Category: Business News

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Michelle Geraghty-Carns

Spas and firms offering complementary therapies such as massage, detox and hydrotherapy have told the BBC they could go out of business soon if they cannot reopen in July.

“I can sustain my business for another two weeks, and that’s it,” says Michelle Geraghty-Carns, owner of complementary therapy clinic EternalBeing and spa firm EternalSpa in Enderby, Leicestershire.

Entrepreneurs in the industry were already struggling with a slump in demand, having had to shut their businesses due to coronavirus restrictions.

And so, when spas and firms offering complementary therapies were not included on a long list of businesses allowed to reopen from 4 July, many felt dismay.

Ms Geraghty-Carns, who has been in business for 20 years, last week made the difficult decision to shut her spa down because she could no longer afford the lease on the premises.

Her clinic, which offers a range of treatments for allergies, intolerances and deficiencies, is in better shape, but she fears that won’t last long.

Like others in the complementary therapy sector, Ms Geraghty-Carns is “frustrated and annoyed” that the government is permitting hairdressers, pubs and restaurants in England to reopen, but not businesses like her own, which she feels are just as safe.

The BBC has approached the Department for Business, Energy and Industrial Strategy for a comment.

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Michelle Geraghty-Carns

Although she is certified by several national complementary therapy governing bodies, Ms Geraghty-Carns’ work is not officially classed as healthcare, so it falls into a grey area and is often mistaken as being part of the beauty industry.

“No one’s using any common sense when looking at separate businesses,” she says. “You speak to your insurer, or the local council, and we’re told we’ve got to wait until the government gives us the sign-off.”

Adding to her financial woes, Ms Geraghty-Carns had refurbished her clinic and spa and invested heavily in personal protective equipment (PPE), expecting she would be allowed to reopen.

“That all cost £38,000 and we’ve had to get a bank loan to pay for it. And I just picked up the latest in American hydrotherapy equipment last week that costs £20,000,” she says.

‘What do you mean by massage parlour?’

Professional massage therapists in the UK are facing a similar challenge, but they also have to contend with negative connotations wrongly attributed to their occupation.

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Anneli Hukins

“I think the government’s phrasing of ‘massage parlour’ is hugely disturbing. I don’t know what kind of parlours politicians frequent, but my work is in pain management,” says Anneli Hukins, a former nurse and self-employed mobile massage therapist in Kent, who owns health business Woodstock Holistics.

“I’m furious that having spent so much of my life studying to treat people who are sick or injured I’m being told to stay at home, when hairdressers can go to work, and hairdressing is not an essential part of health and wellbeing.”

Ms Hukins, a fellow of the Complementary Medical Association (CMA), is currently writing a paper on why massage therapy should be reclassified as being on par with other physical therapies such as physiotherapy and osteopathy.

The National Institute for Health and Care Excellence (Nice) has found that massage can help conditions such as sciatica and lower back pain as an alternative to medication, but the NHS is not currently offering this therapy.

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Gillian Tomkins

Gillian Tomkins, 70, from Northiam, East Sussex, is a retired nurse who suffers from osteoarthritis. It is incurable – a side effect from being on her feet for most of her career.

“I’ve had one hip replacement. The other hip is no good and my shoulders are no good,” she says. “I’m in constant pain and I’m taking more pain medication than I was before lockdown began.”

Ms Tomkins says she misses her massage therapist and is “desperate” for relief, as her medication only goes so far.

“I only see my therapist once every other week and it’s amazing, it keeps you going.”

‘We need to open urgently’

Aly Thobani is the owner and director of Spa and Massage, a chain of five massage therapy clinics in London that started in 2007.

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ALY THOBANI

He employs healthcare professionals, physiotherapists and massage therapists, all of whom are certified.

“I am worried about the future of my business. The prolonged closure runs up more costs and we’re already in a very precarious position,” he says.

“We’ve got hundreds of emails from clients enquiring whether we can send therapists to their homes, but mobile massage therapy is not allowed either.”

Before the pandemic, the business was doing 1,000 massages a week. Like many in the wellbeing industry, Mr Thobani had expected that if hairdressers could open, so could other services providing hands-on therapies.

He is very upset by the government’s recent announcement: “What Boris Johnson said about massage parlours is insulting and discriminatory, because a massage parlour has a connotation of something sexual.

“But massage therapy clinics are a mainstream business – people are coming to get something fixed.

“During treatment, the client lies face down. We have air-ventilated rooms, the client can wear masks, we can wear masks. We can check temperatures and we have an appointment-only service.”

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Spa and Massage

Mr Thobani is worried because landlords are chasing rent on his five premises, and from 30 September onwards they will be able to take legal action against those who can’t pay.

It means Spa and Massage needs to find the money to pay for around four months of rent covering lockdown, its PPE costs, and the salaries of staff when they come back to work.

But revenues are likely to be 50% lower than usual even if the firm can reopen, Mr Thobani says, because it will not be able to see as many clients as it could prior to lockdown.

“We need to see the government allow massage therapy clinics to open urgently and change the classification of such businesses to be medical professionals,” he says.

“My life savings are in this, years of work, and all of our contractors are also sitting at home.

“They’re all really passionate about their work – this is what they do, they fix people. It’s their livelihood and they have no idea when they will be able to work again.”

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About 600 workers will lose their jobs after shirtmaker TM Lewin announced it will close all 66 of its UK shops.

The firm said most of its 700 workers will be laid off as it takes all of its sales online, to help cut costs.

It comes weeks after a private equity company bought the brand with plans to restructure it.

Many retailers have announced lay-offs during the coronavirus pandemic, with furniture chain Harveys also revealing cuts on Tuesday.

Founded in Panton Street, London, in 1898, TM Lewin sells shirts and suits at shops across the UK.

• Clarks to cut 900 office jobs in shake-up
• Oasis and Warehouse collapse into administration

All its stores shut when lockdown began, but none reopened when restrictions were eased earlier in June.

Torque Brands, a subsidiary of Stonebridge Private Equity, bought the business in May. On Tuesday it said it had struck a deal to avoid administration.

In a statement, Torque said the entire retail sector was facing a “very real threat”.

“The Torque team has worked to assess all available avenues for the business model going forwards, but having done so, has formed the view that TM Lewin is no longer a viable going concern in its current format,” it said.

“The decision to significantly reduce the scale of the business in order to preserve its future will regrettably result in job losses at TM Lewin, as a direct result of the closing of the store network as we right-size the business.”

Lockdown slump in demand

Retailers, many of which were struggling even before the pandemic, have been hit hard as consumer demand has slumped in recent months.

Shoemaker Clarks has said it will cut 700 jobs and Mulberry is planning about 500 cuts. Oasis and Warehouse have gone into administration, putting 1,800 jobs at risk and leading to 200 immediate cuts.

On Tuesday, furniture chain Harveys and Bensons for Beds both called in administrators.

Harveys is seeking a buyer for about 20 stores and three manufacturing sites, while Bensons – Britain’s second-largest beds retailer – will close around 50 of its 175 outlets.

The firms, which are owned by the same parent company, have made 240 immediate job cuts and a further 1,300 positions are under review.

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Aerospace giant Airbus says it plans to cut 15,000 jobs as it deals with the effects of the coronavirus crisis.

It will cut 1,700 jobs in the UK, along with thousands more in Germany, Spain and elsewhere.

The move is subject to talks with unions which have opposed compulsory redundancies.

The company warned in April that it was “bleeding cash at an unprecedented speed”.

Some 134,000 people work for Airbus worldwide, with around a tenth of them in the UK.

The firm said the UK cuts would fall at its sites in Broughton in Wales and Filton in Bristol.

It expects to make the cuts by summer 2021, but hopes the majority of redundancies will be voluntary or through early retirement of staff.

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EasyJet says it has begun consultations on plans to close bases at Stansted, Southend and Newcastle.

It follows an announcement by the airline that it may need to reduce staff numbers by up to a third because of the coronavirus pandemic.

Separately, pilots’ union Balpa said it had been told by EasyJet that 727 of its UK-based pilots were at risk of redundancy.

That is equivalent to one in three of its pilots, Balpa said.

EasyJet chief executive Johan Lundgren said: “The lower demand environment means we need fewer aircraft and have less opportunity for work for our people.

“We are committed to working constructively with our employee representatives across the network with the aim of minimising job losses as far as possible.”

However, Balpa general secretary Brian Stratton said the job cuts were “an excessive over-reaction”.

“EasyJet won’t find a supply of pilots waiting to come back when the recovery takes place over the next two years.”

Easyjet currently has 11 bases in the UK, with 163 aircraft, serving 546 routes.

Even though it is looking at closing Stansted, Southend and Newcastle, it said the airports would remain part of its route network.

The airline said in May that it planned up to 4,500 job cuts as it struggled with the collapse in air travel due to the coronavirus crisis.

Airlines have been hit hard by lockdowns and travel restrictions around the world, with many announcing job cuts.

Even though Easyjet has started to fly passengers again, it does not expect 2019 levels of demand to be reached again until 2023.

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The UK economy shrank more than first thought between January and March, contracting 2.2% in the joint largest fall since 1979, official figures show.

The Office for National Statistics (ONS) revised down its previous estimate of a 2% contraction, with all the main economic sectors dropping.

There was a significant economic impact in March, as the coronavirus pandemic began to have an effect.

The data comes as the prime minister set out a post-lockdown recovery plan.

Boris Johnson said in a speech in Dudley, in the West Midlands, that there would be investment in infrastructure and schools.

Jonathan Athow, deputy national statistician at the ONS, said: “Our more detailed picture of the economy in the first quarter showed GDP shrank a little more than first estimated.

“Information from government showed health activities declined more than we previously showed.

“All main sectors of the economy shrank significantly in March as the effects of the pandemic hit.”

The first-quarter contraction is now the joint biggest drop since the July-to-September period in 1979.

• What is GDP and why does it matter?
• PM pledges to ‘build back better’ post-virus

Mr Athow said: “The sharp fall in consumer spending at the end of March led to a notable increase in households’ savings.” The new data showed that GDP contracted by 6.9% in March.

The first-quarter figures show that the services sector – which accounts for about three-quarters of UK GDP – shrank by a record 2.3%.

The ONS said production output fell by a revised 1.5% in the three months, driven by declines in manufacturing as factories temporarily shut down, while there was a fall in construction output of 1.7%.

The coronavirus lockdown only came into force on 23 March, so figures for the second quarter of the year will show the full hit on the economy.

Recent ONS monthly figures showed the economy plummeted by 20.4% in April – the largest drop in a single month since records began.

That contraction was three times greater than the decline seen during the whole of the 2008 to 2009 economic downturn.

Off the scale

It says something that the first quarter of the year was the worst for the economy in 41 years – and yet it was still barely a tenth the size of the contraction in activity in just one month – last April.

The figures put the government’s “build build build” announcement in perspective. The £5bn infrastructure spending being “brought forward” is not new money in any case. It was set aside in the pre-election manifesto at a time when the economy looked very different.

Compare it, say, to the £69bn it’s estimated that small businesses will lose in the pandemic because they’ve had to stop trading (according to research by small business insurers Simply Business). Or compare it to total public spending of more than £1,000bn, and it’s less than 0.5%.

Against the size of the economy based on the latest GDP numbers, the mooted infrastructure spend is more like 0.25%. The government’s going to have to spend a lot more than that to stimulate a recovery from a slump on this scale.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the latest figures could be summed up in one line: “The biggest contraction for 40 years, even though Q1 contained just nine lockdown days.”

The data “was just the prelude”, with worse to come, he added.

However, while economists are braced for a dire set of second-quarter figures, Howard Archer, at the EY Item Club, believes April’s sharp contraction is likely to have been the low point.

He predicted the economy would “return to clear growth in the third quarter with GDP expanding close to 10% quarter-on-quarter” as lockdown restrictions are eased further.

‘Radical reforms’

In a speech on Tuesday, Mr Johnson promised an “infrastructure revolution”, arguing the government needed to “work fast” to support jobs whilst also seeking to “level up” the economy so that all parts of the country can benefit.

He said the government would introduce “the most radical reforms of our planning system since the end of the Second World War” to speed up building and infrastructure projects where, he argued, the UK compares unfavourably with other European countries.

As part of what he called a “new deal”, the prime minister set out plans to accelerate £5bn of spending on infrastructure projects.

Meanwhile, separate ONS data on the nation’s finances showed that Britain’s current account deficit widened by more than expected in the first quarter.

The balance of payments deficit – the difference between the value of the goods and services that a country imports and the goods and services it exports – rose to £21.1bn, or 3.8% of GDP.

This means the UK is reliant on inflows of cash from abroad and leaves the pound vulnerable, according to Mr Tombs.

“Sterling almost certainly would depreciate sharply again if a major second wave of Covid-19 emerges or if the UK and EU fail to either sign a trade deal or to extend the transition period before the end of this year,” he said.

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Passengers travelling between the UK and some countries will no longer have to quarantine, under the government’s air bridges scheme.

Most people entering the UK currently have to quarantine for two weeks, but the new rules will make travel easier.

The list of countries will be announced later this week and come into effect shortly.

What are air bridges?

Air bridges will allow smoother travel between two countries with relatively low levels of coronavirus.

They work in both directions, so people can travel between them without having to quarantine on arrival.

Air bridges are also known as ”travel corridors” when they include international journeys made via land and sea.

The government looks set to introduce them using a traffic light system.

This will classify countries as green, amber or red depending on the number of new cases of coronavirus there and how that could change in the near future.

Travellers entering the UK from a country in the green or amber category will not have to quarantine. Those travelling from countries in the red category will.

It is thought that all incoming passengers will still have to fill in a contact locator form with their personal details and the address of where they will be staying.

• What are the UK travel quarantine rules?
• UK to open up European holidays from 6 July

These classifications won’t be set in stone – if coronavirus cases rise in the UK or a partner country, either one could decide to close the air bridge and impose restrictions.

Equally, more air bridges could be established if infection rates fall in the UK and around the world.

Why are air bridges being introduced?

The Foreign Office has advised against all but essential international travel since 17 March, but is currently reviewing its advice on this. The guidance is expected to be lifted for countries categorised as green or amber.

This will allow Britons to go abroad on holiday or see relatives. It could help the UK receive an economic boost from tourists.

However, the Scottish government says it has not made a decision on whether to ease restrictions. While border control is overseen by the UK government, health measures – such as quarantine requirements – are decided by each home nation separately.

Which countries are on the list?

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An initial list of countries which have agreed air bridges with the UK will be announced later this week.

More than 15 nations are thought to be on the list, including France, Spain, Italy, the Netherlands, Belgium, Germany, Norway and Finland.

But there are still question marks around Portugal, which was the first country to offer an air bridge with the UK but has recently seen a rise in new cases around Lisbon.

Sweden, which did not impose strict lockdown measures and has a higher infection rate than the UK, is also unlikely to have made the list.

Greece is also likely to be missing from the list. The country, which has reported fewer than 200 coronavirus deaths, says it will not accept direct flights from the UK until at least mid-July.

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The organisers of the Geneva Motor Show have decided to scrap next year’s event and want to sell up.

The international auto show was due to take place in March 2021 but the company behind it has seen weak demand from car brands and exhibitors.

This year’s event was cancelled along with a host of other motor shows around the world due to the coronavirus.

The announcement raises questions about the future of such events globally as car brands rethink their strategies.

“The automotive sector is currently going through a difficult phase, and exhibitors need time to recover from the effects of the pandemic,” said the Committee and Council of the Foundation “Salon International de l’Automobile”, which organises the international motor show.

The majority of the event’s exhibitors who took part in a survey said they would “probably not participate” in a show next year, the organisers added.

• Could the coronavirus kill off global motor shows?
• How trade shows have been hit hard by coronavirus

This year’s Geneva motor show was cancelled in February, just days before it was due to open. It regularly attracts more than half a million visitors.

Other auto shows were also scrapped this year, including those planned for New York and Detroit, amid health concerns. Car brands use such events to debut their latest models and unveil concept cars.

Instead, they have turned to their own online launches during virus lockdowns and travel restrictions.

On Monday, the Geneva motor show organisers also announced plans to sell the show’s assets to owners of the Palexpo conference centre in Geneva where the event is held, calling it “the preferred solution”.

The move will now put the spotlight on other motor shows planned for next year in major cities, given their cost and huge logistical efforts compared to online launches.

The Geneva International Motor Show is the largest public event in Switzerland and has an economic impact of 200m Swiss francs(£171m; $210m) a year, according to the organisers.

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A drinks maker has become China’s most valuable publicly-listed company, overtaking the country’s biggest bank.

Kweichow Moutai is a luxury spirit favoured by Chinese politicians and businesspeople looking to impress.

The company’s share price has risen dramatically this year, pushing its value to new highs.

Despite producing one of China’s most prestigious brands, few people will have heard of it outside of the country until now.

As its value has risen, Kweichow Moutai has leapfrogged Industrial & Commercial Bank of China (ICBC), the world’s largest commercial bank by assets, to become the country’s most valuable public company.

Its share price has rocketed more than 20% so far this year according to data from Refinitiv and it is one of the few Chinese listed companies whose share price has exceeded 100 yuan (£11, $14).

Chinese tech giant Alibaba is more valuable, but isn’t listed in China. Huawei, another well-known Chinese company, is privately owned.

Based on Monday’s closing share prices, Kweichow Moutai is currently valued at more than 1.8tn yuan. ICBC is currently worth just under 1.8tn yuan.

What is Kweichow Moutai?

Kweichow Moutai has an unusual corporate structure. It is partially state-owned and partially publicly-listed on the Shanghai Stock Exchange.

Formed in 1999, Kweichow Moutai is the world’s most valuable liquor company, having surpassed UK-based Diageo three years ago.

It manufactures and distributes a unique brand of baijiu, a clear and colourless liquor which is considered China’s national spirit.

Baijiu typically has an alcohol content of between 35% and 60% by volume.

John Watkins, an alcohol industry expert who has worked extensively in China, said: “Doing shots with Moutai is part of the business culture and accelerates building trust and friendships.”

Talking about the manufacturer, he added: “It appears from the outside to be a well-run company that will be able to generate sustainable and growing profits as China’s consumer market grows and has more and more purchasing power.”

Why is it so prestigious?

Kweichow Moutai was a favourite drink of People’s Republic of China’s (PRC) founding father Mao Zedong who famously served it at state dinners during US President Richard Nixon’s visit to China in 1972.

In 1974, the US Secretary of State Henry Kissinger told Deng Xiaoping, China’s future paramount leader: “I think if we drink enough Moutai we can solve anything.”

Such glowing endorsements made Moutai the brand of choice for the elite, a must-have at business banquets and a display of wealth and power.

“It is considered as a status symbol because of the high price and limited supply, which I believe it is part of Moutai’s marketing and sales strategy,” said David Liu, an analyst and regular baijiu drinker based in Shanghai.

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Why has its share price suddenly shot up?

Shares in Kweichow Moutai have risen since the coronavirus pandemic broke out in China, while other alcohol brands have seen their values fall.

Kweichow Moutai is often drunk at home so sales have not been dented like rival brands who rely heavily on bars and clubs that have been closed during virus lockdowns.

The luxury brand is also benefitting from the US-China trade war.

“Right now, with rising patriotism from pride in how China has so far contained Covid-19 and anger at the US from Trump’s trade war, Chinese are increasingly buying domestic brands and products out of patriotism.

“This is true from sports apparel to cosmetics to alcohol,” said Shaun Rein, founder of the China Market Research Group.

He added that because Chinese can’t travel overseas on costly shopping trips to Europe, they are spending on domestic luxury consumption instead.

How much does it cost?

Buyers regularly spend about up to 900 yuan (£91, $127) for a bottle of Kweichow Moutai baijiu but the price can rise dramatically for rare and good vintages. Some bottles sell for up to $20,000.

Although distribution and price setting is heavily controlled by the Chinese government, many people buy bottles as speculative investments to hold onto and sell at a higher price.

And how does it taste? “The first time I tried Moutai it tasted like engine oil – fiery and burnt my throat on the way down. Now I find it smooth and enjoyable,” said Mr Rein.

Kweichow Moutai still has some way to go to become the world’s most valuable listed company. That title currently belongs to Saudi Aramco (Saudi Arabia Oil Company) which is valued at almost $1.9tn, according to Refinitiv.

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The economic impact of the coronavirus has taken a heavier toll on low-wage earners according to Tomas J Philipson, the chair of the White House Council of Economic Advisers.

In an exclusive with the BBC before his reported departure, he said: “There’s a sort of unique impact of this shock in that its very regressive, hitting the low wage part of the economy. Low-wage workers take a bigger hit than higher wage”.

The virus has derailed any progress the US was making in raising the living standards of those on low pay, Prof Philipson said in an interview for Coronavirus: The Economic Shock, in which some of the world’s leading economists and business leaders look at how the gravest economic downturn in nearly a hundred years may change the way we live and work.

“We had enormous success in growing lower wages before the pandemic struck, so this has taken a very regressive toll on the economy,” he argues.

This has political implications for the upcoming November election as President Trump enjoys far higher support among non-college educated voters – often used as a proxy for low vs high wage earners – than among those who have college degrees.

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Prof Philipson also plays down the chances of a rapid economic recovery. “I’m not saying we are going to have a v-shaped recovery, in fact the data shows a sort of gradual response.”

However, he also defends the United States’ response to the pandemic and places some of the responsibility Covid-19 in the US at the doors of state governors.

“We were the first country to introduce travel bans from China and were criticised for that. Many state governments run by Democratic governors did not act before the federal government, even though they were free to do so.”

He disagrees that a rise in US economic nationalism has been harmful to the world economy. “I think China was justifiably demonised in the sense that we treated them a lot better selling stuff here than they treated us selling stuff there. I think the president has done a lot to balance that”.

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Niall Ferguson, professor of history at Stanford University says the virus has seen economic tensions between the world’s two biggest economies become more than a trade dispute. “It seems to me pretty clear that we’re now in ‘Cold War Two’.

“It’s going to be different from ‘Cold War One’, not least because the US and the Soviet Union were never as economically interdependent as the US and China have become over the last 20 years.

“It’s hard to think of a better illustration of the downsides of globalisation than the extreme vulnerability it exposed to a virus that originated in in China.”This has, he believes, huge economic implications for the entire interconnectedness of the world economy and therefore the size and the health of the global economy.

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Globalisation has been credited with lifting hundreds of millions of people out of poverty but has also been blamed for deepening inequality within countries. The virus has operated like an X-ray on the global economic body and its revealed weaknesses and imbalances along economic, gender and ethnic fault lines.

Ursula Burns was the first African American woman to sit on the board of a Fortune 500 company and she now sits on the boards of Nestle, Uber and ExxonMobil. She says business is emerging as an unlikely and welcome ally in the fight against inequality that she says the pandemic has laid bare.

“Amazingly enough, business is starting to be at the centre of that conversation. At the centre because governments around the world are not articulate enough or sensitive enough or informed enough to contribute positively to this conversation. So out of nowhere, businesses start to change the discourse in the world.”

Will business step up? Or will the fight for survival mean savage cost-cutting and mass redundancies compounding the problems of inequality?

The International Labour Organization estimates that the equivalent of 305 million full-time jobs could be lost worldwide in the second three months of this year. The ILO says 1.6 billion workers in the informal economy -nearly half of the global workforce – are in immediate danger of losing their livelihoods.

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In developing countries, where government safety nets are weak and where economies are particularly vulnerable, things may be particularly tough.

It is a point made by Tony Elumelu, who is one of Africa’s most influential businessmen. He is a billionaire banker and founder of the Tony Elumelu Foundation, which invests in start-ups and SMEs (small and medium-sized enterprises) across the continent.

“We have endemic poverty in Africa. Over 80% of our population live from hand to mouth. They go out, they die of Covid. They sit at home, they die of hunger. Then what is better for them to do? It is a bad situation but it gives us all the opportunity to re-set.”

Big business – global corporations – seem ready to reset too. The chairman of Tata Group, Natarajan Chandrasekaran, and Nissan’s chief operating officer, Ashwani Gupta, both believe global business is in the midst of a long-term rethink on how employers organise their workforce and how supply chains and resources will operate. They suggest sustainability may become more of a focus.

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In a remarkable broadcasting moment, Mr Chandrasekaran – a titan of global business – looked out across Mumbai and reflected on the change. “You can hear the birds. We can breathe fresh air… on a clear day we can see the stars.”

So will the world grasp this opportunity to change how the world economy works and address pressing challenges that include global inequality and climate change?

Or when the health crises passes will things return to way they were? Will we miss an opportunity to change how the global economy functions for the welfare of us all?

Coronavirus: the Economic Shock is presented by Simon Jack and produced by Kirsty MacKenzie. It includes the thoughts of Nissan’s COO Ashwani Gupta, Nobel prize-winning economists Joseph Stiglitz and Paul Krugman, Facebook founder Mark Zuckerberg, Cisco CEO Chuck Robbins, Tata’s chairman Tata Natarajan Chandrasekaran; former UK prime minister Tony Blair, and Krishnamurthy Subramanian, the chief economic advisor to Indian PM Narendra Modi. It is broadcast on BBC Sounds and BBC World Service.

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Canadian entertainment firm Cirque du Soleil is to cut 3,500 jobs after striking a deal to avoid bankruptcy.

The group, best known for its flamboyant touring circuses, said the coronavirus pandemic had forced it to cancel shows and lay off its artists.

The company will now try to restructure while shedding about 95% of its staff.

“With zero revenue since the forced closure of all of our shows due to Covid-19, the management had to act decisively,” said boss Daniel Lamarre.

The firm had to pause production of all of its shows, including six in Las Vegas, back in March.

Along with its circuses, its also has musicals that tour the world including Michael Jackson One and The Beatles Love.

• Theatre and music figures say roadmap is ‘meaningless’ without support
• Theatre worker fears cuts will mean career change

The firm said it had entered an agreement under which its existing shareholders will take over Cirque’s liabilities and invest $300m (£244m) in the business.

Some $200m of this will take the form of a loan from the province of Quebec, where the firm is based.

It also said shareholders would set aside $20m to provide additional relief to affected employees and contractors.

It said it intended to rehire “a substantial majority” of terminated employees, business conditions allowing, once coronavirus-related shutdowns were lifted and operations could resume.

Cirque’s application for bankruptcy protection will be heard on Tuesday by the Superior Court of Quebec.