European markets finished the Thursday trading session on a mixed note as the Brexit deal debate in the United Kingdom’s Parliament enters its second day, with still no signs that Prime Minister Theresa May will be able to secure MPs’ approval for her withdrawal agreement. Earlier today, Labour party leader Jeremy Corbyn called for a general election to be held "at the earliest opportunity" in order to "break the deadlock" caused by Brexit.
Meanwhile, Jaguar Land Rover announced today it will cut 4,500, most of which will be office jobs in the UK, while Ford unveiled a strategy to lower structural costs and improve profitability, which may impact thousands of workers in Europe. Also today, the European Commission announced an in-depth probe into Nike’s tax rulings which were granted by the Netherlands.
The FTSE 100 finished the session 0.33% higher, with Fresnillo the best performer. The DAX added 0.08% to remain in the positive territory, buoyed by Fresenius healthcare company. Meanwhile, the CAC 40 was 0.39% lower at the closing bell, weighed down by Kering.
Honda’s Brexit Effect
Honda will suspend production at its United Kingdom site for six days as a result of Brexit logistics and potential border disruption, according to various media reports and a statement by the company released on Thursday.
The Japanese carmaker announced the move to ensure that it "is well placed to adjust to all possible outcomes" and "to facilitate production recovery activity following any delays at borders on parts." The company said that the aim of the measures was to reduce disruption to production operations at its factory in Swindon in southwest England.
Jaguar Land Rover cutting jobs
Jaguar Land Rover Automotive PLC (JLR) is planning to reduce its workforce of 40,000 in the United Kingdom by up to 5,000 workers, the BBC reported.
The reduction is a part of a £2.5 billion cost-cutting plan which aims to minimize the effects of a downturn in Chinese sales and a decline in diesel sales. The move also aims to provide security amid concerns the UK may lose its competitiveness after Brexit. Reportedly, it will mostly affect employees in management, marketing and administration, although some jobs in production may be affected as well.
JLR previously suspended its car production in Solihull, UK for two weeks in October last year "as a result of Brexit uncertainty."
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