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  • Daily business and finance update 20th January 2023

Daily business and finance update 20th January 2023

Train workers receive ‘final offer’

Good morning. Planes aren't exactly what comes to mind when you think of Netflix, but the streaming giant has an aviation department, and it's looking to grow. This week the company announced it was looking to hire a flight attendant for its private jet. The job, based in California, requires “discretion” and pays between $60k and $385k.

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Train workers receive ‘final offer’

Yesterday train company bosses made a "best and final offer" to the RMT, the rail workers union, in order to bring to an end the long running strike action. The deal includes a pay rise of 9% over two years and changes to working conditions. The union said it would consider the offer.

It comes after a government minister admitted that rail strikes have cost the UK economy more than £1bn and it would have cost less to settle the dispute with unions over pay and conditions when strikes started back in June.

If the deal is rejected then train drivers could join civil servants, teachers and university staff - close to half a million workers – walking out in a single day on 1st February as part of demands for higher pay to cope with the cost-of-living crisis.

Billionaire calls government policies ‘stupid’

James Dyson has criticised prime minister Rishi Sunak’s handling of the economy as “stupid” and “short-sighted” in a Telegraph article yesterday. The British vacuum cleaner firm founder said growth had "become a dirty word" under Sunak's leadership and claimed that on current trends, by 2030 the average British family will be poorer than their Polish counterparts. Dyson called on the government to shake the country’s ‘Covid inertia’ and give businesses more support by cutting taxes and encouraging workers to return to the office.

Dr Martens’ blames warm weather as sales cool

Yesterday the British bootmaker cut its profit targets for the second time in three months after “unseasonably warm weather” and supply chain problems in the US hurt sales over the festive period. The company said it now expected profits for the coming year to be £25m lower at £260m, following the news shares dropped by a quarter. Last November Dr Martens reported that everything from the oil-based product used to make its soles, to leather and energy have soared in price this year. As a result the price of its boots will rise by 6%. The classic boot, which currently costs about £159 will increase by £10.

US reaches debt limit

Yesterday the $31.4tr cap on the amount the US government can borrow was reached, prompting the Treasury Department to adopt a series of accounting measures to prevent the country defaulting on its debt, bringing economic turmoil and financial market chaos.

US politicians have until to June to pass legislation to raise or suspend the debt ceiling something that has happened 78 times since 1960, including three just in the last six months.

Republicans have threatened to use the debt ceiling as leverage to demand spending cuts from Democrats and President Joe Biden’s administration. The White House, in turn, has indicated it won't negotiate the debt limit, setting up the possibility of a government default.


In the money: Deliveroo revealed that it had broken even for the first time in the second half of 2022, after a series of cost reduction measures.

Dropping value: Fast fashion retailer Shein's valuation has reportedly fallen from $100bn to $64bn.

Hot chocolate: Hotel Chocolat plans to open up to 50 new UK stores after strong high street trade.

Out of the ashes: Bankrupt crypto exchange FTX's new chief executive is looking into the possibility of reviving the platform.

Shut down: Lloyds Pharmacy is to close 237 in-store branches in Sainsbury’s supermarkets, only eight years after buying them.

Bidding farewell: Netflix co-founder Reed Hastings is stepping down as CEO of the streaming video pioneer as it announced a 7m increase in subscribers last year to 231m.

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Manchester City is the richest club in Europe for the second year running with a revenue up 13% to €731m.

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