Today’s news in brief-20/12/23
New figures from the Office for National Statistics (ONS) reveal that UK inflation has decreased to 3.9% in the year to November, marking a two-year low. The rate fell from 4.6% in October, below expectations. The ONS attributes this decline to factors such as lower fuel prices, reduced prices for second-hand cars, maintenance and repairs, and airfares. Additionally, slowing prices for food staples contributed to the slowdown, with decreases observed in items like bread, cereals, and dairy products. ONS Chief Economist Grant Fitzner noted that while inflation has eased, prices remain substantially higher than pre-Ukraine invasion levels.
Alibaba Group has appointed its chief executive, Eddie Wu, as the new chief executive of its e-commerce arm, Taobao and Tmall Group. Wu, who currently serves as the chairman of Taobao and Tmall Group, will assume the CEO role starting from December 20, 2023. The move is part of Alibaba’s ongoing efforts to enhance shareholder value and improve return on capital. Additionally, the company will establish a new asset management company dedicated to overseeing its non-core assets. This announcement follows the earlier departure of former Alibaba CEO and chairman, Daniel Zhang, who transitioned to lead the company’s computing service arm, Alibaba Cloud Intelligence Group.
Asda is set to experience a surge in its debt interest bill, surpassing £400m in the early months of the coming year due to escalating interest rates. The company’s chief financial officer, Michael Gleeson, revealed that the debt bill would increase by up to £30m by February. This rise is attributed to £500m in loans associated with the Issa brothers’ acquisition of Asda, which will shift from fixed to floating interest rates. The Issa brothers acquired Asda in a £6.8bn deal in 2021, leading to the company’s current £2.4bn debt. Despite the financial challenges, the brothers emphasised the business’s cash generative nature and ongoing investments in employee pay and customer initiatives.
Lidl GB has announced groundbreaking changes to its employment benefits, positioning itself as the first supermarket to offer 28 weeks of full pay for maternity or adoption leave starting January 1, 2024. This doubles the previous 14 weeks of full-pay leave. The move is part of a broader set of enhancements to employment benefits, including paid leave for staff undergoing fertility treatment, expanded paid leave for pregnancy loss prior to 24 weeks (inclusive of partners), and an increase in compassionate leave to five days. Lidl aims to set a new industry benchmark for supporting its employees through personal milestones and challenges, reinforcing its commitment to being an inclusive and supportive workplace.
