Manifestos' tax shake-up
Opposition parties Labour and the Liberal Democrats revealed plans to increase income tax, in addition to abolishing the annual exemption from capital gains tax, which currently stands at £12,000. Prime minister Boris Johnson would leave corporation tax at 19 per cent, while Jeremy Corbyn and Jo Swinson said they would ramp it up to 26 per cent and 20 per cent, respectively. However, Mr Johnson ditched planned cuts to income tax for the UK's highest earners.
Uber loses London
TFL drops licence
Uber lost its London licence for a second time after the city’s transport regulator found that its service was “not fit and proper”. The car-booking app has around 3.5m users in London and 45,000 drivers – but Transport for London is concerned that technical glitches allow for driver fraud. Uber will appeal the decision, as the global tech company is challenged again to adapt to local regulations. Uber chief executive Dara Khosrowshahi tweeted that the regulator’s rule was "just wrong". New ride-hailing apps are beginning to crop up in London in the shape of Bolt and Kapten.
Babcock wins contract
For 12 submarines
Babcock (BAB) will build the weapons handling systems for 12 of the Australian Navy’s new ‘Attack’ submarines. Babcock’s work, which will begin immediately, will account for around £1bn of an overall AU$50bn (£26.4bn) Australian government programme. The defence engineering group’s remit involves the operation and support of the submarines, including managing the local supply chain in the production of components for the weapons handling system. The initial design phase will take place in Bristol in the UK before the group's Australian outfit – which has supported the Collins weapons system for over 20 years – takes control of the project.
TSB shutting branches
Cost-cutting
TSB will shut at least 15 per cent of its branches as it launches a three-year strategy to restore the bank’s competitiveness. The bank will close 82 branches in 2020, affecting up to 400 jobs. Back-office roles will also be cut as part of the company’s efforts to reduce costs. TSB’s new management team was appointed following a technology error last year that left hundreds of thousands of customers unable to access their accounts for days. Chief executive Debbie Crosbie said in a statement: “The plan we’re sharing today involves some difficult decisions, but it sets TSB up to succeed in the future.”
Sports Direct rebrand
To 'Frasers'
Sports Direct (SPD) announced plans to change its name to Frasers, as part of its strategy to “elevate its retail proposition”. Management argued the rebranding will reflect its shift from solely a sports retailer to “the holder of a diversified portfolio of sports, fitness, fashion and lifestyle fascias”. The group’s shift away from its core sports business has not gone smoothly. It acquired House of Fraser for £90m in August 2018, but chief executive Mike Ashley has since expressed regret over the purchase, saying the group might have opted not to buy it “if we had the gift of hindsight”.
Risers and fallers (%)
| AO WORLD | +23.48 |
| CLIPPER LOGISTICS | +22.68 |
| PETS AT HOME GROUP | +20.29 |
| ASTON MARTIN LAGONDA GLOBAL HOLDINGS | +19.82 |
| STHREE | +16.9 |
| DE LA RUE ORD | -26.7 |
| HOCHSCHILD MINING | -15.56 |
| SIGNATURE AVIATION | -15.37 |
| METRO BANK | -11.41 |
| ROYAL MAIL | -10.88 |
Week to 26 November 2019
FCA acts on mini-bonds
Blocks mass-marketing
The Financial Conduct Authority (FCA) banned the mass marketing of so-called mini-bonds to retail investors after a series of scandals left savers nursing millions of pounds of losses and questions over the products’ regulatory oversight. The restriction will come into force on 1 January, ahead of the upcoming individual savings accounts (Isa) season, and will last a year while the watchdog consults on making permanent rules. The move comes a year after the FCA froze the accounts of London Capital & Finance (LCF) over concerns that the company’s marketing of mini-bonds was misleading. LCF subsequently collapsed, with £236m of savers’ cash.
British American Tobacco climbs
Following regulation delay
The US Food and Drug Administrations (FDA) delayed plans to reduce the amount of nicotine in cigarettes, prompting a jump in British American Tobacco’s (BATS) share price. The plans disappeared from the FDA’s agenda in November, although a spokesperson said the omission “does not mean the agency does not consider them a priority or will not continue to work on their development”. Cigarettes remain the core source of revenues for BATS, despite recent forays into new product areas such as vaping. Management revised down growth expectations for vaping in its recent trading update due to pressures in the US, but added it should lead to a tightened regulatory environment “in which we are well placed to succeed”.
