Debenhams’ flagship Oxford Street store in London and five other branches will not reopen after the current coronavirus lockdown.
The department store chain, which is being wound down, said shops in Portsmouth, Staines, Harrogate, Weymouth and Worcester would also shut permanently.
As a result, 320 staff – including 140 at Oxford Street – who are currently furloughed will be made redundant.
The beleaguered retailer, which traces its roots back 243 years and started trading as a drapery and haberdasher from a shop near its Oxford Street store, entered liquidation at the start of December after the JD Sports chain walked away from rescue talks.
Joel Hills (@ITVJoel)
Debenhams is letting 320 staff go immediately and says 6 stores won’t reopen when lockdown ends (including Oxford St). Mike Ashley’s rescue bid has yet to materialise. Closing down sale continues online - at this rate, there soon won’t be much of the business left to rescue. pic.twitter.com/E8CW4jwKtO
Speaking of semiconductors....Honda will shut its UK factory for four days next week as global supply chain problems caused by the coronavirus pandemic continue to plague the Japanese carmaker.
The closure is thought to be related to the unavailability of semiconductors, the computer chips used to run cars’ onboard management systems. The problem has affected carmakers around the world. Volkswagen has described it as a “global semiconductor bottleneck”.
Honda UK told workers that some production activities would be suspended between 18 and 21 January because of Covid-related global supply issues, a spokesperson said. The factory will aim to restart production on 22 January, he added.
Shares in Intel have surged by over 8% after the chipmaker announced that it has hired VMware’s chief executive Pat Gelsinger as its new CEO, replacing Bob Swan.
Indeed, Gelsinger harked back to some of Intel’s pioneers, including co-founders Robert Noyce and Gordon Moore:
“Having begun my career at Intel and learned at the feet of Grove, Noyce and Moore, it’s my privilege and honor to return in this leadership capacity.
I have tremendous regard for the company’s rich history and powerful technologies that have created the world’s digital infrastructure.”
Bob Swan was formally Intel’s CFO before becoming acting CEO in June 2018, and appointed full-time in January 2019.
Intel insists that the change is unrelated to its financial performance, saying that revenue and earnings are ahead of prior guidance:
Intel expects its fourth-quarter 2020 revenue and EPS to exceed its prior guidance provided on Oct. 22, 2020. In addition, the company has made strong progress on its 7nm process technology.
But still, the return of Gelsinger could be a significant move for the company....
Stephen Foskett (@SFoskett)
Absolutely! @PGelsinger was CTO of @Intel and there’s no one better prepared or proven to take the leadership of this company. I expect that this will mark the rebirth of the company, just like @SatyaNadella at @Microsoft or Steve Jobs returning to Apple! https://t.co/2MxJViQz8Q
Neil Birrell, chief investment officer at Premier Miton Investors, says the 0.4% rise in consumer prices in December met expectations.
“Inflation is one of the watch words for investors at the moment, with bonds starting to discount a pick-up, all data points will get scrutinised. But the US numbers out today were in line with expectations and still show little by way of upside surprise.
Given the situation with COVID, it is probably unsurprising that prices aren’t moving higher for now. The focus will be on the size of the next COVID relief package and what that might bring.”
James Picerno of The Capital Spectator points out that core inflation is steady:
James Picerno (@jpicerno)
US consumer inflation at the headline level picked up in Dec, rising 0.4% over the previous month. But if you look past the monthly noise the 1yr trend still shows modest, stable inflation. Notably, the 1yr core CPI change (unadjusted data) was steady at 1.6%: pic.twitter.com/mmRDYbeFEP
Gregory Daco of Oxford Economics agrees that there’s no reason for concern.
Gregory Daco (@GregDaco)
🇺🇸 US #CPI +0.4% in Dec - energy +4.0% w/ ⛽️+8.4% - food +0.4% - core +0.1% w/ shelter cost only +0.1% ⬆️apparel, car insurance, new cars, pers care ⬇️used cars, recreation, medical care
“It’s going to take a good chunk of time to make sure it’s safe,” Lagarde told an online forum organised by Reuters, adding “I would hope that it’s no more than five (years).”
“There is a demand” for a digital currency, she added, but that there is a “need to have a system that is secure” and where risks such as hacking are addressed.
The ECB has just ended a consultation on whether to introduce an electronic currency, which it says would ‘complement’ cash, not replace it.
It received over 8,000 responses. Privacy of payments ranked highest among the requested features of a potential digital euro (41% of replies), followed by security (17%) and pan-European reach (10%).
Christine Lagarde also claimed that bitcoin’s recent volatility shows that it won’t evolve into a currency.
She explained:
It is a speculative asset by any account.
When you look at the most recent developments, upward and now the most recent downward trend. For those who had assumed that it might turn into a currency, I’m terribly sorry, this is an asset, and it’s a highly speculative asset.
She then adds that it’s been used for “some funny business, and some interesting and totally reprehensible money-laundering activity”
Here’s a video clip from the Reuters Next conference:
Reuters (@Reuters)
ECB President Christine Lagarde called for global regulation of #Bitcoin, saying the digital currency had been used for money laundering activities in some instances and that any loopholes needed to be closed. Follow #ReutersNext updates here: https://t.co/4MgFy4jnw5pic.twitter.com/qlBtoDuZLW
(Bitcoin) is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity,” Lagarde said in an interview at the Reuters Next conference.
Lagarde did not provide specific examples of money laundering cases but said she understood there had been criminal investigations into illegal activity. She did not elaborate.
“There has to be regulation. This has to be applied and agreed upon ... at a global level because if there is an escape that escape will be used,” Lagarde said.
In 2018, when she ran the IMF, Lagarde argued for regulatory frameworks to prevent cryptocurrencies being used for money laundering and terrorist financing, or causing financial instability.
Her remarks today don’t seem to have hit the bitcoin price particularly, though, it’s currently down 1.7% at around $34,100. That’s a gain of 18% this year, but still almost a fifth off last week’s record highs.
Back on Monday, the UK financial regulator cautioned that anyone investing in cryptoassets should be prepared to lose all their money.
Lagarde also warned today that the eurozone recovery would be hurt if national lockdowns are extended beyond March, and if vaccination programmes slowed down or were inefficient.
Reuters (@Reuters)
European Central Bank President Christine Lagarde pushed back against economic pessimism, arguing that a rebound will come as pandemic uncertainty declines and that Europe possesses all the tools needed to overcome the crisis #ReutersNexthttps://t.co/EUd2XzqrLXpic.twitter.com/XnzDPeFhUQ
FCA extends repossession ban until April amid pandemic
Britain’s financial watchdog is proposing to extending the ban on repossessing homes from people who can’t pay their mortgage, due to the ongoing pandemic.
Under new draft guidance from the Financial Conduct Authority, UK banks would now not be allowed to repossess a home until 1 April this year. The current ban ends on 31 January.
The FCA says the worsening Covid-19 crisis means lenders should not force people out of their homes, even if they are in arrears on their mortgages.
This approach takes account of the worsening coronavirus situation and the government’s tighter coronavirus-related restrictions which mean that consumers could experience significant harm if forced to move home at this time as a result of repossession proceedings.
We recognise that there are also government bans on evictions in some nations, which could also prevent firms from enforcing home repossessions.
However, the FCA is not planning to extend a similar ban on consumer credit, meaning that consumer credit firms will be able to repossess goods and vehicles from 31 January 2021.
It says:
However, this should only be as a last resort, and subject to complying with relevant government public health guidelines and regulations, for example on social distancing and shielding.
Importantly, firms will also be expected to consider the impact on customers who may be vulnerable, including because of the pandemic, when deciding whether repossession of goods or vehicles is appropriate.
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