Category: Uncategorized

JP Morgan boss, Jamie Dimon, has warned the world may be living through “the most dangerous time the world has seen in decades” as Israel prepares to launch an expected ground offensive on Gaza.
The escalating conflict could have “far-reaching impacts” on energy prices, food costs, international trade and diplomatic ties, he said as JPMorgan Chase, America’s largest bank, reported earnings for the latest quarter.
While the lender posted another robust set of results, Dimon cautioned that interest rates may increase further in the United States, as the savings of consumers dwindle.
Dimon said: “The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade and geopolitical relationships. This may be the most dangerous time the world has seen in decades.
“While we hope for the best, we prepare the firm for a broad range of outcomes so we can consistently deliver for clients no matter the environment.”
Earlier this week, Dimon informed staff that JP Morgan employees in the region had been confirmed safe. “This past weekend’s attack on Israel and its people and the resulting war and bloodshed are a terrible tragedy”.
In a later memo, he also told employees that the conflict in the Middle East would have “ripple effects that extend far beyond the region”.
Global companies have scrambled in recent days to account for their staff and formulate public comments on developments. Antonio Neri, chief executive of Hewlett Packard Enterprise, described Saturday’s attack by Hamas as “unjustified and inexcusable”.
In a statement issued alongside the bank’s earnings on Friday, Dimon said US companies and consumers “generally remain healthy”, but noted that Americans have been “spending down their excess cash buffers”.
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JP Morgan boss Jamie Dimon: The world is witnessing ‘most dangerous time in decades’

The UK competition regulator has finally approved Microsoft’s $69 billion deal to buy the gaming giant Activision Blizzard 21 months after it was first agreed.
The revised deal for Microsoft to buy Activision without cloud gaming rights has been cleared after the Competition and Markets Authority (CMA) concluded that it would preserve competitive prices and better services. In blocking the original deal earlier this year the watchdog had previously cited concerns about fair competition in the cloud gaming market.
In August Microsoft made a concession that would result in Ubisoft, instead of itself, buying Activision’s cloud gaming rights over the next 15 years, putting them in the hands of a “strong and independent competitor”. Activision, based in the United States, makes games including Call of Duty, Candy Crush and World of Warcraft.
As a result of the concession the CMA agreed to look afresh at the deal and opened a new investigation. Its original decision against the tie-up had provoked a furious backlash, with both companies claiming that it showed that the UK was “closed for business” and resulted in the regulator being questioned by politicians about the decision.
Sarah Cardell, chief executive of the CMA, said today: “With the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market. As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome.”
A spokesman for Activision Blizzard said: “The CMA’s official approval is great news for our future with Microsoft, and we look forward to becoming part of the Xbox team.”
Brad Smith, Microsoft’s president, said: “We’re grateful for the CMA’s thorough review and decision today. We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide.”
Smith’s words this morning are quite at odds with his reaction at the time the deal was blocked, when he said on national radio that the regulator’s decision showed that the UK was “clearly closed for business”.
His words provoked handwringing from politicians and business leaders about the UK business landscape. The CMA’s original investigation blocked the deal on the grounds of Microsoft’s strength in cloud gaming.
Cardell hit out at the politicisation of the case in a statement: “The CMA is resolute in its determination to prevent mergers that harm competition and deliver bad outcomes for consumers and businesses. We take our decisions free from political influence and we won’t be swayed by corporate lobbying.
“Businesses and their advisers should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA. Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn’t work. Dragging out proceedings in this way only wastes time and money.”
The tussle over the outcome has led some to criticise the CMA for being too heavy handed as it was the only regulator to block the deal; others have praised it, though, for standing up to Big Tech. Some in the City have watched the process nervously, concerned that Smith was right and the regulator’s initial block would put businesses off trying to do deals or invest in the UK.
Gareth Mills, partner at the law firm Charles Russell Speechlys, said the change of position on such a high-profile case by the CMA was unprecedented: “Competition law is about to get sexy again. A raft of competition issues relating to the massive tech companies are coming down the track and will be with us very shortly indeed. Why? It largely comes down to just how big these businesses have become, some pushing $1 trillion valuations, leading to growing concern from regulators as to their supranational dominance.”
With this final hurdle out of the way, Microsoft no longer has to pay a $5 billion break-up fee and the companies will now turn to considering their future strategy. Microsoft has a product called Game Pass, like a Netflix for games, and there is speculation that Activision’s blockbuster games might soon be made available on the platform.
Microsoft still faces legal problems in the US. The Federal Trade Commission will move forward with its in-house trial against the acquisition after pausing that process over the summer, according to an order the agency issued in September.
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Microsoft’s $69bn deal to buy Activision Blizzard given CMA clearance

Insolvencies climbed 17 per cent on last year in September as companies struggled under the burden of the Bank of England’s interest rate hikes.
There were 1,967 company insolvencies in September, higher than levels seen both before and during the pandemic, when support measures were in place.
Voluntary liquidations made up the bulk of the total, with 1,576 recorded in September – 14 per cent higher than last year. In addition there were 255 compulsory liquidations and 125 administrations.
The number of compulsory liquidations and administrations have increased from historically low levels and are now close to pre-pandemic levels.
Although the number of insolvencies was down slightly on August’s figure, David Kelly, head of insolvency at PwC said: “While this dip is welcome, we expect the respite to be short-lived, with the UK remaining on track for the highest number of insolvencies since 2009.”
The rise in insolvencies reflects the unwinding of decades of low interest rates. In an attempt to contain stubbornly high inflation, the Bank of England has brought interest rates to a post-financial crisis high of 5.25 per cent.
This has piled pressure onto firms as it forces the cost of borrowing higher.
Linton Bloomberg, Partner, Reed Smith said that “the significant challenge presented by the combination of high interest rates and reduced disposable income is likely behind the increase in the number of insolvencies compared to this time last year.”
Research suggests that much of the impact of rising interest rates has yet to be felt by borrowers, meaning there is further pain in store for businesses.
Last month, research from the Centre for Economics and Business Research suggested there will be 26,700 insolvencies across 2023 as the impact of the Bank’s rate hikes filtered through the economy.
Bloomberg said that “with the full effect of the economic challenges facing the UK yet to be felt, we should expect this pattern of rising numbers of insolvencies to continue for the foreseeable future.”
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Insolvencies will continue to rise for ‘foreseeable future’ under burden of high interest rates

Taxpayers need to be honest with the Revenue as soon as their affairs are challenged and not call HMRC’s bluff; otherwise, they will end up in the position that Bernie Ecclestone finds himself, say leading tax and advisory firm Blick Rothenberg.
Bernie Ecclestone, the former boss of Formula 1 Racing, pleaded guilty to tax evasion before the High Court today regarding £400m of assets which he controlled in Singapore. This is despite having – in 2015 – previously declared that he had no such overseas assets under his control.
Fiona Fernie, a Tax Disputes and Resolutions Partner with the firm, said: “By not admitting to the offence when initially challenged by HMRC in 2015, Mr Ecclesone will face significantly more punitive penalties than might have been the case.”
She added: “If Mr Ecclestone had admitted to the position in 2015, he might only have faced a tax penalty of 15% of the tax due (depending on HMRC’s assessment of his behaviour up to that point) and would probably have avoided a criminal record. Even if HMRC had considered Mr Ecclestone’s behaviour to be both fraudulent and deliberately concealed, had he come clean in 2015, it should have been possible to reduce the penalty to just over 100% of the tax due.”
Fiona said: “However, by trying to hide the position in the way which he has, Mr Ecclestone became liable for a penalty for foreign tax evasion, which is likely to be as high as 200% of the tax which was illegally avoided, together with a criminal record. The poor behaviour of Mr Ecclestone in this case helps explain why the overall liability he now faces (ca. £652m of tax, penalties and late payment interest) is so high.”
She added: “This case represents a perfect example to taxpayers with ‘problematic tax positions’ of how they should not handle something.
“It is always better to be honest and pro-actively look to ensure that an incorrect position is corrected. Such a response to HMRC challenge helps ensure that any penalties etc. are minimised and the taxpayer’s position is resolved as quickly, cheaply and cleanly as possible.”
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Bernie Ecclestone’s £652M fine – A Lesson for Other Tax Evaders?

European variable pay management leader Qobra has announced a new €10m funding round. This follows an initial fundraising round of €5m in March 2022 and remarkable adoption of the solution by major companies.
The fund-raising was orchestrated by Singular, with the participation of UK group Revenue Syndicate and long-standing investor Breega. This strategic financing will enable Qobra to develop new functionalities, strengthen its customer acquisition strategy and accelerate its international expansion.
Qobra is the innovative platform dedicated to the strategic management of variable pay
Qobra is a French company that is revolutionising commission management. It is already deployed by a number of major accounts. The platform makes it possible to streamline information across the entire payment chain and align all the company’s stakeholders: management, financial decision-makers, sales teams and human resources.
Worldwide, between 2 and 3 trillion dollars are spent each year on variable remuneration for sales staff. However, this investment is rarely controlled, as it is most often based on the use of manual Excel files, which lack clarity, reliability and agility. Manual errors can easily creep into Excel files, needing continuous checking between different departments. This wastes time, money and ultimately causes frustration and a lack of confidence within sales teams.
“Variable pay is the No. 1 sales investment for the vast majority of B-to-B companies, and the commission plan is one of the most powerful tools management has to guide the behaviour of its sales staff. We are part of the new generation of software that is more flexible and more motivating for sales teams”, says Antoine Fort, co-founder and CEO of Qobra.
Automating commission plans to boost sales performance
Qobra automates commission calculations by implementing precise calculation rules in its no-code tool. This saves Operations and Finance teams valuable time and ensures the reliability of commission data. It also provides management teams and senior management with global visibility of performance and the entire commission budget. As for sales staff, they have total transparency over their targets in real time, making variable pay a real motivational lever.
“We can already see that since implementing Qobra, there is 15% to 20% uplift in terms of target achievement” Thomas Hons, GTM Strategy & Operations Manager at Make.
Qobra is compatible with the majority of CRM, ERP and HR software on the market. Data is collected at source and in real time, making commission calculations more reliable and limiting the margin for error. This management solution meets the needs of all companies with more than 100 employees in which sales staff receive variable pay. Antoine Fort and his team have already convinced more than 100 companies worldwide, including Doctolib, CoachHub, SeLoger and Payfit.
“We’re seeing a lot of interest from customers in different verticals, such as advertising agencies, pharmaceuticals, medical devices, real estate, financial services, insurance brokers, automotive… Everyone in sales-led sectors needs us, and we know how to help them,” explains CEO Antoine Fort.
Qobra aims to become the world leader in commission management over the next few years.
On the strength of its first round of funding in March 2022, Qobra can boast annual growth of 300%. With its initial model validated, this new round of funding will enable Qobra to accelerate its international growth, particularly in the United Kingdom. The company will open a London office in early 2024 as a gateway to the United States. A European leader with the ambition of becoming the world’s benchmark software company, Qobra plans to double its workforce from 30 to 60 employees by 2024, and to expand its software offering.
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European variable pay management leader Qobra announces new €10m funding round

The Financial Conduct Authority (FCA) has fined former Barclays boss James Staley, £1.8m and banned him from holding top jobs in the finance industry after finding he misled them over his relationship with convicted sex offender Jeffrey Epstein.
The FCA found that the executive ‘recklessly approved’ a letter sent by Barclays to the FCA, which contained two misleading statements about the nature of his relationship with Jeffrey Epstein which hid the last contact he had with the disgraced financier.
It also concluded the bank boss acted “with a lack of integrity.”

Therese Chambers, joint Executive Director of Enforcement and Market Oversight at the FCA said: “A CEO needs to exercise sound judgement and set an example to staff at their firm. Mr Staley failed to do this. We consider that he misled both the FCA and the Barclays Board about the nature of his relationship with Mr Epstein.
“Mr Staley is an experienced industry professional and held a prominent position within financial services. It is right to prevent him from holding a senior position in the financial services industry if we cannot rely on him to act with integrity by disclosing uncomfortable truths about his close personal relationship with Mr Epstein.”
Epstein was convicted in a US in 2008 of procuring a child for prostitution and of soliciting prostitutes as part of a controversial plea deal despite the fact investigators linked him to 36 victims, some as young as 14.
He was later rearrested on sex trafficking of children charges in 2019 but died in jail cell in New York before he could stand trial.
The watchdog asked Barclays in 2019 to explain what it had done to satisfy itself that there was no impropriety in the relationship between Mr Staley and Mr Epstein. In its response, Barclays relied on information supplied by Mr Staley. Mr Staley confirmed the letter was fair and accurate.
The letter claimed that Mr Staley did not have a close relationship with Mr Epstein but emails emerged between the two in which Mr Staley described Mr Epstein as one of his “deepest” and “most cherished” friends.
The letter from Barclays also claimed Mr Staley ceased contact with Mr Epstein well before he joined Barclays but it was also revealed that Mr Staley was in contact with Mr Epstein in the days leading up to his appointment as chief executive being announced on 28 October 2015. Mr Staley joined Barclays in December 2015.
The FCA said that while Mr Staley did not draft the letter “there was no excuse for his failure to correct the misleading statements when he was the only person at Barclays who knew the full extent of his personal relationship with Mr Epstein and the specific timings of his contact with him”.
The watchdog concluded the executive was aware “of the risk his association with Mr Epstein posed to his career.”
It found that “in failing to correct the misleading statements in the letter, Mr Staley recklessly misled the FCA and acted with a lack of integrity.
The FCA said James Staley was appealing the FCA decision “where he will present his case.”
In a statement, the Bank of England said: ““We support the FCA’s decision announced today against Jes Staley. It is imperative that senior managers act with integrity and are open and cooperative with the regulators.”
Barclays said after the FCA’s decision, it decided Mr Staley was ineligible for, or would forfeit, bonuses and share awards totalling £17.8m.
The banking giant had already suspended all of Mr Staley’s deferred bonuses and long-term share awards while the watchdog investigated

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Former Barclays boss Jes Staley fined £1.8m over Jeffrey Epstein scandal

Heathrow Airport’s passenger numbers surpassed pre-pandemic levels for the first time in September, marking a major milestone in the hub’s road to recovery.
Over seven million passengers passed through the UK’s biggest hub in September, up 22 per cent year-on-year and ahead of its 2019 equivalent.
That took the total traffic for the year to date to just over 59m, which is currently up nearly a third on 2022 – when the airport was struggling to get back to its best following the lows of Covid-19.
European and North American passengers continued to make up the lion’s share of the figures, with 1.8m coming from across the pond as Heathrow continues to benefit from rising transatlantic demand.
The return to pre-pandemic traffic levels will mark the end of the runway for long-time chief John Holland-Kaye, whose nine year tenure at the airport will come to an end on the 18th October.
Holland-Kaye said “It has been a privilege to lead the very talented team which in less than a decade transformed Heathrow into a hub airport that the whole nation can be proud of.
“We have built a solid legacy for my successor – Heathrow is now a customer service business, with a clear path to net zero by 2050 and a plan to grow and to connect all of Britain to global growth.”
The West London hub’s combative chief led the airport through one of the most turbulent times in its history, as fleets across the globe were grounded during the pandemic.
But he has faced criticism for Heathrow’s mounting multi-billion debt pile, which has seen it remain lossmaking since 2020.
He has also clashed fiercely with a slew of major airlines such as Virgin Atlantic and British Airways owner the IAG, over landing charges at the hub – with the Competition and Markets Authority (CMA) roped in as both sides launched rival appeals to the aviation watchdog’s verdict on what level they should sit at.
Holland-Kaye will be replaced by Thomas Woldybe, the Danish former head of Copenhagen Airport.
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Heathrow finally breaks post-pandemic passenger record

Rising inflation, growing global instability and falling demand for high-end drinks have been blamed for a slowdown in growth at the luxury goods multinational LVMH, owner of Christian Dior, Louis Vuitton and Moët & Chandon.
The group, whose brands also include Stella McCartney, Tag Heuer watches and Bulgari and Tiffany jewellery, reported revenue of €20bn (£17.25bn) between July and September – a 9% rise. That compares with a 17% increase in the previous quarter.
One of the worst hit parts of LVMH’s business was its wines and spirits division, which includes Hennessy cognac, which fell 14% in the quarter.
The results released on Tuesday suggest the post-pandemic boom in luxury goods, which helped LVMH become Europe’s first company to reach a $500bn valuation earlier this year, is starting to ebb.
Pauline Brown, the group’s former chair in North America, argued increasing global instability was a factor in the slowdown.
“If I was still sitting on the board at LVMH or any of the other luxury companies, what would really be rattling me is the geopolitical destabilisation around the world,” she told BBC Radio 4’s Today programme on Wednesday.
Brown added: “Luxury goods and purchases is a psychological purchase. Nobody needs a glass of champagne, nobody needs a watch or a diamond necklace … In order for you to buy it for yourself or as a gift, you really have to be in the right mood state. When we see atrocities happening … the appetite to spend on what might be perceived as frivolous goes way down.”
Referring to the fall in the wines and spirits division, she said: “About half of that business is one brand, Hennessy. There are closer to 30 brands in the wine and spirits division. The other half is primarily champagne, which actually grew – not robustly, I think by 3% in the quarter – but I think it was all on the cognac side, the drop, the negative.
“I think that [cognac] was hit hard in markets like China and North America because that aspirational consumer just isn’t spending with the same enthusiasm that the high net worth is.”
LVMH is the first big global luxury firm to report earnings this quarter, with Hermès and Kering due to report on 24 October.
The group’s chief executive, Bernaud Arnault, is the world’s second richest man. He had taken the top spot last December, overtaking Elon Musk, but the two swapped places again earlier this year.
Arnault, who co-founded the luxury goods group 35 years ago, has appointed his children to key roles within the business. Earlier this year, his eldest child, Delphine, was named the head of Christian Dior, the second-biggest brand in the empire, while her brother Antoine was promoted to run the holding company that controls LVMH and the Arnault family fortune.
His three younger children also have important jobs within the company. Alexandre Arnault is an executive at Tiffany, Frédéric Arnault is the chief executive of TAG Heuer, while their youngest sibling, Jean Arnault, heads marketing and product development for Louis Vuitton’s watches division.
The LVMH results came as accounts for Selfridges showed the upmarket department store chain had experienced a 29% rise in revenue to £844m for the year to 28 January.
The company said the improved performance had been “driven by strong footfall and sales through the company’s physical stores, particularly Oxford Street in London and Exchange Square in Manchester”.
Alice Price, Apparel Analyst at GlobalData, a leading data and analytics company, offers her view on the news: “After a stellar performance in recent years, LVMH proves that not even luxury brands are immune to the challenging economic environment, with its reported group revenue in Q3 FY2023 growing by just 1.1% to €20.0bn, a marked slowdown from the growths of 16.8% and 13.2% recorded in Q1 and Q2 respectively. Revenue for the nine months to the end of September rose by 10.1%, and while the group affirmed its confidence in delivering continued growth for the rest of the financial year, it seems likely that a similar deceleration could be experienced throughout the brand’s final quarter.
“LVMH’s slowdown can be attributed to the ongoing inflationary pressures in Europe and the US, which is inhibiting spend among aspirational shoppers, with these regions experiencing organic revenue growth of just 7% and 2% respectively. Previously, these consumers had been protected by savings accrued during the pandemic and government stimulus payments issued in the US, enabling them to splash out on luxury goods. However, with savings beginning to dwindle, exacerbated by the pressure of increasing costs, these products are gradually becoming out of reach for many. Europe’s more resilient performance than the US can be attributed to the return of international tourism, with shoppers capitalizing on favourable exchange rates to purchase luxury goods. Japan and the rest of Asia continued to report double-digit growth, with revenue rising by 30% and 11% respectively, driven by the rapidly growing middle class population and pent up demand for high-end goods after many countries in the region eased their lockdown restrictions at the end of 2022.
“The group’s Wines and Spirits division was its worst performer, with reported revenue declining by 20.5%, attributed to weak sales in the US and a post-pandemic normalization in demand. In contrast, its Selective Retailing division, which includes Sephora and DFS airport stores, drove growth, with revenue rising by 17.6%. Sephora had a strong performance in North America, Europe, and the Middle East, aided by its unparalleled offering of cult beauty brands. Following the success of Sephora’s Westfield London store, which opened in March 2023 and regularly experiences long queues, in July 2023 the group also announced the opening of a second store in the city later this year, giving scope for the brand to gain further market share in the UK.
“LVMH’s Fashion and Leather Goods division grew 0.7% to €9.8bn, a significant step back from its Q1 and Q2 performance, when it reported double-digit growth of 17.6% and 15.8% respectively. In order to weather this storm, LVMH must continue to focus on star brand Louis Vuitton and its influence over the lucrative Gen Z demographic. Louis Vuitton should prioritise the launch of innovative collaborations to gain visibility among these shoppers and encourage spend, with its ongoing partnership with artist Yayoi Kusama a notable example, having received widespread attention on social media for its eye-catching polka dot designs.”
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LVMH hit by growth slowdown as demand for high-end drinks falls

Shoppers have lost hundreds of pounds after being conned by a website pretending to be that of troubled retailer Wilko.
South Yorkshire Police said they had received 19 reports of people losing cash to a fake site.
The High Street chain collapsed into administration in August.
PC Angela Senior said: “Unfortunately, cyber scammers are often very good at making fake shopping websites look realistic.”
PC Senior said the reports had been received in August and September with each victim losing up to £200 as a result.
“It’s really important that people remain vigilant to the fact that these fake websites are out there and make the necessary checks before making any purchases,” she added.
A force spokesperson said: “We know how tempting discounts and clearance sales can be, however, we encourage people to stop and query whether the deal is too good to be true before they make a purchase.”
The spokesperson advised online shoppers to research retailers before purchasing.
All 400 Wilko stores across the UK were due to close by the end of October.
More than 12,000 staff had been made redundant as a result.
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Police warn shoppers to avoid fake Wilko websites