UK suffers worst growth in G7; worries over Christmas food prices surge – business live | Business

Guggenheim Partners, the US financial services firm, has announced that its global CIO, Scott Minerd, has died.

Minerd died suddenly on Wednesday afternoon, from a heart attack during his regular workout.

Mark Walter, CEO and a founder of Guggenheim Partners, says:

“I have known Scott for over 30 years and we were partners much of that time. Scott was a key innovator and thought leader who was instrumental in building Guggenheim Investments into the global business it is today.

He will be greatly missed by all. My deepest condolences are with his husband, family and loved ones.”

Minerd was a regular guest on financial TV networks such as CNBC. We’ve quoted him in this liveblog several times (including in February 2020 when he warned about the impact of the coronavirus pandemic on the US economy and the markets).

Adam Tyndall, programme director at BusinessLDN, which represents firms in the capital, says the government should focus on ending the strikes on the railways, rather than raising ticket prices.

Tyndall also calls for reforms to the current system for tickets and fares:

“Heaping additional costs onto passenger at a time when many are already feeling the cost-of-living squeeze is a misguided attempt to safeguard the financial future of the railways. With the network plagued by strikes, ministers need to focus their attention on resolving the industrial disputes that are damaging the economy.

Longer term, the railways need a real plan to return to growth and today’s announcement is a reminder that the fares and ticketing system works against that; it is not fit for purpose in a post pandemic world and fundamental reform is a priority.”

There’s little pre-Christmas cheer on Wall Street, where stocks have opened in the red.

The Dow Jones industrial average, of 30 major US companies, is down 1.35% or 447 points at 32,929.

The broaded S&P 500 index has lost 1.6%, with technology stocks falling.

Investors are trying to weigh up whether the US economy could fall into recession in 2023, or if central bankers will succeed in engineering a soft landing.

Back in the financial markets, the pound has hit its lowest level since the end of November against the US dollar.

Sterling dropped below $1.20 for the first time in three weeks, as the latest GDP reports show that the UK economy shank faster than expected in the third quarter of the year, as the US expanded more quickly than thought.

Recession fears are weighing on the pound, as Capital Economics said yesterday:

We also think the recent rally in sterling is set to reverse course as the global recession will probably strengthen the US dollar and weaken the pound.

British fashion group Superdry has secured a new loan facility of up to £80m, but it faces a higher interest rate on the arrangement.

Superdry has just issued a trading update, in which it tells shareholders it has agreed a loan facility of up to £80m, including a £30m term loan, for three years with an option to extend for one further year.

The deal, with specialist lender Bantry Bay Capital Limited, replaces an existing £70m facility which runs out at the end of January.

But, “given market conditions”, the interest rate will be higher than Superdry’s previous agreement – at 7.5% above the Sterling Overnight Interbank Average Rate (paid by banks on unsecured transactions in the British sterling market).

Superdry also reports that group revenue increased 3.6% year-on-year in the six months to 29th October.

But Julian Dunkerton, founder and CEO, warns that “consumer confidence is fragile”.

Dunkerton says:

“I’m pleased with the performance of the business over the half. It’s been well documented that conditions are extremely challenging which weren’t helped by the unseasonably warm weather in October and into November. However, by combining great product with affordable prices, we managed to grow sales in the first half. Our AW22 collection has been really well received by customers, especially our jacket range and party dresses, and it’s great to see store sales recovering well. I am also encouraged with how we have started the second half, which has seen our biggest ever week for Ecommerce orders driven by a return to record levels of jacket sales over the Black Friday period and good momentum through the recent spell of colder weather.

That said we are under no illusions that consumer confidence is fragile and that the picture is unlikely to change quickly. We are very pleased to have completed our refinancing and this, combined with the continued strengthening of our brand and product, means the business is in good shape as we trade through our important Christmas trading period.”

The UK company behind Wagamama, Chiquito, and Frankie & Benny’s has negotiated new debt terms with lenders.

The Restaurant Group told the City it has “successfully amended and extended its debt facilities”, giving itself an extra two years coverage.

Its debt package consists of a £220m loan, plus a £120m revolving credit facility (RCF) with its existing lenders.

The Restaurant Group, which runs around 420 restaurants and pub restaurants throughout the UK, says:

This represents a c. £21m early repayment of its previous facilities. TRG continues to have a strong liquidity position with over £140m of cash headroom.

This move extends the maturities of the Term Loan and the RCF to April 2028 and March 2027 respectively, it says. It also now has “additional covenant headroom” until March 2025, to avoid breaching the terms of its loans.

The company, run by former HBOS CEO Andy Hornby, has also previously purchased interest rate caps, to protect itself against interest rate changes on its debt over the next four years.

Back in September, The Restaurant Group reported a return to profit in the first half of the year – making adjusted pre-tax profits of £10.2m up from a loss of £19.9m.

But like other hospitality firms, it has also been hit by rising costs, including higher energy bills.

In May, it warned of “a volatile inflationary market” as food and drink prices climbed.

US economy stronger than previously thought in Q3

Labour: rail fare rise is brutal

The “pretty sizeable increase” in regulated rail fares next March could encourage passengers to seek roles with more opportunity for homeworking, reckons Paul Charles, CEO of travel PR agency The PC Agency

He told GB News that putting up fares in such a way will make people think “Well, I’m going to rethink what I’m spending on my travel”.

Charles says:

With technology being as it is, people now have a choice. They can work from home more, they can avoid the railways.

This at a time when the railways need substantial investment. And yet, they’re being starved of that investment.

The 5.9% increase will apply to fares regulated by the government, such as season tickets on most commuter journeys, some off-peak return tickets on long distance journeys and flexible tickets for travel around large cities.

Here’s the full story, by our transport correspondent Gwyn Topham: