cityam--2020-12-22--Making it in the City as a woman in 2020: a rising private equity star explains

City A.M. ‘ s Michiel Willems sat down with Sunaina Sinha Haldea , founder and CEO of Cebile Capital , a London-based placement agent and secondaries advisor in private equity and infrastructure .
The Harvard graduate is also an angel investor and serves as chair of the board of Barrecore , one of Europe ’ s largest luxury fitness boutiques , while she is a former chair of meal delivery giant Mindful Chef .
You are the founder of a minority and female-owned private equity advisory firm with the vast majority of employees being women .
How challenging is it @ @ @ @ @ @ @ City in 2020 ?
The City continues to evolve for female employees .
There have been considerable strides made to bring women into the industry at entry-levels , as an analyst or at associate level .
However , much more needs to be done to retain , support and promote women to senior levels of financial services organizations , especially into the C-suite .
Women need role models of how a path can be followed to the top .
These numbers are still paltry and no amount of lip service can substitute for @ @ @ @ @ @ @ more : City of London to spearhead taskforce to tackle lack of class diversity in finance Diversity and equality are increasingly a priority for City firms .
Do you feel most firms have a serious strategy in place or is it merely hollow talk ?
For example , look at differences in pay .
While most firms are very good at acquiring diverse talents at the junior levels , we find very few examples of diversity at the higher levels of the industry .
Today ’ s leadership has to explicitly identify junior @ @ @ @ @ @ @ mentor , support and promote them over the years and bring them up through the leadership ranks .
The rest is all lip service .
Read more : City sponsors initiative for more diversity in asset management You are also an investor in high-growth companies in the UK , which firms really stood out for you this year ?
And which industries ?
2020 has been all about technology , food and sustainability , healthcare and wellness businesses .
It ’ s been a revolutionary year for technology adoption across the UK and @ @ @ @ @ @ @ .
Companies and the fintech infrastructure behind businesses have evolved at an unprecedented pace this year .
Food and sustainability also remain a key theme for the world as climate change , farm-to-fork eating and mindfulness around waste become foremost in the consumer ’ s mind .
Market conditions for new companies , however , are super challenging at the moment .
A recession and Brexit just weeks away , how has this impacted the private equity space and deal making activity ?
Although we are already in a double dip recession , @ @ @ @ @ @ @ no signs of a slowdown .
Technology and healthcare have driven public comparables to record highs and the private market valuations have also followed suit .
Looking ahead at 2021 , what are your predictions for next year ?
The economy will have some normalization from the second quarter onwards .
We will see a V shaped recovery .
While the world gets vaccinated , we expect most of 2021 to still be a remote fundraising environment for private equity houses .
Conferences and face-to-face roadshows are expected to make a comeback in @ @ @ @ @ @ @ will that continue to impact private equity ?
The remote model of the private equity capital markets means that emerging managers and new managers raising first time funds will find it very difficult to get their fundraises completed .
Private equity funds will have more ways to exit a company than ever before , from direct listings , for venture-backed companies , to SPACs to single asset GP-led transactions .
The menu of options in 2021 is more than just the traditional IPO or sponsor and trade sale .

Making it in the City as a woman in 2020: a rising private equity star explains
Sunaina Sinha Haldea, CEO of City-based Cebile Capital, angel investor, chair of Barrecore and a former chairwoman of Mindful Chef
City A.M.‘s Michiel Willems sat down with Sunaina Sinha Haldea, founder and CEO of Cebile Capital, a London-based placement agent and secondaries advisor in private equity and infrastructure.
The Harvard graduate is also an angel investor and serves as chair of the board of Barrecore, one of Europe’s largest luxury fitness boutiques, while she is a former chair of meal delivery giant Mindful Chef.
You are the founder of a minority and female-owned private equity advisory firm with the vast majority of employees being women. How challenging is it for women to make it in the City in 2020?
The City continues to evolve for female employees. There have been considerable strides made to bring women into the industry at entry-levels, as an analyst or at associate level.
However, much more needs to be done to retain, support and promote women to senior levels of financial services organizations, especially into the C-suite. Women need role models of how a path can be followed to the top. These numbers are still paltry and no amount of lip service can substitute for female leadership in the industry.
Read more: City of London to spearhead taskforce to tackle lack of class diversity in finance
Diversity and equality are increasingly a priority for City firms. Do you feel most firms have a serious strategy in place or is it merely hollow talk? For example, look at differences in pay.
While most firms are very good at acquiring diverse talents at the junior levels, we find very few examples of diversity at the higher levels of the industry. Today’s leadership has to explicitly identify junior and mid-level talent that is diverse and mentor, support and promote them over the years and bring them up through the leadership ranks. The rest is all lip service.
Unless you are willing to make a strong commitment to ensuring that diverse employees will make up at least half of your identified ‘star talent’, you are never going to get to an endpoint of a team or About Us page that reflects the society in which we live today. Sunaina Sinha Haldea
Read more: City sponsors initiative for more diversity in asset management
You are also an investor in high-growth companies in the UK, which firms really stood out for you this year? And which industries?
2020 has been all about technology, food and sustainability, healthcare and wellness businesses. It’s been a revolutionary year for technology adoption across the UK and not just from a consumer behaviours perspective. Companies and the fintech infrastructure behind businesses have evolved at an unprecedented pace this year. Food and sustainability also remain a key theme for the world as climate change, farm-to-fork eating and mindfulness around waste become foremost in the consumer’s mind.
Market conditions for new companies, however, are super challenging at the moment. A recession and Brexit just weeks away, how has this impacted the private equity space and deal making activity?
Although we are already in a double dip recession, the public and private equity markets show no signs of a slowdown. Technology and healthcare have driven public comparables to record highs and the private market valuations have also followed suit.
M&A activity is back with a vengeance due to record amounts of dry powder sitting with financial sponsors that has a time-gated investment period and, therefore, must be put to work. Sunaina Sinha Haldea
Looking ahead at 2021, what are your predictions for next year?
The economy will have some normalization from the second quarter onwards. We will see a V shaped recovery. While the world gets vaccinated, we expect most of 2021 to still be a remote fundraising environment for private equity houses. Conferences and face-to-face roadshows are expected to make a comeback in the third or fourth quarter.
How will that continue to impact private equity?
The remote model of the private equity capital markets means that emerging managers and new managers raising first time funds will find it very difficult to get their fundraises completed. Private equity funds will have more ways to exit a company than ever before, from direct listings, for venture-backed companies, to SPACs to single asset GP-led transactions. The menu of options in 2021 is more than just the traditional IPO or sponsor and trade sale.


cityam--2020-12-22--Control or catastrophe? Farage, fortune, freedom and a £199 subscription

For the small price of £199 a year , promises Nigel Farage , you can “ take back control ” of your finances .
Gold , real estate trusts , even a crypto revolution – all are tickets to an independent financial future , all stamped with the Brexit Party founder ’ s seal of approval .
Or , at least , that ’ s the idea .
But the jury is out on whether Nigel Farage ’ s new financial endeavour is a path to taking back control , or a recipe for disaster that should see regulators intervene @ @ @ @ @ @ @ time from crypto firms and the FCA Earlier this month Farage began promoting ‘ Britain ’ s great wealth revival ’ , a culmination of what his free financial newsletter , Fortune & Freedom ( F & F ) , had been leading up to .
Farage has teamed up with a financial publisher to produce a paid-for subscription newsletter that discusses investing in the likes of REITs , gold and ‘ best of Britain ’ stocks – but the jury ’ s out on whether the product merits the price tag .
@ @ @ @ @ @ @ readers back £199 for the year .
In exchange they will have access to reports on investing in gold , REITs ( Real Estate Investment Trusts ) and stock picks , as well as a subscription to a newsletter containing Farage-approved investment tips .
Farage ’ s new newsletter promises a ‘ blueprint ’ to help individuals “ take back control ” of their finances .
But where does this blueprint come from ?
The ideas outlined are based on the opinions of Rob Marstrand , an editor at Southbank Investment Research , @ @ @ @ @ @ @ free newsletter , and the new paid-for newsletter .
Read more : Nigel Farage to relaunch Brexit Party as anti-lockdown Reform UK The tireless campaigner ’ s foray into finance has been criticised by those working in the sector .
Chartered financial planner Martin Bamford has made Youtube videos warning interested customers to be mindful of the risky and speculative investments touted by Farage and co .
Speaking to City A.M. , the financial planner suggested £199 was a hefty price tag for guidance on risky investment tips that could well see investors @ @ @ @ @ @ @ investors is freely available online , from sources without agenda , ” he said .
“ The money would be better spent on buying a few decent books about investing , educating yourself , and making your own decisions based on logic and not fear.
” Farage first stepped into personal finance a few months ago with Fortune & Freedom , ( F & F ) a daily newsletter published by Southbank Investment Research , which also publishes titles ‘ Crypto Profits Extreme ’ , ‘ New Drug Speculator ’ and ‘ Short @ @ @ @ @ @ @ few .
F & F , which now has around 50,000 subscribers , appears to cater to novice investors .
On its website is a report titled : ‘ How to take back control of your finances in 4 simple steps ’ , which contains basic budgeting guidance .
Away from budgeting , Farage ’ s F & F has pushed subscribers to “ take back control of your money.
” The UKIP founder makes multiple references to gold , and more recently urges subscribers to buy ‘ Crypto Revolution ’ , a @ @ @ @ @ @ @ Exponential Investor – another Southbank Investment Research publication .
Rather than targeting a more formal demographic of people , Farage appears to be targeting those who align with his political beliefs , regardless of their investment experience , age or wealth .
According to F & F ’ s mission page on its website , the newsletter is for those who do not trust the government , financial institutions or the mainstream media .
According to Chartered financial planner Bamford , the sort of investments being promoted in the F & F newsletter @ @ @ @ @ @ @ majority of retail investors ” , being that they are both “ high risk and speculative ” , and in the case of bitcoin and cryptocurrencies , “ they have no tangible value.
” When asked if Bamford would ever advise a client to invest in this way , he said : “ Not in a million years.
” Read more : A Crypto Carol : The Ghosts of Blockchain Although some of the investments being promoted by Nigel Farage are considered risky , and in some cases are barely regulated – even @ @ @ @ @ @ @ investors : “ if you invest in cryptoassets , you should be prepared to lose all your money ” – Farage and Southbank Investment Research are playing by the book .
Both newsletters are unregulated , and as such do not come under the remit of the Financial Conduct Authority .
Financial promotions , however , have an obligation to be “ fair , clear and not misleading ” , and while much of the content is sales-led and biased in favour of the chosen investment strategies , there are disclaimers on the @ @ @ @ @ @ @ the warnings go far enough .
Phil Young , managing partner at compliance firm Zero Support , described the rules as “ vague ” , particularly what it means for something to be ‘ fair ’ .
He also felt that Farage , because of his public persona and social following , would face higher scrutiny to ensure he was not positioning investments as appropriate , when it may not be the case .
“ [ When it comes to financial promotions ] there ’ s certain things that are obvious , there @ @ @ @ @ @ @ , and you have to think about who the audience is , ” said Young .
“ Farage needs to be mindful of who is going to be reading this , and if there are people reading it that shouldn ’ t be acting on what the recommendations are .
Even if it ’ s not misleading , in terms of fairness , is it offering balance ?
Does it indicate risk as well as reward ?
” The website echoes all that feels familiar to Farage , commanding readers to “ take @ @ @ @ @ @ @ feels notably anti-financial services .
One of Farage ’ s blogs states : “ The financial industry lulls you into believing that without them , you have no hope .
That in the hands of the establishment , it will be happily ever after… and for those who manage their own affairs , a nightmare of poverty and deprivation .
“ Project Fear exists in the financial world too .
We ’ re made to feel like only the professionals can understand the markets or have any success .
The reality is , @ @ @ @ @ @ @ short .
The best opportunities and ideas to really grow your wealth – smartly , over time – are usually shared with you too late .
And the threats you need to know about are completely absent from the mainstream financial media.
” Read more : FCA fines fall by half in 2020 as Covid takes hit on enforcement Holly MacKay , founder and CEO of Boring Money , a website that helps demystify finance for everyday consumers , agreed the world of investing needed to become more accessible , but argued Farage @ @ @ @ @ @ @ is true that the world of investment is crying out for change .
Fees are often inflated , things are pointlessly complicated and the advice gap remains a chasm , ” she said , “ however the world is full of people who have some Messiah-like complex about being able to spot the Next Big Thing .
“ The reality is that most people need help to guide them into some low-cost well-diversified portfolio , and reassurance to stick with it when things get choppy .
They need to use tax wrappers , @ @ @ @ @ @ @ life insurance , pay off pricey debt , write a will , maximise contributions to workplace pensions – and avoid spivs pushing crypto , single stocks and timber funds .
“ I ’ d suggest that the principal intended recipient of any fortune from this venture is Mr Farage – not the person in the street.
” City A.M. has made multiple attempts to contact Fortune & Freedom .

Control or catastrophe? Farage, fortune, freedom and a £199 subscription
Farage ventured into personal finance this year, and now was subscribers to cough up £199 per yeah for a paid-for subscription to a newsletter.
For the small price of £199 a year, promises Nigel Farage, you can “take back control” of your finances.
Gold, real estate trusts, even a crypto revolution – all are tickets to an independent financial future, all stamped with the Brexit Party founder’s seal of approval.
Or, at least, that’s the idea. But the jury is out on whether Nigel Farage’s new financial endeavour is a path to taking back control, or a recipe for disaster that should see regulators intervene.
Fortune & Freedom
Earlier this month Farage began promoting ‘Britain’s great wealth revival’, a culmination of what his free financial newsletter, Fortune & Freedom (F&F), had been leading up to.
Farage has teamed up with a financial publisher to produce a paid-for subscription newsletter that discusses investing in the likes of REITs, gold and ‘best of Britain’ stocks – but the jury’s out on whether the product merits the price tag.
The new, paid-for subscription will set readers back £199 for the year.
In exchange they will have access to reports on investing in gold, REITs (Real Estate Investment Trusts) and stock picks, as well as a subscription to a newsletter containing Farage-approved investment tips.
Farage’s new newsletter promises a ‘blueprint’ to help individuals “take back control” of their finances. But where does this blueprint come from?
The ideas outlined are based on the opinions of Rob Marstrand, an editor at Southbank Investment Research, the publisher behind Farage’s first free newsletter, and the new paid-for newsletter.
The tireless campaigner’s foray into finance has been criticised by those working in the sector.
Chartered financial planner Martin Bamford has made Youtube videos warning interested customers to be mindful of the risky and speculative investments touted by Farage and co.
Speaking to City A.M., the financial planner suggested £199 was a hefty price tag for guidance on risky investment tips that could well see investors lose money.
“Information for DIY investors is freely available online, from sources without agenda,” he said.
“The money would be better spent on buying a few decent books about investing, educating yourself, and making your own decisions based on logic and not fear.”
Unsuitable for the ‘vast majority’
Farage first stepped into personal finance a few months ago with Fortune & Freedom, (F&F) a daily newsletter published by Southbank Investment Research, which also publishes titles ‘Crypto Profits Extreme’, ‘New Drug Speculator’ and ‘Short the World’, to name a few.
F&F, which now has around 50,000 subscribers, appears to cater to novice investors. On its website is a report titled: ‘How to take back control of your finances in 4 simple steps’, which contains basic budgeting guidance.
Away from budgeting, Farage’s F&F has pushed subscribers to “take back control of your money.”
The UKIP founder makes multiple references to gold, and more recently urges subscribers to buy ‘Crypto Revolution’, a book by Sam Volkering, editor of Exponential Investor – another Southbank Investment Research publication.
Rather than targeting a more formal demographic of people, Farage appears to be targeting those who align with his political beliefs, regardless of their investment experience, age or wealth.
According to F&F’s mission page on its website, the newsletter is for those who do not trust the government, financial institutions or the mainstream media.
According to Chartered financial planner Bamford, the sort of investments being promoted in the F&F newsletter are “not suitable for the vast majority of retail investors”, being that they are both “high risk and speculative”, and in the case of bitcoin and cryptocurrencies, “they have no tangible value.”
When asked if Bamford would ever advise a client to invest in this way, he said: “Not in a million years.”
Although some of the investments being promoted by Nigel Farage are considered risky, and in some cases are barely regulated – even the FCA’s website warns crypto investors: “if you invest in cryptoassets, you should be prepared to lose all your money” – Farage and Southbank Investment Research are playing by the book.
Both newsletters are unregulated, and as such do not come under the remit of the Financial Conduct Authority. Financial promotions, however, have an obligation to be “fair, clear and not misleading”, and while much of the content is sales-led and biased in favour of the chosen investment strategies, there are disclaimers on the site, although it is unclear whether the warnings go far enough.
Phil Young, managing partner at compliance firm Zero Support, described the rules as “vague”, particularly what it means for something to be ‘fair’. He also felt that Farage, because of his public persona and social following, would face higher scrutiny to ensure he was not positioning investments as appropriate, when it may not be the case.
“[When it comes to financial promotions] there’s certain things that are obvious, there needs to be balance, for example, and you have to think about who the audience is,” said Young.
“Farage needs to be mindful of who is going to be reading this, and if there are people reading it that shouldn’t be acting on what the recommendations are. Even if it’s not misleading, in terms of fairness, is it offering balance? Does it indicate risk as well as reward?”
Fortune for Farage
The website echoes all that feels familiar to Farage, commanding readers to “take back control of your money” and feels notably anti-financial services.
One of Farage’s blogs states: “The financial industry lulls you into believing that without them, you have no hope. That in the hands of the establishment, it will be happily ever after… and for those who manage their own affairs, a nightmare of poverty and deprivation.
“Project Fear exists in the financial world too. We’re made to feel like only the professionals can understand the markets or have any success. The reality is, your private pension will likely leave you short. The best opportunities and ideas to really grow your wealth – smartly, over time – are usually shared with you too late. And the threats you need to know about are completely absent from the mainstream financial media.”
Holly MacKay, founder and CEO of Boring Money, a website that helps demystify finance for everyday consumers, agreed the world of investing needed to become more accessible, but argued Farage was not helping matters.
“It is true that the world of investment is crying out for change. Fees are often inflated, things are pointlessly complicated and the advice gap remains a chasm,” she said, “however the world is full of people who have some Messiah-like complex about being able to spot the Next Big Thing.
“The reality is that most people need help to guide them into some low-cost well-diversified portfolio, and reassurance to stick with it when things get choppy. They need to use tax wrappers, build up a cash buffer, consider life insurance, pay off pricey debt, write a will, maximise contributions to workplace pensions – and avoid spivs pushing crypto, single stocks and timber funds.
“I’d suggest that the principal intended recipient of any fortune from this venture is Mr Farage – not the person in the street.”
City A.M. has made multiple attempts to contact Fortune & Freedom.


cityam--2020-12-22--Why now is the time to stand up for British farming

The farming sector has been challenged .
Huge surges in demand at the peak of the pandemic for products such as minced beef ( to account for the rise in batch cooking ) have been matched by extremely low demand for more premium cuts usually reserved by restaurants , impacting the value farmers received for their livestock .
Read more : We do not need to compromise the economy to fix the environment While supermarkets have to some extent benefited from remaining open throughout the crisis , the high level of activity food retailers experienced at the beginning created considerable @ @ @ @ @ @ @ staff working on our shop floors .
The way people shopped during the peak of the pandemic also created significant supply and demand challenges — something shoppers will have noticed when seeing gaps on the shelves .
In the resulting disruption , some retailers have been forced to source from overseas as a temporary measure .
In the ongoing discussion of future trade deals , some commentators have stated that British shoppers won ’ t mind this continuing , that they should be given a choice and that many would accept imports that @ @ @ @ @ @ @ it meant greater affordability .
Putting this theory to the test , we asked 2,000 members of the British public to give us their view .
We found that , whatever some pundits might think , three quarters said they wanted to see UK supermarkets source more British produce .
The pandemic has only accelerated this trend .
Indeed , in our new Waitrose Food & Drink Report , we reveal that searches for British meat and produce are up by 160 per cent year on year , with British beef searches up @ @ @ @ @ @ @ up by 370 per cent and British cheese searches a staggering 20 times higher than the previous year .
The appetite among residents of the UK for homegrown , higher welfare , British produce is clear .
And yet , according to the British Meat Processors Association ( BMPA ) , beef still makes up nearly half of all meat imports to the UK , with pork accounting for just over a third and lamb around 20 per cent .
Clearly , as an industry , there is still work to be done @ @ @ @ @ @ @ to be .
In terms of what Britain ’ s food and farming sector brings to this country , the contribution is vast .
Not only does it provide us with all the high quality , safe and affordable food our nation needs , it is responsible for creating over four million jobs ( that ’ s 14 per cent of the UK workforce ) , produces a substantial amount of renewable energy , and helps protect natural habitats to maintain our beautiful countrysides .
As for its financial contribution , it is @ @ @ @ @ @ @ providing more than £120bn to our economy each year , with some 149,000 farm businesses in operation today — more than the number of businesses involved in the motor trade , education , finance and insurance .
There is little doubt just how important the British farming sector is to our country and its future .
We should be proud that there are so many farming businesses in operation in the UK , many of which are family run and have existed for generations .
That , combined with the clear demand from @ @ @ @ @ @ @ locally grown seasonal British produce , means there will be little excuse in the future to deviate from sourcing from home .
Read more : Government seeks site for world ’ s first nuclear fusion plant

Why now is the time to stand up for British farming
The appetite among residents of the UK is for homegrown, higher welfare, British produce
The farming sector has been challenged. Huge surges in demand at the peak of the pandemic for products such as minced beef (to account for the rise in batch cooking) have been matched by extremely low demand for more premium cuts usually reserved by restaurants, impacting the value farmers received for their livestock.
Read more: We do not need to compromise the economy to fix the environment
While supermarkets have to some extent benefited from remaining open throughout the crisis, the high level of activity food retailers experienced at the beginning created considerable pressures, particularly for the brave frontline staff working on our shop floors. The way people shopped during the peak of the pandemic also created significant supply and demand challenges — something shoppers will have noticed when seeing gaps on the shelves.
In the resulting disruption, some retailers have been forced to source from overseas as a temporary measure.
In the ongoing discussion of future trade deals, some commentators have stated that British shoppers won’t mind this continuing, that they should be given a choice and that many would accept imports that were farmed to lower food standards if it meant greater affordability.
Putting this theory to the test, we asked 2,000 members of the British public to give us their view. We found that, whatever some pundits might think, three quarters said they wanted to see UK supermarkets source more British produce.
The pandemic has only accelerated this trend. Indeed, in our new Waitrose Food & Drink Report, we reveal that searches for British meat and produce are up by 160 per cent year on year, with British beef searches up by 450 per cent, free range up by 370 per cent and British cheese searches a staggering 20 times higher than the previous year.
The appetite among residents of the UK for homegrown, higher welfare, British produce is clear.
And yet, according to the British Meat Processors Association (BMPA), beef still makes up nearly half of all meat imports to the UK, with pork accounting for just over a third and lamb around 20 per cent. Clearly, as an industry, there is still work to be done to get where the public wants retailers to be.
In terms of what Britain’s food and farming sector brings to this country, the contribution is vast. Not only does it provide us with all the high quality, safe and affordable food our nation needs, it is responsible for creating over four million jobs (that’s 14 per cent of the UK workforce), produces a substantial amount of renewable energy, and helps protect natural habitats to maintain our beautiful countrysides.
As for its financial contribution, it is estimated that British farming is responsible for providing more than £120bn to our economy each year, with some 149,000 farm businesses in operation today — more than the number of businesses involved in the motor trade, education, finance and insurance.
There is little doubt just how important the British farming sector is to our country and its future. We should be proud that there are so many farming businesses in operation in the UK, many of which are family run and have existed for generations. That, combined with the clear demand from the public for food retailers to source locally grown seasonal British produce, means there will be little excuse in the future to deviate from sourcing from home.
Read more: Government seeks site for world’s first nuclear fusion plant
Main image credit: Getty


cityam--2020-12-22--Exclusive: Banks failing to prioritise the climate will lose customers, survey shows

Customers are expecting more from their banks when it comes to climate change and could lose out to more green competitors if they fail to prioritise the environment .
Some 71 per cent of UK banking customers are more likely to choose a bank with a positive social and environmental impact , according to new research from Deloitte .
Read more : Global emissions cuts needed on ‘ unprecedented scale ’ to reach Paris Climate target The survey of 1,000 customers reveals that more than three fifths would leave their bank if it was linked to any social or environmental @ @ @ @ @ @ @ best offer .
ESG has been a buzzword for some time but the growing threat of climate change , paired with the Black Lives Matter movement over the summer has focused minds .
“ Covid-19 has highlighted how non-financial risks , such as climate change , are capable of generating significant non-financial risks , ” said Katherine Lampen , UK sustainability and climate change lead at Deloitte .
As in all sectors the banking industry has faced increased pressure from investors , regulators and customers to step up and prioritise the climate .
@ @ @ @ @ @ @ recent months .
Earlier this month Deutsche Bank announced plans to join a small number of financial institutions that link management pay to ESG criteria .
Banks have long been accused of contributing to the environmental crisis through fossil fuel financing.. Read more : Boohoo factory saga ‘ one of the worst ESG scandals ’ in UK history , Leicester MP says Deloitte ’ s research found that almost half of banking customers would move their money if they found out the bank was financing fossil fuels .
Additionally climate action – 25 @ @ @ @ @ @ @ our planet – 17 per cent – were noted as the most common social and environmental reasons why customers would consider leaving their bank .
“ Issues such as climate change and sustainability are playing a more prominent role in customers ’ behaviour , ” Richard Hammell , UK head of financial services at Deloitte , said .
“ Now more than ever , they have access to information about the impact that businesses have on society and the environment , and they ’ re using that to select the financial products they @ @ @

Exclusive: Banks failing to prioritise the climate will lose customers, survey shows
Tackling greenwashing means asking the right questions first, writes Lee Shankland-Gort
Customers are expecting more from their banks when it comes to climate change and could lose out to more green competitors if they fail to prioritise the environment.
Some 71 per cent of UK banking customers are more likely to choose a bank with a positive social and environmental impact, according to new research from Deloitte.
The survey of 1,000 customers reveals that more than three fifths would leave their bank if it was linked to any social or environmental harm, even if it had the best offer.
ESG has been a buzzword for some time but the growing threat of climate change, paired with the Black Lives Matter movement over the summer has focused minds.
“Covid-19 has highlighted how non-financial risks, such as climate change, are capable of generating significant non-financial risks,” said Katherine Lampen, UK sustainability and climate change lead at Deloitte.
As in all sectors the banking industry has faced increased pressure from investors, regulators and customers to step up and prioritise the climate.
There have been some significant moves in recent months. Earlier this month Deutsche Bank announced plans to join a small number of financial institutions that link management pay to ESG criteria.
Banks have long been accused of contributing to the environmental crisis through fossil fuel financing..
Deloitte’s research found that almost half of banking customers would move their money if they found out the bank was financing fossil fuels. Additionally climate action – 25 per cent – and the life of our planet – 17 per cent – were noted as the most common social and environmental reasons why customers would consider leaving their bank.
“Issues such as climate change and sustainability are playing a more prominent role in customers’ behaviour,” Richard Hammell, UK head of financial services at Deloitte, said. “Now more than ever, they have access to information about the impact that businesses have on society and the environment, and they’re using that to select the financial products they want.”


cityam--2020-12-22--Risk on or risk off?

Risk on or risk off?

As expected , risk off tone dominated the price action as market participants reacted to the news of an aggressive spread of a new strain of coronavirus out of the UK , as well as further tensions between the EU and the UK ahead of the Brexit deadline .
As a result , GBP was hit hard across the board at the open , which when combined with EUR weakness that stemmed from uncertain macro impact , led to USD strength .
This strength in turn caused market participants to unwind some of the long risk assets positioning and the @ @ @ @ @ @ @ a particularly violent compression .
All in all , this meant that it was not uncommon to see some assets trade with losses of close to 10 % .
To the downside we go… Interestingly , large and small cap indices traded more or less in lockstep to the downside and yet when the recovery ensued in the final hours of trade , it was the small caps that actually outperformed .
This is usually a positive sign and indicates a healthy alpha seeking play by market participants .
The problem with crowded @ @ @ @ @ @ @ place and it always does , very few are prepared to ride the subsequent volatility spike .
Good thing that crypto natives are well accustomed to such formidable spikes in volatility , which is in part exacerbated by the nature of Bitcoin margined futures contracts .
Expect an unwind of momentum trades be met with plenty of dip buying from retail and the more opportunistic market participants , even if market timing is notoriously challenging .
Crypto AM : In conversation with James Bowater Crypto AM : Market View in association with Ziglu @ @ @ @ @ @ @ with with Zumo Crypto AM : Talking Legal in association with INX Crypto AM shines its Spotlight on CEX.IO

Crypto AM Daily in association with BEQUANT

Risk on or risk off?
The next stage
As expected, risk off tone dominated the price action as market participants reacted to the news of an aggressive spread of a new strain of coronavirus out of the UK, as well as further tensions between the EU and the UK ahead of the Brexit deadline.
As a result, GBP was hit hard across the board at the open, which when combined with EUR weakness that stemmed from uncertain macro impact, led to USD strength. This strength in turn caused market participants to unwind some of the long risk assets positioning and the crowded nature of digital assets resulted in a particularly violent compression.
All in all, this meant that it was not uncommon to see some assets trade with losses of close to 10%.
In the Markets
To the downside we go…
Interestingly, large and small cap indices traded more or less in lockstep to the downside and yet when the recovery ensued in the final hours of trade, it was the small caps that actually outperformed. This is usually a positive sign and indicates a healthy alpha seeking play by market participants.
The problem with crowded trades is that when position unwind takes place and it always does, very few are prepared to ride the subsequent volatility spike. Good thing that crypto natives are well accustomed to such formidable spikes in volatility, which is in part exacerbated by the nature of Bitcoin margined futures contracts.
Expect an unwind of momentum trades be met with plenty of dip buying from retail and the more opportunistic market participants, even if market timing is notoriously challenging.
Crypto AM: Longer Reads
Crypto AM: In conversation with James Bowater
https://cityam.go-vip.net/can-tokenisation-save-the-rainforest-and-cure-climate-cancer/
Crypto AM: Market View in association with Ziglu
https://cityam.go-vip.net/bitcoin-price-hits-new-all-time-high-above-24000-as-institutions-drive-up-demand/
Crypto AM: Technically Speaking in association with with Zumo
https://cityam.go-vip.net/bitcoin-2021-outlook-and-challenges-in-charts/
Crypto AM: Talking Legal in association with INX
https://cityam.go-vip.net/lending-against-crypto-a-10bn-loan-market-emerges-as-2020-comes-to-a-close/
Crypto AM: Focusing on Regulation
https://cityam.go-vip.net/temporary-register-buys-time-from-crypto-firms-and-the-fca/
Crypto AM: Inside Blockchain with Troy Norcross
https://cityam.go-vip.net/a-crypto-carol-the-ghosts-of-blockchain/
Crypto AM: A Trader’s View with TMG
https://cityam.go-vip.net/bitcoin-regulation-stalls-rally-is-now-a-good-time-to-buy-bitcoin/
Crypto AM: Definitively DeFi
https://cityam.go-vip.net/yfi-unite-and-conquer/
Crypto AM: Founders Series
https://cityam.go-vip.net/why-the-pandemic-and-the-coming-economic-downturn-will-accelerate-bitcoins-adoption/
Crypto AM: Industry Voices
https://cityam.go-vip.net/why-knowledge-sharing-is-key-to-defis-long-term-security/
Crypto AM shines its Spotlight on CEX.IO


cityam--2020-12-22--UK firms' profits collapse by a fifth in November as lockdown bites

UK businesses saw profits fall by an average of 20 per cent year-on-year in November , according to a respected business tracker .
The Opinium/Cebr tracker tallies with other indicators suggesting that the economic recovery has at best stalled and perhaps even reversed in the last quarter of the year .
Read more : UK borrowing figures are third highest month on record Growth in Q3 across the UK was a record 16 per cent but the return of restrictions at both a local and national level has choked off any resurgence .
The move to Tier 3 restrictions in @ @ @ @ @ @ @ December and then the effective lockdown of Tier 4 areas will also take a toll , experts think .
The Opinium poll suggests companies will pull in £5 this year for every £6 they received last year .
Pablo Shah , Managing Economist at Cebr said “ the results… show that the lockdown in November eroded some of the economic gains the UK recorded during the summer months.
” The only bright spot was an uptick in confidence for 2021 , with the potential deployment of a vaccine boosting expectations for the year @ @ @ @ @ @ @ prior to the announcement of the new ‘ mutant ’ strain of Covid-19 .
Read more : UK growth hits 16 per cent in Q3 but recovery stalls in October

UK firms’ profits collapse by a fifth in November as lockdown bites
(Getty images)
UK businesses saw profits fall by an average of 20 per cent year-on-year in November, according to a respected business tracker.
The Opinium/Cebr tracker tallies with other indicators suggesting that the economic recovery has at best stalled and perhaps even reversed in the last quarter of the year.
Read more: UK borrowing figures are third highest month on record
Growth in Q3 across the UK was a record 16 per cent but the return of restrictions at both a local and national level has choked off any resurgence.
The move to Tier 3 restrictions in much of the country for most of December and then the effective lockdown of Tier 4 areas will also take a toll, experts think.
The Opinium poll suggests companies will pull in £5 this year for every £6 they received last year.
Pablo Shah, Managing Economist at Cebr said “the results… show that the lockdown in November eroded some of the economic gains the UK recorded during the summer months.”
The only bright spot was an uptick in confidence for 2021, with the potential deployment of a vaccine boosting expectations for the year to come.
The survey was undertaken prior to the announcement of the new ‘mutant’ strain of Covid-19.
Read more: UK growth hits 16 per cent in Q3 but recovery stalls in October


cityam--2020-12-22--FTSE 100 bounces back as investors absorb impact of mutant strain

The FTSE 100 inched into the green on Tuesday even as the prospect of another national lockdown loomed amid concerns of a new strain of coronavirus .
London ’ s blue-chip index opened 0.43 per cent lower to 6,388 points before bouncing back to trade up 0.35 per cent by 9.30am .
The more domestically focused FTSE 250 is up 1.1 per cent .
Read more : Patel refuses to rule out further Tier 4 restrictions as mutant virus spreads It came after a manic Monday in which investors were spooked by the imposition of fresh lockdown restrictions in London @ @ @ @ @ @ @ easily transmissible strain of the virus .
“ Yesterday ’ s declines were driven by investors getting a cold shower from Covid-related setbacks .
Optimism had been running high and so the sudden escalation of the new virus variant and subsequent movement and business trading restrictions caught investors off guard , ” said Russ Mould , investment director at AJ Bell .
In a press conference on Monday evening , the government ’ s chief scientific adviser , Sir Patrick Vallance , warned more areas could be placed under Tier 4 restrictions .
@ @ @ @ @ @ @ perspective , the new variant of coronavirus is likely to cause more damage to the global economy , ” said Naeem Aslam , chief market analyst at Ava Trade .
“ This also means that the government officials and monetary policy members need to reload their guns as we could be in for a rough year.
” Read more : Breakthrough at Dover on the cards today as politicians work to ease blockade This morning the home secretary refused to rule out another lockdown in the new year if the virus continued to @ @ @ @ @ @ @ Priti Patel said : “ If new strains appear , and this virus has been mutating in many ways already , then of course all measures are under review .
“ If the virus continues to spread then we will take stronger measures… but it ’ s not for me to preempt any change.
” Optimism was mirrored across Europe with Germany ’ s Dax opening 1.33 per cent higher .
France ’ s Cac followed suit , trading up 1.3 per cent .
“ The new variant of coronavirus , if there @ @ @ @ @ @ @ ” Aslam added .
Read more : Pound plummets as countries ban UK travel and Brexit talks falter

FTSE 100 bounces back as investors absorb impact of mutant strain
The capital’s premier index added 0.1 per cent to close at 7,879.52 points, while the domestically-focused mid-cap FTSE 250 index, which is more responsive to sentiment toward the UK economy, climbed 0.23 per cent to 19,286.90 points
The FTSE 100 inched into the green on Tuesday even as the prospect of another national lockdown loomed amid concerns of a new strain of coronavirus.
London’s blue-chip index opened 0.43 per cent lower to 6,388 points before bouncing back to trade up 0.35 per cent by 9.30am.
The more domestically focused FTSE 250 is up 1.1 per cent.
It came after a manic Monday in which investors were spooked by the imposition of fresh lockdown restrictions in London and the South East amid a new easily transmissible strain of the virus.
“Yesterday’s declines were driven by investors getting a cold shower from Covid-related setbacks. Optimism had been running high and so the sudden escalation of the new virus variant and subsequent movement and business trading restrictions caught investors off guard,” said Russ Mould, investment director at AJ Bell.
In a press conference on Monday evening, the government’s chief scientific adviser, Sir Patrick Vallance, warned more areas could be placed under Tier 4 restrictions.
“From a consumer and investors sentiment perspective, the new variant of coronavirus is likely to cause more damage to the global economy,” said Naeem Aslam, chief market analyst at Ava Trade. “This also means that the government officials and monetary policy members need to reload their guns as we could be in for a rough year.”
This morning the home secretary refused to rule out another lockdown in the new year if the virus continued to spread.
Speaking on Sky News, Priti Patel said: “If new strains appear, and this virus has been mutating in many ways already, then of course all measures are under review.
“If the virus continues to spread then we will take stronger measures… but it’s not for me to preempt any change.”
Optimism was mirrored across Europe with Germany’s Dax opening 1.33 per cent higher. France’s Cac followed suit, trading up 1.3 per cent.
“The new variant of coronavirus, if there is one, has overshadowed everything,” Aslam added.


cityam--2020-12-23--Up the chain: Boris and Ursula try to seal a deal before Christmas

PM Boris Johnson and European Commission President Ursula von der Leyen are said to be in “ close contact ” in a last-ditch bid to secure a post-Brexit trade deal .
Talks on the future relationship between the UK and the EU have now dragged on for four and a half years .
Read more : One final push but fishing still an obstacle to trade accord The transition period ends in eight days , at which point the UK will leave the Customs Union and the Single Market .
Talks are expected to pause for Christmas on Thursday , @ @ @ @ @ @ @ .
Michel Barnier has told members of the European Parliament that he has taken his offer on fishing as far as he can go .
Ms. von der Leyen and Johnson must come to a compromise agreement on how much the EU will pay for its fishing catch in UK waters .
The current disagreement comes down to a matter of a few hundred million euros .
Trade between the UK and the EU totalled £668bn in 2019 .
Read more : City analysts wait for a deal that makes too much sense @ @ @ @ @ @ @ expect a deal to be struck .
David Buik said it makes “ too much sense not to do it .
”

Up the chain: Boris and Ursula try to seal a deal before Christmas
(Photo by Aaron Chown – WPA Pool/Getty Images)
PM Boris Johnson and European Commission President Ursula von der Leyen are said to be in “close contact” in a last-ditch bid to secure a post-Brexit trade deal.
Talks on the future relationship between the UK and the EU have now dragged on for four and a half years.
Read more: One final push but fishing still an obstacle to trade accord
The transition period ends in eight days, at which point the UK will leave the Customs Union and the Single Market.
Talks are expected to pause for Christmas on Thursday, with a restart date not yet clear.
Michel Barnier has told members of the European Parliament that he has taken his offer on fishing as far as he can go.
Ms. von der Leyen and Johnson must come to a compromise agreement on how much the EU will pay for its fishing catch in UK waters.
The current disagreement comes down to a matter of a few hundred million euros.
Trade between the UK and the EU totalled £668bn in 2019.
Read more: City analysts wait for a deal that makes too much sense not to do
City figures continue to expect a deal to be struck.
David Buik said it makes “too much sense not to do it.”


cityam--2020-12-23--Individuals rush to sell assets as capital gains tax bill rockets to £10.1bn

The UK ’ s capital gains tax ( CGT ) bill has hit £10.1bn , up more than fourfold from £2.5bn a decade earlier , prompting people to sell their assets .
Despite the increase of nearly £7.5bn in a decade , more CGT could be demanded from the taxpayer .
Read more : Exclusive : Capital gains tax on French properties to soar for UK residents post-Brexit The Office for Tax Simplification recently recommended the Chancellor increase CGT rates in line with rates of income tax , as well as making inherited assets subject to both CGT and inheritance @ @ @ @ @ @ @ have led more individuals to sell assets that might attract even bigger CGT bills in the future , such as buy to let properties , according to financial adviser Salisbury House Wealth .
It has also been reported entrepreneurs have accelerated sales of businesses in recent weeks in order to avoid any increase in CGT .
Read more : Pay no attention to the left-wing brigade , a Covid wealth tax would be a disaster Tim Holmes , managing director at Salisbury House Wealth , said : “ It ’ s understandable that @ @ @ @ @ @ @ but if they rush , it could cost them much more than necessary in tax .
“ There are many other options that might make more financial sense than just selling and paying the tax this year .
‘ Rolling over ’ gains into an EIS investment and making sure you buy an asset inside a pension wrapper are both quite simple steps that may work well for some .
“ It ’ s also vital to make sure you use as much of your tax-free allowance on capital gains as possible – @ @ @ @ @ @ @ can.
” Londoners pay nearly 30 per cent of the UK ’ s capital gains tax , with taxpayers in Kensington and Chelsea forking out the most .

Individuals rush to sell assets as capital gains tax bill rockets to £10.1bn
Blackstone could bid higher for the property developer if another company makes an offer.
The UK’s capital gains tax (CGT) bill has hit £10.1bn, up more than fourfold from £2.5bn a decade earlier, prompting people to sell their assets.
Despite the increase of nearly £7.5bn in a decade, more CGT could be demanded from the taxpayer.
The Office for Tax Simplification recently recommended the Chancellor increase CGT rates in line with rates of income tax, as well as making inherited assets subject to both CGT and inheritance tax.
Potential changes ahead to CGT have led more individuals to sell assets that might attract even bigger CGT bills in the future, such as buy to let properties, according to financial adviser Salisbury House Wealth.
It has also been reported entrepreneurs have accelerated sales of businesses in recent weeks in order to avoid any increase in CGT.
Tim Holmes, managing director at Salisbury House Wealth, said: “It’s understandable that people are worried about CGT rates rising but if they rush, it could cost them much more than necessary in tax.
“There are many other options that might make more financial sense than just selling and paying the tax this year. ‘Rolling over’ gains into an EIS investment and making sure you buy an asset inside a pension wrapper are both quite simple steps that may work well for some.
“It’s also vital to make sure you use as much of your tax-free allowance on capital gains as possible – spread sales over multiple years if you can.”
Londoners pay nearly 30 per cent of the UK’s capital gains tax, with taxpayers in Kensington and Chelsea forking out the most.


cityam--2020-12-23--Beringea: VCs will regret overpaying during the pandemic

2020 is on track for a record year of VC investment but after a slow start followed by an avalanche of deals in September VCs should be in self-reflection mode .
City A.M. spoke to the refreshingly honest Karen McCormick , chief investment officer of Beringea about the lessons learned from the pandemic and where VCs went wrong .
Read more : Ada Ventures closes first fund for overlooked founders at $ 50m Beringea primarily invests in and around Series A and McCormick affectionately describes the firm as “ total dinosaurs in some ways ” given they have been around @ @ @ @ @ @ @ well be ancient in VC terms but it ’ s investment strategy is far from lagging behind .
It has had an impressive year , investing in everything from esports to ESG firms , but Beringea was not immune to the impact of the pandemic .
“ We did a slew of deals in Q1 … a lot of the diligence was done before we locked down… But we had a bit of a Covid shock in Q2 and we were all wringing our hands and pulling our hair out , ” McCormick @ @ @ @ @ @ @ and life came back into the market competition was rife .
“ Most companies in Q2 and at the beginning of Q3 just didn ’ t raise .
They either managed to trade through or they raised from the existing investors , ” McCormick recalls .
The companies that were raising were generally those that had done remarkably well either through Covid tailwinds or had latched onto a growing trend .
“ At the same time , none of the money dried up… There was probably more money but almost no deals .
@ @ @ @ @ @ @ 10 deals for Q2 and Q3 which meant the prices built up.
” This meant that the 10 or so companies that were well funded in this period were done at astronomical valuations .
It speaks to an underlying investment trend .
The latest Atomico report into European tech showed the size of seed rounds has increased significantly across the last few years , rising from $ 0.7m in 2016 to $ 1.2m in 2020 .
As well as the pandemic there is an opportunity for startups to grow faster internationally.
“ Companies @ @ @ @ @ @ @ could even five years ago so there is a genuine reason to write bigger checks for companies.
” VCs will regret overpaying for certain firms With the benefit of hindsight McCormick looks back on where the industry as a whole went wrong amid the pandemic .
“ Most of us thought in March things were going to be a car crash… a lot of us scaled back the portfolio companies .
In reality , we probably should have done the opposite , because what we didn ’ t realise there was going to @ @ @ @ @ @ @ certain companies ] , ” she says .
And following on from her assessment of the fierce competition McCormick predicts “ we might regret as an industry overpaying for Covid tailwind companies ” .
“ We don ’ t know how to gauge whether the gains are going to dissipate .
Are we still all going to work from home two years from now ?
Will there be a grocery boom still ?
And the meal kit boom ?
It ’ s not all going to stay and we don ’ t really @ @ @ @ @ @ @ to stick .
”

Beringea: VCs will regret overpaying during the pandemic
Beringea’s chief investment officer Karen McCormick talks to City A.M. about where VCs went wrong this year.
2020 is on track for a record year of VC investment but after a slow start followed by an avalanche of deals in September VCs should be in self-reflection mode.
City A.M. spoke to the refreshingly honest Karen McCormick, chief investment officer of Beringea about the lessons learned from the pandemic and where VCs went wrong.
Beringea primarily invests in and around Series A and McCormick affectionately describes the firm as “total dinosaurs in some ways” given they have been around for 30 years.
The firm may well be ancient in VC terms but it’s investment strategy is far from lagging behind.
It has had an impressive year, investing in everything from esports to ESG firms, but Beringea was not immune to the impact of the pandemic.
“We did a slew of deals in Q1 … a lot of the diligence was done before we locked down… But we had a bit of a Covid shock in Q2 and we were all wringing our hands and pulling our hair out,” McCormick says.
VCs fight tough
Once restrictions started to ease and life came back into the market competition was rife.
“Most companies in Q2 and at the beginning of Q3 just didn’t raise. They either managed to trade through or they raised from the existing investors,” McCormick recalls. The companies that were raising were generally those that had done remarkably well either through Covid tailwinds or had latched onto a growing trend.
“At the same time, none of the money dried up… There was probably more money but almost no deals. We were all looking at the same 10 deals for Q2 and Q3 which meant the prices built up.”
This meant that the 10 or so companies that were well funded in this period were done at astronomical valuations.
It speaks to an underlying investment trend. The latest Atomico report into European tech showed the size of seed rounds has increased significantly across the last few years, rising from $0.7m in 2016 to $1.2m in 2020.
As well as the pandemic there is an opportunity for startups to grow faster internationally.“Companies can go international much faster than they could even five years ago so there is a genuine reason to write bigger checks for companies.”
VCs will regret overpaying for certain firms
With the benefit of hindsight McCormick looks back on where the industry as a whole went wrong amid the pandemic.
“Most of us thought in March things were going to be a car crash… a lot of us scaled back the portfolio companies. In reality, we probably should have done the opposite, because what we didn’t realise there was going to be a massive Covid boom [for certain companies],” she says.
And following on from her assessment of the fierce competition McCormick predicts “we might regret as an industry overpaying for Covid tailwind companies”.
“We don’t know how to gauge whether the gains are going to dissipate. Are we still all going to work from home two years from now? Will there be a grocery boom still? And the meal kit boom? It’s not all going to stay and we don’t really know how much of it is going to stick.”


cityam--2020-12-23--Google CEO criticises antitrust regulation

Google chief Sundar Pichai has warned that “ regulation can get it wrong ” as his firm is increasingly targeted by antitrust moves .
Last week , the European Commission set out new regulation to curb the power of big tech .
The Digital Services Act hopes to increase transparency and competition for tech firms .
The legislation will force firms , such as Google , to publish the algorithms used for rankings , as well as to police their own content .
Big firms could be fined between six per cent and 10 per cent of global annual turnover @ @ @ @ @ @ @ more : Could bitcoin top $ 100,000 this year ?
In the interview with the FT , Pichai gave a guarded welcome to the regulation .
He said : “ I think it ’ s an important regulation to think through and get right.
” However , he warns that “ Governments need to think through these important principles .
Sometimes we can design very open ecosystems , they can have security implications.
” He added that the failure of GDPR to break down the monopoly of big tech “ shows that for @ @ @ @ @ @ @ answers are nuanced , and regulation can get it wrong.
” The EU ’ s GDPR privacy laws , introduced two years ago , were designed to protect the personal data and privacy of EU citizens .
However , the rules made it harder for third parties to collect personal information such as location data for targeted ads .
As Google has a direct relationship with consumers , they could get consent for the use of their data far more easily than smaller companies , effectively concentrating more power in Google ’ s @ @ @ @ @ @ @ charges from the US Justice Department and the US Federal Trade Commission .
Read more : Europe lays out new rules that could force the breakup of big tech

Google CEO criticises antitrust regulation
Google chief Sundar Pichai has warned that “regulation can get it wrong” as his firm is increasingly targeted by antitrust moves.
Last week, the European Commission set out new regulation to curb the power of big tech. The Digital Services Act hopes to increase transparency and competition for tech firms.
The legislation will force firms, such as Google, to publish the algorithms used for rankings, as well as to police their own content. Big firms could be fined between six per cent and 10 per cent of global annual turnover if they fail to comply.
Read more: Could bitcoin top $100,000 this year?
In the interview with the FT, Pichai gave a guarded welcome to the regulation. He said: “I think it’s an important regulation to think through and get right.”
However, he warns that “Governments need to think through these important principles. Sometimes we can design very open ecosystems, they can have security implications.”
He added that the failure of GDPR to break down the monopoly of big tech “shows that for a lot of these things, the answers are nuanced, and regulation can get it wrong.”
The EU’s GDPR privacy laws, introduced two years ago, were designed to protect the personal data and privacy of EU citizens. However, the rules made it harder for third parties to collect personal information such as location data for targeted ads.
As Google has a direct relationship with consumers, they could get consent for the use of their data far more easily than smaller companies, effectively concentrating more power in Google’s hands.
Google is also facing antitrust charges from the US Justice Department and the US Federal Trade Commission.


cityam--2020-12-23--Advertising watchdog bans Klarna Instagram ads

The advertising watchdog has banned several Klarna shopping adverts that appeared on Instagram and encouraged consumers to use Klarna to shop and ‘ boost their mood ’ .
The Advertising Standards Agency ( ASA ) has banned Klarna ’ s Instagram campaign from appearing again , and warned the influencers involved to not “ irresponsibly ” encourage the use of Klarna ’ s deferred payment service .
Read more : Klarna-challenger Zilch becomes first ‘ buy now pay later ’ firm to secure FCA licence The Swedish fintech firm is the highest-valued private fintech in Europe after a September funding @ @ @ @ @ @ @ ( £8.54bn ) .
It has 9 million users in the US , and has more than 1.2 million active monthly users worldwide .
The banned adverts appeared on Instagram in April and May 2020 .
Klarna worked with four Instagram influencers , who each posted a picture of themselves , three of which were pictured with beauty products that could be bought through Klarna .
Read more : Why Klarna — not Revolut or Monzo — represents the winning fintech strategy in a pandemic The campaign encouraged consumers to shop with Klarna @ @ @ @ @ @ @ the Covid-19 lockdown .
The ASA received a complaint from Walthamstow MP Stella Creasy , who suggested the adverts were irresponsible .
The ASA upheld the complaint and said that in the context of the challenging circumstances caused by the lockdown at the time , including impacts on people ’ s financial and mental health , the ads irresponsibly encouraged the use of credit to improve people ’ s mood .
Read more : Coronavirus drives down London vacancies a third in 2020 The ASA said the ads encouraged consumers to “ splurge @ @ @ @ @ @ @ were likely to go beyond the usual spending habits of many .
Klarna told the ASA it did not believe the adverts were irresponsible , and that the key theme was to take care of one ’ s self during the Covid-19 lockdown period .
Klarna said the ads were intended to highlight that self-care , skincare routines and pampering could be beneficial for improving mental health and staying entertained during the lockdown period , and any references to lifting one ’ s mood were in reference to using a beauty product or @ @ @ @ @ @ @ mood .
In a statement Klarna said it was “ disappointed ” in the decision , and had removed the associated posts .
“ During 2020 , the single largest marketing investment we made was in KlarnaSense , a campaign to address impulse shopping .
In that context , we thought long and hard about the text of the posts which were subsequently investigated by the ASA , ” said Klarna .
“ It was a genuine attempt to recognise the mood of many of our consumers at the start of the first @ @ @ @ @ @ @ we had the best of intentions , we missed the mark with the four posts the ASA has looked into.
” Klarna said it was setting up an thought leadership council consisting of media owners , consumers , a wellness charity partner and influencers , with the intention of providing better guidance for all brands in this space , and engage with the ASA .
Klarna has faced criticism for encouraging frivolous and unnecessary spending , which could land people in debt .
Klarna allows online shoppers to postpone paying for products or @ @ @ @ @ @ @ with an interest-free loan .
For shouldering this risk , Klarna charges retailers every time it is used .
Read more : Ant Financial takes minority stake in fintech unicorn Klarna Richard Lane , director of external affairs at debt charity StepChange , said deferred payment services could be harmful to consumers .
“ Buy-now , pay-later services are increasingly being marketed as a source of convenience for consumers , but it ’ s important that consumers recognise that the main benefit to retailers of offering these services is to sell more goods @ @ @ @ @ @ @ , but so is the financial commitment .
Advertising around these services needs to adhere to the same standards as other commercial borrowing , and clear guidance needs to be given to the providers of these services to ensure any marketing is done in a responsible way.
” He continued : “ As we recently told the FCA ’ s Woolard Review , we do think buy-now , pay-later services can create a risk of harm to consumers , so we believe there ’ s a strong case for the need to look @ @ @ @ @ @ @ services .
”

Advertising watchdog bans Klarna Instagram ads
The advertising watchdog has banned several Klarna shopping adverts that appeared on Instagram and encouraged consumers to use Klarna to shop and ‘boost their mood’.
The Advertising Standards Agency (ASA) has banned Klarna’s Instagram campaign from appearing again, and warned the influencers involved to not “irresponsibly” encourage the use of Klarna’s deferred payment service.
The Swedish fintech firm is the highest-valued private fintech in Europe after a September funding round valued the group at $11bn (£8.54bn).
It has 9 million users in the US, and has more than 1.2 million active monthly users worldwide.
The banned adverts appeared on Instagram in April and May 2020. Klarna worked with four Instagram influencers, who each posted a picture of themselves, three of which were pictured with beauty products that could be bought through Klarna.
The campaign encouraged consumers to shop with Klarna to “boost their mood” during the Covid-19 lockdown.
The ASA received a complaint from Walthamstow MP Stella Creasy, who suggested the adverts were irresponsible.
The ASA upheld the complaint and said that in the context of the challenging circumstances caused by the lockdown at the time, including impacts on people’s financial and mental health, the ads irresponsibly encouraged the use of credit to improve people’s mood.
The ASA said the ads encouraged consumers to “splurge” on relatively expensive items, which were likely to go beyond the usual spending habits of many.
Klarna told the ASA it did not believe the adverts were irresponsible, and that the key theme was to take care of one’s self during the Covid-19 lockdown period.
Klarna said the ads were intended to highlight that self-care, skincare routines and pampering could be beneficial for improving mental health and staying entertained during the lockdown period, and any references to lifting one’s mood were in reference to using a beauty product or self-care – not using Klarna boost their mood.
In a statement Klarna said it was “disappointed” in the decision, and had removed the associated posts.
“During 2020, the single largest marketing investment we made was in KlarnaSense, a campaign to address impulse shopping. In that context, we thought long and hard about the text of the posts which were subsequently investigated by the ASA,” said Klarna.
“It was a genuine attempt to recognise the mood of many of our consumers at the start of the first lockdown. We recognise that, whilst we had the best of intentions, we missed the mark with the four posts the ASA has looked into.”
Klarna said it was setting up an thought leadership council consisting of media owners, consumers, a wellness charity partner and influencers, with the intention of providing better guidance for all brands in this space, and engage with the ASA.
More regulation needed
Klarna has faced criticism for encouraging frivolous and unnecessary spending, which could land people in debt.
Klarna allows online shoppers to postpone paying for products or to pay in instalments, providing them with an interest-free loan. For shouldering this risk, Klarna charges retailers every time it is used.
Richard Lane, director of external affairs at debt charity StepChange, said deferred payment services could be harmful to consumers.
“Buy-now, pay-later services are increasingly being marketed as a source of convenience for consumers, but it’s important that consumers recognise that the main benefit to retailers of offering these services is to sell more goods.
“The convenience may be real, but so is the financial commitment. Advertising around these services needs to adhere to the same standards as other commercial borrowing, and clear guidance needs to be given to the providers of these services to ensure any marketing is done in a responsible way.”
He continued: “As we recently told the FCA’s Woolard Review, we do think buy-now, pay-later services can create a risk of harm to consumers, so we believe there’s a strong case for the need to look at greater regulation of these kinds of services.”


cityam--2020-12-23--Major League Cricket: Silicon Valley and Bollywood’s grand plan to make America fall in love with T2

People don ’ t tend to associate the game of cricket with the United States .
The world ’ s second most popular sport has an estimated global following of 2.5bn , yet has struggled to attract an audience in the US , where American football , baseball , and basketball dominate the live sport broadcasting schedule .
But a group of investors that includes chief executives of tech giants and a Bollywood film star are seeking to change that with the launch of Major League Cricket ( MLC ) .
Read more : Chris Tremlett : Why Zak Crawley @ @ @ @ @ @ @ highlight of 2020 The Twenty20 cricket competition , scheduled to launch in 2022 , will feature six franchises .
Dallas and Los Angeles have already been confirmed as team locations .
MLC ’ s organisers hope that the competition can repeat the success of the Indian Premier League ( IPL ) , which has rapidly become one of the world ’ s most-viewed sports leagues .
The competition ’ s launch is also a key part of USA Cricket ’ s foundational plan , which aims to grow cricket ’ s American following @ @ @ @ @ @ @ team .
A 24-team sister competition , called Minor League Cricket , begins next spring and will serve as a pipeline to MLC .
USA Cricket is targeting full membership of the International Cricket Council by 2030 .
The governing body is also set to spend at least $ 10m to renovate the AirHogs Stadium in Grand Prairie , Texas .
The 6,000-seat facility will become a cricket-exclusive venue , hosting Dallas ’ s MLC franchise and functioning as a high-performance centre for young American players .
“ We have been encouraged by @ @ @ @ @ @ @ able to make across a number of different areas despite the obvious challenges of these times , ” said Paraag Marathe , the chairman of USA Cricket , earlier this year .
We anticipate that our growth will accelerate now that the organisational direction has been very clearly set.
” Who are the key figures behind it ?
Some influential US business leaders are cricket lovers who want to increase the sport ’ s American following .
Most notable among them is Satya Nadella , Microsoft chief executive and lifelong cricket fan .
@ @ @ @ @ @ @ is expanding its main campus with the Richmond , Washington site building a world-class cricket pitch .
“ Technology and cricket go together perfectly , ” says cricketer turned journalist Simon Hughes .
“ Many CEOs of US tech giants are of South Asian origin and love cricket.
” Hughes co-wrote his latest book , A New Innings , with Manoj Badale , owner of the IPL ’ s Rajasthan Royals .
It argues that Indian-American tech executives like Nadella , Google ’ s Sundar Pichai , and Pepsi ’ s Indra Nooyi @ @ @ @ @ @ @ expansion to the US .
Indian actor Shah Rukh Khan , labelled by some media as the “ King of Bollywood ” , is also investing in MLC .
Khan is a co-owner of the IPL ’ s Kolkata Knight Riders , and will own the MLC ’ s Los Angeles Knight Riders .
“ Undoubtedly , other IPL and privately-owned franchises may invest in MLC , ” says Hughes .
Despite significant investment from businessmen such as Nadella and Khan , MLC will have to overcome several major obstacles .
“ The @ @ @ @ @ @ @ , NBA and NHL ] effectively crowd out sports from the likes of media and sponsorship markets , ” says Simon Chadwick , a professor of sport business at Emlyon Business School .
“ Sports such as cricket , in the short- to medium-term , typically find it extremely difficult to overcome such barriers.
” However , MLC ’ s founders are confident that their new initiative can succeed where other attempts to establish cricket in the US , such as Shane Warne and Sachin Tendulkar ’ s 2015 Cricket All-Stars series , @ @ @ @ @ @ @ which has achieved sustainable growth through engagement with Hispanic communities , offers some lessons , says Chadwick .
“ US consumers are predisposed towards spending on sport , and there are several diasporas in the US that may already be engaged with cricket , ” Chadwick says .
By some estimates , there may be 6m Americans of Indian and South Asian origin , many already cricket fans .
MLC has already signed a broadcasting contract with Willow TV , a pay television sports channel .
It airs overseas cricket events and targets @ @ @ @ @ @ @ Indian or South Asian origin .
The success of North America ’ s first T20 League , the Global T20 Canada , will also encourage MLC ’ s founders .
The Canadian tournament marked itself out by attracting high-profile international players including Chris Gayle , Shahid Afridi and Steve Smith .
Hughes says that the lessons from the IPL , Global T20 Canada , and other franchise T20 competitions are straightforward .
Read more : Six tips for lockdown success from former England cricketer Jeremy Snape “ Get the best players , and @ @ @ @ @ @ @ so all teams are roughly equal in terms of ability.
” If MLC successfully follows that formula , cricket could finally gain a foothold in the world ’ s largest sport economy .

Major League Cricket: Silicon Valley and Bollywood’s grand plan to make America fall in love with T20
Bollywood star Shah Rukh Khan is the owner of Indian and Caribbean T20 franchises and an early backer of Major League Cricket
People don’t tend to associate the game of cricket with the United States.
The world’s second most popular sport has an estimated global following of 2.5bn, yet has struggled to attract an audience in the US, where American football, baseball, and basketball dominate the live sport broadcasting schedule.
But a group of investors that includes chief executives of tech giants and a Bollywood film star are seeking to change that with the launch of Major League Cricket (MLC).
What is Major League Cricket?
The Twenty20 cricket competition, scheduled to launch in 2022, will feature six franchises. Dallas and Los Angeles have already been confirmed as team locations.
MLC’s organisers hope that the competition can repeat the success of the Indian Premier League (IPL), which has rapidly become one of the world’s most-viewed sports leagues.
The competition’s launch is also a key part of USA Cricket’s foundational plan, which aims to grow cricket’s American following and improve the quality of the national team.
A 24-team sister competition, called Minor League Cricket, begins next spring and will serve as a pipeline to MLC.
USA Cricket is targeting full membership of the International Cricket Council by 2030.
The governing body is also set to spend at least $10m to renovate the AirHogs Stadium in Grand Prairie, Texas.
The 6,000-seat facility will become a cricket-exclusive venue, hosting Dallas’s MLC franchise and functioning as a high-performance centre for young American players.
“We have been encouraged by the great progress that we have been able to make across a number of different areas despite the obvious challenges of these times,” said Paraag Marathe, the chairman of USA Cricket, earlier this year. We anticipate that our growth will accelerate now that the organisational direction has been very clearly set.”
Who are the key figures behind it?
Some influential US business leaders are cricket lovers who want to increase the sport’s American following.
Most notable among them is Satya Nadella, Microsoft chief executive and lifelong cricket fan.
Under Nadella’s leadership, Microsoft is expanding its main campus with the Richmond, Washington site building a world-class cricket pitch.
“Technology and cricket go together perfectly,” says cricketer turned journalist Simon Hughes. “Many CEOs of US tech giants are of South Asian origin and love cricket.”
Hughes co-wrote his latest book, A New Innings, with Manoj Badale, owner of the IPL’s Rajasthan Royals.
Microsoft chief executive Satya Nadella is a big cricket fan and also involved with MLC
It argues that Indian-American tech executives like Nadella, Google’s Sundar Pichai, and Pepsi’s Indra Nooyi will support the sport’s planned expansion to the US.
Indian actor Shah Rukh Khan, labelled by some media as the “King of Bollywood”, is also investing in MLC.
Khan is a co-owner of the IPL’s Kolkata Knight Riders, and will own the MLC’s Los Angeles Knight Riders.
“Undoubtedly, other IPL and privately-owned franchises may invest in MLC,” says Hughes.
Can Major League Cricket succeed?
Despite significant investment from businessmen such as Nadella and Khan, MLC will have to overcome several major obstacles.
“The Big Four leagues [NFL, MLB, NBA and NHL] effectively crowd out sports from the likes of media and sponsorship markets,” says Simon Chadwick, a professor of sport business at Emlyon Business School.
“Sports such as cricket, in the short- to medium-term, typically find it extremely difficult to overcome such barriers.”
However, MLC’s founders are confident that their new initiative can succeed where other attempts to establish cricket in the US, such as Shane Warne and Sachin Tendulkar’s 2015 Cricket All-Stars series, have failed.
Major League Soccer, which has achieved sustainable growth through engagement with Hispanic communities, offers some lessons, says Chadwick.
“US consumers are predisposed towards spending on sport, and there are several diasporas in the US that may already be engaged with cricket,” Chadwick says.
By some estimates, there may be 6m Americans of Indian and South Asian origin, many already cricket fans.
Global T20 Canada succeeded in attracting international stars such as Australia captain Steve Smith (right)
MLC has already signed a broadcasting contract with Willow TV, a pay television sports channel. It airs overseas cricket events and targets much of its advertising to Americans of Indian or South Asian origin.
The success of North America’s first T20 League, the Global T20 Canada, will also encourage MLC’s founders.
The Canadian tournament marked itself out by attracting high-profile international players including Chris Gayle, Shahid Afridi and Steve Smith.
Hughes says that the lessons from the IPL, Global T20 Canada, and other franchise T20 competitions are straightforward.
“Get the best players, and make sure they’re shared out so all teams are roughly equal in terms of ability.”
If MLC successfully follows that formula, cricket could finally gain a foothold in the world’s largest sport economy.


cityam--2020-12-23--Covid-19: R Rate creeps up to 1.4 in London according to new study

A new study suggests the so-called R Rate for Covid-19 in the capital has crept up to 1.4 .
An R Rate more than 1 means the number of those with the virus is growing .
The study , compiled by ZOE and the Covid Symptom Study app , suggests that the worst affected boroughs in London are Havering and Enfield .
Read more : How many Covid-19 cases are there in your borough ?
Kingston upon Thames , Hounslow and Richmond are the least affected areas .
The ZOE study is based on around one million weekly reporters and @ @ @ @ @ @ @ UK .
Tim Spector OBE , lead scientist on the ZOE COVID Symptom Study app and Professor of Genetic Epidemiology at King ’ s College London , said that while the “ new virus strain is being blamed for the recent surge in London and the South East… there ’ s still no hard evidence yet to support that it is acting differently.
” London and a number of areas in the south east have been plunged into an effective lockdown , with all but essential retail and takeaways closed .
On Sunday @ @ @ @ @ @ @ restrictions could last until the vaccine is rolled out more widely .
The Oxford / AstraZeneca jab is expected to be approved before the end of the year .

Covid-19: R Rate creeps up to 1.4 in London according to new study
(Photo by Leon Neal/Getty Images)
A new study suggests the so-called R Rate for Covid-19 in the capital has crept up to 1.4.
An R Rate more than 1 means the number of those with the virus is growing.
The study, compiled by ZOE and the Covid Symptom Study app, suggests that the worst affected boroughs in London are Havering and Enfield.
Read more: How many Covid-19 cases are there in your borough?
Kingston upon Thames, Hounslow and Richmond are the least affected areas.
The ZOE study is based on around one million weekly reporters and more than 10,000 swab tests across the UK.
Tim Spector OBE, lead scientist on the ZOE COVID Symptom Study app and Professor of Genetic Epidemiology at King’s College London, said that while the “new virus strain is being blamed for the recent surge in London and the South East… there’s still no hard evidence yet to support that it is acting differently.”
London and a number of areas in the south east have been plunged into an effective lockdown, with all but essential retail and takeaways closed.
On Sunday Health Secretary Matt Hancock warned that lockdown restrictions could last until the vaccine is rolled out more widely.
The Oxford / AstraZeneca jab is expected to be approved before the end of the year.


cityam--2020-12-23--Octopus Energy expands into Japan with Tokyo Gas partnership

Octopus Energy has partnered with Tokyo gas in a move that establishes Octopus ’ s presence in Asia .
The agreement will see Octopus Energy and Tokyo Gas launch the Octopus Energy brand in Japan , operated by TG Octopus Energy .
Tokyo will act as a launchpad for Octopus ’ s expansion across the region .
Octopus Energy in Japan will provide 100 per cent renewable electricity .
Japanese renewables lag the UK by 50 per cent , with renewables in Japan in 2019 accounted for 18.9 per cent of electricity vs 37.9 per cent in the UK .
@ @ @ @ @ @ @ said : “ This joint venture will bring our exciting approach to renewable energy and technology to the world ’ s largest competitive energy market , and the investment will turbocharge our mission to revolutionise energy globally.
” Read more : Octopus wraps tentacles around US with Evolve Energy purchase The deal sees Tokyo Gas take a $ £200m , 9.7 per cent equity stake in Octopus .
The new joint venture values Octopus at $ 2.1bn .
Earlier this year Origin Energy invested $ 200m , and recently an additional $ 50m @ @ @ @ @ @ @ renewable energy firm has launched in the USA and Germany , and acquired Upside Energy , which specialises in smart grid technology .
Octopus ’ s technology platform ‘ Kraken ’ will be licensed by the joint venture to deliver energy solutions to Japanese households .
Kraken is already contracted to serve 17 million energy accounts worldwide through Octopus ’ s own retail businesses , plus agreements with Good Energy , Hanwha Corporation , Origin Energy , nPower and E.ON .

Octopus Energy expands into Japan with Tokyo Gas partnership
Japan needs allies to become a global financial centre
Octopus Energy has partnered with Tokyo gas in a move that establishes Octopus’s presence in Asia.
The agreement will see Octopus Energy and Tokyo Gas launch the Octopus Energy brand in Japan, operated by TG Octopus Energy.
Tokyo will act as a launchpad for Octopus’s expansion across the region.
Octopus Energy in Japan will provide 100 per cent renewable electricity. Japanese renewables lag the UK by 50 per cent, with renewables in Japan in 2019 accounted for 18.9 per cent of electricity vs 37.9 per cent in the UK.
Octopus Energy founder and CEO Greg Jackson said: “This joint venture will bring our exciting approach to renewable energy and technology to the world’s largest competitive energy market, and the investment will turbocharge our mission to revolutionise energy globally.”
The deal sees Tokyo Gas take a $£200m, 9.7 per cent equity stake in Octopus. The new joint venture values Octopus at $2.1bn.
Earlier this year Origin Energy invested $200m, and recently an additional $50m in Octopus, and since then the renewable energy firm has launched in the USA and Germany, and acquired Upside Energy, which specialises in smart grid technology.
Octopus’s technology platform ‘Kraken’ will be licensed by the joint venture to deliver energy solutions to Japanese households.
Kraken is already contracted to serve 17 million energy accounts worldwide through Octopus’s own retail businesses, plus agreements with Good Energy, Hanwha Corporation, Origin Energy, nPower and E.ON.


cityam--2020-12-23--FTSE slips this morning amidst a host of global worries

The FTSE 100 has slipped a little this morning , with the index down 0.15 per cent 45 minutes into @ @ @ @ @ from a lower open has dissipated .
A lack of progress on a Brexit deal @ @ @ @ @ new mutant strain of Covid-19 and President Trump gave reason to trouble traders on the @ @ @ @ @ before Christmas .
The removal of the border impasse between the UK and France gave @ @ @ @ @ with the DAX and CAC 40 both up healthily .
Read more : Is Nigel @ @ @ @ @ advice service a recipe for control – or chaos ?
This is a developing story @ @ @ @

FTSE slips this morning amidst a host of global worries
(Photo by Chris J Ratcliffe/Getty Images)
The FTSE 100 has slipped a little this morning, with the index down 0.15 per cent 45 minutes into trading.
A brief recovery from a lower open has dissipated.
A lack of progress on a Brexit deal, ongoing fears about the new mutant strain of Covid-19 and President Trump gave reason to trouble traders on the last full day of trading before Christmas.
The removal of the border impasse between the UK and France gave European markets a boost, with the DAX and CAC 40 both up healthily.
Read more: Is Nigel Farage’s new investment advice service a recipe for control – or chaos?
This is a developing story and will be updated


cityam--2020-12-23--BoE's Chief Wonk: Inflation spike could undermine recovery

The Bank of England ’ s Chief Economist Andy Haldane has said that a “ laser focus ” is needed on inflation amid unprecedented public debt and fiscal stimulus .
Haldane fears that markets would only forgive a brief period in which inflation tops the Bank ’ s 2 per cent target , with any entrenchment seeing yields rise and increasing the cost of public debt significantly .
Read more : UK monthly borrowing hits third-highest ever level in November “ The last thing the world needs right now is a nasty inflation surprise , ” he told a Bloomberg @ @ @ @ @ @ @ the Chancellor Rishi Sunak needed to keep the “ insurance policy ” of higher spending , particularly focused on avoiding unemployment , until the recovery is well underway .
He told the Guardian that there was a risk unemployment , even temporarily during the Covid-19 crisis , could quickly become a longer-term condition in certain parts of the country .
“ If we are not careful those unemployment problems can become sticky .
What we found from the 1980s experience is that they can become generational .
It is passed down the generations @ @ @ @ @ @ @ , ” he said .
“ I am very pleased we have learned those lessons.
” Haldane said he was “ more confident ” about the second half of 2021 than the first .
“ The further you peer into the future right now , the clearer things are becoming now in the light of the vaccine , ” he said .
Read more : Is 2021 going to be the FTSE ’ s year ?

BoE’s Chief Wonk: Inflation spike could undermine recovery
(Photo by Dan Kitwood/Getty Images)
The Bank of England’s Chief Economist Andy Haldane has said that a “laser focus” is needed on inflation amid unprecedented public debt and fiscal stimulus.
Haldane fears that markets would only forgive a brief period in which inflation tops the Bank’s 2 per cent target, with any entrenchment seeing yields rise and increasing the cost of public debt significantly.
Read more: UK monthly borrowing hits third-highest ever level in November
“The last thing the world needs right now is a nasty inflation surprise,” he told a Bloomberg podcast.
Earlier he had said that the Chancellor Rishi Sunak needed to keep the “insurance policy” of higher spending, particularly focused on avoiding unemployment, until the recovery is well underway.
He told the Guardian that there was a risk unemployment, even temporarily during the Covid-19 crisis, could quickly become a longer-term condition in certain parts of the country.
“If we are not careful those unemployment problems can become sticky. What we found from the 1980s experience is that they can become generational. It is passed down the generations and you have whole families without work,” he said.
“I am very pleased we have learned those lessons.”
Haldane said he was “more confident” about the second half of 2021 than the first.
“The further you peer into the future right now, the clearer things are becoming now in the light of the vaccine,” he said.
That “should be encouraging.”
Read more: Is 2021 going to be the FTSE’s year?


cityam--2020-12-23--Brexit deal close as negotiators reach outline

The outline to a UK-EU post-Brexit trade deal has been agreed , according to multiple reports .
A statement is @ @ @ @ @ or tomorrow morning .
The framework of the deal is believed to have settled outstanding @ @ @ @ @ deal is expected to predominantly cover goods trade , with financial services regulators having already @ @ @ @ @ 12-24 months .
Read more : Pound flies on news of a Brexit deal Once @ @ @ @ @ it will need to be voted on by both the UK and EU Parliaments before @ @ @ @ @ yesterday told City A.M. that the deal made too much sense not to be signed @ @ @ @ @ Markets Analyst at CMC Markets , said it would represent a “ failure of statecraft @ @ @ @ @ not reached .
Sterling reached highs of £1.35 against the dollar .

Brexit deal close as negotiators reach outline
(Photo by Peter Summers/Getty Images)
The outline to a UK-EU post-Brexit trade deal has been agreed, according to multiple reports.
A statement is expected either late this evening or tomorrow morning.
The framework of the deal is believed to have settled outstanding issues including fishing.
The deal is expected to predominantly cover goods trade, with financial services regulators having already signed so-called rollover deals for 12-24 months.
Read more: Pound flies on news of a Brexit deal
Prime Minister Boris Johnson and European Commission President Ursula von der Leyen
Once the deal is finalised, it will need to be voted on by both the UK and EU Parliaments before December 31.
City analysts yesterday told City A.M. that the deal made too much sense not to be signed.
Michael Hewson, Chief Markets Analyst at CMC Markets, said it would represent a “failure of statecraft” if an accord was not reached.
Sterling reached highs of £1.35 against the dollar.


cityam--2020-12-23--Premier Inn owner Whitbread asks landlords for 50 per cent rent cut

Premier Inn owner Whitbread has asked its landlords for a rent cut of 50 per cent , as the ongoing coronavirus pandemic restrictions continue to affect trade .
Whitbread sent a letter to its landlords , urging them to “ share some of the pain of lockdown , ” according to reports .
Read more : Premier Inn owner Whitbread swings to huge loss due to hotel closures Whitbread , which also owns Beefeater and Brewers Fayre brands , suffered huge losses in the first half of 2020 , as revenue plummeted while its hotels were closed during coronavirus lockdowns @ @ @ @ @ @ @ August , Whitbread posted a loss for the period of £660.5m – a drop of 483.6 per cent from £172.2m profit in the previous year .
In September the Premier Inn owner announced plans to cut 6,000 jobs – 18 per cent of its total workforce .
Read more : Coronavirus : Premier Inn owner Whitbread to axe up to 6,000 jobs The FTSE 100-listed firm said the cuts were a “ regrettable but necessary step to ensure that we emerge from the crisis with a lower cost base , a more flexible @ @ @ @ @ @ @ business ” .
City A.M. has contacted Whitbread for comment .

Premier Inn owner Whitbread asks landlords for 50 per cent rent cut
Premier Inn owner Whitbread has asked its landlords for a rent cut of 50 per cent, as the ongoing coronavirus pandemic restrictions continue to affect trade.
Whitbread sent a letter to its landlords, urging them to “share some of the pain of lockdown,” according to reports.
Whitbread, which also owns Beefeater and Brewers Fayre brands, suffered huge losses in the first half of 2020, as revenue plummeted while its hotels were closed during coronavirus lockdowns.
In the six months ended 27 August, Whitbread posted a loss for the period of £660.5m – a drop of 483.6 per cent from £172.2m profit in the previous year.
In September the Premier Inn owner announced plans to cut 6,000 jobs – 18 per cent of its total workforce.
The FTSE 100-listed firm said the cuts were a “regrettable but necessary step to ensure that we emerge from the crisis with a lower cost base, a more flexible operating model and a stronger more resilient business”.
City A.M. has contacted Whitbread for comment.