Premier Inn Owner Whitbread Cuts Costs, Hotels, Jobs to Boost Investor Buybacks

Morning, I'm Louise Moon from Bloomberg UK's breaking news team, bringing you up to speed on today's top business stories.

Premier Inn owner Whitbread is embarking on an overhaul sparked by activist pressure. Essentially, it's cutting back on spending and selling hotels to reward shareholders.

The FTSE 100 hospitality firm laid out a five-year plan to generate £2 billion for shareholders by 2031. It'll "recycle" (sell and lease back) £1.5 billion of its freehold properties, while also converting its branded restaurants, like Beefeater, with hotel-based food and drink offerings.

It all comes after American activist investor Corvex Management took a stake at the end of last year and pushed for a rethink.

In a loss of staff, the plan could cut 3,800 jobs. In a win for investors, that will cut capital investment by over £1 billion and generate the free cash flow for returns. Buybacks will be paused in 2027. Shares fell 12%.

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

What We're Watching

Shoppers in emerging market countries snapping up laundry detergents and Dove soap helped Unilever's sales and volumes grow more than expected, particularly as it contends with low consumer confidence. Shares rose.

Glencore's oil and gas team has scored big, making bumper profits from war-induced volatility. That puts the miner's trading unit on track for one of its best ever full-year trading results. Last year it made $2.9 billion and this year it expects over $3.5 billion. Shares ticked higher.

Asia-focused Standard Chartered hit record profits for the first three months, surging past estimates on the back of $18 billion of net new money into its wealth management unit. That offset precautionary charges linked to the Middle East. Shares rose in London and Hong Kong.

In deals land, blue-chip energy firm DCC rejected a buyout offer from a consortium including private equity house KKR, saying it "fundamentally undervalues" the company. Shares had surged 16% on news of the offer, but fell this morning.

Plus, it's BOE day. Andrew Bailey and other rate-setters are widely expected to keep interest rates on hold. Policymakers globally are playing for time as the standoff in the Middle East continues. More from my colleague Morwenna below.

Global Catch-Up

• Oil hits a wartime high on report the US is eyeing military options for Iran.
• India's homegrown, high-speed trading unicorn takes the global stage.
• How Kosovo's tech boom is saving its young people from unemployment.

Markets Today: Decision Day

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

Against a backdrop of soaring oil prices, which have overnight risen to a war-time high, eyes are lasering in on what central banks will do about it. For the Bank of England, the least interesting thing about its meeting today will be its actual interest rate decision.

The BOE is widely expected to leave the benchmark rate unchanged at 3.75%, with traders pricing in just a 10% chance of a hike today. But expectations for monetary policy further ahead are rapidly shifting, with traders now more than pricing in three interest rate hikes in the second half of the year. The first is currently seen as likely in June, followed by another in July or September and a third by November.

Still, that may be unrealistic. The BOE will have to balance the risk of a prolonged energy price shock from the Iran war against a subdued domestic economic picture, and Bloomberg's survey suggests there will be at least some dissent form policymakers, with potential calls for a hike. An 8-1 vote is the most popular expectation.

The MPC's minutes and Andrew Bailey's press conference will give clues on how close to action they are (in March's meeting the wording was that the BOE "stands ready to act"), and how much uncertainty they want to emphasize in their scenarios. That will determine whether current market pricing lasts.

-- Morwenna Coniam

What's Next

NatWest rounds off a week of banking earnings tomorrow with a first-quarter update. Peers Barclays, Lloyds and StanChart have all beat expectations, though they haven’t performed as strongly as Wall Street peers.

Plus, Nationwide’s April house price index, which is expected to come in relatively flat compared to the previous month.

Three of the Best: Bank Holiday Exhibitions

Hi, it’s Sarah from Pursuits. Happy (almost) bank holiday weekend. If you’re staying put, and revel in exploring the culture London has on offer, then it’s a great time to check out museum exhibitions. Here are my top three right now:

Tracey Emin: A Second Life
London’s largest modern art museum hosts Emin’s biggest retrospective, with more than 90 pieces spanning the British multihyphenate’s 40-year career. Of note is My Bed, her Turner Prize-nominated disheveled bed sculpture, as well as neon and new works that reflect on her experience with bladder cancer. Tate Modern.

The Music is Black: A British Story
This exhibition digs into the cultural force that is Black British music, tracking its influence both on the UK and the wider world. The immersive show, with over 120 tracks, spans 125 years of music history and runs the gamut of genres from jazz to rock and grime. V&A East.

Schiaparelli: Fashion Becomes Art
Across town in West London, the original V&A has been known for blockbuster fashion exhibitions. It’s now showing the first UK exhibition dedicated to the work of Italian visionary Elsa Schiaparelli. There are more than 200 objects on display, including the surrealist “skeleton dress” she created with Salvador Dalí. V&A South Ken.