Tokyo Olympic Games, Eurostar, EU labour laws, Microsoft, HSBC, Paperchase: your commercial news round-up
updated on 21 January 2021
This week we witnessed Joe Biden’s inauguration at the US Capitol, as he was sworn in as the 46th US president and Kamala Harris was sworn in as vice-president. Read on for this week’s summaries of a selection of news stories from the business and legal worlds.
- The Tokyo Olympic Games is due to take place this summer after it was postponed last year following the pandemic’s outbreak. However, speaking to the BBC, deputy chair of the London Organising Committee of the Olympic and Paralympic Games Sir Keith Mills said that organisers should be “making plans for cancellation” due to the ongoing covid-19 pandemic. Following a rise in cases, the host city is currently in a state of emergency. The initial postponement increased the event costs by 22% to £11.5 billion, with £2.1 billion added to the bill as a result of the renegotiation of contracts and security measures.
- The Eurostar has appealed for financial aid, following a slash to its services when the pandemic hit last year. The company was forced to reduce its services from more than 50 trains a day to just four, which led to a 95% toll on its revenues.
- Some EU labour laws could be scrapped by the government as it is no longer restricted to the bloc’s rules, according to Business Secretary Kwasi Kwarteng who also confirmed there would be no dilution of workers’ rights. Kwarteng said: "I think the view was that we wanted to look at the whole range of issues relating to our EU membership and examine what we wanted to keep, if you like.” He added: "the idea that we are trying to whittle down standards, that's not at all plausible or true.” The working time directive is one measure under review by the government.
- In a funding round worth $2 billion, Microsoft has invested in Cruise, the driverless car unit owned by General Motors, representing Microsoft’s first major investment into driverless cars.
- With digital banking on the rise, HSBC is set to close 82 UK branches between April and September 2021. Regardless of the pandemic’s impact, the number of customers using physical branches in the past five years had fallen by a third, while 90% of customer communication was conducted virtually, either via phone, internet or social media. Addressing concerns that local branches are necessary for individuals who require cash and face-to-face services, for example, HSBC explained that of the 82 branches set to close, only one was more than a mile away from a Post Office, where such transactions can still take place.
- Paperchase has been given more time to develop a rescue plan and avoid collapse, following a slump in sales due to the covid-19 pandemic and the subsequent forced store closures. PwC is set to step in and handle proceedings if the stationary firm cannot negotiate a deal within the additional 10 days provided.
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