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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/oct/15/thomas-cook-mps-parliamentary-grilling-collapse-bank-of-england-imf-pound-business-live
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| MPs blast Thomas Cook bosses' rewards for failures, and demand bonus clawbacks – business live | MPs blast Thomas Cook bosses' rewards for failures, and demand bonus clawbacks – business live |
| (32 minutes later) | |
| The FTSE 250 index has closed at its highest level in a year, as traders cling onto hopes of a Brexit breakthrough. | |
| Energy, consumer goods and services companies, banks and utilities all led the rally. | |
| The blue-chip FTSE 100 index ended the day flat. Banks and housebuilders held their gains, but multinational companies fell - due to the strong pound. | |
| Hold that optimism! | |
| BREAKING: Taoiseach says gap is "still quite wide," particularly on the issue of customs. | |
| The Guardian’s reporting that the UK has made a key concession, that in principle that there will be a customs border down the Irish Sea after Brexit. | The Guardian’s reporting that the UK has made a key concession, that in principle that there will be a customs border down the Irish Sea after Brexit. |
| Boris Johnson 'on brink of Brexit deal' after border concessions | Boris Johnson 'on brink of Brexit deal' after border concessions |
| EU officials are now downplaying talk of a Brexit breakthrough...... | EU officials are now downplaying talk of a Brexit breakthrough...... |
| BREXIT: SENIOR EU OFFICIAL SAYS REPORT OF IMMINENT BREXIT DEAL "WAY TOO PREMATURE", SENIOR EU DIPLOMAT CALLS IT "SPIN" | BREXIT: SENIOR EU OFFICIAL SAYS REPORT OF IMMINENT BREXIT DEAL "WAY TOO PREMATURE", SENIOR EU DIPLOMAT CALLS IT "SPIN" |
| Shares in banks and house-builders are rising very sharply too in late trading. | Shares in banks and house-builders are rising very sharply too in late trading. |
| Bloomberg’s claim that negotiators are ‘closing in’ on a draft deal has sent Royal Bank of Scotland and Lloyds Banking Group up by at least 6.5%. | Bloomberg’s claim that negotiators are ‘closing in’ on a draft deal has sent Royal Bank of Scotland and Lloyds Banking Group up by at least 6.5%. |
| Construction firms are also benefitting, with Barratt Development up 7% and Persimmon gaining 5.9%. | Construction firms are also benefitting, with Barratt Development up 7% and Persimmon gaining 5.9%. |
| This sudden burst of Brexit optimism has also lifting shares in UK-focused companies. | This sudden burst of Brexit optimism has also lifting shares in UK-focused companies. |
| The FTSE 250 index has surged by 1.8%, to a one-year high. | The FTSE 250 index has surged by 1.8%, to a one-year high. |
| Back in the markets, the pound has suddenly jumped to its highest level in nearly four months. | Back in the markets, the pound has suddenly jumped to its highest level in nearly four months. |
| Sterling has gained one and a half cents to $1.275 for the first time since 25 June, after Bloomberg reported that the UK and the EU were close to a last-minute draft Brexit deal. | Sterling has gained one and a half cents to $1.275 for the first time since 25 June, after Bloomberg reported that the UK and the EU were close to a last-minute draft Brexit deal. |
| Sterling has spiked on a headline that EU and UK negotiators are closing in on a draft Brexit deal pic.twitter.com/JzHqwdAa0m | Sterling has spiked on a headline that EU and UK negotiators are closing in on a draft Brexit deal pic.twitter.com/JzHqwdAa0m |
| Bloomberg says: | Bloomberg says: |
| U.K. and European Union negotiators in Brussels are closing in on a draft Brexit deal with optimism that there will be a breakthrough before the end of Tuesday, according to two EU officials, Bloomberg News reports. | U.K. and European Union negotiators in Brussels are closing in on a draft Brexit deal with optimism that there will be a breakthrough before the end of Tuesday, according to two EU officials, Bloomberg News reports. |
| Any draft legal text will hinge on whether Prime Minister Boris Johnson believes he has the support of the U.K. Parliament, with the backing of the Northern Irish Democratic Unionist Party crucial. | Any draft legal text will hinge on whether Prime Minister Boris Johnson believes he has the support of the U.K. Parliament, with the backing of the Northern Irish Democratic Unionist Party crucial. |
| This has lifted the pound by around one and a half cents today, a substantial move. It means it’s gained five cents in less than a week. | This has lifted the pound by around one and a half cents today, a substantial move. It means it’s gained five cents in less than a week. |
| My colleague Andy Sparrow is tracking all the Brexit action, as we head towards a crunch EU summit on Thursday and Friday; | My colleague Andy Sparrow is tracking all the Brexit action, as we head towards a crunch EU summit on Thursday and Friday; |
| Brexit: Rees-Mogg tells MPs he cannot confirm if Saturday sitting going ahead as EU talks still unresolved - live news | Brexit: Rees-Mogg tells MPs he cannot confirm if Saturday sitting going ahead as EU talks still unresolved - live news |
| Q: Thomas Cook’s CEO spoke to five government ministers in the run-up to its collapse, but none of them were from the British government. Shouldn’t you or Grant Shapps have met the company? | Q: Thomas Cook’s CEO spoke to five government ministers in the run-up to its collapse, but none of them were from the British government. Shouldn’t you or Grant Shapps have met the company? |
| Andrea Leadsom says that transport secretary Shapps did speak to the company in September. He also had to build an airline ‘from the ground up’ to bring holidaymakers home, she adds. | Andrea Leadsom says that transport secretary Shapps did speak to the company in September. He also had to build an airline ‘from the ground up’ to bring holidaymakers home, she adds. |
| Leadsom adds that she’s “very proud” of the government’s operation, despite the committee’s attempts to find problems in it. | Leadsom adds that she’s “very proud” of the government’s operation, despite the committee’s attempts to find problems in it. |
| Alex Chisholm then suggests that foreign ministers were scrambling to catch up at the last minute, unlike the well-prepared UK; I’m not sure Reeves is 100% convinced by that one! | Alex Chisholm then suggests that foreign ministers were scrambling to catch up at the last minute, unlike the well-prepared UK; I’m not sure Reeves is 100% convinced by that one! |
| Q: Did any officials from the business department meet with Thomas Cook in the run-up to its collapse? | Q: Did any officials from the business department meet with Thomas Cook in the run-up to its collapse? |
| Leadsom says there was “significant engagement”, yes, looking at what needed to be done in the event of its failure. | Leadsom says there was “significant engagement”, yes, looking at what needed to be done in the event of its failure. |
| She then adds that the collapse of Thomas Cook was a “truly devastating experience for all those people who lost their jobs, and very worrying for those who were on holiday.” | She then adds that the collapse of Thomas Cook was a “truly devastating experience for all those people who lost their jobs, and very worrying for those who were on holiday.” |
| I was in frequent contact with Grant Shapps during the company’s last weekend, Leadsom adds, and also in contact with the insolvency service, and asking banks to show forbearance to Thomas Cook staff. | I was in frequent contact with Grant Shapps during the company’s last weekend, Leadsom adds, and also in contact with the insolvency service, and asking banks to show forbearance to Thomas Cook staff. |
| Q: Were the plans submitted by Thomas Cook to government on 17th September (a week before it collapsed) compliant with state aid rules? | Q: Were the plans submitted by Thomas Cook to government on 17th September (a week before it collapsed) compliant with state aid rules? |
| All government decisions are compliant with state aid rules, replies Leadsom smoothly. | All government decisions are compliant with state aid rules, replies Leadsom smoothly. |
| Reeves won’t be put off that easily. | Reeves won’t be put off that easily. |
| Q: Were the plans submitted by Thomas Cook compliant? | Q: Were the plans submitted by Thomas Cook compliant? |
| Leadsom says she isn’t sure. | Leadsom says she isn’t sure. |
| Permanent secretary Alex Chisholm says the issue didn’t arise, as the government didn’t believe the proposal was feasible in the first place. | Permanent secretary Alex Chisholm says the issue didn’t arise, as the government didn’t believe the proposal was feasible in the first place. |
| Andrea Leadsom’s top civil servant, permanent secretary Alex Chisholm, takes the controls. | Andrea Leadsom’s top civil servant, permanent secretary Alex Chisholm, takes the controls. |
| He tells Rachel Reeves that contingency plans were drawn up across Whitehall with a co-ordinated plan, in case Thomas Cook collapsed. | He tells Rachel Reeves that contingency plans were drawn up across Whitehall with a co-ordinated plan, in case Thomas Cook collapsed. |
| Q: But was there any planning to avoid the collapse of the company?! | Q: But was there any planning to avoid the collapse of the company?! |
| Chisholm says there were various meeting about Thomas Cook’s funding needs, which changed substantially over the months. | Chisholm says there were various meeting about Thomas Cook’s funding needs, which changed substantially over the months. |
| There were talks with the government about what they could do to help. | There were talks with the government about what they could do to help. |
| The government decided not to intervene with a financial bailout. It felt it was not a situation that was viable and sustainable.... | The government decided not to intervene with a financial bailout. It felt it was not a situation that was viable and sustainable.... |
| Q: Who made that decision? | Q: Who made that decision? |
| “The lead cabinet minister responsible”, Chisholm replies, “in consultation with colleagues”. | “The lead cabinet minister responsible”, Chisholm replies, “in consultation with colleagues”. |
| [That appears to put the blame on Grant Shapps.....] | [That appears to put the blame on Grant Shapps.....] |
| Q: Why would the transport secretary make that decision, rather than the business secretary? | Q: Why would the transport secretary make that decision, rather than the business secretary? |
| Leadsom intervenes, and attempts to bat the blame over to the Treasury! | Leadsom intervenes, and attempts to bat the blame over to the Treasury! |
| The Treasury took a very close look at the situation, the business secretary says, and concluded it would be “throwing good money after bad”. It wouldn’t be possible to restore the company to health, she insists. | The Treasury took a very close look at the situation, the business secretary says, and concluded it would be “throwing good money after bad”. It wouldn’t be possible to restore the company to health, she insists. |
| With excellent timing, Business Secretary Andrea Leadsom is in front of the BEIS committee, to discuss her department’s work. | With excellent timing, Business Secretary Andrea Leadsom is in front of the BEIS committee, to discuss her department’s work. |
| Thomas Cook isn’t officially on the agenda, but chair Rachel Reeves makes it the first order of business! | Thomas Cook isn’t officially on the agenda, but chair Rachel Reeves makes it the first order of business! |
| Q: When were you first made aware that Thomas Cook was seeking government help? | Q: When were you first made aware that Thomas Cook was seeking government help? |
| Leadsom says he was first aware of its significant problems “probably a month before Thomas Cook finally went into liquidation” [so mid-August?]. | Leadsom says he was first aware of its significant problems “probably a month before Thomas Cook finally went into liquidation” [so mid-August?]. |
| At that time, she was also being briefed on a huge number of other issues, including other companies in trouble and various policy briefs. | At that time, she was also being briefed on a huge number of other issues, including other companies in trouble and various policy briefs. |
| [Leadsom was appointed on 24 July 2019, so this would be early in her tenure]. | [Leadsom was appointed on 24 July 2019, so this would be early in her tenure]. |
| Q: Who told you? | Q: Who told you? |
| Leadsom can’t quite remember, but suspects it was a policy update in her ministerial box. | Leadsom can’t quite remember, but suspects it was a policy update in her ministerial box. |
| Q: What discussions did you have with transport secretary Grant Shapps? | Q: What discussions did you have with transport secretary Grant Shapps? |
| Leadsom says she sees Shapps most days at various committee meetings, so they’d had a number of conversations. | Leadsom says she sees Shapps most days at various committee meetings, so they’d had a number of conversations. |
| The week before Thomas Cook went into liquidation, there was a cabinet office meeting on the contingency plans, she adds. | The week before Thomas Cook went into liquidation, there was a cabinet office meeting on the contingency plans, she adds. |
| Q: Peter Fankhauser told us that he was told to only deal with the Department for Transport. Why? | Q: Peter Fankhauser told us that he was told to only deal with the Department for Transport. Why? |
| Leadsom says there is a ‘lead department’ for all major companies. The DfT is responsible for Thomas Cook, while BEIS officials were working closely with it. | Leadsom says there is a ‘lead department’ for all major companies. The DfT is responsible for Thomas Cook, while BEIS officials were working closely with it. |
| The Press Association have spoken to some of Thomas Cook’s former staff, and it’s fair to say they’re not impressed by this morning’s performance. | The Press Association have spoken to some of Thomas Cook’s former staff, and it’s fair to say they’re not impressed by this morning’s performance. |
| George, who spent four-and-a-half years as cabin crew for Thomas Cook, said CEO Peter Fankhauser, chairman Frank Meysman sounded “deluded”. | George, who spent four-and-a-half years as cabin crew for Thomas Cook, said CEO Peter Fankhauser, chairman Frank Meysman sounded “deluded”. |
| “We were consistently told that everything was okay - ‘everything was going to be fine, it’s all going through, everything’s going to be fine’.” | “We were consistently told that everything was okay - ‘everything was going to be fine, it’s all going through, everything’s going to be fine’.” |
| Lynn McKeller, who spent 31 years as Thomas Cook cabin crew, was very disappointed that the company didn’t seek UK government help. | Lynn McKeller, who spent 31 years as Thomas Cook cabin crew, was very disappointed that the company didn’t seek UK government help. |
| “The fact Peter Fankhauser didn’t do anything to contact any government minister, that’s hard. | “The fact Peter Fankhauser didn’t do anything to contact any government minister, that’s hard. |
| Elaine Coxhall, 48, from East Grinstead, West Sussex, who worked for three years as air crew from Gatwick, said: | Elaine Coxhall, 48, from East Grinstead, West Sussex, who worked for three years as air crew from Gatwick, said: |
| “[Thomas Cook executives] should never be on the board of any company again.” | “[Thomas Cook executives] should never be on the board of any company again.” |
| “Even on the Saturday before it went under we got an email saying ‘It’s going to be fine, business as usual, there’s going to be a little bit of noise in the media but it’s going to be fine’.” | “Even on the Saturday before it went under we got an email saying ‘It’s going to be fine, business as usual, there’s going to be a little bit of noise in the media but it’s going to be fine’.” |
| Speaking of Brexit... the pound has been jittery today after Britain was given a midnight deadline to make new concessions to get a deal done. | Speaking of Brexit... the pound has been jittery today after Britain was given a midnight deadline to make new concessions to get a deal done. |
| Our Brussels bureau chief Daniel Boffey explains: | Our Brussels bureau chief Daniel Boffey explains: |
| Michel Barnier has set Boris Johnson a midnight deadline to concede to EU demands and agree to a customs border in the Irish Sea or be left with nothing to take to the Commons. | Michel Barnier has set Boris Johnson a midnight deadline to concede to EU demands and agree to a customs border in the Irish Sea or be left with nothing to take to the Commons. |
| According to sources, the EU’s chief negotiator told ministers that, as it stood, there was little prospect of a deal being signed off by leaders at a summit on Thursday, before a special sitting of the UK parliament on Saturday. | According to sources, the EU’s chief negotiator told ministers that, as it stood, there was little prospect of a deal being signed off by leaders at a summit on Thursday, before a special sitting of the UK parliament on Saturday. |
| Legal text had yet to be tabled by the British negotiators, Barnier told ministers in Luxembourg. | Legal text had yet to be tabled by the British negotiators, Barnier told ministers in Luxembourg. |
| Sterling hit a five-month high against the euro this morning, at €1.151, on hopes that a no-deal can be avoided. | Sterling hit a five-month high against the euro this morning, at €1.151, on hopes that a no-deal can be avoided. |
| Barnier sets Johnson a midnight deadline for Brexit concessions | Barnier sets Johnson a midnight deadline for Brexit concessions |