased from 35. 4 billion pounds to 39. 3 billion pounds. It is also scheduled to end next month, but pressure on Sunak is increasing to extend the holiday program to the companies most affected by the pandemic.
Louis Ashworth of the Telegraph has perfectly added the burden of the Covid-19 systems here:
Whitbread’s stock has dropped by 3. 7% today, its lowest level since March.
Ian Forrest, an investment analyst at the Share Center, says Whitbread is facing “difficult times,” especially with the new restrictions pending in the recreational sector.
While demand on the beach and tourist spaces has been strong in recent weeks, the company said bookings in London were still low and overall sales in August declined by 39% compared to last year. Whitbread also stated that his German hotel business had an industry trend with the UK.
Stocks reacted negatively to the news with a 3% drop in the early industry to its lowest point since March. While there are symptoms of an industry recovery in some business spaces, obviously they are still difficult times for corporations and the reduction resolution reflects the administration’s assumption that demand will remain moderate for some time.
The prospect of new restrictions on the hotel industry in the near future, as well as the licensing program that ends in October, only add to the demanding situations the company is going through. sheet, however, until there is a greater prospect of negotiation, we continue to advise to sell.
The scale of task cuts in Whitbread shows that Covid-19 would possibly have permanently replaced his business, says Emilie Stevens, equity analyst at Hargreaves Lansdown:
“Premier Inn owner had one of the first most difficult halves on the market and in the hope that the call will remain moderate for some time, the organization announced plans for up to 6,000 employees, or 18% of the workforce. a mirror image of the fact that the coronavirus would possibly have replaced Whitbread’s global forever, without full hotels, the organization is not profitable, so a more flexible and declining load base is essential.
Stevens also wonders how long it will take companies (a key market for Premier Inn) to return to pre-pandemic levels:
We know that the call for the city remains moderate and with more and more corporations uttering permanent paintings of house plans, we wonder if the return of business travelers is more “if” than “when”.
Here’s my colleague Julia Kollewe about the thousands of task cuts to come in Whitbread:
Premier Inn owner Whitbread will eliminate 6,000 jobs at its hotels and restaurants, nearly one-fifth of its workforce.
Whitbread, who also owns the Beefeater and Brewers Fayre restaurant chains, was greatly affected by the Covid-19 crisis, which forced her to close her British hotels and restaurants for four months after closing. in the first part of the year.
The move comes when pubs, bars and restaurants in England face new restrictions amid fears of a momentary wave of coronavirus this fall. The venue must do so at 22. 00 hours, starting Thursday.
More here:
The governor of the Bank of England has warned that covid-19 cases “reinforce the risks of the problem” facing the UK economy.
Addressing the British Chambers of Commerce, Bailey said the UK’s recovery had been immediate and truly extensive, but demand for labour remains low and unemployment is higher than official data.
Bailey said the recent accumulation of Covid-19 cases is “very unfortunate,” warning:
“Clearly, this increases that of a decrease. “
With new brakes lurking, Bailey says the Bank will do “everything it can” for the economy as it faces the “difficult challenges” ahead.
But Bailey also tried to calm the hypothesis that the bank could simply introduce negative interest rates. Last week, he revealed that he had “entered into a structured commitment” with regulators on how such a measure would work, which the City took as a transparent lead.
Bailey, however, insists that the Bank gave a signal last week:
“It means nothing about the choice of us as negative instruments. “
Bar chain JD Wetherspoons warned that it could eliminate up to 450 jobs at six bars in UK airports.
The proposed layoffs concern Gatwick, Heathrow, Stansted, Birmingham, Edinburgh and Glasgow airports, where declining business and holidays have hurt revenue this year.
John Hutson, CEO of Wetherspoon, explains:
“The company has written to another 1,000 people hired in its pubs at six airports (Gatwick, Heathrow, Stansted, Birmingham, Edinburgh and Glasgow) to say that between 400 and 450 jobs are in danger of being laid off.
The resolution is basically the result of an industry slowdown in those pubs, related to the strong relief in the number of passenger airports.
We will have to stress that no resolution of the company has been taken at this stage.
The company will pay attention to staff tips to reduce the number of mandatory redundancies.
Wetherspoon proposes to consult together with workers through a representative employment committee, which will be created for this purpose”.
Corporate TUI has reduced its capacity for winter holidays due to low demand.
TUI has reduced its winter vacation offer by 40% (after giving up 20% of the holiday). This shows that demand is even weaker than expected, following the recent accumulation in Covid-19 cases.
TUI has gone through a very difficult summer, with reserves that have dropped by 83% year-on-year, has already cut capacity by next summer to 80% and in May presented plans to cut up to 8,000 jobs.
TUI CEO Friedrich Joussen says the outlook is very uncertain.
We have effectively restarted our operations; consumers are enjoying their vacation with newly adapted hygiene protocols and we have taken 1. 4 million holiday consumers since reboot1. The availability of destinations in supply is strongly influenced by government policy and pandemic development, meaning the environment remains volatile and likely to remain volatile in the coming quarters.
“Pleasure holidays remain vital to consumers and were one of the most lost activities2 during the pandemic, recreational travel is expected to recover faster than business travel.
Insurance has also been asked to terminate their “loyalty penalty” on existing customers.
The CFA has proposed “radical” reforms, which would mean that anyone renewing their home or car insurance will pay no more than they would pay as a new customer. Not here anymore.
It also weighs on its percentage value this morning.
Beazley Specialty Insurance Group has doubled its estimated claims bill for losses similar to the Covid-19 pandemic.
Beazley says existing restrictions mean more times are canceled than expected, in the UK and US.
In April, I was hoping the chances would be general again now; Instead, he now expects the claims to be successful at $ 340 million, up from $ 170 million five months ago.
Shareholders:
Because our business portfolio is strongly targeted at the US, we are not going to be able to do so. But it’s not the first time And the UK, being the ultimate life segment for conferences, our customers still can’t serve in large part while restrictions on holding events persist.
Conferences that were postponed earlier in the year are now canceled, as well as conferences scheduled to take a position in the last quarter of this year, meaning our loss estimates have increased. In addition, we anticipate additional claims based on our exposure to the 2021 occasions.
Shares in Beazley fell 13% to the rear of the FTSE 250.
After yesterday’s fall, European stock markets opened up a bit this morning.
The 100-hundred FTSE has climbed 29 points, or 0. 5 percent, in 5833, from a two-week low last night. The German DAX rose 0. 6% at the start of the session, the French ACC up 0. 5%.
But corporations vulnerable to Covid-19 restrictions remain under pressure.
Land Securities, the genuine real estate company, fell by 2%, following Michael Gove’s comments that other people paint from the house when possible.
British Airways owner IAG fell 1. 5% to a new eight-year low. Cruise operator Carnival is weak, 3% to a minimum of seven weeks.
Home builders Barratt and Persimmon were down 1%.
While Whitbread struggles, the DIY chain Kingfisher controlled the pandemic to increase its profits.
Kingfishers, owner of B
CEO Thierry Garnier says the business has been forged since outlets were allowed to reopen after closing, as consumers adapt their homes to cope with house paintings (and also home education).
“We achieved resilient monetary functionality in the first part of the year, with the unfavorable effect of COVID-19 in the first quarter offset by a strong recovery in the second quarter. This recovery continued in the third quarter to date, with expansion in all banners and categories.
“The crisis has led more people to rediscover their homes and place enthusiasm in them. Create new desires for home renovation as other people seek new tactics to use the area or adapt to the paintings of the house.
It is also transparent that consumers are more comfortable with online orders and that delivering the price to consumers is imperative in a complicated economic environment.
Kingfisher’s shares rose 6% in the first operations.
Whitbread’s shares fell 3% at the start of trading in London, in the back of the FTSE.
Investors may be cautious, after the company predicted that the call will “remain moderate” in the short to medium term.
The prospect of more people running away from home for months is also a blow to Whitbread’s hotel business.
As it says this morning:
September and October are historically an era in which commercial reserves resume after the quiet summer era, but at this level it is too early to assess the effect of COVID-19 on this historically occupied era of reserves.
Here’s a look at the many hotel corporations and shops in the UK that have announced primary task cuts since the start of the pandemic:
Whitbread – 6,000 jobs
Sept. 22: Whitbread, owner of Premier Inn, Beefeater and Brewers Fayre, announced it would cut 6,000 jobs at its hotels and restaurants, or nearly one in five of its workforce.
Pizza Express – 1,100 jobs September 7: restaurant chain confirms closing of 73 restaurants from rescue restructuring agreement
Costa Coffee – 1,650 jobs September 3: The company, acquired through Coca-Cola two years ago, is cutting up to 1,650 jobs in its cafes, or more than one in 10 of its workforce.
Pret a Manger – 2,890 tasks August 27: Most of the cuts are concentrated in the workers of the sandwich chain workshops, but 90 positions will be lost in the groups of its center. .
Brands
Mister
WH Smith – 1,500 jobs Aug 5: The chain, which sells products ranging from sandwiches to stationery, will cut jobs primarily at UK exercise stations and airports.
Dixons Carphone – 800 jobs August 4: Electronics store Dixons Carphone is cutting 800 executives at its retail outlets as it continues to cut costs.
DW Sports: 1,700 jobs at risk August 3: DW Sports enters management, closing its online retail page and risking the closure of its 150 gyms and shops.
Brands
Ted Baker – 500 jobs 19 July: About two hundred jobs at the headquarters of the fashion store in London, the ugly Brown building and the rest in the shops.
Azzurri – 1,200 jobs
Burberry: 500 jobs worldwide July 15: The total includes 150 jobs at UK headquarters, as the luxury logo tries to reduce prices by 55 million pounds after a drop in sales due to the pandemic.
Boots – 4,000 jobs nine in July: Boots cuts 4,000 jobs – or 7% of its workforce – through the last 48 optics and cutout outlets at its Nottingham headquarters, as well as some visitor checkpoints and service in stores.
John Lewis – 1,300 jobs July 9: John Lewis announced plans to permanently close 8 of its 50 retail outlets, adding entire branches in Birmingham and Watford, with the most likely loss of 1,300 jobs.
Celtic Manor – 450 jobs 9 July: the heads of the Celtic Collection in Newport, which hosted the 2010 Ryder Golf Cup and the 2014 NATO Conference, said 450 of their 995 would lose their jobs.
Pret a Manger – 1,000 jobs July 6: Pret a Manger will permanently close 30 branches and could eliminate at least 1,000 jobs after suffering ‘significant operating losses’ after Covid-19 closes
Casual Dining Group – 1,900 jobs July 2: Restaurant chain owner Bella Italia, Café Rouge and Las Iguanas collapsed in management, with the early loss of 1,900 jobs. the business even as buyers wanted to get all existing sites and that 91 of its 250 outlets would remain permanently closed.
Arcadia – 500 jobs July 1: Arcadia, the conflicting organization of Sir Philip Green – owner of Topshop, Miss Selfridge, Dorothy Perkins, Burton, Evans and Wallis – said in July that 500 jobs at the headquarters of 2500 would be eliminated in the coming weeks.
SSP Group – 5000 jobs 1 July: The owner of Upper Crust and Caffe Ritazza will eliminate 5,000 jobs, or almost part of their workforce, with cuts to their heads and operations in the UK after the pandemic blocked domestic and foreign travel.
Harrods – 700 jobs July 1: Branch organization is cutting one in seven out of its 4,800 workers due to the “continued impacts” of the pandemic.
Harveys – 240 jobs June 30: Administrators made 240 layoffs in the Harveys furniture chain, with more than 1,300 jobs at risk if a customer could be found
TM Lewin – 600 jobs June 30: Shirtmaker TM Lewin has permanently closed its 66 outlets, with the loss of some 600 jobs.
Monsoon Accessorize – 545 jobs June 11: Fashion brands were bought from management through founder Peter Simon in June in a deal in which 35 retail stores closed permanently and 545 jobs were lost. job.
Mulberry – 470 jobs June 8: The logo of fashion and luxury accessories will reduce their globalization by 25% and has started consulting the 470 employees at risk.
The Restaurant Group – 3,000 jobs June 3: owner of restaurant chains like Wagamama and Frankie
Clarks – May 900: Clarks plans to eliminate 900 jobs internationally as he struggles with the expansion of online footwear shopping and the pandemic.
Oasis and warehouse: 1,800 jobs April 30: Fashion brands were purchased through the Corporate Restructuring Hilco in April, with all their outlets permanently closed and 1,800 jobs lost.
Cath Kidston – 900 jobs 21 April: More than 900 jobs were eliminated without delay at the outdated retail brand Cath Kidston after the company announced the permanent closure of the UK’s 60 stores.
Debenhams – 4,000 jobs 9 April: At least 4,000 jobs will be lost in Debenhams in their head and outlets will be closed after their downing in management in April, for the time being in a year.
Laura Ashley – 2,700 tasks March 17: Laura Ashley collapsed in the administration, with 2,700 tasks lost, and said rescue talks had been thwarted by the pandemic.
Immediately after Whitbread announced his task cuts, closet secretary Michael Gove told Sky News that other people will be encouraged to paint from the house to do so.
People who want to be in the office to do their job deserve to do it, Gove added.
Gove calls it a “accent change,” but it’s more of a change of direction. Ministers had suggested staff return to the workplace for several weeks to service industries such as cafes, sandwich shops, restaurants and hotels.
Whitbread also warned that the call for hotels in major cities remains low, forcing the 6,000 task cuts announced this morning.
The company closed its doors from March to early July. There has been a strong call to tourist sites since reopening, but not in metropolitan spaces, because very few people spend on business trips.
Sales took a step forward in August, but were still at 40% less than they were a year ago.
Says:
Since the reopening, the overall expansion of accommodation sales in the UK has outperformed the market, reaping the benefits of immediate reopening, the strength of the Premier Inn logo and our leading visitor proposal. Demand is strong in beach and tourist areas, with occupancy rates of nearly 80% in August in those areas, but demand remained moderate in the rest of the hotel market, particularly in London and metropolitan areas.
Across our business in the UK, overall occupancy grades have increased weekly, a 51% average in August, with accommodation sales amounting to -47. 3% year-on-year, while the functionality of places to eat in the UK has increased through positives an effect on out-of-home dining. Help program.
Total UK sales (accommodation and catering) increased to -38. 5% in August.
Hello and welcome to our ongoing policy of the global economy, money markets, the euro and businesses.
We start with bad news from the UK: Whitbread, the hotel and restaurant chain, is cutting up to 6,000 jobs. This is the newest in a series of recreational corporations to decrease their employment since the start of the pandemic.
Whitbread, owner of Premier Inns hotel chains, is reducing its size by 18%. It has experienced a slowdown in the industry a year ago and fears that the call will remain weak.
Executive Director Alison Brittain the city:
Since the request remains moderate, we now have to make very complicated decisions, and with great remorse today we announce our goal of initiating a consultation procedure which can result in up to 6000 redundancies in the UK. A significant proportion was expected to be received voluntarily.
In accordance with our long-standing values of treating our workers fairly, our priority now is that this procedure be transparent and transparent to all colleagues and that everyone involved is supported at all times.
Comparable sales during the first part of Whitbread’s fiscal year, from March to August, plummeted more than 77%, as many of its outlets were closed during closing.
Whitbread is also about to cut between 15 and 20% of its head office, representing 150 more positions.
Cuts occur as the UK government prepares to announce that pubs and restaurants will close at 10 p. m. in an effort to stop the Covid-19.
These restrictions would be Beefeater Steakhouses, Brewers Fayre and Whitbread Bar.
Boris Johnson is expected to set the main points of the plan today, after the UK’s Covid-19 alert point has risen to four, the virus is “high or exponentially increasing. “
Global markets were shaken by the risk of additional restrictions on the Covid-19, and Britain’s FTSE 100 suffered the worst drop in 3 months. More than 50 billion pounds have been removed from the top-tier index, with airlines, banks and pub chains being the toughest.
The U. S. market also suffered heavy losses, with the Dow Jones trading average falling to a minimum of seven weeks.
Federal Reserve Chairman Jerome Powell tried to calm his nerves last night with a testimony ready for Congress.
Powell pledged to:
“We remain committed to using our equipment to do what we can, for as long as necessary, to make sure the recovery is as strong as possible and to restrict lasting damage to the economy”
European stock markets are expected to go up this morning, ahead of a decision on the Swedish interest rate, an aptitude check of UK factories and the latest report on eurozone customer confidence.
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