Category Archives: Business

EU could block millions of Covid vaccine doses from entering UK

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European commission says new mechanism will give national regulators power to refuse exports

Millions of doses of coronavirus vaccine could be blocked from entering Britain from the EU within days after Brussels said it had to respond to shortages emerging in member states.

Following reports of a lack of doses across the bloc, the European commission announced plans to give national regulators the power to reject export requests. The development raises concerns over the continued flow of the Pfizer/BioNTech vaccine, for which the UK has a 40m-dose order, from its plant in Belgium.

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GameStop shares plunge after ban by Robinhood app

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Meteoric rise fizzles out after small investors are barred from trading in groups that had soared in value

Small investors mounting an assault on Wall Street speculators suffered a setback on Thursday as trading platforms banned them from buying more shares in GameStop, spawning conspiracy theories, political intervention and at least one lawsuit.

Amateur trading app Robinhood stopped users from investing any further in GameStop – a US chain of video games stores – and seven other companies on Thursday, after an extraordinary rise in their value, spurred by users of the chat forum website Reddit, that cost some hedge funds billions of dollars.

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GameStop: how Reddit amateurs took aim at Wall Street’s short-sellers

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Analysis: Understanding short-selling enabled amateur traders to beat hedge funds at their own game

The co-ordinated effort by users of the online forum Reddit to drive up the share price of GameStop and other companies is designed to turn the screw on short-sellers.

To the layman, the dynamics at play here can seem dizzyingly labyrinthine.

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Mining giant Glencore faces human rights complaint over toxic spill in Chad

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Dozens of villagers, including children, claim they suffered severe burns and sickness after contact with contaminated water

The UK government has accepted a human rights complaint against mining and commodities giant Glencore regarding a toxic wastewater spill in Chad, where dozens of villagers – among them children – claim they suffered severe burns, skin lesions and sickness after contact with contaminated water.

The complaint, brought by three human rights groups on behalf of affected communities, alleges environmental abuses and social engagement failures by the FTSE-100 company in relation to two spillages, the wastewater spill and an alleged oil spill, both in 2018.

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White House ‘monitoring’ GameStop share surge as US hedge fund pulls out

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Melvin Capital Management had bet on failure of store before small investors sent shares soaring

The White House has said it is “monitoring” the extraordinary surge in the share price of ailing video games retailer GameStop and other companies amid a surge of bets by small investors discussing their investments online.

Wednesday’s announcement by the press secretary, Jen Psaki, came as the Treasury and the Securities and Exchange Commission said they were “aware of and actively monitoring the ongoing market volatility in the options and equities markets”.

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Britain and EU clash over claims to UK-produced Covid vaccine

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EU health commissioner dismisses AstraZeneca argument it is contractually obliged to supply UK first

Britain is on a collision course with the European Union over vaccine shortages after Brussels refused to accept that people in the UK have first claim on Oxford/AstraZeneca doses produced in local plants.

The EU’s health commissioner outright dismissed on Wednesday an argument made by Pascal Soriot, the Anglo-Swedish company’s chief executive, that he was contractually obliged to supply the UK first.

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Why the EU and AstraZeneca are stuck in a Covid vaccines row

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Explainer: AstraZeneca’s Pascal Soriot gives insight into ‘glitches’ that constrained production

The chief executive of AstraZeneca has dismissed suggestions that the UK is being unfairly prioritised for Covid-19 vaccine doses, in a wide-ranging interview revealing “glitches” that have constrained production.

Pascal Soriot offered the deepest insight yet into a scientific process that has been dragged into the political sphere, as leaders in Brussels and several EU capitals voiced anger that Europe will not get the vaccine as quickly as hoped.

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Keep Covid rescue programmes or risk triggering stock market crash, warns IMF

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International Monetary Fund says there are concerns about share price bubble

Governments and central banks must maintain their pandemic rescue programmes or risk triggering a stock market crash, the International Monetary Fund has said.

Warning that there were legitimate concerns about a share price bubble, the Washington-based organisation said that without continued low interest rates and government subsidies it was possible a “correction” in stock markets would occur.

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Boeing 737 Max cleared to fly again by EU regulator

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The UK’s Civil Aviation Authority will certify the plane separately

Boeing’s 737 Max aircraft has been given the green light to return to the skies in the EU by the European Union Aviation Safety Agency (EASA), after a 22-month grounding following two fatal crashes.

Marking a crucial step in its return to service, a modified version of the US company’s previously bestselling aeroplane has been given permission to fly again, although not until a package of checks and training is completed.

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How GameStop found itself at the center of a groundbreaking battle between Wall Street and small investors

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The video game retailer has become one of the hottest stocks this year in a tale that illustrates the changing face of investing

The coronavirus pandemic hit GameStop hard. Like many retailers, already suffering from the shift to online sales, the video games chain is losing money and plans to close 450 stores this year. And yet, surprisingly, GameStop has become one the hottest stocks of the year.

The 37-year-old chain store group is now the focus of a David-and-Goliath battle between an army of small investors and Wall Street that shows no signs of abating and has highlighted some fundamental shifts in investing.

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‘Pleasure ripped out’: the people suffering long-term loss of taste after Covid

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Those in professions that rely heavily on taste and smell fear the loss of their careers

Around three weeks after Covid-19 completely took away her sense of smell and taste, Maggie Cubbler had a beer. It was a pale ale she’d had before and, to her excitement, it tasted wonderful – just as she remembered. She was ecstatic to feel she was on the road to normality, but she soon found that recovery from Covid is by no means linear.

“After that I started noticing that many things started smelling terrible – like absolutely revolting – and one of them was beer.” For a beer sommelier and writer of ten years, this was a devastating and isolating development. When the pandemic halted her beer travel business and decimated the industry generally, Cubbler had pivoted into doing a beer podcast. Now, with her sense of taste still muted and the source of her livelihood unbearable to smell, her career has been thrown into uncertainty.

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HSBC denies taking political stance over China’s crackdown in Hong Kong

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Bank’s chief executive, Noel Quinn, claims business not in position to question police requests

HSBC’s chief executive has denied taking a political stance on China’s crackdown in Hong Kong, claiming the bank was not in a position to question police requests when it agreed to freeze accounts of pro-democracy activists.

Questioned by MPs on the foreign affairs committee on Tuesday, Noel Quinn ruled out exiting the Hong Kong market in light of Beijing’s controversial new security laws, saying it “would only harm” local customers.

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EU means business over Covid vaccine exports, says Von der Leyen

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Commission president says firms must deliver on orders after AstraZeneca warns of shortfall

The EU “means business”, Ursula von der Leyen has said, as the bloc doubled down on plans for tighter monitoring of vaccine exports to countries outside of the union, such as the UK.

Speaking at the World Economic Forum, the president of the European commission said the EU had invested billions and “companies must now deliver” to the 27 member states.

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Xi Jinping warns of ‘new cold war’ if US keeps up protectionism

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In virtual address to World Economic Forum, Chinese president calls for multilateral approach to crisis

China’s president, Xi Jinping, has sent out a warning to Joe Biden that he risks a new cold war if he continues with the protectionist policies of his predecessor, Donald Trump.

In an address to the virtual World Economic Forum event, Xi called for a multilateral approach to solving the economic crisis caused by Covid-19 and said the pandemic should not be used as an excuse to reverse globalisation in favour of “decoupling and seclusion”.

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Someone you loved: how British pop could fade out in Europe

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Brexit rule changes that make it tricky to tour the EU will hold back UK artists from a fast-growing market

Limiting UK artists from working and touring in the EU post-Brexit will destroy the development of British music, say European industry experts, amid thriving competition from German rap, Spanish pop and more.

British artists now face the need for visas, work permits and equipment carnets when working in the EU, with emerging acts most likely to feel the impact of this costly and time-consuming admin. Over the last month, the UK and the EU have blamed each other for the inability to strike a deal to help the creative industries.

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Dr Martens bosses and backers set for huge windfall in £3.5bn float

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UK footwear brand expected to launch market listing on Monday, with CEO in line for stake worth £58m

The British footwear brand Dr Martens is expected to launch a stock market flotation on Monday that would value the Northamptonshire firm at £3.5bn and generate a huge windfall for its bosses and backers.

The company, known for its boots with chunky air-cushioned soles and distinctive yellow stitching, was owned until 2013 by the Griggs family, who sold to the private equity investment group Permira for £300m but retained a near-10% stake. Just seven years later the business has soared in value and when it lands on the stock market will create numerous multimillionaires.

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Move to EU to avoid Brexit costs, firms told

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Exporters advised by Department for International Trade officials to form EU-based companies to circumvent border issues

British businesses that export to the continent are being encouraged by government trade advisers to set up separate companies inside the EU in order to get around extra charges, paperwork and taxes resulting from Brexit, the Observer can reveal.

In an extraordinary twist to the Brexit saga, UK small businesses are being told by advisers working for the Department for International Trade (DIT) that the best way to circumvent border issues and VAT problems that have been piling up since 1 January is to register new firms within the EU single market, from where they can distribute their goods far more freely.

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‘A Brexit nightmare’: the British businesses being pushed to breaking point

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Less than a month after leaving the EU, trade is flowing so badly that small firms are moving operations abroad to survive

Christophe Fricke lectures in German at the University of Bristol and adores living in England. He was born in Germany but his anglophilia became so strong after moving here that he wrote a book called 111 Gründe, England zu lieben (“111 Reasons to Love England”) in 2018. He selected the gardens of Cornwall, the National Portrait Gallery, the way the English use collective nouns for groups of animals (herds, packs, and so on) and their fascination with murder cases in his varied list of reasons for loving this country.

But since 1 January, Fricke has been reminded that there are also worrying things about life in England – and being outside the EU is now chief among them.

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The strange case of Alibaba’s Jack Ma and his three-month vanishing act

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The ebullient tech tycoon embarrassed China’s leaders and went missing. Now he’s back, but seems far less outspoken

Wearing burgundy lipstick and a long peroxide wig, the diminutive entrepreneur who would soon become China’s richest man took to the stage and belted out Can You Feel the Love Tonight? from Disney’s The Lion King.

Jack Ma, chief executive of e-commerce giant Alibaba, had earned the right to make a spectacle of himself. On that day in September 2009, in front of 16,000 adoring employees packed into Hangzhou’s Yellow Dragon stadium, the eccentric but iron-willed former English teacher was celebrating. He had built a bona fide tech champion, China’s answer to Amazon, eBay and PayPal rolled into one.

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New Covid infections pose challenge to China’s growth and Xi’s leadership

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The leader has declared victory over the virus, but a fresh outbreak is complicating the narrative

When Britain was in its second lockdown last November and the economy was contracting, China’s quarterly growth rate was hitting 6.5%. Figures last week showed that for the full year, the world’s second-largest economy could boast a growth rate of 2.3% while all its rivals in Europe and the Americas were going backwards.

The trend could be traced back to Beijing’s efforts to tackle the virus – albeit after a period of denial – and keep infection rates among the lowest in the world.

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