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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/sep/20/sports-direct-review-mike-ashley-stock-markets-fed-live
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| Stock markets jittery but investors bet against US rate hike this week – business live | |
| (about 1 hour later) | |
| 5.01pm BST | |
| 17:01 | |
| Bank of Japan - what could it do? | |
| Ahead of the US Federal Reserve decision comes the latest from the Bank of Japan, with the results of its comprehensive review of monetary policy expected. | |
| Analysts are uncertain what this might bring in practise, whether it be a further push into negative rate territory or further economic stimulus. But most believe there will be no change to the Bank of Japan’s inflation target of 2%. James Stanley, currency analyst at DailyFX, said: | |
| The big question is whether this review will lead-in to more stimulus or an introduction of monetary prudence. Many are questioning Japan’s ability to do more stimulus given the size of their programs over the past four years; although in that last Bank of Japan press conference [governor Haruhiko] Kuroda addressed this head on, sharing his view that the BoJ hasn’t yet hit the limits of monetary expansion. | |
| But there are some very big peripheral questions to be answered by the BoJ in this review, as in what are they going to do about the 2% target that they announced in April 2013 that they said they expected to hit in 2 years? That was April of 2015, or approximately 17 months ago, and yet we’re still very far away from that target being realistically met. Also at issue are negative rates...would they dare to do more here given that results have been non-existent? And in terms of asset purchases: The BoJ has been buying ¥80 Trillion a year in assets for a few years now. They’re already cornering their own government bond market. Does the BoJ dare do more after four years have shown little hope of actually kick-starting inflation? | |
| So, nobody really knows what the BoJ will say during this review to be released tonight. This could lead to hazardous conditions if trading around the Yen as markets are appearing to approach tonight’s event rather tepidly under the same guise of uncertainty that we are. | |
| Simon MacAdam at Capital Economics said: | |
| We expect the BoJ to cut its policy rate deeper into negative territory today which, according to the Overnight Index Swap market, does not appear to be expected until early next year. | |
| Admittedly, it is more difficult to gauge where we sit relative to the market on the prospects for further unconventional policy easing in Japan. But we suspect that we are more dovish. | |
| [There has been] speculation that there will be a policy shift away from asset purchases. Indeed, the yield curve has steepened recently in anticipation of the BoJ adopting this stance: long-dated yields have hit six-month highs this month. | |
| We believe, though, that the BoJ’s Comprehensive Policy Review will throw open the door to innovative policy measures. Rather than scale back its asset purchases, we think that the Bank may increase them and is more likely to find other ways to support systemically-important institutions, such as lending to commercial banks at negative interest rates. | |
| 4.10pm BST | 4.10pm BST |
| 16:10 | 16:10 |
| Pound hits five year low against the dollar | Pound hits five year low against the dollar |
| The pound has hit a five year low against the dollar, weighed down by concerns about the economic risks of Brexit. | The pound has hit a five year low against the dollar, weighed down by concerns about the economic risks of Brexit. |
| Sterling fell as low as $1.2948 and is currently down 0.55% at $1.2950 amid worries about the outcome of talks about Britain leaving the European Union, especially with some EU members promising there would be no easy ride. | Sterling fell as low as $1.2948 and is currently down 0.55% at $1.2950 amid worries about the outcome of talks about Britain leaving the European Union, especially with some EU members promising there would be no easy ride. |
| The strength of the dollar is also a factor, with the outside chance of a US rate rise at this week’s Federal Reserve meeting. Investors are also nervous ahead of the forthcoming Bank of Japan meeting. | The strength of the dollar is also a factor, with the outside chance of a US rate rise at this week’s Federal Reserve meeting. Investors are also nervous ahead of the forthcoming Bank of Japan meeting. |
| Currency markets are also unnerved by the prospect that Donald Trump may win the forthcoming US election. Neil Wilson, markets analyst at ETX Capital, said: | Currency markets are also unnerved by the prospect that Donald Trump may win the forthcoming US election. Neil Wilson, markets analyst at ETX Capital, said: |
| The pound seems to be a victim of some skittishness ahead the major central bank meetings this week in Japan and the US. Markets anticipate the Fed will keep rates on hold but a hike is not being ruled out, which may be rattling traders. | The pound seems to be a victim of some skittishness ahead the major central bank meetings this week in Japan and the US. Markets anticipate the Fed will keep rates on hold but a hike is not being ruled out, which may be rattling traders. |
| Moreover, even if the US central bank holds fire, traders seem primed for a ‘hawkish hold’ where the Fed would effectively give the green light for the fed funds rate to increase later this year, probably in December. All eyes are on whether long-time dove Boston Fed president Eric Rosengren shifts his stance and votes for a hike, as some have speculated he might. | Moreover, even if the US central bank holds fire, traders seem primed for a ‘hawkish hold’ where the Fed would effectively give the green light for the fed funds rate to increase later this year, probably in December. All eyes are on whether long-time dove Boston Fed president Eric Rosengren shifts his stance and votes for a hike, as some have speculated he might. |
| Despite talk of a Brexit bounce, the pound has come under pressure of late. It’s now trading close to 5 cents off its high of September 6th. The pace of the sell-off picked up markedly after the Bank of England said last week that it still expects to cut rates again this year. If UK data continues to remain solid, the Bank might have row back on that prediction, which could be positive for the pound. | Despite talk of a Brexit bounce, the pound has come under pressure of late. It’s now trading close to 5 cents off its high of September 6th. The pace of the sell-off picked up markedly after the Bank of England said last week that it still expects to cut rates again this year. If UK data continues to remain solid, the Bank might have row back on that prediction, which could be positive for the pound. |
| Updated | Updated |
| at 4.11pm BST | at 4.11pm BST |
| 3.27pm BST | 3.27pm BST |
| 15:27 | 15:27 |
| Here’s a neat explanation of why the Federal Reserve has struggled to raise interest rates: | Here’s a neat explanation of why the Federal Reserve has struggled to raise interest rates: |
| New #WordOfTheDay courtesy of @BenEisen of @wsj. Ruction. I thought it was a typo. (Even my iPhone just tried to autocorrect it) pic.twitter.com/pxEie6BHFe | New #WordOfTheDay courtesy of @BenEisen of @wsj. Ruction. I thought it was a typo. (Even my iPhone just tried to autocorrect it) pic.twitter.com/pxEie6BHFe |
| 3.21pm BST | 3.21pm BST |
| 15:21 | 15:21 |
| Back in the UK, the Bank of England has bought up £1.17bn of long-dated government bonds from investors. | Back in the UK, the Bank of England has bought up £1.17bn of long-dated government bonds from investors. |
| That’s part of its plan to support the UK economy following the EU referendum - pushing down the interest rate on these gilts, and encouraging riskier lending. | That’s part of its plan to support the UK economy following the EU referendum - pushing down the interest rate on these gilts, and encouraging riskier lending. |
| Some heavy duty QE today as the Bank of England has just bought some £1.17 billion of long and ultra-long Gilts #BoE | Some heavy duty QE today as the Bank of England has just bought some £1.17 billion of long and ultra-long Gilts #BoE |
| 3.19pm BST | 3.19pm BST |
| 15:19 | 15:19 |
| What a difference nine months, some weak economic data, and a Brexit vote makes... | What a difference nine months, some weak economic data, and a Brexit vote makes... |
| remember when the #Fed thought it could raise rates 4 times this year....? | remember when the #Fed thought it could raise rates 4 times this year....? |
| Updated | Updated |
| at 3.20pm BST | at 3.20pm BST |
| 3.04pm BST | 3.04pm BST |
| 15:04 | 15:04 |
| But not everyone on Wall Street expects the Fed to hold interest rates. | But not everyone on Wall Street expects the Fed to hold interest rates. |
| BNP Paribas and Barclays are both predicting that policymakers will take the plunge, and raise borrowing costs. | BNP Paribas and Barclays are both predicting that policymakers will take the plunge, and raise borrowing costs. |
| Laura Rosner, senior U.S. economist in New York at BNP, argues that economic conditions are good enough to justify a hike. | Laura Rosner, senior U.S. economist in New York at BNP, argues that economic conditions are good enough to justify a hike. |
| “There is no perfect time -- there will always be some uncertainties in the data,” said | “There is no perfect time -- there will always be some uncertainties in the data,” said |
| “Despite a multitude of shocks through the last nine months, which have delayed the Fed, hiring has continued to be robust. There is a window of opportunity for the Fed to continue normalizing, and we think it’ll take it.” | “Despite a multitude of shocks through the last nine months, which have delayed the Fed, hiring has continued to be robust. There is a window of opportunity for the Fed to continue normalizing, and we think it’ll take it.” |
| Two Fed Reserve's primary dealers Barclays Plc and BNP Paribas SA are forecasting rate hike this week https://t.co/Yk4X44kTu3 via @markets | Two Fed Reserve's primary dealers Barclays Plc and BNP Paribas SA are forecasting rate hike this week https://t.co/Yk4X44kTu3 via @markets |
| Updated | Updated |
| at 3.11pm BST | at 3.11pm BST |
| 3.01pm BST | 3.01pm BST |
| 15:01 | 15:01 |
| US interest rates have been on hold since last December, at just 0.25%-0.5%. | US interest rates have been on hold since last December, at just 0.25%-0.5%. |
| The Fed initially expected to manage four rate hikes this year - now, one hike looks like their limit. | The Fed initially expected to manage four rate hikes this year - now, one hike looks like their limit. |
| So the normalisation process is taking an awfully long time, as Reuters’ Jamie McGeever points out: | So the normalisation process is taking an awfully long time, as Reuters’ Jamie McGeever points out: |
| Assuming a December hike, at the pace of one hike a year US rates won't reach pre-crisis 5.25% level for another 20 years. HT @reutersMikeD | Assuming a December hike, at the pace of one hike a year US rates won't reach pre-crisis 5.25% level for another 20 years. HT @reutersMikeD |
| Updated | Updated |
| at 3.19pm BST | at 3.19pm BST |
| 2.45pm BST | 2.45pm BST |
| 14:45 | 14:45 |
| Markets rise as Fed hike fears subside | Markets rise as Fed hike fears subside |
| Ding ding! The Wall Street opening bell has been rung for the last full trading session before America’s central bank sets monetary policy. | Ding ding! The Wall Street opening bell has been rung for the last full trading session before America’s central bank sets monetary policy. |
| And shares are rallying in New York, and in Europe, as investors wager that the US Federal Reserve will decide not to raise interest rates tomorrow. | And shares are rallying in New York, and in Europe, as investors wager that the US Federal Reserve will decide not to raise interest rates tomorrow. |
| The Dow Jones industrial average has gained 104 points, or 0.6%, in early trading to 18,224. Nearly every company on the index has risen. The broader S&P 500 index has gained 0.5%. | The Dow Jones industrial average has gained 104 points, or 0.6%, in early trading to 18,224. Nearly every company on the index has risen. The broader S&P 500 index has gained 0.5%. |
| Twenty-eight of 30 components contributing to 99-point Dow advance https://t.co/3T8bVCQxZy | Twenty-eight of 30 components contributing to 99-point Dow advance https://t.co/3T8bVCQxZy |
| European markets have also had a good day (apart from Italy, where fears over its banking sector have pushed shares down). London’s FTSE 100 has gained 40 points, on top of Monday’s 103-point jump. | European markets have also had a good day (apart from Italy, where fears over its banking sector have pushed shares down). London’s FTSE 100 has gained 40 points, on top of Monday’s 103-point jump. |
| Today’s weak-looking US housing data has left many traders concluding that the Fed won’t risk a shock hike tomorrow. | Today’s weak-looking US housing data has left many traders concluding that the Fed won’t risk a shock hike tomorrow. |
| Analysts at RBC Capital Markets explain why: | Analysts at RBC Capital Markets explain why: |
| However... a couple of Wall Street dealers believe the Fed could defy expectations, and vote to raise interest rates..... | However... a couple of Wall Street dealers believe the Fed could defy expectations, and vote to raise interest rates..... |
| BBH 3/3: for the first time in this cycle, there is a disagreement among primary dealers, with two holding out the likelihood of a hike #Fed | BBH 3/3: for the first time in this cycle, there is a disagreement among primary dealers, with two holding out the likelihood of a hike #Fed |
| Don’t forget that the Bank of Japan also holds a crucial monetary policy meeting overnight. But investors are genuinely baffled about what the BoJ might do - and how the markets might react. | Don’t forget that the Bank of Japan also holds a crucial monetary policy meeting overnight. But investors are genuinely baffled about what the BoJ might do - and how the markets might react. |
| 2.13pm BST | 2.13pm BST |
| 14:13 | 14:13 |
| Newsflash from America: The number of new house-building projects slumped by 5.8% in August. And the number of permits for new properties shrank by 0.4%, following an 0.8% decline in July. | Newsflash from America: The number of new house-building projects slumped by 5.8% in August. And the number of permits for new properties shrank by 0.4%, following an 0.8% decline in July. |
| That’s important, because it’s another reason for the US central bank, the Fed, not to raise interest rates at its meeting on Wednesday. | That’s important, because it’s another reason for the US central bank, the Fed, not to raise interest rates at its meeting on Wednesday. |
| 88% of @CNBC Fed Survey respondents expect rate hike in December, while 90% say no hike this week https://t.co/NERPMO1lzj pic.twitter.com/i1leYzxNiY | 88% of @CNBC Fed Survey respondents expect rate hike in December, while 90% say no hike this week https://t.co/NERPMO1lzj pic.twitter.com/i1leYzxNiY |
| 1.54pm BST | 1.54pm BST |
| 13:54 | 13:54 |
| When Mike Ashley described himself as a PR nightmare, this may be what he had in mind: | When Mike Ashley described himself as a PR nightmare, this may be what he had in mind: |
| 7am Sports Direct launches independent probe into working practices8am Mike Ashley defends flying to work by planehttps://t.co/8he8Xwib6U | 7am Sports Direct launches independent probe into working practices8am Mike Ashley defends flying to work by planehttps://t.co/8he8Xwib6U |
| Mike Ashley protests he knew nothing about problems at Sports Direct, urging people to consider him incompetent rather than just plain nasty | Mike Ashley protests he knew nothing about problems at Sports Direct, urging people to consider him incompetent rather than just plain nasty |
| 1.54pm BST | 1.54pm BST |
| 13:54 | 13:54 |
| BEIS Department welcomes Sports Direct move | BEIS Department welcomes Sports Direct move |
| Theresa May made some bold promises about improving labour rights on her swift march to Downing Street, including putting workers on company boards [which Sports Direct will now do]. | Theresa May made some bold promises about improving labour rights on her swift march to Downing Street, including putting workers on company boards [which Sports Direct will now do]. |
| So it’s not too surprising that that Department of Business, Energy and Industrial Strategy has welcomed the firm’s pledge to change. | So it’s not too surprising that that Department of Business, Energy and Industrial Strategy has welcomed the firm’s pledge to change. |
| A spokeswoman says: | A spokeswoman says: |
| “The Government is clear that everybody deserves to be treated with respect and employers have a responsibility to ensure that pay is fair no matter who you are or what you do. | “The Government is clear that everybody deserves to be treated with respect and employers have a responsibility to ensure that pay is fair no matter who you are or what you do. |
| Both the Business Select Committee report and Sports Direct’s review into their own working practices detailed some concerning findings, so it is right that they take decisive action to resolve these internal issues as quickly as possible.” | Both the Business Select Committee report and Sports Direct’s review into their own working practices detailed some concerning findings, so it is right that they take decisive action to resolve these internal issues as quickly as possible.” |
| Updated | Updated |
| at 2.02pm BST | at 2.02pm BST |
| 1.17pm BST | 1.17pm BST |
| 13:17 | 13:17 |
| Breaking away from Sports Direct.... there’s a lot of chat about the impact of the Brexit vote on Ireland today. | Breaking away from Sports Direct.... there’s a lot of chat about the impact of the Brexit vote on Ireland today. |
| Our correspondent Henry McDonald reports: | Our correspondent Henry McDonald reports: |
| Ireland should woo UK firms who want to remain trading in the EU to relocate to cities like Dublin, Cork and Limerick, the British-Irish Chamber of Commerce said today. | Ireland should woo UK firms who want to remain trading in the EU to relocate to cities like Dublin, Cork and Limerick, the British-Irish Chamber of Commerce said today. |
| The Anglo-Irish trade body’s Director General John McGrane said the Republic should follow the lead of other EU states and cities that were seeking to persuade UK firms to set up bases within the Eurozone post-Brexit. | The Anglo-Irish trade body’s Director General John McGrane said the Republic should follow the lead of other EU states and cities that were seeking to persuade UK firms to set up bases within the Eurozone post-Brexit. |
| McGrane also warned that Ireland – with its land border with Northern Ireland and the fact that its single biggest trading partner is the UK – is the most exposed EU country to Brexit. He was speaking a seminar on Brexit and Ireland organised by the main opposition party in the Dail, Fianna Fail, in Carlow today. | McGrane also warned that Ireland – with its land border with Northern Ireland and the fact that its single biggest trading partner is the UK – is the most exposed EU country to Brexit. He was speaking a seminar on Brexit and Ireland organised by the main opposition party in the Dail, Fianna Fail, in Carlow today. |
| Accepting and respecting the UK vote on Brexit, McGrade told the think-in: | Accepting and respecting the UK vote on Brexit, McGrade told the think-in: |
| “Enterprises think about multi-location and so Ireland should rightly be the natural first choice for UK employers looking for a guaranteed EU base and equally Irish firms looking to secure trade with the UK should consider a UK base. With other EU cities encouraging migration of UK firms, we shouldn’t be shy to lay out our own advantages and to encourage investment in Ireland from anyone looking to trade inside the EU.” | “Enterprises think about multi-location and so Ireland should rightly be the natural first choice for UK employers looking for a guaranteed EU base and equally Irish firms looking to secure trade with the UK should consider a UK base. With other EU cities encouraging migration of UK firms, we shouldn’t be shy to lay out our own advantages and to encourage investment in Ireland from anyone looking to trade inside the EU.” |
| He also called on the Irish government to implement a “National Brexit Strategy Plan” to cope with the shocks of the UK outside the EU. | He also called on the Irish government to implement a “National Brexit Strategy Plan” to cope with the shocks of the UK outside the EU. |
| Meanwhile in Belfast, Ryanair boss Michael O’Leary has warned that investment will suffer while the Brexit drama plays out. | Meanwhile in Belfast, Ryanair boss Michael O’Leary has warned that investment will suffer while the Brexit drama plays out. |
| O'Leary says Brexit uncertainty means he can't risk putting more Ryanair investment in UK/NI in next 2 yrs while politicians 'screw around' | O'Leary says Brexit uncertainty means he can't risk putting more Ryanair investment in UK/NI in next 2 yrs while politicians 'screw around' |
| @Ryanair 'Those who voted for #Brexit couldn't control a sweet shop never mind borders'. #CBI @CBI_NI pic.twitter.com/tZB3nj7lGf | @Ryanair 'Those who voted for #Brexit couldn't control a sweet shop never mind borders'. #CBI @CBI_NI pic.twitter.com/tZB3nj7lGf |
| 12.35pm BST | 12.35pm BST |
| 12:35 | 12:35 |
| Relations between Sports Direct and the unions have long been fraught. | Relations between Sports Direct and the unions have long been fraught. |
| But Janet Williamson, chair of the Trade Union Share Owners, suggests that the new independent review is a good opportunity for a fresh start. | But Janet Williamson, chair of the Trade Union Share Owners, suggests that the new independent review is a good opportunity for a fresh start. |
| “This is good news for Sports Direct workers, especially young workers who make up a large part of their staff but too often get a poor deal at work. | “This is good news for Sports Direct workers, especially young workers who make up a large part of their staff but too often get a poor deal at work. |
| “The board should now consult both shareholders and trade unions in finalising the plans for the independent review. Trade unions representing workers at Sports Direct stand ready to work with the company to ensure a successful future that is fair for its staff.” | “The board should now consult both shareholders and trade unions in finalising the plans for the independent review. Trade unions representing workers at Sports Direct stand ready to work with the company to ensure a successful future that is fair for its staff.” |
| Unions will presumably be pushing Ashley to offer permanent contracts to the 4,000-ish agency workers, who are employed at Shirebrook on effectively zero-hours contracts. | Unions will presumably be pushing Ashley to offer permanent contracts to the 4,000-ish agency workers, who are employed at Shirebrook on effectively zero-hours contracts. |
| Updated | Updated |
| at 1.00pm BST | at 1.00pm BST |
| 12.14pm BST | 12.14pm BST |
| 12:14 | 12:14 |
| We don’t often find the City singing from the same hymn sheet as Britain’s unions. But the two sides are united today. | We don’t often find the City singing from the same hymn sheet as Britain’s unions. But the two sides are united today. |
| After putting pressure on Ashley for months, investors are generally welcoming the decision to hold a properly independent review of Sports Direct’s operations. | After putting pressure on Ashley for months, investors are generally welcoming the decision to hold a properly independent review of Sports Direct’s operations. |
| Paul Lee, head of corporate governance at Aberdeen Asset Management, called it a “good start”: | Paul Lee, head of corporate governance at Aberdeen Asset Management, called it a “good start”: |
| The fact that the review will now be undertaken by an independent party provides comfort and I am sure all shareholders will welcome the opportunity to offer constructive thoughts on the remit of the review. | The fact that the review will now be undertaken by an independent party provides comfort and I am sure all shareholders will welcome the opportunity to offer constructive thoughts on the remit of the review. |
| There is much more work to be done but hopefully today is the first step on the long journey to rebuild investor trust and to rectify the problems at SportsDirect. All shareholders want a well governed, sustainable business.” | There is much more work to be done but hopefully today is the first step on the long journey to rebuild investor trust and to rectify the problems at SportsDirect. All shareholders want a well governed, sustainable business.” |
| Andy Griffiths, executive director of the Investor Forum, is also pleased: | Andy Griffiths, executive director of the Investor Forum, is also pleased: |
| Our Members believe this is an opportunity to bring about meaningful and lasting change, and are committed to working constructively with the Board and the independent reviewer to ensure it can be a turning point in rebuilding trust.” | Our Members believe this is an opportunity to bring about meaningful and lasting change, and are committed to working constructively with the Board and the independent reviewer to ensure it can be a turning point in rebuilding trust.” |
| Relations between Mike Ashley and the City hit a nadir this month when investors voted against chairman Keith Hellawell’s reappointment. | Relations between Mike Ashley and the City hit a nadir this month when investors voted against chairman Keith Hellawell’s reappointment. |
| They are also unhappy that Mike Ashley’s brother has a deal to deliver Sports Direct products abroad. | They are also unhappy that Mike Ashley’s brother has a deal to deliver Sports Direct products abroad. |
| Eyebrows have also been raised over the appointment of Michael Murray, boyfriend of Ashley’s elder daughter Anna, as a property consultant. | Eyebrows have also been raised over the appointment of Michael Murray, boyfriend of Ashley’s elder daughter Anna, as a property consultant. |
| 11.45am BST | 11.45am BST |
| 11:45 | 11:45 |
| The Unite union reckon Mike Ashley has now “grasped” the need to tackle the employment problems at Sports Direct. | The Unite union reckon Mike Ashley has now “grasped” the need to tackle the employment problems at Sports Direct. |
| They are also pushing the government to outlaw zero-hours contracts (reminder: Ashley is offering permanent contracts to all workers at his retail shops, but not to agency staff at the retailer’s Derbyshire warehouse). | They are also pushing the government to outlaw zero-hours contracts (reminder: Ashley is offering permanent contracts to all workers at his retail shops, but not to agency staff at the retailer’s Derbyshire warehouse). |
| Unite assistant general secretary Steve Turner says: | Unite assistant general secretary Steve Turner says: |
| “Increasingly businesses are recognising that they have no place in the modern workplace and are bad for workers, bad for business and bad for the economy. The government should now show leadership and follow the lead of government’s like New Zealand and ban zero-hours contracts.” | “Increasingly businesses are recognising that they have no place in the modern workplace and are bad for workers, bad for business and bad for the economy. The government should now show leadership and follow the lead of government’s like New Zealand and ban zero-hours contracts.” |
| Updated | Updated |
| at 12.04pm BST | at 12.04pm BST |
| 11.28am BST | 11.28am BST |
| 11:28 | 11:28 |
| Jon Tricket, Labour’s shadow business secretary, has criticised Mike Ashley for dragging his feet over allowing an independent review of Sports Direct. | Jon Tricket, Labour’s shadow business secretary, has criticised Mike Ashley for dragging his feet over allowing an independent review of Sports Direct. |
| He says: | He says: |
| “News that Sports Direct is finally responding to its shareholder wishes and agreeing to an independent review of its working practices and corporate governance is a step in the right direction towards ridding the company of its exploitative practices once and for all. | “News that Sports Direct is finally responding to its shareholder wishes and agreeing to an independent review of its working practices and corporate governance is a step in the right direction towards ridding the company of its exploitative practices once and for all. |
| “Apparent resistance by Mr Ashley has made this process harder than it needed to be. Labour are looking at ways to improve corporate governance to avoid such scandals in the future, and to ensure that the highest standards apply in British industry.” | “Apparent resistance by Mr Ashley has made this process harder than it needed to be. Labour are looking at ways to improve corporate governance to avoid such scandals in the future, and to ensure that the highest standards apply in British industry.” |
| Updated | Updated |
| at 11.31am BST | at 11.31am BST |
| 11.11am BST | 11.11am BST |
| 11:11 | 11:11 |
| The Press Association has a good write-up of Mike Ashley’s TV performance, by Aine Fox. | The Press Association has a good write-up of Mike Ashley’s TV performance, by Aine Fox. |
| ‘PR NIGHTMARE’ MIKE ASHLEY DEFENDS FLYING TO WORK BY HELICOPTER | ‘PR NIGHTMARE’ MIKE ASHLEY DEFENDS FLYING TO WORK BY HELICOPTER |
| Sports Direct boss Mike Ashley said he is being “real” when he chooses to travel by helicopter, and disclosed that a cleaning lady at the company was paid an £80,000 bonus. | Sports Direct boss Mike Ashley said he is being “real” when he chooses to travel by helicopter, and disclosed that a cleaning lady at the company was paid an £80,000 bonus. |
| Speaking after the firm announced it would have an independent review of its working practices and corporate governance, he reiterated his apology for things that had gone wrong but insisted there have also been positives at the retailer. | Speaking after the firm announced it would have an independent review of its working practices and corporate governance, he reiterated his apology for things that had gone wrong but insisted there have also been positives at the retailer. |
| He defended his expensive method of travel, and said the government is responsible for workers being paid the minimum wage, not him. | He defended his expensive method of travel, and said the government is responsible for workers being paid the minimum wage, not him. |
| He told BBC Breakfast: | He told BBC Breakfast: |
| “I do fly to work by helicopter, it’s a reality. So when people say, ‘Oh be real’, that’s how I travel.” | “I do fly to work by helicopter, it’s a reality. So when people say, ‘Oh be real’, that’s how I travel.” |
| He added: | He added: |
| “People will say, ‘How can you have a plane when your workers are on minimum wage?’ | “People will say, ‘How can you have a plane when your workers are on minimum wage?’ |
| “I said, ‘But I don’t set the minimum wage.’ If the minimum wage would be the living wage, then the government who set the rules should set it at the living wage. That’s as I look at it.” | “I said, ‘But I don’t set the minimum wage.’ If the minimum wage would be the living wage, then the government who set the rules should set it at the living wage. That’s as I look at it.” |
| Mr Ashley put the poor practices discovered at the business down to a “rotten apple in the barrel” and said there are a lot of good things about the firm. | Mr Ashley put the poor practices discovered at the business down to a “rotten apple in the barrel” and said there are a lot of good things about the firm. |
| He said: | He said: |
| “I can tell you in the last five years Sports Direct will have paid out over 200 million in bonuses. So I can tell you the cleaning lady got an £80,000 bonus on top of her normal pay. Nobody in the UK has done that. | “I can tell you in the last five years Sports Direct will have paid out over 200 million in bonuses. So I can tell you the cleaning lady got an £80,000 bonus on top of her normal pay. Nobody in the UK has done that. |
| “What we’ve got to do is focus on getting the bits we’ve got wrong, to the extreme highs of the bits we’ve got right. | “What we’ve got to do is focus on getting the bits we’ve got wrong, to the extreme highs of the bits we’ve got right. |
| “And paying out that kind of money doesn’t mean you’re allowed to get these bits wrong, where clearly I’ve taken my eye off the ball. | “And paying out that kind of money doesn’t mean you’re allowed to get these bits wrong, where clearly I’ve taken my eye off the ball. |
| “I’ve said sorry, I’ve said I’m going to fix it, and I will.” | “I’ve said sorry, I’ve said I’m going to fix it, and I will.” |
| Describing himself as a bit of a “PR nightmare”, he referred to the moment he joked that he had been to the casino after he pulled a wad of cash from his pocket when he was showing investors and journalists around the Shirebrook warehouse earlier this month. | Describing himself as a bit of a “PR nightmare”, he referred to the moment he joked that he had been to the casino after he pulled a wad of cash from his pocket when he was showing investors and journalists around the Shirebrook warehouse earlier this month. |
| He said: | He said: |
| “The one thing people didn’t say to me was, ‘Mike, have you checked how much money you’ve got in your pocket?’ And of course nobody thought to ask me whether or not I had genuinely been to the casino a few days earlier.” | “The one thing people didn’t say to me was, ‘Mike, have you checked how much money you’ve got in your pocket?’ And of course nobody thought to ask me whether or not I had genuinely been to the casino a few days earlier.” |
| Updated | Updated |
| at 11.18am BST | at 11.18am BST |