Category: Business News

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Kelly Mills

Stuck at home without a job during the pandemic, Kelly Mills initially turned to video games for escape. Then she decided to try her hand at a real world game: the stock market.

“I figured if I’m putting this much effort into the trading of these fictitious turnips, then surely I can figure out how the actual stock market works,” she says.

Soon the 34-year-old from Louisiana, who worked in the film industry, was following company rumours on Reddit, dialling into executive conference calls and tracking share prices as obsessively as posts on Instagram.

“I’m cooped up, I’m bored, I’ve got nothing better to do,” she says. “This isn’t me trying to make money. I’m just trying to pass the time.”

Like Ms Mills, millions of new investors in the US have piled into stocks in recent months, enabled by a dramatic crash in share prices in March, online brokerages offering low or no fees, and pandemic payments from the government.

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Online brokers – Charles Schwab, TD Ameritrade, Etrade and Robinhood – together saw more than 4.5 million new accounts in the first three months of the year, with many opened at the height of market fears in March.

Eric Sutherland, who works in sales and lives in Colorado, created an account on Robinhood after hearing about the app from a friend. He has bought about $1,300 (£1,040) worth of shares since March.

“You see the market crash and it’s like, ‘Oh wow.’ It’s not like these aren’t going to come back at some point, so why would you not?” he says.

Wall Street worries

Demand from the newbies has been one of the factors driving the rapid market rally, despite warnings from economists that recovery is likely to be slow and uneven.

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Eric Sutherland

In the US, the Nasdaq index hit new highs in June, while the Dow and S&P 500 are both about 15% off their pre-pandemic records.

While some investors are dabbling in penny stocks, many are investing in well-known consumer names such as Amazon and airlines, which are likely to rise as the economic recovery gains traction, says Nick Colas, co-founder of DataTrek Research.

“Their timing, by luck or by skill, was impeccable. They bought the absolute bottom, when things looked very, very bad and have been riding the wave all the way back up,” he says.

But the quick rebound – faster than the rally that followed the financial crisis – has raised concerns about the risks being taken by the amateurs.

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In the financial media, their presence has drawn comparisons to the late 1990s surge in so-called day trading that is now seen as a warning sign of the dotcom bust.

“They are just doing stupid things and, in my opinion, this will end in tears,” billionaire hedge-funder Leon Cooperman told broadcaster CNBC in June.

The worry isn’t so much for people like Ms Mills, who are looking for a pandemic pastime. It’s for the people who may invest so much that they end up losing everything.

Last month, one 20-year-old Robinhood trader was apparently so distraught over how much he thought he had lost that he killed himself.

Amid the outcry, Robinhood this week said it was postponing its launch in the UK indefinitely.

‘I had no idea’

The phenomenon of amateur investing is not confined to the US. Tom Priscott, 28, is from the UK but currently working for a US software company in the Spanish capital, Madrid, where he lives with his girlfriend.

“We were confined to our flat and I was thinking about supplementing my income,” he told the BBC. “Some of my friends were talking about stock prices being as low as they’ve ever been.”

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Tom Priscott

He spent hours watching online tutorials and studying how to trade, but when he opened an account, he burned through his stake in a matter of minutes.

“I started off with €100. I felt super-confident watching the ticker as stocks and shares were going up and down,” he said.

He piled into oil at $16 a barrel, thinking the price was sure to go up, but it fell almost immediately to $14.

“I didn’t have enough money to cover the loss, so it crashed out my position and I got an email. I had no idea what had happened.

“I thought I was owning barrels, but I wasn’t, I was borrowing. It was the fastest €100 I’d ever spent.”

‘Not stupid’

Ms Mills says she is well aware some of the current trading activity is little more than speculation.

One drone stock she followed, for example, climbed rapidly as investors caught wind of a video by the founder’s daughter that seemed to tie the firm to Amazon, only to tumble again when no partnership was announced.

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Kelly Mills

But Ms Mills – who sold her holdings before the decline, turning her $5 investment into about $100 – bristles at the tone of some of the comments.

“I’m not stupid,” she says. “I’m assuming I’m never going to see this money again and if I get some money back or I break even, that’s really cool.”

As the novelty of stockpicking wears off, and more people return to work, interest may fall off – but not necessarily for everyone.

Mr Sutherland says he’s bought stocks with money he would have spent going out with friends if lockdowns hadn’t been in place. But as restrictions loosen, he says, “We’ll see. I might have to create a new line on the budget.”

Amazon, Google and Wish have removed neo-Nazi and white-supremacist products being sold on their platforms following an investigation by BBC Click.

White-supremacist flags, neo-Nazi books and Ku Klux Klan merchandise were all available for sale.

Algorithms on Amazon and Wish also recommended other white-supremacist items.

All three companies told the BBC that racist products were prohibited on their platforms.

Oren Segal from the Anti-Defamation League (ADL), an anti-hate organisation, said the companies needed to “constantly be on top of what the algorithm is recommending”.

He said algorithms had to be “taught to be responsible”.

One of the items found for sale on Amazon was a white-supremacist flag featuring a Celtic Cross.

The ADL said the image featured on the flag was “one of the most common white-supremacist symbols”

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Amazon

One shopper had left a “review” of the product in June, stating: “This is a neo-Nazi flag. Amazon should not be profiting from this.”

However, another reviewer said the flag would be “good for use in parades” and thanked Amazon for “making it happen”.

Amazon’s algorithms recommended another controversial flag that shoppers had “frequently bought together”.

Both symbols were worn by the Christchurch gunman when he killed 51 people in 2019.

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Other products featuring a burning rainbow flag, similar to the one used by the LGBT community, were also found on Amazon.

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All of these products have now been taken down by Amazon.

Online retailer Wish has also taken down Ku Klux Klan-themed products, after being contacted by the BBC.

On the page for a KKK-themed cartoon, Wish recommended “related items” including a hood and a Celtic Cross.

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Products related to the Boogaloo movement were also found for sale on Amazon, Google and Wish.

The Boogaloo group is a far-right libertarian militia in the US. Several people linking themselves to the group have been charged with terrorism offences, and the murder of state officials in the US.

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All three platforms removed the Boogaloo content after being contacted by the BBC.

Google also removed racist content from its Google Books and Google Play stores.

The think tank Demos has raised concerns that online algorithms can push shoppers towards hateful content.

“It often takes human investigation to work out that people are being led down this path,” said Josh Smith of Demos.

How have the companies responded?

Amazon told the BBC: “The products in question are no longer available and we’ve taken action on the bad actors that offered the products and violated our policies.”

Google told the BBC: “We don’t allow ads or products that are sold on our platforms that display shocking content or promote hatred. We enforce these policies vigorously and take action when we determine they are breached.”

Wish said: “We are working hard to remove these items and taking additional steps to prevent such items appearing again.”

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Boohoo

You might have bought some joggers from there, or seen your favourite Instagram star wearing one of their dresses, but how much do you really know about Boohoo?

The online fashion firm has been a real winner during lockdown, with a massive increase in its sales by 45% to £368m in the three months to the end of May.

But it’s been hit by claims that workers at a Leicester factory that supplies some of its clothes were paid just £3.50 an hour, while being offered no coronavirus protection.

Boohoo has said it’s launching an investigation, but experts say it could struggle to make a comeback after the controversy.

Here’s five things you may not know about the company.

1. The Manchester-based family behind it are billionaires

Boohoo was founded by entrepreneur Mahmud Kamani and designer Carol Kane.

The pair had worked together at Pinstripe Clothing, a company that was set up by Kamani’s father Abdullah. It was one of the first suppliers to Asos and it designed and sourced clothes for Primark.

Kamani and Kane decided to cut out the middle man too. They set up their own online fashion store in 2006, with the aim of selling on-trend clothes directly, and cheaply, to shoppers.

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Although Boohoo has come under fire for selling £5 dresses, Mahmud Kamani and his family are now billionaires. He and Carol Kane are also in line for a £150m bonus if the business meets its growth targets.

The Manchester-based group also bought a stake in the Pretty little Thing brand – owned by Kamani’s son Umar – for more than £260m this year.

Umar posts about the family’s ups and downs on his Instagram, from panoramic shots of warehouses and media statements, to glamorous parties with celebrities and private jet trips.

2. Social media is key to its success

While big High Street names like Topshop or Debenhams might have been suffering over the last few years, business at Boohoo has been booming.

Part of its success is down to targeting under-30s who prefer to take style tips from social media influencers and buy clothes on their phones.

Boohoo spent £116.8m on marketing campaigns in the year to 29 February – almost 10% of its total sales.

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To drive customers to its website, it’s worked on collaborations with influencers including Love Island contestant Maura Higgins and paid for celebrity endorsements from the likes of R&B singer Ashanti.

The strategy seems to be paying off. According to research by polling firm YouGov in May, 11% of 18 to 24-year-olds had purchased something from Boohoo in the previous three months.

3. The group has bought struggling brands

Some experts have said that one key element behind Boohoo’s success is its online-only business model.

“The 16-24 age bracket have lower spending power, and they are more tech-savvy than older generations too, so the idea of online shopping appeals to them,” says David Madden at CMC Markets, who analyses firms’ finances to help clients make business decisions.

He adds that while competitors like Topshop or New Look might appeal to younger shoppers too, they have expensive High Street shops to run.

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Boohoo bought Nasty Gal’s brand assets, like its website and logos, in 2017 for $20m (£15m). It was founded by US businesswoman Sophia Amoruso who is credited with making the term “girl boss” mainstream.

But Boohoo’s recent purchases – including struggling chains Karen Millen, Coast, Warehouse and Oasis – have puzzled some.

“It was partially about diversifying it, but it was also about snapping up the fallen competition,” Mr Madden says.

“If Boohoo doesn’t buy their assets someone else might. The group can build its empire while reducing its dependency on its original brands.”

4. Boohoo turns clothes around quickly

Boohoo adds new dresses, tops, accessories and shoes to its website every single day.

To turn items around quickly, it uses what’s called a “test and repeat” model, where it produces small batches of lots of new styles – sometimes even just tens or hundreds of one item.

The company has the supply chains in place to then ramp up production of the best-selling pieces. About 40% of its clothing is produced in the UK.

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Boohoo told the BBC that the quickest a piece of clothing can go from design to sale is two weeks. Usually the norm is between four and six.But the firm’s dedication to “fast fashion” has been criticised. Politicians have complained about the waste generated from cheap, disposable clothes. Last year, a group of MPs even called for a clothing tax to be introduced.

5. It’s facing a backlash

Boohoo has also been forced to defend the fact it sells clothes very cheaply after allegations over pay and poor working conditions.

It has been accused of using a factory that underpaid workers, while they were being offered no protection from coronavirus.

The fashion firm has said the claims made about its suppliers – if true – are “totally unacceptable” and has promised to take action.

“We’re taking action to investigate allegations of malpractice in our supply chain and we ask government to take action too,” wrote Boohoo boss John Lyttle in a letter to Home Secretary Priti Patel. He backed proposals set out by MPs to do more to protect clothing makers.

“The main priority from here will be managing any reputational fallout,” says Sophie Lund-Yates at Hargreaves Lansdown, who follows how well companies perform financially and provides research to investors.

When the allegations came to light, Boohoo was criticised on Twitter and Instagram in posts using the hashtag #boycottboohoo.

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Influencers such as former The Only Way Is Essex cast member Vas Morgan and model Jayde Pierce distanced themselves from the brand on social media.

“The group is busy trying to root out if this is an isolated problem, or something more widespread, and we can expect an update on findings in the coming months,” Ms Lund-Yates says.

“Nonetheless it is a reminder that today’s consumers expect more from companies than ever before.”

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French Connection has confirmed that it will claim government cash for bringing workers back from furlough.

The fashion retailer told the BBC that about 250 of its staff are furloughed under the job retention scheme.

The chancellor announced in July that all firms can claim £1,000 for each employee they bring back from furlough.

“It’s mainly because we haven’t been able to access government funding apart from furlough,” a spokesperson for the chain said.

Under the job retention bonus, companies can claim the bonus if they bring back an employee from furlough for at least three months after the government’s wage payment scheme ends in October.

There are currently 9.5 million on the government’s furlough scheme who, if they all returned to work, could cost the public purse more than £9bn in bonus payments.

French Connection’s claim could come at a cost of up to £250,000.

• Rightmove and Compass say no to job retention bonus
• Primark says no to £30m job retention bonus

Some other fashion retailers have said that they will not take advantage of the handout.

Primark, for example, placed around 30,000 workers on the government’s coronavirus job retention scheme. But it has said it has now brought them all back and will not ask for the payment.

Elsewhere, property website Rightmove and catering giant Compass have said they would also reject the offer of millions of pounds in pay-outs from the bonus scheme.

Rise in online sales

In a trading update on Friday, French Connection said its websites in the UK and USA had posted a 24% year-on-year increase in sales over the last 15 weeks.

The retailer said it had also continued to supply online wholesale customers during lockdown.

However, it added that trade in its High Street shops had been slow since reopening on 15 June in England.

“As expected, given significantly reduced footfall, initial sales since reopening have been low, although conversion of those customers actually in the stores has been better than in the prior year,” the statement said.

“We are seeing sales volumes grow week-on-week, as further relaxation of the lockdown continues, however we anticipate this to be a gradual process especially in larger cities.”

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Goldman Sachs has reached a $3.9bn (£3bn) settlement with the Malaysian government for its role in the multi-billion-dollar 1MDB corruption scheme.

The deal resolves charges in Malaysia that the firm had misled investors when it helped raise $6.5bn for the country’s 1MDB development fund.

Prosecutors say billions of dollars were ultimately stolen – including by some of the bankers involved.

Goldman said the deal was “an important step” towards resolving the matter.

“There are important lessons to be learned from this situation and we must be self-critical to ensure that we only improve from the experience,” it added.

• 1MDB scandal: The playboys, PMs and partygoers
• Goldman’s role in the 1MDB scandal in 300 words

The settlement – the largest reached so far in the scandal – includes a $2.5bn cash payout by Goldman. The firm also said it would guarantee that the government would receive at least $1.4bn from money recovered from the scheme.

“This settlement represents assets that rightfully belong to the Malaysian people,” said Malaysia’s new minister of finance, Tengku Dato’ Sri Zafrul Aziz.

He said the deal meant the government had now recovered more than $4.5bn – roughly the amount prosecutors say was stolen – and settling the charges, brought in 2018, meant recovering funds would not be “held up by lengthy and costly court battles and legal process”.

What is the 1MDB scandal?

The charges stem from bond sales that Goldman arranged in 2012 and 2013 which raised money for the state fund.

Authorities say billions of dollars were ultimately embezzled to buy art, property, a private jet and super-yacht – and even to help finance the Wolf of Wall Street film, starring Leonardo DiCaprio.

The scandal has prompted investigations around the world and played a role in the election defeat of Malaysia’s former prime minister, Najib Razak, who was accused of pocketing $700m (£517m) from the fund he set up.

He has denied wrongdoing. A verdict is expected later this month.

What does this mean for Goldman?

The scandal has clouded reputation of Goldman Sachs, which saw more than a dozen of its executives charged in Malaysia last year for their handling of the matter.

The settlement resolves those claims and protects the firm from further charges.

The bank still faces possible charges in the US related to the deal, which American prosecutors say earned the firm about $600m.

“If [the settlement with Malaysia] were it, this would be old news and we’d all move on,” wrote Evercore ISI analyst Glenn Schorr on Friday.

“Unfortunately, [Goldman] will still have to settle with the DOJ to move on completely and if past major foreign corrupt practice cases are a good indicator (which we think they are), the DOJ settlement could wipe out most of the great second quarter they just put up.”

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Last year, a former Goldman partner, Tim Leissner pleaded guilty in the US to conspiring to launder money and violate American anti-bribery laws.

A Malaysian former managing director at the bank, Ng Chong Hwa, has also been charged in the US and Malaysia over the scandal.

The scandal’s alleged mastermind, jet-setting Malaysian financier Low Taek Jho, has also been charged in Malaysia and the US. Mr Low has denied any wrongdoing, and his current whereabouts are unknown.

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Portugal remains off the list of countries that the government has exempted from quarantine restrictions.

In changes that apply to England, travellers from Estonia, Latvia, Slovakia, Slovenia and St Vincent and the Grenadines won’t have to isolate.

It takes the list of countries that do not face travel restrictions into England to 80 nations.

The government also said it will update guidance weekly, meaning rules could change while people are away.

It said people should regularly check the advice. Previously, updates were provided every three weeks.

The guidance comes as infection rates begin to change across Europe.

On Friday, Norway announced that it was imposing a new 10-day quarantine on all travellers arriving from Spain after a spike in cases there at popular holiday resorts.

The latest data from the European Centre for Disease Prevention and Control (ECDC) showed coronavirus infections in Spain had risen to 30.9 per 100,000 inhabitants.

Portugal’s failure to make the exemption list will come as a huge blow.

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Tourism is a major industry in the country and is popular with British holidaymakers, with almost three million UK visitors a year.

Aviation data analysts Cirium said there were 2,333 flights due to leave the UK for Portugal before the end of August.

‘Huge uncertainty’

Paul Charles, chief executive of the PC Agency, said it was a badly timed move by the government.

“The scale of those due to go there before end of August is enormous. The decision today plants huge uncertainty in the minds of those who are booked who will be looking for refunds and changes and most won’t have a holiday. It’s going to cause uproar for operators and industry.”

He added: “They are not prepared to open Portugal when situation is declining, but cases in Spain are soaring, with rapid rises in their case numbers.”

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A showdown between the US government and the four big tech giants – Amazon, Apple, Facebook and Google – is set to be postponed.

The hearing was due to question the companies’ dominance in their fields of e-retail, smartphone software, social media and search.

It is expected to be delayed to allow the politicians to attend a service for the deceased civil rights activist and congressman John Lewis.

A new date has yet to be confirmed.

The development was first reported by Protocol and Reuters, and then confirmed by the FT.

Facebook’s Mark Zuckerberg, Google’s Sundar Pichai, Amazon’s Jeff Bezos and Apple’s Tim Cook were due to appear via video link before the antitrust panel of the House of Representatives Judiciary committee.

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The meeting would have been be the culmination of a year’s investigation into the companies.

The panel is set to release a report afterwards recommending whether legislation is needed to end the companies’ dominance of their respective sectors.

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UK retail sales continued their bounce back in June, as the reopening of shops released pent-up demand.

The amount of goods sold last month increased by 13.9%, said the Office for National Statistics (ONS).

The rise followed record falls in April and a partial recovery in May as the coronavirus pandemic led to widespread shop closures and hit spending.

Sales were boosted by food stores, which reached new highs for the pandemic period.

Compared to February, volumes of food sales were 5.3% higher while non-store retailing grew by 53.6%.

The ONS said the rebound brought overall retail sales back to a similar level to where they were pre-lockdown, but it added that there was a “mixed picture” in different store types.

In June, non-food stores, including department stores and clothes shops, partially recovered from strong falls during the lockdown but were still 15% lower than in February.

Non-essential shops in England were not allowed to reopen until 15 June, so they were only trading for half the month.

Jonathan Athow, ONS deputy national statistician, told the BBC that there had been “some really big changes under the surface” of the retail landscape since lockdown began.

“Food shops continue to do quite well, as we’re eating at home more,” he said.

“But the real growth has been in online sales. Online sales continue to go from strength to strength. We’ve had record online sales – £3 in every £10 of retail sales is now spent online and that’s a really big increase.”

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Mr Athow said some sectors were “struggling”.

“Some of that is due to the restrictions, which were only relaxed part-way through June in England. Clothing is down by about a third.

“And if you look at the High Street more generally, sales in the High Street, or physical shops, are also down by about a third.”

The proportion of online spending reduced to 31.8% in June when compared with the record 33.3% reported in May, but was a considerable increase from the 20% reported in February, said the ONS.

The ONS added that fuel sales remained at low levels, despite some recovery in May and June with the ease of travel restrictions.

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Hellen Stirling-Baker

One businesswoman who has taken advantage of the move to online shopping is Hellen Stirling-Baker of Small Stuff, a Sheffield-based independent retailer.

She sells sustainably made toys, gifts and homewares for young children.

“Driving my store online is how I have been able to survive,” she said.

“Offering face-to-face video calling for customers to recreate the in-store experience has been crucial and sales are picking up.

“I’ve also added new services such as local delivery by hand, which really boost engagement.”

Driving forces

Jeremy Thomson-Cook, chief economist at Equals Money, said the retail sector had seen a “V-shaped recovery”, echoing remarks by the Bank of England’s chief economist, Andy Haldane.

“The motto of the British consumer has long been ‘When the going gets tough, the tough go shopping’ and it seems like June encapsulated that well,” he added.

“In June, there were a number of driving forces at play which saw sales rise: pent-up demand following an easing of lockdown conditions, a lack of alternatives, good weather and the furlough scheme still running at full steam.

“All four of these driving forces are likely to dwindle in the coming months and that’s when we’ll see just how strong demand is.”

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Walt Disney Studios

Walt Disney has delayed and postponed the release of three major films, dealing a fresh blow to cinema operators struggling amid the pandemic.

The new Avatar and Star Wars films have been delayed a year, while Mulan has been removed from schedules completely.

Mulan, already delayed because of cinema closures, had been scheduled for release at the end of August.

A rise in virus cases in the US and the impact globally on film production forced the change.

It had been hoped that Mulan might spark a late-summer rebound in cinema-going. The Avatar sequel is now set to debut in theatres in December 2022, and the next Star Wars movie in December 2023.

“It’s become clear that nothing can be set in stone when it comes to how we release films during this global health crisis,” a Disney spokesman said. “Today that means pausing our release plans for Mulan as we assess how we can most effectively bring this film to audiences around the world.”

On Thursday, the AMC and Cineworld cinema chains pushed back the reopening date for their US outlets until at least mid-August, from the end of July.

The Mulan delay follows Warner Bros’ decision to postpone the August release of Christopher Nolan’s thriller Tenet. Cinema owners were pinning hopes on the two films to salvage part of the lucrative summer season.

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Avatar 2 would have been one of next year’s biggest films. It is the follow-up to James Cameron’s 2009 blockbuster, which is the second highest-grossing film of all time.

Other delayed Disney film is Ridley Scott’s historical thriller The Last Duel, which stars Ben Affleck and Matt Damon. That has been shifted from December of this year to October 2021.

While cinemas in England were allowed to reopen from 4 July – as long as social distancing guidelines were followed – the picture across North America is much more uncertain.

New York City and Los Angeles, the two biggest markets in the US, have no concrete plans for reopening cinemas.

In China, the world’s second largest movie market, cinemas started to reopen this week after being closed for six months due to social distancing measures.

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Face coverings are now compulsory for customers in shops in England, after new coronavirus rules came into force within 12 hours of the government issuing guidance on the change.

Coverings are mandatory in enclosed public spaces such as supermarkets, indoor shopping centres, transport hubs, banks and takeaways.

Police can hand out fines of up to £100 to those who do not comply.

But some retailers have insisted they will not enforce the rule.

Sainsbury’s and Costa Coffee said their staff will not challenge or enforce customers who enter their stores, while Asda said enforcement was the “responsibility of the relevant authorities”.

But Waitrose will have staff at the entrance reminding customers of the rule, and Tesco will be selling face coverings at shop entrances.

Greggs and McDonalds said takeaway customers need to wear masks.

Guidance issued by the government on Thursday for England states that staff in premises where face coverings are required are encouraged to take steps “to promote compliance with the law” and can refuse entry to people who do not have a valid exemption under the rules.

However, the government said it was the responsibility of individuals to wear one.

It is not compulsory for shop workers to wear face coverings but the government said it “strongly” recommended that employers consider their use where appropriate.

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Police will be able to “use force” to remove customers from shops if they do not wear face coverings, as well as prevent them from entering, according to the College of Policing.

But forces have said they will only be enforcing the rules, including issuing the £100 fines, as a last resort – and officers will not be patrolling premises.

There are exemptions to the new rules for children under 11, those with disabilities or certain health conditions, such as respiratory or cognitive impairments that make it difficult for them to wear a face covering.

Public Health England has warned parents not to buy coverings for babies and young children because of the risk of choking or suffocation.

Masks will not be mandatory in indoor venues that have other safety measures in place, including:

• Eat-in restaurants
• Pubs
• Hairdressers and salons
• Gyms and leisure centres
• Cinemas, concert halls and theatres
• Visitor attractions like museums

Can police make me cover my face?

The Police Federation, which represents front-line officers, says they can’t spend their time patrolling thousands upon thousands of outlets.

Shop staff and security guards can already detain shoplifters while waiting for the police to arrive and police leaders hope shop managers will refuse non-mask wearers entry – rather than turning to the police to solve the problem.

Met Commissioner Dame Cressida Dick has said that police in London would only enforce the wearing of coverings in shops “as a last resort” – if people not wearing a covering refused to leave a shop or became “aggressive”.

Read more here.

Retail and trade organisations have criticised the government over the length of time taken for the guidance to be published, after the measure was announced more than a week ago.

Meanwhile, union leaders voiced fears the rules could put workers’ safety at risk if there are abusive customers or people who refuse to wear a mask.

The British Retail Consortium called on customers to be “respectful” of the new rules, while UKHospitality chief executive Kate Nicholls said takeaway outlets had been left with “a very short time to properly brief staff, prepare signage and take steps to encourage compliance”.

According to the government, face coverings should cover the mouth and nose and can be as simple as a scarf or bandana that securely fits around the side of the face without having to be held in place.

The requirement to wear face coverings at transport hubs – railway and bus stations, airports and maritime ports – only applies for those areas which are fully indoors and enclosed.

You are allowed to remove a face covering in certain situations, for example to prove identification in banks or when buying age restricted products.

Face coverings have been compulsory in shops in Scotland since 10 July. Shoppers are not currently required to wear them in Wales or Northern Ireland, although NI will wait until 20 August before deciding whether to make them compulsory.

Coverings are already compulsory on public transport in England and Scotland, as well as most buses, trains and ferries in Northern Ireland. They will be mandatory on public transport in Wales from 27 July.

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