John Lewis returns to profit but pays no staff bonus; bitcoin hits new high – business live

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28m ago 09.36 GMT Housing buyer enquiries, listings improve, says Rics Buyer inquiries have risen for a second month in the UK housing market and listings also improved, according to surveyors and estate agents. The latest monthly survey from the Royal Institution of Chartered Surveyors said the near-term outlook is still cautious, in part due to the suspicion that the recent easing in mortgage rates is likely to stall as the timing and speed of interest rate cuts remain uncertain. New buyer enquiries stayed positive for the second successive month (+6% net balance – the number of surveyors who reported higher enquiries minus those saying they fell), showing a continued upwards trend in buyer demand. Most regions across the UK have shown a recovery in buyer interest over the last two months. Agreed sales were flat in February (-3% net balance) and although this is less positive than in January, it still signals a stronger trend in sales than for most of the last 12 months, when the average net balance was -22%. Looking ahead, the sales expectations for the near term are positive, and sales activity is expected to gain further momentum over the coming year (net balance +42%). Across all UK regions, sales are expected to pick up over the longer-term. There was a solid rise being reported in new instructions to sell. The latest net balance of +21% is the strongest reading since October 2020, in contrast to the negative picture throughout 2023. Average stock levels on estate agents books now sit at 42 properties, the highest since February 2021, an there was also an increase in market appraisals over the month compared to the same period last year. View image in fullscreen Signs of life were seen in the UK housing market, Swanage, Dorset. Photograph: Geoffrey Swaine/REX/Shutterstock House prices still point to a downward trend across the UK as a whole, but this is stabilising with the February figure the least negative since October 2022. In London, the turnaround in prices is slightly more pronounced. Looking ahead, a net balance of +36% of respondents across England and Wales now envisage house prices returning to growth over the next 12 months. In the lettings market, tenant demand continues to rise but at a slower pace than previously. At the same time, though, landlord instructions are still dwindling, meaning rents are expected to move higher over the coming months, albeit at a slower rate. Simon Rubinsohn, chief economist at RICS, said: The February RICS survey provides some grounds for encouragement around the sales market with not just buyer interest staying positive for the second successive month but also the uplift in new instructions to agents. Whether the increase in stock coming back to the market will be sustained is likely to be a critical factor in explaining how things play out over the balance of the year especially with new build likely to remain constrained. Significantly, the rise in the number of appraisals taking place points in the right direction. And the government will be hoping that this trend is given a boost by the change to capital gains tax announced in the budget. Meanwhile, there are signs that the relentless upward trend in private rents is losing momentum but fresh demand is still comfortably outstripping supply in this area which suggests there is unlikely to any significant relief for tenants. Indeed, feedback from respondents to the survey continue to highlight the challenges in the sector resulting from a whole host of measures introduced in recent years. Share 1h ago 09.03 GMT Here is our full story on Shell. The energy company Shell has watered down one of its climate ambitions as it prepares to keep its oil production stable while growing its liquified natural gas business. The company used its latest energy transition strategy to warn that it may slow the pace of its emissions reductions this decade, saying that it now wants to reduce the carbon emissions intensity of the energy it sells by 15-20% by 2030, compared with its previous target of 20%. The target is measured against 2016. The updated target will enable Shell to slow the pace of its emissions reductions in a decade that climate scientists have warned is crucial in averting a climate catastrophe. The oil company has also promised to cut emissions from producing oil and gas – but it will continue to keep its oil production stable while growing its liquified natural gas business, meaning overall emissions on an absolute basis could continue to rise. Shell warns it may slow emissions reduction during crucial climate decade Read more Share Updated at 09.46 GMT 1h ago 08.36 GMT Nearly 5,000 UK chain stores closed last year – 14 a day In other retail news, almost 5,000 more chain stores were left empty last year – a rate of about 14 closures a day – as high streets were hurt by the failure of Wilko and the retreat of banks and pubs. Pharmacies were the biggest loser with 787 chain outlets disappearing – although many of these were Lloyds outlets which were taken over by independents. Next in line were pubs with a net 722 closing, as Wetherspoon’s and Stonegate, the owner of the Slug and Lettuce brand, closed venues. The figures from the Local Data Company for the advisory firm PricewaterhouseCoopers showed the rate of net closures was up by a third from 3,627, but far short of the post-pandemic peak of more than 10,000 in 2021. The figures do not include the many thousands of independent outlets trading in the UK. Nearly 5,000 UK chain stores closed last year at rate of 14 a day Read more Share 2h ago 08.30 GMT Review into August air traffic control meltdown finds ‘lack of pre-planning’ An independent review into the August bank holiday air traffic control meltdown that caused chaos for nearly 750,000 passengers has highlighted a “significant lack of pre-planning”. Flights were grounded across UK airports on 28 August after National Air Traffic Services (Nats) suffered a technical glitch while processing a flight plan. An interim report from an inquiry, published by the regulator, the Civil Aviation Authority, found there does not appear to have been “any multi-agency rehearsal of the management of an incident of this nature and scale”. These rehearsals are “best practice” and “regularly conducted in other sectors”, the inquiry panel said. The report said: The panel expects to recommend that the CAA should review and lead such multiagency planning. This is especially important, as some relationships between aviation sector stakeholders appear to be adversarial. This is not to the benefit of passengers, especially in a crisis situation such as this incident. It is clear there is a significant lack of pre-planning and co-ordination for major events and incidents that targets the alleviation and remediation of major incidents. At the time, a technical report from Nats blamed an “extremely rare set of circumstances” when a single flight plan with confusing waypoint data brought its bespoke software system to a halt on 28 August. An error triggered by the plan – which was correctly submitted by an incoming airline – forced the system to stop processing flight plans automatically, leaving controllers to handle operations manually. Many affected passengers were required to pay up front for alternative flights, food and accommodation, and submitted claims to airlines for reimbursement, even though airlines are legally required to provide these. The inquiry panel described the financial cost to passengers as “very considerable”, but noted that the “stress and anxiety” was “at least as serious”. Some travellers were stranded overseas for several days because of the number of flight cancellations. Review into UK air traffic control failure finds ‘lack of pre-planning’ Read more Share Updated at 08.34 GMT 2h ago 08.22 GMT Robyn Duffy, senior analyst for consumer markets at the consulting firm RSM UK, said: John Lewis is back in the black, but there are hard yards to travel before the retailer can confidently hail a return to form. Divisionally, the food arm of the business Waitrose is performing well after recovering from last year’s availability issues, but needs a cash injection to really compete with its rivals. As for John Lewis, the theme is ‘loafers, not sofas’ with consumers spending more on themselves rather than their homes. Despite being one of Britain’s best-known brands, John Lewis has struggled to stay relevant in recent years. A fast-moving economic environment has meant changing consumer habits have got the better of the business as the brand seemed to be missing the mark, whilst direct competitors Next and Marks & Spencer have prospered. As an employee-owned business that has failed to pay bonuses for several years, and with competitors seeing strong growth, the pressure is now on for new leadership to bring positive change. New CEO Nish Kankiwala has announced a ‘back-to-basics’ approach and plans to put retail back at the heart of John Lewis. Noise around the proposed housing and financial services plays have quieted for now, both interesting ideas but in a challenging retail environment a return to core values is needed. Only a few years ago John Lewis was the go-to retailer for the middle classes as it delivered quality at the best possible price. Returning to core values alongside investment in technology mirrors the fundamentals from other high street success stories and should help the business further improve margin. Share 2h ago 08.20 GMT Overall, John Lewis gained 1 million new customers last year, taking the total to 22.6 million (including 13.4 million at the John Lewis department stores). But Yanmei Tang, analyst at Third Bridge, said: The department store industry continues to struggle amid a cost-of-living crisis. John Lewis, with its significant reliance on home sales for revenue, may face even greater challenges ahead. The persistently sluggish housing market is unlikely to provide any relief. John Lewis also faces stiff competition from online giants like Amazon, as well as newcomers such as M&S and Next. They need to maintain its differentiation in assortment and keep real exclusivity of some of the brands. Expectations are for more store closures as they adjust their footprint, with increased investment in key locations. Despite this, John Lewis’ strong online presence means that while store closures may occur, sales are likely to shift online rather than being lost entirely. Margins are being squeezed by rising labour wages and input costs. John Lewis faces the challenge of maintaining its value proposition without simply raising consumer prices. View image in fullscreen A John Lewis store in London. Photograph: John Walton/PA Share Updated at 08.38 GMT 2h ago 08.12 GMT Here is our full story on John Lewis bouncing back to profit. The staff-owned retailer, which employs about 74,000 people – known as “partners” – said that after “careful consideration” it would not pay its staff an annual bonus for the third time in four years. It said that instead, “at this point in our transformation, [a sustainable business] is best served by investing in our retail businesses and in partners’ base pay.” It plans to refurbish 80 Waitrose stores and open new supermarkets in some areas while investing in technology to improve the John Lewis website and customer service for shoppers in stores. John Lewis bounces back to profit but no bonus for workers again Read more The company said it was “entering a year of significant investment” with £542m planned to be spent – up 70% on a year before. The investment will also go towards “simplifying the way we work”, suggesting job cuts may be on the cards this year. The group is thought to be considering cutting up to 11,000 jobs over the next five years. Sharon White, the firm’s chair, said the return to profit came after making £88m of savings, mainly by better matching staff hours to need in Waitrose shops and also by cutting energy use and more automation in the John Lewis distribution network. Total sales, excluding VAT, rose by 2% to £10.8bn. At Waitrose supermarkets, sales rose by 5%. However, sales at the John Lewis department stores fell by 4% to £4.8bn, despite inflation of more than 5% last year. The company said it had recorded weak sales of homeware and tech but sales of fashion, including beauty products, were up. Beauty sales were up by 4% on strong sellers such as men’s tailoring – up by 48% – and lingerie, up by 8%. Share 2h ago 07.58 GMT Shell warns it may slow emissions reduction during crucial climate decade Jillian Ambrose Shell has warned that it may slow the pace of its emissions reductions this decade as it prepares to keep its oil production stable while growing its liquified natural gas (LNG) business. The oil giant used its latest energy transition strategy to water down a promise to reduce the carbon emissions intensity of the energy it sells by 20% by 2030 versus the 2016 baseline. The updated target gives a range of between 15% -20% over the same period, which allow Shell to slow the pace of its emissions reductions in a decade which climate scientists have warned is crucial in averting a climate catastrophe. The oil company has also promised to cut emissions from producing oil and gas – but it will continue to keep its oil production stable while growing its LNG business, meaning overall emissions on an absolute basis could continue to rise. Wael Sawan, Shell’s chief executive, said: A balanced energy transition, which Shell supports, is one that maintains secure and affordable energy supplies, while the world builds the clean energy system of the future.” Billions of people depend on energy and hundreds of millions still hope to have access to it. Energy is vital for lives everywhere. Last month Shell revealed an annual profit of more than $28bn (£22bn) for 2023, one of its most profitable years on record, as green activists staged a protest outside the company’s London headquarters. Sawan was paid a total package of £7.9m last year, the group’s annual report showed. He took over from Ben van Beurden at the start of 2023, who was paid more – £9.7m in 2022. View image in fullscreen Shell CEO Wael Sawan attends a panel during Abu Dhabi International Progressive Energy Congress, in October. Photograph: Amr Alfiky/Reuters Share Updated at 09.02 GMT 2h ago 07.49 GMT John Lewis boss dismisses speculation about Waitrose split Sharon White, the chair of John Lewis, has been on the radio 4 Today programme talking about the results. She said: We’ve returned to profit, and that’s strength across both brands. If you look at the last year, actually customer numbers have grown. She defended the company’s decision not to pay a staff bonus for the second year running. The great thing about the partnership, and we are the biggest employee-owned business in the UK, is that we can take a long term view. We are really prioritising ensuring that we invest in customers but also investing in pay for partners so this year, we are investing £160m in pay, which is a record level. Q: There is growing speculation about a possible separation between John Lewis and Waitrose, it is time for the partnership to consider that? No, I disagree. What the results of the last year show is that the plan is working. And the brands are stronger together. We’ve got so many customers who shop across the two, love both; and the fact that we’re back to profit, the fact that customer numbers are growing, debt is down, we’ve got the balance sheet and the firepower now to invest, record levels over the next year. View image in fullscreen John Lewis chair Sharon White appearing on the BBC 1 current affairs programme on 10 March. Photograph: Jeff Overs/BBC/PA Share Updated at 07.54 GMT