DB Live: Hotels chain jobs threat; OECD warning; markets
9pm: Macdonald Hotels warns of 1,800 job cuts
Macdonald Hotels has warned that it could cut 1,800 jobs due to a fall in custom during the coronavirus lockdown.
The Bathgate-based group has 31 hotels and resorts throughout Scotland and England and has begun issuing consultation notices to its 2,299 employees.
6.45pm: CBI’s next DG
A former Treasury adviser who has spent the last three years trying to tackle Britain’s poor productivity record has been named as the next boss of the CBI.
Be the Business (BtB) CEO Tony Danker, pictured (BtB), will be appointed this week as the successor to Dame Carolyn Fairbairn, who will step down later this year.
4.45pm: London close
Traders were driven by a mix of profit taking, a steady restart to economies and anticipation of tonight’s Federal Reserve statement on the US economy, leaving the FTSE 100 barely changed over the session. It closed down just 6.59 points (0.1%) at 6,329.13.
3.30pm: Tourism to restart
Scotland’s tourism industry will be back in business in July if the Covid crisis allows.
3.15pm: Quiz closing 11 stores
KPMG has announced the closure of 11 Quiz Clothing stores after being confirmed as administrators to Kast Retail, a subsidiary of the fashion retailer.
Kast operated 82 Quiz Clothing leasehold retail stores across the UK and Republic of Ireland.
The company announced details of the restructuring of its stores portfolio earlier today, including 93 job losses, all expected to be in the Quiz head office.
11am: UK facing worst downturn
An OECD report warns that the UK will suffer the worst economic impact from the coronavirus pandemic of any of the developed countries.
It forecasts that the UK will witness a 11.5% slump in GDP this year – in contrast to other developed economies including, Germany (6.6%), Spain (11.1%), France (11.4%), and Italy (11.3%).
10.10am 40,000+ sign Rolls-Royce petition
More than 43,000 people havesigned a petition calling on the governments in Scotland and Westminster to save 700 jobs under threat at Rolls-Royce at Inchinnan.
The company is planning at least 3,000 cuts across its UK civil aerospace division.
Scottish Labour is urging both governments to work together to increase efforts to protect the Inchinnan workforce and is calling on Scottish Secretary Alister Jack to intervene.
First Minister Nicola Sturgeon told MSPs today that she had spoken to Rolls-Royce CEO Warren East this morning.
9.50am: HP signs big lease
In the largest west of Scotland industrial transaction of the year so far, Hewlett Packard Enterprises has committed to a new ten-year lease at the Bishopton Campus in Erskine with landlord DXC Technology.
9.35am: SPFL reaches deal with Anderson
The SPFL Trust has received the single biggest personal donation in Scottish football history.
James Anderson, a fund manager and partner with Baillie Gifford, has gifted the charity more than £3 million and has promised further donations.
9am: Wind farm investment
Scotland’s seabed is being opened up for new wind farm projects for the first time in a decade with the launch of a new round of leasing by Crown Estate Scotland.
8.30am: London opens higher
London-listed stocks opened higher after two days of declines. Banks and life insurers led gains in early trading.
The blue-chip FTSE 100 gained 0.8%, while British mid-cap index rose 1.1%.
Today’s focus remains on the Fed’s economic outlook and chairman Jerome Powell’s speech following the release of a policy statement.
7.30am: Overseas property deals due
Overseas investment into the Scottish property market has slowed but a number of deals are ready to be completed once the Covid-19 crisis is over, according to Colliers International.
7am: Restaurant Group CVA
The Restaurant Group plans to close 125 Frankie & Benny’s outlets, reducing the size of the group’s estate to 160. It aims to cut its rents by the implementation of a company voluntary arrangement.
The remaining 85 group sites are subject to a reduction in rental costs and revised lease terms.
There are approximately 65 leisure trading sites which will be unaffected by the CVA.
Melanie Leech, chief executive, British Property Federation (BPF) comments: “These situations are never easy, particularly now for the retail and hospitality businesses on our high streets at the sharp end of the Covid-19 pandemic.
“Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.
“The Restaurant Group and Alix Partners engaged with the BPF before launching this CVA proposal. This has provided us an opportunity to improve understanding of property owners’ interests and concerns, but ultimately it will be for individual property owners to decide how they will vote on the CVA.”
Quiz Clothing restructures
Fashion retailer Quiz Clothing is renegotiating leases on most of its loss-making standalone stores after putting Kast, the subsidiary which operates them, into administration.
Segro raises size of placing
Property owner Segro is looking to set up pre-let development projects as well as acquisitions of land and investment assets.
It has increased the size of the placing announced late on Tuesday to £680 million from £650m after high demand.
The FTSE 100 REIT placed 82m shares at 820p each, at a 4.5% discount to Tuesday’s closing price, representing 7.5% of its issued ordinary share capital.