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1. Bank of England: US tech-firm valuations stretched to 'dot-com bubble' levels
The United Kingdom’s national bank, the Bank of England, has warned of a “sharp correction” to tech share prices and growing fears of an artificial intelligence bubble, according to its Dec. 2 Financial Stability Report.
The document stated that “many risky asset valuations remain materially stretched, particularly for technology companies focused on Artificial Intelligence. Equity valuations in the U.S. are close to the most stretched they have been since the dot-com bubble, and in the U.K. since the global financial crisis (GFC). This heightens the risk of a sharp correction.”
The Bank of England also announced in the report that it will lower the amount of capital U.K. banks need to hold in a bid to boost lending and spur economic growth, according to the BBC. This would be the first reduction since 2008.
2. Accor promotes Lamouche to CEO, Europe, North Africa
Karelle Lamouche has been promoted to Accor's CEO of premium, midscale and economy for Europe and North Africa from her previous position of from her position of chief operating officer in the same geographies. She started in that previous role in May, but is a 27-year veteran at the French hotel giant.
She also has served as chief commercial officer, as well as being a general manager.
She takes over from Patrick Mendes, who in June became special advisor to the Group Chairman and CEO Sébastien Bazin. Mendes has been at Accor for 21 years.
The PM&E division contains such brands as Greet, Handwritten Collection, Ibis, Mercure, Mövenpick, Novotel, Pullman, Swissôtel and Tribe.
3. Head of UK’s Office for Budget Responsibility quits following budget leak
The head of the U.K.’s Office for Budget Responsibility, the government’s independent financial watchdog, has resigned following a leak of Nov. 26’s budget before the chancellor of the exchequer, Rachel Reeves, presented it to Parliament.
Richard Hughes said in a resignation letter that the “inadvertent early dissemination of our economic and fiscal outlook on Nov. 26 was a technical but serious error.”
On Dec. 2, members of the government’s Budget Responsibility Committee were summoned to the Treasury Committee to answer questions and concerns over the leak.
Reeves is facing questions that she hinted personal income-tax rates might be increased in the budget and that there existed a hole in government finances so that when the budget was announced it appeared as if she waved a magic wand, according to Sky News.
Darren Jones, chief secretary to the Prime Minister, chancellor of the Duchy of Lancaster and minister for intergovernmental relations, said Reeves had not overestimated the situation, adding she had been “right all the way through that we needed to raise more money than was available ... through the OBR forecast.”
4. CDL acquires London Holiday Inn for £280 million
Copthorne Hotel Holdings, a subsidiary of Singapore-based City Developments Ltd., has acquired the 706-room Holiday Inn London-Kensington High Street for £280 million ($370 million) or £396,601 ($525,616) per key, the company announced.
CoStar data showed the seller to be London-based Cola Holdings, and the hotel is adjacent to one of CDL’s existing hotels, the 833-room Copthorne Tara Hotel London Kensington.
CDL added in a statement the freehold Holiday Inn measures 6,356 square meters and that it “expected [the hotel] to generate over 6% running yield.” The acquisition is CDL’s seventh hotel in London, all of which are west of the center of the city.
5. Trusted-traveler programs gain surge in use
Membership in trusted-traveler programs such as TSA PreCheck and Global Entry have seen record usage as travelers require faster, smoother airport passage and less hassle in their journeys, according to the latest Global Rescue Traveler Sentiment & Safety Survey report.
In total, 52% of those it questioned said they were already signed up to such initiatives.
“U.S. travelers are driving much of that growth: 64% say they are enrolled, compared to just 20% of non-US respondents,” the report said.
Other findings showed that women (57%) have signed up to such programs at a higher rate than men (52%). The report added that overall, “among those enrolled, saving time at the airport (45%) was the leading motivator, followed by reducing hassle and restrictions (20%) and enjoying less stress and greater convenience (30%)."
Twenty-one percent said they had no plans to join such programs.