Latest news with #pre-Covid
Daily Mail
4 hours ago
- Business
- Daily Mail
Starbucks reveals shock earnings in latest report
Starbucks' turnaround efforts have fallen short as the company posted its sixth straight quarter of declining sales. The coffee company has been in turnaround mode under new CEO Brian Niccol for almost a year. However, Niccol's efforts to simplify menus, cut waiting times and make cafe's friendlier have yet to show up in the figures. Starbucks global sales declined two percent in the quarter ending June 29. This was an even greater drop than the 1.3 percent decline expected by analysts. The company's North America same-store sales fell by two percent, a smaller drop than was anticipated by Wall Street, according to StreetAccount. The results come just weeks after Starbucks launched its biggest hiring spree in history. Soaring prices and what critics call a 'soulless' in-store experience have only added to the customer exodus from the chain. The coffee company has been in turnaround mode under new CEO Brian Niccol Niccol said last month that the goal isn't just to speed up service, but to ease pressure on overworked employees and bring back the warmth and personal touch that once made Starbucks a beloved 'third place' between home and work. Five years ago, Starbucks stores averaged 23 employees. Cost-cutting has since trimmed that number down to 18 to 19 — four to five fewer workers per location. Restoring pre-Covid staffing levels would mean hiring between 68,000 and 85,000 people across all US stores. Even focusing solely on the 11,000 company-owned locations, the increase would still be a massive 44,000 to 55,000 hires. As part of his turnaround plans Niccol has set about axing complicated drinks from Starbucks menus, asking staff to put messages on customer's coffee cups and scaling back promotions. The hiring plan will help address the major customer peeve of long wait times before getting their hands on a coffee. It will also likely be popular with front of house employees who have complained of chronic issues with understaffing, which compounds the backlogs.
Telegraph
4 hours ago
- Business
- Telegraph
Tate blames Brexit for slump in visitors
The director of the Tate has blamed Brexit for a steep decline in the gallery's attendance figures. Maria Balshaw said leaving the European Union, and the Covid pandemic, had left the institution struggling to attract young European visitors. Visits to London's Tate Modern and Tate Britain have fallen by 27 per cent since 2019 – a drop of 2.2 million visitors, according to the Association of Leading Visitor Attractions (Alva). 'The figures speak for themselves,' Ms Balshaw told the Art Newspaper, adding: 'Tate Modern alone welcomed 609,000 visitors from Europe, between ages 16 to 24 in 2019-20, but then 357,000 in 2023-24. 'And if you think about that age of person, they are profoundly affected by the combination of Brexit changing their educational and work opportunities and then Covid profoundly affecting the end of their studies and the way they choose to live their lives. They are, in general, also travelling less.' Some critics of the Tate have blamed 'woke' curatorial decisions for underwhelming footfall in recent years. It attracted controversy with an 'inclusive' rehang in 2023, which sidelined prized landscapes and portraits for paintings linked to slavery and colonialism, complete with labels alerting visitors to historic injustices. Ms Balshaw, who has led the institution since 2017, said the Tate's internal research, which is made up of exit surveys and data from its galleries, had shown domestic visitor numbers have recovered to 95 per cent of pre-Covid levels, but international visitors are at just 61 per cent. Tate's internal research found the average number of visitors to Tate Modern, Tate Britain and Tate St Ives in the three financial years before the pandemic was 7.4 million. Of that, around 3.8 million were from the UK. The average number of visitors for the first two full years post-Covid was 5.8 million, of which 3.6 million were domestic. The number of visitors from outside the UK has dropped significantly, from around 3.6 million to around 2.2 million. The attendance figures come after Tate announced it would be firing 7 per cent of its workforce to plug a funding deficit left over from the pandemic. Next year's programme includes exhibitions of the works of Tracey Emin and Frida Kahlo, while this November, Tate Britain will host a 'grand face-off' between Turner and Constable.
Bloomberg
8 hours ago
- Business
- Bloomberg
Trade war means $2 trillion world GDP hit: Global outlook
Tariffs take 2026 global GDP forecast down to 2.7% Tariffs are a negative for growth, they act like a tax hike. We have lowered our 2025 GDP forecast for the US to 1.5% from 2.1% in December. For China, front loading of exports will deliver a short-term boost that keeps 2025 growth buoyant. But with US tariffs up by about 30ppts, we've lowered our 2026 China growth call to 4.4%, from 5.6%. China accounts for about half of the downgrade to our global GDP forecast by the end of 2027. For the world as a whole, we've nudged down our 2025 GDP forecast to 3% from our December call of 3.1%. That would be a slowdown from 3.2% growth in 2024 and some way below the pre-Covid run rate of 3.4%. Looking further ahead, and assuming tariffs climb a little from where they are now, we see global growth slowing further, to 2.7% in 2026. Tariffs inflationary for US, disinflationary for everyone else For the US, forecasting the impact of tariffs on inflation is not straightforward. Higher tariffs push import costs up. Margin compression for distributors and retailers reduces the pass-through to final consumers. Weaker growth is also disinflationary. Put the pieces together, and we have raised our forecast for US core PCE to 3.0% from 2.6% – a more modest increase than many on the street as we anticipate margin compression taking more of the strain. For most of the rest of the world, the drag on growth and impact of Chinese goods seeking alternative markets are the dominant forces and so the impact of Trump's tariffs is disinflationary. We see global inflation ending 2025 at 3.2%, down from 5.1% at the end of 2024 and on a path to 2.7% at the end of 2026. Slower global growth, falling inflation mean rate cuts ahead The impact of the trade war on growth and inflation differs across economies. The potential for inflationary consequences is keeping the Fed in wait-and-see mode. For the People's Bank of China, the hit to external demand keeps the dial tilted toward easing. Weaker growth and disinflation as Chinese goods seek new markets both make the European Central Bank likely to cut again. In the UK, which has struck a (narrow) deal with the US, domestic issues, not tariffs, are the primary focus of monetary policy. We anticipate 25 basis points of cuts this year from the Fed, followed by 150 bps next year as Chair Powell's successor plays catch-up. For the world as a whole, we anticipate the GDP-weighted central bank rate falling to 5% at end 2025, down from 6.1% at end 2024 and on a path to 4% at end 2026. Consumer-led slowdown is biggest risk to the US outlook Store shelves are stocked. Inflation is benign. People have jobs. And consumer dollars are flowing, albeit at moderating pace and to fewer car dealerships. That's the view from the US economy, which has so far proved mostly resilient in the face of a new Trump trade war and conflict in Europe and the Middle East. That's not to say the economy isn't cooling. It is – we project GDP growth of 1.0% in the second half of the year, with a consumer-led slowdown the biggest risk to the outlook. As Fed Chair Jerome Powell has emphasized, when tariffs are imposed, someone ultimately bears the cost. We see it so far being borne mostly by the US side – mainly by firms via profit-margin compression, and only partly by consumers via higher consumer prices. Euro-area GDP hit to worsen on higher tariffs, pharma threat The chaos surrounding Trump's trade policies shows no sign of easing. The US has toughened its stance in trade negotiations, with President Trump issuing a new tariff threat of 30%. While negotiations between the EU and the US are expected to continue, it now seems unlikely that the pharmaceutical sector will dodge tariffs this year. In our updated projections, we have factored in a 25% tariff on pharma exports from the EU. That shaves an additional 0.3% from the level of GDP – adding to the drag on growth, without adding up to a crash. When combined with more disinflationary pressures from weaker demand, it reinforces our view that the European Central Bank will move rates back below neutral. We forecast a terminal rate of 1.5%. UK growth was volatile in 1H25, driven by the behavioral response of UK firms to an increase in US tariffs. The impact of higher levies on the level of output has so far been modest, though we think the drag is likely to intensify in 2H25 on the back of softer global growth. Domestic factors will likely play a larger role in shaping the outlook over the next 6-12 months. The labor market is loosening as a result of tepid demand and a rise in payroll tax. A further tightening of fiscal policy is likely in the autumn and will act as a headwind to growth next year and beyond. We expect GDP to rise by 1.2% in 2025 and 1.1% in 2026. CPI inflation is likely to average 3.4% in 2025 and 2.4% in 2026. The BOE, meanwhile, is likely to lower rates to 3.75% in 2025,followed by one more 25-bp cut in 2026. China growth above 5% target faces trade war reckoning From AI breakthroughs to growth tracking above the 5% target, China's economy held up well in 1H25, considering all the challenges from a trade war to a sinking property market, low confidence, and deflation. We've raised our 2025 GDP projection to 4.8% from 4.6%. 2H25 will be a lot harder. A reduction in US tariffs that breathed life back into exports and related sectors is scheduled to expire in mid-August. Consumption is slack beyond a lift from a trade-in program for home appliances and smartphones. Outside the tech sector, private investment continues to slide. Consumer prices are likely to fall this year for the first time since 2009. Monetary easing and faster fiscal delivery have put a floor under growth. Without additional stimulus, a sharp downturn in momentum later in the year looks likely. Japan stagflationary risks rise as barriers to BOJ hikes pile up Japan is facing stronger stagflationary pressures than it was a quarter ago. Inflation is on a higher path, buoyed by wage gains and rising price expectations. The BOJ is looking to pare stimulus. But gridlock in Japan-US trade talks and a surge in long-term JGB yields over concerns July's upper house election will open the door to fiscal expansion mean it's likely to stay on hold until October. This could weaken the yen, stoking inflation. We've pushed back our call for a 25-bp rate hike to October from July. We've also lifted our core CPI inflation forecasts (excluding fresh food) to 3.4% for 2025 and 2.7% for 2026 (from 2.9% and 1.6%). With consumption under pressure from the cost-of-living squeeze, we now expect real GDP growth of 0.8% in 2025 and 0.5% in 2026 – down from our previous forecasts of 1.0% and 0.6%. India may clock 7% growth on RBI rate cuts, interim US deal India's economy is set to start rebounding in the current fiscal year after a drubbing last year from tight domestic policies. Among the key factors that support our projection are: the Reserve Bank's rate cuts since February, strong rural growth prospects due to surplus monsoon rains expected this year, and broad expectation of an impending interim trade deal with the US that may offer India better terms than to its rivals. We will revisit our call, depending on the out come of tariff negotiations. We see growth rebounding to 7.0% in fiscal 2026 – which started in April – from 6.5% in fiscal 2025. The fuller impact of monetary easing and expected progress on trade agreements with the US and EU is likely to play out in fiscal 2027, when we expect growth to recover more strongly to 7.7%. Click the Text tab for the full report.
The Guardian
9 hours ago
- The Guardian
Tate director blames Brexit and Covid for slump in visitors
The Tate galleries in London are struggling to attract young European visitors after Brexit and the pandemic, with the art institution's leader blaming the demographic shift for a steep decline in attendance figures. Maria Balshaw, the director of Tate, said the impact of Covid and leaving the EU was keeping 16- to 24-year-olds away from the two sites in the capital. Annual attendance data from the Association of Leading Visitor Attractions (Alva) released in March showed that Tate Modern and Tate Britain had a 27% decline in attendance since 2019 – a drop of 2.2 million visitors. Tate's attendances were particularly poor compared with other cultural attractions in London: the National Portrait Gallery only had a 3% dip over the same period, while the British Museum had 4%. Balshaw highlighted internal research that showed domestic visitor numbers are at 95% of pre-Covid levels, but international numbers are only at 61%. 'The figures speak for themselves,' she told the Art Newspaper. 'Tate Modern alone welcomed 609,000 visitors from Europe, between ages 16 to 24, in 2019-20 but then 357,000 in 2023-24. 'And if you think about that age of person: they are profoundly affected by the combination of Brexit changing their educational and work opportunities and then Covid profoundly affecting the end of their studies and the way they choose to live their lives. They are, in general, also travelling less.' Critics of Tate and Balshaw blamed 'woke' curatorial choices for the disappointing attendance figures – with some suggesting free entry might need to be abolished. The attendance figures came just after Tate announced it would be cutting 7% of its workforce in order to address a funding deficit left over from the pandemic. A Tate spokesperson said at the time: 'Such changes ensure we have the stability we need to continue being as ambitious and innovative as ever'. The Guardian understands there are no specific plans to attract young Europeans, though the institution has recently announced a series of late openings that often attract younger audiences. Tate Modern, which celebrated its 25th anniversary this year, welcomed more than 76,000 people during its birthday weekend – a turnout insiders hope could signal a rebound in 2025.
Time of India
a day ago
- Business
- Time of India
From September 2, US visa interview waiver only in special cases
The US has further tightened its non-immigrant visa norms, including conditions for interview waivers. From Sept 2, all non-immigrant visa applicants, including applicants under 14 and those over 79, "will generally require an in-person interview with a consular officer", barring a few exceptions, the US state dept said in a July 25 update. One exception includes "applicants renewing a full validity B-1, B-2, B1/B2 visa... within 12 months of the prior visa's expiration, and who were at least 18 years old at the time of the prior visa's issuance". "To be eligible for an interview waiver (applicants renewing a full validity B-1, B-2, B1/B2 visa), applicants must also meet certain criteria, including that they (a) apply in their country of nationality or residence, (b) have never been refused a visa (unless such refusal was overcome or waived), and have no apparent or potential ineligibility," the update says. In-person interviews may still be held on a case-by-case basis: US "Consular officers may still require in-person interviews on a case-by-case basis for any reason," the US state department update says. Soon into President Donald Trump's second term in office, the US had this Feb reverted to the pre-Covid interview waiver condition of a same class visa expiring within 12 months of applying for the same. In Nov 2022, when the wait time for B1/B2 (business and tourism visa) interview in India had crossed 999 days (touching almost three years), the US had increased the eligibility for same class drop box visa renewal - which does not require an interview - from 12 months to 48 months. As of now, the state dept website shows the B1/B2 average interview wait time is 14 months in Chennai, 9.5 months in Mumbai; 8 months in Delhi, and 6 months in Kolkata. "Applicants should check embassy and consulate websites for more detailed information about visa application requirements and procedures, and to learn more about the embassy or consulate's operating status and services," the July 25 update adds. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
