‘Eat out to help out,’ finance chief tells UK

The UK’s Casual Dining Group, owner of Bella Italia and other food franchises, is to cut more than 1,900 jobs and close 91 restaurants following the lockdown. (AFP)
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Updated 05 July 2020

‘Eat out to help out,’ finance chief tells UK

  • Minister’s plea as England reopens hospitality sector after three-month lockdown

LONDON: Britain’s finance minister urged people on Saturday to “eat out to help out” as the UK attempts to claw its way back from a historic economic decline sparked by the coronavirus crisis.

The comments by Chancellor Rishi Sunak were published on the day England finally reopened its hospitality sector after more than three months of lockdown.

Britain’s shutdown has been one of Europe’s longest because of an official toll — 44,131 — that only trails those of the US and Brazil.

Sunak said the closures have been especially painful for Britain because consumption makes up about two-third of its gross domestic product. “That’s more than most of our peers,” he told The Times newspaper.

“So we have a situation like this, with social distancing we’re obviously going to be particularly impacted by that.”

Sunak said he “worried about a generation that is scarred by coronavirus” — especially younger people who see the hospitality sector as their way into the job market.

“For me this is really about social justice,” he said.

“People act responsibly, but ultimately if we eat out to help out we can protect those jobs. It’s not abstract.”

The true scale of Britain’s unemployment problem will only be revealed once the government starts winding down its jobs furlough scheme in August.

The state currently supports 80 percent of most people’s wages. But jobless claims still surged 126 percent to 2.8 million in the three months to May.

Sunak will make an economic statement to parliament next week that will be watched closely for signs of how much support the government intends to give businesses in the future.

The government is running up debts, but interests rates are low and borrowing costs remain at a historic low.

The Bank of England’s chief economist Andy Haldane created waves this week by predicting a “V-shaped” recovery that will see old levels of performance return soon.

However, Sunak was less certain of a rapid economic rebound.

“We all want Andy to be right,” he said.

“But we have got to be realistic as well. You can’t shut down your economy in the way that we have for this many months without there being hardship as a result.”


Huawei: Smartphone chips running out under US sanctions

Updated 08 August 2020

Huawei: Smartphone chips running out under US sanctions

  • Huawei is at the center of US-Chinese tension over technology and security
  • Washington cut off Huawei’s access to US components and technology last year

BEIJING: Chinese tech giant Huawei is running out of processor chips to make smartphones due to US sanctions and will be forced to stop production of its own most advanced chips, a company executive says, in a sign of growing damage to Huawei’s business from American pressure.
Huawei Technologies, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. The feud has spread to include the popular Chinese-owned video app TikTok and China-based messaging service WeChat.
Washington cut off Huawei’s access to US components and technology including Google’s music and other smartphone services last year. Those penalties were tightened in May when the White House barred vendors worldwide from using US technology to produce components for Huawei.
Production of Kirin chips designed by Huawei’s own engineers will stop Sept. 15 because they are made by contractors that need US manufacturing technology, said Richard Yu, president of the company’s consumer unit. He said Huawei lacks the ability to make its own chips.
“This is a very big loss for us,” Yu said Friday at an industry conference, China Info 100, according to a video recording of his comments posted on multiple websites.
“Unfortunately, in the second round of US sanctions, our chip producers only accepted orders until May 15. Production will close on Sept. 15,” Yu said. “This year may be the last generation of Huawei Kirin high-end chips.”
More broadly, Huawei’s smartphone production has “no chips and no supply,” Yu said.
Yu said this year’s smartphone sales probably will be lower than 2019’s level of 240 million handsets but gave no details. The company didn’t immediately respond to questions Saturday.
Huawei, founded in 1987 by a former military engineer, denies accusations it might facilitate Chinese spying. Chinese officials accuse Washington of using national security as an excuse to stop a competitor to US tech industries.
Huawei is a leader among emerging Chinese competitors in telecoms, electric cars, renewable energy and other fields in which the ruling Communist Party hopes China can become a global leader.
Huawei has 180,000 employees and one of the world’s biggest research and development budgets at more than $15 billion a year. But, like most global tech brands, it relies on contractors to manufacture its products.
Earlier, Huawei announced its global sales rose 13.1 percent over a year ago to $65 billion in the first half of 2020. Yu said that was due to strong sales of high-end products but gave no details.
Huawei became the world’s top-selling smartphone brand in the three months ending in June, passing rival Samsung for the first time due to strong demand in China, according to Canalys. Sales abroad fell 27 percent from a year earlier.
Washington also is lobbying European and other allies to exclude Huawei from planned next-generation networks as a security risk.
In other US-Chinese clashes, TikTok’s owner, ByteDance, is under White House pressure to sell the video app. That is due to fears its access to personal information about millions of American users might be a security risk.
On Thursday, President Donald Trump announced a ban on unspecified transactions with TikTok and the Chinese owner of WeChat, a popular messaging service.