The Business: Monday July 7 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
Nike paid just £1m to the taxman on £100m sales of its Manchester United replica kits over the past five years, claims The Independent. The sportswear giant funneled nearly £40m to its Dutch business during the period, despite making most of its money on sales to football fans in Britain, according to accounts filed with Companies House. An £8.3m royalty fee paid to the Dutch subsidiary meant the total tax bill for last year reduced to £255,000.
The UK economy is set to overtake that of France within six years, says a forecast by a leading consultancy firm. According to PwC, the UK’s value is boosted by the strength of the pound against the dollar compared with that of the euro. Falling unemployment has also bolstered British finances. The top economy in Europe is that of Germany. The German economy is fourth globally, after the US, China and Japan.
George Osborne and William Hague begin a two-day business trip to India today, reports the BBC. The chancellor and foreign secretary are hoping to open new investment opportunities in India's defence and infrastructure sector, and attract Indian investment into Britain. India’s economy, which is Asia’s third-largest, has struggled in recent years but with a landslide win for Narendra Modi in the recent election, hopes are growing for a revival.
Business chiefs are ready to splash the cash this year in another sign that the economic recovery is inspiring confidence, says The Times. In its quarterly survey, Deloitte Finance found that finance directors at large UK companies plan to step up recruitment and boost spending as they believe the time has come too start taking risks. It discovered that 57% “expect discretionary spending to increase”, the highest level since the survey began seven years ago.
"To continue to attract customers, supermarkets need a compelling and differentiated offer. That may be attractive prices, or a shopping experience that innovates and excites. Simply piling products into a trolley is no longer enough.” Retail consultant Christine Cross on what the supermarkets must do to avoid extinction.
The new boss of Burberry is heading for a showdown with investors over his £20m ‘golden handcuffs’ deal, says The Times. Christopher Bailey has agreed a deal that includes a £440,000 cash allowance on top of a £1.1m basic salary and performance-related shares worth up to £7.3m. Rebellion is in the air: shareholders in Marks & Spencer and J Sainsbury are also expected to protest about the pay policies of the respective companies this week.
FTSE-100: up +0.01 to 6866.05
Dow Jones: up +0.54 to 17068.26
Dax: down -0.20 to 10009.08
Cac-40: down -0.47 to 4468.98
Nikkei: down -0.07 to 15426.59
Hang Seng: down -0.19 to 23502.23
US dollar: buys €0.73610 and £0.58350
Sterling: buys $1.71400 and €1.26190
Oil: $110.64 down -0.3