Pandemenomics for UK plc

Quite a bumpy set of results out from major UK companies today. Big banks like Lloyds Bank and HSBC have returned to strong profits already. Plenty of transactions for them, a buoyant housing market and growing business sector have helped them. Additionally, as I wrote here a couple of weeks ago, there is no recession likely now for a long time, so they have been able to reduce provisions for bad debts. 

On the other hand, Dixons has closed all of its airport shops. What am I going to do when bored at the airport if not look at the over-priced electronics and gadgets for a few minutes? This is due to both Brexit, with the UK ending airside tax breaks and also the pandemic with passenger numbers likely to be low for a long time to come. 

Sainsbury’s has chosen a kitchen sink moment too (this is when the CEO decides to out all bad news at once with an excuse, such that they can do better in future and earn their options then). The excuse is covid but how the only shops to stay open in Covid lost money is beyond me. My local Sainsbury’s has been heaving with people all the time. The truth must be that the internal re-organisation has been less successful and cost more / saved less than thought by some margin – but covid is a better excuse to use to try to bamboozle investors. 

it is good to see the banks joining in the profit making and seeing happy days ahead – these days banks are very conservative so that is a strong position to take. On the other hand, Dixons shows and example of how airports are going to look very different in the future, this scarring will be very deep in the travel sector and maybe will take a decade to repair.