Seven Days: 19 July 2019

Brexit delayed?

New president speaks

New EU Commission president Ursula von der Leyen hinted at the possibility of a delay to the United Kingdom’s exit from the bloc, which is scheduled for 31 October 2019. “I stand ready for further extension of the withdrawal date, should more time be required for a good reason,” the former German defence minister told the EU parliament, who cited the preservation of citizens’ rights and stability on the island of Ireland. Mrs Von der Leyen was booed by Brexit party MEPs, while party leader Nigel Farage said that she had “just made Brexit a lot more popular in the United Kingdom”.

Rail franchising finished

Less government

Keith Williams, the current Royal Mail (RMG) chairman who has presided over an independent review of Britain’s railways, has said that “franchising in its current form has had its day”. Writing in the Financial Times ahead of the review’s autumn release, Mr Williams called for a different relationship between the public and private sectors, and said that “what worked 20 years ago is now preventing innovation, long-term decision-making and stopping the railway working as a system”. The former British Airways chief executive stopped short of providing details on how he would change the system, but said that “Whitehall needs to step back from the operational minutiae”.

Inmarsat takeover investigated

Private equity circles

The Competition and Markets Authority (CMA) will review the $6bn (£4.7bn) planned takeover of Inmarsat (ISAT) by a private equity consortium. In March, Britain’s largest satellite company confirmed that it had received a non-binding proposal from Apax Partners, Warburg Pincus and Canada Pension Plan Investment Board on 31 January, with Ontario Teachers’ Pension Plan Board subsequently joining the group. The CMA will consider whether the deal would “result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002”, and if so, whether this would harm competition in the market.

Khan blocks Tulip

Planners “disappointed”

Mayor of London Sadiq Khan has blocked planning application for the so-called ‘Tulip’ skyscraper. In a letter to the City of London, Mr Khan’s office said that the project “would not constitute the high standard of design required for a tall building in this location”, suggesting that it would harm “the historic environment, the wider skyline and image of London”. The building had been planned by the billionaire Safra family. In a statement, the Tulip Project Team said that it was disappointed by the decision, “particularly as The Tulip will generate immediate and longer-term socio-economic benefits to London and the UK as a whole.” The planners will consider their next steps for the project.

Employment resilient

Despite Brexit

UK unemployment remains at its lowest since 1974, in the face of economic uncertainty, according to new figures from the Office for National Statistics. Unemployment stood at 3.8 per cent from March to May, where it has sat since January. Employment, meanwhile, stands at 76 per cent, just beneath the record high of 76.1 per cent achieved between November 2018 and April 2019. The employment rate for women was 72 per cent, the joint highest on record. The rise in the female employment rate in recent years is partly due to changes to the State Pension age for women, leaving fewer women retiring between the ages of 60 and 65, according to the ONS.

Aston Martin upgraded

Hoped for more

Analysts at Jefferies upgraded their Aston Martin Lagonda (AML) rating from ‘underperform’ to ‘hold’. “We were hoping for more,” they wrote, but expectations over the luxury car manufacturer’s upcoming second-quarter results, excessive profit reliance on its special editions and collectibles, and “ongoing liquidity risk” disappointed the analysts. But while Jefferies forecast flat adjusted revenues and cash profits for the second quarter and cut its 2019 estimates, it revised its 2020 forecasts upwards, citing its hopes for the launch of the DBX SUV model, a lack of major CO2 constraint and “a bumper year for specials”. Aston Martin’s shares rose 7 per cent on the day of the upgrade.

Ryanair keeps aircraft name

Refutes social media

Ryanair (RYA) chief executive Michael O’Leary refuted news speculation that the airline would rename its Boeing 737 Max 8 jets following two fatal crashes at other airlines, which have led to the plane being grounded worldwide. Photographs of a Ryanair jet that appeared to have been renamed ‘737-8200’ had circulated on news and social media. Mr O’Leary also said that Ryanair had not discussed the aircraft’s name with manufacturer Boeing. Commentators have raised the issue of late, including US President Donald Trump, who said that if he “were Boeing” he would fix and rebrand the jet. Boeing currently has no plans to rename the aircraft.