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- Daily business and finance update 12th February 2024
Daily business and finance update 12th February 2024
Tesco Bank sold to Barclays
Good morning. Today we're talking about Barclays takes control of Tesco Bank, Yodel on the brink and pension age predictions.
Tesco Bank sold to Barclays
Barclays will acquire Tesco Bank in a deal worth up to £1bn. The move sees Barclays take over Tesco Bank's credit card, savings, and loan operations, serving its 5m customers. While Tesco will retain its insurance, ATM, and travel money services. In the wake of the 2008 financial crisis, which shattered public trust in traditional banks, supermarkets emerged as potential disruptors, leveraging their existing branch networks. However, the rise of digital banking rendered these physical spaces less important. Nimble app-based rivals like Starling and Monzo swiftly captured the challenger role with stricter regulations further dampening supermarket financial services ambitions.
Yodel on the brink
Yodel, one of the UK’s largest delivery companies, faces a potential administration as it struggles to find a buyer or secure new funding. The company, owned by the Barclay family, has been hit by rising costs and fierce competition. Reports suggest Yodel has contacted insolvency experts Teneo, a move often seen as a precursor to administration. This could have significant ramifications for the company's 10,000 employees and its network of retailers, including John Lewis and Argos. Yodel has been exploring strategic options for some time, including seeking a buyer or investment. However, talks with potential suitors like The Delivery Group have stalled. The company insists it is "focused on business as usual" while seeking solutions.
Pension age predictions
The UK's state pension age could reach 71 by 2050, according to a recent report by the International Longevity Centre (ILC) driven by rising life expectancy and shrinking working populations. Currently, the state pension age is 66, set to rise to 67 by 2028 and 68 by 2044. However, the ILC warns that these adjustments might not be enough to maintain a sustainable balance between workers and retirees in the long term. Proponents of the change argue it's necessary to ensure the financial viability of the state pension system and avoid placing undue burden on younger generations. They also point out that increased life expectancy means people can enjoy longer retirements. However, critics highlight the potential hardship this could cause, particularly for those in physically demanding jobs or facing health challenges.
End of the line: The Body Shop is set to appoint administrators in a move likely to result in lost jobs and shop closures.
Adding meat: Pret A Manger is abandoning the idea of vegetarian-only outlets, saying people are buying veggie options at all its branches.
Making a comeback: Ousted WeWork founder Adam Neumann is trying to buy back the flexible workspace provider that filed for bankruptcy in November.
Preparing to sell: The government said sale of shares in NatWest to the general public could happen as early as June.
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