Business news in brief
EU will ‘react swiftly’ if Trump slaps tariffs on EU cars
The European Union yesterday said its reaction will be “swift and adequate” if the US concludes that European cars are a threat to national security and should be hit with punitive tariffs. The US Commerce Department is expected to make a decision soon and Donald Trump would then have 90 days to decide whether to impose them. AP
JD Sports takes bite out of rival Footasylum
JD Sports has picked up a significant stake in its high street rival Footasylum, causing shares in the troubled trainer firm to rocket. In a stock market announcement, JD Sports said it snapped up the 8.3 per cent holding for “investment purposes”. The company is prepared to acquire up to 29.9 per cent in Footasylum, just below the mandatory takeover threshold, but insisted it is not intending to make an offer for the group. A spokesperson for JD Sports said: “This share purchase is a strategic investment for the group, which has confirmed today that it is not intending to make an offer for Footasylum.” PA
Digital bank to hire hackers to bolster cyber defences
Fintech startup Revolut is hiring a team of hackers to bolster its cyber defences as the bank continues its rapid growth. The firm will recruit five experts who will attempt to hack into its IT system. This will help it fend off real cyber attacks and prevent potential data breaches and fraud. Paul Heffernan, Revolut’s chief information security officer, said the team will monitor security operations for the company and surf the dark web, parts of the internet not easily accessible through traditional search engines, looking for potential threats. PA
McColl’s blames profit crunch on supply disruption
Convenience store retailer McColl’s has reported a sharp drop in profits, blaming the collapse of groceries wholesaler Palmer & Harvey in a “challenging” year for the group. Profit before tax plunged to £7.9m for the year to the end of November, down from £18.4m in 2017. McColl’s said the loss of supply to 700 of its stores by the administration of Palmer & Harvey in November 2017 “created major disruption” and forced it to accelerate its new supply deal with Morrisons. “Moving to a new wholesale supply partner at a much faster pace than anticipated created its own challenges and severely disrupted our plans for the launch of Safeway,” the company said. PA
Office staff ‘work more than 17 extra hours every month’
Office workers are putting in more than 17 extra hours every month because of a culture of having to be seen working at their desk, a study suggests. Research indicated that those who stay in work longer than they should are not more productive because they simply “spread out” their workload. Workers in the United Arab Emirates do the most additional hours, 24, followed by those in the US and Hong Kong, both 23. Employees in South Africa do the least, with 14, according to a study by insurer group Maxis GBN. PA
Angling Direct restructures for Brexit
Fishing retailer Angling Direct has restructured its operations to prepare for the fallout from Brexit. The firm said it made the move “given the very high percentage of stocks coming from the Far East”. The company imports from the Far East and is increasingly selling to EU countries. International sales nearly doubled to £4.7m last year and now account for 21 per cent of group online sales. AP
Vanish and Dettol owner reports sparkling profits
Consumer goods firm Reckitt Benckiser has reported rising full-year sales and profits, despite flagging “challenging market conditions”. The Vanish and Dettol owner reported a 10 per cent rise in full-year revenue to £12.6bn in 2018, while operating profit rose 11 per cent to £3bn. Pre-tax profit rose from £2.5bn to £2.7bn. PA
Ed Malyon Saudi denial of United deal fits their policy – but that could evolve