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Business Today
Business live
UK hit by recruitment slowdown, as Christmas sales disappoint
Live  
UK hit by recruitment slowdown, as Christmas sales disappoint
Rolling coverage of the latest economic and financial news, as recruitment giant Hays warns its profits will miss expectations as fees fall
Headlines
Horizon scandal  
Ministers scramble to clear names of Post Office victims
Ministers scramble to clear names of Post Office victims
Technology  
Post Office IT firm Fujitsu reports £22m UK profits as directors receive payouts
Paula Vennells to Ed Davey  
The people with questions to answer on the Post Office scandal
Retail  
Festive sales struggle as Britons spend more on going out and holidays
Air transport  
United Airlines finds loose bolts on multiple Boeing 737 Max 9 planes
Explainer  
What caused the Boeing plane issue and what does it mean for the rest of the fleet?
Nuclear Leaks  
Sellafield nuclear safety and security director to leave
Music  
CDs shine as sales in 2023 jump to near record figure
State aid  
EU announces €4bn to back battery and green tech factories
Technology  
‘Impossible’ to create AI tools like ChatGPT without copyrighted material, OpenAI says
Channel 4  
Broadcaster confirms round of major job cuts is looming
Exclusive  
Morgan Stanley and Allen & Overy help oligarch’s bid to seize Russian oil firm
Executive pay  
Billionaire Bet365 boss pockets further £270m
Today's agenda
December was a cruel month for UK recruiters and retailers.

Hays, the recruitment consultants, has reported that its fees – earned by placing candidates into roles) – fell by 15% last month, as demand from companies looking to fill vacancies slowed.

This led to a 10% drop in earnings across the last quarter, and the slowdown means Hays expects to miss market expectations for profits in the first half of its financial year.

The company is now accelerating its cost reduction and efficiency programmes.

Dirk Hahn, the Hays chief executive, says it is “too early to say” if December’s weakness shows a sustained market slowdown, or rather that some placements are simply being deferred.

But, Hahn warns, near-term market conditions are expected to remain challenging, citing increased uncertainties and reduced client and candidate confidence.

He told shareholders: “Overall market conditions became increasingly challenging through the quarter, including a clear slowdown in most markets in December, notably in our Perm businesses as client and candidate decision-making slowed. Temp volumes remained broadly stable sequentially through the quarter, but declined YoY as we did not see our normal seasonal step-up in worker volumes.

"As a result, we expect operating profit in our first half to be c.£60 million, despite our ongoing actions to reduce costs."

UK shoppers also cut back last month, leaving retailers suffering a disappointing festive period, new data this morning shows.

Total sales grew 1.7% in December, down from almost 7% growth a year earlier, the British Retail Consortium and consultancy KPMG have reported.

Their report shows there was a slight increase spending in the week leading up to Christmas as consumers scrambled to purchase last-minute gifts. But shoppers shunned clothing, jewellery and technology gifts, opting instead for beauty, health and personal care products, while toys and gaming also sold well.

And households remained cautious about making larger purchases in the post-Christmas sales.

Helen Dickinson, the chief executive of the BRC, says:“The festive period failed to make amends for a challenging year of sluggish retail sales growth.“Weak consumer confidence continued to hold back spending.”

Also coming up today
Boeing is facing an escalating crisis after loose parts were discovered on some grounded 737 Max jets, days after an Alaska Airlines plane suffered a mid-air blowout on Friday.

Alaska Airlines indicated that its maintenance technicians had found issues when inspecting their 737 Max 9 fleet, saying: “Initial reports from our technicians indicate some loose hardware was visible on some aircraft”.

The problems don’t end there either; United Airlines said yesterday it had found loose bolts and other “installation issues” on multiple 737 Max 9 aircraft.

Boeing’s shares fell 8% yesterday, as investors pondered the possible fallout from the accident.

The agenda
• 7am GMT: German industrial production for November
• 7.45am GMT: French trade balance for November
• 10am GMT: Eurozone unemployment report for November
• 10am GMT: Business and trade committee to quiz Asda co-owners TDR Capital
• 1.30pm GMT: US trade deficit figures for November
• 3pm GMT: RealClearMarkets/TIPP index of US Economic Optimism Index

We’ll be tracking all the main events throughout the day ...
Nils Pratley on finance
With the spectre of job cuts, Channel 4 bosses must be seen to share the pain
With the spectre of job cuts, Channel 4 bosses must be seen to share the pain
 

John Crace

Guardian columnist

Person Image

Well, 2023 didn’t exactly go to plan, did it? Here in the UK, prime minister Rishi Sunak had promised us a government of stability and competence after the rollercoaster ride of Boris Johnson and Liz Truss. Remember Liz? These days she seems like a long forgotten comedy act. Instead, Sunak took us even further through the looking-glass into the Conservative psychodrama.

Overseas, the picture has been no better. In the US, Donald Trump is now many people’s favourite to become president again. In Ukraine, the war has dragged on with no end in sight. Then there is the war in the Middle East and not forgetting the climate crisis …

But a new year brings new hope. We have to believe in change. That something better is possible. The Guardian will continue to cover events from all over the world and our reporting now feels especially important. But running a news gathering organisation doesn’t come cheap. So this year, I am asking you – if you can afford it – to give money. By supporting the Guardian from just £2 per month, we will be able to continue our mission to pursue the truth in all corners of the world.

With your help, we can make our journalism free to everyone. We couldn’t do this without you. Unlike our politicians, when we say we are in this together we mean it.

Happy new year!

 
Opinion
A TV drama is finally triggering action for Post Office victims. Why did it take so long?
A TV drama is finally triggering action for Post Office victims. Why did it take so long?
Editorial  
The Guardian view on the Post Office scandal: accountability is long overdue
In the race for AI supremacy, China and the US are travelling on entirely different tracks
Media
‘Boris bolt’  
LBC bolted down guest seat to stop former PM dodging cameras
LBC bolted down guest seat to stop former PM dodging cameras
Channel 4  
Broadcaster confirms round of major job cuts is looming
Spotlight
How one woman sold her clothes – and created a billion-dollar company
The Vinted phenomenon  
How one woman sold her clothes – and created a billion-dollar company
In 2008, Milda Mitkute and a friend set up a website to clear out her closet. It soon grew exponentially. Now Vinted has 16 million UK users and is the first Lithuanian ‘unicorn’. Can it make secondhand our first choice?
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