Good morning,
The UK is in a sombre mood this morning as it comes to terms with the death of Her Majesty Queen Elizabeth II. The morning’s papers are largely dedicated to the Queen.
Business news focuses on the reaction of retail stocks following a shock profit warning from Primark. Owner Associated British Foods said that weak consumer income, the stronger dollar and volatile energy costs had caused it to curtail price rises, which was hitting profits.
The chain said it would be looking to cut operating costs and improve “store labour efficiency”.
Read more in:
The Guardian
The Times (£)
The Telegraph (£)
The FT (£)
Elsewhere in the retail world, Morrisons’ takeover of convenience store chain McColl’s is not causing too much of an issue for the Competition and Markets Authority. It said it only found 35 local areas where the two brands competed, meaning the £190m deal is likely to proceed and that Morrison’s will not be forced to offload numerous stores.
Read more in:
The Guardian
As energy prices continue to rise – and despite new PM Liz Truss’ announcement on a domestic freeze and “similar” for the uncapped commercial market – hospitality bosses have warned that one in five businesses in the sector will not survive the current crisis.
Some 300 chief executives have signed an open letter asking new chancellor, Kwasi Kwarteng, for “a plan that cuts business costs, stimulates demand and tackles inflation”.
Signatories include Just Eat, Marriott International, Mitchells & Butlers, Pizza Hut and Caffè Nero.
A survey by trade body UKHospitality found that energy bills for respondents had risen by 238%, with one five believing they will not survive the cost-of-living crisis and that three in five saying they are already no longer profitable.
Read more in:
The Times (£)
Troubles for indebted Chinese property developer Evergrande continue as a lender to the company has seized its Hong Kong headquarters, writes the FT. Evergrande defaulted on the loan and has twice tried to sell China Evergrande Centre — a 26-storey tower near the city centre of Hong Kong island. The as-yet unnamed lender has appointed a receiver to take charge of the £1.2bn building and force a sale.
