Good morning and welcome to the IC’s live blog, where our writers round up the biggest business stories of the day and the weekend.
Cyber attack threatens major US pipeline
News rolled in from across the Atlantic late on Friday that the Colonial Pipeline – the largest refined products pipeline in the US – had suffered a cyber-attack, forcing it to take its systems offline and halt all operations. The pipeline typically transports more than 100m gallons of fuel every day to meet the energy needs of consumers from Texas to New York.
Reflecting the importance of the pipeline – and arguably exposing vulnerabilities in America’s critical supply chains – the transport department announced on Sunday evening that it had stepped in with emergency measures. The government eased restrictions on motor carriers of fuel via a ‘temporary hours of service exemption’ allowing gasoline, petrol and other products to be transported by road to help with shortages.
Colonial’s problems (and thus America’s) have been linked to a ransomware attack, whereby essential files are usually encrypted and money is demanded from the victim. The proliferation of data breaches in recent years has spurred the ascent of various cyber-security companies across the globe, with Darktrace (DARK) being the latest to float in the UK. The group is currently valued at £2.3bn.
Greggs rebounds
Turning to the London market, sausage rolls were on the agenda on Monday morning as Greggs (GRG: Buy, 14 Apr 2021) said full-year profits could be around 2019 levels – “materially higher” than its prior expectations. Shares in the food-on-the-go retailer shot up 8 per cent at the open.
In a sign that consumers were returning to physical stores as the nation comes out of lockdown, Greggs said it had observed “a strong recovery in sales level following [the] easing of restrictions”.
Reopening confirmation to come
Meanwhile, fresh from strong election results last week prime minister Boris Johnson is expected to confirm the next stage of the opening up of the UK economy later today. From 17 May, hospitality indoors will open up including pubs, cinemas and hotels and people will be allowed to hug close friends and relatives. But will it encourage more people to return to the office? And what does this mean for travel companies - read Oliver Telling’s report on whether George Soros is wrong about Trainline.
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