Tag Archives: PPLMOV

Meta board approves personal security to outgoing executive Sheryl Sandberg

Sept 30 (Reuters) – Meta Platforms Inc (META.O) said on Friday its board had approved providing personal security services to former Chief Operating Officer Sheryl Sandberg, citing “continuing threats to her safety”.

The company, however, did not elaborate on the threats that Sandberg, one of the most powerful women in Silicon Valley, faces. It expects to continue to pay for security services at her residences and during her personal travel from Oct. 1 till June 30 next year.

Sandberg, a close associate of Meta’s Chief Executive Mark Zuckerberg, said in June she would depart the social media giant after a 14-year stint when she led the company’s often-criticized ads-based business model.

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Under Sandberg, the company was also buffeted by revelations in 2018 that U.K. consultancy Cambridge Analytica had improperly acquired data on millions of its U.S. users to target election advertising.

The same year, U.N. human rights investigators said the use of Facebook had played a key role in spreading hate speech that fueled violence against the Rohingya community in Myanmar.

Sandberg will no longer be an employee after Sept. 30 but will remain on its board, the Facebook-owner said in a regulatory filing.

Previously, Meta has spent heavily on the security of its top executives. Last year, the company spent $26.8 million for the personal security and private aircraft of Zuckerberg, it revealed in April.

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Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila

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Volkswagen triggers landmark Porsche IPO plan, defying market doubts

Attendees look at the 2022 Porsche 718 Cayman GT4 RS during the 2021 LA Auto Show in Los Angeles, California, U.S. November 17, 2021. REUTERS/Ringo Chiu

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HAMBURG/FRANKFURT, Sept 5 (Reuters) – Volkswagen (VOWG_p.DE) on Monday announced its intention to float sportscar brand Porsche, triggering what could become one of the world’s largest listings even as markets jitter over record inflation and a Russia-Europe energy standoff.

The carmaker published a so-called intention to float for an initial public offering in late September or early October to be completed by the end of the year.

The move was announced after VW’s supervisory board gave the go-ahead late on Monday. read more

Investors expect a valuation between 60-85 billion euros. At the high end of estimates, the IPO could be the largest in German history and the biggest in Europe since 1999, Refinitiv data showed.

“The Board of Management of Volkswagen AG today resolved, with the consent of the Supervisory Board, to pursue an initial public offering,” Volkswagen said.

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Reporting by Paul Carrel, Victoria Waldersee, Jan Schwartz; Emma-Victoria Farr, Christoph Steitz, Ilona Wissenbach in Frankfurt
Additional writing by Tom Sims; Editing by Matthew Lewis and Alistair Bell

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Emma-Victoria Farr

Thomson Reuters

Reports on European M&A with previous experience at Mergermarket, Bloomberg The Daily Telegraph and Deutsche Presse Agentur.

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Bed Bath & Beyond CFO dies after falling from New York’s Jenga tower

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Sept 4 (Reuters) – Bed Bath & Beyond Inc’s (BBBY.O) chief financial officer fell to his death from New York’s Tribeca skyscraper known as the “Jenga” tower on Friday afternoon, police said on Sunday, days after the struggling retailer announced it was closing stores and laying off workers.

Gustavo Arnal, 52, joined Bed Bath & Beyond (BBBY.O) in 2020. He previously worked as CFO for cosmetics brand Avon in London and had a 20-year stint with Procter & Gamble (PG.N), according to his LinkedIn profile.

On Friday at 12:30 p.m. ET (1630 GMT), police responded to a 911 call and found a 52-year-old man dead near the building who suffered injuries from a fall. Police identified the man as Gustavo Arnal.

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The police statement did not provide further details on the circumstances leading to Arnal’s death and said the New York City Medical Examiner’s Office would determine the cause of death. Bed Bath & Beyond confirmed his death in a press statement on Sunday but gave no details.

The big-box chain – once considered a so-called “category killer” in home and bath goods – has seen its fortunes falter after an attempt to sell more of its own brand, or private-label goods.

Last week, Bed Bath & Beyond said it would close 150 stores, cut jobs and overhaul its merchandising strategy in an attempt to turn around its money-losing business.

It forecast a bigger-than-expected 26% slump in same-store sales for the second quarter and said it would retain its buybuy Baby business, which it had put up for sale. read more

Signage is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo

Arnal sold 55,013 shares in Bed Bath & Beyond in multiple transactions on Aug. 16-17, Reuters’ calculations showed based on SEC filings. The sales amounted to about $1.4 million, and Arnal still had almost 255,400 shares remaining.

On Aug. 23, the company, Arnal and major shareholder Ryan Cohen were sued over accusations of artificially inflating the firm’s stock price in a “pump and dump” scheme, with the lawsuit alleging Arnal sold off his shares at a higher price after the scheme.

The class action lawsuit listed Arnal as one of the defendants and was brought by a group of shareholders who claimed they lost around $1.2 billion.

The filing in the U.S. District Court for the District of Columbia alleged that Arnal “agreed to regulate all insider sales by BBBY’s officers and directors to ensure that the market would not be inundated with a large number of BBBY shares at a given time.”

The lawsuit also alleged that he issued materially misleading statements to investors.

The company said it was “in the early stages of evaluating the complaint, but based on current knowledge the company believes the claims are without merit.”

Shares in Bed Bath & Beyond have been highly volatile in recent months, being viewed as a so-called “meme” stock, which trade more on social media sentiment than economic fundamentals.

Cohen, a billionaire investor, disclosed a stake of nearly 10% in early March. Cohen’s RC Ventures disclosed plans to sell its stake on Aug. 17. read more

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Reporting by Kanishka Singh in Washington and Akriti Sharma in Bengaluru; additional reporting by Chuck Mikolajczak; Editing by Lisa Shumaker and Deepa Babington

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Credit Suisse looking at cutting around 5,000 jobs -source

A logo is pictured on the Credit Suisse bank in Geneva, Switzerland, June 9, 2022. REUTERS/Denis Balibouse

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ZURICH, Sept 2 (Reuters) – Credit Suisse (CSGN.S) is considering cutting around 5,000 jobs, about one position in 10, as part of a cost reduction drive at Switzerland’s second-biggest bank, a source with direct knowledge of the matter told Reuters.

The scale of the potential job cuts underlines the challenge facing Credit Suisse and new chief executive Ulrich Koerner, who is seeking to put the bank back on an even keel after a string of scandals.

The bank declined to comment beyond repeating that it would give an update on its strategy review with its third-quarter earnings, saying that any reporting on outcomes was speculative.

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Credit Suisse has dubbed 2022 a “transition” year with a change of guard, restructuring to curtail risk-taking in investment banking and bulking up wealth management.

The Zurich-based bank has dismissed speculation that it could be bought or broken up.

The discussions about job cuts are ongoing and the number of reductions could still change, the source said. Swiss newspaper Blick earlier reported that more than 3,000 jobs would be shed.

Credit Suisse has already said it will cut costs below 15.5 billion Swiss francs ($15.8 billion) in the medium term, versus an annualised 16.8 billion francs this year.

So far, it has not outlined job cuts.

Koerner, promoted to CEO just over a month ago, has been given the task of paring back investment banking and cutting more than $1 billion in costs to help the bank recover from a string of setbacks and scandals.

His strategic review, the second in less than a year, will evaluate options for the bank, while reaffirming its commitment to serving wealthy customers.

The Swiss lender is under increasing pressure to turn around the business and improve its financial resilience.

“Cutting cost is the easiest immediate step it can take. But it’s not a strategy,” said Andreas Venditti, an analyst with Vontobel. “You can end up in a vicious circle, where jobs are cut, service declines and customers leave.”

Venditti highlighted another conundrum: “Should restructuring costs, including from job cuts, run into the billions, the bank may also need to raise more capital.”

Analysts at Deutsche Bank estimate that it may need to bolster capital by 4 billion Swiss francs to shore up its buffers and fund the revamp.

Koerner, 59, a restructuring expert, succeeded Thomas Gottstein as CEO in August after a tumultuous two years punctuated by huge losses, a rare court conviction for the bank in Switzerland and a 40% plunge in its shares.

Between April and June, the bank chalked up a 1.59 billion Swiss franc loss, as legal costs mounted. Its investment bank alone lost 1.12 billion Swiss francs before tax.

Twin hits – a $5.5 billion loss on the default of U.S. family office Archegos Capital Management and the shuttering of $10 billion of supply chain finance funds linked to collapsed British financier Greensill – have also beset the bank.

In June, Credit Suisse was also convicted of failing to prevent money laundering by a Bulgarian cocaine trafficking gang in Switzerland’s first criminal trial of one of its major banks. It is appealing against the conviction.

In a sign that Credit Suisse expects an improvement in its fortunes, a senior executive told Reuters that it is still betting big on China and plans to launch a wealth business there next year. read more

The bank aims to start offering wealth management services in China next year on the back of securing full ownership of its local securities venture.

($1 = 0.9825 Swiss francs)

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Reporting by Oliver Hirt, writing by Michael Shields; Editing by Elisa Martinuzzi, John O’Donnell, Alexander Smith and Jane Merriman

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Fauci, face of U.S. COVID response, to step down from government posts

  • Immunologist served as adviser to seven presidents
  • Fauci was vilified by Trump and Republican lawmakers
  • He faced death threats over pandemic policies

Aug 22 (Reuters) – Dr. Anthony Fauci, the top U.S. infectious disease official who became the face of America’s COVID-19 pandemic response under Presidents Donald Trump and Joe Biden, announced on Monday he is stepping down in December after 54 years of public service.

Fauci, whose efforts to fight the pandemic were applauded by many public health experts even as he was vilified by Trump and many Republicans, will leave his posts as chief medical adviser to Biden and director of the U.S. National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH). Fauci, 81, has headed NIAID since 1984.

The veteran immunologist has served as an adviser to seven U.S. presidents beginning with Republican Ronald Reagan, focusing on newly emerging and re-emerging infectious disease dangers including HIV/AIDS, Ebola, Zika, monkeypox and COVID-19.

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Fauci endured criticism from Trump and various conservatives and even death threats against him and his family from people who objected to safeguards such as vaccination, social distancing and masking that he advocated to try to limit the lethality of the COVID-19 pandemic. After defeating Trump in the 2020 election, Biden made Fauci his chief medical adviser.

“I definitely feel it was worth staying as long as I have. It is unfortunate, but it is a fact of life that we are living in a very, very divisive society right now,” Fauci told Reuters on Monday.

Fauci said he never considered resigning due to the threats against him.

“I don’t like the idea that I have to have armed federal agents with me. That’s not a happy feeling. It’s reality. And you’ve got to deal with reality,” Fauci said.

Republican lawmakers including fierce critic Rand Paul, with whom Fauci tangled during Senate hearings, vowed on Monday to investigate him if they gain control of either the House of Representatives or Senate in November’s congressional elections.

“As he leaves his position in the U.S. Government, I know the American people and the entire world will continue to benefit from Dr. Fauci’s expertise in whatever he does next,” Biden said in a statement. “The United States of America is stronger, more resilient and healthier because of him.”

Fauci signaled his impending departure last month, telling Reuters he would retire by the end of Biden’s first term, which runs to January 2025, and possibly earlier. read more

The United States leads the world in recorded COVID-19 deaths with more than one million. In the first months of the pandemic in 2020, Fauci helped lead scientific efforts to develop and test COVID-19 vaccines in record time and took part in regular televised White House briefings alongside Trump.

Fauci became a popular and trusted figure among many Americans as the United States faced lockdowns and rising numbers of COVID-19 deaths, even inspiring the sale of cookies and bobblehead dolls featuring his likeness.

However, Fauci drew the ire of Trump and many Republicans for cautioning against reopening the U.S. economy too quickly and risking increased infections and for opposing the use of unproven treatments such as the malaria drug hydroxychloroquine.

‘A DISASTER’

Democrats accused Trump of presiding over a disjointed response to the pandemic and of disregarding advice from public health experts including Fauci. Trump in October 2020, weeks before his re-election loss, called Fauci “a disaster” and complained that Americans were tired of hearing about the pandemic. Trump even made fun of Fauci’s off-target ceremonial first pitch at a Washington Nationals baseball game.

Fauci sometimes publicly contradicted Trump’s statements about the pandemic. Fauci said on Monday that while he respects the office of the presidency, he felt he had to speak out “when things were said that were outright untrue and quite misleading.”

“I didn’t take any great pleasure in that,” Fauci said.

Paul frequently attacked Fauci during Senate hearings on the pandemic. read more

Fauci has accused Paul of spreading misinformation. Paul on his website has accused Fauci of “lying about everything from masks to the contagiousness of the virus.” Fauci during one hearing noted that Paul placed fundraising appeals on his website next to a call to have him fired.

Fauci said staying on until December allows for a search for a new director of NIAID, an institute with an annual budget exceeding $6 billion, and the appointment of an acting chief. Fauci also said he wanted to remain to help address an expected autumn upswing in COVID-19 infections.

Fauci made clear that while he will be leaving government service, he will not be retiring. He said in the future he hopes to use his expertise to help inspire a new generation of doctors to pursue careers in public health, medicine and science.

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Reporting by Leroy Leo in Bengaluru and Julie Steenhuysen in Chicago; Additional reporting by Kanishka Singh in Washington; Editing by Will Dunham and Sriraj Kalluvila

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Philips parts ways with CEO in midst of massive recall

  • Van Houten to leave after almost 12 years at helm
  • To be replaced on Oct. 15 by Connected Care head Jakobs
  • Shares up 2%, but down more than 50% since product recall

AMSTERDAM, Aug 16 (Reuters) – Philips (PHG.AS) Chief Executive Frans van Houten will leave the company in October, the Dutch health technology firm said on Tuesday, after a key product recall cut its market value by more than half over the past year.

Philips said Van Houten would be replaced on Oct. 15 by Roy Jakobs, head of the company’s Connected Care businesses. Van Houten’s third term as CEO had been due to end in April.

Jakobs, 48, is currently overseeing the company’s recall of millions of ventilators and machines for the treatment of sleep apnea. That process has lopped almost $30 billion off Philips’ value as investors fear large claims.

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“The time is right for the change in leadership,” Philips said in a statement.

Philips shares were up 2% in afternoon trading, but are still down almost 60% since its warning in June 2021 that foam used for sound dampening might release toxic gases that could carry cancer risks. read more

When it started the recall in September last year, Philips said it expected to complete the replacement and repair of all affected machines within a year.

But after broadening the scope of the operation to around 5.5 million devices worldwide, Philips in June said the work was only around halfway done.

ADDITIONAL TESTS

The U.S. Food and Drug Administration (FDA) in January classified the recall as Class 1, or the most serious type, posing a threat of injury or death.

The FDA said on Tuesday it had received 48,000 new Medical Device Reports containing complaints about potential injuries related to the Philips devices, including 44 deaths, between May 1 and July 31 this year. read more

That is more than twice as many reports as it received for the entire year to April 30, 2022, which totalled over 21,000. They included 124 deaths.

CEO Frans van Houten from the Dutch health technology company Philips presents the company’s financial results for the fourth quarter and full year 2018, in Amsterdam, Netherlands, January 29, 2019. REUTERS/Eva Plevier

The FDA said it would analyse the reports and examine the possible reasons for the increased number.

The complaints do not prove causality, but are an indicator of the severity of the problem.

Philips in June said it had supplied the FDA with evidence from independent tests on the recalled devices which showed foam degradation was mainly linked to the use of aggressive, unauthorised ozone-based cleaning products. read more

It has promised to run additional tests to determine the potential toxicity of degraded foam parts, even though the tests so far had shown that the parts did not leave the machine.

Philips estimated the costs of the recall at 900 million euros ($915 million). That sum does not cover the possible costs of litigation. The company is facing more than a hundred class action suits.

“If you have three recalls in 10 years, it’s too much. His (Van Houten’s) position had become untenable,” said analyst Jos Versteeg of InsingerGilissen. He was referring to a defibrillator recall in 2017 and problems with medical scanners in 2014.

“This situation is not really under control, I think, because we’re still waiting for the definite conclusion of the (safety) studies.”

Although the blow to Philips’ reputation could have led it to pick an outsider for the top job, supervisory board chairman Feike Sijbesma said Jakobs was the right man to fix the company’s problems.

“He led the ramp up of production following the recall and knows very much about patient safety and product quality, so also from that perspective he is the right person,” he said.

During his almost 12 years at the helm, 62-year old Van Houten oversaw the disposal of Philips’ lighting and consumer electronics divisions.

Philips now focuses on medical imaging, monitoring and diagnostic equipment and competes against General Electric (GE.N) and Siemens Healthineers (SHLG.DE).

($1 = 0.9833 euros)

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Reporting by Bart Meijer; Additional reporting by Ahmed Aboulenein in Washington; Editing by Matt Scuffham, Emelia Sithole-Matarise and Richard Pullin

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Former Deutsche Bank co-CEO Anshu Jain dies

Anshu Jain, co-CEO of Deutsche Bank, addresses the bank’s annual general meeting in Frankfurt, Germany, May 21, 2015. REUTERS/Kai Pfaffenbach

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Aug 13 (Reuters) – Anshu Jain, a top finance executive best known for helping German lender Deutsche Bank AG (DBKGn.DE) take on the largest Wall Street firms, died overnight on Saturday after a five-year battle with cancer, his family said. He was 59.

Jain, who was born in India, spent two decades building Deutsche Bank into one of the world’s top universal banks. He was the first non-European to lead the German institution.

In the aftermath of the financial crisis of 2008 and the European debt crisis that followed, Jain pushed Deutsche to remain Europe’s “last man standing” as U.S. firms pulled ahead in global banking.

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The years of expansion into risky investment banking businesses came back to haunt the bank, as regulation made complex trades more costly. As co-chief executive he struggled to cut back the risk and to get a grip on a long list of scandals that led to billions of dollars in fines.

He resigned from the German lender in 2015, and had been the president of U.S. financial services firm Cantor Fitzgerald since 2017.

“He will be remembered for his leadership in financial services and his deep commitment to conservation,” said Larry Fink, chief executive of BlackRock Inc, who said he knew Jain well.

Born in the Indian city of Jaipur, Jain earned his bachelors at the University of Delhi before completing an MBA at the University of Massachusetts in Amherst.

A lifelong vegetarian, he loved wildlife photography, safaris in Kenya’s Masaai Mara and wilderness conservation, his family said.

He joined Deutsche in 1995 to launch a division specializing in hedge funds and derivatives. He then headed bond trading and emerging markets and later, as head of the investment bank, he out-earned his boss, then-CEO Josef Ackermann.

He was appointed to Deutsche’s management board in 2009 and was responsible for the corporate and investment bank division from 2010. From 2012 to 2015, he was co-CEO.

“Anyone who worked with Anshu experienced a passionate leader of intellectual brilliance,” said present CEO, Christian Sewing.

Jain was diagnosed in January 2017 with duodenal cancer, which affects the small intestine, but managed to outlive his initial diagnosis by four years, the family said.

“To his last day, Anshu stood by his lifelong determination to ‘not be a statistic’,” the family said.

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Reporting by Vera Eckert in Frankfurt and Maria Ponnezhath in Bengaluru, Editing by Franklin Paul and Clelia Oziel

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Credit Suisse expected to announce Koerner as CEO, latest change at helm – sources

July 26 (Reuters) – Credit Suisse Group AG (CSGN.S) is expected to announce Ulrich Koerner as its new chief executive, the latest management churn at the Swiss bank as it struggles to recover from a series of scandals, two sources familiar with the situation said on Tuesday.

Pressure had been mounting on current CEO Thomas Gottstein for months over major scandals and losses racked up during his two-year tenure that have hammered shares and angered investors. In recent months some investors had called for replacing Gottstein, but the bank resisted.

Another senior executive, Christian Meissner, head of the lender’s investment bank, is also planning to leave the group, the Financial Times reported.

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One of the sources said the bank was expected to announce the change in CEO on Wednesday along with its quarterly results.

Credit Suisse declined to comment. Meissner did not respond to requests for comment from Reuters.

When Gottstein took the helm in 2020, he promised a “clean slate” for the bank, which was recovering from an internal spying scandal that cost his predecessor Tidjane Thiam his job.

Since Thiam left in February 2020, the stock is down nearly 60% and troubles at the bank have only escalated. In 2021, the bank disclosed a $5.5 billion loss from the unraveling of U.S. investment firm Archegos and the collapse of $10 billion worth of supply chain finance funds. The events prompted management ousters, investigations, and a capital increase – followed by further losses and fresh legal cases. read more

Credit Suisse brought in Koerner in April 2021 to lead its newly separated asset management division following the collapse of the $10 billion worth of supply chain finance funds linked to insolvent financier Greensill Capital.

Koerner returned to Credit Suisse from arch-rival UBS, where he most recently served as adviser to the CEO from 2019 to 2020. He ran UBS Asset Management from 2014 to 2019. Koerner was previously a senior executive at Credit Suisse Financial Services and ran the Swiss business. read more

Koerner, who used to work for McKinsey, is considered a restructuring expert in Switzerland.

Nevertheless, the appointment would follow other major European banks where diversity at the top has been lacking. The 25 biggest banks by assets have seen 22 changes in chief executive and chair over the past two years according to a Reuters review of senior industry roles. Twenty-one of those 22 jobs went to men. read more

This spring, Credit Suisse’s chairman Axel Lehmann reiterated his support for Gottstein after Artisan Partners, the bank’s ninth-largest shareholder, had publicly called for Gottstein to be replaced. read more

“I fully back him because he is good,” Lehmann said in a CNBC interview at the World Economic Forum meeting in Davos. He dismissed as “rumors and speculations” talk that Gottstein could be on his way out.

The WSJ earlier reported that Gottstein may soon be replaced, days after Swiss newspaper SonntagsZeitung reported the bank is considering further cost cuts. read more

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Reporting by Oliver Hirt in Zurich, Shivam Patel in Bengaluru and Elisa Martinuzzi in London; Additional writing by Megan Davies; Editing by Devika Syamnath and Richard Pullin

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‘Them’s the breaks’: Boris Johnson quits as UK prime minister

  • Cabinet ministers resigned en masse, telling him to go
  • Johnson bows out after spate of scandals
  • Aims to stay on til successor named, many want him out now
  • Combative, chaotic approach to governing alienated many
  • Britain’s economy slumping amid cost-of-living crisis

LONDON, July 7 (Reuters) – Scandal-ridden Boris Johnson announced on Thursday he would quit as British prime minister after he dramatically lost the support of his ministers and most Conservative lawmakers, but said he would stay on until his successor was chosen.

Bowing to the inevitable as more than 50 ministers quit and lawmakers said he must go, an isolated and powerless Johnson said it was clear his party wanted someone else in charge.

“Today I have appointed a cabinet to serve, as I will, until a new leader is in place,” Johnson said outside his Downing Street office where his speech was watched by close allies and his wife Carrie.

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“I know that there will be many people who are relieved and perhaps quite a few who will also be disappointed. And I want you to know how sad I am to be giving up the best job in the world. But them’s the breaks.”

Johnson gave no apology for the events leading to his announcement and said his forced departure was “eccentric”.

There were cheers and applause as he began his speech, while boos rang out from some outside the gates of Downing Street.

After days of battling for his job, Johnson had been deserted by all but a handful of his closest allies after the latest in a series of scandals broke their willingness to support him.

· Russia rejoices over Boris Johnson’s downfall: the ‘stupid clown’ has gone

· UK defence minister Wallace front-runner to lead Conservatives: poll

· Angry and isolated, Boris Johnson lost his popular touch

The Conservatives will now have to elect a new leader, a process which could take weeks or months, with details to be announced next week. read more

A snap YouGov poll found that defence minister Ben Wallace was the favourite among Conservative Party members to replace Johnson, followed by junior trade minister Penny Mordaunt and former finance minister Rishi Sunak.

While Johnson said he would stay on, opponents and many in his own party said he should leave immediately and hand over to his deputy, Dominic Raab.

Keir Starmer, leader of the main opposition Labour Party, said he would call a parliamentary confidence vote if the Conservatives did not remove Johnson at once. read more

“We can’t go on with this prime minister clinging on for months and months to come,” he said.

The crisis comes as Britons are facing the tightest squeeze on their finances in decades, in the wake of the COVID-19 pandemic, with soaring inflation, and the economy forecast to be the weakest among major nations in 2023 apart from Russia.

It also follows years of internal division sparked by the narrow 2016 vote to leave the European Union, and threats to the make-up of the United Kingdom itself with demands for another Scottish independence referendum, the second in a decade.

Support for Johnson had evaporated during one of the most turbulent 24 hours in recent British political history, epitomised by finance minister, Nadhim Zahawi, who was only appointed to his post on Tuesday, calling on his boss to resign.

Zahawi and other cabinet ministers went to Downing Street on Wednesday evening, along with a senior representative of those lawmakers not in government, to tell Johnson the game was up.

Initially, Johnson refused to go and seemed set to dig in, sacking Michael Gove – a member of his top ministerial team who was one of the first to tell him he needed to resign – in a bid to reassert his authority.

But by Thursday morning as a slew of resignations poured in, it became clear his position was untenable.

“You must do the right thing and go now,” Zahawi tweeted.

Some of those that remained in post, including Wallace, said they were only doing so because they had an obligation to keep the country safe.

There had been so many ministerial resignations that the government had been facing paralysis. Despite his impending departure, Johnson began appointing ministers to vacant posts.

“It is our duty now to make sure the people of this country have a functioning government,” Michael Ellis, a minister in the Cabinet Office department which oversees the running of government, told parliament.

FROM POPULAR TO DESERTED

The ebullient Johnson came to power nearly three years ago, promising to deliver Brexit and rescue it from the bitter wrangling that followed the 2016 referendum. He shrugged off concerns from some that his narcissism, failure to deal with details, and a reputation for deceit meant he was unsuitable.

Since then, some Conservatives had enthusiastically backed the former journalist and London mayor while others, despite reservations, supported him because he was able to appeal to parts of the electorate that usually rejected their party.

That was borne out in the December 2019 election. But his administration’s combative and often chaotic approach to governing and a series of scandals exhausted the goodwill of many of his lawmakers while opinion polls show he is no longer popular with the public at large.

The recent crisis erupted after lawmaker Chris Pincher, who held a government role involved in pastoral care, was forced to quit over accusations he groped men in a private member’s club.

Johnson had to apologise after it emerged that he was briefed that Pincher had been the subject of previous sexual misconduct complaints before he appointed him. The prime minister said he had forgotten.

This followed months of scandals and missteps, including a damning report into boozy parties at his Downing Street residence and office that broke COVID-19 lockdown rules and saw him fined by police over a gathering for his 56th birthday.

There have also been policy U-turns, an ill-fated defence of a lawmaker who broke lobbying rules, and criticism that he has not done enough to tackle inflation, with many Britons struggling to cope with rising fuel and food prices.

In his resignation speech, Johnson highlighted his successes – from completing Brexit to ensuring the fastest COVID-19 vaccine rollout in Europe. But he said his attempts to persuade colleagues that changing leader while there was war in Ukraine and the government was delivering on its agenda had failed.

“I regret not to have been successful in those arguments. And of course, it’s painful not to be able to see through so many ideas and projects myself,” he said.

“But as we’ve seen at Westminster the herd instinct is powerful – when the herd moves, it moves and, my friends, in politics no one is remotely indispensable.”

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Additional reporting by William James, Kylie MacLellan, Andrew MacAskill, Alistair Smout, William Schomberg, Muvija M, Farouq Suleiman and Sachin Ravikumar; Writing by Michael Holden and Elizabeth Piper; Editing by Kate Holton, Frank Jack Daniel, Toby Chopra and Mark Heinrich

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Bed Bath & Beyond replaces CEO Tritton as sales sink

June 29 (Reuters) – Bed Bath & Beyond Inc (BBBY.O) on Wednesday replaced Chief Executive Officer Mark Tritton as part of a management shake-up to reverse a slump in its business, the home goods retailer said.

Shares fell 13% in premarket trading as the company’s first-quarter net sales slumped 25%, rounding off a year of sales slipping below market expectations.

The rejig at the top management comes just a few months after activist investor and billionaire Ryan Cohen criticized the retailer for an “overly ambitious” strategy, overpaying top executives and failing to reverse market share losses.

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Cohen, who is also the chairman of GameStop Corp (GME.N), had disapproved of Tritton’s $27 million compensation over the last two years, saying it was far more than what top bosses earned at bigger retailers including Macy’s (M.N), Kohl’s (KSS.N), and Dollar Tree (DLTR.O).

An exterior view shows a Bed Bath & Beyond store in Novi, Michigan, U.S., January 29, 2021. REUTERS/Emily Elconin

“Mr. Tritton should recognize that chief executives who are awarded outsized compensation and seek frequent publicity also invite much higher expectations when it comes to growth and shareholder value creation,” Cohen said in March.

The company subsequently reached an agreement with Cohen by appointing three new directors, two of them to the committee exploring options for its baby products unit.

On Wednesday, it named the head of the strategy committee and independent director Sue Gove as Tritton’s replacement on an interim basis.

Tritton was made CEO in 2019 soon after the retailer settled with another set of activist investors who had criticized it for failing to adapt quickly to a shift in consumer preference to shop online.

Bed Bath & Beyond also replaced its chief merchandising officer Joe Hartsig with Mara Sirhal, general manager of its Harmon health and beauty stores, as it looks to overcome supply chain issues that have plagued it for most of the pandemic.

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Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

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