Luxury fashion retailer Burberry has called on the government to scrap controversial post-Brexit tourist tax after seeing a surge in British tourists shopping in Paris and Milan. CEO Jonathan Akeroyd said that growth in London sales has been far weaker in comparison. The UK axed VAT-free shopping for tourists this year, putting visitors off spending. Burberry has been one of the most vocal opponents of the policy, with chairman Gerry Murphy last month calling Britain the “least attractive” shopping destination in Europe thanks to the measure. Burberry’s call adds to growing frustrations from luxury chiefs over the so-called tourist tax.
The Bank of Canada is more concerned about the risks of high household debt to the Canadian financial system, according to its latest financial system review. The central bank said higher borrowing costs meant more households could face financial pressure in the coming years, while a decline in housing prices reduced homeowner equity. It suggested a severe global recession causing housing prices to drop would lead to more loan defaults and sizable credit losses for Canadian banks if such defaults happened among uninsured mortgages with negative equity on a large scale. Additionally, the bank warned financial stability could also be threatened by a potential major cyber attack or extreme weather events associated with climate change.
Buy-to-let landlords have seen repossessions of properties rise by 28% in Q1 2023, to total 410, while a tally of landlords facing mortgage payment arrears rose 16% to 7,030, hitting the highest level since the pandemic began. Red tape, higher taxes and rising interest rates have squeezed the market, with landlords now unable to offset mortgage payments against taxes on rental income. A government order to insulate and refurbish properties to meet net zero targets has added to landlords' costs. Home repossessions are also rising, up 50% to 750 in Q1 2023, the highest level since Q1 2020.
The end of a school year can raise questions about whether to give teachers gifts to show gratitude for their efforts. Combinations of economic factors and cultural and board guidelines on such presents can make it a tricky decision for parents, as in some cases a gift may not even be expected or required. However, teachers in Toronto have suggested giving small, personalised tokens expressing student and teacher connections may be appreciated, such as cards or crafts, books and gift cards. Asking about a teacher’s ancillary interests may also provide ideas for a closing gesture, which might be an emotional boost in a year hit by increasing numbers of teachers quitting, a widely-reported trend throughout the pandemic.
Supply chain management is one of the most critical fields globally, touching every aspect of life, from the food people eat to the clothes they wear and the medicines they take, said Cameron Trewin, president of Linfox Intermodal. Supply chain roles often attract candidates with diverse educational backgrounds, from finance to science or engineering. Both Trewin and Tom Vicars, director of procurement and logistics at The Arnott’s Group hire people that can navigate high-pressure and uncertain environments, are resilient and can help cross-functional teams from disruption to solution.
Beyoncé’s Renaissance tour could have a bigger impact on fashion trends this summer than even the catwalk, according to a report in The Telegraph. After the first show of the tour, Google data showed that searches for “metallic cowboy boots” had skyrocketed by 488%, while “silver bodysuit” was up 426%, a huge increase on the previous day. These figures reflect the impact of Beyoncé’s choice of fashion in popular culture. The star is wearing at least nine specially-designed outfits, with contributions from a large number of high-profile designers. The tour will run throughout Europe until 31 July.
Queen Elizabeth II’s funeral cost taxpayers £162m, which has encouraged a discussion over whether the Royal Family is worth the cost. The British government funds the King’s official business through an annual payment from the “Sovereign Grant”. Additionally, the monarch receives approximately 15% of the profits from the Crown Estates, including London's Regent Street. The Royal Family is invaluable for attracting tourism to the UK, pumping hundreds of millions of pounds into the country, generating almost £10m in income to supplement the Sovereign Grant. The Royal Family is a connection to a rich history and heritage that millions of people globally travel to see.
The UN's humanitarian chief, Martin Griffiths, is in discussions with Lloyd's to secure insurance coverage for Russian agricultural exports to developing countries suffering from high food prices. Griffiths said the UN is liaising at all levels of the private sector, including Secretary-General Antonio Guterres, as the organisation seeks to ensure it can facilitate Russian food and fertiliser exports. The country has complained that sanctions have hurt its shipping, insurance and financing situations, although the implementation of wheat exports via other ports appears to belie the claims.
Aston Martin has raised £500m ($687m) in capital from a new partnership with Chinese carmaker Geely, taking the value of the beleaguered luxury car manufacturer to £2.17bn. The proceeds will be used to support the firm’s push into electric vehicles, as well as infrastructure and brand expansion. It is the fifth fundraise since billionaire Lawrence Stroll took control of the company in 2020 and will also help pay off a portion of the firm’s £870m debt.
Paparazzi photographers have said they were not responsible for a “near catastrophic car chase” involving the Duke and Duchess of Sussex in New York. Freelance photographers who were covering the couple’s visit said the couple had not been at any point “in immediate danger”. They suggested the vehicles used by the Sussexes’ security escort may have driven dangerously, potentially “blocking off streets”. Backgrid USA, a celebrity news service, is investigating allegations that the couple’s safety was put at risk by paparazzi. Photographers from the company denied that they had been involved in any near misses, stating that the duchess had been photographed smiling in the back of a taxi following an award ceremony. Meanwhile, the UK Treasury has revealed that the state funeral of Queen Elizabeth II cost the government an estimated £161.7m. The event, which took place at London’s Westminster Abbey in September 2022, was preceded by an 11-day period of national mourning.
Workers should "actively fight back" if their employers seek to roll back remote working after the pandemic, according to Microsoft executive Lucy Cooper. Speaking at a conference, Cooper insisted that such a step would hit parents, young people and those with non-standard working environments particularly badly. Workers at main UK bank Lloyds have criticised the company at its AGM over plans to tighten rules on flexible working arrangements. Microsoft has so far committed to a hybrid model of work, requiring staff to come into the office for around 50% of their working time unless they have permission to work from home.
Canadian small businesses will likely see no benefit from the government's announcement lowering credit-card transaction fees. The government had promised since the 2019 election to cut the transaction fees for small businesses. In the 2023 budget tabled in April, Ottawa reportedly said a deal with Mastercard and Visa was forthcoming, but the details of the deal were not released until Thursday, when businesses that receive less than $300,000 in annual revenue through Visa credit cards and less than $175,000 in annual revenue from Mastercard customers will qualify for reductions. However, many business associations have said the sales threshold is so low that many businesses will not qualify.
Leaders of sports organizations in Boston, including New England Patriots owner Jonathan Kraft, joined Massachusetts Governor Maura Healey to unveil Boston Soccer 2026's branding initiatives for the state's participation in the 2026 World Cup. The competition, which will stage matches across the US, Canada and Mexico, is expected to generate hundreds of millions of dollars for the Boston area as well as draw 400,000 visitors to its 16 matches. Gillette Stadium in Foxborough, owned by Kraft Sports Group, is among the venues slated to host games.
Asda is facing accusations of a "fire and rehire" strategy by trade union GMB, which claims that 7,000 employees at 39 stores in the south will lose location-based pay supplements and face salary cuts for night shifts. GMB alleges that Asda may dismiss members of staff who refuse to sign the new terms and conditions offered. An Asda spokesman stated that discussions are ongoing with a “small number of stores outside the M25” that offer a "legacy supplement" of 60p per hour, though the statement added that "no final decision has been taken".
The US and Taiwan have reached a trade agreement which will cut red tape and waiting times for US businesses seeking to export to Taiwan, while also committing to measures to combat corruption, and boost small and medium enterprises. The deal does not require the approval of Congress. The agreement is being viewed as a modest first step towards "a robust and high-standard trade agreement".
Elon Musk, Twitter owner, has called for an audit of Microsoft as one of its apps reportedly accessed information from Twitter without notifying the company. Musk's lawyer has sent the demand letter regarding alleged misuse of Twitter user data by Microsoft, despite the tech giant's partnership with the social media platform. Details of how the data was used or where it went remain unclear, but Musk has suggested that Microsoft has used Twitter data to develop AI language systems, calling this "illegal”.
Leaders of the Group of Seven advanced economies (G7) have discussed how to build support for a “strong response to economic coercion” by China. Ahead of a summit in Hiroshima, US officials predicted a joint response from all countries, which will involve protecting technologies in areas of national security. The EU has also been seeking to create support for a strategy against economic coercion, to “derisk” rather than disconnect from, China. However, all seven members of the G7 require a positive relationship with the world’s second-largest economy. The US imported goods amounting to $537bn from China last year, while its businesses invested nearly $120bn in China. EU investments in China over the course of two decades amounted to over $140bn. In the face of criticisms from the US, China’s Foreign Ministry spokesman Wang Wenbin argued that the US was the chief culprit in the coercion of China.
The US dollar is close to a six-month peak against the yen as a result of rising US Treasury yields and optimism surrounding debt ceiling talks between President Biden and US Congressional Majority Leader Kevin McCarthy. Previous fears over an unprecedented US debt default were calmed, leading markets to speculate about where US interest rates may head. US data showing potential for a tight US labour market contributed to expectations that the Federal Reserve would deliver another rate hike in a bid to lessen inflation. Two Fed policymakers have said US inflation is not dropping quickly enough for the central bank to halt its interest rate hike campaign.
Business groups in Hong Kong are urging the government to reduce its suggested salary increases for civil servants below 4%, citing a need to ease pressure on the private sector during early post-pandemic economic recovery. Representatives from different industries stated that some sectors were experiencing a more rapid recovery than others and were already offering higher salaries to retain staff amidst labour shortages. While the private sector has cited increments of 2.87% for executives and 4.65% for different grades of employees, the Hong Kong civil service has suggested a pay rise of 4.5%.
Oil prices fell slightly in early Asian trading on Friday as optimism that a US debt default will be avoided was weighed against sticky inflation data that could potentially result in more interest rate hikes from global central banks. Brent futures were down 2 cents at $75.84 a barrel, while West Texas Intermediate crude fell 10 cents, or 0.043%, to settle at $71.76. A stronger dollar can weigh on oil demand by making the fuel more expensive for holders of other currencies.
