Apology to Loan Sharks
Iceland boss Richard Walker has playfully taunted loan sharks by apologizing for taking business away from them during the profitable Christmas period. In a video posted on social media, Walker warned lenders that their Christmas may not be as lucrative as they had hoped.
Successful Micro-Loan Scheme
Iceland launched a micro-loan scheme last year to help families ease financial pressure during Christmas. The scheme offers interest-free micro-loans to hard-pressed families, allowing them to spread the cost of their seasonal treats. According to Walker, the scheme has been highly successful, with 71% of users stating that it made them less likely to fall into debt or miss bill payments.
Protecting Vulnerable Consumers
Walker emphasized the importance of micro-credit, especially during Christmas, in protecting vulnerable consumers from loan sharks. The supermarket's Food Club has lent a total of £7.2 million to 28,000 customers since its launch in 2022.
Illegal Moneylending in the UK
Fair4All Finance, a not-for-profit firm, estimates that over three million people in the UK have borrowed from illegal moneylenders in the last three years. Iceland's micro-loan scheme aims to provide a safe and affordable alternative to these illegal practices.
Anglo American Shares Plummet as Cost-Cutting Plans are Revealed
Drastic Cost-Cutting
Shares in mining giant Anglo American took a hit, plummeting around 15% after the company announced its cost-cutting plans. The company plans to slash production at its iron ore operations in South Africa and its Chile copper mine in order to save £1.5 billion by 2026. Since January, shares have dropped by 42%.
Berkeley Group Warns of Subdued Home Sales in Challenging Market
Decrease in Reservations
Homebuilder Berkeley Group has issued a warning that home sales will "remain subdued" due to a challenging market. The company reported a drop of one-third in reservations over the past six months as it completed fewer homes. Rivals in the industry have also expressed concerns about the market, citing soaring interest rates as a contributing factor.
