news--2020-03-04--Coronavirus: Interest rate cuts offer little to combat COVID-19 threats

Following the US Federal Reserve 's shock interest rate cut on Tuesday - its first emergency rate cut since the global financial crisis in 2008 - all eyes are on whether other central banks will follow suit .
The Bank of Canada did so on Wednesday afternoon by cutting its main policy rate from 1.75 % to 1.25 % .
And the Reserve Bank of Australia had already cut interest rates to an all-time low of 0.5 % before the Fed moved .
Australia 's economy has already been showing signs of slowing down and , even before the coronavirus @ @ @ @ @ @ @ Lucky Country is facing its first recession in 29 years .
Bank Negara Malaysia , the Malaysian central bank , had also moved before the Fed did on Tuesday .
Yet other central banks , including the Bank of England , face a dilemma as they decide how to react to the coronavirus outbreak .
The first is that , unlike with the financial crisis , it is not immediately obvious that the situation will be alleviated by an interest rate cut .
A cut in interest rates is not likely , on @ @ @ @ @ @ @ anxious about contracting coronavirus to visit a shop or restaurant , go to the theatre or the cinema or to get on to an aeroplane .
Secondly , for many central banks , cutting interest rates further is a non-starter even if they did think it would make a difference .
For example , the eurozone already has negative interest rates , while any further moves to reduce the cost of borrowing would further enrage German savers who already loathe the European Central Bank and who yearn for the reintroduction of the Deutschemark @ @ @ @ @ @ @ Denmark and Switzerland , also have negative interest rates while Sweden has only just moved away from negative interest rates for the first time in five years .
Other central banks , even though they may not have negative interest rates , are similarly constrained .
A good example here is the Bank of England .
While the US Federal Reserve has faced heavy criticism from President Trump for having interest rates too high , it can be argued that , in having raised interest rates nine times between December 2015 and December @ @ @ @ @ @ @ plenty of ammunition to lower them subsequently , which it has four times .
By contrast , the Bank has raised its main policy rate just twice since its emergency cut in 2016 , taking it from 0.25 % to 0.5 % in October 2017 and from 0.5 % to 0.75 % in July 2018 .
It has very little scope to cut rates further .
Thirdly , there are plenty of reasons why cutting interest rates to ultra-low levels will have a malign effect .
For a start , ultra-low interest rates @ @ @ @ @ @ @ they lead to so-called 'margin compression ' - narrowing the spread between what banks pay savers and charge borrowers .
This is a factor that has crushed returns at European banks for some time and reduces the incentives for banks to lend money .
It is why , when the Fed cut rates on Tuesday and stock markets briefly rallied before falling back , shares of the major US lenders - JP Morgan Chase , Citi and Bank of America - fell from the get-go .
Another malign consequence of ultra-low interest rates @ @ @ @ @ @ @ pension schemes .
This is because pension liabilities are calculated according to bond yields .
In the UK , for example , scheme liabilities are linked to the yield on UK government bonds ( gilts ) .
Those yields fall as the price rises - which , thanks to interest rate cuts and the Bank of England 's policy of asset purchases ( known in the jargon as Quantitative Easing or QE ) , they have been .
For example , at one point on Wednesday , the yield on 10-year gilts fell @ @ @ @ @ @ @ .
And , of course , ultra-low interest rates also hurt savers .
Many of these are older people living on fixed incomes and who rely heavily on the interest from their cash savings .
Ultra-low interest rates eat into the spending power of such people - the precise opposite of what the Bank would want to achieve with a further rate cut .
By contrast , there is no guarantee that a cut in interest rates by the Bank of England would necessarily help mortgage borrowers , as the price of the @ @ @ @ @ @ @ an all-time low as a result of competition among lenders .
For example , Nationwide Building Society is offering a 10-year fixed rate mortgage with a fixed rate of 2.34 % .
So it is hard to see how , even if the Bank were to cut its main policy rate from its already very low level , the cost of home loans could fall much further .
All of which explains why , apart from the Bank of Canada , none of the world 's central banks have been too hasty in @ @ @ @ @ @ @ .
That is not to say that further easing is not going to happen .
The European Central Bank , for example , may be worried about the euro appreciating too strongly against the US dollar following the Fed 's rate cut - rendering exports from eurozone economies less competitive .
This may also be a concern to the Swiss National Bank which , whenever the Swiss franc has appreciated on markets , has intervened on the currency markets to try and reduce its value .
Liz Martins , senior economist at HSBC @ @ @ @ @ @ @ England to cut interest rates on or before its next scheduled rate-setting meeting on 26 March .
She told Sky News on Wednesday : `` I think the Bank will want to wait and take stock , see whether the spread of the virus stabilises , see how long it lasts and measure the impact on supply and demand in the economy . ''
Ms Martins said she thought a wider package of measures , such as a relaunch of the Term Funding Scheme - which enabled banks and building societies to borrow @ @ @ @ @ @ @ main policy rate - could also be introduced , as well as an easing of the buffer that banks are encouraged to build up in good times .
That thesis - that the Bank is in no rush to act in haste - appeared to receive endorsement from Andew Bailey , the incoming governor , as he gave evidence to the treasury select committee .
He told MPs : `` What we need is frankly more evidence than we have at the moment as to exactly how this is feeding through . ''
@ @ @ @ @ @ @ this : if you are a company waiting for parts whose delivery has been delayed from China , or a retailer waiting for stock from Italy , an interest rate cut will not of itself be much help to you .
For smaller companies , in particular , the bigger challenge under such circumstances will relate to your cash flow .
It is why the Bank 's outgoing governor , Mark Carney , told MPs this week that the Bank 's financial policy committee was looking at how to address possible constraints on @ @ @ @ @ @ @ might emerge as a result of coronavirus .
That sounded an awful lot like a reintroduction of the Term Funding Scheme .
And it may well be that fiscal , not monetary , policy will ultimately be the way to breathe life back into the economy .
Rishi Sunak , the new Chancellor , is already expected in next week 's Budget to deliver on a promise in the election-winning Conservative manifesto to raise the threshold at which national insurance becomes payable .
But it is why some economists are increasingly talking about @ @ @ @ @ @ @ stamp duty on housing transactions , or even to VAT , as a way of keeping the economy ticking over .

Sky's Ian King explains why central banks, including the Bank of England, may hesitate to follow the Fed's lead in cutting rates.
Following the US Federal Reserve's shock interest rate cut on Tuesday - its first emergency rate cut since the global financial crisis in 2008 - all eyes are on whether other central banks will follow suit.
The Bank of Canada did so on Wednesday afternoon by cutting its main policy rate from 1.75% to 1.25%.
And the Reserve Bank of Australia had already cut interest rates to an all-time low of 0.5% before the Fed moved.
Australia's economy has already been showing signs of slowing down and, even before the coronavirus outbreak, fears were mounting that the Lucky Country is facing its first recession in 29 years.
Bank Negara Malaysia, the Malaysian central bank, had also moved before the Fed did on Tuesday.
Yet other central banks, including the Bank of England, face a dilemma as they decide how to react to the coronavirus outbreak.
The first is that, unlike with the financial crisis, it is not immediately obvious that the situation will be alleviated by an interest rate cut.
A cut in interest rates is not likely, on its own, to persuade a consumer anxious about contracting coronavirus to visit a shop or restaurant, go to the theatre or the cinema or to get on to an aeroplane.
Secondly, for many central banks, cutting interest rates further is a non-starter even if they did think it would make a difference.
Advertisement
For example, the eurozone already has negative interest rates, while any further moves to reduce the cost of borrowing would further enrage German savers who already loathe the European Central Bank and who yearn for the reintroduction of the Deutschemark.
Image: The European Central Bank (ECB) has a new president at the helm in Christine Lagarde
Other countries, including Japan, Denmark and Switzerland, also have negative interest rates while Sweden has only just moved away from negative interest rates for the first time in five years.
Other central banks, even though they may not have negative interest rates, are similarly constrained.
A good example here is the Bank of England.
While the US Federal Reserve has faced heavy criticism from President Trump for having interest rates too high, it can be argued that, in having raised interest rates nine times between December 2015 and December 2018, it at least gave itself plenty of ammunition to lower them subsequently, which it has four times.
By contrast, the Bank has raised its main policy rate just twice since its emergency cut in 2016, taking it from 0.25% to 0.5% in October 2017 and from 0.5% to 0.75% in July 2018. It has very little scope to cut rates further.
Thirdly, there are plenty of reasons why cutting interest rates to ultra-low levels will have a malign effect.
For a start, ultra-low interest rates depress the profits of banks, since they lead to so-called 'margin compression' - narrowing the spread between what banks pay savers and charge borrowers.
This is a factor that has crushed returns at European banks for some time and reduces the incentives for banks to lend money.
It is why, when the Fed cut rates on Tuesday and stock markets briefly rallied before falling back, shares of the major US lenders - JP Morgan Chase, Citi and Bank of America - fell from the get-go.
Please use Chrome browser for a more accessible video player 2:53 The Organisation for Economic Cooperation and Development is warning that global growth could be halved if the virus gets worse
Another malign consequence of ultra-low interest rates is that they exaggerate deficits on company pension schemes.
This is because pension liabilities are calculated according to bond yields. In the UK, for example, scheme liabilities are linked to the yield on UK government bonds (gilts).
Those yields fall as the price rises - which, thanks to interest rate cuts and the Bank of England's policy of asset purchases (known in the jargon as Quantitative Easing or QE), they have been.
For example, at one point on Wednesday, the yield on 10-year gilts fell to a record low of 0.336%.
Please use Chrome browser for a more accessible video player 5:46 'UK could face economic downgrade'
And, of course, ultra-low interest rates also hurt savers. Many of these are older people living on fixed incomes and who rely heavily on the interest from their cash savings. Ultra-low interest rates eat into the spending power of such people - the precise opposite of what the Bank would want to achieve with a further rate cut.
By contrast, there is no guarantee that a cut in interest rates by the Bank of England would necessarily help mortgage borrowers, as the price of the typical home loan has already fallen to an all-time low as a result of competition among lenders.
For example, Nationwide Building Society is offering a 10-year fixed rate mortgage with a fixed rate of 2.34%. So it is hard to see how, even if the Bank were to cut its main policy rate from its already very low level, the cost of home loans could fall much further.
All of which explains why, apart from the Bank of Canada, none of the world's central banks have been too hasty in responding to the Fed's emergency cuts.
That is not to say that further easing is not going to happen.
The European Central Bank, for example, may be worried about the euro appreciating too strongly against the US dollar following the Fed's rate cut - rendering exports from eurozone economies less competitive.
This may also be a concern to the Swiss National Bank which, whenever the Swiss franc has appreciated on markets, has intervened on the currency markets to try and reduce its value.
Liz Martins, senior economist at HSBC, said she expects the Bank of England to cut interest rates on or before its next scheduled rate-setting meeting on 26 March.
She told Sky News on Wednesday: "I think the Bank will want to wait and take stock, see whether the spread of the virus stabilises, see how long it lasts and measure the impact on supply and demand in the economy."
Please use Chrome browser for a more accessible video player 0:25 Bank of England governor Mark Carney told MPs about the Bank's plans to respond to the coronavirus crisis.
Ms Martins said she thought a wider package of measures, such as a relaunch of the Term Funding Scheme - which enabled banks and building societies to borrow from the Bank at close to its main policy rate - could also be introduced, as well as an easing of the buffer that banks are encouraged to build up in good times.
That thesis - that the Bank is in no rush to act in haste - appeared to receive endorsement from Andew Bailey, the incoming governor, as he gave evidence to the treasury select committee.
He told MPs: "What we need is frankly more evidence than we have at the moment as to exactly how this is feeding through."
The key point, though, is this: if you are a company waiting for parts whose delivery has been delayed from China, or a retailer waiting for stock from Italy, an interest rate cut will not of itself be much help to you.
For smaller companies, in particular, the bigger challenge under such circumstances will relate to your cash flow.
It is why the Bank's outgoing governor, Mark Carney, told MPs this week that the Bank's financial policy committee was looking at how to address possible constraints on financing to UK businesses and households that might emerge as a result of coronavirus.
That sounded an awful lot like a reintroduction of the Term Funding Scheme.
And it may well be that fiscal, not monetary, policy will ultimately be the way to breathe life back into the economy.
Rishi Sunak, the new Chancellor, is already expected in next week's Budget to deliver on a promise in the election-winning Conservative manifesto to raise the threshold at which national insurance becomes payable.
But it is why some economists are increasingly talking about other tax cuts, for example, stamp duty on housing transactions, or even to VAT, as a way of keeping the economy ticking over.


news--2020-03-04--Coronavirus: Firms can expect financial support 'in the not very distant future'

Andrew Bailey , who is due to take over as governor of the Bank of England later this month , has told MPs that companies can expect help to mitigate coronavirus disruption .
At a pre-appointment hearing before the treasury select committee , Mr Bailey said the growing COVID-19 crisis would be his top priority when he succeeds Mark Carney on 16 March but more evidence was needed before policy decisions - such as interest rate cuts - are taken .
Mr Bailey will be taking hold of the reins at the Bank at a time when it is juggling @ @ @ @ @ @ @ market and economic stability since the financial crisis - coronavirus .
It is also an important cog in the Brexit process as the clock ticks down to the PM 's year-end deadline for a new trade deal with the EU .
As financial markets continue to fluctuate wildly over the threat posed by COVID-19 , speculation is running high over whether the Bank will follow the US Federal Reserve in cutting interest rates before Mr Bailey 's first scheduled meeting as head of the monetary policy committee ( MPC ) on 26th March @ @ @ @ @ @ @ told MPs on Tuesday that the MPC was considering `` the policy implications of various possible scenarios '' - adding that the economic shock `` could prove large '' .
Mr Bailey told the committee : `` I think it is quite reasonable to expect we are going to have to provide - collectively going to have to provide - some form of supply chain finance in the not very distant future now to ensure that the effects of this shock from the virus are not damaging to many forms of activity , @ @ @ @ @ @ @ sized firms , and we are going to have to move very quickly to do that . ''
The form of any such coordinated action with the government and independent Bank could feature in next week 's budget - the first by new chancellor Rishi Sunak - now expected to be dominated by measures to handle any widespread COVID-19 infection .
He did not rule out coordinated central bank action but added it was not always appropriate .
The treasury committee session was also dominated by questions from MPs on Mr Bailey 's @ @ @ @ @ @ @ Conduct Authority ( FCA ) , which regulates financial services firms .
Critics , including the Brexit process campaigner Gina Miller , have demanded his appointment as Bank governor is blocked , accusing him of `` negligence , incompetence and indifference '' while in charge of the FCA .
The collapse earlier last year of funds managed by once-lauded stock picker Neil Woodford raised questions about the role of the regulator .
It is also facing an independent investigation over its actions and policies when regulating investment firm London Capital & Finance , @ @ @ @ @ @ @ .
Mr Bailey defended his tenure since 2016 - saying that as the FCA 's remit had grown it had found it difficult not to stray outside boundaries determined by law to tackle wrongdoing .
`` I have to tell you that a lot of , yes , things , have happened during that period .
Things have happened that I wish had n't happened ... We 've had a huge task on our hands , I have to tell you , in rebuilding the organisation to take on that challenge .
`` @ @ @ @ @ @ @ had it been done earlier , because I think it would have been fit to take that on earlier . ''

Andrew Bailey, who is due to take over as governor of the Bank of England later this month, has told MPs that companies can expect help to mitigate coronavirus disruption.
At a pre-appointment hearing before the treasury select committee, Mr Bailey said the growing COVID-19 crisis would be his top priority when he succeeds Mark Carney on 16 March but more evidence was needed before policy decisions - such as interest rate cuts - are taken.
Mr Bailey will be taking hold of the reins at the Bank at a time when it is juggling not only the biggest threat to global market and economic stability since the financial crisis - coronavirus.
Image: Mark Carney's term has been extended three times because of Brexit and last year's election
It is also an important cog in the Brexit process as the clock ticks down to the PM's year-end deadline for a new trade deal with the EU.
As financial markets continue to fluctuate wildly over the threat posed by COVID-19, speculation is running high over whether the Bank will follow the US Federal Reserve in cutting interest rates before Mr Bailey's first scheduled meeting as head of the monetary policy committee (MPC) on 26th March.
Current governor, Mr Carney, told MPs on Tuesday that the MPC was considering "the policy implications of various possible scenarios" - adding that the economic shock "could prove large".
Mr Bailey told the committee: "I think it is quite reasonable to expect we are going to have to provide - collectively going to have to provide - some form of supply chain finance in the not very distant future now to ensure that the effects of this shock from the virus are not damaging to many forms of activity, and probably particularly to small and medium sized firms, and we are going to have to move very quickly to do that."
The form of any such coordinated action with the government and independent Bank could feature in next week's budget - the first by new chancellor Rishi Sunak - now expected to be dominated by measures to handle any widespread COVID-19 infection.
Please use Chrome browser for a more accessible video player 0:25 Bank of England governor Mark Carney told MPs about the Bank's plans to respond to the coronavirus crisis
He did not rule out coordinated central bank action but added it was not always appropriate.
Advertisement
The treasury committee session was also dominated by questions from MPs on Mr Bailey's record while in charge of the Financial Conduct Authority (FCA), which regulates financial services firms.
Critics, including the Brexit process campaigner Gina Miller, have demanded his appointment as Bank governor is blocked, accusing him of "negligence, incompetence and indifference" while in charge of the FCA.
The collapse earlier last year of funds managed by once-lauded stock picker Neil Woodford raised questions about the role of the regulator.
It is also facing an independent investigation over its actions and policies when regulating investment firm London Capital & Finance, which went into administration in January 2019.
Please use Chrome browser for a more accessible video player 0:33 The prime minister announced that payment of statutory sick pay from the first day someone is off work will be introduced.
Mr Bailey defended his tenure since 2016 - saying that as the FCA's remit had grown it had found it difficult not to stray outside boundaries determined by law to tackle wrongdoing.
"I have to tell you that a lot of, yes, things, have happened during that period. Things have happened that I wish hadn't happened ...We've had a huge task on our hands, I have to tell you, in rebuilding the organisation to take on that challenge.
"I think it would have been better had it been done earlier, because I think it would have been fit to take that on earlier."


news--2020-03-04--Coronavirus: Flybe set to collapse in hours amid outbreak-related slump in bookings

Flybe , one of Britain 's biggest airlines , is expected to fall into administration in the early hours of Thursday , putting more than 2,000 jobs at risk .
Sky News has learnt that Flybe renewed a plea for ministers to provide emergency financial support , even as ongoing talks about a state loan on commercial terms appear to have been rejected .
Sources said on Wednesday that there was a possibility that Flybe could fall into administration within a matter of days , although `` last-ditch '' discussions involving its shareholders and the government were continuing .
One @ @ @ @ @ @ @ surviving until a promised review of Air Passenger Duty ( APD ) charges in next Wednesday 's Budget now looked `` more remote '' .
`` The Budget now looks a long way off , '' said the source .
`` An already difficult situation has been made a lot worse . ''
The outbreak of the coronavirus , which has hit hundreds of airlines around the world , has prompted a `` collapse '' in bookings at Flybe .
Sir Richard Branson 's Virgin Atlantic , a shareholder in Flybe 's parent @ @ @ @ @ @ @ announce measures to mitigate the impact including reviews to flight schedules , a pay freeze and time-limited pay cuts for executives .
Flybe is said to have requested additional government support in recent days to mitigate the impact of COVID-19 .
Its other shareholders are Stobart Group , a listed infrastructure company , and Cyrus Capital Partners , a hedge fund .
The renewed fears of administration for the Exeter-based carrier , which would put more than 2000 jobs at risk , come about seven weeks after Flybe secured a stay of execution @ @ @ @ @ @ @ APD and take other steps to bolster regional connectivity .
In the last few days , Mark Anderson , chief executive of Flybe 's parent , Connect Airways , held talks with the UK airports into which the airline flies to request deep discounts to their charges for a two-year period .
One source said Mr Anderson had made it clear that Flybe 's collapse would also have a profound impact on the airports ' future .
Flybe has a presence at locations including Birmingham , Exeter , Newquay , Liverpool , Manchester @ @ @ @ @ @ @ , EY , the accountancy firm , is expected to oversee the insolvency .
EY was preparing to be appointed as administrator in January , before last-ditch talks secured a reprieve foe the troubled company .
The then business secretary , Andrea Leadsom , and the transport secretary , Grant Shapps , hailed the airline 's survival .
Since then , however , the Cabinet reshuffle and disagreements over the terms of a £100m government loan have cast a renewed shadow over Flybe 's prospects .
Last week , Sky News obtained a @ @ @ @ @ @ @ which he warned that most of its routes were likely to be abandoned if the company collapsed .
In the letter to the new business secretary , Alok Sharma , Mr Anderson says he is `` doing everything possible to secure our long-term future - addressing our cost base and working with our key partners including UK airports that depend on our survival '' .
The regional airline , which is responsible for almost 40 % of all domestic UK flights and carries more than 9m passengers annually , believes it is unfairly @ @ @ @ @ @ @ duty is levied on both legs of a regional flight .
Mr Anderson told the business secretary that 88 of its 120 routes are not flown by any other airline .
`` If Flybe were to cease trading , only a small number of our routes are likely to be taken up by another carrier , almost certainly at reduced frequencies , '' he wrote .
Contingency plans that would allow the government to continue operating Flybe routes seen as critical to preserving vital regional connections are being drawn up , according to @ @ @ @ @ @ @ to Mr Sharma , Mr Anderson said that Flybe had proposed `` introducing a new domestic APD band set at £6.50 ( half the current band A rate ) '' .
He added that adding new Public Service Obligation ( PSO ) routes , which receive public subsidy to make them viable , was also necessary .
Mr Anderson said Connect had `` proposed that government apply PSOs to a range of existing intra-regional routes , providing immediate support for their continued viability through a new fund '' .
The Flybe chief has @ @ @ @ @ @ @ a bailout , and any deal agreed with ministers would require the airline 's shareholders to commit tens of millions of pounds in new equity .
However , the talks have sparked controversy across the industry , with Ryanair and British Airways ' parent , International Airlines Group , threatening legal action against the government for breaching state aid law .
Michael O'Leary , Ryanair 's chief executive , accused the Treasury of being `` blindsided by billionaires '' , asking him : `` If these billionaire shareholders are not willing to put @ @ @ @ @ @ @ to bail out the loss-making Flybe , then why is your government and HMRC [ the tax authorities ] giving them a bailout ? ''

Flybe, one of Britain's biggest airlines, is expected to fall into administration in the early hours of Thursday, putting more than 2,000 jobs at risk.
Sky News has learnt that Flybe renewed a plea for ministers to provide emergency financial support, even as ongoing talks about a state loan on commercial terms appear to have been rejected.
Sources said on Wednesday that there was a possibility that Flybe could fall into administration within a matter of days, although "last-ditch" discussions involving its shareholders and the government were continuing.
Image: A notice taped to a Flybe plane at Glasgow Airport
One insider said the chances of the airline surviving until a promised review of Air Passenger Duty (APD) charges in next Wednesday's Budget now looked "more remote".
"The Budget now looks a long way off," said the source.
"An already difficult situation has been made a lot worse."
The outbreak of the coronavirus, which has hit hundreds of airlines around the world, has prompted a "collapse" in bookings at Flybe.
Sir Richard Branson's Virgin Atlantic, a shareholder in Flybe's parent firm, was the latest airline to announce measures to mitigate the impact including reviews to flight schedules, a pay freeze and time-limited pay cuts for executives.
Flybe is said to have requested additional government support in recent days to mitigate the impact of COVID-19.
Advertisement
Its other shareholders are Stobart Group, a listed infrastructure company, and Cyrus Capital Partners, a hedge fund.
Please use Chrome browser for a more accessible video player 0:57 'It's a nasty cover up subsidy to billionaires'
The renewed fears of administration for the Exeter-based carrier, which would put more than 2000 jobs at risk, come about seven weeks after Flybe secured a stay of execution with the government's vow to review APD and take other steps to bolster regional connectivity.
In the last few days, Mark Anderson, chief executive of Flybe's parent, Connect Airways, held talks with the UK airports into which the airline flies to request deep discounts to their charges for a two-year period.
One source said Mr Anderson had made it clear that Flybe's collapse would also have a profound impact on the airports' future.
Flybe has a presence at locations including Birmingham, Exeter, Newquay, Liverpool, Manchester and Southampton.
If it does collapse, EY, the accountancy firm, is expected to oversee the insolvency.
EY was preparing to be appointed as administrator in January, before last-ditch talks secured a reprieve foe the troubled company.
The then business secretary, Andrea Leadsom, and the transport secretary, Grant Shapps, hailed the airline's survival.
Since then, however, the Cabinet reshuffle and disagreements over the terms of a £100m government loan have cast a renewed shadow over Flybe's prospects.
Please use Chrome browser for a more accessible video player 2:42 Bailout declared a 'misuse of public funds'
Last week, Sky News obtained a letter from Mr Anderson to ministers in which he warned that most of its routes were likely to be abandoned if the company collapsed.
In the letter to the new business secretary, Alok Sharma, Mr Anderson says he is "doing everything possible to secure our long-term future - addressing our cost base and working with our key partners including UK airports that depend on our survival".
The regional airline, which is responsible for almost 40% of all domestic UK flights and carries more than 9m passengers annually, believes it is unfairly penalised by the APD system because the duty is levied on both legs of a regional flight.
Mr Anderson told the business secretary that 88 of its 120 routes are not flown by any other airline.
"If Flybe were to cease trading, only a small number of our routes are likely to be taken up by another carrier, almost certainly at reduced frequencies," he wrote.
Contingency plans that would allow the government to continue operating Flybe routes seen as critical to preserving vital regional connections are being drawn up, according to rival airline executives.
In his letter to Mr Sharma, Mr Anderson said that Flybe had proposed "introducing a new domestic APD band set at £6.50 (half the current band A rate)".
He added that adding new Public Service Obligation (PSO) routes, which receive public subsidy to make them viable, was also necessary.
Please use Chrome browser for a more accessible video player 7:09 British Airways objects to Flybe bailout
Mr Anderson said Connect had "proposed that government apply PSOs to a range of existing intra-regional routes, providing immediate support for their continued viability through a new fund".
The Flybe chief has insisted that the company is not seeking a bailout, and any deal agreed with ministers would require the airline's shareholders to commit tens of millions of pounds in new equity.
However, the talks have sparked controversy across the industry, with Ryanair and British Airways' parent, International Airlines Group, threatening legal action against the government for breaching state aid law.
Michael O'Leary, Ryanair's chief executive, accused the Treasury of being "blindsided by billionaires", asking him: "If these billionaire shareholders are not willing to put their hand in their own deep pockets to bail out the loss-making Flybe, then why is your government and HMRC [the tax authorities] giving them a bailout?"
Flybe declined to comment.


news--2020-03-04--Coronavirus: CCTV images released of men wanted over racist attack on student on London's Oxford Str

Coronavirus: CCTV images released of men wanted over racist attack on student on London's Oxford Street

Police investigating a racist attack on a student over the coronavirus outbreak have released CCTV images of four men .
Jonathan Mok , who is from Singapore and currently studying in the UK , says he was repeatedly punched by attackers who said they `` do n't want your coronavirus '' .
The 23-year-old said the assault took place as he walked along Oxford Street in central London at around 9.15pm on Monday 24 February .
He said he was left with facial fractures that may need reconstructive surgery .
The Metropolitan Police said no arrests had been made but @ @ @ @ @ @ @ of four men they want to speak to .
Detective Sergeant Emma Kirby said : `` This attack left the victim shaken and hurt .
`` There 's no room on our streets for this kind of violent behaviour and we are committed to finding the perpetrators .
`` I am keen to speak to anyone who has information about this assault .
`` I would like to identify and speak to the four men pictured who may be able to help me with our enquiries . ''
In his account of the @ @ @ @ @ @ @ how he turned to face the group after he overheard one of them say `` coronavirus '' .
He said he turned around at the comment to see one member of the group staring at him , who shouted : `` Do n't you dare look at me ... '' The student said : `` All of a sudden , the first punch was swung at my face and took me by surprise .
When I was still shocked by the first hit , the guy delivered the second sucker punch .
`` @ @ @ @ @ @ @ stopped and one of them tried to reason with them that four on one was not fair .
`` The attacker 's friend tried to swing a kick at me as I was explaining to the passer-by that I had n't done anything at all .
`` I tried to react in self-defence but could n't do anything substantial because I was still recovering from a broken finger in my master hand . ''
He added : `` The guy who tried to kick me then said ' I do n't want your @ @ @ @ @ @ @ swinging another sucker punch at me , which resulted in my face exploding with blood ( from my nose ) , where the blood was splattered all across the pavement . ''
: : Listen to the Daily podcast with Dermot Murnaghan on Apple Podcasts , Google Podcasts , Spotify , Spreaker Witnesses or anyone with information about the attack can contact police on 101 quoting CAD 7522/24FEB , or call Crimestoppers anonymously on 0800 555 111 .

Police investigating a racist attack on a student over the coronavirus outbreak have released CCTV images of four men.
Jonathan Mok, who is from Singapore and currently studying in the UK, says he was repeatedly punched by attackers who said they "don't want your coronavirus".
The 23-year-old said the assault took place as he walked along Oxford Street in central London at around 9.15pm on Monday 24 February.
Image: Jonathan Mok was left with a black eye and bloodied nose
He said he was left with facial fractures that may need reconstructive surgery.
The Metropolitan Police said no arrests had been made but enquiries continue, and have released images of four men they want to speak to.
Detective Sergeant Emma Kirby said: "This attack left the victim shaken and hurt.
"There's no room on our streets for this kind of violent behaviour and we are committed to finding the perpetrators.
"I am keen to speak to anyone who has information about this assault.
"I would like to identify and speak to the four men pictured who may be able to help me with our enquiries."
Advertisement
In his account of the assault on Facebook, Mr Mok described how he turned to face the group after he overheard one of them say "coronavirus".
He said he turned around at the comment to see one member of the group staring at him, who shouted: "Don't you dare look at me..."
The student said: "All of a sudden, the first punch was swung at my face and took me by surprise. When I was still shocked by the first hit, the guy delivered the second sucker punch.
"By then, a few passers-by had stopped and one of them tried to reason with them that four on one was not fair.
"The attacker's friend tried to swing a kick at me as I was explaining to the passer-by that I hadn't done anything at all.
"I tried to react in self-defence but couldn't do anything substantial because I was still recovering from a broken finger in my master hand."
Image: The 23-year-old said he may need reconstructive surgery
He added: "The guy who tried to kick me then said 'I don't want your coronavirus in my country', before swinging another sucker punch at me, which resulted in my face exploding with blood (from my nose), where the blood was splattered all across the pavement."
:: Listen to the Daily podcast with Dermot Murnaghan on Apple Podcasts, Google Podcasts, Spotify, Spreaker
Witnesses or anyone with information about the attack can contact police on 101 quoting CAD 7522/24FEB, or call Crimestoppers anonymously on 0800 555 111.


news--2020-05-15--Invesco equities chief Barnett to leave after 24-year stint

Mark Barnett , one of Britain 's best-known fund managers , is to step down after 24 years at Invesco following a disappointing run which saw him dismissed from the helm of a number of investment trusts .
Sky News has learnt that Mr Barnett 's departure from Invesco will be announced later on Friday morning .
It will come just weeks after he was relieved of his role as the manager of the Perpetual Income and Growth Trust after 21 years .
Like many asset managers , Mr Barnett has seen his funds shrink amid the coronavirus pandemic , @ @ @ @ @ @ @ crisis .
Sources said his departure had been agreed following a review led by Stephanie Butcher , a senior Invesco executive .
Mr Barnett 's responsibilities will be taken on by two other members of the firm 's UK equities team , James Goldstone and Ciaran Mallon .
Last week , Sky News revealed last week that Goldman Sachs was in talks to buy a big portfolio of company stakes owned by Invesco as it seeks to shift illiquid holdings whose value has been hit by the coronavirus pandemic .
Some of that @ @ @ @ @ @ @ by Neil Woodford , the former Invesco executive who went on to set up his own , ill-fated , asset management company , which imploded amid controversy last year .
More recently , the unquoted positions in Invesco 's UK equity funds have been overseen by Mr Barnett .
At Invesco , the performance of Mr Barnett 's funds has been hurt by a slump in the value of many of the listed companies he holds big stakes in , including the AA , BT Group and Kier , the construction and outsourcing @ @ @ @ @ @ @ % slump in the trust 's value during the previous 12 months .
Mr Barnett and Invesco are far from being isolated in seeing big outflows and sharp valuation falls as the COVID-19 crisis exerted a grip on global equity markets .
Funds with big exposures to consumer-facing stocks in sectors such as hospitality , retail and travel have been especially hard-hit .

Mark Barnett, one of Britain's best-known fund managers, is to step down after 24 years at Invesco following a disappointing run which saw him dismissed from the helm of a number of investment trusts.
Sky News has learnt that Mr Barnett's departure from Invesco will be announced later on Friday morning.
It will come just weeks after he was relieved of his role as the manager of the Perpetual Income and Growth Trust after 21 years.
Like many asset managers, Mr Barnett has seen his funds shrink amid the coronavirus pandemic, although his performance issues pre-dated the current crisis.
Sources said his departure had been agreed following a review led by Stephanie Butcher, a senior Invesco executive.
Mr Barnett's responsibilities will be taken on by two other members of the firm's UK equities team, James Goldstone and Ciaran Mallon.
Last week, Sky News revealed last week that Goldman Sachs was in talks to buy a big portfolio of company stakes owned by Invesco as it seeks to shift illiquid holdings whose value has been hit by the coronavirus pandemic.
Some of that collection of private company holdings were assembled by Neil Woodford, the former Invesco executive who went on to set up his own, ill-fated, asset management company, which imploded amid controversy last year.
More recently, the unquoted positions in Invesco's UK equity funds have been overseen by Mr Barnett.
Advertisement
At Invesco, the performance of Mr Barnett's funds has been hurt by a slump in the value of many of the listed companies he holds big stakes in, including the AA, BT Group and Kier, the construction and outsourcing company.
The decision followed a 40% slump in the trust's value during the previous 12 months.
Mr Barnett and Invesco are far from being isolated in seeing big outflows and sharp valuation falls as the COVID-19 crisis exerted a grip on global equity markets.
Funds with big exposures to consumer-facing stocks in sectors such as hospitality, retail and travel have been especially hard-hit.
Invesco declined to comment.


news--2020-05-15--Coronavirus: Airport ground-handlers seek furloughing clarity

Three of the companies which dominate ground-handling services at Britain 's airports have warned that changes to the government 's emergency wage subsidy scheme risk becoming `` another breaking point for our industry '' .
Sky News understands that Dnata , Swissport and WFS are urging the Chancellor Rishi Sunak to bring forward amendments that will enable them to furlough and utilise their workers on a part-time basis from the beginning of June , rather than two months later as he signalled this week .
Mr Sunak confounded widespread reports on Tuesday when he announced that the scheme - which @ @ @ @ @ @ @ - would be extended until October , with 80 % of employees ' salaries guaranteed up to £2,500-per-month .
He also said that from the beginning of August , companies would be expected to contribute part of the cost , although further details will not be disclosed until later in the month .
In a joint statement from executives at the three companies , they said they would `` welcome further clarity around the changes planned for the scheme in August , which have the potential to create another breaking point for our @ @ @ @ @ @ @ by fragile and unpredictable demand '' .
They added that this risk was heightened `` by the uncertainty around the proposed 14-day quarantine period , which might impact the desire of airlines to return to the skies '' .
: : Listen to the Daily podcast on Apple Podcasts , Google Podcasts , Spotify , Spreaker Some airlines have said they will not return to flying , or will operate only severely limited schedules , if the quarantine period is introduced .
`` We are asking that furlough flexibility is brought forward from @ @ @ @ @ @ @ three-week minimum furlough period removed '' , the trio of companies said '' Allowing staff to be part-time furloughed and part-time re-engaged in paid work would provide crucial flexibility during this difficult period , helping to sustain employment and reduce costs for the government in the long-term . ''
The ground-handlers , along with Menzies Aviation , have warned repeatedly that the coronavirus pandemic threatens tens of thousands of jobs across their sector .

Three of the companies which dominate ground-handling services at Britain's airports have warned that changes to the government's emergency wage subsidy scheme risk becoming "another breaking point for our industry".
Sky News understands that Dnata, Swissport and WFS are urging the Chancellor Rishi Sunak to bring forward amendments that will enable them to furlough and utilise their workers on a part-time basis from the beginning of June, rather than two months later as he signalled this week.
Please use Chrome browser for a more accessible video player 1:03 Chancellor warns of a 'significant recession'
Mr Sunak confounded widespread reports on Tuesday when he announced that the scheme - which could cost in the region of £80bn - would be extended until October, with 80% of employees' salaries guaranteed up to £2,500-per-month.
He also said that from the beginning of August, companies would be expected to contribute part of the cost, although further details will not be disclosed until later in the month.
Please use Chrome browser for a more accessible video player 2:03 How airlines are responding to COVID challenge
In a joint statement from executives at the three companies, they said they would "welcome further clarity around the changes planned for the scheme in August, which have the potential to create another breaking point for our industry as we face an environment marked by fragile and unpredictable demand".
They added that this risk was heightened "by the uncertainty around the proposed 14-day quarantine period, which might impact the desire of airlines to return to the skies".
:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
Some airlines have said they will not return to flying, or will operate only severely limited schedules, if the quarantine period is introduced.
"We are asking that furlough flexibility is brought forward from 1 August to 1 June and the three-week minimum furlough period removed", the trio of companies said
"Allowing staff to be part-time furloughed and part-time re-engaged in paid work would provide crucial flexibility during this difficult period, helping to sustain employment and reduce costs for the government in the long-term."
Advertisement
The ground-handlers, along with Menzies Aviation, have warned repeatedly that the coronavirus pandemic threatens tens of thousands of jobs across their sector.


news--2020-05-15--Coronavirus: US hedge fund Davidson Kempner eyes Virgin Atlantic deal

A prominent American hedge fund has emerged among a pack of suitors eyeing a deal to prop up Virgin Atlantic Airways as it races to secure the funds it needs to survive the COVID-19 crisis .
Sky News has learnt that New York-based Davidson Kempner Capital Management is one of the prospective investors which held talks with Virgin Atlantic bosses this week .
The airline , which is seeking more than £500m in debt and equity funding following a collapse in revenue , wants to stitch together a deal this month .
Sources said that Davidson Kempner was on a @ @ @ @ @ @ @ Virgin Atlantic which also includes Apollo Global Management , Cerberus Capital Management and Greybull Capital , the former owner of Monarch Airlines .
Davidson Kempner , which manages well over $ 30bn in assets , is among the hedge funds negotiating a financial restructuring of the US department store chain Neiman Marcus .
The carrier founded by Sir Richard Branson in 1984 has also been engaged in lengthy negotiations with the government about taxpayer support .
While those talks continue , the prospect of a Treasury loan to Virgin Atlantic appears remote .
@ @ @ @ @ @ @ $ 400m of his stake in Virgin Galactic , his space tourism venture , in order to inject some of the proceeds into his flagship airline .
Last weekend , Sky News revealed that Virgin Atlantic had put Alvarez & Marsal on standby to handle a possible administration process , with a pre-pack insolvency among the potential outcomes from the refinancing process .
The firm 's appointment does not mean that administration is inevitable , but reflects the legal obligation of Virgin Atlantic 's directors to prepare for such an outcome , according @ @ @ @ @ @ @ would be particularly complex in the airline industry , because an insolvency would automatically terminate Virgin Atlantic 's aircraft leasing and take-off and landing slot agreements .
Any pre-pack deal would wipe out the equity of existing shareholders - Sir Richard 's holding company and Delta Air Lines .
Virgin Atlantic chief executive Shai Weiss announced a cost-cutting plan last week that involves axing more than 3,000 jobs - about one-third of its workforce .
: : Listen to the Daily podcast on Apple Podcasts , Google Podcasts , Spotify , Spreaker It @ @ @ @ @ @ @ extent to which the global aviation industry has been decimated by the COVID-19 pandemic .
The company 's plans include ending its 36-year tenure at Gatwick Airport , reducing the size of its fleet and putting its Boeing 747s into early retirement .
Houlihan Lokey , the investment ban , is co-ordinating the talks with potential investors in Virgin Atlantic .
The process has been further complicated by the emergence of government plans for a two-week quarantine requirement for anyone flying into the country .
Grant Shapps , the transport secretary , held @ @ @ @ @ @ @ .
Virgin Atlantic is already anticipating that customer demand will be at least 40 % lower during 2020 , with only a gradual recovery next year .
Mr Weiss made a presentation this week to potential investors , with one saying he had provided `` robust evidence of a credible turnaround plan '' .
Last week , Willie Walsh , the outgoing chief executive of British Airways ' parent , International Airlines Group , dampened hopes that it would resume flying if the government introduced a 14-day quarantine requirement .
The Treasury has @ @ @ @ @ @ @ the idea of committing taxpayers ' money to Virgin Atlantic , partly because of its ownership by billionaire Sir Richard and Delta Air Lines , a US carrier which has itself just been bailed out by Washington .
The company recently received a capital injection amounting to more than $ 100m from Sir Richard 's Virgin Group .
It has also furloughed thousands of staff and seen its top executives agree substantial pay cuts because of the COVID-19 outbreak .
Less than a handful of Virgin Atlantic 's planes have been flying since @ @ @ @ @ @ @ when Peter Norris , Virgin Group 's chairman , urged Mr Johnson to establish an industry-wide support package that could cost in the region of £7.5bn .
Sir Richard recently made an impassioned defence of his group 's financial affairs , warning that the transatlantic airline he founded in the 1980s was likely to collapse without government support .
He has already seen Virgin Australia fall into a process called voluntary administration , putting thousands of jobs at risk .
Virgin Atlantic is seeking hundreds of millions of pounds in the form of @ @ @ @ @ @ @ a government guarantee on further sums owed to it by credit card companies .
The company said on Friday that it remained in talks with private investors and the government .

A prominent American hedge fund has emerged among a pack of suitors eyeing a deal to prop up Virgin Atlantic Airways as it races to secure the funds it needs to survive the COVID-19 crisis.
Sky News has learnt that New York-based Davidson Kempner Capital Management is one of the prospective investors which held talks with Virgin Atlantic bosses this week.
The airline, which is seeking more than £500m in debt and equity funding following a collapse in revenue, wants to stitch together a deal this month.
Please use Chrome browser for a more accessible video player 2:03 How airlines are responding to COVID challenge
Sources said that Davidson Kempner was on a list of financial investors in discussions with Virgin Atlantic which also includes Apollo Global Management, Cerberus Capital Management and Greybull Capital, the former owner of Monarch Airlines.
Davidson Kempner, which manages well over $30bn in assets, is among the hedge funds negotiating a financial restructuring of the US department store chain Neiman Marcus.
The carrier founded by Sir Richard Branson in 1984 has also been engaged in lengthy negotiations with the government about taxpayer support.
While those talks continue, the prospect of a Treasury loan to Virgin Atlantic appears remote.
Sir Richard is trying to sell roughly $400m of his stake in Virgin Galactic, his space tourism venture, in order to inject some of the proceeds into his flagship airline.
Last weekend, Sky News revealed that Virgin Atlantic had put Alvarez & Marsal on standby to handle a possible administration process, with a pre-pack insolvency among the potential outcomes from the refinancing process.
Advertisement
Please use Chrome browser for a more accessible video player 2:21 Airlines face uncertain future
The firm's appointment does not mean that administration is inevitable, but reflects the legal obligation of Virgin Atlantic's directors to prepare for such an outcome, according to aviation experts.
Such a procedure would be particularly complex in the airline industry, because an insolvency would automatically terminate Virgin Atlantic's aircraft leasing and take-off and landing slot agreements.
Any pre-pack deal would wipe out the equity of existing shareholders - Sir Richard's holding company and Delta Air Lines.
Virgin Atlantic chief executive Shai Weiss announced a cost-cutting plan last week that involves axing more than 3,000 jobs - about one-third of its workforce.
:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
It was the latest brutal evidence of the extent to which the global aviation industry has been decimated by the COVID-19 pandemic.
The company's plans include ending its 36-year tenure at Gatwick Airport, reducing the size of its fleet and putting its Boeing 747s into early retirement.
Houlihan Lokey, the investment ban, is co-ordinating the talks with potential investors in Virgin Atlantic.
The process has been further complicated by the emergence of government plans for a two-week quarantine requirement for anyone flying into the country.
Grant Shapps, the transport secretary, held further talks with airline bosses this week.
Virgin Atlantic is already anticipating that customer demand will be at least 40% lower during 2020, with only a gradual recovery next year.
Mr Weiss made a presentation this week to potential investors, with one saying he had provided "robust evidence of a credible turnaround plan".
Last week, Willie Walsh, the outgoing chief executive of British Airways' parent, International Airlines Group, dampened hopes that it would resume flying if the government introduced a 14-day quarantine requirement.
Please use Chrome browser for a more accessible video player 2:23 Chancellor warns of a 'significant recession'
The Treasury has, to date, been lukewarm about the idea of committing taxpayers' money to Virgin Atlantic, partly because of its ownership by billionaire Sir Richard and Delta Air Lines, a US carrier which has itself just been bailed out by Washington.
The company recently received a capital injection amounting to more than $100m from Sir Richard's Virgin Group.
It has also furloughed thousands of staff and seen its top executives agree substantial pay cuts because of the COVID-19 outbreak.
Less than a handful of Virgin Atlantic's planes have been flying since the UK lockdown began in March, when Peter Norris, Virgin Group's chairman, urged Mr Johnson to establish an industry-wide support package that could cost in the region of £7.5bn.
Sir Richard recently made an impassioned defence of his group's financial affairs, warning that the transatlantic airline he founded in the 1980s was likely to collapse without government support.
He has already seen Virgin Australia fall into a process called voluntary administration, putting thousands of jobs at risk.
Virgin Atlantic is seeking hundreds of millions of pounds in the form of a commercial loan, as well as a government guarantee on further sums owed to it by credit card companies.
The company said on Friday that it remained in talks with private investors and the government.
Davidson Kempner declined to comment.


news--2020-05-15--Coronavirus: Manufacturing pessimism grows over recovery, survey finds

More than a third of manufacturers believe it will take more than a year to return to normal trading as a result of the pandemic - double the number of two weeks ago , an industry survey has found .
With sales and orders continuing to fall with the coronavirus crisis , nearly a fifth of companies are also planning to increase the number of staff on furlough over the next fortnight , according to a trade body .
The latest COVID-19 manufacturing monitor published by Make UK , the manufacturers ' organisation , revealed 36 % of firms believe @ @ @ @ @ @ @ to recover , compared to 17 % in the last survey two weeks ago .
More than three-quarters ( 78.3 % ) have seen a decline in sales while more than four-fifths ( 82.5 % ) have seen orders fall .
The importance of the government 's job retention scheme , extended until October this week , is also underlined with around a fifth of companies ( 21.9 % ) having furloughed up to half their staff already .
Nearly the same proportion are planning to extend it to more workers in the @ @ @ @ @ @ @ third of companies ( 34.4 % ) said they will only take staff off furlough when they see an increase in orders .
: : Listen to the Daily podcast on Apple Podcasts , Google Podcasts , Spotify , Spreaker Make UK chief executive Stephen Phipson said : `` If we thought we were in for a long haul before now , then this puts into stark context the reality for many companies over the next year .
`` It 's clear that it is going to be a long road back to @ @ @ @ @ @ @ despite the lockdown beginning to be lifted , there will be a significant impact on companies and jobs for some time to come . ''
He added : `` Government has been very supportive to date with the various schemes to help companies and protect jobs ahead of what is clearly going to be a major downturn .
If we are now looking even further into the horizon to fully recover , there might need to be everything on the table to ensure the economy is sustained through this period . ''
The @ @ @ @ @ @ @ between 4 and 11 May .

More than a third of manufacturers believe it will take more than a year to return to normal trading as a result of the pandemic - double the number of two weeks ago, an industry survey has found.
With sales and orders continuing to fall with the coronavirus crisis, nearly a fifth of companies are also planning to increase the number of staff on furlough over the next fortnight, according to a trade body.
Please use Chrome browser for a more accessible video player 2:23 Chancellor warns of a 'significant recession'
The latest COVID-19 manufacturing monitor published by Make UK, the manufacturers' organisation, revealed 36% of firms believe it will take more than a year to recover, compared to 17% in the last survey two weeks ago.
More than three-quarters (78.3%) have seen a decline in sales while more than four-fifths (82.5%) have seen orders fall.
The importance of the government's job retention scheme, extended until October this week, is also underlined with around a fifth of companies (21.9%) having furloughed up to half their staff already.
Nearly the same proportion are planning to extend it to more workers in the next two weeks.
More than a third of companies (34.4%) said they will only take staff off furlough when they see an increase in orders.
:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
Make UK chief executive Stephen Phipson said: "If we thought we were in for a long haul before now, then this puts into stark context the reality for many companies over the next year.
Advertisement
"It's clear that it is going to be a long road back to anything like normal trading conditions and, despite the lockdown beginning to be lifted, there will be a significant impact on companies and jobs for some time to come."
He added: "Government has been very supportive to date with the various schemes to help companies and protect jobs ahead of what is clearly going to be a major downturn. If we are now looking even further into the horizon to fully recover, there might need to be everything on the table to ensure the economy is sustained through this period."
The survey of 197 companies was carried out between 4 and 11 May.


news--2020-05-15--Coronavirus: Germany in recession as economy takes biggest hit since crash

Germany is officially in recession after its economy shrank by 2.2 % in the first quarter of the year as the global coronavirus shutdown began to bite .
The latest official data gives an insight into the damage caused by the COVID-19 pandemic to Europe 's biggest economy , with worse expected to come .
The fall over the three months to March was the second-biggest quarterly decline since German reunification in 1990 .
It was beaten only by a 4.7 % drop in the first quarter of 2009 at the height of the financial crash .
It follows a @ @ @ @ @ @ @ , which was revised down from an initial report of zero growth .
That change puts Germany into a technical recession , with two consecutive quarters of economic contraction .
Like other European countries , Germany did not go into lockdown until around mid-March , and so the main impact of the restrictions on people and businesses will only become apparent in the current second quarter .
A 10 % economic contraction is widely forecast for the period , although `` the exact extent of the slump depends in part on the easing @ @ @ @ @ @ @ said Albert Braakmann of Germany 's federal statistics office .
ING 's chief economist for the eurozone , Carsten Brzeski , said : `` If today 's data are the result of two weeks of lockdown , three more weeks of lockdown and a very gradual lifting of some measures do not bode well for the second quarter . ''
It strengthens expectations that Germany is facing its deepest recession since World War Two .
: : Listen to the Daily podcast on Apple Podcasts , Google Podcasts , Spotify , Spreaker But @ @ @ @ @ @ @ including France and Italy , which are already in recession , after the economies shrank by 5.8 % and 4.7 % respectively in the first quarter .
Data already released has shown that the 19-nation eurozone 's economy shrank by a record 3.8 % in the first quarter as the economy ground to halt .
Allianz economist Katharina Utermoehl said in a research note that the German economy looked set to emerge faster and in a stronger position than most of its neighbours .
She pointed out that other nations needed stricter and @ @ @ @ @ @ @ the services and tourism sectors .
She also said `` the decisive and comprehensive policy action on behalf of the German government has been key in limiting the economic damage '' .
Many German employers were able to switch staff to shorter working hours during the outbreak , avoiding mass redundancies , under the terms of a €750bn ( £668bn ) government rescue package .
The country 's 16 states also chose to allow factories and building sites to remain open .
Recent data showed construction - which accounts for almost 10 % @ @ @ @ @ @ @ % in March .

Germany is officially in recession after its economy shrank by 2.2% in the first quarter of the year as the global coronavirus shutdown began to bite.
The latest official data gives an insight into the damage caused by the COVID-19 pandemic to Europe's biggest economy, with worse expected to come.
Please use Chrome browser for a more accessible video player 2:23 Chancellor warns of a 'significant recession'
The fall over the three months to March was the second-biggest quarterly decline since German reunification in 1990.
It was beaten only by a 4.7% drop in the first quarter of 2009 at the height of the financial crash.
It follows a 0.1% contraction in the fourth quarter, which was revised down from an initial report of zero growth.
That change puts Germany into a technical recession, with two consecutive quarters of economic contraction.
Like other European countries, Germany did not go into lockdown until around mid-March, and so the main impact of the restrictions on people and businesses will only become apparent in the current second quarter.
A 10% economic contraction is widely forecast for the period, although "the exact extent of the slump depends in part on the easing of restrictions on public life", said Albert Braakmann of Germany's federal statistics office.
ING's chief economist for the eurozone, Carsten Brzeski, said: "If today's data are the result of two weeks of lockdown, three more weeks of lockdown and a very gradual lifting of some measures do not bode well for the second quarter."
Advertisement
It strengthens expectations that Germany is facing its deepest recession since World War Two.
:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
But forecasts are worse for other European countries including France and Italy, which are already in recession, after the economies shrank by 5.8% and 4.7% respectively in the first quarter.
Data already released has shown that the 19-nation eurozone's economy shrank by a record 3.8% in the first quarter as the economy ground to halt.
Allianz economist Katharina Utermoehl said in a research note that the German economy looked set to emerge faster and in a stronger position than most of its neighbours.
She pointed out that other nations needed stricter and longer lockdowns and their greater reliance on the services and tourism sectors.
She also said "the decisive and comprehensive policy action on behalf of the German government has been key in limiting the economic damage".
Many German employers were able to switch staff to shorter working hours during the outbreak, avoiding mass redundancies, under the terms of a €750bn (£668bn) government rescue package.
The country's 16 states also chose to allow factories and building sites to remain open.
Recent data showed construction - which accounts for almost 10% of the economy - grew by 1.8% in March.


news--2020-05-15--Coronavirus: How GCSEs, AS and A-levels will be graded and awarded in England

With GCSE , AS and A-level exams cancelled this year , many students and their parents have been concerned about how the grades will be awarded .
Exams regulator Ofqual said teachers in England should grade pupils based on `` fair , objective and carefully considered '' judgements of the results they believe each student would likely have got if tests had not been shelved due to the coronavirus pandemic .
Many pupils previously spoke of their frustrations , with some suggesting they believed poor relationships with teachers could affect their final mark .
Now Ofqual has issued fuller guidance @ @ @ @ @ @ @ confirmed that all assessment grades will go through an external standardisation process .
How will it work ?
Teachers have been asked by Ofqual to make a judgement of the grade they believe a student would have achieved had they sat their exams as normal this year .
This includes taking into account homework assignments , mock exams and any other recorded pieces of the student 's performance .
Teachers are also asked to rank students within each grade in order to provide more information for the standardisation process .
That process is @ @ @ @ @ @ @ These assessments will be sent on to the exam boards from 1 June and a final deadline will be issued to schools closer to the time , with at least two weeks ' notice .
Will students be set new work to help inform their grade ?
The exams regulator has said there is no requirement to set more mock exams or homework tasks to be used to help determine student grades .
Ofqual has communicated to schools and colleges that it is important no student should be put at a disadvantage if @ @ @ @ @ @ @ set after schools were closed , for example if they do not have adequate access to a computer .
Additionally , educators are asked to give consideration to any work done after the closure of schools which is notably better or worse than the pupil 's normal performance .
For some subjects , students will have completed or nearly finished non-exam assessments or coursework .
The guidance says that schools and colleges do not need to ask students to complete any unfinished non-exam assessment work for the summer 2020 grades .
Will schools @ @ @ @ @ @ @ evidence they have based grades on ?
No , but they should keep records in case any queries arise .
Should parents and students be concerned about whether pupils will be ranked accurately ?
Ofqual says in its guidance that `` teachers are highly experienced at making assessment decisions and evidence shows they can rank order their students with a high degree of accuracy '' .
It adds that it is `` vital '' that schools and colleges take in the full range of available evidence of the student 's work .
Schools @ @ @ @ @ @ @ internally the rank order and come to consensus that the same standard is being applied to all pupils .
Exam boards will then standardise the judgements once grades have been submitted .
This will be done using a computer model drawing on : • The previous results from that school or college • The previous grades of that year 's students within the school or college • The expected national grade for the subject , considering the grades of that year across the country It will not be determined by the individual student @ @ @ @ @ @ @ appear to be more severe or generous than others , exam boards will adjust the grades of some or all of those students to account for that .
The standardisation process will take into account whether the school or college made a recent improvement or downturn in performance .
Will newly qualified teachers be permitted to provide grades ?
Yes , but with support from their head of department .
What if a pupil changed school or colleague during their studies ?
The head of the school or colleague the pupil is currently @ @ @ @ @ @ @ previous education centre and to take that evidence into account .
If a student studied previously with a school or college but had not entered for examinations there , it may be more appropriate for the previous centre ( which would therefore hold more evidence of the student 's work ) to submit the grade and rank order to the exam board .
: : Listen to the Daily podcast on Apple Podcasts , Google Podcasts , Spotify , Spreaker Will students be allowed to know what their school or college has graded @ @ @ @ @ @ @ is to `` protect the integrity of the teachers ’ judgements , and to avoid teachers , heads of department or heads of centre feeling under pressure to submit a grade that is not supported by the evidence '' .
When will we know the results ?
As previously planned , results will be announced on 13 August for A-levels and 20 August for GCSE .
If unhappy , can students appeal their grades ?
Yes .
Appeals should be made to exam boards by schools and colleges , on behalf of the @ @ @ @ @ @ @ able to re-take their exams in the autumn term or in summer 2021 .
Fees for this will be confirmed by each exam board .

With GCSE, AS and A-level exams cancelled this year, many students and their parents have been concerned about how the grades will be awarded.
Exams regulator Ofqual said teachers in England should grade pupils based on "fair, objective and carefully considered" judgements of the results they believe each student would likely have got if tests had not been shelved due to the coronavirus pandemic.
Many pupils previously spoke of their frustrations, with some suggesting they believed poor relationships with teachers could affect their final mark.
Now Ofqual has issued fuller guidance on how grades will be awarded and confirmed that all assessment grades will go through an external standardisation process.
Image: All grades will go through a standardisation process
How will it work?
Teachers have been asked by Ofqual to make a judgement of the grade they believe a student would have achieved had they sat their exams as normal this year.
This includes taking into account homework assignments, mock exams and any other recorded pieces of the student's performance.
Teachers are also asked to rank students within each grade in order to provide more information for the standardisation process. That process is explained in more detail further down.
These assessments will be sent on to the exam boards from 1 June and a final deadline will be issued to schools closer to the time, with at least two weeks' notice.
Advertisement
Will students be set new work to help inform their grade?
The exams regulator has said there is no requirement to set more mock exams or homework tasks to be used to help determine student grades.
Ofqual has communicated to schools and colleges that it is important no student should be put at a disadvantage if they are unable to complete any work set after schools were closed, for example if they do not have adequate access to a computer.
Additionally, educators are asked to give consideration to any work done after the closure of schools which is notably better or worse than the pupil's normal performance.
For some subjects, students will have completed or nearly finished non-exam assessments or coursework. The guidance says that schools and colleges do not need to ask students to complete any unfinished non-exam assessment work for the summer 2020 grades.
Will schools and colleges be asked to submit the evidence they have based grades on?
No, but they should keep records in case any queries arise.
Please use Chrome browser for a more accessible video player 2:38 How will schools enforce social distancing?
Should parents and students be concerned about whether pupils will be ranked accurately?
Ofqual says in its guidance that "teachers are highly experienced at making assessment decisions and evidence shows they can rank order their students with a high degree of accuracy".
It adds that it is "vital" that schools and colleges take in the full range of available evidence of the student's work.
Schools and colleagues should be prepared to discuss internally the rank order and come to consensus that the same standard is being applied to all pupils.
Exam boards will then standardise the judgements once grades have been submitted. This will be done using a computer model drawing on:
The previous results from that school or college
The previous grades of that year's students within the school or college
The expected national grade for the subject, considering the grades of that year across the country
It will not be determined by the individual student's previous grades.
If grading judgements appear to be more severe or generous than others, exam boards will adjust the grades of some or all of those students to account for that.
The standardisation process will take into account whether the school or college made a recent improvement or downturn in performance.
Will newly qualified teachers be permitted to provide grades?
Yes, but with support from their head of department.
What if a pupil changed school or colleague during their studies?
The head of the school or colleague the pupil is currently at is allowed to consult with the previous education centre and to take that evidence into account.
If a student studied previously with a school or college but had not entered for examinations there, it may be more appropriate for the previous centre (which would therefore hold more evidence of the student's work) to submit the grade and rank order to the exam board.
Podcast Podcast , which may be using cookies and other technologies. To show you this content, we need your permission to use cookies. You can use the buttons below to amend your preferences to enable Podcast cookies or to allow those cookies just once. You can change your settings at any time via the This content is provided by, which may be using cookies and other technologies. To show you this content, we need your permission to use cookies. You can use the buttons below to amend your preferences to enablecookies or to allow those cookies just once. You can change your settings at any time via the Privacy Options Unfortunately we have been unable to verify if you have consented to Podcast cookies. To view this content you can use the button below to allow Podcast cookies for this session only. Enable Cookies Allow Cookies Once
:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
Will students be allowed to know what their school or college has graded them?
No. Ofqual say this is to "protect the integrity of the teachers’ judgements, and to avoid teachers, heads of department or heads of centre feeling under pressure to submit a grade that is not supported by the evidence".
When will we know the results?
As previously planned, results will be announced on 13 August for A-levels and 20 August for GCSE.
If unhappy, can students appeal their grades?
Yes. Appeals should be made to exam boards by schools and colleges, on behalf of the pupil.
Pupils are expected to be able to re-take their exams in the autumn term or in summer 2021.
Fees for this will be confirmed by each exam board.


news--2020-05-15--Eurovision: Forget 'nul points', UK takes 14th place in Spotify streams of entries

The UK has a love-hate relationship with the Eurovision Song Contest , with our infamous `` nul points '' result in 2003 a notable low .
But this year - despite the competition being cancelled due to coronavirus - the UK can proudly claim a place in the top 20 .
Spotify have globally ranked the streaming figures for all the Eurovision finalists , with the UK entry - My Last Breath - taking a respectable 14th place .
When narrowed down to UK streaming figures , the UK entry does even better , taking 7th place .
The love @ @ @ @ @ @ @ is performed by James Newman - the brother of popstar John Newman .
The UK has not made it into the top 10 in the actual contest since 2009 .
Iceland take the top spot according to Spotify 's streaming data , which has been collected since 26 February when the official Eurovision 2020 playlist launched on the platform .
Icelandic synth-pop six piece Daoi & Gagnamagnio 's song Think About Things is the most listened to of all this year 's tunes .
Male singer Daoi Freyr is actually a solo act @ @ @ @ @ @ @ - which includes his wife , sister and friends - especially for the contest .
The 80s-inspired track , which they perform wearing bright green jumpers , is about the lead singer 's baby daughter .
Iceland have never actually won the competition , and while acts can return next year , new songs are mandatory - so this song will sadly never get the chance to compete in the real contest .
It 's no surprise that the most streamed Eurovision artists of all time are Swedish foursome ABBA .
However , @ @ @ @ @ @ @ Finnish monsters and an Austrian bearded beauty have also all grabbed the world 's attention over the years .
The last UK act to win Eurovision were Katrina And The Waves back in 1997 , and before that Bucks Fizz in 1981. : : Listen to the Backstage podcast on Apple Podcasts , Google Podcasts , Spotify , Spreaker The longest-running annual TV contest in history , this year 's show would have seen 26 finalists compete in the Netherlands for the top place , and the chance to host the show next @ @ @ @ @ @ @ in the competition 's 64-year history it 's not gone ahead .
After the event was called off by the European Broadcasting Union in March due to COVID-19 , the Rotterdam venue was put to good use as a coronavirus field hospital .

The UK has a love-hate relationship with the Eurovision Song Contest, with our infamous "nul points" result in 2003 a notable low.
But this year - despite the competition being cancelled due to coronavirus - the UK can proudly claim a place in the top 20.
Sort of.
Image: James Newman sings My Last Breath - a love song about deep sea divers
Spotify have globally ranked the streaming figures for all the Eurovision finalists, with the UK entry - My Last Breath - taking a respectable 14th place.
When narrowed down to UK streaming figures, the UK entry does even better, taking 7th place.
The love song, about deep sea divers, is performed by James Newman - the brother of popstar John Newman.
Image: Still from the video of Think About Things by Daoi Freyr (Daoi & Gagnamagnio)
The UK has not made it into the top 10 in the actual contest since 2009.
Iceland take the top spot according to Spotify's streaming data, which has been collected since 26 February when the official Eurovision 2020 playlist launched on the platform.
YouTube YouTube , which may be using cookies and other technologies. To show you this content, we need your permission to use cookies. You can use the buttons below to amend your preferences to enable YouTube cookies or to allow those cookies just once. You can change your settings at any time via the This content is provided by, which may be using cookies and other technologies. To show you this content, we need your permission to use cookies. You can use the buttons below to amend your preferences to enablecookies or to allow those cookies just once. You can change your settings at any time via the Privacy Options Unfortunately we have been unable to verify if you have consented to YouTube cookies. To view this content you can use the button below to allow YouTube cookies for this session only. Enable Cookies Allow Cookies Once
Icelandic synth-pop six piece Daoi & Gagnamagnio's song Think About Things is the most listened to of all this year's tunes.
Advertisement
Male singer Daoi Freyr is actually a solo act, and he put together the band - which includes his wife, sister and friends - especially for the contest.
Image: Bucks Fizz won Eurovision in 1981 with Making Your My Mind Up
The 80s-inspired track, which they perform wearing bright green jumpers, is about the lead singer's baby daughter.
Iceland have never actually won the competition, and while acts can return next year, new songs are mandatory - so this song will sadly never get the chance to compete in the real contest.
It's no surprise that the most streamed Eurovision artists of all time are Swedish foursome ABBA.
Image: Conchita Wurst won the Eurovision Song Contest in 2014
However, milk churning maidens, Russian grandmothers, Finnish monsters and an Austrian bearded beauty have also all grabbed the world's attention over the years.
The last UK act to win Eurovision were Katrina And The Waves back in 1997, and before that Bucks Fizz in 1981.
:: Listen to the Backstage podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
The longest-running annual TV contest in history, this year's show would have seen 26 finalists compete in the Netherlands for the top place, and the chance to host the show next year.
This is the first time in the competition's 64-year history it's not gone ahead.
After the event was called off by the European Broadcasting Union in March due to COVID-19, the Rotterdam venue was put to good use as a coronavirus field hospital.


news--2020-05-15--Coronavirus: UK on target to recruit 18,000 contact tracers by next week, govt says

The government has said it is on course to recruit its target of 18,000 contact tracers next week .
It comes after a minister told Sky News that just 1,500 were in place at the start of this week .
Health Secretary Matt Hancock had pledged to recruit 18,000 contact tracers by the middle of this month .
The measure is a key part of the government 's `` test , track and trace '' strategy to ease the COVID-19 lockdown .
Ministers hope that contact tracing will help reduce transmission of coronavirus by identifying and alerting people who may @ @ @ @ @ @ @ will allow them to protect themselves and others close to them by self-isolating .
An app has been developed by NHSX , the health service 's digital arm , which is being trialled on the Isle of Wight .
Alongside this , a legion of human contact tracers will manually gather information about the places infected people have visited , and others they have been in contact with , to get a detailed picture of who might be at risk of infection .
: : Listen to the Daily podcast on Apple Podcasts @ @ @ @ @ @ @ Asked for an update on plans to recruit thousands of contact tracers , Northern Ireland Secretary Brandon Lewis told Sky News this morning : `` I do n't think we 've got to 18,000 just yet , I think there 's about 15,000 applications , we 're looking to as you say get up to 18,000 . ''
Pressed for an exact number of contact tracers recruited , he responded : `` As of this morning I 'm not sure of exactly how many of the 15,000 have been hired , earlier in @ @ @ @ @ @ @ it would have gone up since then . ''
Addressing a regular Westminster briefing for journalists , the prime minister 's spokesman said the 1,500 figure was out of date and `` significantly more '' have since been recruited .
However , Downing Street said it did not have a specific number .
`` The numbers he [ Brandon Lewis ] had were a little behind where we are , so I think it was just from a couple of days ago , '' Boris Johnson 's spokesman said .
`` I do @ @ @ @ @ @ @ I know that we have recruited significantly more than the 1,500 he spoke about and we are on course to have the 18,000 in place next week . ''
Labour has questioned whether 18,000 contact tracers will be enough , with the party noting that some experts have suggested `` as many as 50,000 may be needed '' .
Rachel Reeves , shadow chancellor of the Duchy of Lancaster , said the scheme had been a `` shambles '' so far .
She has written to opposite number Michael Gove to raise a @ @ @ @ @ @ @ it was a `` mistake '' for the government to have stopped contact tracing in March and that Labour `` supported '' moves to bring in a `` comprehensive strategy for contact tracing both through the use of a suitable mobile phone app and a manual tracing service '' .
She raised questions about the reported hiring of private firm Serco to put in place the manual contact tracing team .
Ms Reeves said there must be `` transparency and accountability for the huge sums of taxpayers ' money '' involved in the @ @ @ @ @ @ @

The government has said it is on course to recruit its target of 18,000 contact tracers next week.
It comes after a minister told Sky News that just 1,500 were in place at the start of this week.
Health Secretary Matt Hancock had pledged to recruit 18,000 contact tracers by the middle of this month.
Please use Chrome browser for a more accessible video player 2:33 How does contact tracing work?
The measure is a key part of the government's "test, track and trace" strategy to ease the COVID-19 lockdown.
Ministers hope that contact tracing will help reduce transmission of coronavirus by identifying and alerting people who may have been exposed to it.
This will allow them to protect themselves and others close to them by self-isolating.
An app has been developed by NHSX, the health service's digital arm, which is being trialled on the Isle of Wight.
Alongside this, a legion of human contact tracers will manually gather information about the places infected people have visited, and others they have been in contact with, to get a detailed picture of who might be at risk of infection.
:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
Advertisement
Asked for an update on plans to recruit thousands of contact tracers, Northern Ireland Secretary Brandon Lewis told Sky News this morning: "I don't think we've got to 18,000 just yet, I think there's about 15,000 applications, we're looking to as you say get up to 18,000."
Pressed for an exact number of contact tracers recruited, he responded: "As of this morning I'm not sure of exactly how many of the 15,000 have been hired, earlier in the week it was about 1,500, it would have gone up since then."
Addressing a regular Westminster briefing for journalists, the prime minister's spokesman said the 1,500 figure was out of date and "significantly more" have since been recruited.
Please use Chrome browser for a more accessible video player 2:14 First UK hospital to treat COVID on what we've learnt
However, Downing Street said it did not have a specific number.
"The numbers he [Brandon Lewis] had were a little behind where we are, so I think it was just from a couple of days ago," Boris Johnson's spokesman said.
"I don't have a more up-to-date number but I know that we have recruited significantly more than the 1,500 he spoke about and we are on course to have the 18,000 in place next week."
Labour has questioned whether 18,000 contact tracers will be enough, with the party noting that some experts have suggested "as many as 50,000 may be needed".
Rachel Reeves, shadow chancellor of the Duchy of Lancaster, said the scheme had been a "shambles" so far.
She has written to opposite number Michael Gove to raise a number of questions.
Twitter Twitter , which may be using cookies and other technologies. To show you this content, we need your permission to use cookies. You can use the buttons below to amend your preferences to enable Twitter cookies or to allow those cookies just once. You can change your settings at any time via the This content is provided by, which may be using cookies and other technologies. To show you this content, we need your permission to use cookies. You can use the buttons below to amend your preferences to enablecookies or to allow those cookies just once. You can change your settings at any time via the Privacy Options Unfortunately we have been unable to verify if you have consented to Twitter cookies. To view this content you can use the button below to allow Twitter cookies for this session only. Enable Cookies Allow Cookies Once
Ms Reeves said it was a "mistake" for the government to have stopped contact tracing in March and that Labour "supported" moves to bring in a "comprehensive strategy for contact tracing both through the use of a suitable mobile phone app and a manual tracing service".
She raised questions about the reported hiring of private firm Serco to put in place the manual contact tracing team.
Ms Reeves said there must be "transparency and accountability for the huge sums of taxpayers' money" involved in the government's response to the coronavirus.


news--2020-05-15--Coronavirus: Welsh First Minister urges English not to travel to Wales this weekend

People from England wanting to travel to beauty spots in Wales this weekend will `` find they are on the wrong side of the law '' , the first minister has warned .
Mark Drakeford said `` now is not the right moment '' for people from outside of Wales to cross the border , as he unveiled the country 's new traffic light system to help ease the coronavirus lockdown .
He told Sky News : `` My message to people in England is please visit Wales later .
`` We are very keen to welcome people and always @ @ @ @ @ @ @ the right moment .
`` In Wales the law is that you can only travel locally .
So people travelling long distances to come into Wales will find they are on the wrong side of the law . ''
He told a press conference in Cardiff that police officers along the border in North and West Wales have been forced to `` educate and persuade '' English motorists to go home every weekend since the start of the COVID-19 crisis .
: : Listen to the Daily podcast on Apple Podcasts , Google @ @ @ @ @ @ @ be put in place to discourage people from travelling to the country during the hot weather this weekend , he added .
He told Sky correspondent Dan Whitehead that he wished the differences between England and Wales 's approaches to easing the lockdown had been `` clearer from the outset '' , but said he does not think the UK government 's methods have been `` irresponsible '' .
Mr Drakeford said : `` Our message to our friends and colleagues in England is visit Wales , but do it later , now @ @ @ @ @ @ @ . ''
People in England have been allowed to travel as far as they want for exercise since Wednesday , providing they do not cross into Scotland or Wales .
According to the first minister , Wales is still in the `` black '' zone of its new traffic light system , which means people should continue to stay at home as far as possible .
The traffic light colours do not have any dates attached to them , but could see more children whose parents are key workers return to school before @ @ @ @ @ @ @ Sky News pubs and restaurants in Wales `` will not open anytime soon '' , but the `` first cautious steps '' will mean some minor changes .

People from England wanting to travel to beauty spots in Wales this weekend will "find they are on the wrong side of the law", the first minister has warned.
Mark Drakeford said "now is not the right moment" for people from outside of Wales to cross the border, as he unveiled the country's new traffic light system to help ease the coronavirus lockdown.
He told Sky News: "My message to people in England is please visit Wales later.
Image: People queue at a garden centre in Caerphilly, Wales, as minor changes to lockdown restriction begin
"We are very keen to welcome people and always have been, but now is not the right moment.
"In Wales the law is that you can only travel locally. So people travelling long distances to come into Wales will find they are on the wrong side of the law."
He told a press conference in Cardiff that police officers along the border in North and West Wales have been forced to "educate and persuade" English motorists to go home every weekend since the start of the COVID-19 crisis.
Podcast Podcast , which may be using cookies and other technologies. To show you this content, we need your permission to use cookies. You can use the buttons below to amend your preferences to enable Podcast cookies or to allow those cookies just once. You can change your settings at any time via the This content is provided by, which may be using cookies and other technologies. To show you this content, we need your permission to use cookies. You can use the buttons below to amend your preferences to enablecookies or to allow those cookies just once. You can change your settings at any time via the Privacy Options Unfortunately we have been unable to verify if you have consented to Podcast cookies. To view this content you can use the button below to allow Podcast cookies for this session only. Enable Cookies Allow Cookies Once
:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker
Roadsigns will be put in place to discourage people from travelling to the country during the hot weather this weekend, he added.
He told Sky correspondent Dan Whitehead that he wished the differences between England and Wales's approaches to easing the lockdown had been "clearer from the outset", but said he does not think the UK government's methods have been "irresponsible".
Advertisement
Please use Chrome browser for a more accessible video player 3:00 The tiered system outlines when friends and family can be seen again and how business in the country may be asked to restart.
Mr Drakeford said: "Our message to our friends and colleagues in England is visit Wales, but do it later, now is not the time to do it."
People in England have been allowed to travel as far as they want for exercise since Wednesday, providing they do not cross into Scotland or Wales.
According to the first minister, Wales is still in the "black" zone of its new traffic light system, which means people should continue to stay at home as far as possible.
The traffic light colours do not have any dates attached to them, but could see more children whose parents are key workers return to school before the summer holidays.
Earlier he told Sky News pubs and restaurants in Wales "will not open anytime soon", but the "first cautious steps" will mean some minor changes.