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It will cost £3bn and six years to turnaround Tesco, according to a top City bank. HSBC’s retail experts are urging the chain to cut prices, raise wages and order executives to fly in economy class. The lender is warning that there can be no quick fix. “Tesco has been going wrong for at least six years and we think it will take just as long to correct the mistakes,” said David McCarthy, HSBC’s supermarkets analyst.
Senior bankers are facing ‘curfews’ that could call time on their partying lifestyles, reports The Times. GQ Employment Law, which represents several City firms, says many lenders are ushering in guidelines to prevent staff putting extravagant evenings at top nightclubs and wine bars on their expense accounts. “A sober staff member is less likely to make an error of judgment,” said Paul Quain, a GQ partner.
McDonald’s and Coca Cola have suffered a sharp fall in profits, reports the BBC. The fast food chain saw earnings fall 30%, while Coca-Cola's fell 14%. Both companies cited falling sales in the US. McDonald’s profits of $1.07bn (£661m) also suffered in response to a food scandal in China. "By all measures, our performance fell short of our expectations,” said chief executive Don Thompson.
Two-thirds of people aged between 50 and 65 would rather spend their money than pass it on to their children, according to a new survey in the FT. The study by online publication High50 found that most baby boomers, who benefited from soaring house prices, quality healthcare and protected pensioner benefits, prefer to spend their wealth than save it for their offspring.
Supermarkets are 20 years out of date – that’s the verdict of Waitrose boss Mark Price. He argued that changes in consumer habits are “far more fundamental than the discounters”, which have snatched trade from Tesco, Sainbury’s, Asda and Morrisons. Price said these changes mean that out of town supermarkets and the weekly shop are now a “thing of the past”.
“Not only is he set to break his promise to balance the books by next year, but borrowing in the first half of this year is now 10% higher than the same period last year.” Chris Leslie, shadow chief secretary to the Treasury, on the widening hole in the public finances revealed yesterday.
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