FirstFT: CBI to be renamed as part of reform, says new boss

The crisis-stricken CBI will be renamed as part of efforts to demonstrate that it has reformed its toxic workplace culture after weeks of allegations of rape, sexual harassment and bullying, the new boss of the UK business lobby group has said.

Rain Newton-Smith said the rebranding would be necessary as part of a promised “root and branch” reform of the organisation that has seen more than 50 leading members cut or suspend ties, raising serious questions over its financial future.

“Personally, over time, I’m sure we’re going to see a new name for the CBI, but that’s just the wrapper that goes on the outside. What matters is what we do, what we deliver and our purpose,” she told the Financial Times.

Speaking at the end of her first day in the new job, Newton-Smith did not set out a clear vision for the CBI’s future but said she was consulting leading members over how a “refocused” organisation might look. Asked whether this meant a smaller CBI, Newton-Smith said: “It’s day one, but I think that could well be where we end up.”

Here’s what else I’ll be watching today:

• Results: Amazon, AstraZeneca, Barclays, Carlsberg, Deutsche Bank, Intel, Merck, Sainsbury’s and Unilever are among those reporting. See our full list in the Week Ahead newsletter.

• Economic data: Flash gross domestic product figures are expected to show the US economy expanded modestly in the first quarter. Ireland and Sweden also have flash GDP numbers, while the UK releases fourth-quarter trade data.

Five more top stories

1. Meta reported a return to sales growth after three quarters of declines, sending its shares up 12 per cent and paving the way for it to plough ahead with a big bet on artificial intelligence. Revenue in the first quarter was up 3 per cent from a year ago to $28.6bn, beating analysts’ expectations.

2. Exclusive: Johnson & Johnson’s Kenvue has been hit by claims that its talcum powder can cause cancer, days before the spin-off’s initial public offering. J&J had attempted to shield Kenvue from most of the talc claims already filed against the group. Read the full story.

3. Distressed US companies are increasingly resorting to debt restructurings to avoid expensive bankruptcy proceedings, but many borrowers ultimately end up in court anyway. Here’s why the deals often amount to little more than “can-kicking” exercises.

4. Xi Jinping has urged Volodymyr Zelenskyy to negotiate with Moscow in the first conversation between the Chinese and Ukrainian leaders since Russia launched its full-scale invasion. Read more about the hour-long phone call in which Xi promised to send a special envoy to seek a “political settlement” of the war.

5. Almost 40 per cent of 35- to 44-year-olds in the UK have resorted to borrowing to make ends meet in the cost of living crisis, more than double the proportion of those aged over 55. A study by the Resolution Foundation published today also found that those below 35 were forced to turn to family or friends for financial help.

The Big Read

LVMH became Europe’s first $500bn company this week and the only one to be ranked among the 10 biggest global companies. Its ascent is a testament to the startling rise and resilience of the luxury sector, which has thrived through financial crises, a pandemic, geopolitical ructions and spiralling inflation.

We’re also reading . . . 

Graphic of the day

As strengthened US and UN sanctions were bearing down on North Korea in the summer of 2017, an employee at a Singaporean subsidiary of a UK-based tobacco giant was planning how to conceal continued shipments of cigarettes to the North Korean embassy. Here’s how British American Tobacco violated sanctions by supplying cigarettes to the pariah state.

Take a break from the news

King Charles III has often been described as stiff and awkward-looking. But this has obscured the fact that he is an exceptionally good dresser. As a wiry, fit young man in his polo kit, Charles was, whisper it, even a little bit hot, writes Robert Armstrong.

Additional contributions by Camilla Bell-Davies and Emily Goldberg