Boeing to cut 20% total workforce
Boeing has said that it plans to cut thousands of additional jobs in upcoming months.
Chief executive of the US airline, Dave Calhoun, said that he hopes staff numbers will be reduced from 160,000 to 130,000 by the end of 2021.
In a memo to staff he said: “As we align to market realities, our business units and functions are carefully making staffing decisions to prioritize natural attrition and stability in order to limit the impact on our people and our company.”
“We anticipate a workforce of about 130,000 employees by the end of 2021. Throughout this process, we will communicate with you every step of the way.”
Boeing has reported four straight quarterly declines with a $466m (£354m) loss for the three months to 30 September.
GSK and Sanofi sign Statement of Intent to provide 200m COVID vaccines
The COVAX Facility is led by the Gavi vaccine alliance group, and has the goal of allowing companies and researchers to collaborate, and develop, produce and provide equitable access to COVID tests, treatments and vaccines. In service of this alliance, UK health giant GSK (LON:GSK) and French pharma blue chip Sanofi (EPA:SAN) have signed a Statement of Intent with Gavi, for the supply of 200 million COVID vaccine doses.
Once necessary approvals are gained, both companies say they will make their adjuvanted recombinant protein-based COVID-19 vaccine available to the COVAX Facility, to contribute towards its goal of “[reaching] those in need, whoever they are and wherever they live”.
Speaking on the companies’ commitment, Thomas Triomphe, Executive Vice President and Global Head of Sanofi Pasteur, said:
“To address a global health crisis of this magnitude, it takes unique partnerships. The commitment we are announcing today for the COVAX Facility can help us together stand a better chance of bringing the pandemic under control. This moment also reflects our long-term commitment to global health and ensures our COVID-19 vaccines are affordable and accessible to those most at risk, everywhere in the world.”
Roger Connor, President of GSK Vaccines added:
“Since we started working on the development of COVID-19 vaccines, GSK has pledged to make them available to people around the world. We are proud to be working with Sanofi to make this adjuvanted recombinant protein-based vaccine available to the countries signed up to the COVAX Facility as soon as possible – this has the potential to be a significant contribution to the global fight against COVID-19.”
Having initiated the first of two phases of its trials on September 3, with 440 participants enrolled, GSK stated that it expects first results in early December 2020. It said these results being secured would be ‘pivotal’ to support the initiation of a Phase 3 study before the end of the year. Should the data prove sufficient for licensure application, GSK said it will request regulatory approval during the first half of 2021. In parallel, GSK said that it and Sanofi had been scaling up manufacturing of the antigen and adjuvant respectively. The company adds that the use of an adjuvant technology is particularly important in a pandemic situation, given that it may reduce the amount of vaccine protein required per dose. It continued, saying that it does not expect profit to be made from the COVID vaccine during the pandemic phase, and said it will invest any short-term profit back into COVID-related research and long-term vaccine preparedness.Tribal Group hikes profit expectations, shares rise
Tribal Group shares (LON: TRB) are up almost 8% this morning after the group released a trading update for the year ending 31 December 2020.
The provider of software and services to the international education market said in the update that it “performed well” in the second half of the year to date, Despite sales cycles being protracted as a result of the pandemic.
Tribal Group now anticipates reporting profits for the year comfortably ahead of current market expectations in the region of £72m.
The firm has said that it will pay an interim dividend of 1.1 pence per share.
“During the third quarter, we have continued to make positive progress against our strategic objectives, winning new customers, retaining and growing our existing customers, while investing in the transition of our offerings to the cloud,” said Mark Pickett, the CEO of Tribal Group.
“We are pleased to have paid back all government support received during the COVID-19 period and to reinstate our dividend. I would like to thank all of our team for their continued hard work and commitment to Tribal and our customers through this difficult time.
“Our priorities for the remainder of 2020 are to continue to protect the business from the impact of COVID-19, win new customers, retain and grow existing customer relationships, and deliver on the Tribal Edge strategy.
“Never has the need for cloud-based solutions for the Education market been more pressing. The investments we have made position us at the forefront of this evolution in our industry, providing for an exciting future for Tribal.”
Tribal Group shares (LON: TRB) are currently +7.69% at 70,00 (1242GMT).
Shoe Zone shares down as group admits to “challenging” year
Shoe Zone shares (LON: SHOE) plunged on Wednesday after the group a “challenging” second half of the year.
Store trading since reopening in June has been -20% year on year whilst digital trading has broadly increased by 100% year on year.
The retailer said it had been impacted by lockdown and continues to be hit worst now in tier two and three locations across England.
Revenue for the 52-week period to 5 October 2020 was down from £161.9m to £122.6m.
Shoe Zone expects to report a loss before tax in the range of £10m to £12m.
Anthony Smith, Chief Executive, commented: “Shoe Zone has ended an incredibly challenging year with a robust plan and sufficient funding in place to ensure the future survival of the business. The exceptional growth in digital sales since the start of the COVID-19 pandemic demonstrates the flexibility of our operating model, and follows the decision to create an autonomous Digital department in 2019. However, it is very difficult at this stage to provide meaningful guidance on the future outlook, given the material uncertainty in the wider economy.
“The suspension of rates in April 2020 was a significant benefit for our business in FY20 and was in line with the government’s desire to save the high street. However, the government has announced the reintroduction of the antiquated business rates system in April 2021 and to make matters worse has delayed the revaluation. The consequence to Shoe Zone will be the closure of up to 45 stores prior to April 2021 and the potential closure of a further 45 stores in the 12 months following the reintroduction. In total this would represent the closure of up to 20% of our store estate in the next 18 to 24 months.”
Shoe Zone shares (LON: SHOE) are trading -20% at 36,22 (1048GMT). This year, shares have fallen from highs of 192.50p in January.
FTSE 100 hits six-month low
The FTSE 100 has hit a six-month low, shedding 85 points and falling to 5644 points.
The blue-chip index has lost around 25% of its value this year so far amid the Coronavirus pandemic.
Top fallers of the FTSE 100 on Wednesday are Property companies British Land and Land Securities. Airline group including IAG was also down this morning by 4.5%.
Shares in Cineworld are down 7% this morning. The group has already temporarily closed all UK and US outlets.
Meanwhile, European stocks have also sunk to a four-month low.
France’s CAC index fell 2% ahead of president Macron’s speech this evening. Germany’s DAX index was down 1.8%, following reports that Angela Merkel is proposing the closure of bars, fitness studios, discos, and cinemas. Meanwhile, in Spain, the IBEX is down 1.4%.
Connor Campbell from Spreadex commented on this morning’s lows: “Grim. That’s the only word that can describe the markets on Wednesday morning, investors’ covid-19 fears attacking stock prices in ways not seen since the start of the Western phase of the pandemic back in March.
“They’re not wrong to be worried. Emmanuel Macron is likely to announce a month-long national lockdown in France this evening, after the country posted its highest number of daily fatalities since April. Angela Merkel is set to argue for ‘lockdown light’ when she talks to Germany’s regional leaders later today. And in the UK, the daily death total hit its worst levels since May, increasing the call for a nationwide ‘circuit breaker’, rather than the government’s current piecemeal approach.
“The DAX and CAC, which have spent the week trading off the title of worst hit major index, both shed 3% after the bell. That leaves the German bourse clinging on above 11,700 – just – and at its lowest level in close to 5-months. The French index echoed those lows, as it fell the wrong side of 4600.
“As it has done for much of the week, the FTSE managed to keep its losses at the lower end of the day’s declines. Not that that meant much – it still translated to a 2% drop, forcing it to a 6 and a half month nadir of 5625,” he added.
Next hikes profit forecast amid rise in sales
Next (LON: NXT) has revealed better than expected sales for the third quarter of the year.
The fashion retailer has hiked its profit forecast for the year to £365m – up from £300m.
Despite the pandemic, sales in the three months to 24 October were 2.8% higher than the year previously.
Year-end net debt is forecast to reduce by £487m to £625m.
Home and childrenswear at the retailer are over-performing, however, the demand for men’s and women’s formal and occasion clothing is weaker.
In Retail, out of town retail parks continue to perform better than high streets and shopping centres. Online sales at Next were strong in the quarter and increased by 23.1%.
“We have revised our guidance scenarios for the fourth quarter, which are set out below. There remains a very high degree of uncertainty in our estimates and much will depend on the progress of the pandemic, along with the Government and consumer reaction to developments,” said Next in a statement.
“Our assumptions for each scenario regarding further lockdowns, Retail footfall, capacity constraints and stock are also given in the table. We would not want to give the impression that the assumptions below and their consequences are scientific or precise; they are intended to give an indication of the sort of things that might help or hinder sales in the run up to Christmas.”
“The biggest single unknown is whether England, Scotland and Northern Ireland will follow Wales’ decision to shut non-essential retail shops. A two week lockdown in England, Scotland and Northern Ireland in November would reduce Retail full price sales by around £57m3 (depending on timing), representing 17% of Retail full price sales and 6% of the Group’s full price sales in the quarter.”
Shares in Next (LON: NXT) are trading at 6.120,00 (0851GMT).
Deutsche Bank beats expectations and swings to profit
Deutsche Bank has reported a profit for the third quarter.
Net profit revealed a net profit of €182m with a 13% growth in net revenues to €5.9bn.
This growth in profits was much higher than analyst expectations for the period, who predicted a €77m loss. The German lender posted a net loss of €832m for the same period last year.
Chief executive Christian Sewing said: “In the fifth quarter of our
transformation, we not only demonstrated continued cost discipline, but also our ability to gain market share.
“Our more focused business model is paying off and we see a substantial part of our revenue growth as sustainable.
“Our balance sheet strength and high quality risk management enable us both to support clients in challenging times and to take advantage of new business opportunities,” he added.
Deutsche Bank’s share price is up more than 15% this year so far and has recovered from a decline during the March coronavirus crash.
The bank has made a loss for the past five years and is undergoing cost-cutting schemes by cutting jobs, exiting some businesses, and cutting costs.
CFO James von Moltke told CNBC: “We are now very focused on the businesses where we can compete and win, and where our businesses and our clients and our people know where we are focused and where we can be really competitive, so I think we are seeing the benefits of that focus.”
The bank is reportedly in talks to sell a IT services unit to Tata Consulting Services (TCS). The result of the deal is expected to be shared by the end of the year.
This week, major lenders have shared trading updates with HSBC revealing a 36% slide in profits and Santander posting a profit for the third quarter.
High street could miss Black Friday rush with 85% of consumers set to shop online
With lockdown restrictions seemingly implemented and changed every few weeks, high street businesses have been at the receiving end of the COVID pandemic, and this situation is unlikely to change any time soon, as shoppers look to embrace online shopping during Black Friday sales.
According to new research published by money.co.uk, 77% of UK adults are planning to bag deals during this year’s Black Friday fire sale. And of this number, some 85% said they be shopping either exclusively or partially online.
Compare that to just 0.3% who said they’d be shopping exclusively in-store, and you might get some idea why many high street shops are currently fearing for their survival. Having missed much of first half trading, it now looks as though the accelerated shift to online shopping will hamper the high street’s performance during the run-up to Christmas.
Also, with the furlough scheme soon coming to an end, and the ensuing rise in unemployment to follow, opportunities such as Black Friday will be be prime windows of activity for cash-strapped Brits to bag cut-price gifts for their loved ones over the festive period.
While many concerns are a consideration for many, around 40% of those surveyed say they expect to spend between £200 and £300 more this year than in previous years during the Black Friday weekend, while 1 in 10 say they expect to spend £500 more.
Further, 15% say they plan to spend a whopping £600 to £2,000 pounds more than previous years during this year’s Black Friday event. With these kind of emphatic shifts in consumer behaviour, missing out won’t just harm the balance sheets of high street shops, but could see online outlets rake in record sums, to reinvest and build up an unassailable advantage.
According to money.co.uk’s research, here are the top product sectors on shoppers’ wishlists:
1. Clothes (49%)
2. Beauty & grooming products (34%)
3. Household items (29%)
3. Videogames console and games (29%)
4. Smart TV (25%)
5. Home Furnishings (24%)
6. Smartphone (23%)
7. Jewellery (20%)
8. Amazon Echo Device (19%)
9. Music System (18%)
9. Furniture (18%)
10. White goods (17%)
With just one in ten shoppers set to opt for a cash-fuelled Black Friday spree, and the number of buy now, pay later users rising to 5% of shoppers, money.co.uk’s personal finance expert, Salman Haqqi, told shoppers how to make the most of purchases during the sales period:
“For added protection on Black Friday and Cyber Monday purchases, online or in-store, consider using your credit card.”
“Under Section 75 of the Consumer Credit Act 1974, if you pay for an item using your credit card, then you have rights to claim a refund from your credit card provider as well as the seller if something goes wrong.”
“This extra protection applies when you buy an item that costs between £100 and £30,000 and means if the seller goes bust or fails to deliver your item you can approach your credit card company to get your money back.”
European equities continue the second wave slide on Tuesday
Having posted some painful losses on Monday, continued second wave fears saw European equities lead the downward-facing indexes on Tuesday. Speaking on the day’s performance, IG Chief Market Analyst, Chris Beauchamp, commented:
“A small overnight recovery for stock futures has been rapidly given back as the session got underway, and so far there is no sign of any broader reversal developing across equity markets.”
As trading closed on Tuesday, the CAC was down by the biggest margin, falling by 1.77%, to 4,730 points. Having led Monday’s collapse with more than a 3% drop, the DAX followed with a 0.93% fall, to 12,063 points.
In the earlier stages of the day, the FTSE escaped the fates of its Eurozone counterparts, courtesy of impressive gains by HSBC (LON:HSBA) shares, which bounced by more than 7% during the morning.“Once again London’s losses have been contained, this time helped by a bounce for HSBC shares, although even here the positive impact is limited due to HSBC’s focus on Asia that provides less of a read across for UK banks like Lloyds and NatWest.” added Mr Beauchamp.
Indeed, this early rally was not enough to see avail the FTSE, which eventually finished down by 1.09%, having fallen from 5,803 at lunchtime, to 5,729 points as the final bell rang. Other than second wave and lockdown concerns, European equities were struck by a deflated, if not dramatic Dow Jones open, with companies such as Caterpillar posting losses of over 3%, the index fell by 0.8%, to 27,463 points – its lowest level for a month. Speaking on potential second wave scenarios and their impacts on equities, Libra Investment Services Co-Founder, Chris Tinker, stated: “Even though the daily headlines are likely to see an increased level of volatility in the coming days, the market is not expensive: it is entering into this period broadly aligned with what appears to be a modestly rising market valuation. The downside risk to the market on a worst case scenario for events – arguably prolonged uncertainty and dispute over the election outcome, some form of political unrest and/or a surge in Covid related hospitalisations and deaths – is quantified by the Apollo measure of the Margin of Safety – the point at which the market is sufficiently discounted relative to value that you have a “free call” option on the market.” “That level is 31% below the current price but that level – 2365 – is actually still at a premium to the market index at its March lows and is rising in line with the valuation trend in the market. If even the worst case scenario is unlikely to create new lows for the year, then the fact that the upside “best case” scenario is between 20% and 45% higher than here, will certainly spark interest should a better than expected outcome emerge.”Woolworths rumour mill grips Twitter
If you’ve spent any time on the world’s angriest social media platform today, you’ll have seen people’s hearts filled with joy at the news that their old, favourite goods store – Woolworths – will be returning to the high street – and then crushed into teeny tiny pieces when they discovered it was a hoax.
Responding to a Tweet by a fake account with 900 followers, media outlets flocked to bring this piece of British nostalgia back to life, in hopes that it would somehow redeem what has been an otherwise shocking year.
Unfortunately, it appears more than likely the Tweet was nothing more than a ruse by a cruel attention-seeker, who has nonetheless left Twitter users frantically scratching their heads over this odd, and typo-laden post:Every major online outlet has reported Woolworth’s is returning to the high street.
One call from me to owner Very’s PR – he doesn’t know a thing about it. Surely a story based on a Twitter account with 900 followers (and spelling mistakes) should be verified? pic.twitter.com/bdfGf2R6Nm — Tom Witherow (@TomWitherow) October 27, 2020
With the news breaking, or rather, un-breaking, many have taken to Twitter to voice their frustrations, over the comeback story that was simply too good to be true.The fact that they’ve managed to spell Woolworths wrong *twice* fills me with confidence. pic.twitter.com/oKbCtZ9Q6j
— Alistair Coleman (@alistaircoleman) October 27, 2020
If you were wondering ‘what’s the most mundanely Evil thing we could do this morning’, it’s tricking the British public into thinking that Woolworths is coming back.
— Evil Genius (@evilgenius) October 27, 2020
We live in an era of disinformation and fake news, but our discerning media will protect… oh wait, they’ve been tricked by a fake Twitter account pretending to be Woolworths. pic.twitter.com/FDqZ3ewxl5
— James (@jemtickner) October 27, 2020
Woolworths, I’d like to formally apologize. Around 20 years ago, my mum accidentally stole some vests from your store as they got hooked onto my pushchair. We’ve blamed her ever since for the death of Woolworths. Glad to see your recovery from such a burglary.
— charlie 🕸️ (@mormerill) October 27, 2020
With the owners of the Woolworths trademark, Very Group, declaring the account that posted the relaunch news does not belong to them, many were left deflated. That was, until the company said that they would not categorically rule out a comeback. So, a hoax it may be, but perhaps a useful set of feelers for Very, to see whether the Woolworth brand still has traction, and in turn, whether it IS in fact worth bringing back in future.The kid pranking the UK that Woolworths is returning pic.twitter.com/Qp3S624sFo
— Mike Hughes (@MikeHughes_) October 27, 2020