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Housebuilder Vistry has removed chief operating officer Earl Sibley in the wake of an accounting blunder that will reduce profits by £165m. Vistry said scrapping his role will reduce “the length of reporting lines” and “ensure closer proximity of the chief executive to the business.” Dan Coatsworth, an investment analyst at AJ Bell, said the “embarrassing” accounting error, which saw Vistry issue two profit warnings in quick succession, “seems to have prompted chief executive Greg Fitzgerald to change the reporting structure so he is closer to the engine room.” It is noted that some investors are said to be concerned about Fitzgerald’s role as executive chairman, a position which means he is effectively chairman and chief executive.

 

Daily Mail

Stephen Haddrill, the director general of the Finance and Leasing Association, has criticised the Financial Conduct Authority (FCA), telling a House of Lords’ Financial Services Regulation Committee that the regulatory regime “is not conducive to lending in a number of respects, and that is damaging to investment.” Haddrill said a recent court ruling that it was unlawful for car dealers to get commission from lenders without obtaining the customer’s consent highlighted “the inconsistency between the law and regulation.” Anthony Coombs, chair of motor finance company S&U, told the committee: "The FCA is not fit for purpose, at least as far as our sector is concerned. It is oppressive, it is deterring investment in the industry, it is inconsistent, and gradually it is smothering our section of the financial services market."

 

City AM

The Times

BBVA has announced a series of commitments aimed at securing approval from Spain's antitrust regulator for its proposed takeover of Banco Sabadell. The bank's measures focus on "ensuring financial inclusion, bolstering lending to SMEs, and enhancing competitiveness." Key initiatives include a pledge to keep branches open in underserved areas and maintain credit lines for SMEs for 18 months. The regulator has indicated that BBVA's all-share offer, initially valued at €12.28bn, will undergo a prolonged review process that may extend into 2025.

 

Reuters

Sector regulator Ofgem has announced that E.On will hand £14.5m to customers with pre-payment meters due to a billing error. The energy supplier failed to pay the credit in the accounts of customers who had ended their contract in a mandatory six-week window, an error that Ofgem has described as "unacceptable." Around 100,000 customers will receive compensation at an average of £144 each. While the credit amounted to £4.7m, E.On is required to pay £6.6m compensation and has voluntarily agreed to pay £3.2m.

 

BBC News

Ofwat is set to announce that a £195,000 bonus for Thames Water chief executive Chris Weston should not be funded by customers. The regulator will assert that bonuses must be covered by the company's owners and lenders, especially as Thames Water faces severe financial difficulties, with the firm carrying debts of £18bn. Ofwat has the power to prevent bonuses from being paid by customers if performance targets are not met.

 

BBC News

The Competition and Markets Authority is to hold a review into whether it should more frequently use “behavioural remedies” when approving deals, amid claims the agency is holding back Britain’s growth. 

 

Financial Times

French luxury company Hennessy is considering a plan to bottle cognac in China, prompting hundreds of workers at its plant in southwestern France to go on strike. The LVMH-owned company is considering all options to cope with antidumping measures imposed by Beijing, including shipping cognac to China for local bottling. China is the second-largest export market for cognac and the industry's most profitable territory. Hennessy is also considering shipping cognac to China to circumvent tariffs, but it would be a "disaster" for workers, said Michael Lablanche, a regional representative for the CGT labour union. Approximately 500-600 staff in the Charente region expressed their concern over the experimental plan. Frederic Merceron, a representative from the FO union, said: "We can well imagine the impact on employment".  The strike, which is open-ended, is indicative of broader fears within the cognac industry regarding potential retaliatory measures from China and the impact on jobs.

 

France 24

Reuters

Volkswagen spends a higher proportion of sales on labour costs than major rivals, according to company and industry data reviewed by Reuters which highlights the automaker's challenge to remain competitive in its pricey home market as cheaper models from China arrive. Part of the reason why VW spends more on labour is that it makes many components, and software, in-house, Stifel analyst Daniel Schwarz said. "The VW brand has been market leader in Europe every year since 2005 . . . its cars are competitive. The problem is not the product, but the costs," he told Reuters.

 

Reuters

Ford will cut around 4,000 jobs in Europe by the end of 2027, including 800 in the UK. The cuts represent around 14% of the firm’s European workforce. The announcement marks the second time Ford has reduced its headcount in recent years, having cut 1,300 jobs in the UK in 2023. Lisa Brankin, head of Ford Britain and Ireland, said the automotive industry “is going through a period of massive disruption,” with firms facing “unprecedented competition, regulation and lots of economic headwinds.” She added that Ford is hoping to reduce the size of its workforce through voluntary redundancies.

 

BBC News

Buyout group Cinven is acquiring a stake in Grant Thornton UK, beating competition from rival private equity groups and Grant Thornton's sister firm in the US, which had proposed a merger.

 

Financial Times

Gatemore Capital, an activist investor with a 1% stake in YouGov, has urged the polling firm to review its business and consider a sale. Liad Meidar, managing partner at Gatemore, said: "We are deeply confident in YouGov's fundamental strengths and long-term potential. However, urgent actions are needed now to help the company chart a path towards realizing its intrinsic value." YouGov's share price has fallen 63.7% so far this year.

 

Reuters

The Times

Shareholders in recruitment firm Hays have staged a protest over the reappointment of PwC as its auditor, with more than 20% voting against the proposal. The AGM also saw 19.8% of shareholders vote against how much PwC is paid for its work. Data shows that PwC was paid £2.7m for its services in the year to June 30.

 

City AM

Insolvencies in the hospitality sector have increased by 5% year-on-year, according to analysis by RSM UK, with 3,679 bankruptcies reported in the year to September 2024, up from 3,490 the previous year. Saxon Moseley, head of leisure and hospitality at RSM UK, warned that the industry is facing "the calm before the storm" as upcoming Budget measures, including a reduction in business rates relief and increases in the national minimum wage, are set to exacerbate financial pressures.

 

Daily Mirror

Steve Hare, chief executive of software firm Sage, believes that more businesses will replace workers with AI as tax hikes will increase efforts to cut costs. He said that while a “trend towards a more digital economy was already there,” measures set out in the Budget are likely to accelerate it. Hare said Sage does not want to replace staff with AI, insisting that the company will utilise the technology to “elevate the work of humans.”

 

Daily Mail

Mark Parsons, the head of the £800m supercomputer project cancelled by the Labour government, has warned the UK risks stifling “science and innovation” by not investing in the advanced technology.

 

Financial Times

The Resolution Foundation has warned that almost 1m UK workers have been "lost" due to inaccurate and unreliable official data. The think-tank has accused the Office for National Statistics (ONS) of misrepresenting trends in the job sector, saying it has underestimated employment growth by 930,000 workers since 2019, producing an “overly pessimistic picture” of the UK labour market. The ONS has itself expressed concerns about the accuracy of data from its Labour Force Survey due to poor response rates since the pandemic. The Resolution Foundation has developed its own estimate of UK employment, using HMRC payroll and self-employment data, and says the employment rate could be around 76%, rather than the official rate of around 75% reported by the ONS.

 

Daily Mail

Daily Mirror

Office for National Statistics (ONS) data shows that inflation has risen back above the Bank of England’s 2% target, climbing to 2.3% in October. This exceeds the 2.2% rate forecast by economists and is up on September’s 1.7%. The increase was driven by a rise in energy bills, with regulator Ofgem having increased its price cap by 9.5%. Joe Nellis, economic adviser at MHA, noted that the increase marks the biggest rise in inflation since October 2022.

 

BBC News

Financial Times

The Supreme Court has ruled in favour of the Public and Commercial Services Union (PCS) in a landmark case confirming that the union can, as a third party, sue government departments for losses it suffered as a result of the removal of its members' rights to pay so-called check-off payroll deductions for union dues. The decision overturns the previous ruling of the Court of Appeal, enabling the union to sue for the loss of check-off, a practice long used by civil service staff to pay union dues directly through payroll deductions. The amount deducted was then forwarded to the union or relevant third party, such as a charitable fund or loan repayment institution. Ann Rooney, a lawyer for the PCS, said the ruling sends "a strong message to employers that they can't just tear up agreements workers rely on."

 

The Times