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Wednesday Update

DB Live: Loganair job cuts; Quiz lifted; STV; AstraZeneca setback

5.30pm: Loganair job cuts

Jobs at five Scottish airports could be at risk after Loganair announced 68 potential redundancies across its UK operation.

The airline said staff at airports in Glasgow, Aberdeen, Edinburgh, Dundee, and Inverness may be affected.

It said the closure of its base at Chester would be its “largest single step” with regard to the potential job losses.

The firm currently employs about 850 people.The company said 23 of the roles under threat are in Chester, with the remainder in Scotland.

4.45pm: Weak pound helps FTSE 100

The FTSE 100 index closed higher and over the 6,000 level as Brexit weakened the pound and benefited exporters.

Britain’s top share index closed up 82 points (1.39%) at 6,012.

4.30pm: Tiffany sues LVMH

Tiffany & Co has filed a lawsuit in the Court of Chancery of the State of Delaware against LVMH for abandoning the agreed $16bn takeover.

It had been rumoured that the deal was in trouble as the luxury goods sector has been hit by the coronavirus pandemic.

The US jeweller accused LVMH of being deliberately slow in getting the regulatory approval for the deal.

4pm: Lloyds revives cuts

Lloyds Banking Group has revived plans to cut jobs announced before the pandemic and which had been put on hold.

Full story here

8.30am: Kardashian show to end

The long-running TV reality show about the Kardashian family will end next year.

Full story here

7am: Lloyds action halted

The Competition and Markets Authority (CMA) has stopped Lloyds Banking Group forcing small business customers to open business current accounts when taking out Bounce Back Loans.

The action comes after Lloyds Banking Group notified the CMA that it had not complied with certain legal undertakings to protect customers from anti-competitive practices.

The CMA found that Lloyds breached these undertakings from 8 May 2020 onwards by requiring around 30,000 customers that were running the finances of their business through a personal current account (PCA) also to open a BCA with them in order to obtain a loan through the government’s Bounce Back Loan Scheme. This scheme is intended to help businesses access finance quickly during the coronavirus (COVID-19) pandemic.

Lloyds has agreed to a number of actions to become compliant and make sure all affected customers are made aware of their options.

Quiz ‘encouraged’

Quiz

Quiz Clothing said total sales between 1 April and 31 August fell 77% to £12.8m on the £55.2m revenues generated in the same period last year.

The Glasgow-based company said it is “encouraged by the consistent improvement in like-for-like sales in recent weeks.”

The group has £6.1m cash available and £3.5m of bank facilities which are currently scheduled to expire on 31 October and which the group intends to renew.

STV farm series

STV Studios has been commissioned to produce a new factual series for Channel 5 helping British family farms transform into successful new businesses.

Our Family Farm Rescue will highlight how creative British farmers need to become when faced with uncertainty. 

Set in four locations across the UK, the series will see a group of farmers being given expert advice as they change their farms and set off in a new direction.

Tullow Oil loss

Tullow Oil slumped to a half-year loss of $1.3 billion, compared with a $103m profit last year. 

It said it was evaluating “various refinancing alternatives with respect to the group’s capital structure” and expected to hold to a capital markets day before the end of the year. 

Half year revenues slipped to $731m from $872m the same time last year.

The company is close to completing the sale of its interests in Uganda. 

Markets: AstraZeneca adds to tech woes

The technology rout continued on Wall Street with Dow Jones Industrial Average closing 2.25% lower while the S&P 500 fell 2.78% and the Nasdaq slumped 4.11% to 10,847.

The tech-heavy Nasdaq is now trading at around 10% off its record high on 2 September, placing it in correction territory and worrying many investors that the tech bubble may be bursting.

News from pharma giant AstraZeneca that it is putting its coronavirus vaccine trials on hold due to the illness of a participant.

The vaccine, developed with Oxford University, is said by the World health Organisation to be the most advanced and was expected to be rolled out by President Donald Trump ahead of the November election.

The selloff gathered pace in the Asian markets on Wednesday morning, with Japan’s Nikkei 225 down 1.16% while Hong Kong’s Hang Seng falling 0.91%.

Today’s agenda

Internal market bill introduced to the House of Commons (see below)

Today’s top Daily Business headlines

Gatherings of more than six to be banned in England

Internal market bill opens up new border divisions

Fans to be admitted for ‘test’ football games

Interview: Alan Faichney, serial tech director



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