Business news in brief
Retailers paid to offer cashback to cover lack of ATMs
Shopkeepers will be paid to offer customers cashback in their stores in areas where people have little access to ATMs, under a new pilot scheme from Lloyds Banking Group in partnership with Visa. The announcement is designed to boost access to cash, at a time when bank and cashpoint closures have prompted concerns about the availability of physical money. Lloyds said the new fee will offer more support to retailers, such as newsagents and small convenience stores, and increase the number of places where people can withdraw their money. It is hoped the initiative will also give customers more reason to visit local shops at a challenging time for high streets. PA
Merkel suggests rethink of EU competition policy
German chancellor Angela Merkel has said Europe may need to rethink its competition rules if it wants to create companies that can play a significant role on the global stage. Merkel’s comments yesterday at a digital business conference in Berlin come two weeks after European Union antitrust authorities blocked a deal to create a rail giant that could compete with China. Merging the high-speed train businesses of France’s Alstom and Germany’s Siemens was seen as an opportunity to prepare for the global expansion of China’s CRRC Corporation. PA
Job vacancies at record levels
Record numbers of people are in work and job vacancies are at their highest level ever, new figures reveal. Average earnings increased by 3.4 per cent in the year to December, the highest for a decade, outpacing inflation. Employment increased by 167,000 in the three months to December to 32.6 million, the highest since records began in 1971. Unemployment fell by 14,000 to 1.36 million, 100,000 lower than a year ago, the Office for National Statistics said. PA
Cobham takes £160m hit after settling Boeing dispute
Defence firm Cobham has said it will take a further £160m hit after settling a spat with Boeing over the aerospace giant’s troubled US tanker programme. Shares in Cobham rose 2 per cent as the company said Boeing was no longer withholding payments against Cobham invoices after resolving the aerial refuelling dispute. Dorset-based Cobham’s charge comprised £86m for the settlement and £74m for additional costs to complete the retained contract. PA
Holiday Inn owner’s profits drop but revenue rises
Intercontinental Hotels Group, which owns Holiday Inn, reported a drop in profit due to higher costs. The hotel operator’s pre-tax profit fell 26 per cent to $485m (£375m) in 2018 compared to the year earlier as it booked higher one-off costs related to the restructuring of its operations. However, revenue increased 6 per cent to $4.3bn, and revenue per available room – a closely watched metric for the hotel industry – grew 2.5 per cent. The company plans to deliver $125m worth of annual savings by 2020. PA