cityam--2020-09-28--US judge temporarily blocks Trump’s Tiktok app store ban

A US judge has temporarily blocked President Donald Trump ’ s ban on Tiktok downloads that was due to come into effect at midnight last night .
A Washington district judge granted Tiktok ’ s last-minute request for a preliminary injunction on the ban late last night following a 90-minute hearing earlier in the day .
Read more : Tiktok files for injunction to overturn US app store ban The Chinese-owned video platform faced removal from Apple ’ s App Store and Android ’ s Google Play marketplace from 11.59pm on Sunday , following a bitter spat with the Trump @ @ @ @ @ @ @ harvesting methods .
Trump has argued that data collected on 100m Americans who use the app every day could be handed over to the ruling Chinese Communist Party .
Though Titkok ’ s US users would still have been able to use the app under the proposed ban , a block on software updates would have slowly deteriorated the platform ’ s presence on the US app market .
Tiktok ’ s lawyer John E. Hall argued earlier on Sunday that the ban was “ unprecedented ” and “ irrational ” .
“ @ @ @ @ @ @ @ just a blunt way to whack the company… There is simply no urgency here , ” he told the court in Washington .
Judge Carl Nichols declined “ at this time ” to block additional commerce department restrictions due to take effect on 12 November .
The US commerce department said it “ will comply with the injunction and has taken immediate steps to do so ” .
The injunction comes as Tiktok scrambles to secure a deal that would secure its continued operations in the US .
Chinese parent company Bytedance is @ @ @ @ @ @ @ with US retail giants Walmart and Oracle to each take a 20 per cent stake in Tiktok Global — a new entity that would oversee the firm ’ s US operations .
However , Trump last week U-turned on giving the deal his “ blessing ” , adding that he would refuse to sign off any deal that would grant Bytedance a majority stake in the video platform .
Bytedance subsequently said the company would go public in a year ’ s time , though the key terms of the deal remain in @ @ @ @ @ @ @ platform ’ s technical and business arrangements are due to be imposed if a deal is not secured by 12 November .
Read more : Tiktok proposes social media coalition as MPs grill app over online harms Tiktok has said the new restrictions would effectively render the app impossible to operate in the US .
Jeffrey Halley , senior market analyst of the Asia Pacific region at Oanda , said last night ’ s injunction should be read as “ more a stay of execution than a complete victory ” , with continuing @ @ @ @ @ @ @ the coming weeks .
Before the Open : Get the jump on the markets with our early morning newsletter

US judge temporarily blocks Trump’s Tiktok app store ban
A US judge has temporarily blocked President Donald Trump’s ban on Tiktok downloads that was due to come into effect at midnight last night.
A Washington district judge granted Tiktok’s last-minute request for a preliminary injunction on the ban late last night following a 90-minute hearing earlier in the day.
App Store ban
The Chinese-owned video platform faced removal from Apple’s App Store and Android’s Google Play marketplace from 11.59pm on Sunday, following a bitter spat with the Trump administration over the firm’s data harvesting methods.
Trump has argued that data collected on 100m Americans who use the app every day could be handed over to the ruling Chinese Communist Party.
Tiktok has repeatedly denied the claims.
Though Titkok’s US users would still have been able to use the app under the proposed ban, a block on software updates would have slowly deteriorated the platform’s presence on the US app market.
Tiktok’s lawyer John E. Hall argued earlier on Sunday that the ban was “unprecedented” and “irrational”.
“This is just punitive. This is just a blunt way to whack the company… There is simply no urgency here,” he told the court in Washington.
Judge Carl Nichols declined “at this time” to block additional commerce department restrictions due to take effect on 12 November.
The US commerce department said it “will comply with the injunction and has taken immediate steps to do so”.
Deal or no deal?
The injunction comes as Tiktok scrambles to secure a deal that would secure its continued operations in the US.
Chinese parent company Bytedance is close to hammering out a preliminary deal with US retail giants Walmart and Oracle to each take a 20 per cent stake in Tiktok Global — a new entity that would oversee the firm’s US operations.
However, Trump last week U-turned on giving the deal his “blessing”, adding that he would refuse to sign off any deal that would grant Bytedance a majority stake in the video platform.
Bytedance subsequently said the company would go public in a year’s time, though the key terms of the deal remain in dispute.
Fresh restrictions on the video platform’s technical and business arrangements are due to be imposed if a deal is not secured by 12 November.
Tiktok has said the new restrictions would effectively render the app impossible to operate in the US.
Jeffrey Halley, senior market analyst of the Asia Pacific region at Oanda, said last night’s injunction should be read as “more a stay of execution than a complete victory”, with continuing negotiations set to lay the battleground in the coming weeks.
Before the Open: Get the jump on the markets with our early morning newsletter


cityam--2020-09-28--Diageo shares pop as Guinness maker hails improved trading

World ’ s largest spirit maker Diageo said that it had made a “ good start ” to the new financial year , driven by its US business , which is performing ahead of expectations .
Shares in the FTSE 100 drinks maker rose 6.1 per cent as markets opened this morning .
Read more : Diageo to acquire Ryan Reynolds ’ gin brand through Davos Brands deal In an update before the firm ’ s AGM , chief executive Ivan Menezes said that the pace of recovery across its markets was different according to government restrictions .
However he @ @ @ @ @ @ @ for the full year had improved since it revealed a 47 per cent fall in last year ’ s profit in August .
“ We continue to expect sequential improvement in organic net sales and operating profit compared to the second half of fiscal 2020 .
“ Compared to the first half of fiscal 20 , we still expect lower organic net sales and margin dilution ” , he said .
Before the Open newsletter : Start your day with the City View podcast and key market data Along with other alcohol companies @ @ @ @ @ @ @ was hammered by the coronavirus restrictions , which saw bars and restaurants closed around the world .
Sales were propped up by increased demand from people drinking at home , as well as the slow reopening of venues through the summer period .
Diageo ’ s US business , which Barclays analysts say makes up 45 per cent of the firm ’ s profits , is “ performing strongly ” , Menezes added , with more people choosing spirits over other types of alcohol .
Russ Mould , investment director at AJ Bell @ @ @ @ @ @ @ trading update is remarkably upbeat and shows good progress in getting operations back on track .
Read more : Diageo shares drop as profit almost halves amid coronavirus crisis “ Demand is returning from many important places , albeit some areas are likely to remain fragile near-term such as sales in airports and in emerging markets .
“ Its job is to now focus on strongest areas and try to fuel positive sales momentum while waiting for the weaker markets to stabilise .
”

Diageo shares pop as Guinness maker hails improved trading
Diageo’s drinks
World’s largest spirit maker Diageo said that it had made a “good start” to the new financial year, driven by its US business, which is performing ahead of expectations.
Shares in the FTSE 100 drinks maker rose 6.1 per cent as markets opened this morning.
In an update before the firm’s AGM, chief executive Ivan Menezes said that the pace of recovery across its markets was different according to government restrictions.
However he added that the firm’s outlook for the full year had improved since it revealed a 47 per cent fall in last year’s profit in August.
“We continue to expect sequential improvement in organic net sales and operating profit compared to the second half of fiscal 2020.
“Compared to the first half of fiscal 20, we still expect lower organic net sales and margin dilution”, he said.
Before the Open newsletter: Start your day with the City View podcast and key market data
Along with other alcohol companies, the Guinness maker’s business was hammered by the coronavirus restrictions, which saw bars and restaurants closed around the world.
Sales were propped up by increased demand from people drinking at home, as well as the slow reopening of venues through the summer period.
Diageo’s US business, which Barclays analysts say makes up 45 per cent of the firm’s profits, is “performing strongly”, Menezes added, with more people choosing spirits over other types of alcohol.
Russ Mould, investment director at AJ Bell, said: “Diageo’s trading update is remarkably upbeat and shows good progress in getting operations back on track.
“Demand is returning from many important places, albeit some areas are likely to remain fragile near-term such as sales in airports and in emerging markets.
“Its job is to now focus on strongest areas and try to fuel positive sales momentum while waiting for the weaker markets to stabilise.”


cityam--2020-09-28--Octopus wraps tentacles around US with Evolve Energy purchase

Challenger energy brand Octopus has today continued its international expansion with its first foray into the massive US market .
The firm , which has grown rapidly since launching four years ago and now boasts 1.7m accounts in the UK , has bought American supplier Evolve Energy in a $ 5m ( £3.9m ) deal .
The acquisition is the first step in a programme which will see Octopus invest $ 100m into the US , with the goal of acquiring 25m US customers on its technology platform by 2027 .
By 2030 , the firm has set itself the @ @ @ @ @ @ @ world .
Octopus ’ s chief executive Greg Jackson told City A.M. that in partnering with Silicon Valley-based Evolve , the group would become a “ tech knowledge powerhouse ” .
He said that the acquisition would be a “ great launchpad ” for the firm , adding that the UK had a real chance to be a “ pioneer ” in the development of such tech around the world .
“ The energy transition is probably the biggest single economic shift since the invention of the internet ” , he said .
@ @ @ @ @ @ @ a pioneer and to drive change on that scale ” .
Before the Open newsletter : Start your day with the City View podcast and key market data In April 2020 , Octopus became the country ’ s latest tech ‘ unicorn ’ , valued at close to $ 2bn after Australia ’ s leading energy company Origin Energy acquired a 20 percent stake for nearly $ 400m .
Aside from the 1.7m UK households it looks after directly , Octopus has leased its technology to a number of other suppliers , supporting @ @ @ @ @ @ @ , E.On and Good Energy all use the “ Kraken ” software , equally roughly 25 per cent of the whole UK market .
The firm has also expanded into Australia .
“ Octopus Energy is inspirational in growing a customer base of over 1 million households in just four years .
It matches our aspiration for innovation and we ’ re thrilled to be part of the Octopus family , ” said Evolve founder Michael Lee .
“ The US energy market is rapidly moving towards ultra-low cost renewable energy and is @ @ @ @ @ @ @ ”

Octopus wraps tentacles around US with Evolve Energy purchase
Challenger energy brand Octopus has today continued its international expansion with its first foray into the massive US market.
The firm, which has grown rapidly since launching four years ago and now boasts 1.7m accounts in the UK, has bought American supplier Evolve Energy in a $5m (£3.9m) deal.
The acquisition is the first step in a programme which will see Octopus invest $100m into the US, with the goal of acquiring 25m US customers on its technology platform by 2027.
By 2030, the firm has set itself the challenge of achieving 100m customers around the world.
Octopus’s chief executive Greg Jackson told City A.M. that in partnering with Silicon Valley-based Evolve, the group would become a “tech knowledge powerhouse”.
He said that the acquisition would be a “great launchpad” for the firm, adding that the UK had a real chance to be a “pioneer” in the development of such tech around the world.
“The energy transition is probably the biggest single economic shift since the invention of the internet”, he said. “We have the chance to be a pioneer and to drive change on that scale”.
Before the Open newsletter: Start your day with the City View podcast and key market data
In April 2020, Octopus became the country’s latest tech ‘unicorn’, valued at close to $2bn after Australia’s leading energy company Origin Energy acquired a 20 percent stake for nearly $400m.
Aside from the 1.7m UK households it looks after directly, Octopus has leased its technology to a number of other suppliers, supporting around 17m customers in total.
Npower, E.On and Good Energy all use the “Kraken” software, equally roughly 25 per cent of the whole UK market. The firm has also expanded into Australia.
“Octopus Energy is inspirational in growing a customer base of over 1 million households in just four years. It matches our aspiration for innovation and we’re thrilled to be part of the Octopus family,” said Evolve founder Michael Lee.
“The US energy market is rapidly moving towards ultra-low cost renewable energy and is prime for a true digital transformation.”


cityam--2020-09-28--Tech Nation bolsters board as it seeks to help economy recover from Covid-19

Tech Nation has bolstered its board as it seeks to help the UK economy recover from the coronavirus pandemic .
The tech entrepreneur network has appointed former Palamon Capital finance chief Annette Wilson , X Capital Partners founder Eric Collins , Hoxton Ventures partner Hussein Kanji and Benevolent AI senior vice president Trecilla Lobo to its board of directors .
The new non-executive directors , who were up against more than 300 other applicants to secure the positions , have experience across business , academia and government , with roles as founders , investors and leaders .
Tech Nation is @ @ @ @ @ @ @ for the UK economy by March next year , saying the sector is “ more important than ever ” for post-Covid recovery .
Last year UK tech was worth £186bn to the UK economy , and was growing six times faster than other sectors before the pandemic .
Tech Nation has supported the leadership teams of 2,000 tech companies and 30 per cent of all the 82 UK tech unicorns , including Monzo , Checkout.com , Skyscanner , Darktrace and Swoon .
Tech Nation chair Stephen Kelly said : “ The UK tech @ @ @ @ @ @ @ , and is key to unlocking future growth , job creation and prosperity in the Digital Age .
Read more : Does Nvidia ’ s buyout of ARM signal the death knell for UK tech entrepreneurship “ I ’ m looking forward to working with Annette , Eric , Hussein and Trecilla , who bring their invaluable experience to the Tech Nation board .
“ The stakes are high for the UK given the Covid-19 economic fall-out and it was imperative to build an exceptional , world-class board to lead Tech Nation ’ @ @ @ @ @ @ @ Britain ’ s vision for the future in taking the UK ’ s tech companies to global market leadership .
”

Tech Nation bolsters board as it seeks to help economy recover from Covid-19
London is keen not to be left out of the booming SPAC market.
Tech Nation has bolstered its board as it seeks to help the UK economy recover from the coronavirus pandemic.
The tech entrepreneur network has appointed former Palamon Capital finance chief Annette Wilson, Impact X Capital Partners founder Eric Collins, Hoxton Ventures partner Hussein Kanji and Benevolent AI senior vice president Trecilla Lobo to its board of directors.
The new non-executive directors, who were up against more than 300 other applicants to secure the positions, have experience across business, academia and government, with roles as founders, investors and leaders.
Tech Nation is aiming to generate an additional $1bn for the UK economy by March next year, saying the sector is “more important than ever” for post-Covid recovery.
Last year UK tech was worth £186bn to the UK economy, and was growing six times faster than other sectors before the pandemic.
Tech Nation has supported the leadership teams of 2,000 tech companies and 30 per cent of all the 82 UK tech unicorns, including Monzo, Checkout.com, Skyscanner, Darktrace and Swoon.
Tech Nation chair Stephen Kelly said: “The UK tech sector has demonstrated resilience throughout this crisis, and is key to unlocking future growth, job creation and prosperity in the Digital Age.
“I’m looking forward to working with Annette, Eric, Hussein and Trecilla, who bring their invaluable experience to the Tech Nation board.
“The stakes are high for the UK given the Covid-19 economic fall-out and it was imperative to build an exceptional, world-class board to lead Tech Nation’s delivery of a key aspect of Britain’s vision for the future in taking the UK’s tech companies to global market leadership.”


cityam--2020-09-28--Exclusive: MPs slam ‘inconsistency and incompetence’ as SMEs struggle to get bounce back loans

Banks have been told to ensure that no small businesses are “ locked out ” of government-backed coronavirus loans , after firms were left unable to access the loans despite being eligible for funding .
MPs said lenders accredited under the scheme should re-open applications for bounce back loans ( BBLs ) , designed to help small companies weather the pandemic .
Read more : Government eases pressure on small businesses with further loans support Barclays has been accused of “ inventing ” rules for the scheme after rejecting multiple BBL applications based on a regulation that does not appear @ @ @ @ @ @ @ .
Mel Stride MP , chair of the influential Treasury Select Committee , said businesses unable to access funding should share their stories with Parliament .
“ Accessing these loans may be a question of life or death for some of these businesses , ” he said .
“ If these reports are true , then it would be very concerning that businesses may be facing lengthy delays or are unable to access the scheme at all .
“ The Treasury Committee would be interested in receiving further evidence in this area.
” @ @ @ @ @ @ @ , called on the government to work with lenders to address issues with BBL .
But City A.M. has learned of multiple instances where Barclays told bosses that their applications had been declined because they had already applied to another lenders .
Under the rules of the scheme , which is overseen by the British Business Bank ( BBB ) , owners can not submit multiple applications for the same business at the same time .
If owners have had an application declined by one lender , they can apply to another .
@ @ @ @ @ @ @ they had been prompted to submit multiple applications to the same bank without success .
HSBC came in for particular criticism , with SME bosses labelling their handling of the scheme a “ complete shambles ” .
Initially launched in May , BBLs are 100 per cent government-backed loans introduced to help keep small businesses afloat through the disruption caused by Covid-19 .
As of 20 September , bounce back loans totalling just over £38bn had been approved for 1.3m small businesses , according to the latest figures from the Treasury .
Businesses @ @ @ @ @ @ @ funding under the scheme .
Chancellor Rishi Sunak last week raised the repayment period on the loans to 10 years , and extended the application window until 30 November .
Some 28 lenders have received accreditation to issue bounce back loans , but of these just six are currently open to applications from new customers .
Kevin Hollinrake MP , leader of the all-party parliamentary group for fair business banking , told City A.M. that all accredited lenders should “ do the right thing ” .
He said banks must “ open their @ @ @ @ @ @ @ provide loans for businesses in need , who are currently locked out of the system ” .
“ It is incumbent upon the banks to deliver [ BBLs ] to all viable businesses , ” he added .
Miliband echoed Hollinrake ’ s call for accredited lenders to re-open applications , saying the Government “ must explain why this is happening and work with lenders to ensure they reopen applications and assess them fairly ” .
“ This inconsistency and incompetence is something struggling businesses can not afford , ” he added added @ @ @ @ @ @ @ business owner who appealed their BBL rejection , a Barclays employee said they “ did not dispute ” that the owner had not received a loan from another lender , but added : “ the scheme rules are clear that only one application for a BBL is allowed per business ” .
In another case , Jaipal , who runs an IT consultancy , applied for a BBL from Barclays after being rejected by another lender .
Barclays also rejected his application .
After Jaipal , who asked for his last name not @ @ @ @ @ @ @ , the bank sent him a letter stating his application was rejected because of his previous unsuccessful application to another lender .
Read more : Banks lend £49bn to SMEs to survive coronavirus fallout “ As we know from our checks , you have also approached other lenders , ” the letter said .
“ Although you ’ ve provided evidence that this hasn ’ t drawn down , it is against scheme rules to have more than one application ” .
Jaipal , who has been trying to get a bounce back @ @ @ @ @ @ @ of his frustrations .
“ It can eat you up , and I ’ m usually mentally quite strong , ” he said .
“ Legitimate people like myself have fallen foul of the system.
” Jaipal said he had taken on a separate full-time job on top of running his business “ just to pay the bills ” , and would be left unable to pay his businesses ’ suppliers and contractors if he could not secure a loan .
Hollinrake said lenders should “ know the rules of the scheme , @ @ @ @ @ @ @ rules… rather than inventing their own ” .
A Barclays spokesperson said : “ We ’ ve supported small businesses with 280,000 loans at a value of £8.7bn , ” adding : “ We use the cross-industry database as part of our checks before we are able to progress any application ” .
Responding to Jaipal ’ s case , the spokesperson said : “ We recognise that in [ that case ] we were not clear enough in our correspondence about the reason for declining his application and apologise for any misinterpretation.
@ @ @ @ @ @ @ lenders “ need to look at their lending criteria to make sure that they ’ re not excluding successful businesses from the scheme ” .
A HM Treasury Spokesperson said : “ Our schemes have supported more than one million businesses during the outbreak – with 28 lenders approving more than £38bn worth of loans .
“ The Bounce Back Loan eligibility criteria clearly sets out that firms can apply for finance with multiple providers.
” A spokesperson for the BBB said : “ Although each participating lender is responsible for their own @ @ @ @ @ @ @ are in regular contact with them regarding how their implementation of the scheme is working.
” City A.M. also spoke to a number of business owners who have been unable to access funding through the scheme despite being eligible for support .
Gianfilippo Mattioli , who runs the Bottega Prelibato restaurant in Shoreditch , applied for a loan on the day the scheme opened but is still waiting to hear if he has been successful , nearly six months later .
He asked HSBC for the full £50,000 , and was asked to @ @ @ @ @ @ @ has heard nothing from the lender Read more : More SMEs eligible for coronavirus loans under rule change “ It ’ s just a complete shambles .
I don ’ t know what ’ s going on with HSBC , but you are always on the phone for at least an hour , and even then you don ’ t get through , ” he said .
“ I don ’ t understand why this is happening if the government is backing the scheme.
” In contrast , Mattioli says that when he @ @ @ @ @ @ @ , smaller business he runs , his application was approved in just two days .
However , he told City A.M. that he was “ scared ” to switch away from HSBC .
“ I ’ m kind of stuck with them .
I ’ ve been dealing with them for more than 10 years , but I don ’ t want anything to do with HSBC anymore .
But I ’ m scared to move to another lender.
” Many business owners have also gone to extreme lengths to secure the funds @ @ @ @ @ @ @ advisory firm Vision Business Advisers , eventually got his money from HSBC , but only after submitting three applications and taking more drastic steps .
It was only after directly emailing HSBC chief executive Noel Quinn about the issue , Trotman said , that his loan was approved .
“ I called them about 20 times , but it didn ’ t have any effect .
The helpline HSBC set up was just there to fob you off — it had no connection at all with what was going on with applications.
” @ @ @ @ @ @ @ ’ ve approved over 191,000 BBLs , totalling over £5.78bn , since the scheme launched and have been working hard to get these much-needed loans to our customers as quickly as possible .
“ As one of the few banks accepting applications from businesses that aren ’ t currently our customers , we ’ ve been inundated with requests .
As a result , the wait times are significantly longer than they were pre-Covid-19.
” They added that HSBC would look into the individual cases .
City A.M. would like to hear from @ @ @ @ @ @ @ access BBLs .
Please get in touch with anna.menin @ cityam.com or edward.thicknesse @ cityam.com if you have been affected .

Exclusive: MPs slam ‘inconsistency and incompetence’ as SMEs struggle to get bounce back loans
Banks have been told to ensure that no small businesses are “locked out” of government-backed coronavirus loans, after firms were left unable to access the loans despite being eligible for funding.
MPs said lenders accredited under the scheme should re-open applications for bounce back loans (BBLs), designed to help small companies weather the pandemic.
Barclays has been accused of “inventing” rules for the scheme after rejecting multiple BBL applications based on a regulation that does not appear to exist, City A.M. can reveal.
Mel Stride MP, chair of the influential Treasury Select Committee, said businesses unable to access funding should share their stories with Parliament.
“Accessing these loans may be a question of life or death for some of these businesses,” he said. “If these reports are true, then it would be very concerning that businesses may be facing lengthy delays or are unable to access the scheme at all.
“The Treasury Committee would be interested in receiving further evidence in this area.”
Ed Miliband, the shadow business secretary, called on the government to work with lenders to address issues with BBL.
But City A.M. has learned of multiple instances where Barclays told bosses that their applications had been declined because they had already applied to another lenders.
Under the rules of the scheme, which is overseen by the British Business Bank (BBB), owners cannot submit multiple applications for the same business at the same time. If owners have had an application declined by one lender, they can apply to another.
Small business owners told City A.M. that they had been prompted to submit multiple applications to the same bank without success.
Shadow business secretary Ed Miliband condemned ‘inconsistency and incompetence’ within the scheme
HSBC came in for particular criticism, with SME bosses labelling their handling of the scheme a “complete shambles”.
Initially launched in May, BBLs are 100 per cent government-backed loans introduced to help keep small businesses afloat through the disruption caused by Covid-19.
As of 20 September, bounce back loans totalling just over £38bn had been approved for 1.3m small businesses, according to the latest figures from the Treasury.
Businesses can apply for up to £50,000 in funding under the scheme. Chancellor Rishi Sunak last week raised the repayment period on the loans to 10 years, and extended the application window until 30 November.
Some 28 lenders have received accreditation to issue bounce back loans, but of these just six are currently open to applications from new customers.
Kevin Hollinrake MP, leader of the all-party parliamentary group for fair business banking, told City A.M. that all accredited lenders should “do the right thing”.
He said banks must “open their doors to new customers” and “provide loans for businesses in need, who are currently locked out of the system”.
“It is incumbent upon the banks to deliver [BBLs] to all viable businesses,” he added.
Miliband echoed Hollinrake’s call for accredited lenders to re-open applications, saying the Government “must explain why this is happening and work with lenders to ensure they reopen applications and assess them fairly”.
“This inconsistency and incompetence is something struggling businesses cannot afford,” he added added.
Barclays ‘inventing’ own rules for bounce back loans
In an email responding to one business owner who appealed their BBL rejection, a Barclays employee said they “did not dispute” that the owner had not received a loan from another lender, but added: “the scheme rules are clear that only one application for a BBL is allowed per business”.
In another case, Jaipal, who runs an IT consultancy, applied for a BBL from Barclays after being rejected by another lender.
Barclays also rejected his application. After Jaipal, who asked for his last name not to be used, appealed the decision, the bank sent him a letter stating his application was rejected because of his previous unsuccessful application to another lender.
“As we know from our checks, you have also approached other lenders,” the letter said. “Although you’ve provided evidence that this hasn’t drawn down, it is against scheme rules to have more than one application”.
Jaipal, who has been trying to get a bounce back loan since May, told City A.M. of his frustrations.
“It can eat you up, and I’m usually mentally quite strong,” he said. “Legitimate people like myself have fallen foul of the system.”
Jaipal said he had taken on a separate full-time job on top of running his business “just to pay the bills”, and would be left unable to pay his businesses’ suppliers and contractors if he could not secure a loan.
Hollinrake said lenders should “know the rules of the scheme, and work to the letter of those rules… rather than inventing their own”.
A Barclays spokesperson said: “We’ve supported small businesses with 280,000 loans at a value of £8.7bn,” adding: “We use the cross-industry database as part of our checks before we are able to progress any application”.
Responding to Jaipal’s case, the spokesperson said: “We recognise that in [that case] we were not clear enough in our correspondence about the reason for declining his application and apologise for any misinterpretation.”
Liberal Democrat MP Sarah Olney said lenders “need to look at their lending criteria to make sure that they’re not excluding successful businesses from the scheme”.
A HM Treasury Spokesperson said: “Our schemes have supported more than one million businesses during the outbreak – with 28 lenders approving more than £38bn worth of loans.
“The Bounce Back Loan eligibility criteria clearly sets out that firms can apply for finance with multiple providers.”
A spokesperson for the BBB said: “Although each participating lender is responsible for their own system of handling loan applications, we are in regular contact with them regarding how their implementation of the scheme is working.”
HSBC under fire for ‘fobbing off’ customers
City A.M. also spoke to a number of business owners who have been unable to access funding through the scheme despite being eligible for support.
Gianfilippo Mattioli, who runs the Bottega Prelibato restaurant in Shoreditch, applied for a loan on the day the scheme opened but is still waiting to hear if he has been successful, nearly six months later.
He asked HSBC for the full £50,000, and was asked to make a second application, but subsequently has heard nothing from the lender
“It’s just a complete shambles. I don’t know what’s going on with HSBC, but you are always on the phone for at least an hour, and even then you don’t get through,” he said. “I don’t understand why this is happening if the government is backing the scheme.”
In contrast, Mattioli says that when he asked Natwest for a loan for another, smaller business he runs, his application was approved in just two days. However, he told City A.M. that he was “scared” to switch away from HSBC.
“I’m kind of stuck with them. I’ve been dealing with them for more than 10 years, but I don’t want anything to do with HSBC anymore. But I’m scared to move to another lender.”
Many business owners have also gone to extreme lengths to secure the funds. Peter Trotman, who runs financial advisory firm Vision Business Advisers, eventually got his money from HSBC, but only after submitting three applications and taking more drastic steps.
It was only after directly emailing HSBC chief executive Noel Quinn about the issue, Trotman said, that his loan was approved.
“I called them about 20 times, but it didn’t have any effect. The helpline HSBC set up was just there to fob you off — it had no connection at all with what was going on with applications.”
An HSBC UK spokesperson said “We’ve approved over 191,000 BBLs, totalling over £5.78bn, since the scheme launched and have been working hard to get these much-needed loans to our customers as quickly as possible.
“As one of the few banks accepting applications from businesses that aren’t currently our customers, we’ve been inundated with requests. As a result, the wait times are significantly longer than they were pre-Covid-19.”
They added that HSBC would look into the individual cases.
City A.M. would like to hear from small business owners who have struggled to access BBLs. Please get in touch with anna.menin@cityam.com or edward.thicknesse@cityam.com if you have been affected.


cityam--2020-09-28--Cote Restaurants bought out of administration by Partners Group

Cote Restaurants has been bought by investment management firm Partners Group after the struggling casual dining chain fell into administration .
Administrator FTI Consulting said the deal had saved 94 of the firm ’ s 98 French-style restaurants , with all 3,148 employees working under the Cote brand transferred to the new owners .
Read more : Restaurant industry risks ‘ lost generation ’ without more support , top chefs warn However its Limeyard and Jackson & Rye brands were not included in the deal , resulting in the closure of three sites and 56 redundancies .
Cote Restaurants , @ @ @ @ @ @ @ , said business had been trading well ahead of the UK coronavirus lockdown in March , reporting record sales for the previous financial year .
The closure of all its sites during the lockdown had a “ huge impact ” on the business .
FTI Consulting said the lockdown had caused liquidity problems for the restaurant chain .
However the company said it has “ adapted well to this new environment ” and has appointed former Wagamama chief executive Jane Holbrook to join the board as chair .
Partners Group managing director Christian @ @ @ @ @ @ @ strong brand with a good following , great quality food and a differentiated operating setup .
“ While the mandatory closure of all Cote ’ s restaurants due to COVID-19 resulted in a significant loss of revenue and earnings , the brand remains as well-regarded as ever and uniquely positioned in the UK restaurant scene.
” Read more : Coronavirus : Pubs and restaurants forced to shut at 10pm from Thursday Alex Scrimgeour , chief executive of Cote Restaurants , added : “ Cote is a well-established business that traded strongly before the @ @ @ @ @ @ @ customers at home during lockdown .
“ New safety protocols enabled Cote to welcome back guests into the restaurants .
The entire Cote team is excited to continue its success story with the strong backing of Partners Group .
”

Cote Restaurants bought out of administration by Partners Group
Cote Restaurants has been bought by investment management firm Partners Group after the struggling casual dining chain fell into administration.
Administrator FTI Consulting said the deal had saved 94 of the firm’s 98 French-style restaurants, with all 3,148 employees working under the Cote brand transferred to the new owners.
However its Limeyard and Jackson & Rye brands were not included in the deal, resulting in the closure of three sites and 56 redundancies.
Cote Restaurants, which launched its first venue in 2007, said business had been trading well ahead of the UK coronavirus lockdown in March, reporting record sales for the previous financial year.
The closure of all its sites during the lockdown had a “huge impact” on the business. FTI Consulting said the lockdown had caused liquidity problems for the restaurant chain.
However the company said it has “adapted well to this new environment” and has appointed former Wagamama chief executive Jane Holbrook to join the board as chair.
Partners Group managing director Christian Ebert said: “We see a strong brand with a good following, great quality food and a differentiated operating setup.
“While the mandatory closure of all Cote’s restaurants due to COVID-19 resulted in a significant loss of revenue and earnings, the brand remains as well-regarded as ever and uniquely positioned in the UK restaurant scene.”
Alex Scrimgeour, chief executive of Cote Restaurants, added: “Cote is a well-established business that traded strongly before the crisis and moved quickly to serve loyal customers at home during lockdown.
“New safety protocols enabled Cote to welcome back guests into the restaurants. The entire Cote team is excited to continue its success story with the strong backing of Partners Group.”


cityam--2020-09-28--Sadiq Khan warns of return to 'bad old days' without new TfL bailout

Sadiq Khan has warned that Transport for London ( TfL ) will return to the “ bad old days ” of crumbling infrastructure and unreliable services if the government does not provide it with a second bailout .
City Hall officials are currently in negotiations with government over a new financial support package for the transport operator , which has had its finances hammered by the coronavirus pandemic .
Read more : Tory mayoral candidate calls for TfL to sell Tube station naming rights An initial £1.6bn bailout deal was agreed in May , but is due to run out @ @ @ @ @ @ @ said that it will require nearly £5bn over the next 18 months in order to stabilise its financial position .
Of this , £2bn will be required for the second half of this year , with a further £2.9bn required in the following financial year .
Without such funding , Khan warned that the economic recovery from the coronavirus pandemic would stall , with TfL unable to run safe , reliable , and frequent transport services that enable social distancing .
In addition , he said that planned upgrades to services such as @ @ @ @ @ @ @ to be shelved , as would investments into projects such as extending the DLR to Thamesmead .
“ The choice is stark ” , Khan said : “ A safe and effective transport network that continues to deliver for Londoners and support jobs in the capital and across the UK , or a Government-led spiral of disinvestment that sees vital infrastructure age and fail .
“ I remember what it was like 20 years ago before the sustained investment we ’ ve seen over the last two decades – crumbling Tube lines , @ @ @ @ @ @ @ lack of coordination .
We must not return to the bad old days.
” Before the Open newsletter : Start your day with the City View podcast and key market data At the peak of the pandemic , TfL ’ s passenger numbers were down over 90 per cent .
Although numbers had started to creep up again as lockdown restrictions were eased , the number of people on the Tube is still lagging at 35 per cent .
TfL is dependent on fares for 70 per cent of its revenues , having @ @ @ @ @ @ @ 2018 .
This compares to 38 per cent in New York and 47 per cent in Madrid ’ s transport system .
Tory London Assembly member Keith Prince accused Khan of playing political games with his comments .
“ Sadiq Khan has some brass neck to warn about underinvestment if TfL isn ’ t bailed out again given his record .
On the Mayor ’ s watch , 21 major transport upgrades have been delayed or cancelled due to Khan ’ s financial incompetence .
That ’ s not to mention Khan ’ @ @ @ @ @ @ @ been delayed yet again .
“ If the Mayor is serious about securing another bailout for TfL , Khan must work constructively with the Government to get TfL ’ s finances back on track .
“ Londoners are sick of Khan ’ s political press releases which do nothing to deliver for our city .
Khan ’ s TfL games are becoming predictable ; issue a shocking warning , agree a deal , and blame everything in it on the Government.
” Read more : Tory mayoral candidate Bailey hits out at Khan @ @ @ @ @ @ @ : “ The Government is engaging with Transport for London and the Mayor on the impacts of Covid-19 on TfL ’ s finances .
These discussions are ongoing and will ensure London has a safe , reliable network while delivering a fair deal to taxpayers .
“ We would rather avoid negotiating through the media , so it would not be appropriate to disclose further details at this stage .
”

Sadiq Khan warns of return to ‘bad old days’ without new TfL bailout
Sadiq Khan has asked for £4.9bn in new funding for TfL.
Sadiq Khan has warned that Transport for London (TfL) will return to the “bad old days” of crumbling infrastructure and unreliable services if the government does not provide it with a second bailout.
City Hall officials are currently in negotiations with government over a new financial support package for the transport operator, which has had its finances hammered by the coronavirus pandemic.
An initial £1.6bn bailout deal was agreed in May, but is due to run out on 17 October.
TfL has previously said that it will require nearly £5bn over the next 18 months in order to stabilise its financial position.
Of this, £2bn will be required for the second half of this year, with a further £2.9bn required in the following financial year.
Without such funding, Khan warned that the economic recovery from the coronavirus pandemic would stall, with TfL unable to run safe, reliable, and frequent transport services that enable social distancing.
In addition, he said that planned upgrades to services such as the Piccadilly and Bakerloo lines would have to be shelved, as would investments into projects such as extending the DLR to Thamesmead.
“The choice is stark”, Khan said: “A safe and effective transport network that continues to deliver for Londoners and support jobs in the capital and across the UK, or a Government-led spiral of disinvestment that sees vital infrastructure age and fail.
“I remember what it was like 20 years ago before the sustained investment we’ve seen over the last two decades – crumbling Tube lines, unreliable services, old-fashioned ticketing system and lack of coordination. We must not return to the bad old days.”
Before the Open newsletter: Start your day with the City View podcast and key market data
At the peak of the pandemic, TfL’s passenger numbers were down over 90 per cent. Although numbers had started to creep up again as lockdown restrictions were eased, the number of people on the Tube is still lagging at 35 per cent.
TfL is dependent on fares for 70 per cent of its revenues, having had its government operating grant removed in 2018. This compares to 38 per cent in New York and 47 per cent in Madrid’s transport system.
Tory London Assembly member Keith Prince accused Khan of playing political games with his comments.
“Sadiq Khan has some brass neck to warn about underinvestment if TfL isn’t bailed out again given his record.
On the Mayor’s watch, 21 major transport upgrades have been delayed or cancelled due to Khan’s financial incompetence. That’s not to mention Khan’s failure to deliver Crossrail which has been delayed yet again.
“If the Mayor is serious about securing another bailout for TfL, Khan must work constructively with the Government to get TfL’s finances back on track.
“Londoners are sick of Khan’s political press releases which do nothing to deliver for our city. Khan’s TfL games are becoming predictable; issue a shocking warning, agree a deal, and blame everything in it on the Government.”
A DfT spokesperson said: “The Government is engaging with Transport for London and the Mayor on the impacts of Covid-19 on TfL’s finances. These discussions are ongoing and will ensure London has a safe, reliable network while delivering a fair deal to taxpayers.
“We would rather avoid negotiating through the media, so it would not be appropriate to disclose further details at this stage.”


cityam--2020-09-28--Labour MP Claudia Webbe suspended from party over harassment charge

Labour backbench MP Claudia Webbe has been suspended from the party , after being charged with harassing a woman .
Webbe has also had the whip temporarily removed , meaning she can not represent Labour in parliament , according to Labour List .
Read more : Labour takes three-point lead over Tories in new poll The Crown Prosecution Service announced today that it had charged Webbe , MP for Leicester East , with “ an offence of harassment against one female ” and that she will appear at Westminster Magistrates ’ Court on 11 November .
The alleged harassment occurred @ @ @ @ @ @ @ .
Webbe has said she is “ innocent of any wrongdoing ” .
The Crown Prosecution Service added : “ Criminal proceedings against Ms Webbe are now active and she has the right to a fair trial .
“ It is extremely important that there should be no reporting , commentary or sharing of information online which could in any way prejudice these proceedings.
” Read more : Keir Starmer lashes out at Jeremy Corbyn and invokes Labour PMs in conference speech The 55-year-old was elected to parliament at the 2019 General Election @ @ @ @ @ @ @ did not stand after getting caught offering to buy male prostitutes cocaine on tape .
Webbe , a former councillor in Islington , is a part of Labour ’ s left faction and was a staunch supporter of former party leader Jeremy Corbyn .

Labour MP Claudia Webbe suspended from party over harassment charge
Labour backbench MP Claudia Webbe has been suspended from the party, after being charged with harassing a woman.
Webbe has also had the whip temporarily removed, meaning she cannot represent Labour in parliament, according to Labour List.
The Crown Prosecution Service announced today that it had charged Webbe, MP for Leicester East, with “an offence of harassment against one female” and that she will appear at Westminster Magistrates’ Court on 11 November.
The alleged harassment occurred between September 2018 and 26 April 2020.
Webbe has said she is “innocent of any wrongdoing”.
The Crown Prosecution Service added: “Criminal proceedings against Ms Webbe are now active and she has the right to a fair trial.
“It is extremely important that there should be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”
The 55-year-old was elected to parliament at the 2019 General Election, replacing former MP Keith Vaz who did not stand after getting caught offering to buy male prostitutes cocaine on tape.
Webbe, a former councillor in Islington, is a part of Labour’s left faction and was a staunch supporter of former party leader Jeremy Corbyn.


cityam--2020-09-28--London coronavirus cases: How many infections are in your London borough?

The number of confirmed coronavirus cases in London hit 48,829 today , with Brent the worst affected borough .
Figures released by Public Health England showed that the borough had recorded 2,292 confirmed Covid-19 cases as of today , while Barnet has had 2,275 .
Read more : UK lockdown : Zoos and drive-in cinemas could reopen from 15 June Croydon and Ealing have recorded 2,253 and 2,210 positive tests respectively .
Bromley had the fifth most London coronavirus cases with 1,990 .
The capital has had 11.1 per cent of the UK ’ s 439,013 confirmed cases .
The @ @ @ @ @ @ @ to have died of coronavirus within 28 days of contracting it has now reached 42,001 .
More restrictions are being announced in different regions on a near daily basis as the UK is hit by a second coronavirus wave .
There has been speculation that London may be put into an effective two-week lockdown to stem the rising tide of cases .
East London has the highest rates of new cases , with the boroughs of Redbrige , Barking and Dagenham , Tower Hamlets and Newham reporting high levels of infections .
Listen @ @ @ @ @ @ @ we chart the economic fallout and business impact of the coronavirus pandemic .
Sign up to City A.M. ’ s Midday Update newsletter , delivered to your inbox every lunchtime Data sourced from Public Health England , effective as of 4 August Health secretary Matt Hancock today imposed new restrictions today on a cluster of North East areas – including Newcastle-upon-Tyne , Gateshead , South Tyneside , Sunderland and County Durham – that bans indoor mixing between different households .
Fears are growing that similar restrictions may be implemented in the capital as @ @ @ @ @ @ @ is at “ breaking point ” .
Khan added that London has seen a “ sharp rise ” in 111 calls , hospital admissions and patients in intensive care units .
Pubs , restaurants and bars may be forced to shutter for two weeks in both , marking a return to so-called circuit breaker plans which were abandoned last week .
Supermarkets are ramping up their online delivery services amid fears over a second wave of coronavirus , after demand outpaced capacity during the UK-wide lockdown this summer .
Demand for home deliveries @ @ @ @ @ @ @ the government will impose stricter lockdown rules as coronavirus cases have surged .
Read more : Coronavirus : Supermarkets ramp up online services amid second wave fears Sainsbury ’ s announced this morning that it will grow its home delivery and click and collect capacity to 700,000 orders by the end of October , which is double the number of slots it had available in March .
As a result , the grocer will also extend its delivery times to operate between 6.30am and 11.30pm in order to serve more customers .

How many Covid-19 infections are there in your London borough?
London has seen a sharp drop in the number of recorded coronavirus cases over the past few days, after figures released on Friday showed the capital currently has the lowest R rate in the country.
A further 629 cases were recorded in the past 24 hours, taking the total number of positive tests in London since the start of the pandemic to 697,278.
It marks a significant drop since a record 19,871 daily cases were recorded on 29 December, as lockdown measures continue to drive down infections.
Several areas in the capital have seen case numbers drop threefold over the past fortnight, which in turn has pushed down the spread of infection.
Most boroughs in the capital now have a seven-day rate below 100 new cases per 100,000, but that figure is below 50 in some areas in central London.
Twenty-nine London borough areas, including the whole of east London which was hardest hit by the second wave, have a seven-day case rate below 100 new confirmed cases per 100,000.
Meanwhile, Southwark, Westminster, Camden, Kensington and Chelsea all recorded seven-day rates below 50. Lewisham saw the lowest case rate in the capital in the week to 24 February, with an average of 43 people infected per 100,000 population.
Meanwhile, Ealing currently has the highest case rate, with 123 cases per 100,000, followed by Hounslow at 115 and Hillingdon on 97.
Health chiefs have said all London boroughs need to get below a case rate of 100 before restrictions can begin to be lifted, starting with the reopening of schools on 8 March.
It comes after figures released last Friday showed London’s R rate remains at a best estimate of 0.6 to 0.8 — the lowest in the country, alongside the east of England and the South West.
The figure means infections may be falling anywhere between five and eight per cent each day.
However, separate figures released last week showed the percentage of people testing positive for coronavirus in London remains the highest of any English region.
Data published by the Office for National Statistics (ONS) showed around 1 in 63 Londoners were infected with the virus last week.
That compares to an estimated 1 in 80 people who contracted the virus in England as a whole in the week to 6 February, according to ONS figures.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
London coronavirus cases by borough (in alphabetical order)
Data sourced from Public Health England, accurate as of 4pm on Tuesday 2 March
Boroughs Rate of infection per 100,000 people in last 7 days Total confirmed cases since start of pandemic Barking and Dagenham 86 22,925 Barnet 75 29,569 Bexley 58 21,812 Brent 91 27,577 Bromley 48 23,857 Camden 42 13,683 Croydon 73 30,213 Ealing 123 29,807 Enfield 48 29,217 Greenwich 55 21,769 Hackney and City of London 57 21,234 Hammersmith and Fulham 76 12,564 Haringey 58 20,345 Harrow 95 19,917 Havering 65 26,383 Hillingdon 97 25,287 Hounslow 115 23,817 Islington 43 14,574 Kensington and Chelsea 43 8,643 Kingston upon Thames 47 11,764 Lambeth 49 23,625 Lewisham 39 21,226 Merton 79 15,719 Newham 61 34,574 Redbridge 72 31,965 Richmond upon Thames 55 10,430 Southwark 42 21,947 Sutton 80 15,509 Tower Hamlets 53 28,074 Waltham Forest 52 24,325 Wandsworth 63 21,377 Westminster 41 13,577
Before the Open newsletter: Start your day with the City View podcast and key market data


cityam--2020-09-28--Government looks to quell Tory rebellion over Covid restrictions

The government is looking at ways at stopping a Tory backbench revolt over the implementation of new Covid restrictions , according to health secretary Matt Hancock .
Hancock said he would meet with the revolt ’ s leader Graham Brady , chair of the powerful 1922 committee of backbench Tories , while also announcing that indoor mixing between households is now banned in Northumberland , North Tyneside , Newcastle-upon-Tyne , Gateshead , South Tyneside , Sunderland and County Durham .
The new measures are as a result of rising coronavirus cases in the North East as another 4,000 cases were @ @ @ @ @ @ @ powers allowing the Prime Minister to unilaterally impose coronavirus restrictions by a further six months will come before the House of Commons on Wednesday .
However , an amendment to the legislation by Brady would force the government to get parliamentary approval for all new coronavirus measures if passed .
It is believed there are enough Tory MPs in favour of the amendment for it to pass if all opposition parties vote for it too , with backbench Conservative MP Steve Baker saying yesterday that the current situation “ is not a fit @ @ @ @ @ @ @ told MPs today that the government was looking to find a solution to appease rebel Tory MPs .
“ We ’ re looking at further ways to ensure the House [ of Commons ] can be properly involved in the process , in advance if possible , ” Hancock said .
Before the Open newsletter : Start your day with the City View podcast and key market data “ I hope to provide the House with further details soon.
” It comes as the government is considering plans to ban social contact in @ @ @ @ @ @ @ be the most stringent restrictions the capital has faced in months .
This would see pubs , restaurants and bars close their doors , which would be a massive blow to the already ailing London economy .
Mayor of London Sadiq Khan has said the capital is at a “ tipping point ” as it has seen a “ sharp rise ” in Covid-related 111 calls , hospital admissions and patients in intensive care units .
A fresh London lockdown would likely enrage many Tory MPs who are already opposed to the current @ @ @ @ @ @ @ Sadiq Khan warns of return to ‘ bad old days ’ without new TfL bailout The Tory revolt is a sign of growing unrest among the backbenches , which has been bubbling under for months now .
Many of the parliamentary party ’ s libertarian and right-wing MPs have been disgruntled at the government ’ s willingness to swiftly apply new coronavirus restrictions , the amount the Treasury has spent during the pandemic and speculation that Rishi Sunak is considering tax rises to pay for the Budget deficit .

Government looks to quell Tory rebellion over Covid restrictions
Hospitality, leisure and retail groups have asked the government for extra help to handle the pandemic.
The government is looking at ways at stopping a Tory backbench revolt over the implementation of new Covid restrictions, according to health secretary Matt Hancock.
Hancock said he would meet with the revolt’s leader Graham Brady, chair of the powerful 1922 committee of backbench Tories, while also announcing that indoor mixing between households is now banned in Northumberland, North Tyneside, Newcastle-upon-Tyne, Gateshead, South Tyneside, Sunderland and County Durham.
The new measures are as a result of rising coronavirus cases in the North East as another 4,000 cases were repored today countrwide.
Legislation to extend powers allowing the Prime Minister to unilaterally impose coronavirus restrictions by a further six months will come before the House of Commons on Wednesday.
However, an amendment to the legislation by Brady would force the government to get parliamentary approval for all new coronavirus measures if passed.
It is believed there are enough Tory MPs in favour of the amendment for it to pass if all opposition parties vote for it too, with backbench Conservative MP Steve Baker saying yesterday that the current situation “is not a fit environment for free people”.
Hancock told MPs today that the government was looking to find a solution to appease rebel Tory MPs.
“We’re looking at further ways to ensure the House [of Commons] can be properly involved in the process, in advance if possible,” Hancock said.
Before the Open newsletter: Start your day with the City View podcast and key market data
“I hope to provide the House with further details soon.”
It comes as the government is considering plans to ban social contact in London for two weeks in what would be the most stringent restrictions the capital has faced in months.
This would see pubs, restaurants and bars close their doors, which would be a massive blow to the already ailing London economy.
Mayor of London Sadiq Khan has said the capital is at a “tipping point” as it has seen a “sharp rise” in Covid-related 111 calls, hospital admissions and patients in intensive care units.
A fresh London lockdown would likely enrage many Tory MPs who are already opposed to the current levels of restrictions.
Yesterday, Steve Baker told Sky News: “Liberty dies…with government exercising draconian powers without parliamentary scrutiny in advance.”
The Tory revolt is a sign of growing unrest among the backbenches, which has been bubbling under for months now.
Many of the parliamentary party’s libertarian and right-wing MPs have been disgruntled at the government’s willingness to swiftly apply new coronavirus restrictions, the amount the Treasury has spent during the pandemic and speculation that Rishi Sunak is considering tax rises to pay for the Budget deficit.


cityam--2020-09-28--Coronavirus: Supermarkets ramp up online services amid second wave fears

Supermarkets are ramping up their online delivery services amid fears over a second wave of coronavirus , after demand outpaced capacity during the UK-wide lockdown this summer .
Demand for home deliveries has recently spiked again over concerns that the government will impose stricter lockdown rules as coronavirus cases have surged .
It was reported today that London could be subjected to a two-week lockdown , with a ban on households mixing .
Sainsbury ’ s announced this morning that it will grow its home delivery and click and collect capacity to 700,000 orders by the end of October , @ @ @ @ @ @ @ it had available in March .
The grocer will also extend its delivery times to operate between 6.30am and 11.30pm in order to serve more customers .
Meanwhile , Morrisons unveiled a delivery service for university students that have been asked to self-isolate .
The “ SOS Serve our Students ” delivery service will launch at Manchester Metropolitan University , where around 1,500 students are in quarantine , before it is rolled out to other campuses .
Morrisons chief executive David Potts said : “ Students have asked for our help and that @ @ @ @ @ @ @ they can safely access affordable food at this very difficult time .
We ’ re playing our full part in feeding the nation so that no one is left behind.
” Last week the grocer launched a subscription box service , saying demand for online deliveries had soared 56 per cent during the week as coronavirus cases continued to rise .
It also became the first supermarket to reinstate limits on the number of essential products customers can buy amid concerns over stockpiling .
It limited purchases of products such as toilet and @ @ @ @ @ @ @ more : Eat Out to Help Out wipes £155m off supermarket sales The company said it had sufficient stock levels but wanted to make sure the products were “ available to everyone ” .
Tesco and Aldi also brought in similar restrictions in order to prevent a repeat of the panic buying seen at the beginning of the pandemic in March .

Coronavirus: Supermarkets ramp up online services amid second wave fears
Delivery slots for the major supermarkets were hard to come by in March and April
Supermarkets are ramping up their online delivery services amid fears over a second wave of coronavirus, after demand outpaced capacity during the UK-wide lockdown this summer.
Demand for home deliveries has recently spiked again over concerns that the government will impose stricter lockdown rules as coronavirus cases have surged.
It was reported today that London could be subjected to a two-week lockdown, with a ban on households mixing.
Sainsbury’s announced this morning that it will grow its home delivery and click and collect capacity to 700,000 orders by the end of October, which is double the number of slots it had available in March.
The grocer will also extend its delivery times to operate between 6.30am and 11.30pm in order to serve more customers.
Fresh food for freshers
Meanwhile, Morrisons unveiled a delivery service for university students that have been asked to self-isolate.
The “SOS Serve our Students” delivery service will launch at Manchester Metropolitan University, where around 1,500 students are in quarantine, before it is rolled out to other campuses.
Morrisons chief executive David Potts said: “Students have asked for our help and that’s why we are making sure they can safely access affordable food at this very difficult time. We’re playing our full part in feeding the nation so that no one is left behind.”
Last week the grocer launched a subscription box service, saying demand for online deliveries had soared 56 per cent during the week as coronavirus cases continued to rise.
It also became the first supermarket to reinstate limits on the number of essential products customers can buy amid concerns over stockpiling. It limited purchases of products such as toilet and disinfectant to three per customer.
The company said it had sufficient stock levels but wanted to make sure the products were “available to everyone”.
Tesco and Aldi also brought in similar restrictions in order to prevent a repeat of the panic buying seen at the beginning of the pandemic in March.


cityam--2020-09-28--Could decarbonisation be the mega-trend of the next decade?

US equities have led global stock markets higher over the past decade .
In the last ten years , US equities have returned a stellar 292 % , compared to just 73 % for global equities ( as measured by the MSCI USA Index and MSCI AC World ex US Index respectively , in US dollar terms , as at 31 August 2020 ) .
But the past isn ’ t always a good guide to the future .
As climate change moves up the political and social agenda , decarbonisation could be the mega-trend of the next decade .
@ @ @ @ @ @ @ best placed for the transition to a low carbon future are listed outside the US .
Which companies dominate the wind and solar market ?
The US has a number of companies who are the dominant players in their field .
But this isn ’ t always the case if we look at renewable energy .
Take the wind energy industry , which is dominated globally by a handful of companies .
Only one of the major manufacturers – GE – is a US firm .
The biggest global operators are Denmark ’ @ @ @ @ @ @ @ Siemens Gamesa .
Chinese firms tend to have a strong focus on their domestic market .
Meanwhile , the solar industry is heavily dominated by Chinese firms .
China leads the way in the production of polysilicon , as well as in solar cell manufacturing capacity .
This is a fairly commoditised industry , with limited scope for generating above-average profit margins .
Nonetheless , if there is a boom in solar then it is these Chinese firms who will benefit .
First Solar , a US company , is one of the @ @ @ @ @ @ @ .
When it comes to pure electric vehicles , US-listed Tesla is the brand name everyone knows .
It currently leads the way in terms of sales of battery electric vehicles ( BEVs ) , as opposed to hybrids .
But that dominance may not last much longer .
Germany ’ s Volkswagen has high ambitions for BEV production , and is poised to overtake Tesla by 2025 when it is targeting 1.4 million BEV sales .
The Renault/Nissan/Mitsubishi alliance – producers of the Leaf – and China ’ s Geely are also @ @ @ @ @ @ @ source : CNN Business 2019 . )
From a decarbonisation point of view , the important part of a battery electric vehicle is the battery .
Here again , non-US firms are the market leaders .
The battery supply chain is dominated by Asian companies such as South Korea ’ s LG Chem and Samsung SDI , Japan ’ s Panasonic , and CATL in China .
US and European car firms may try to source more batteries locally as they ramp up production of BEVs , but for now the technical know-how @ @ @ @ @ @ @ is also the case that the main buyers of electric vehicles currently are Chinese and European consumers .
This faster market adoption will bring economies of scale , development of technical knowhow , and faster growth in related services businesses to support the EV industry .
Three more stories from Schroders you might like : – How working flexibly can give investors an edge – Why digital infrastructure could emerge stronger from Covid-19 – Seven reasons behind the resilience of “ green ” investments in the pandemic Is hydrogen the way forward ?
@ @ @ @ @ @ @ on the use of electricity from renewable sources .
However , hydrogen could be an alternative energy source for industries that are hard to decarbonise using electricity .
Hydrogen can be produced from fossil fuels with the emissions from the process captured via carbon capture and storage ( CCS ) technologies .
It can also be produced via renewable power , and over the coming five to ten years this renewable ( emission free ) derived hydrogen is likely to become cheaper than fossil fuel hydrogen .
The advantage of hydrogen is that @ @ @ @ @ @ @ burned in an engine .
Converting hydrogen into electricity can also take place via a hydrogen fuel cell , which consumes hydrogen and oxygen .
When a fuel cell is continuously supplied with hydrogen and oxygen , the fuel cell can generate electricity with water as the only by-product .
Hydrogen can also be used to store surplus power produced via renewable sources .
This power can then be used at a time when wind and solar are not producing electricity , smoothing out the peaks and troughs of renewables production .
Currently @ @ @ @ @ @ @ and this has weighed on demand .
However , the sharp reduction in the cost of other green energy sources in recent years indicates that hydrogen will follow the same path .
Japan and Europe are currently the leaders in developing hydrogen power .
Japan adopted its “ Basic Hydrogen Strategy ” back in 2017 with the aim of reducing hydrogen costs to the same level as conventional energy sources , thereby ensuring energy security and reducing emissions .
Our Data Insights Unit used its expertise in managing alternative data sets to analyse @ @ @ @ @ @ @ related to hydrogen production .
They found that the top three were all Japanese firms : Toshiba , Honda and Asahi Kasei .
In addition , European companies such as Siemens , Thyssen , NEL , and ITM are all at the forefront of the development of hydrogen electrolysis equipment .
The EU ’ s new investment programme to build out a hydrogen infrastructure is likely to give these companies a major head-start over foreign competition in this early stage of the industry development .
A hydrogen strategy forms part of the European @ @ @ @ @ @ @ The strategy set out an ambition for one million tonnes of renewable hydrogen to be produced by 2024 , rising to ten million tonnes by 2030 .
Is there political will for decarbonisation ?
Europe has often been on the front foot when it comes to recognising the climate challenge on the political agenda .
Asian countries are fast catching up in this regard though too .
The same urgency to tackle climate change and switch to renewable power sources has so far been lacking in the US .
This could partially account @ @ @ @ @ @ @ laggards in the decarbonisation journey .
There have been some ambitious recent decarbonisation policies and ambitions from the likes of Microsoft and Amazon .
But in general European companies are much more focused on decarbonising their own operations and supply chains , with more ambitious long term goals aligned to the Paris Agreement goal of limiting temperature increases to 2 degrees , and intermediate milestones along the way to track them against .
The table below demonstrates this .
Our Sustainable Investment Team analysed over 10,000 global companies for their commitment to science @ @ @ @ @ @ @ climate change .
SBTI essentially means having a strategy committing the company to greenhouse gas ( GHG ) reduction targets consistent with the pace recommended by climate scientists to limit the worst impacts of climate change .
The regional differences are striking .
Despite accounting for only 13 % of listed companies analysed , Western European companies account for 38 % of the total number with science based targets .
North American companies only make up 22 % of this group , despite being 26 % of the listed universe .
There is @ @ @ @ @ @ @ in Developed Asia , Latin America , and Emerging Europe committed to science based climate targets than there is in North America .
It is clear that European companies are much further down the path of optimising their operations for a rapid transition to a low carbon economy , something that will help them competitively as carbon emissions become a more significant liability in future .
As we go into a phase where carbon taxes and carbon prices rise are likely to rise globally to address climate change , this head-start in reducing @ @ @ @ @ @ @ valuable competitive and cost advantage .
The US stock market dominance of the past decade has largely been thanks to the strong performance of a handful of major stocks in a few key sectors .
The FAANGs ( Facebook , Amazon , Apple , Netflix , Google ) have led the way .
These fantastic companies will likely continue to be leaders in their fields .
However , with momentum growing around the need for a low carbon future , we think stock market investors should pay heed to the leadership role that @ @ @ @ @ @ @ • Read more : Move over US : time for a new stock market leader ?
Any references to stocks/companies are for illustrative purposes only and not a recommendation to buy and/or sell .
Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions .
If you are unsure as to the suitability of any investment speak to a independent financial advisor The value of investments and the income from them may go down as well as up and investors may not get @ @ @ @ @ @ @ Information : This communication is marketing material .
The views and opinions contained herein are those of the author ( s ) on this page , and may not necessarily represent views expressed or reflected in other Schroders communications , strategies or funds .
This material is intended to be for information purposes only and is not intended as promotional material in any respect .
The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument .
It is not intended to provide and should @ @ @ @ @ @ @ legal or tax advice , or investment recommendations .
Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions .
Past performance is not a reliable indicator of future results .
The value of an investment can go down as well as up and is not guaranteed .
All investments involve risks including the risk of possible loss of principal .
Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy .
Some information quoted was obtained @ @ @ @ @ @ @ reliable .
No responsibility can be accepted for errors of fact obtained from third parties , and this data may change with market conditions .
This does not exclude any duty or liability that Schroders has to its customers under any regulatory system .
Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell .
The opinions in this material include some forecasted views .
We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know .
@ @ @ @ @ @ @ any forecasts or opinions will be realised .
These views and opinions may change .
To the extent that you are in North America , this content is issued by Schroder Investment Management North America Inc. , an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada .
For all other users , this content is issued by Schroder Investment Management Limited , 1 London Wall Place , London EC2Y 5AU .
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Could decarbonisation be the mega-trend of the next decade?
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US equities have led global stock markets higher over the past decade. In the last ten years, US equities have returned a stellar 292%, compared to just 73% for global equities (as measured by the MSCI USA Index and MSCI AC World ex US Index respectively, in US dollar terms, as at 31 August 2020).
But the past isn’t always a good guide to the future. As climate change moves up the political and social agenda, decarbonisation could be the mega-trend of the next decade. And we think many of the companies best placed for the transition to a low carbon future are listed outside the US.
Which companies dominate the wind and solar market?
The US has a number of companies who are the dominant players in their field. But this isn’t always the case if we look at renewable energy.
Take the wind energy industry, which is dominated globally by a handful of companies. Only one of the major manufacturers – GE – is a US firm. The biggest global operators are Denmark’s Vestas Wind and the German-Spanish group Siemens Gamesa. Chinese firms tend to have a strong focus on their domestic market.
Meanwhile, the solar industry is heavily dominated by Chinese firms. China leads the way in the production of polysilicon, as well as in solar cell manufacturing capacity. This is a fairly commoditised industry, with limited scope for generating above-average profit margins. Nonetheless, if there is a boom in solar then it is these Chinese firms who will benefit. First Solar, a US company, is one of the only notable non-Chinese firms in the industry.
Which companies dominate the electric vehicle market?
When it comes to pure electric vehicles, US-listed Tesla is the brand name everyone knows. It currently leads the way in terms of sales of battery electric vehicles (BEVs), as opposed to hybrids.
But that dominance may not last much longer. Germany’s Volkswagen has high ambitions for BEV production, and is poised to overtake Tesla by 2025 when it is targeting 1.4 million BEV sales. The Renault/Nissan/Mitsubishi alliance – producers of the Leaf – and China’s Geely are also poised to catch Tesla by 2025 (source: CNN Business 2019.)
From a decarbonisation point of view, the important part of a battery electric vehicle is the battery. Here again, non-US firms are the market leaders. The battery supply chain is dominated by Asian companies such as South Korea’s LG Chem and Samsung SDI, Japan’s Panasonic, and CATL in China.
US and European car firms may try to source more batteries locally as they ramp up production of BEVs, but for now the technical know-how resides with these Asian companies.
It is also the case that the main buyers of electric vehicles currently are Chinese and European consumers. This faster market adoption will bring economies of scale, development of technical knowhow, and faster growth in related services businesses to support the EV industry.
Three more stories from Schroders you might like:
– How working flexibly can give investors an edge
– Why digital infrastructure could emerge stronger from Covid-19
– Seven reasons behind the resilience of “green” investments in the pandemic
Is hydrogen the way forward?
Much of the conversation around decarbonisation focuses on the use of electricity from renewable sources. However, hydrogen could be an alternative energy source for industries that are hard to decarbonise using electricity.
Hydrogen can be produced from fossil fuels with the emissions from the process captured via carbon capture and storage (CCS) technologies. It can also be produced via renewable power, and over the coming five to ten years this renewable (emission free) derived hydrogen is likely to become cheaper than fossil fuel hydrogen.
The advantage of hydrogen is that it does not emit carbon dioxide when burned in an engine. Converting hydrogen into electricity can also take place via a hydrogen fuel cell, which consumes hydrogen and oxygen. When a fuel cell is continuously supplied with hydrogen and oxygen, the fuel cell can generate electricity with water as the only by-product.
Hydrogen can also be used to store surplus power produced via renewable sources. This power can then be used at a time when wind and solar are not producing electricity, smoothing out the peaks and troughs of renewables production.
Currently the cost of producing hydrogen is elevated and this has weighed on demand. However, the sharp reduction in the cost of other green energy sources in recent years indicates that hydrogen will follow the same path.
Japan and Europe are currently the leaders in developing hydrogen power. Japan adopted its “Basic Hydrogen Strategy” back in 2017 with the aim of reducing hydrogen costs to the same level as conventional energy sources, thereby ensuring energy security and reducing emissions.
Our Data Insights Unit used its expertise in managing alternative data sets to analyse which companies are registering the most patents related to hydrogen production. They found that the top three were all Japanese firms: Toshiba, Honda and Asahi Kasei.
In addition, European companies such as Siemens, Thyssen, NEL, and ITM are all at the forefront of the development of hydrogen electrolysis equipment. The EU’s new investment programme to build out a hydrogen infrastructure is likely to give these companies a major head-start over foreign competition in this early stage of the industry development.
A hydrogen strategy forms part of the European Union’s recently-announced Green Deal. The strategy set out an ambition for one million tonnes of renewable hydrogen to be produced by 2024, rising to ten million tonnes by 2030.
Is there political will for decarbonisation?
Europe has often been on the front foot when it comes to recognising the climate challenge on the political agenda. Asian countries are fast catching up in this regard though too.
The same urgency to tackle climate change and switch to renewable power sources has so far been lacking in the US. This could partially account for why US corporates are currently relative laggards in the decarbonisation journey.
There have been some ambitious recent decarbonisation policies and ambitions from the likes of Microsoft and Amazon. But in general European companies are much more focused on decarbonising their own operations and supply chains, with more ambitious long term goals aligned to the Paris Agreement goal of limiting temperature increases to 2 degrees, and intermediate milestones along the way to track them against.
The table below demonstrates this. Our Sustainable Investment Team analysed over 10,000 global companies for their commitment to science based target initiatives (SBTIs) on climate change. SBTI essentially means having a strategy committing the company to greenhouse gas (GHG) reduction targets consistent with the pace recommended by climate scientists to limit the worst impacts of climate change.
The regional differences are striking. Despite accounting for only 13% of listed companies analysed, Western European companies account for 38% of the total number with science based targets. North American companies only make up 22% of this group, despite being 26% of the listed universe.
There is also a higher proportion of listed companies in Developed Asia, Latin America, and Emerging Europe committed to science based climate targets than there is in North America.
It is clear that European companies are much further down the path of optimising their operations for a rapid transition to a low carbon economy, something that will help them competitively as carbon emissions become a more significant liability in future.
As we go into a phase where carbon taxes and carbon prices rise are likely to rise globally to address climate change, this head-start in reducing their own emissions will become a more valuable competitive and cost advantage.
The US stock market dominance of the past decade has largely been thanks to the strong performance of a handful of major stocks in a few key sectors. The FAANGs (Facebook, Amazon, Apple, Netflix, Google) have led the way.
These fantastic companies will likely continue to be leaders in their fields. However, with momentum growing around the need for a low carbon future, we think stock market investors should pay heed to the leadership role that non-US companies are taking in decarbonisation.
Any references to stocks/companies are for illustrative purposes only and not a recommendation to buy and/or sell. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. If you are unsure as to the suitability of any investment speak to a independent financial advisor
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada. For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.


cityam--2020-09-29--Amigo shareholders narrowly reject founder's comeback bid

Shareholders at embattled subprime loans firm Amigo have narrowly voted down a bid to restore founder James Benamor to the company as director .
At today ’ s general meeting , 57.2 per cent of shareholders voted against a resolution that would have reappointed Benamor , despite the board unanimously recommending the proposal be rejected .
Read more : Incoming Amigo boss quits before starting after board dispute Writing on Twitter after the results were released , Benamor said : “ Whilst we didn ’ t win , shareholders have sent a strong message today .
‘ Protect shareholder interests @ @ @ @ @ @ @ , or you will be replaced with a capable team.
’ “ Shares in the firm plunged 11.9 per cent after the meeting .
Noting the number of shareholders who had voted in favour of bringing back the FTSE 250 firm ’ s former boss , Amigo ’ s board said it would ensure an “ effective dialogue with shareholders going forward ” .
Last month Benamor , who stepped down from the firm after it listed in 2018 , launched his comeback bid in a public spat with the firm over its @ @ @ @ @ @ @ Start your day with the City View podcast and key market data He had also called for the resignation of acting chair Roger Lovering and finance chief Nayan Kisnadwala , both of whom were reelected to the board by a narrow margin today .
Last week chief executive designate Glen Crawford , who had run the firm between 2016 and 2019 , stepped down again before he had resumed his position .
The board said that he stepped down due to a “ divergence of views with the majority of the board ” @ @ @ @ @ @ @ as a director on 10 August , will become chief executive instead .
Benamor ’ s return as a director was to be the first step in a process that would see him reappointed chief executive of the business , which he set up in 2005 .
Read more : Amigo seeks to calm nerves as battle for future hots up The firm has been swamped by thousands of complaints from customers who say they should never have been granted a loan .
Amigo is being investigated by the Financial Conduct Authority ( @ @ @ @ @ @ @ creditworthiness of customers , and has stopped almost all lending amid the coronavirus pandemic and the probe .

Amigo shareholders narrowly reject founder’s comeback bid
Shareholders at embattled subprime loans firm Amigo have narrowly voted down a bid to restore founder James Benamor to the company as director.
At today’s general meeting, 57.2 per cent of shareholders voted against a resolution that would have reappointed Benamor, despite the board unanimously recommending the proposal be rejected.
Writing on Twitter after the results were released, Benamor said: “Whilst we didn’t win, shareholders have sent a strong message today. ‘Protect shareholder interests, cut costs, rebuild value fast, or you will be replaced with a capable team.’ “
In July Shareholders backed the board 9-1. Today they held on to their jobs by a few %.
Whilst we didn’t win, shareholders have sent a strong message today. “Protect shareholder interests, cut costs, rebuild value fast, or you will be replaced with a capable team.” — James Benamor (@JamesBenamor) September 29, 2020
Shares in the firm plunged 11.9 per cent after the meeting.
Noting the number of shareholders who had voted in favour of bringing back the FTSE 250 firm’s former boss, Amigo’s board said it would ensure an “effective dialogue with shareholders going forward”.
Last month Benamor, who stepped down from the firm after it listed in 2018, launched his comeback bid in a public spat with the firm over its strategy.
Before the Open newsletter: Start your day with the City View podcast and key market data
He had also called for the resignation of acting chair Roger Lovering and finance chief Nayan Kisnadwala, both of whom were reelected to the board by a narrow margin today.
Last week chief executive designate Glen Crawford, who had run the firm between 2016 and 2019, stepped down again before he had resumed his position.
The board said that he stepped down due to a “divergence of views with the majority of the board”.
Gary Jennison, who joined Amigo as a director on 10 August, will become chief executive instead.
Benamor’s return as a director was to be the first step in a process that would see him reappointed chief executive of the business, which he set up in 2005.
The firm has been swamped by thousands of complaints from customers who say they should never have been granted a loan.
Amigo is being investigated by the Financial Conduct Authority (FCA) over how it assesses the creditworthiness of customers, and has stopped almost all lending amid the coronavirus pandemic and the probe.


cityam--2020-09-29--Boris Johnson vows to end 'bogus' UK discrimination against further education

Boris Johnson has vowed to end the “ bogus distinction ” between further and higher education by providing £2.5bn in skills training and increasing access to loans for technical courses .
This will include free courses to any adult that does not have an A-level , or similar , qualification from April and increased funding to SMEs to take on apprentices as a part of a previously announced multi-billion pound skills fund .
Further education colleges will receive £1.5bn to upgrade facilities and make repairs as a part of the increased funding .
Johnson also said in his speech – @ @ @ @ @ @ @ – that his changes would make it just as easy to get a loan for a technical course than for a university degree .
The Prime Minister said the UK needed “ radical change ” to encourage more people to take up further education .
“ A growing minority of people leave university and work in a non-graduate job and wonder if they did the right thing , ” he said .
Before the Open newsletter : Start your day with the City View podcast and key market data “ Business isn ’ @ @ @ @ @ @ @ and many working adults are stuck in jobs without much future when they ’ re hungry for new opportunities.
” The announcement fills out Rishi Sunak ’ s £2.5bn skills announcement in the March Budget .
Johnson said that the UK needed to get more people into further education training like in other European countries .
Only 10 per cent of Britons hold a Higher Technical Qualification , while 34 per cent of Canadians and 20 per cent of Germans hold equivalent qualifications .
The Prime Minister said that the post-Covid economy in @ @ @ @ @ @ @ work in jobs that do not require university education .
“ Our economy has been shaken by covid , and in the hand-to-mouth scrabblings of the pandemic the shortcomings of our labour market – and our educational system – have been painfully apparent , ” he said .
“ We seem on the one hand to have too few of the right skills for the jobs our economy creates , and on the other hand too many graduates with degrees which don ’ t get them the jobs that they want.
” He @ @ @ @ @ @ @ end its “ pointless , snooty , and frankly vacuous ” distinction between further education and higher education .
“ We ’ ve got to end the pointless , nonsensical gulf that has been fixed for generations – more than 100 years – between the so-called academic and the so-called practical varieties of education , ” he said .
Jane Gratton , head of people policy at the British Chambers of Commerce , said the changes represented “ an important step toward a more agile adult skills system ” .
Read more : @ @ @ @ @ @ @ gap — or face an unemployment crisis “ Apprenticeships will remain crucial to solving the skills crisis and employers need support to recruit and retain apprentices throughout the pandemic as cashflow restrictions force firms to make difficult choices , ” she said .
“ The government ’ s renewed focus on further education , greater investment in technical and digital skills and a more flexible skills system must go hand in hand with high quality local delivery that responds quickly to the growth aspirations of business .
”

Boris Johnson vows to end ‘bogus’ UK discrimination against further education
Britain’s Prime Minister Boris Johnson reacts as he talks with students during his visit to Exeter College in Exeter, southwest England on September 29, 2020. (Photo by Finnbarr Webster / POOL / AFP) (Photo by FINNBARR WEBSTER/POOL/AFP via Getty Images)
Boris Johnson has vowed to end the “bogus distinction” between further and higher education by providing £2.5bn in skills training and increasing access to loans for technical courses.
This will include free courses to any adult that does not have an A-level, or similar, qualification from April and increased funding to SMEs to take on apprentices as a part of a previously announced multi-billion pound skills fund.
Further education colleges will receive £1.5bn to upgrade facilities and make repairs as a part of the increased funding.
Johnson also said in his speech – delivered at an Exeter further education college – that his changes would make it just as easy to get a loan for a technical course than for a university degree.
The Prime Minister said the UK needed “radical change” to encourage more people to take up further education.
“A growing minority of people leave university and work in a non-graduate job and wonder if they did the right thing,” he said.
Before the Open newsletter: Start your day with the City View podcast and key market data
“Business isn’t happy, the economy is underproductive and many working adults are stuck in jobs without much future when they’re hungry for new opportunities.”
Johnson said that the UK needed to get more people into further education training like in other western countries.
Only 10 per cent of Britons hold a Higher Technical Qualification, while 34 per cent of Canadians and 20 per cent of Germans hold equivalent qualifications.
The Prime Minister said that the post-Covid economy in particular will need more people able to work in jobs that do not require university education.
“Our economy has been shaken by covid, and in the hand-to-mouth scrabblings of the pandemic the shortcomings of our labour market – and our educational system – have been painfully apparent,” he said.
“We seem on the one hand to have too few of the right skills for the jobs our economy creates, and on the other hand too many graduates with degrees which don’t get them the jobs that they want.”
He also said that the UK needed to end its “pointless, snooty, and frankly vacuous” distinction between further education and higher education.
“We’ve got to end the pointless, nonsensical gulf that has been fixed for generations – more than 100 years – between the so-called academic and the so-called practical varieties of education,” he said.
Jane Gratton, head of people policy at the British Chambers of Commerce, said the changes represented “an important step toward a more agile adult skills system”.
“Apprenticeships will remain crucial to solving the skills crisis and employers need support to recruit and retain apprentices throughout the pandemic as cashflow restrictions force firms to make difficult choices,” she said.
“The government’s renewed focus on further education, greater investment in technical and digital skills and a more flexible skills system must go hand in hand with high quality local delivery that responds quickly to the growth aspirations of business.”