Banks are reining in lending at the fastest rate since the global crash as fears rise of an economic slowdown which could spell chaos for high-risk borrowers following a years-long debt binge. Business loans suffered their toughest squeeze on availability since the 2008 financial crisis in the final three months of 2019, amid a slump in appetite from lenders. At the same time a crackdown on access to credit cards intensified, according to Bank of England data, with availability falling for three straight years following warnings from regulators that a risky bubble has blown up. The figures will intensify speculation that an interest rate cut is needed to boost the flagging economy.
Brussels will use the British government bailout of Flybe Group (FLYB) to extract trade concessions from the UK, as the European Commission looks to tie Britain into EU rules long after Brexit. London insisted that the bailout of the airline is not state aid after rival International Consolidated Airlines Group SA (CDI) (IAG), the owner of British Airways, made a complaint to the EU executive on Wednesday. Whether or not there is eventually found to be a breach of competition rules, the EU will point to Flybe to help justify its demands for “level playing field guarantees” in the post-Brexit trade deal. Brussels is seeking British pledges to not undercut EU tax, state aid, environment or labour standards as part of the agreement that will form the basis of the future relationship.
Ryanair Holdings (RYA) boss Michael O’Leary has launched a stinging attack on billionaire Virgin founder Sir Richard Branson over the bailout of cash-strapped regional airline Flybe Group (FLYB). Mr O’Leary – whose airline has threatened to sue the Government after it allowed Flybe to delay a tax payment – accused Sir Richard of rushing to claim credit for business successes but hiding at his Caribbean estate on Necker Island when problems struck. Virgin Atlantic, the airline Sir Richard founded, is one of Flybe’s three shareholders. Mr O’Leary said: “There’s no better billionaire to duck bad news than Branson. Branson is only around for the good news days. “For the flotations and the press conferences. When yet another of his businesses fails or loses money you won’t see Branson for dust, he’ll be over in Necker.”
A raft of store openings and a strong performance on the Continent drove up total sales at Primark over Christmas. Sales jumped 4.5% in the 16 weeks to Jan 4 compared to a year earlier, partly due to a marked upturn in its Eurozone market. Trading was particularly good over November and December, the chain’s owner Associated British Foods (ABF) said, although there was an expected squeeze on profits amid a blizzard of price cuts across the high street. But in the UK there was a small decline in like-for-like sales, which strip out the impact of new store openings and are seen as a better measure of true health. Britain is Primark’s most important market. John Bason, ABF’s finance director, said he was pleased with trading in the quarter. He added that Primark had a “sensational” Christmas period.
The boss of Magners cider owner C&C Group (CCR) has stepped down with immediate effect after revealing plans to leave the business. Stephen Glancey, 59, who has been chief executive of the drinks firm since 2012, will leave next month following a handover period with chairman Stewart Gilliland taking on an executive position in the interim. Mr Glancey joined C&C Group as chief operating officer in 2009 and has been a board member since 2008. It is thought he plans to retire from executive roles permanently following his departure.
A surge in demand for bicycles and scooters drove Halfords Group (HFD) sales higher over the festive period. The company built 86,000 bikes for pick-up in the week before Christmas and reported a 1.3% increase in like-for-like sales, which strip out new stores, for the 14 weeks to Jan 3. This increase was mostly down to its cycling business, up almost 6pc, but offset by motoring, which fell 2.7%. Electric scooters were particularly popular, as well as custom bikes where buyers build their own model from a range of parts. The retailer is trying to offer more services such as MOTs under chief executive Graham Stapleton and not rely as heavily on product sales.
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