|Bid||1,321.50 x 0|
|Ask||1,322.50 x 0|
|Day's range||1,303.50 - 1,328.00|
|52-week range||15.76 - 2,340.00|
|Beta (5Y monthly)||0.85|
|PE ratio (TTM)||44.14|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||19 Dec 2019|
|1y target est||N/A|
(Bloomberg Opinion) -- Early on in the pandemic, reports of the death of the office appeared greatly exaggerated. But as Covid-19 lingers, and second infection spikes dot the global map, something is changing in how employees and employers view the workplace: It’s being seen as an option rather than a necessity for many white-collar workers.Once we get the pandemic under control, this shift will be welcomed by cost-cutting companies and staff who dread the daily commute. But for the owners of commercial property — already reeling from the move away from brick-and-mortar retail — the consequences may be severe. The market values of commercial real-estate companies, such as Land Securities Group Plc and British Land Co. Plc, have plummeted.This isn’t just a question of tech workers at Alphabet Inc., Twitter Inc. or Facebook Inc. taking the relatively straightforward step of doing their stuff from home. All kinds of companies are making the same calculation. Alan Jope, boss of consumer goods giant Unilever, doesn’t see workers ever returning to offices 100%. Swiss bank UBS Group AG says a third of its employees could keep operating from home.With property being a big business cost, employers would love to cut their space. Burberry Group Plc, a British luxury company, is exploring whether it can save money on its offices outside the U.K.Analysts at UBS assume that, on average, working one or two days a week at home could become the norm. That would have big implications for office vacancy rates, which have a close correlation to rents. In London’s West End commercial district, for example, more home working — together with an impending recession — could mean the vacancy rate rising from 3.3% in the first quarter of 2020 to just over 10% at the end of the year, according to UBS. It might still be 11.5% in 2022, the bank said.The real crunch won’t come immediately. Susan Munden, an analyst at Bloomberg Intelligence, notes that commercial tenants are tied into leases, and there are heavy costs in exiting rental agreements early. At the biggest European real-estate firms, average leases are four to eight years.Better news for the property industry is that it will be able to reuse commercial space as residential developments assuming people still want to live in cities once the pandemic ebbs. By cutting supply in this way, UBS estimates that the West End office vacancy rate could stabilize at 5.1% by 2025.And the office won’t disappear altogether. While Zoom does well enough for the more transactional elements of work, there’s no substitute for face-to-face interaction when collaborating on a creative project, building trust with clients or mentoring staff. Yet landlords will have to work harder. Tenants already wanted modern, environmentally friendly buildings with good quality air, outside terraces and facilities such as bicycle storage. Covid will accelerate this trend.Real-estate providers like Derwent London Plc — known for stylish buildings including the White Collar Factory in Shoreditch, which boasts a rooftop running track — may be better placed. British Land has taken note of the change, refurbishing parts of the flagship Broadgate estate it manages in London. Gecina SA, a Paris property specialist whose mission is to “design, build and manage living spaces to enrich the experience of our customers,” saw its net-asset value rise in the first half of this year.Even as offices lose staff to home-working, they may need to retain space to make sure desks can be kept the right distance apart. Given more stringent hygiene requirements, hot-desking might be less desirable. Meanwhile, if the office is used for more collaborative work, more room might be set aside for meeting areas. British Land is already seeing demand from companies seeking short-term overspill space.Tenants' greater desire for flexibility — whether that’s through shorter leases or monthly rent payments — will nevertheless be a challenge for landlords, who need some certainty to service their own extensive borrowings. In the Covid era, such long-term guarantees are in short supply. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Burberry shares fell heavily on the announcement of poor Q1 earnings. But it is still a strong brand, so does this offer a great opportunity to buy?The post Burberry shares are down 8% this week! Is it a good time to buy? appeared first on The Motley Fool UK.
(Bloomberg) -- The number of hours worked in the U.K. economy fell the most on the record in the coronavirus lockdown, underlining the risk facing the labor market as government income support is phased out.Britons put in 175 million fewer hours per week in the three months through May, a decline of almost 17% from pre-virus levels, the Office for National Statistics said Thursday. Payrolls plunged, vacancies dropped sharply and private-sector wage growth slowed to a standstill.At the moment, more than 9 million employees are being kept on payroll thanks to government wage subsidies. The question is what happens to them as support is tapered next month and ended altogether in October.A British Chambers of Commerce survey Thursday found that one third of businesses expect to cut jobs in the next three months. It follows a warning from the Office for Budget Responsibility that the jobless rate could reach 12% by year end if just one in seven furloughed workers becomes unemployed, and over 13% in early 2021 under a more pessimistic scenario.The prospect of an unprecedented 4 million people out of work -– triple the current total –- is increasing pressure on Chancellor of the Exchequer Rishi Sunak to add to the 30 billion-pound ($38 billion) stimulus package he announced last week as the economy struggles to emerge from its deepest recession in centuries. While the measures may mitigate the blow, Britain is nonetheless facing jobless rates last seen in the early 1980s.And the official figures possibly understate the true impact of the crisis on jobs.The jobless rate, which stayed at 3.9% in the three months through May, was held down partly because the shutdown of the economy meant many of those who lost jobs were unable to search for work and declared themselves inactive instead of unemployed.In addition, the ONS estimated there were around half a million people who said they were employed but reported working no hours and getting no pay. The number of paid employees actually fell by around 650,000 over the lockdown period, far more than the officially recorded 126,000 drop in employment.Vacancies dropped almost 60% in the three months through June. Regular pay rose just 0.7%, partly reflecting the fact that furloughed workers are getting just 80% of their normal wage, and wage growth ground to a halt for private-sector workers. Pay was lower than a year earlier when bonuses are included.What Our Economists Say:“The unemployment rate continues to provide a false read on the health of the jobs market. A wider set of indicators suggest there has been a marked deterioration. We expect the labor market to weaken as the year progresses and the government’s furlough scheme is wound down.”\-- Dan Hanson. To read the full REACT, click hereGlobal luxury brand Burberry Group Plc on Wednesday became the latest company to cut jobs in response to the pandemic after announcing a slump in sales last quarter. They include 150 office positions in the U.K., adding to the toll being racked up at companies from retailers Boots and John Lewis to Rolls-Royce Holdings Plc.The challenge confronting the government and the Bank of England was hammered home by figures this week showing the economy barely grew in May, when some lockdown restrictions eased, after shrinking a staggering 26% over the previous two months.The OBR estimates unemployment would now be around 35% in the absence of the Job Retention Scheme and a similar program for the self employed. Combined the initiatives are set to cost the taxpayer over 62 billion pounds this year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.