cityam--2020-06-07--Heathrow boss could axe a third of jobs amid quarantine travel row

Heathrow Airport ’ s chief executive has warned that 25,000 jobs may be lost at the airport if the government ’ s quarantine rules are not relaxed , or air bridges not established , within the next two weeks .
Those losses would largely come from airline redundancies but speaking to City A.M. ’ s City View podcast , John Holland-Kaye also said a decision on cutting a third of Heathrow ’ s directly employed workforce ( of roughly 7,000 ) was imminent unless steps are taken to lift the blanket regulations .
He said : “ We need the @ @ @ @ @ @ @ a very cool , coordinated way to , to start to reopen aviation .
But at the moment we ’ re being held back .
“ 76,000 people are employed at Heathrow .
That represents one in four households in the local community , so if we start cutting jobs en masse it will have a devastating impact on local communities .
‘ There would be 25,000 people out of work .
That would be a devastating blow to West London and the Thames Valley ” .
Holland-Kaye said he already “ cut @ @ @ @ @ @ @ cut a third of our management , but I ’ ve held off from cutting front line roles as long as I can , ” adding he was “ really waiting to see what the government is going to do to reopen borders.
” He said “ if we start cutting jobs en masse that has a devastating impact on local communities.
” He added : “ If I can ’ t see any prospect of revenue coming in I ’ ve got to start significantly cutting our people costs , but I @ @ @ @ @ @ @ more : Priti Patel lays out details of 14-day quarantine plan Under the government ’ s new rules , which were laid out in full by home secretary Priti Patel last week , almost everyone entering England will from tomorrow have to quarantine for 14 days .
The plan has met with outcry from airlines , with British Airways , Ryanair and Easyjet having written to ministers criticising the “ wholly unjustified and disproportionate ” nature of the plan .
Holland-Kaye said the UK needed to “ move away from the quarantine idea @ @ @ @ @ @ @ that is a little bit more targeted .
“ In the short term , that is probably having air bridges which allow travel between the UK , and other low risk countries .
“ That ’ s something that the Prime Minister himself has talked about , and where we really need the government to lay out his plans for air bridges very quickly so we can start planning ahead for which countries will be opening up ” .
The government has confirmed that air bridges will not be in place initially , @ @ @ @ @ @ @ every three weeks .
In the long-term , Holland-Kaye said , the UK should seek to lead the establishment of a common set of international health screening standards that will allow people to travel freely and safely .
Before the Open : Get the jump on the markets with our early morning newsletter He added that until the quarantine is lifted , numbers at Heathrow , which have averaged between 5000 and 7000 passengers a day throughout April and May , would remain severely depressed .
Last year Heathrow handled more than 80m @ @ @ @ @ @ @ be a “ few years ” until it reached such numbers again .
“ We have a range of forecasts .
Demand for aviation is going to come back and people will still want to fly , and so I think we will get back [ to 80m passengers ] within a few years ” , he said .
He warned that the crisis would lead to an economic downturn , but said he did not know how long such a recession will last .
But , Holland-Kaye added , “ we have @ @ @ @ @ @ @ on its feet and aviation has a vital role to play in that because we are the lifeblood of the UK economy ” .
Business travel will be the last piece of the puzzle to return once flying picks up , he predicted , but insisted that new technology such as Zoom would not make it obsolete .
Read more : UK quarantine : Boris Johnson says UK will ‘ certainly develop ’ air bridges “ I don ’ t think that using teams and Skype and Zoom will entirely replace business travel @ @ @ @ @ @ @ is a lot of work that needs to be done by people negotiating export deals .
All of our service industries , which the UK is so good at , are done on the ground .
A lot of contractors who need to move around and be physically in a particular place .
“ So the demand for that will still be there ” , he finished .
Holland-Kaye also said he had “ a lot of sympathy ” for British Airways , which has come in for heavy criticism for its use @ @ @ @ @ @ @ while making a huge tranche of its employees redundant .
“ BA have said they are burning through £170m every week .
That ’ s a phenomenal amount of money , and they ’ ve got to take some extreme measures to save themselves .
Read more : Heathrow calls for border reopening plan as passenger numbers fall 97 per cent “ And in the absence of any revenue , the only thing they can do to buy themselves time is to cut costs .
“ And as I said earlier , no @ @ @ @ @ @ @ .
But they ’ ve got to take the best judgement they can ” , he said .

Exclusive: Heathrow warns of 25,000 job losses amid quarantine travel row
Heathrow Airport’s chief executive has warned that 25,000 jobs may be lost at the airport if the government’s quarantine rules are not relaxed, or air bridges not established, within the next two weeks.
Those losses would largely come from airline redundancies but speaking to City A.M.’s City View podcast, John Holland-Kaye also said a decision on cutting a third of Heathrow’s directly employed workforce (of roughly 7,000) was imminent unless steps are taken to lift the blanket regulations.
He said: “We need the government to move quickly, and in a very cool, coordinated way to, to start to reopen aviation. But at the moment we’re being held back.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
“76,000 people are employed at Heathrow. That represents one in four households in the local community, so if we start cutting jobs en masse it will have a devastating impact on local communities.
‘There would be 25,000 people out of work. That would be a devastating blow to West London and the Thames Valley”.
Holland-Kaye said he already “cut a third of our operating costs, cut a third of our management, but I’ve held off from cutting front line roles as long as I can,” adding he was “really waiting to see what the government is going to do to reopen borders.”
He said “if we start cutting jobs en masse that has a devastating impact on local communities”. He added: “If I can’t see any prospect of revenue coming in I’ve got to start significantly cutting our people costs, but I want to avoid doing that.”
Under the government’s new rules, which were laid out in full by home secretary Priti Patel last week, almost everyone entering England will from tomorrow have to quarantine for 14 days.
The plan has met with outcry from airlines, with British Airways, Ryanair and Easyjet having written to ministers criticising the “wholly unjustified and disproportionate” nature of the plan.
Holland-Kaye said the UK needed to “move away from the quarantine idea, where basically nobody flies to something that is a little bit more targeted.
“In the short term, that is probably having air bridges which allow travel between the UK, and other low risk countries.
“That’s something that the Prime Minister himself has talked about, and where we really need the government to lay out his plans for air bridges very quickly so we can start planning ahead for which countries will be opening up”.
The government has confirmed that air bridges will not be in place initially, but the quarantine policy will be reviewed every three weeks.
In the long-term, Holland-Kaye said, the UK should seek to lead the establishment of a common set of international health screening standards that will allow people to travel freely and safely.
Before the Open: Get the jump on the markets with our early morning newsletter
He added that until the quarantine is lifted, numbers at Heathrow, which have averaged between 5000 and 7000 passengers a day throughout April and May, would remain severely depressed.
Last year Heathrow handled more than 80m passengers, but Holland-Kaye said it would be a “few years” until it reached such numbers again.
“We have a range of forecasts. Demand for aviation is going to come back and people will still want to fly, and so I think we will get back [to 80m passengers] within a few years”, he said.
He warned that the crisis would lead to an economic downturn, but said he did not know how long such a recession will last.
But, Holland-Kaye added, “we have to plan for getting the economy back on its feet and aviation has a vital role to play in that because we are the lifeblood of the UK economy”.
Business travel will be the last piece of the puzzle to return once flying picks up, he predicted, but insisted that new technology such as Zoom would not make it obsolete.
“I don’t think that using teams and Skype and Zoom will entirely replace business travel”, he said:
“There is a lot of work that needs to be done by people negotiating export deals. All of our service industries, which the UK is so good at, are done on the ground. A lot of contractors who need to move around and be physically in a particular place.
“So the demand for that will still be there”, he finished.
Holland-Kaye also said he had “a lot of sympathy” for British Airways, which has come in for heavy criticism for its use of the government’s furlough scheme while making a huge tranche of its employees redundant.
“BA have said they are burning through £170m every week. That’s a phenomenal amount of money, and they’ve got to take some extreme measures to save themselves.
“And in the absence of any revenue, the only thing they can do to buy themselves time is to cut costs.
“And as I said earlier, no company wants to have to do that. But they’ve got to take the best judgement they can”, he said.


cityam--2020-06-07--Sajid Javid asks Boris Johnson to do more to 'fight racial injustice'

Former chancellor Sajid Javid has called for Boris Johnson to take a larger role in tackling racial inequality in Britain .
Javid said “ only the Prime Minister is capable of driving real change ” and that he should “ bring the same energy and determination to fighting racial injustice and delivering equal opportunity ” as he has to the fight against Covid-19 and for Brexit .
Read more : Small businesses could fail to pay back coronavirus loans , BoE governor warned Javid , whose parents were Pakistani immigrants , wrote in the Sunday Times about the need for @ @ @ @ @ @ @ the UK as Black Lives Matter protests rage across the nation .
Thousands have turned up to demonstrations across most of the UK ’ s major cities in the wake of mass protests in the US , which were sparked by the death of George Floyd .
Floyd was killed by a Minneapolis police officer after he knelt on his neck .
Protests in London turned violent over the past three days as some demonstrators attacked police outside Downing Street .
Javid said he remained an optimist “ when it comes to our @ @ @ @ @ @ @ , but that fundamental changes needed to happen .
“ Ethnic minorities in Britain are still the victims of racial injustice and substantial disparities in opportunity , as the think-tank British Future has demonstrated , ” he said .
“ The government can and must do more to address racial inequalities in our society .
“ For starters , the Home Office has yet to implement the process of root and branch cultural change necessary in the aftermath of Windrush.
” He also called for greater action from the Prime Minister , comparing @ @ @ @ @ @ @ “ levelling up ” agenda to fix regional inequalities .
“ As with all large scale , systemic challenges , only the Prime Minister is capable of driving real change – and I know he cares deeply , ” Javid said .
Read more : Boris Johnson wants to change ‘ defective ’ Brexit withdrawal agreement “ Just as he has chosen to take personal control of the pandemic response and Brexit , he is able to bring the same energy and determination to fighting racial injustice and delivering equal opportunity .
“ @ @ @ @ @ @ @ better ’ , tackling the injustice of racial inequality has to be part of the answer .
”

Sajid Javid asks Boris Johnson to do more to ‘fight racial injustice’
Former chancellor Sajid Javid has called for Boris Johnson to take a larger role in tackling racial inequality in Britain.
Javid said “only the Prime Minister is capable of driving real change” and that he should “bring the same energy and determination to fighting racial injustice and delivering equal opportunity” as he has to the fight against Covid-19 and for Brexit.
Javid, whose parents were Pakistani immigrants, wrote in the Sunday Times about the need for the UK to improve racial divides in the UK as Black Lives Matter protests rage across the nation.
Thousands have turned up to demonstrations across most of the UK’s major cities in the wake of mass protests in the US, which were sparked by the death of George Floyd.
Floyd was killed by a Minneapolis police officer after he knelt on his neck.
Protests in London turned violent over the past three days as some demonstrators attacked police outside Downing Street.
Javid said he remained an optimist “when it comes to our country’s relationship with race”, but that fundamental changes needed to happen.
“Ethnic minorities in Britain are still the victims of racial injustice and substantial disparities in opportunity, as the think-tank British Future has demonstrated,” he said.
“The government can and must do more to address racial inequalities in our society.
“For starters, the Home Office has yet to implement the process of root and branch cultural change necessary in the aftermath of Windrush.”
He also called for greater action from the Prime Minister, comparing the challenge to the government’s “levelling up” agenda to fix regional inequalities.
“As with all large scale, systemic challenges, only the Prime Minister is capable of driving real change – and I know he cares deeply,” Javid said.
“Just as he has chosen to take personal control of the pandemic response and Brexit, he is able to bring the same energy and determination to fighting racial injustice and delivering equal opportunity.
“If we are to ‘build back better’, tackling the injustice of racial inequality has to be part of the answer.”


cityam--2020-06-07--Exclusive: Islington is the number one hotspot for new UK startups

Islington is the UK hotspot for new startups , creating 18,590 new businesses in the last year , according to figures from UHY Hacker Young .
Startups are turning to Islington as a cheaper alternative to the Silicon Roundabout , a popular tech hub in North-East London .
Islington overlaps parts of the Kings Cross redevelopment , Dalston and on the fringe of the City in Clerkenwell .
The Tech City district , coined the Silicon Roundabout , has become one of Europe ’ s leading hubs and placed second with 15,390 new businesses created in the last year .
@ @ @ @ @ @ @ and venture capital investors , it has also come to attract giants Microsoft and Google , who have set up bases in the district .
However , the rapid rise in popularity has meant the demand for office space has outstripped supply .
It has driven up the previously low rents , which had been a main selling point of the area .
Digital startups are therefore starting to flock to neighbouring borough Islington .
These include Ogury , a mobile marketing business which was founded in the borough and now has 18 @ @ @ @ @ @ @ Automata , another startup which has been working on a desktop robotic arm , is also based in Islington .
UHY Hacker Young said that startups are looking elsewhere for cheaper areas out of central London .
Croydon placed tenth on its list , solidifying its place as an up-and-coming hub , accounting for 2,540 new businesses .
It has cheaper office space , whilst still having good connections to central London , and has become increasingly popular with fintechs .
Martin Partner Jones , partner at UHY Hacker Young , said : @ @ @ @ @ @ @ cost conscious after the coronavirus lockdown ends , then we may see an increasing number choosing to base themselves in those areas such as Croydon , that offer growing tech credentials but also lower rents to save costs following the pandemic.
” He added : “ However , a clear north-south divide remains with new start-ups still being heavily concentrated in London , accounting for seven of the top ten areas for new business generation.
” The UK ’ s most popular areas for new startups : Get the news as it happens @ @ @ @ @ @ @

Exclusive: Islington is the number one hotspot for new UK startups
Islington is the UK hotspot for new startups, creating 18,590 new businesses in the last year, according to figures from UHY Hacker Young.
Startups are turning to Islington as a cheaper alternative to the Silicon Roundabout, a popular tech hub in North-East London.
Islington overlaps parts of the Kings Cross redevelopment, Dalston and on the fringe of the City in Clerkenwell.
The Tech City district, coined the Silicon Roundabout, has become one of Europe’s leading hubs and placed second with 15,390 new businesses created in the last year.
As well as housing new digital startups and venture capital investors, it has also come to attract giants Microsoft and Google, who have set up bases in the district. However, the rapid rise in popularity has meant the demand for office space has outstripped supply. It has driven up the previously low rents, which had been a main selling point of the area.
Digital startups are therefore starting to flock to neighbouring borough Islington.
These include Ogury, a mobile marketing business which was founded in the borough and now has 18 offices across Europe and the US. Automata, another startup which has been working on a desktop robotic arm, is also based in Islington.
UHY Hacker Young said that startups are looking elsewhere for cheaper areas out of central London.
Croydon placed tenth on its list, solidifying its place as an up-and-coming hub, accounting for 2,540 new businesses. It has cheaper office space, whilst still having good connections to central London, and has become increasingly popular with fintechs.
Martin Jones, partner at UHY Hacker Young, said: “If tech companies do become more cost conscious after the coronavirus lockdown ends, then we may see an increasing number choosing to base themselves in those areas such as Croydon, that offer growing tech credentials but also lower rents to save costs following the pandemic.”
He added: “However, a clear north-south divide remains with new start-ups still being heavily concentrated in London, accounting for seven of the top ten areas for new business generation.”
The UK’s most popular areas for new startups:
Area New business registrations Islington 18,590 Old Street/City Road 15,390 Leicester Square/Covent Garden 12,820 East Docklands 3,980 Holborn 3,540 Canary Wharf 2,800 Croydon 2,540
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-06-07--Boris Johnson wants to change 'defective' Brexit withdrawal agreement

The UK is reportedly looking to change the terms of its Brexit withdrawal agreement to fix “ unfair defects ” .
Much of Boris Johnson ’ s Brexit deal was borrowed from Theresa May ’ s , which was rejected by UK parliament three times .
Read more : ‘ No significant progress ’ in latest round of UK-EU Brexit trade talks The key change he made was in regards to the Northern Ireland backstop .
The Sunday Express reports that a source close to the UK chief negotiator David Frost said Johnson believes there were “ unfair defects ” @ @ @ @ @ @ @ the government did not have time to fix last year .
The Prime Minister reportedly is now looking to make changes as the UK and EU rush to agree to a free trade deal before 31 December .
Before the Open newsletter : Start your day with the City View podcast and key market data “ Unfortunately we couldn ’ t fix every defect with the withdrawal agreement last autumn – we had to prioritise abolishing the backstop and getting Brexit done in the face of a parliament that was trying to stop @ @ @ @ @ @ @ “ We ’ ll now have to do our best to fix it but we ’ re starting with a clear disadvantage.
” It comes after little progress was made in the fourth round of trade talks between the UK and EU this week .
Chief EU negotiator Michel Barnier said there was “ no significant areas of progress ” on key areas , such as fishing policy , business competition regulations and overall governance of the deal .
He also chastised Johnson for allegedly breaking the political declaration , which set the @ @ @ @ @ @ @ However , a UK official said on Friday that Barnier and his team were misinterpreting the role of the political declaration .
Read more : Sterling will weaken if Britain fails to ask for Brexit transition extension “ We ’ re committed to the political declaration , but we see it as guiding parameters – it is not a treaty , ” they said .
“ In my dictionary means parameters means limits , it doesn ’ t require us to agree to everything in it .
”

Boris Johnson wants to change ‘defective’ Brexit withdrawal agreement
The UK is reportedly looking to change the terms of its Brexit withdrawal agreement to fix “unfair defects”.
Much of Boris Johnson’s Brexit deal was borrowed from Theresa May’s, which was rejected by UK parliament three times.
The key change he made was in regards to the Northern Ireland backstop.
The Sunday Express reports that a source close to the UK chief negotiator David Frost said Johnson believes there were “unfair defects” in May’s deal, which the government did not have time to fix last year.
The Prime Minister reportedly is now looking to make changes as the UK and EU rush to agree to a free trade deal before 31 December.
Before the Open newsletter: Start your day with the City View podcast and key market data
“Unfortunately we couldn’t fix every defect with the withdrawal agreement last autumn – we had to prioritise abolishing the backstop and getting Brexit done in the face of a parliament that was trying to stop us,” the source said.
“We’ll now have to do our best to fix it but we’re starting with a clear disadvantage.”
It comes after little progress was made in the fourth round of trade talks between the UK and EU this week.
Chief EU negotiator Michel Barnier said there was “no significant areas of progress” on key areas, such as fishing policy, business competition regulations and overall governance of the deal.
He also chastised Johnson for allegedly breaking the political declaration, which set the parameters of a future trade deal.
However, a UK official said on Friday that Barnier and his team were misinterpreting the role of the political declaration.
“We’re committed to the political declaration, but we see it as guiding parameters – it is not a treaty,” they said.
“In my dictionary means parameters means limits, it doesn’t require us to agree to everything in it.”


cityam--2020-06-07--Conservatives and Labour neck-and-neck in new UK opinion polling

The Conservatives ’ lead over Labour in UK opinion polling has been dramatically slashed , after three different surveys put the government ahead by three points or less .
Opinium and Deltapoll have the Tories ahead by three per cent and a Survation poll gives the party a two per cent lead in a dramatic turnaround from just two months ago .
Read more : Small businesses could fail to pay back coronavirus loans , BoE governor warned Opinium polling from the end of March gave the Tories a commanding 26 per cent lead over Labour , with public approval @ @ @ @ @ @ @ 55 per cent .
Public approval for the government has since crashed , as the UK ’ s total death toll has now reached the second-highest in the world at more than 40,000 .
The government ’ s decision to not sack Dominic Cummings , the Prime Minister ’ s chief aide , after a series of stories claiming he broke the lockdown to travel to Durham also dented the public ’ s faith in the government .
Now , Sir Keir Starmer trails Johnson by just one per cent as preferred prime @ @ @ @ @ @ @ rating of 34 per cent , according to Opinium .
The company ’ s head of political polling Adam Drummond said : “ The public are starting to lose confidence in the government ’ s ability to handle the crisis – approval of how they are handling things has dropped from 65 per cent at the beginning of lockdown to just 34 per cent today .
Read more : ‘ A weekly test of showmanship ’ : Does PMQs shape public opinion ?
“ Public appetite for lifting the lockdown measures remains minimal @ @ @ @ @ @ @ say that things are being released too quickly than too slowly .
“ Meanwhile Keir Starmer ’ s ‘ constructive opposition ’ positioning is continuing to pay off with the Labour leader drawing almost level with Boris Johnson on the ‘ best prime minister ’ question as well as overtaking the PM on a series of leadership attributes such as competence and trustworthiness .
”

Conservatives and Labour neck-and-neck in new UK opinion polling
Boris Johnson (left) and Keir Starmer (right)
The Conservatives’ lead over Labour in UK opinion polling has been dramatically slashed, after three different surveys put the government ahead by three points or less.
Opinium and Deltapoll have the Tories ahead by three per cent and a Survation poll gives the party a two per cent lead in a dramatic turnaround from just two months ago.
Opinium polling from the end of March gave the Tories a commanding 26 per cent lead over Labour, with public approval of Boris Johnson’s government at 55 per cent.
Public approval for the government has since crashed, as the UK’s total death toll has now reached the second-highest in the world at more than 40,000.
The government’s decision to not sack Dominic Cummings, the Prime Minister’s chief aide, after a series of stories claiming he broke the lockdown to travel to Durham also dented the public’s faith in the government.
Now, Sir Keir Starmer trails Johnson by just one per cent as preferred prime minister and the government has an approval rating of 34 per cent, according to Opinium.
The company’s head of political polling Adam Drummond said: “The public are starting to lose confidence in the government’s ability to handle the crisis – approval of how they are handling things has dropped from 65 per cent at the beginning of lockdown to just 34 per cent today.
“Public appetite for lifting the lockdown measures remains minimal with even Conservative voters more likely to say that things are being released too quickly than too slowly.
“Meanwhile Keir Starmer’s ‘constructive opposition’ positioning is continuing to pay off with the Labour leader drawing almost level with Boris Johnson on the ‘best prime minister’ question as well as overtaking the PM on a series of leadership attributes such as competence and trustworthiness.”


cityam--2020-06-07--Domino's Pizza scolded by the IA over lack of gender diversity

Domino ’ s Pizza has come under fire from the City over its lack of diversity on its board , which is due to become male-only by the end of the month .
The Investment Association ( IA ) has issued a so-called red-top on the pizza chain , first reported by the Sunday Telegraph .
It represents the strongest warning from the body because of its failure to appoint women to its board .
Read more : The gender pay reporting rules have been waived due to coronavirus The IA ’ s Institutional Voting Information Service ( IVIS ) @ @ @ @ @ @ @ expectations on diversity .
Companies are designated ‘ red-top ’ when women represent 20 per cent or less of the board .
Domino ’ s currently has one woman on its board , Helen Keays , but she is set to leave later this month .
It comes after the IA and the Hampton-Alexander Review wrote to nearly a fifth of FTSE 350 companies over their lack of gender diversity earlier this year .
The 63 companies , including Domino ’ s , were asked to outline what action they would take to @ @ @ @ @ @ @ target is for a minimum 33 per cent of women on boards and in senior leadership teams by the end of the year .
Read more : Domino ’ s Pizza hires former Costa boss as new chief executive The IA also called out the so-called ‘ one and done ’ boards in the FTSE 250 , with 24 companies cautioned for having only one woman on their board .
In February ’ s review , chief executive of the IA , Chris Cummings , said : “ “ Diversity results in better @ @ @ @ @ @ @ a company ’ s long-term success .
Investment managers have been clear that as a minimum they want to see companies meet this target for gender diversity , and those which fail to do so risk facing dissent in the AGM season.
” Get the news as it happens by following City A.M. on Twitter .

Domino’s Pizza scolded by the IA over lack of gender diversity
Domino’s Pizza has come under fire from the City over its lack of diversity on its board, which is due to become male-only by the end of the month.
The Investment Association (IA) has issued a so-called red-top on the pizza chain, first reported by the Sunday Telegraph. It represents the strongest warning from the body because of its failure to appoint women to its board.
The IA’s Institutional Voting Information Service (IVIS) highlights companies that do not meet investor expectations on diversity. Companies are designated ‘red-top’ when women represent 20 per cent or less of the board.
Domino’s currently has one woman on its board, Helen Keays, but she is set to leave later this month.
It comes after the IA and the Hampton-Alexander Review wrote to nearly a fifth of FTSE 350 companies over their lack of gender diversity earlier this year. The 63 companies, including Domino’s, were asked to outline what action they would take to improve the gender balance. The current target is for a minimum 33 per cent of women on boards and in senior leadership teams by the end of the year.
The IA also called out the so-called ‘one and done’ boards in the FTSE 250, with 24 companies cautioned for having only one woman on their board.
In February’s review, chief executive of the IA, Chris Cummings, said: ““Diversity results in better decision-making and plays an essential role in a company’s long-term success. Investment managers have been clear that as a minimum they want to see companies meet this target for gender diversity, and those which fail to do so risk facing dissent in the AGM season.”
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-06-07--Labour not supportive of changing Sunday trading laws

Labour has said it does not support the government ’ s move to scrap trading laws in England , which will allow super markets to open for more than six hours on Sundays .
Shadow foreign secretary Lisa Nandy said she wasn ’ t convinced the changes would help stimulate the economy and that they would also deprive workers of seeing their loved ones .
Read more : Boris Johnson moves to ease lockdown faster in face of mass job losses Speaking to the BBC today , she said : “ Longer trading hours aren ’ t really the issue @ @ @ @ @ @ @ demand .
“ We ’ ve just been applauding our frontline workers , supermarket workers are amongst those , they ’ re deeply worried about what this will mean for them in terms of times with their families.
” Boris Johnson is poised to lift Sunday trading restrictions for at least one year to help stimulate the economy in the face of mass jobs losses .
The Sunday Times reports that it will be one of a raft of measures the government will implement to speed up the easing of the lockdown , @ @ @ @ @ @ @ 3.5m jobs are at risk .
The trading laws , which came into place in 1994 , limit shops with retail space over 280 square metres to a maximum of six hours of trading on Sundays .
Johnson ’ s plan would see larger shops like super markets able to open for more than six hours on a Sunday .
The plan has the backing of chancellor Rishi Sunak , business secretary Alok Sharma and Johnson ’ s chief aide Dominic Cummings .
British Chambers of Commerce director general Adam Marshall said changing @ @ @ @ @ @ @ get the economy moving again .
Read more : Coronavirus is a ‘ devastating blow ’ to the economy , says World Bank chief “ Businesses need to be given every possible opportunity to start to generate sales again , ” he said .
“ If there are rules that can be relaxed to give more companies a fighting chance to trade their way through this crisis without compromising safety , ministers should do everything in their power to make it happen .
”

Labour not supportive of changing Sunday trading laws
Labour has said it does not support the government’s move to scrap trading laws in England, which will allow super markets to open for more than six hours on Sundays.
Shadow foreign secretary Lisa Nandy said she wasn’t convinced the changes would help stimulate the economy and that they would also deprive workers of seeing their loved ones.
Speaking to the BBC today, she said: “Longer trading hours aren’t really the issue, it’s how you stimulate demand.
“We’ve just been applauding our frontline workers, supermarket workers are amongst those, they’re deeply worried about what this will mean for them in terms of times with their families.”
Boris Johnson is poised to lift Sunday trading restrictions for at least one year to help stimulate the economy in the face of mass jobs losses.
The Sunday Times reports that it will be one of a raft of measures the government will implement to speed up the easing of the lockdown, in the face of figures that show 3.5m jobs are at risk.
The trading laws, which came into place in 1994, limit shops with retail space over 280 square metres to a maximum of six hours of trading on Sundays.
Johnson’s plan would see larger shops like super markets able to open for more than six hours on a Sunday.
The plan has the backing of chancellor Rishi Sunak, business secretary Alok Sharma and Johnson’s chief aide Dominic Cummings.
British Chambers of Commerce director general Adam Marshall said changing the laws was a vital step to get the economy moving again.
“Businesses need to be given every possible opportunity to start to generate sales again,” he said.
“If there are rules that can be relaxed to give more companies a fighting chance to trade their way through this crisis without compromising safety, ministers should do everything in their power to make it happen.”


cityam--2020-06-07--Small businesses could fail to pay back coronavirus loans, BoE governor warned

The Bank of England governor Andrew Bailey has been warned that £36bn of emergency coronavirus loans to small businesses risk turning toxic .
A report by industry body TheCityUK ’ s Recapitalisation Group that will be published tomorrow warns of “ unsustainable ” debts which could impede recovery .
Read more : Banks warn up to half of ‘ bounce back ’ borrowers could default The report , chaired by Aviva chairman Sir Adrian Montague and supported by EY , forecasts that by March 2021 , UK businesses are likely to face between £97bn and £107bn of unsustainable debt , @ @ @ @ @ @ @ SMEs .
While the majority of the unsustainable debt will stem from existing debts , the report estimates that between £32bn and £36bn “ of the total unsustainable debt will stem from the government ’ s Covid-19 lending schemes ” .
The sectors most exposed will be property – representing 24 per cent of the total estimated unsustainable debt – accommodation ( 16 per cent ) and construction ( 11 per cent ) .
Miles Celic , chief executive of TheCityUK , said : “ SMEs are the engine of the UK economy @ @ @ @ @ @ @ shoulders of otherwise viable businesses will be essential to supporting a robust and sustainable economic recovery .
However , this is a huge and complicated challenge .
It is already clear that there won ’ t be a one-size-fits-all solution.
” The report , first reported on by the Sunday Times , outlines a number of solutions to the debt burden but the current focus is on equity , tax-based solutions , and forbearance .
Read more : UK faces protracted recovery without action on business debt , says IoD The Recapitalisation Group @ @ @ @ @ @ @ needs of SMEs are “ particularly acute given the low volume of equity historically raised by SMEs – an average of £7.2bn a year between 2017 and 2019 ” .
Governor Andrew Bailey said : “ The question of recapitalisation remains the focus of a great deal of work at the Bank .
I look forward to working with TheCityUK and others as we design solutions to help support the UK ’ s recovery from this terrible disease.
” Last week the Institute of Directors ( IoD ) called on lenders and the @ @ @ @ @ @ @ on SMEs to avoid a protracted economic recovery .
In a poll of 720 company directors , just over half said the debt their business had taken on during the current crisis would have a negative impact on their recovery .

Small businesses could fail to pay back coronavirus loans, BoE governor warned
The Bank of England governor Andrew Bailey has been warned that £36bn of emergency coronavirus loans to small businesses risk turning toxic.
A report by industry body TheCityUK’s Recapitalisation Group that will be published tomorrow warns of “unsustainable” debts which could impede recovery.
The report, chaired by Aviva chairman Sir Adrian Montague and supported by EY, forecasts that by March 2021, UK businesses are likely to face between £97bn and £107bn of unsustainable debt, of which around half will sit with SMEs.
While the majority of the unsustainable debt will stem from existing debts, the report estimates that between £32bn and £36bn “of the total unsustainable debt will stem from the government’s Covid-19 lending schemes”.
The sectors most exposed will be property – representing 24 per cent of the total estimated unsustainable debt – accommodation (16 per cent) and construction (11 per cent).
Miles Celic, chief executive of TheCityUK, said: “SMEs are the engine of the UK economy. Lifting the debt burden from the shoulders of otherwise viable businesses will be essential to supporting a robust and sustainable economic recovery. However, this is a huge and complicated challenge. It is already clear that there won’t be a one-size-fits-all solution.”
The report, first reported on by the Sunday Times, outlines a number of solutions to the debt burden but the current focus is on equity, tax-based solutions, and forbearance.
The Recapitalisation Group said the update shows that the recapitalisation needs of SMEs are “particularly acute given the low volume of equity historically raised by SMEs – an average of £7.2bn a year between 2017 and 2019”.
Governor Andrew Bailey said: “The question of recapitalisation remains the focus of a great deal of work at the Bank. I look forward to working with TheCityUK and others as we design solutions to help support the UK’s recovery from this terrible disease.”
Last week the Institute of Directors (IoD) called on lenders and the government to tackle the burden of debt on SMEs to avoid a protracted economic recovery. In a poll of 720 company directors, just over half said the debt their business had taken on during the current crisis would have a negative impact on their recovery.


cityam--2020-06-07--We live in interesting times, but kindness matters too

There is hardly a day goes by that I don ’ t think of the old curse : ‘ May you live in interesting times.
’ The saying comes – appropriately enough , you might say – from China .
But whatever one ’ s suspicions about the Xi Jinping administration and its role in the current crisis , I have always liked the saying .
It seems to go so much against the grain of what we ’ re meant to wish for nowadays .
What is our culture but a constant desire to be combative , enriched and @ @ @ @ @ @ @ be folly not to remind ourselves of the benefits of our connected culture : our technology has enhanced our experience of lockdown ensuring that many have remained productive .
As an employability expert , I am especially admiring of all those businesses – not only Zoom , but a whole range of innovative delivery and food companies – who have taken Covid-19 as an opportunity to ‘ use the difficulty ’ : to reshape , to pivot , and even to grow .
Even so , if you thought the comparative silence in @ @ @ @ @ @ @ politer neighbourhoods – might have permeated the cultures of Washington and Westminster , then those hopes are beginning to be dashed .
Unsurprisingly , America ’ s especially divided politics was the first to return to its usual tone of unhappy antagonism : Donald Trump has already launched an esoteric buzzword Obamagate , dubbed amusingly a ‘ hashtag in search of a scandal ’ .
The question of whether to wear a face mask has also been politicised by the commander-in-chief .
Another election looms where the Republican-Democrat vote share shall be somewhere @ @ @ @ @ @ @ to the person who can most effectively navigate a few key battleground districts .
In other words , it shall be another short-term popularity contest , where the ruled over are cynical about the people who do the governing .
I ’ m sure there are reasons for this : we do not always admire those who seek to lead us .
Perhaps we remember Gore Vidal ’ s dictum that ‘ any American who is prepared to run for president should automatically , by definition , be disqualified from ever doing so.
@ @ @ @ @ @ @ look at the good work done by people who in some cases don ’ t make the Cabinet – and in other cases don ’ t really want to – one begins to wonder whether the fault might lie not with the ruling classes , but instead with us .
Perhaps indeed our politics is another example of the pervasive failure of compassion , which I outlined in this publication a few weeks ago .
One worrying recent development involved the new MP for Stroud Siobhan Baillie .
On 23rd April , Baillie @ @ @ @ @ @ @ of herself in a maternity ward announcing the safe arrival of her baby daughter with a message : ‘ She is healthy , happy & appropriately demanding.
’ The constituents of Stroud seem to have had a mixed reaction to this news , and even more so when it emerged that Baillie would be seeking one month ’ s maternity leave .
This has led to her receiving abusive messages of a kind which make the head spin .
Baillie ’ s case highlights a decline in respect for the notion of service @ @ @ @ @ @ @ Bolsanaro to Trump , there is now an invidious idea that all who end up in power are there with the specific intention not of serving us , but of lording it over us .
This is certainly not the case with Baillie , and I could name off the top of my head scores of parliamentarians of whom it also isn ’ t true .
On all sides of the House , most go into politics not in the hope of having a shot at No .
10 , but with the @ @ @ @ @ @ @ suspect that Twitter , Facebook and Instagram combines to make us think we know public figures better than we do ; and in almost knowing them , we feel have carte blanche to abuse them .
The issue was raised by the activist Gina Miller ’ s recent confrontation with one of her online trolls .
What emerged from that encounter was both Miller ’ s dignity , and the troll ’ s embarrassment .
Our anger towards public figures would , in fact , very rarely survive prolonged exposure to the actual @ @ @ @ @ @ @ If it is true that our problems stem from something so simple as not knowing one another then how do we bridge this gap in understanding ?
Social mobility must be one part of the answer , and Dr Lee Eliot is doing some important work in this area .
It is hard not to feel that a more fluid society would also be a less resentful one .
But it ’ s also something which we all need to do our bit on .
This is why I have launched a new @ @ @ @ @ @ @ dialogue between ambitious young people – the leaders of tomorrow – and the leaders of today .
Whenever I have seen a room full of young people with a business leader or even a Prime Minister – the encounter never went as anyone was expecting .
Why not have a print version of such encounters ?
So let ’ s remember that , in these interesting times , our preconceptions are often misconceptions .
We don ’ t know people as well as we think we do .
Now ’ s the time @ @ @ @ @ @ @ hatred .

We live in interesting times, but kindness matters too
There is hardly a day goes by that I don’t think of the old curse: ‘May you live in interesting times.’ The saying comes – appropriately enough, you might say – from China. But whatever one’s suspicions about the Xi Jinping administration and its role in the current crisis, I have always liked the saying. It seems to go so much against the grain of what we’re meant to wish for nowadays. What is our culture but a constant desire to be combative, enriched and distracted?
Of course, it would be folly not to remind ourselves of the benefits of our connected culture: our technology has enhanced our experience of lockdown ensuring that many have remained productive. As an employability expert, I am especially admiring of all those businesses – not only Zoom, but a whole range of innovative delivery and food companies – who have taken Covid-19 as an opportunity to ‘use the difficulty’: to reshape, to pivot, and even to grow.
Even so, if you thought the comparative silence in our cities – the empty skies and politer neighbourhoods – might have permeated the cultures of Washington and Westminster, then those hopes are beginning to be dashed.
Unsurprisingly, America’s especially divided politics was the first to return to its usual tone of unhappy antagonism: Donald Trump has already launched an esoteric buzzword Obamagate, dubbed amusingly a ‘hashtag in search of a scandal’. The question of whether to wear a face mask has also been politicised by the commander-in-chief. Another election looms where the Republican-Democrat vote share shall be somewhere around 50-50, and the presidency handed to the person who can most effectively navigate a few key battleground districts.
In other words, it shall be another short-term popularity contest, where the ruled over are cynical about the people who do the governing. I’m sure there are reasons for this: we do not always admire those who seek to lead us. Perhaps we remember Gore Vidal’s dictum that ‘any American who is prepared to run for president should automatically, by definition, be disqualified from ever doing so.’
But in Westminster, if you look at the good work done by people who in some cases don’t make the Cabinet – and in other cases don’t really want to – one begins to wonder whether the fault might lie not with the ruling classes, but instead with us. Perhaps indeed our politics is another example of the pervasive failure of compassion, which I outlined in this publication a few weeks ago.
One worrying recent development involved the new MP for Stroud Siobhan Baillie. On 23rd April, Baillie posted a photo on her Instagram account of herself in a maternity ward announcing the safe arrival of her baby daughter with a message: ‘She is healthy, happy & appropriately demanding.’
The constituents of Stroud seem to have had a mixed reaction to this news, and even more so when it emerged that Baillie would be seeking one month’s maternity leave. This has led to her receiving abusive messages of a kind which make the head spin.
Baillie’s case highlights a decline in respect for the notion of service. Indeed, in the age of Bolsanaro to Trump, there is now an invidious idea that all who end up in power are there with the specific intention not of serving us, but of lording it over us. This is certainly not the case with Baillie, and I could name off the top of my head scores of parliamentarians of whom it also isn’t true. On all sides of the House, most go into politics not in the hope of having a shot at No. 10, but with the ambition to do good.
I also suspect that Twitter, Facebook and Instagram combines to make us think we know public figures better than we do; and in almost knowing them, we feel have carte blanche to abuse them. The issue was raised by the activist Gina Miller’s recent confrontation with one of her online trolls. What emerged from that encounter was both Miller’s dignity, and the troll’s embarrassment. Our anger towards public figures would, in fact, very rarely survive prolonged exposure to the actual person: our rage is within.
If it is true that our problems stem from something so simple as not knowing one another then how do we bridge this gap in understanding? Social mobility must be one part of the answer, and Dr Lee Eliot is doing some important work in this area. It is hard not to feel that a more fluid society would also be a less resentful one.
But it’s also something which we all need to do our bit on. This is why I have launched a new magazine Finito World aimed at creating a dialogue between ambitious young people – the leaders of tomorrow – and the leaders of today. Whenever I have seen a room full of young people with a business leader or even a Prime Minister – the encounter never went as anyone was expecting. Why not have a print version of such encounters?
So let’s remember that, in these interesting times, our preconceptions are often misconceptions. We don’t know people as well as we think we do. Now’s the time to do better – and banish the hatred.


cityam--2020-06-08--Nokia boosts broadband arm as rival Ericsson flags 5G losses

Telecoms equipment giant Nokia has said it is seeing a pick-up in orders as providers seek to boost their broadband networks as global lockdown measures raise demand .
The coronavirus pandemic has left many people reliant on home broadband connections to continue working , putting a strain on networks .
Nokia ’ s president of fixed networks Sandy Motley said many of its customers had planned to grow their network by 30 per cent to 40 per cent over the next few years assuming a similar growth in traffic , but Covid-19 brought in that traffic growth overnight .
“ @ @ @ @ @ @ @ that they had planned in the future , and we ’ ve seen customers already talking to us about that , ” she told Reuters , adding orders for fixed networks rose 22 per cent in the first quarter .
Meanwhile Swedish rival Ericsson said today that it expects to take a second-quarter writedown of about 1 billion crowns ( £85m ) on its product inventory in China .
Reflecting high starting costs for new products , Ericsson said it expects negative gross margins in the region after winning 5G contracts from three @ @ @ @ @ @ @ Security officials launch review into Huawei role in 5G network It had previously warned in its first-quarter report that an increasing share of strategic contracts would hurt profitability in the current quarter , primarily due to its activity in China .
Ericsson today added that while the deployment of 5G in China will hurt in the short term , it is expected to have healthy profitability over the life of the contracts .
It maintained its financial targets for 2020 and 2022 .

Nokia boosts broadband arm as rival Ericsson flags 5G losses
Telecoms equipment giant Nokia has said it is seeing a pick-up in orders as providers seek to boost their broadband networks as global lockdown measures raise demand.
The coronavirus pandemic has left many people reliant on home broadband connections to continue working, putting a strain on networks.
Nokia’s president of fixed networks Sandy Motley said many of its customers had planned to grow their network by 30 per cent to 40 per cent over the next few years assuming a similar growth in traffic, but Covid-19 brought in that traffic growth overnight.
“Customers will need to accelerate the growth that they had planned in the future, and we’ve seen customers already talking to us about that,” she told Reuters, adding orders for fixed networks rose 22 per cent in the first quarter.
Meanwhile Swedish rival Ericsson said today that it expects to take a second-quarter writedown of about 1 billion crowns (£85m) on its product inventory in China.
Reflecting high starting costs for new products, Ericsson said it expects negative gross margins in the region after winning 5G contracts from three major Chinese operators.
It had previously warned in its first-quarter report that an increasing share of strategic contracts would hurt profitability in the current quarter, primarily due to its activity in China.
Ericsson today added that while the deployment of 5G in China will hurt in the short term, it is expected to have healthy profitability over the life of the contracts. It maintained its financial targets for 2020 and 2022.


cityam--2020-06-08--BP set to axe 10,000 jobs due to coronavirus

Oil giant BP will cut 10,000 jobs as a result of the coronavirus crisis , chief executive Bernard Looney announced today .
Reuters first reported that Looney told employees of the cuts , which account for 15 per cent of BP ’ s workforce , in a global conference call this morning .
In a company-wide email seen by City A.M. , Looney confirmed the job cuts saying that most would be made this year .
He said : “ We will now begin a process that will see close to 10,000 people leaving BP – most by the end @ @ @ @ @ @ @ of people affected will be in office-based jobs .
We are protecting the frontline of the company and , as always , prioritising safe and reliable operations ” .
BP added that it did not yet have an accurate breakdown of where the cuts would be made , but said the changes would “ significantly impact ” its senior levels .
In a statement it said that BP ’ s 400 or so group leaders would be cut by around a third .
Before the Open : Get the jump on the markets @ @ @ @ @ @ @ it was reported that the firm would cut is 250-strong senior management team in half in its push to become a net-zero emissions firm .
However , Looney warned that the firm might have to go even further next year to reduce its operating costs .
Currently , he said , $ 8bn of BP ’ s $ 22bn operating costs come from its workforce , a figure that he is aiming to reduce by $ 2.5bn .
BP is also working to reduce its capital expenditure by $ 3bn this year – @ @ @ @ @ @ @ budgeted .
Looney warned that due to the collapse in oil prices , the firm was spending far more than it was making , and said : “ We have to spend less money .
We are spending much , much more than we make – I am talking millions of dollars , every day ” .
Senior staff will not receive pay rises this year , although junior and mid-rank employees will get them in October .
Although final decisions on cash bonuses will be made next year , BP said it @ @ @ @ @ @ @ receive one for 2020 .
The coronavirus crisis has battered the world ’ s oil majors , with a near total collapse in demand sending oil prices spiralling down .
Many of BP ’ s competitors have been forced into sweeping job cuts to cope with the downturn .
In March Looney had said that the firm would not make any of its 70,100 staff redundant within the next three months .
However , in his email , he announced that the moratorium on job losses had now expired .
However , when @ @ @ @ @ @ @ , he signalled that the wide-ranging restructuring of BP to switch its focus to renewable energy would entail job cuts .
Read more : BP profit tumbles by two-thirds as oil demand dries up In today ’ s email , he said : “ It was always part of the plan to make bp a leaner , faster-moving and lower carbon company .
“ That is how we will deliver on our net zero ambition .
And that is how we will seize opportunities throughout the energy transition ” .

BP set to axe 10,000 jobs due to coronavirus
Oil giant BP will cut 10,000 jobs as a result of the coronavirus crisis, chief executive Bernard Looney announced today.
Reuters first reported that Looney told employees of the cuts, which account for 15 per cent of BP’s workforce, in a global conference call this morning.
In a company-wide email seen by City A.M., Looney confirmed the job cuts, saying: “We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year.
“The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritising safe and reliable operations”.
BP added that it did not yet have an accurate breakdown of where the cuts would be made, but said the changes would “significantly impact” its senior levels.
However, about a fifth of the job cuts will take place in the UK, where BP employs 15,000 people, a company spokesman said.
In a statement it said that BP’s 400 or so group leaders would be cut by around a third.
In May it was reported that the firm would cut is 250-strong senior management team in half in its push to become a net-zero emissions firm.
However, Looney warned that the firm might have to go even further next year to reduce its operating costs.
Before the Open: Get the jump on the markets with our early morning newsletter
Currently, he said, $8bn of BP’s $22bn operating costs come from its workforce, a figure that he is aiming to reduce by $2.5bn.
BP is also working to reduce its capital expenditure by $3bn this year – 25 per cent of what had been budgeted.
Looney warned that due to the collapse in oil prices, the firm was spending far more than it was making, and said:
“We have to spend less money. We are spending much, much more than we make – I am talking millions of dollars, every day”.
Senior staff will not receive pay rises this year, although junior and mid-rank employees will get them in October.
Although final decisions on cash bonuses will be made next year, BP said it was “very unlikely” anyone would receive one for 2020.
The coronavirus crisis has battered the world’s oil majors, with a near total collapse in demand sending oil prices spiralling down.
Many of BP’s competitors have been forced into sweeping job cuts to cope with the downturn.
Professor David Elmes of Warwick Business School said that the losses at BP were “symptomatic of the wider challenges facing the industry”.
He said: “All firms in the sector will all be looking at how they can cut costs, shift their activities to the lowest cost field, trim investment, and thinking hard about what dividend they can pay.
“BP and the other European-based international companies have already said they will become less focused on oil and gas over time. If this situation continues, there will be intense discussions about what can they do to move faster.”
In March Looney had said that the firm would not make any of its 70,100 staff redundant within the next three months.
However, in his email, he announced that the moratorium on job losses had now expired.
However, when he took over the business in February, he signalled that the wide-ranging restructuring of BP to switch its focus to renewable energy would entail job cuts.
In today’s email, he said: “It was always part of the plan to make bp a leaner, faster-moving and lower carbon company.
“That is how we will deliver on our net zero ambition. And that is how we will seize opportunities throughout the energy transition”.
Union RMT, which represents offshore workers, condemned the cuts, describing them as “catastrophic”.
General secretary Mick Cash said: “Offshore workers will not be made to pay for successive government’s failure to tax and regulate North Sea oil and gas companies in a sustainable manner.
“Policies must be adopted, and quickly to secure a just transition to a net zero carbon economy”.


cityam--2020-06-08--Markets live: FTSE 100 subdued after strong performance last week

The FTSE 100 edged into the green after opening lower this morning , coming down from several days of strong gains last week despite more countries moving to ease lockdown measures .
The blue chip index dropped as much as 0.75 per cent following the open , but later pared back losses to stand at 0.12 per cent up by lunchtime .
Drugmaker Astrazeneca fell over two per cent following reports yesterday that it had approached US rival Gilead about a possible merger to form one of the world ’ s largest drug companies .
The Cambridge-based company , which @ @ @ @ @ @ @ record high , contacted Gilead last month in a bid to gauge interest in a possible deal , but did not provide details of any transaction , Bloomberg reported .
“ Investors are unlikely to welcome a large M & A deal at a time when both companies are trying to fight coronavirus as it could prove to be a distraction to management , ” said AJ Bell investment director Russ Mould .
“ The timing seems wrong when both companies have such important work to do , ” he added .
The @ @ @ @ @ @ @ 0.91 per cent , while oil and gas stocks jumped after major producers agreed to extend a deal on record output cuts to the end of July .
Over the weekend , OPEC and its allies formally agreed to extend the deal to withdraw almost 10 per cent of global supplies from the market by a third month to the end of July .
Saudi Arabia is not planning to extend its voluntary cuts in oil output into July , the country ’ s energy minister Prince Abdulaziz bin Salman told reporters on @ @ @ @ @ @ @ Intermediate both hit their highest price since early March following the OPEC+ agreement , helping boost energy firms in the FTSE 100 .
Oil major Shell rose as much as 3.91 per cent , while BP climbed 2.88 per cent .
Bjarne Schieldrop , chief commodities analyst at Swedish corporate bank SEB , said the oil market “ is now totally reliant on full compliance to production targets in OPEC+ ” .
Read more : BP set to axe 10,000 jobs due to coronavirus “ If the producers in the group do not @ @ @ @ @ @ @ the group moving back to full production .
This threat is the only real controlling mechanism the group has , and it will have to use it from time to time for the weapon to be real , ” he said .
“ OPEC+ has become much more nimble and light on its feet .
It will cut deep in the short term and create prompt tightness , with the very front-end of the Brent crude curve now starting to move into backwardation , but it gives fewer assurances for the future.
” @ @ @ @ @ @ @ three-month high as investors moved to lock in some profits following last week ’ s rally .
The pan-European STOXX 600 shed as much as 0.8 per cent , with personal and household goods , healthcare and retail sectors leading the decline .
Germany ’ s DAX slipped one per cent after data showed that German industrial production recorded its steepest plunge on record in April , as the coronavirus pandemic forced companies in Europe ’ s largest economy to dramatically scale back production .
The index had pared back most of the @ @ @ @ @ @ @ per cent down .
France ’ s CAC 40 fell as much as 0.79 per cent in morning trading , but made up some ground later and was sitting at 0.2 per cent down by 12.40pm .
The pull back came after the NASDAQ posted a new intraday record high on Friday , following strong US jobs figures that helped lift hopes of a quicker global economic recovery following weeks of lockdowns aimed at limiting the spread of the coronavirus pandemic .
Asian shares mostly rose on Monday , boosted by the surprisingly @ @ @ @ @ @ @ Composite closed 0.24 per cent up , while Japan ’ s Nikkei 225 gained 1.37 per cent .
Hong Kong ’ s Hang Seng index slipped into the red , ending the session 0.03 per cent down .
US stock index futures rose on Monday as the surprisingly upbeat jobs report last week added to optimism that the world ’ s biggest economy has weathered the worst fallout of the coronavirus outbreak .
Leading the gainers pre-market trading were companies that have been hammered by the pandemic , such as cruise line operators @ @ @ @ @ @ @ Cruise Line Holdings Ltd , American Airlines and United Airlines Holdings climbed between 10.6 per cent and 17.5 per cent .
“ In the space of four weeks we ’ ve seen history made as the US economy posted a record number of job losses in one month , only to be followed by a record number of jobs gains in the following month , ” said CMC Markets ’ Michael Hewson .
‘ Despite all of the enthusiasm over last month ’ s jobs report it doesn ’ t change the fact @ @ @ @ @ @ @ post financial crisis levels , and is likely to remain so for quite some time , ” he added .

Markets live: FTSE 100 falters after last week’s rally as US stocks inch up
Drugmaker Astrazeneca was one of the index’s fallers on Monday morning
The FTSE 100 faltered today after a strong rally last week, coming down from highs despite more countries moving to ease lockdown measures.
The blue chip index dropped as much as 0.75 per cent following the open. The FTSE 100 later pared back losses to close down 0.085 per cent lower at 6,478.
Meanwhile, US stocks pushed higher again as investors shrugged off widespread racism protests after a shock US jobs report showing 2.5m new jobs were created last month, defying predictions of 8m more redundancies.
Europe was also subdued, however, after last week’s rally, to join the FTSE 100 lower. Germany’s Dax dropped 0.7 per cent on an Ifo survey suggesting manufacturing faces more production plunges to close down 0.16 per cent. France’s Cac fell 0.3 per cent.
Read more: Astrazeneca approaches Gilead about potential merger
Drugmaker Astrazeneca closed down nearly three per cent following reports yesterday that it had approached US rival Gilead about a possible merger to form one of the world’s largest drug companies.
The Cambridge-based company, which recently saw its share price hit a record high, contacted Gilead last month in a bid to gauge interest in a possible deal, but did not provide details of any transaction, Bloomberg reported.
“Investors are unlikely to welcome a large M&A deal at a time when both companies are trying to fight coronavirus as it could prove to be a distraction to management,” said AJ Bell investment director Russ Mould.
“The timing seems wrong when both companies have such important work to do,” he added.
However, analysts were still positive about the FTSE 100, and blamed the UK’s quarantine for holding back airlines and travel stocks
“The surge in travel- and airline-related names comes on the day when the UK implements a quarantine for overseas travel, perhaps the very definition of shutting stable doors after the horse has bolted,” Chris Beauchamp, chief market analyst at IG, said.
“With lockdowns easing across Europe and no sign of a second infection wave, this move has been staunchly opposed by airlines, and it looks like the market expects the restriction to remain in place for only a limited time.
“Also, on the up this morning are oil stocks, after Opec+ extended their production cuts until the end of July. It looks like the oversupply story is being replaced by expectations of higher demand, or least by hopes that demand will not be as weak as previously feared.
“Overall, markets continue to look past all the bad data and concentrate on the good news, hence the strong reaction to Friday’s job numbers. While this leaves indices vulnerable to a pullback, the strength of the bounce of the past month suggests that such weakness will be only temporary.”
Oil prices rise on OPEC+ cuts
The mid-cap FTSE 250 rose as much as 0.91 per cent, while oil and gas stocks jumped after major producers agreed to extend a deal on record output cuts to the end of July.
Over the weekend, OPEC and its allies formally agreed to extend the deal to withdraw almost 10 per cent of global supplies from the market by a third month to the end of July.
Saudi Arabia is not planning to extend its voluntary cuts in oil output into July, the country’s energy minister Prince Abdulaziz bin Salman told reporters on Monday.
Brent Crude and West Texas Intermediate both hit their highest price since early March following the OPEC+ agreement, helping boost energy firms in the FTSE 100.
Oil major Shell rose as much as 3.91 per cent, while BP climbed 2.88 per cent.
Bjarne Schieldrop, chief commodities analyst at Swedish corporate bank SEB, said the oil market “is now totally reliant on full compliance to production targets in OPEC+”.
“If the producers in the group do not comply, they risk all producers in the group moving back to full production. This threat is the only real controlling mechanism the group has, and it will have to use it from time to time for the weapon to be real,” he said.
“OPEC+ has become much more nimble and light on its feet. It will cut deep in the short term and create prompt tightness, with the very front-end of the Brent crude curve now starting to move into backwardation, but it gives fewer assurances for the future.”
European stocks pare back gains
In Europe, shares retreated from a three-month high as investors moved to lock in some profits following last week’s rally. Following the FTSE 100’s lead, the pan-European STOXX 600 shed as much as 0.8 per cent, before closing down 0.25 per cent. Personal and household goods, healthcare and retail sectors leading the decline.
Germany’s DAX slipped one per cent after data showed that German industrial production recorded its steepest plunge on record in April, as the coronavirus pandemic forced companies in Europe’s largest economy to dramatically scale back production.
The index had pared back most of the losses to close 0.087 per cent down.
France’s CAC 40 fell as much as 0.79 per cent in morning trading, but made up some ground later and down 0.38 per cent.
US stocks stay in green after shock jobs report
The Dow added one per cent shortly after Wall Street opened this afternoon after Friday’s shock US jobs report.
Economists were shocked when the US economy added 2.5m jobs last month, compared to a predicted fall of 8m.
April had seen a record plunge of 20.7m jobs as the coronavirus lockdown saw firms haemorrhage staff.
The Dow trimmed its gains but still stood 0.9 per cent higher by 4.30pm. The S&P 500 rose 0.36 per cent while the Nasdaq edged up 0.15 per cent.
Analysts said US stocks’ broad push higher suggested traders believe the Federal Reserve’s trillions of dollars of stimulus is working, and helping curb the huge levels of unemployment in the US.
“It’s a bullish signal for global stocks,” Edward Moya, senior market analyst at trading platform Oanda, said.
“The world’s largest economy just grabbed the baton back and is leading the stock market rally.”
New York’s initial reopening phase begins today, adding to optimism, as Moya said “Wall Street continues to ride the global reopening trade”.
The S&P 500 has almost recovered all its coronavirus losses despite almost 2m infections and 110,000 deaths in the US.
Widespread racism protests after the death of George Floyd in police custody have also failed to halt the rise of US stocks.
The S&P 500 hovered just above 3,200 points around 3pm, close to its February high of 3,386.
The Nasdaq posted a new intraday record high on Friday, following strong US jobs figures that helped lift hopes of a quicker global economic recovery following weeks of lockdowns aimed at limiting the spread of the coronavirus pandemic.
Read more: Ifo: German industry predicts summer-long production slump
“In the space of four weeks we’ve seen history made as the US economy posted a record number of job losses in one month, only to be followed by a record number of jobs gains in the following month,” said CMC Markets’ Michael Hewson.
‘Despite all of the enthusiasm over last month’s jobs report it doesn’t change the fact that US unemployment is still well above post financial crisis levels, and is likely to remain so for quite some time,” he added.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-06-08--CoinCorner launches UK 'Bitcoin cashback' initiative

One of the UK ’ s leading Bitcoin exchanges , CoinCorner , has launched a new ‘ Bitcoin cashback ’ service to reward customers when they shop online .
CoinCorner has partnered with more than 400 top retailers to launch the first-of-its-kind service in the UK .
Some of those who have partnered with the exchange include household names such as Burtn , Twinings , COnfused.com and New Era .
CoinCorner ’ s customers can browse through the retailers on the platform ’ s directory , before clicking through to their chosen site .
There , they shop as normal @ @ @ @ @ @ @ purchase they will receive a notification from the exchange to confirm their Bitcoin cashback .
The retailer pays CoinCorner once customers make a purchase on their site and once the exchange receives the money , it is flipped into Bitcoin and credited to the CoinCorner account .
The amount of Bitcoin the customer gets back depends on how much the retailer offers but CoinCorner claims people can earn up to 20 per cent in rewards .
Chief executive Danny Scott said : “ This is an opportunity for people to earn and own @ @ @ @ @ @ @ services .
A number of our customers have already used the service after we soft launched it on CoinCorner.com last week.
” The service follows on from the cashback initiatives offered in the US and other countries .
New York-based startup Lolli is one of the biggest cashback apps on the market .
Online shoppers add a browser extension , create an account and and shop at the supported retailers , which include Expedia , Hilton and Sephora .
Read more : Bitcoin value crashes ahead of third halving Scott added : “ @ @ @ @ @ @ @ similar service here , we ’ re delighted to be able to bring this to the UK market , and at a time when online shopping is the safest way to browse and buy.
” Australia-based crypto cashback platform BitcoinRewards was launched in 2017 and also offers users the ability to earn rebates .
Supported retailers include Asos , Best Buy and Etihad Airways .
Get the news as it happens by following City A.M. on Twitter .

CoinCorner launches UK ‘Bitcoin cashback’ initiative
Photo by David McBee from Pexels.
One of the UK’s leading Bitcoin exchanges, CoinCorner, has launched a new ‘Bitcoin cashback’ service to reward customers when they shop online.
CoinCorner has partnered with more than 400 top retailers to launch the first-of-its-kind service in the UK. Some of those who have partnered with the exchange include household names such as Burtn, Twinings, COnfused.com and New Era.
CoinCorner’s customers can browse through the retailers on the platform’s directory, before clicking through to their chosen site. There, they shop as normal and once a customer has completed their purchase they will receive a notification from the exchange to confirm their Bitcoin cashback.
The retailer pays CoinCorner once customers make a purchase on their site and once the exchange receives the money, it is flipped into Bitcoin and credited to the CoinCorner account.
The amount of Bitcoin the customer gets back depends on how much the retailer offers but CoinCorner claims people can earn up to 20 per cent in rewards.
Chief executive Danny Scott said: “This is an opportunity for people to earn and own Bitcoin while buying their everyday products and services. A number of our customers have already used the service after we soft launched it on CoinCorner.com last week.”
The service follows on from the cashback initiatives offered in the US and other countries. New York-based startup Lolli is one of the biggest cashback apps on the market. Online shoppers add a browser extension, create an account and and shop at the supported retailers, which include Expedia, Hilton and Sephora.
Scott added: “With much demand from consumers for a similar service here, we’re delighted to be able to bring this to the UK market, and at a time when online shopping is the safest way to browse and buy.”
Australia-based crypto cashback platform BitcoinRewards was launched in 2017 and also offers users the ability to earn rebates. Supported retailers include Asos, Best Buy and Etihad Airways.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-06-08--Two more Easyjet board members to step down this year

Two members of the Easyjet board will step down this year , it was announced this morning , just a few weeks after finance chief Andrew Findlay also turned in his resignation .
Deputy chairman Charles Gurassa and finance committee chair Andy Martin will quit the board in line with corporate governance best practice , having each served for nine years .
Martin will step down at the end of August , while Gurassa will leave at the end of the year in order to provide “ continuity ” as the coronavirus crisis rumbles on .
Read more : Easyjet @ @ @ @ @ @ @ lost due to quarantine plans Easyjet chairman John Barton thanked the two for their service , saying : “ We have benefited greatly from their wise counsel and I am pleased that we will continue to do so over the next few months as we navigate the challenges of the Covid-19 pandemic ” .
However , Easyjet founder and largest stakeholder Sir Stelios Haji-Ioannou , who has been waging a campaign against the board throughout the crisis over a new aircraft contract with Airbus , questioned the timing of the move .
He @ @ @ @ @ @ @ situation very bizarre .
Two more scoundrels running for the hills following the finance chief ’ s resignation just two weeks ago .
“ This is a board that only 10 working days earlier was telling investors that this is not the time for regime change .
It now seems to be happening anyway .
Before the Open : Get the jump on the markets with our early morning newsletter “ The real question in my mind is…were Gurassa and Martin pushed or did they jump ?
” .
The dispute between Sir @ @ @ @ @ @ @ a head last month when shareholders voted down the Greek-Cypriot businessman ’ s proposals to remove Barton , chief executive Johan Lundgren , and two other board members at an extraordinary general meeting .
Despite surviving the attempted coup , Findlay tendered his resignation in the following days , and will leave the airline in 2021 .
Easyjet has been hit hard by the coronavirus pandemic , grounding its entire 337 plane fleet and cutting 4,500 jobs .
It is currently working with Ryanair and British Airways on legal action against the UK @ @ @ @ @ @ @ , which it described as “ wholly unjustified and disproportionate ” .
Lundgren this morning warned that unless the blanket measures are replaced by a targeted air bridges solution , more jobs may be lost at the carrier .

Two more Easyjet board members to step down this year
Two members of the Easyjet board will step down this year, it was announced this morning, just a few weeks after finance chief Andrew Findlay also turned in his resignation.
Deputy chairman Charles Gurassa and finance committee chair Andy Martin will quit the board in line with corporate governance best practice, having each served for nine years.
Martin will step down at the end of August, while Gurassa will leave at the end of the year in order to provide “continuity” as the coronavirus crisis rumbles on.
Easyjet chairman John Barton thanked the two for their service, saying: “We have benefited greatly from their wise counsel and I am pleased that we will continue to do so over the next few months as we navigate the challenges of the Covid-19 pandemic”.
However, Easyjet founder and largest stakeholder Sir Stelios Haji-Ioannou, who has been waging a campaign against the board throughout the crisis over a new aircraft contract with Airbus, questioned the timing of the move.
He said: “I find the current situation very bizarre. Two more scoundrels running for the hills following the finance chief’s resignation just two weeks ago.
“This is a board that only 10 working days earlier was telling investors that this is not the time for regime change. It now seems to be happening anyway.
Before the Open: Get the jump on the markets with our early morning newsletter
“The real question in my mind is…were Gurassa and Martin pushed or did they jump?”.
The dispute between Sir Stelios and the Easyjet board came to a head last month when shareholders voted down the Greek-Cypriot businessman’s proposals to remove Barton, chief executive Johan Lundgren, and two other board members at an extraordinary general meeting.
Despite surviving the attempted coup, Findlay tendered his resignation in the following days, and will leave the airline in 2021.
Easyjet has been hit hard by the coronavirus pandemic, grounding its entire 337 plane fleet and cutting 4,500 jobs.
It is currently working with Ryanair and British Airways on legal action against the UK government over the new 14-day quarantine rules, which it described as “wholly unjustified and disproportionate”.
Lundgren this morning warned that unless the blanket measures are replaced by a targeted air bridges solution, more jobs may be lost at the carrier.


cityam--2020-06-08--Why you might never buy a phone again

Why you might never buy a phone again

In the past few years we ’ ve ditched DVDs , said goodbye to CDs and realised that owning a car is an expensive inconvenience .
Increasingly consumers looking to save time , space and money are streaming , subscribing and leasing their stuff .
The next item to lease could be your mobile phone and that ’ s where London-based startup , Raylo , comes in .
Raylo ( with an impressive investor roster including Macquarie , Techstart Ventures , Funding Circle co-founders , Impact X and ex Carphone co-founder Guy Johnson ) is leading the way in revolutionising @ @ @ @ @ @ @ networks with a proposition that ’ s better for your pocket and , crucially , better for the planet .
Until now shopping for a new phone has meant a pricey contract or a huge upfront payment , before your once prized possession ends up languishing in a junk drawer .
With their leasing model , Raylo offers far better value , more control and easier access to the latest tech , along with a more sustainable way to upgrade when you ’ re ready for a newer model .
So , how @ @ @ @ @ @ @ brand new iPhone 11 from Raylo costs £25.99 a month .
Simply combine that with the SIM of your choice , which you can get from just £10 a month and you ’ ll be paying a way lower price than a phone and SIM contract with the big networks .
When it ’ s time to upgrade , Raylo will swap your phone for the latest model and ensure your old one stays in circulation .
This circularity is fundamental to their stance on sustainability .
The reuse of products and materials @ @ @ @ @ @ @ , championed by the Ellen MacArthur Foundation .
Raylo is one of a number of brands looking at how products can be reused and recycled to limit their environmental impact .
Nike is turning old trainers into new ones and H & M trialled a clothes rental and repair service at the end of last year .
It ’ s electronic waste , though , that ’ s one of the fastest growing threats to the planet , with around 50 million tonnes produced annually .
Even if you don ’ t dump @ @ @ @ @ @ @ it in the aforementioned drawer , every mobile not re-used means the mining of limited natural resources to manufacture new ones .
Last month , Raylo added the option to lease a refurbished iPhone X for £14.99 a month – completing the circular model directly with customers in the UK .
Pre-owned phones are another trend on the rise , with research by CSS Insight this year finding 60 % of shoppers would consider one .
Raylo ’ s refurbished phones go through a rigorous 70-point test to make sure they ’ re @ @ @ @ @ @ @ a warranty for full peace of mind .
Raylo also uses 100 % recyclable packaging and includes a compostable phone case with every order .
Whether you go new or refurbished , leasing your phone means it ’ ll get a new lease of life whilst reducing the strain on people ’ s wallets .
As we get more savvy about sustainability and less willing to splash out on new phones that look much like the old ones , now ’ s as a great time as any to embrace this greener approach @ @ @ @ @ @ @ it .
Raylo it .

Sponsored Ad Feature is produced by an advertiser with the specific intent to promote a product and is not produced by the City A.M. team.
Why you might never buy a phone again
In the past few years we’ve ditched DVDs, said goodbye to CDs and realised that owning a car is an expensive inconvenience. Increasingly consumers looking to save time, space and money are streaming, subscribing and leasing their stuff. The next item to lease could be your mobile phone and that’s where London-based startup, www.raylo.com, comes in.
Raylo (with an impressive investor roster including Macquarie, Techstart Ventures, Funding Circle co-founders, Impact X and ex Carphone co-founder Guy Johnson) is leading the way in revolutionising the high-waste, high-cost approach of traditional networks with a proposition that’s better for your pocket and, crucially, better for the planet.
Until now shopping for a new phone has meant a pricey contract or a huge upfront payment, before your once prized possession ends up languishing in a junk drawer. With their leasing model, Raylo offers far better value, more control and easier access to the latest tech, along with a more sustainable way to upgrade when you’re ready for a newer model.
So, how do the numbers stack up? A brand new iPhone 11 from Raylo costs £25.99 a month. Simply combine that with the SIM of your choice, which you can get from just £10 a month and you’ll be paying a way lower price than a phone and SIM contract with the big networks.
When it’s time to upgrade, Raylo will swap your phone for the latest model and ensure your old one stays in circulation. This circularity is fundamental to their stance on sustainability. The reuse of products and materials is part of a circular economy model, championed by the Ellen MacArthur Foundation. Raylo is one of a number of brands looking at how products can be reused and recycled to limit their environmental impact. Nike is turning old trainers into new ones and H&M trialled a clothes rental and repair service at the end of last year. It’s electronic waste, though, that’s one of the fastest growing threats to the planet, with around 50 million tonnes produced annually. Even if you don’t dump your old phone and choose to stash it in the aforementioned drawer, every mobile not re-used means the mining of limited natural resources to manufacture new ones.
Raylo’s circular model for new and refurbished phones
Last month, Raylo added the option to lease a refurbished iPhone X for £14.99 a month – completing the circular model directly with customers in the UK. Pre-owned phones are another trend on the rise, with research by CSS Insight this year finding 60% of shoppers would consider one. Raylo’s refurbished phones go through a rigorous 70-point test to make sure they’re up to scratch, and come with a warranty for full peace of mind. Raylo also uses 100% recyclable packaging and includes a compostable phone case with every order.
Whether you go new or refurbished, leasing your phone means it’ll get a new lease of life whilst reducing the strain on people’s wallets. As we get more savvy about sustainability and less willing to splash out on new phones that look much like the old ones, now’s as a great time as any to embrace this greener approach to gadgets. Don’t own it. Raylo it.


cityam--2020-06-08--European Commission set to scrutinise Fiat-PSA mega-merger

The European Commission may seek concessions in order to clear the proposed $ 50bn ( £39.6bn ) merger of Fiat Chrysler and Peugeot owner PSA over competition concerns .
Reuters reported that the body ’ s antitrust regulators were worried by the potential size of the two firm ’ s market share in small vans .
According to sources , the two firms must dispel the Commission ’ s doubts over the deal and offer concessions within the next two days .
If they do not meet the deadline , it was added , they will face a four-month long @ @ @ @ @ @ @ , which would create the world ’ s fourth-largest automotive company , was agreed in December .
It brings together PSA ’ s brands such as Peugeot , Opel and DS with the Italian firm ’ s Fiat , Jeep , Dodge , Ram and Maserati makes .
Before the Open : Get the jump on the markets with our early morning newsletter The combined PSA-FCA business , which is yet to be branded , will chase annual $ 4bn cost savings through shares purchasing agreements and by combining technologies .
The tie-up @ @ @ @ @ @ @ worldwide downturn in demand due to a variety of factors .
Once the merger completes , the combined entity will boast annual sales of 8.7m vehicles and revenues of almost €170bn ( £144bn ) as well as an operating profit margin of 6.6 per cent .
Read more : Peugeot owner PSA roars to record profit as group prepares for Fiat merger Both firms have hit back at suggestions that the current downturn caused by the coronavirus pandemic will affect the tie-up , which is due to complete early next year .
City @ @ @ @ @ @ @ for comment .

European Commission set to scrutinise Fiat-PSA mega-merger
The European Commission may seek concessions in order to clear the proposed $50bn (£39.6bn) merger of Fiat Chrysler and Peugeot owner PSA over competition concerns.
Reuters reported that the body’s antitrust regulators were worried by the potential size of the two firm’s market share in small vans.
According to sources, the two firms must dispel the Commission’s doubts over the deal and offer concessions within the next two days.
If they do not meet the deadline, it was added, they will face a four-month long investigation into the deal.
The merger, which would create the world’s fourth-largest automotive company, was agreed in December.
It brings together PSA’s brands such as Peugeot, Opel and DS with the Italian firm’s Fiat, Jeep, Dodge, Ram and Maserati makes.
Before the Open: Get the jump on the markets with our early morning newsletter
The combined PSA-FCA business, which is yet to be branded, will chase annual $4bn cost savings through shares purchasing agreements and by combining technologies.
The tie-up comes as car makers struggle through a worldwide downturn in demand due to a variety of factors.
Once the merger completes, the combined entity will boast annual sales of 8.7m vehicles and revenues of almost €170bn (£144bn) as well as an operating profit margin of 6.6 per cent.
Both firms have hit back at suggestions that the current downturn caused by the coronavirus pandemic will affect the tie-up, which is due to complete early next year.
City AM has contacted PSA and Fiat Chrysler for comment.


cityam--2020-06-08--Lookers delays financial results further and warns of share suspension

Car dealership firm Lookers has delayed publishing its financial results for the third time and has warned it may have to suspend trading .
Lookers had been scheduled to report its 2019 financial results in March but had to delay publication until April after it had “ identified potentially fraudulent transactions ” and hired Grant Thornton to review the situation .
Read more : Coronavirus : Lookers to slash 1,500 jobs and shutter showrooms Auditor Deloitte has also planned to resign as soon as the 2019 accounts are released .
The dealership network last week said it expected to publish @ @ @ @ @ @ @ month .
However in a statement today , Lookers said it could take until the end of the month due to “ additional procedures that the company and Deloitte will now need to perform ” .
Before the Open : Get the jump on the markets with our early morning newsletter After consultation with the regulator , the Financial Conduct Authority ( FCA ) , the firm has warned that its shares will be suspended from 1 July if it does not publish its results by 30 June .
The firm ’ s @ @ @ @ @ @ @ the news .
“ The company ’ s priority and focus is the production of the 2019 results at the earliest possible date and by no later than the end of August 2020 , ” Lookers said in a statement .
The firm ’ s profits are under pressure despite reopening its dealerships after the government announced showrooms could reopen after two months of closures .
However it announced it will cut roughly 1,500 jobs and close 12 showrooms , reducing its portfolio to 136 dealerships .
The firm has been hit by @ @ @ @ @ @ @ closures will help ensure its long-term viability .
Get the news as it happens by following City A.M. on Twitter .

Lookers delays financial results further and warns of share suspension
Car dealership firm Lookers has delayed publishing its financial results for the third time and has warned it may have to suspend trading.
Lookers had been scheduled to report its 2019 financial results in March but had to delay publication until April after it had “identified potentially fraudulent transactions” and hired Grant Thornton to review the situation.
Auditor Deloitte has also planned to resign as soon as the 2019 accounts are released.
The dealership network last week said it expected to publish its results by the end of the month. However in a statement today, Lookers said it could take until the end of the month due to “additional procedures that the company and Deloitte will now need to perform”.
Before the Open: Get the jump on the markets with our early morning newsletter
After consultation with the regulator, the Financial Conduct Authority (FCA), the firm has warned that its shares will be suspended from 1 July if it does not publish its results by 30 June. The firm’s shares are down 14.44 per cent on the news.
“The company’s priority and focus is the production of the 2019 results at the earliest possible date and by no later than the end of August 2020,” Lookers said in a statement.
The firm’s profits are under pressure despite reopening its dealerships after the government announced showrooms could reopen after two months of closures.
However it announced it will cut roughly 1,500 jobs and close 12 showrooms, reducing its portfolio to 136 dealerships. The firm has been hit by plunging car sales and it said the closures will help ensure its long-term viability.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-06-08--Mulberry looks to cut a quarter of workforce

Mulberry is looking to cut 25 per cent of its global workforce as the British luxury brand looks to reduce its costs after demand for its products was dented by the coronavirus pandemic .
Mulberry , which employs around 1,500 people globally , said it expected the recovery of its sales levels in the medium term to be gradual , given the uncertainty over the impact and duration of the Covid-19 crisis on its business .
Read more : Mulberry warns it will swing to a loss as coronavirus hits handbags The group ’ s shares have fallen 30 per @ @ @ @ @ @ @ warned this morning that even once stores reopen , social distancing measures and decreased tourism would continue to impact revenue .
“ As a result of this , we must manage our operations and cost base accordingly to ensure the company is the correct size and structure to reflect market conditions , ” the company said .
“ Launching a [ employee ] consultation process has been an incredibly difficult decision for us to make but it is necessary for us to respond to these challenging market conditions , protect the maximum number @ @ @ @ @ @ @ of the business , ” said chief executive Thierry Andretta .
Shares in Mulberry fell as much as 1.17 per cent in morning trading to 193.7p .
Read more : Retail landlord Intu puts KPMG on standby to act as administrator Mulberry has a total of 120 stores across 25 countries , the majority of which are currently closed due to national lockdowns .
Its online business has remained open during the Covid-19 pandemic , and it has re-opened stores in China and South Korea .
The group ’ s UK stores will @ @ @ @ @ @ @ .

Mulberry looks to cut a quarter of workforce
A Mulberry store in Singapore
Mulberry is looking to cut 25 per cent of its global workforce as the British luxury brand looks to reduce its costs after demand for its products was dented by the coronavirus pandemic.
Mulberry, which employs around 1,500 people globally, said it expected the recovery of its sales levels in the medium term to be gradual, given the uncertainty over the impact and duration of the Covid-19 crisis on its business.
The group’s shares have fallen 30 per cent so far this year. Mulberry warned this morning that even once stores reopen, social distancing measures and decreased tourism would continue to impact revenue.
“As a result of this, we must manage our operations and cost base accordingly to ensure the company is the correct size and structure to reflect market conditions,” the company said.
“Launching a [employee] consultation process has been an incredibly difficult decision for us to make but it is necessary for us to respond to these challenging market conditions, protect the maximum number of jobs possible and safeguard the future of the business,” said chief executive Thierry Andretta.
Shares in Mulberry fell as much as 1.17 per cent in morning trading to 193.7p.
Mulberry has a total of 120 stores across 25 countries, the majority of which are currently closed due to national lockdowns.
Its online business has remained open during the Covid-19 pandemic, and it has re-opened stores in China and South Korea. The group’s UK stores will begin a phased re-opening on 15 June.