FTSE 100 at three-week low
Banks are expected to increase the cost of credit card borrowing in the run up to Christmas following a recovery in demand for unsecured loans by British households.
The latest Bank of England survey found that lenders increased the cost of loans in the third quarter and planned to continue increasing average interest rates during the fourth quarter.
Lenders are also expected to restrict their loan products in the fourth quarter, though not by as much as in the third quarter, further limiting access to vital loans as the second wave of the virus hits many regions of the UK.
This trend tracks a return to more normal levels of demand for consumer loans in the third and fourth quarters after a collapse in the appetite for spending with credit during the second quarter that coincided with the worst of the Covid-19 lockdown.
Lloyds Banking Group is adding to the pile of job losses announced this morning, with plans to cut 125 office staff.
The cuts will hit its group internal audit team and retail chief operating office, according to one of its staff unions, Accord.
Around 62 new roles are being created, meaning there will be an overall net loss of 63 employees. Lloyds employs a total of 65,000 people, across its Halifax, Bank of Scotland and Lloyds brands.
The announcement comes around a month after Lloyds announced it was pushing ahead with plans to simplify parts of the business, resulting 865 job cuts – mainly across its insurance and wealth management divisions. It said it was also creating 226 new roles, resulting in a net loss of 639 jobs.
Commenting on the latest round of cuts, Accord’s general secretary Ged Nichols said:
“As always, our immediate concern is for the union members who may be at risk of redundancy as a result of the changes. We’ll be contacting all of the Accord members who are impacted by today’s news to offer advice and support.”
Stock markets hit by Covid-19 fears
Marston’s job cuts: early reaction
Budget airline Ryanair is also warning of job cuts, as the pandemic hits demand for flights.
Ryanair is scaling back its winter schedule because of Covid flight restrictions across the EU. It will only run 40% as many flights as last year from November to March, down from the 60% capacity previously planned.
Ryanair chief executive, Michael O’Leary, says:
“There will regrettably be more redundancies at those small number of cabin crew bases, where we have still not secured agreement on working time and pay cuts, which is the only alternative,”
“While we deeply regret these winter schedule cuts they have been forced upon us by government mismanagement of EU air travel.”
The airline said it was “inevitable” that pilots and cabin crew would also have to take more unpaid leave and participate in job sharing this winter, but said it was a better outcome than “mass job losses”.
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Introduction: Marston’s to cut jobs as Covid-19 crisis deepens
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