This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/live/2020/oct/05/cineworld-cinema-closures-uk-us-car-sales-donald-trump-stock-markets-business-lvie

The article has changed 16 times. There is an RSS feed of changes available.

Version 10 Version 11
Cineworld confirms UK and US closures; UK car sales hit two-decade low – business live Cineworld confirms UK and US closures; UK car sales hit two-decade low – business live
(32 minutes later)
Rolling coverage of the latest economic and financial newsRolling coverage of the latest economic and financial news
Nightclub operator G-A-Y has launched a legal battle against the Department of Health, in an effort to overturn the 10pm curfew on bars, pubs and restaurants.
Amid mounting criticism of the curfew, G-A-Y, which runs the renowned Heaven club at the heart of London’s gay nightlife scene, wrote to the health secretary, Matt Hancock, advising him it was preparing to take legal action.
Law firm Simpson Millar, acting for G-A-Y, questioned the logic behind the “arbitrary decision” to impose a 10pm curfew, a restriction that has sent sales plunging and left many businesses fearing they won’t survive the winter.
Here’s the full story:
Chancellor Rishi Sunak has suggested he could be open to providing more help to the entertainment industry in future, at the “appropriate time”.
However, he didn’t have any last-minute help to prevent Cineworld temporarily closing its UK venues from Thursday.
The Press Association has the details:
Here’s the latest on Odeon’s plans:
Time for a quick recap.Time for a quick recap.
Cineworld, Britain’s largest cinema chain, has confirmed it is mothballing all its screens in the UK and the US, due the impact of Covid-19 on the industry.Cineworld, Britain’s largest cinema chain, has confirmed it is mothballing all its screens in the UK and the US, due the impact of Covid-19 on the industry.
The move could mean up to 45,000 job losses, including over 5,000 in the UK.The move could mean up to 45,000 job losses, including over 5,000 in the UK.
The company told the City this morning that:The company told the City this morning that:
News of the closures broke on Sunday morning, upsetting and angering staff who hadn’t been informed by the company at that stage.News of the closures broke on Sunday morning, upsetting and angering staff who hadn’t been informed by the company at that stage.
CEO Mooky Greidinger blamed the decision on the lack of major blockbuster releases, including the delayed James Bond film. He explained:CEO Mooky Greidinger blamed the decision on the lack of major blockbuster releases, including the delayed James Bond film. He explained:
Shares in Cineworld promptly halved when the London stock exchange opened at 8am, and are currently down 40% at 23p (down around 90% this year).Shares in Cineworld promptly halved when the London stock exchange opened at 8am, and are currently down 40% at 23p (down around 90% this year).
Cineworld also warned that it is looking at all possible ways of raising more funds, amid talks of a debt restructuring.Cineworld also warned that it is looking at all possible ways of raising more funds, amid talks of a debt restructuring.
Boris Johnson has urged people to go to the cinema and help the sector, but the Prospect union has criticised the government for not providing more help.Boris Johnson has urged people to go to the cinema and help the sector, but the Prospect union has criticised the government for not providing more help.
Other cinema chains are also facing the consequences of the pandemic, with Odeon deciding to close a quarter of its cinemas on weekdays.Other cinema chains are also facing the consequences of the pandemic, with Odeon deciding to close a quarter of its cinemas on weekdays.
The pandemic has also hit the UK car industry, which just posted its weakest September sales figures since 1999. However, sales of more environmentally friendly cars did rise, as buyers shunned diesel and petrol models.The pandemic has also hit the UK car industry, which just posted its weakest September sales figures since 1999. However, sales of more environmentally friendly cars did rise, as buyers shunned diesel and petrol models.
A survey of the UK services sector has found that firms kept cutting jobs last month, despite a rise in activity.A survey of the UK services sector has found that firms kept cutting jobs last month, despite a rise in activity.
In the eurozone, service sector activity fell following the introduction of tighter curbs. Economists fear Europe could suffer a new downturn this winter, as the pandemic continues to hit growth.In the eurozone, service sector activity fell following the introduction of tighter curbs. Economists fear Europe could suffer a new downturn this winter, as the pandemic continues to hit growth.
Sky News is reporting that Cineworld’s lenders are preparing for a debt restructuring, due to the imminent temporary closure of its cinemas in the UK and US.Sky News is reporting that Cineworld’s lenders are preparing for a debt restructuring, due to the imminent temporary closure of its cinemas in the UK and US.
They say:They say:
Odeon is to shut a quarter of its cinemas during the week as a dearth of Hollywood blockbusters and the second wave of the pandemic keeps movie-goers at home.Odeon is to shut a quarter of its cinemas during the week as a dearth of Hollywood blockbusters and the second wave of the pandemic keeps movie-goers at home.
Odeon, which operates 120 cinemas in the UK and Ireland, has contacted members of its Limitless loyalty scheme to say that some of its outlets will move to a weekend-only model from this Friday.Odeon, which operates 120 cinemas in the UK and Ireland, has contacted members of its Limitless loyalty scheme to say that some of its outlets will move to a weekend-only model from this Friday.
The shift to Friday through Sunday opening, which sources say was made before the announcement that the premiere of the latest James Bond film is to be delayed until next April, comes as rival Cineworld moves to temporarily shut all of its cinemas in the UK and the US.The shift to Friday through Sunday opening, which sources say was made before the announcement that the premiere of the latest James Bond film is to be delayed until next April, comes as rival Cineworld moves to temporarily shut all of its cinemas in the UK and the US.
Odeon, which is owned by AMC Theaters, the world’s largest cinema chain with over 1,000 outlets, blamed the lack of almost any new films.Odeon, which is owned by AMC Theaters, the world’s largest cinema chain with over 1,000 outlets, blamed the lack of almost any new films.
In an email to customers, the company said:In an email to customers, the company said:
Cinema owners are stuck in a grim cycle as distributors and studios hold back the release of high profile films, from the next instalment in the Fast & The Furious franchise to Marvel’s Black Widow, amid concerns audiences won’t go and see them (as Cineworld’s CEO Mooky Greidinger explained earlier)Cinema owners are stuck in a grim cycle as distributors and studios hold back the release of high profile films, from the next instalment in the Fast & The Furious franchise to Marvel’s Black Widow, amid concerns audiences won’t go and see them (as Cineworld’s CEO Mooky Greidinger explained earlier)
In the past week the top 10 films in cinemas in the UK and Ireland made less than £2m at the box office. Last year, an average week notched up £24m.In the past week the top 10 films in cinemas in the UK and Ireland made less than £2m at the box office. Last year, an average week notched up £24m.
The UK retail sector suffered a drop in customers last week, as new Covid-19 restrictions and a burst of autumnal rain kept people at home.The UK retail sector suffered a drop in customers last week, as new Covid-19 restrictions and a burst of autumnal rain kept people at home.
That’s according to analytics firm Springboard, which found that retail footfall dropped most sharply in the evening -- after the government brought in a 10pm closure for pubs and restaurants.That’s according to analytics firm Springboard, which found that retail footfall dropped most sharply in the evening -- after the government brought in a 10pm closure for pubs and restaurants.
Springboard reports that:Springboard reports that:
Footfall across all retail destinations throughout the UK declined by -3.5% last week from the week beforeFootfall across all retail destinations throughout the UK declined by -3.5% last week from the week before
Footfall across retail destinations declined by -8.4% between 7pm and 11pm and -14.8% between 11pm and 7amFootfall across retail destinations declined by -8.4% between 7pm and 11pm and -14.8% between 11pm and 7am
UK footfall fell each day between Wednesday and Saturday, averaging -7.1%, no doubt in part a consequence of the severe rain across the UKUK footfall fell each day between Wednesday and Saturday, averaging -7.1%, no doubt in part a consequence of the severe rain across the UK
Footfall across all retail destinations is now 31.4% lower than 2019Footfall across all retail destinations is now 31.4% lower than 2019
Becta, which represents workers in broadcasting, entertainment, communications and theatre, agrees that major studios must bear the blame for Cineworld’s closures:Becta, which represents workers in broadcasting, entertainment, communications and theatre, agrees that major studios must bear the blame for Cineworld’s closures:
Philippa Childs, head of Becta, says:Philippa Childs, head of Becta, says:
[Nolan’s Tenet is one of the few blockbusters to hit the screens in recent months].[Nolan’s Tenet is one of the few blockbusters to hit the screens in recent months].
Childs also warns Cineworld not to treat its staff badly (many are on zero-hours contracts).Childs also warns Cineworld not to treat its staff badly (many are on zero-hours contracts).
The boss of Cineworld, Mooky Greidinger, has told Sky News that there was “no alternative” to the temporary closure of sites in the UK and US.The boss of Cineworld, Mooky Greidinger, has told Sky News that there was “no alternative” to the temporary closure of sites in the UK and US.
Greidinger blamed the movie studios decision to postpone several major releases, such as Black Widow, The King’s Man and Wonder Woman 1984 since the pandemic began.Greidinger blamed the movie studios decision to postpone several major releases, such as Black Widow, The King’s Man and Wonder Woman 1984 since the pandemic began.
The delay to No Time To Die on Friday was the final straw, as a new Bond film is always the biggest movie release of the year in the UK, Greidinger explained.The delay to No Time To Die on Friday was the final straw, as a new Bond film is always the biggest movie release of the year in the UK, Greidinger explained.
This has forced Cineworld to close for the second time this year, as it didn’t have the goods to offer customers.This has forced Cineworld to close for the second time this year, as it didn’t have the goods to offer customers.
Greidinger argued that these delays are a mistake:Greidinger argued that these delays are a mistake:
But he also pointed out that cinemas remain closed in New York, and parts of California, which is encouraging the studios to hold new releases back.But he also pointed out that cinemas remain closed in New York, and parts of California, which is encouraging the studios to hold new releases back.
Boris Johnson has told reporters this morning that people should go out to the cinema and support the industry:Boris Johnson has told reporters this morning that people should go out to the cinema and support the industry:
Here’s a full response on Cineworld’s closures, from Mike Clancy, General Secretary of the Prospect union:
The news that Cineworld was preparing to close its UK cinemas broke yesterday, casting a shadow over the whole sector.
My colleague Julia Kollewe spoke with cinemagoers arriving at the Vue cinema in Islington for a Sunday treat.
Clemmie Jacques, 39, who came to see Disney’s Pixar animation Onward, with Tim Osman, 33, said this was her fourth trip to the cinema since the pandemic.
“It’s a real pity,” Jacques said about Cineworld’s demise.
Jacques thinks smaller boutique chains and independent cinemas such as the Everyman chain, which “has sofas and is more of an all-round experience” might fare better.
“It’s better for dates as well,” Osman chipped in.
Rachel and Michael Thorn, with their children Zadie, 6, and Jack, 3, spontaneously decided to go to the Vue cinema in Islington in north London on Sunday, for the first time since the Covid-19 outbreak.
Her husband, who was buying tickets for Onward along with popcorn and drinks, said about the Cineworld closures:
India Townsend, a 29-year-old solicitor, had arrived at the Vue cinema to see Tenet. She has been to Vue and the local Odeon several times since the outbreak.
Eren Dogan, 21, customer assistant at the Vue, said customers appreciated being able to visit the big screen again.
He estimated that 300 to 500 people are now coming to the cinema every day, but noted that “there is limited film availability”.
To combat Covid-19, Vue has introduced hand sanitiser stations, physically distanced seating, staggered film times, extra cleaning and made face masks compulsory for cinema goers and staff. Screens are disinfected after every screening, including arm rests, and staff have been instructed to wash their hands every hour.
Mike Clancy, head of the Prospect trade union, fears that Cineworld’s closures and job losses will be repeated across the UK this winter, unless ministers provide more support to sectors worst hit by Covid-19.
Peter Bradshaw, our film critic, has got the James Bond producers firmly in his sights this morning.
He writes that the postponement of No Time To Die until spring 2021 has sent a chill through the industry (as well as triggering Cineworld’s decision to close screens across the UK and US).
It shows a spectacular lack of nerve, which 007 certainly wouldn’t approve of.
Here’s a flavour:
Here’s the full piece:
Cineworld’s decision to shut its UK and US screens is awful news for around 45,000 staff, who are now out of work, explains my colleague Jasper Jolly:
Here’s his full story:
Britain’s services companies continued to cut jobs last month, despite growth holding up better than feared.
The latest survey of purchasing managers across UK services firms shows that layoffs continued last month -- a trend that is worsening with Cineworld’s closures.
Data firm Markit explains:
Despite this, Markit’s latest UK service sector PMI has come in at 56.1 for September, better than the ‘flash’ reading of 55.1 recorded during the month.
That shows solid growth, although still down on the five-year high of 58.8 seen in August. It’s notably better than the eurozone, where service sector activity fell (see earlier post).
Firms reported that business continued to pick-up in September. But, growth slowed amid the move back to home-working and the 10pm closure for pubs and restaurants.
Markit explains:
James Fairclough, CEO of AA Cars, says September’s drop in car sales is disappointing, as consumers cut back due to the pandemic:
Karen Johnson, head of retail & wholesale at Barclays Corporate Banking, points out that some people are putting their lockdown savings towards greener vehicles:
Sue Robinson, chief executive of the National Franchised Dealers Association, says supply chain problems amid the pandemic are partly to blame - and warns that a no-deal Br4exit would compound this:
Sales of electric and hybrid cars actually rose in September, though, while petrol and diesel demand slumped.
Diesel was particularly out of demand, with registrations falling 38%, while petrol registrations fell by over a fifth.
In contrast, electric vehicle sales surged by over 180% year-on-year, with plug-in hybrids (which use a battery and an internal combustion engine) jumped by 138%.
The SMMT explains:
Mike Hawes, SMMT chief executive, adds:
UK car sales are on track to slump by nearly a third this year, following the tumble in September.
The SMMT warns that rising unemployment, and ongoing pandemic restrictions, will hurt the auto industry: