Ikea planning to repay furlough payments

[tiger76]

Well done them i say, i wonder if other companies will follow suit https://www.bbc.co.uk/news/business-53047895 and they weren't hit as badly as initially feared during the CV outbreak, now it's only one company, but perhaps it points to the possibility that the economy might recover quicker than we thought.

[claret2018]

It's an expensive bit of marketing.

[ClaretDiver]

Bit of a misleading article as Ikea didn't use UK Government money to pay furloughed workers....

[KateR]

it seems that no matter some people want to discredit, it is not a misleading article at all, perhaps you mean the title is misleading but even them I'm not sure. A responsible company doing the right thing should be applauded and have set a trend that hopefully some will follow. Unfortunately I do not see a quick recovery but then again it all depends what people term a quick recovery plus how you measure the point of recovery.

[ClaretMoffitt]

Bit of a misleading article as Ikea didn't use UK Government money to pay furloughed workers....

They paid for it themselves so by all intents and purposes they still did good.


Can't say I expect many other companies to follow their lead though

[paulatky]

it seems that no matter some people want to discredit, it is not a misleading article at all, perhaps you mean the title is misleading but even them I'm not sure. A responsible company doing the right thing should be applauded and have set a trend that hopefully some will follow. Unfortunately I do not see a quick recovery but then again it all depends what people term a quick recovery plus how you measure the point of recovery.

Time it will take to get to where we were on 29th February.

At least 10 years in my opinion.

But how recovery is measured will mean the reports of a recovery will be in the news a lot earlier than that.

Just imagine the hysteria reported next April.

“ Economy this month improves 10 % over the same month last year”

[KateR]

Time it will take to get to where we were on 29th February.

At least 10 years in my opinion.

But how recovery is measured will mean the reports of a recovery will be in the news a lot earlier than that.

Just imagine the hysteria reported not April.

“ Economy this month improves 10 % over the same month last year”

still not sure how you measure recovery, is it by GDP? We are obviously talking about country recovery and not companies recovery. One issue will be that the USA recovery will drive many other countries recovery as does China and to an extent Europe. While the downturn is not due to economic issues, such as 2008 and back to the great depression many countries were in good shape and the economic forecasts were ok.

I see the GDP recovery back to Feb 2020 for many leading economies, being second half of 2021 but that's just me, I do not see the fundamentals lasting like 2008 did, but it will be a U curve rather than a V. I also don't see austerity being implemented as a means to control but expect more stimulus type packages to appear for certain groups all within a growth area.

[tiger76]

The amount of people queuing in Oxford Street this morning suggests some people are willing and able to spend, now whether this continues in the coming months if job losses mount is another matter, and of course the furlough scheme will be winding down in a few months, that's when we'll get more of an idea whether the economic hit is short-term pain or not, and obviously what happens in the global markets etc will play it's part.

I do think 10 years is far too long for recovery, although this economic crash is deeper than the 2008 financial crash, the cure won't be austerity, the government would be mad too go down that route again, i suspect we'll see additional borrowing, and this will be justified as interest rates are at an all-time low.

Of course what would greatly assist the bounce back would be the discovery of a vaccine, and that's why there's such a raft of different trails occurring around the globe.

[KateR]

while obviously the economy has falling much deeper than 2008 it's for obvious reasons, people are not out and spending, in fact some on here have stated they have saved more during the last few month, I know as a household we have. The recovery will be much faster in numerous areas and probably at the bottom end of the spectrum while some areas, anyone who was working in the travel sector for examples and airlines in particular will take much much long to recover and that will affect GDP to a point. The vaccine would be an absolute bonus for this sector but then again maybe people will look to spend holidays in the UK or in any home country in terms of normal percentage of people who holiday abroad to at home, which could help the country in the recovery.

Lot's of areas will have an impact to the whole, just need to help where possible but as you say the public spending will be the critical element and catalyst as always, obviously why Gov. the world over are trying to open up.

For example we spent a lot of money this week in booking for our family to travel to Houston for the Easter holidays, not going to happen for quite a while obviously but the money was spent now.

[AndrewJB]

still not sure how you measure recovery, is it by GDP? We are obviously talking about country recovery and not companies recovery. One issue will be that the USA recovery will drive many other countries recovery as does China and to an extent Europe. While the downturn is not due to economic issues, such as 2008 and back to the great depression many countries were in good shape and the economic forecasts were ok.

I see the GDP recovery back to Feb 2020 for many leading economies, being second half of 2021 but that's just me, I do not see the fundamentals lasting like 2008 did, but it will be a U curve rather than a V. I also don't see austerity being implemented as a means to control but expect more stimulus type packages to appear for certain groups all within a growth area.

Austerity has begun already.

[CombatClaret]

If I were Ikea I'd pay in assorted cash but include two washers and one an extra screw.

[KateR]

Austerity has begun already.

really, ok if you say so it must have

[paulatky]

Austerity has begun already.

Austerity will be self imposed , not by the Government this time.

Unemployment is going to be high and taxes higher to pay for the support measures.

With high unemployment pay rises are going to be hard to come by for the majority of people,

Pilots redeployed as delivery drivers will become the norm.

[ClaretDiver]

it seems that no matter some people want to discredit, it is not a misleading article at all, perhaps you mean the title is misleading but even them I'm not sure. A responsible company doing the right thing should be applauded and have set a trend that hopefully some will follow. Unfortunately I do not see a quick recovery but then again it all depends what people term a quick recovery plus how you measure the point of recovery.

KateR, my post was not intended to discredit them at all. Maybe it was not worded perfectly..Ikea have led the way in how they are handling this worldwide and, as others have said, maybe it will make other companies sit up and take notice!

[paulatky]

BP has today written £17.5bn off its assets as they now forecast the oil price will average only $55 dollars a barrel between now and 2050.
Down 30% from their previous forecast of $75.

Things could get very messy.

[MrTopTier]

Good stuff, Sports Direct will be next

[AndrewJB]

Austerity will be self imposed , not by the Government this time.

Unemployment is going to be high and taxes higher to pay for the support measures.

With high unemployment pay rises are going to be hard to come by for the majority of people,

Pilots redeployed as delivery drivers will become the norm.

The government aren’t continuing with free school meals over the summer break. They’re also forcing Transport for London to scrap free bus travel for students. Little things like this add up, and in the current climate they’ll push people deeper into poverty.