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Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.
It was a torrid year for the construction and support services sector, which was not elegantly named. Carillion went bankrupt in early 2018, but other survivors still feel the pressure: the Kier Group today revealed its intention to cut 1,200 jobs in an attempt to recover its distressed business.
About 650 employees will be laid off by the end of the month, while the remaining 550 will leave by the end of June 2020. The company also suspends all dividend payments for 2019 and 2020.
The job cuts are part of the £ 55 million reduction projects per year starting in fiscal year 2021. The company will also sell or close four divisions. Kier will sell its affordable housing construction unit Living, as well as its real estate development unit, while its facilities management and environmental services business will be closed "in a timely manner".
Asset sales are part of the plans to address Kier's debt problem, a recurring problem for leverage companies that have purchased several companies, but have found that opportunities to share the costs were limited.
Asian scholarships Investors were mixed on Monday, investors being cautious before an important week for meetings of the central bank. the US Federal Reserve meets Wednesday under pressure from US President Donald Trump in favor of a reduction in interest rates, as global growth prospects weaken. However, the Fed should refrain from making cuts, at least for now.
the bank of England announced its latest interest rate decision on Thursday as well – although it is even less likely that action will be taken on this front, given the current political turmoil as MPs and Conservative MPs choose the next Prime Minister.
Hopes of conservative leaders – with one notable exception – took part in a debate last night to prepare the next round of Conservative MPs tomorrow. Rory Stewart and Jeremy Hunt were the winners of the debate, according to Rowena Mason of the Guardian, although Boris Johnson is the elephant absent from the room, after the favorite of the bookies has left an empty podium.
L & # 39; s calendar
- TSB: Euro-zone wage growth year-on-year (first quarter)
- 13:30 BST: manufacturing index in the US Empire (June)
- 18:00 BST: speech by Mario Draghi at the European Central Bank
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