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The pound continues slight recovery against weaker US and Euro currencies but remains significantly below pre-referendum levels. The UK and American markets continued slow falls.
Jeremy Corbyn posted a video promoting state ownership of the train operating companies, claiming he couldn’t get a seat. Richard Branson posted a video showing the Labour leader ignoring vacant seats. In a curious twist of fate later in the week Richard Branson found he couldn’t keep his seat when cycling and suffered some significant bruising. The lessons for business: when you seek to control the message it may get away from you, and if it does it may hurt. (Sources : BBC and Virgin)
The Restaurant Group
Owners of Chiquito and Frankie and Benny’s, the Restaurant Group have announced a poor set of results, with restaurant closures a key part of fixing the problem. In a frank statement, they say ‘the company admits that the performance of Frankie & Benny’s has “suffered due to insufficient focus on value, unsuccessful menu development and poor operational execution”.‘
|The board has moved quickly to undertake a review of the operating strategy and we now have clarity on the issues facing our Leisure brands, particularly Frankie & Benny’s… …we are confident that improved performance will be achieved… …through better operational execution.”|
|Debbie Hewitt, Chairman, The Restaurant Group|
In other words, Clarity, Strategy, Implementation. (Source : The Restaurant Group)
The EU have launched an investigation into the way in which companies like Apple were attracted to set up in Dublin in order to reduce the tax paid. The issue is whether the Irish broke EU harmonisation rules in a ‘sweetheart’ deal. If they find that the rules were broken Apple may be required to pay up to $19B in tax. The US would, as a result, lose a significant amount of tax from Apple in the US were that to happen. Dublin too may lose out in the long-term too.
The issue highlights the challenge of international tax, the EU is right to seek harmonisation within its members in order to avoid a ‘race to the bottom’ as countries offer ever sweeter deals to attract international companies. It also highlights how interdependent tax is with trade and trade deals with taxation. That’s an indication of how long it is going to take to get overseas taxation clarity in the UK following the EU referendum. (Source : The Guardian)
Tesco’s has announced the sale of Emporium Bakery, a further sub-brand sale as Dave Lewis, Tesco’s CEO continues the process of shrinking the grocer back to the core supermarket business. Focus has been a key touchstone for Mr Lewis for some time, the Clarity of returning to the core business, with a clear strategy for doing that is now being implemented quite quickly. The results by the end of this year will be much stronger. (Source: IGD Retail Analysis)
Clarity Strategy Implementation
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