cityam--2020-12-20--Publish which firms get furlough cash, government told

The government should publish a list of companies that have received furlough money to increase transparency around the scheme , amid fears of waste and fraud , parliament ’ s spending watchdog has said .
The cross-party Public Accounts Committee ( PAC ) also said that chancellor Rishi Sunak ’ s repeated extensions to the scheme at short notice caused uncertainty that could have led to higher job losses .
Read more : Furlough scheme to be extended until April and loans to continue , too Sunak introduced the furlough scheme in March to cushion the blow from the coronavirus @ @ @ @ @ @ @ April last week amid fresh lockdowns .
Under the scheme , workers unable to work receive 80 per cent of their wages from the government , up to £2,500 .
So far , it has supported almost 10m jobs at a cost of more than £44bn .
However , MPs and taxpayers have consistently raised concerns that companies are misusing the scheme .
Many have also questioned whether it is efficient .
Last week , accountants BDO said it would pay back £4.1m of furlough money after criticism of partners ’ £500,000 payouts @ @ @ @ @ @ @ Revenue & Customs should list the companies who have used the scheme by the end of January 2021 .
“ With billions of pounds of taxpayers ’ money going into private companies to support jobs , the least we expect in return is transparency , ” said Committee chair Meg Hillier .
“ That is doubly so when speed has been prioritised over effectively targeting support , or checks on the value it offers.
” The report also raise questions over Sunak ’ s approach to changing economic policy .
The chancellor made @ @ @ @ @ @ @ in the autumn to extend support schemes at short notice .
This approach could have cost jobs as companies laid off workers thinking furlough was going to end , the report said .
Read more : Watches of Switzerland repays furlough cash as it clocks surge in sales during pandemic It said the government must “ provide as much clarity and forewarning as possible about the employment support arrangements ” .
HMRC and the Treasury have been contacted for comment .

Publish which firms get furlough cash, government told
Chancellor Rishi Sunak unveiled the furlough scheme in March to support jobs throughout coronavirus
The government should publish a list of companies that have received furlough money to increase transparency around the scheme, amid fears of waste and fraud, parliament’s spending watchdog has said.
The cross-party Public Accounts Committee (PAC) also said that chancellor Rishi Sunak’s repeated extensions to the scheme at short notice caused uncertainty that could have led to higher job losses.
Sunak introduced the furlough scheme in March to cushion the blow from the coronavirus pandemic. He extended it until next April last week amid fresh lockdowns.
Under the scheme, workers unable to work receive 80 per cent of their wages from the government, up to £2,500. So far, it has supported almost 10m jobs at a cost of more than £44bn.
However, MPs and taxpayers have consistently raised concerns that companies are misusing the scheme. Many have also questioned whether it is efficient.
Last week, accountants BDO said it would pay back £4.1m of furlough money after criticism of partners’ £500,000 payouts.
MPs demand ‘transparency’ over furlough
Today, the PAC said HM Revenue & Customs should list the companies who have used the scheme by the end of January 2021.
“With billions of pounds of taxpayers’ money going into private companies to support jobs, the least we expect in return is transparency,” said Committee chair Meg Hillier.
“That is doubly so when speed has been prioritised over effectively targeting support, or checks on the value it offers.”
The report also raise questions over Sunak’s approach to changing economic policy. The chancellor made numerous visits to the House of Commons in the autumn to extend support schemes at short notice.
This approach could have cost jobs as companies laid off workers thinking furlough was going to end, the report said.
It said the government must “provide as much clarity and forewarning as possible about the employment support arrangements”.
An HMRC spokesperson said: “The furlough scheme has saved millions of jobs and kept businesses in operation.
“We will consider carefully the findings and recommendations of the PAC report and respond in due course.”


cityam--2020-12-20--High street burns, but Issa brothers mull a fiddle with Nero

Asda owners EG Group are offering to fund a legal challenge against Caffe Nero over its controversial rescue deal , it was reported today .
The Group , owned by the petrol station tycoons the Issa Brothers , has hired lawyers as well as property agents Christie ’ s and CWM as part of an effort to overturn the coffee chain ’ s Compulsory Voluntary Agreement ( CVA ) in court .
Landlords would need to table the action , with EG Group hoping that a success in court would lead to a takeover of the coffee firm .
The @ @ @ @ @ @ @ Nero ’ s CVA was signed amid ongoing chaos on the high street , with landlords forced to accept losing most of their outstanding rent .
The tactic is similar to that used by Mike Ashley this year , who put money behind a bid to overturn Debenhams ’ CVA last year .
Nero told the Sunday Times : “ “ We fully believe the decisions we have taken are in the … best interests of our creditors and other key stakeholders.
” Read more : London enters Tier 4 : what does @ @ @ @ @

High street burns, but Issa brothers mull a fiddle with Nero
Caffe Nero faces an uncertain future, according to its own accounts.
Asda owners EG Group are offering to fund a legal challenge against Caffe Nero over its controversial rescue deal, it was reported today.
The Group, owned by the petrol station tycoons the Issa Brothers, has hired lawyers as well as property agents Christie’s and CWM as part of an effort to overturn the coffee chain’s Compulsory Voluntary Agreement (CVA) in court.
Landlords would need to table the action, with EG Group hoping that a success in court would lead to a takeover of the coffee firm.
The Sunday Times first reported the news.
Nero’s CVA was signed amid ongoing chaos on the high street, with landlords forced to accept losing most of their outstanding rent.
The tactic is similar to that used by Mike Ashley this year, who put money behind a bid to overturn Debenhams’ CVA last year.
Nero told the Sunday Times: ““We fully believe the decisions we have taken are in the … best interests of our creditors and other key stakeholders.”
EG Group declined to comment.
Read more: London enters Tier 4: what does it mean for you?


cityam--2020-12-21--UK house prices end year on high with £62bn more deals than 2019

UK house prices are set to finish the year on a high note despite the worst downturn since the 1700s , with the residential property market racking up £62bn more in agreed sales in 2020 than last year , according to new data .
Property website Zoopla said house prices rose at an annual rate of 3.9 per cent in November , taking the average cost of a home by its metrics to around £223,000 .
It was the strongest growth since 2017 , and up from 1.3 per cent a year ago .
Read more : UK house prices @ @ @ @ @ @ @ It is the latest evidence that the housing market has been unperturbed by the shock waves rippling through the economy during the coronavirus crisis .
Experts say that lockdowns have made people want to move house , while boosting the savings of many households .
A major tax break for new buyers has also driven up prices , they say .
Although exact estimates of the growth vary – and should not be taken as exact – all the data points to a stellar year for the property market in 2020 .
Zoopla @ @ @ @ @ @ @ sales agreed in 2020 will top £300bn , £62bn more than in 2019 .
That is despite the property market being closed for around two months in the spring .
The rebound in sales has been strongest in the south east and eastern of England , Zoopla said .
Its data showed that older , wealthier , long-time homeowners have taken a growing share of sales .
Zoopla said there had been a 40 per cent jump in demand for housing in 2020 compared to 2019 .
Yet it said supply had only @ @ @ @ @ @ @ helping to explain the surge in prices .
Richard Donnell , director of research at the property website , said a “ once in a lifetime re-assessment of housing ” was the key driver of the 2020 boom .
He added that it has “ has further to run in our view and… will support demand into 2021 ” .
Another key factor has been chancellor Rishi Sunak ’ s stamp duty holiday .
It raised the threshold at which the transaction tax is paid to £500,000 and will last until March , @ @ @ @ @ @ @ deals before then .
Read more : OBR forecasts house prices to fall next year as furlough and stamp duty holiday end However , Donnell said the market “ is not immune to economic forces and rising unemployment ” .
He said Zoopla expects annual growth in UK house prices to reach five per cent by around February 2021 .
But he said it would then slow to around one per cent by the end of the year “ as demand starts to weaken ” .

UK house prices end year on high with £62bn more deals than 2019
UK house prices are set to finish the year on a high note despite the worst downturn since the 1700s, with the residential property market racking up £62bn more in agreed sales in 2020 than last year, according to new data.
Property website Zoopla said house prices rose at an annual rate of 3.9 per cent in November, taking the average cost of a home by its metrics to around £223,000. It was the strongest growth since 2017, and up from 1.3 per cent a year ago.
It is the latest evidence that the housing market has been unperturbed by the shock waves rippling through the economy during the coronavirus crisis.
Experts say that lockdowns have made people want to move house, while boosting the savings of many households. A major tax break for new buyers has also driven up prices, they say.
Although exact estimates of the growth vary – and should not be taken as exact – all the data points to a stellar year for the property market in 2020.
Zoopla today said the value of UK house sales agreed in 2020 will top £300bn, £62bn more than in 2019. That is despite the property market being closed for around two months in the spring.
The rebound in sales has been strongest in the south east and eastern of England, Zoopla said. Its data showed that older, wealthier, long-time homeowners have taken a growing share of sales.
Jump in demand drives UK house prices
Zoopla said there had been a 40 per cent jump in demand for housing in 2020 compared to 2019. Yet it said supply had only increased by around four per cent, helping to explain the surge in prices.
Richard Donnell, director of research at the property website, said a “once in a lifetime re-assessment of housing” was the key driver of the 2020 boom.
He added that it has “has further to run in our view and… will support demand into 2021”.
Another key factor has been chancellor Rishi Sunak’s stamp duty holiday. It raised the threshold at which the transaction tax is paid to £500,000 and will last until March, causing people to rush to complete their deals before then.
However, Donnell said the market “is not immune to economic forces and rising unemployment”.
He said Zoopla expects annual growth in UK house prices to reach five per cent by around February 2021. But he said it would then slow to around one per cent by the end of the year “as demand starts to weaken”.


cityam--2020-12-21--Business confidence surged on vaccines before new lockdowns

The start of the UK ’ s coronavirus vaccination programme drove up business confidence to a nine-month high in December , a survey has shown .
However , the Lloyds business barometer gave a picture of businesses ’ attitudes before the government tightened the lockdown rules over Christmas , bringing new uncertainty to firms .
Read more : Christmas cancelled for London as capital enters “ Tier 4 ” Prime Minister Boris Johnson on Saturday announced London and large parts south east and east of England would be put into a new Tier 4 on Sunday .
Non-essential shops have @ @ @ @ @ @ @ hairdressers , gyms and other venues .
Before the announcement , businesses had become much more optimistic about the coming months , with the overall confidence gauge jumping by 17 points to minus four .
It was the largest monthly increase for more than four years , also reflecting the end of November ’ s England-wide lockdown .
However , it remained considerably below the long-term average after crashing at the start of the pandemic .
Hann-Ju Ho , senior economist at Lloyds , said : “ The news of the vaccine progress @ @ @ @ @ @ @ figures , more than offsetting uncertainties around the UK ’ s new trading relationship with the EU .
“ While confidence remains below average and significant challenges lie ahead , it is heartening to conclude a challenging year with a notable improvement in business sentiment and with the positive momentum hopefully continuing into 2021.
” Confidence in the manufacturing , construction and services sectors all rose sharply in December .
Yet Lloyds said confidence was still below average in all sectors .
It also noted that retail optimism was well below normal entering @ @ @ @ @ @ @ businesses in large parts of the country now face an even tougher winter than expected , the development of vaccines has cheered firms , the public and markets .
Read more : Oxford vaccine ‘ to be approved before the new year ’ The UK was the first country to approve Pfizer/Biontech ’ s vaccine .
It started giving out the jab in early December .
Lloyds said firms ’ views of the year ahead improved markedly in December .
Vaccines caused firms to boost their employment plans , with confidence levels in @ @ @ @ @ @ @ since March .

Business confidence surged on vaccines before new lockdowns
The arrival of coronavirus vaccines has lifted business confidence, but new lockdowns threaten to knock it again
The start of the UK’s coronavirus vaccination programme drove up business confidence to a nine-month high in December, a survey has shown.
However, the Lloyds business barometer gave a picture of businesses’ attitudes before the government tightened the lockdown rules over Christmas, bringing new uncertainty to firms.
Prime Minister Boris Johnson on Saturday announced London and large parts south east and east of England would be put into a new Tier 4 on Sunday. Non-essential shops have had to close, as well as hairdressers, gyms and other venues.
Before the announcement, businesses had become much more optimistic about the coming months, with the overall confidence gauge jumping by 17 points to minus four.
It was the largest monthly increase for more than four years, also reflecting the end of November’s England-wide lockdown.
However, it remained considerably below the long-term average after crashing at the start of the pandemic.
Vaccine offsets Brexit doubts
Hann-Ju Ho, senior economist at Lloyds, said: “The news of the vaccine progress has bolstered this month’s confidence figures, more than offsetting uncertainties around the UK’s new trading relationship with the EU.
“While confidence remains below average and significant challenges lie ahead, it is heartening to conclude a challenging year with a notable improvement in business sentiment and with the positive momentum hopefully continuing into 2021.”
Confidence in the manufacturing, construction and services sectors all rose sharply in December.
Yet Lloyds said confidence was still below average in all sectors. It also noted that retail optimism was well below normal entering the usually busy Christmas period.
Although businesses in large parts of the country now face an even tougher winter than expected, the development of vaccines has cheered firms, the public and markets.
The UK was the first country to approve Pfizer/Biontech’s vaccine. It started giving out the jab in early December.
Lloyds said firms’ views of the year ahead improved markedly in December. Vaccines caused firms to boost their employment plans, with confidence levels in this area moving to their least negative since March.


cityam--2020-12-20--New: France bans ALL travel from the UK - including truck and lorry drivers

The French Government has banned all travel from the UK for 48 hours , including freight drivers .
The move @ @ @ @ @ Belgium made similar calls after the emergence of a mutant strain of Covid-19 in Britain @ @ @ @ @ chaos at Britain ’ s ports , including Dover , and raises the prospect of @ @ @ @ @ at the border alongside their drivers for a full two days .
Only unaccompanied freight @ @ @ @ @ the Channel .
Read more : Dutch and Belgians shut border to the UK The @ @ @ @ @ will come into force from midnight tonight .
“ Given the new health risk , @ @ @ @ @ Castex tweeted , “ and pending its assessment , all flows of people from the @ @ @ @ @ suspended from midnight tonight.
” Castex said the two day ban would allow “ our @ @ @ @ @ common response ” and give the French government time to work on a “ suitable @ @ @ @ @ in the UK .

New: All EU countries ban UK travellers for 48 hours amid mutant strain scare
Getty
The EU has followed many of its countries in enforcing a BAN on all British travellers to the Continent and Ireland until midnight tomorrow.
A unilateral French decision has caused chaos at the port of Dover today but other countries soon joined.
Spain made the call to close its borders to the UK, with the exception of Spanish nationals and residents, this afternoon.
Controls at the border of Gibraltar – where there is already one case of the more infectious Covid strain – will be stepped up.
The move follows numerous countries around the world closing the borders with the UK after the emergence of a mutant strain of Covid-19 in Britain.
The closure at the French border will cause chaos at Britain’s ports, including Dover, and raises the prospect of truck-borne goods being held up at the border alongside their drivers for a full two days.
Only unaccompanied freight will be permitted to cross the Channel.
Read more: Dutch and Belgians shut border to the UK
The French Government’s decision will come into force from midnight tonight.
“Given the new health risk,” the French PM Jean Castex tweeted, “and pending its assessment, all flows of people from the United Kingdom to France are suspended from midnight tonight.”
Castex said the two day ban would allow “our European partners to achieve a common response” and give the French government time to work on a “suitable solution” for French citizens in the UK.


cityam--2020-12-20--UK registers record rise in coronavirus cases as Tier 4 comes into force

The number of coronavirus cases jumped by the most since the start of the pandemic on Sunday , with 35,928 new instances of Covid recorded as of 9am .
A further 326 people have died within 28 days of testing positive for coronavirus in the UK , the government said .
Read more : London in Tier 4 : What are the rules ?
It was down from the 534 recorded on Saturday .
But it means 67,401 people have now died in the UK within 28 days of a positive test .
The government has put London and much @ @ @ @ @ @ @ England under a strict new Tier 4 lockdown to try to halt the spread of the virus .
Mixing between households is banned , including on Christmas , and non-essential stores have had to close .
Read more : Tier 4 : What does it mean for travel ?
Prime Minister Boris Johnson yesterday said a new , more contagious variant of coronavirus was a major part of the problem .
Johnson also tightened the rules on Christmas gatherings .
He said people should only travel on Christmas day to mix with two @ @ @ @ @ @ @ recorded on Sunday was up from 18,477 recorded a week ago .
It means 190,744 people tested positive for coronavirus in the UK in the seven days to 20 December , up 51.2 per cent from the previous week .
Johnson yesterday said the emergence of a new variant of coronavirus was a key factor behind his decision to tighten lockdowns in England .
He said the government ’ s scientific advisers think the new strain could be as much as 70 per cent more transmissible than the old variant .
Read more @ @ @ @ @ @ @ before the new year ’ However , he said : “ There is no evidence to suggest that it is more lethal or causes more severe illness .
“ Equally there is no evidence to suggest the vaccine will be any less effective against the new variant .
”

UK registers record rise in coronavirus cases as Tier 4 comes into force
Rising coronavirus cases caused the government to cancel its previous Christmas rules and tighten restrictions over the festive period
The number of coronavirus cases jumped by the most since the start of the pandemic on Sunday, with 35,928 new instances of Covid recorded as of 9am.
A further 326 people have died within 28 days of testing positive for coronavirus in the UK, the government said.
It was down from the 534 recorded on Saturday. But it means 67,401 people have now died in the UK within 28 days of a positive test.
The government has put London and much of the east and south east of England under a strict new Tier 4 lockdown to try to halt the spread of the virus. Mixing between households is banned, including on Christmas, and non-essential stores have had to close.
Prime Minister Boris Johnson yesterday said a new, more contagious variant of coronavirus was a major part of the problem.
Johnson also tightened the rules on Christmas gatherings. He said people should only travel on Christmas day to mix with two other households.
UK coronavirus cases jump on Sunday
The almost 36,000 cases recorded on Sunday was up from 18,477 recorded a week ago.
It means 190,744 people tested positive for coronavirus in the UK in the seven days to 20 December, up 51.2 per cent from the previous week.
Johnson yesterday said the emergence of a new variant of coronavirus was a key factor behind his decision to tighten lockdowns in England.
He said the government’s scientific advisers think the new strain could be as much as 70 per cent more transmissible than the old variant.
However, he said: “There is no evidence to suggest that it is more lethal or causes more severe illness.
“Equally there is no evidence to suggest the vaccine will be any less effective against the new variant.”


cityam--2020-12-20--Peckhamplex, Rio Dalston and Prince Charles cinemas amongst DCMS grant recipients

Some of London ’ s best-loved cinemas have received vital funds from the Government ’ s Cultural Recovery Fund , it emerged today .
Some £16m has been injected into more than 200 independent cinemas across the country .
Peckhamplex , a multi-screen cinema famed for showing the latest blockbusters at knockdown £4.99 prices , received £564,423 from the Government scheme .
Read more : What does Tier 4 mean for you ?
The Rio Dalston received £110,296 , Kino Bermondsey £108,902 whilst the Castle Cinema in Hackney received £369,911 .
Genesis in Mile End and the Catford Mews both @ @ @ @ @ @ @ Charles Cinema just off Leicester Square .
Cinemas are among the hundreds of thousands of leisure and hospitality venues that have been battered by lockdown restrictions .
The British Film Institute was charged with distributing the grants , with another round to come as it becomes apparent leisure facilities will be shut for months to come .
Cinema legend Sir Michael Caine said “ for so many a local cinema is a place we know , love and have grown up with .
“ Let ’ s go to the pictures , ” @ @ @ @ @ @ @ across the capital due to Covid-19 restrictions .

Peckhamplex, Rio Dalston and Prince Charles cinemas amongst DCMS grant recipients
The Prince Charles is among those receiving cash (Pic: Getty Images)
Some of London’s best-loved cinemas have received vital funds from the Government’s Cultural Recovery Fund, it emerged today.
Some £16m has been injected into more than 200 independent cinemas across the country.
Peckhamplex, a multi-screen cinema famed for showing the latest blockbusters at knockdown £4.99 prices, received £564,423 from the Government scheme.
Read more: What does Tier 4 mean for you?
The Rio Dalston received £110,296, Kino Bermondsey £108,902 whilst the Castle Cinema in Hackney received £369,911.
Genesis in Mile End and the Catford Mews both received grants, as did the Prince Charles Cinema just off Leicester Square.
Cinemas are among the hundreds of thousands of leisure and hospitality venues that have been battered by lockdown restrictions.
The British Film Institute was charged with distributing the grants, with another round to come as it becomes apparent leisure facilities will be shut for months to come.
Cinema legend Sir Michael Caine said “for so many a local cinema is a place we know, love and have grown up with.
“Let’s go to the pictures,” he said.
Cinemas are currently closed across the capital due to Covid-19 restrictions.


cityam--2020-12-20--Giving 2020: The top global charity donors

City A.M are delighted to publish our 2020 guide to philanthropy , Giving Magazine .
Our annual guide to the @ @ @ @ @ unique to City A.M. , is this year published in both print and digital form @ @ @ @ @ inspirational stories and all the news from the world of philanthropy , here .

Giving 2020: The top global charity donors
City A.M are delighted to publish our 2020 guide to philanthropy, Giving Magazine.
Our annual guide to the biggest global private donors, unique to City A.M., is this year published in both print and digital form.
Find Giving, with inspirational stories and all the news from the world of philanthropy, here.


cityam--2020-12-20--India will be the big winner of this new world order

Delhi benefits from the structural fact that though we presently live in an era epitomised by superpower bipolarity , it is a very different type of two-power standoff than was the Cold War .
From 1945–1991 , America and the Soviet Union so dominated the international scene that they easily lined up much of the rest of the world behind them into two rigid , competing camps , characterised above all by their allegiance to either Washington or Moscow .
Read more : With the rest of the world distracted , China is on the march across Asia However , @ @ @ @ @ @ @ bipolarity — where , beneath the dominant Sino-American conflict , great powers like India , Russia , the EU , the Anglosphere countries , and Japan have much more latitude to act independently in their own interests — is allowing Delhi to flourish .
With the US only just emerging from the pandemic and enduring nationwide civil rights protests , rival superpower China is taking advantage .
Settling scores with the nationalist Indian government of Prime Minister Narendra Modi as it moves ever closer to the US is merely one example of Beijing @ @ @ @ @ @ @ its own backyard .
China ’ s many transgressions onto India ’ s side of the Line of Actual Control ( LAC ) , the disputed Sino-Indian border high in the Himalayas , follows the hauntingly similar “ salami slicing ” tactics Beijing has put in use in the South China Sea .
China incrementally advances , improving its tactical position , but doing so in a gradual way which does not ( quite ) compel its adversaries into a pushback .
Over time these minor tactical victories add up , becoming enduring @ @ @ @ @ @ @ a brilliant Indian geopolitical analyst and long-time China-watcher put it last week , the recent Sino-Indian military clashes along the LAC “ is the frontline for what is likely to unfold in the next decade unless it is responded to ” .
Saran notes that Chinese President Xi Jinping ’ s more aggressive foreign policy is driven by “ medieval mindset ” which views Delhi as a discordant and insubordinate neighbour that refuses to submit to Beijing ’ s natural dominance .
In essence , this month a mini-war has been fought in @ @ @ @ @ @ @ emerging the victor , crossing the LAC , inflicting 20 Indian fatalities and now controlling the Galwan Valley , on India ’ s side of the LAC .
But appearances can be highly deceptive in international relations .
For the purpose of the exercise from the Chinese point of view was not to gain territory on its far-away border , but rather to humiliate the Modi government .
Exhibiting its lack of emotional intelligence , the Chinese Communist Party leadership is failing to understand that bullying India is not likely to cow it @ @ @ @ @ @ @ firmly into America ’ s arms .
This great strategic shift between Washington and Delhi to a de facto alliance has been gathering pace for some time .
In 2016 , the US designated India a “ major defence partner ” for the first time , leading to increased intelligence sharing between the two great powers and a slew of arms deals , amounting to $ 7.9bn between 2017 and 2020 .
Annual joint naval exercises ( along with Japan ) are now the norm in the Indian Ocean .
New Delhi is @ @ @ @ @ @ @ India , the US , Japan , and Australia as a nascent anti-Chinese alliance of Indo-Pacific democracies .
The Modi government has been further encouraged as the Trump White House — exasperated by the antiquated G7 forum of major European and North American democracies ( plus Japan ) — has proposed the group ’ s expansion to include Asian powers Australia , South Korea , and India itself .
There is little doubt a momentous geostrategic re-alignment has begun .
As this new Cold War gathers pace , so are calls for the @ @ @ @ @ @ @ chain that has characterised the fading age of globalisation .
Rows over China ’ s complicity in the spread of Covid-19 will likely accelerate this process , as the US , EU , Japan , the UK , and Australia become more uncomfortable with their overdependence on Beijing .
This increasingly hawkish anti-China stance is a rare bipartisan point of commonality in toxic Washington , meaning that this change in economic direction is likely to continue whoever wins the 2020 presidential election .
So India ticks all the right boxes to be the @ @ @ @ @ @ @ decoupling from China .
As this Cold War heats up , look for India to be the major strategic winner of our new era .
Read more : We must not abandon the people of Hong Kong behind a new Great Wall

India will be the big winner of this new world order
Bullying India is not likely to cow it but rather drive New Delhi even more firmly into America’s arms
Delhi benefits from the structural fact that though we presently live in an era epitomised by superpower bipolarity, it is a very different type of two-power standoff than was the Cold War. From 1945–1991, America and the Soviet Union so dominated the international scene that they easily lined up much of the rest of the world behind them into two rigid, competing camps, characterised above all by their allegiance to either Washington or Moscow.
Read more: With the rest of the world distracted, China is on the march across Asia
However, today’s era of much looser bipolarity — where, beneath the dominant Sino-American conflict, great powers like India, Russia, the EU, the Anglosphere countries, and Japan have much more latitude to act independently in their own interests — is allowing Delhi to flourish.
With the US only just emerging from the pandemic and enduring nationwide civil rights protests, rival superpower China is taking advantage. Settling scores with the nationalist Indian government of Prime Minister Narendra Modi as it moves ever closer to the US is merely one example of Beijing’s increasingly aggressive foreign policy in its own backyard.
China’s many transgressions onto India’s side of the Line of Actual Control (LAC), the disputed Sino-Indian border high in the Himalayas, follows the hauntingly similar “salami slicing” tactics Beijing has put in use in the South China Sea. China incrementally advances, improving its tactical position, but doing so in a gradual way which does not (quite) compel its adversaries into a pushback. Over time these minor tactical victories add up, becoming enduring and strategic.
As Samir Saran, a brilliant Indian geopolitical analyst and long-time China-watcher put it last week, the recent Sino-Indian military clashes along the LAC “is the frontline for what is likely to unfold in the next decade unless it is responded to”.
Saran notes that Chinese President Xi Jinping’s more aggressive foreign policy is driven by “medieval mindset” which views Delhi as a discordant and insubordinate neighbour that refuses to submit to Beijing’s natural dominance.
In essence, this month a mini-war has been fought in the high Himalayas, with Beijing seemingly emerging the victor, crossing the LAC, inflicting 20 Indian fatalities and now controlling the Galwan Valley, on India’s side of the LAC.
But appearances can be highly deceptive in international relations. For the purpose of the exercise from the Chinese point of view was not to gain territory on its far-away border, but rather to humiliate the Modi government.
Exhibiting its lack of emotional intelligence, the Chinese Communist Party leadership is failing to understand that bullying India is not likely to cow it but rather drive New Delhi even more firmly into America’s arms.
This great strategic shift between Washington and Delhi to a de facto alliance has been gathering pace for some time. In 2016, the US designated India a “major defence partner” for the first time, leading to increased intelligence sharing between the two great powers and a slew of arms deals, amounting to $7.9bn between 2017 and 2020. Annual joint naval exercises (along with Japan) are now the norm in the Indian Ocean.
New Delhi is coming to view the Quadrilateral grouping of India, the US, Japan, and Australia as a nascent anti-Chinese alliance of Indo-Pacific democracies. The Modi government has been further encouraged as the Trump White House — exasperated by the antiquated G7 forum of major European and North American democracies (plus Japan) — has proposed the group’s expansion to include Asian powers Australia, South Korea, and India itself.
There is little doubt a momentous geostrategic re-alignment has begun.
As this new Cold War gathers pace, so are calls for the partial decoupling of the central Sino-American supply chain that has characterised the fading age of globalisation. Rows over China’s complicity in the spread of Covid-19 will likely accelerate this process, as the US, EU, Japan, the UK, and Australia become more uncomfortable with their overdependence on Beijing.
This increasingly hawkish anti-China stance is a rare bipartisan point of commonality in toxic Washington, meaning that this change in economic direction is likely to continue whoever wins the 2020 presidential election.
So India ticks all the right boxes to be the major economic beneficiary from a partial American decoupling from China. As this Cold War heats up, look for India to be the major strategic winner of our new era.
Read more: We must not abandon the people of Hong Kong behind a new Great Wall
Main image credit: Getty


cityam--2020-12-21--Europe hurtles into decline, almost unnoticed

For a Europe that has made managing rather than solving economic crises into an art form , the time for paying the piper is fast approaching .
The continent ’ s long-stagnating economy is perched at the edge of a precipice .
The Covid-19 health crisis has morphed over these past six months into a severe recession , exacerbating long-established European economic fault lines .
Already hard-pressed southern Europe is experiencing by far the worst of things , as the continent is rotting from within .
The south grows ever more politically resentful , even as the north grows weary @ @ @ @ @ @ @ .
Vastly underreported , Europe ’ s moribund economy is presently entering a doom loop of deflation , with extremely limited weapons at its disposal to avoid the dreaded Japanification of the continent .
With the European Central Bank ( ECB ) having already lowered interest rates to effectively zero , there simply isn ’ t much efficacy in trying to stimulate the continent ’ s economy with no real ammunition : the further interest rates are pushed down , the less efficacy such a course of action actually has .
If there @ @ @ @ @ @ @ the monetary side , the fiscal weapons are underwhelming too .
The vaunted €750bn EU-sponsored European Recovery Fund — far from sparking the much-hyped “ Hamiltonian moment ” , when the continent would at last proclaim to the world that it had gotten its fiscal act together — characteristically turned out to be much less than meets the eye .
Not due to kick in until mid-2021 and spread out over 27 countries with payments stretched until 2026 , this seems less an effort to decisively master the economic crisis than an attempt @ @ @ @ @ @ @ down the road , vainly hoping some good economic news magically turns up .
Before the Open newsletter : Start your day with the City View podcast and key market data Italy , the largest single recipient of grants from the fund , is a case in point .
Already in recession before the pandemic struck , Rome endured a depression-era collapse in GDP of 12.8 per cent in the second quarter of 2020 .
This is a country where a staggering 17 per cent of businesses are estimated to be zombie companies @ @ @ @ @ @ @ The grants offered amount to a fraction of what Italy needs just to tread water .
Nor is Rome keen to avail itself of the loan option the European Recovery Fund puts forward as another avenue to help an increasingly desperate southern Europe .
For the loans , at the insistence of the frugal northern Europeans , come with political strings attached that would make their recipients little more than economic colonies .
In other words , the European Recovery Fund , far from signaling a new and glorious chapter in the story @ @ @ @ @ @ @ to another half-measure signalling Europe ’ s relative decline .
For anyone still clinging to the true religion of Europe ’ s rise , all facts to the contrary , here are the numbers .
Read more : City to shift €150bn of UK assets into France ahead of Brexit Deflation is already setting in .
The Eurozone inflation rate was negative 0.3 per cent in September , after being negative 0.2 per cent in August .
In afflicted southern Europe , the September numbers were even worse than the average , with @ @ @ @ @ @ @ , negative 0.9 per cent in Italy , and negative 0.6 per cent in Spain .
Soon , Italy and Spain will be little more than ECB economic colonies , as the Bank has already bought a gargantuan 25 per cent of Italian debt , with that number expected to skyrocket to 50 per cent by next year .
In this time of no inflation and sclerotic growth , southern European debt rates look set to explode to unmanageable levels .
The OECD estimates , often notoriously overly favourable to Europe , make @ @ @ @ @ @ @ the end of next year , the OECD ’ s worst case scenario has Greek debt standing at 229 per cent of GDP , Italy at 192 per cent , Portugal at 158 per cent , France at 152 per cent , and Spain at 150 per cent .
It is time to forget the relentless euro-cheerleading .
There is no getting around the fact that Europe is in absolute decline .
Read more : LSE accepts €4.3bn offer to sell Borsa Italiana to Euronext

Best of 2020: Europe hurtles into decline, almost unnoticed
The vaunted €750bn EU-sponsored European Recovery Fund turned out to be much less than meets the eye
As the year winds down, City A.M. is looking back at the columns that tell the story of our year.
For a Europe that has made managing rather than solving economic crises into an art form, the time for paying the piper is fast approaching.
The continent’s long-stagnating economy is perched at the edge of a precipice. The Covid-19 health crisis has morphed over these past six months into a severe recession, exacerbating long-established European economic fault lines. Already hard-pressed southern Europe is experiencing by far the worst of things, as the continent is rotting from within. The south grows ever more politically resentful, even as the north grows weary of bailing out its hapless European brethren.
Read more: OECD’s digital tax proposals gain broad support, German finance minister says
Vastly underreported, Europe’s moribund economy is presently entering a doom loop of deflation, with extremely limited weapons at its disposal to avoid the dreaded Japanification of the continent.
With the European Central Bank (ECB) having already lowered interest rates to effectively zero, there simply isn’t much efficacy in trying to stimulate the continent’s economy with no real ammunition: the further interest rates are pushed down, the less efficacy such a course of action actually has.
If there is nothing much to be done on the monetary side, the fiscal weapons are underwhelming too. The vaunted €750bn EU-sponsored European Recovery Fund — far from sparking the much-hyped “Hamiltonian moment”, when the continent would at last proclaim to the world that it had gotten its fiscal act together — characteristically turned out to be much less than meets the eye.
Not due to kick in until mid-2021 and spread out over 27 countries with payments stretched until 2026, this seems less an effort to decisively master the economic crisis than an attempt merely to yet again kick the can down the road, vainly hoping some good economic news magically turns up.
Before the Open newsletter: Start your day with the City View podcast and key market data
Italy, the largest single recipient of grants from the fund, is a case in point. Already in recession before the pandemic struck, Rome endured a depression-era collapse in GDP of 12.8 per cent in the second quarter of 2020. This is a country where a staggering 17 per cent of businesses are estimated to be zombie companies by mid-2021, having negative worth. The grants offered amount to a fraction of what Italy needs just to tread water.
Nor is Rome keen to avail itself of the loan option the European Recovery Fund puts forward as another avenue to help an increasingly desperate southern Europe. For the loans, at the insistence of the frugal northern Europeans, come with political strings attached that would make their recipients little more than economic colonies.
In other words, the European Recovery Fund, far from signaling a new and glorious chapter in the story of ever-deepening continental integration, instead amounts to another half-measure signalling Europe’s relative decline.
For anyone still clinging to the true religion of Europe’s rise, all facts to the contrary, here are the numbers.
Read more: City to shift €150bn of UK assets into France ahead of Brexit
Deflation is already setting in. The Eurozone inflation rate was negative 0.3 per cent in September, after being negative 0.2 per cent in August. In afflicted southern Europe, the September numbers were even worse than the average, with a negative 2.3 per cent in Greece, negative 0.9 per cent in Italy, and negative 0.6 per cent in Spain.
Soon, Italy and Spain will be little more than ECB economic colonies, as the Bank has already bought a gargantuan 25 per cent of Italian debt, with that number expected to skyrocket to 50 per cent by next year.
In this time of no inflation and sclerotic growth, southern European debt rates look set to explode to unmanageable levels. The OECD estimates, often notoriously overly favourable to Europe, make for the grimmest of reading. By the end of next year, the OECD’s worst case scenario has Greek debt standing at 229 per cent of GDP, Italy at 192 per cent, Portugal at 158 per cent, France at 152 per cent, and Spain at 150 per cent.
It is time to forget the relentless euro-cheerleading. There is no getting around the fact that Europe is in absolute decline.
Read more: LSE accepts €4.3bn offer to sell Borsa Italiana to Euronext
Main image credit: Getty


cityam--2020-12-21--Retailers feel Tier 4 pain as footfall drops 40 per cent

Retail footfall plunged by 40 per cent in the areas of England put under Tier 4 restrictions such as London , laying bare the impact of the restrictions on shop-owners during the crucial Christmas period .
Prime Minister Boris Johnson on Saturday announced London and parts of the south and south east of England would go into a new Tier 4 from Sunday .
Read more : UK registers record rise in coronavirus cases as Tier 4 comes into force It means non-essential shops , as well as pubs and restaurants ( except for takeaway ) , have had to @ @ @ @ @ @ @ coronavirus cases .
Johnson also tightened travel advice and limited the loosening of Covid restrictions to just Christmas day .
Retailers and business groups said the new rules would be disastrous during the Christmas period .
Footfall figures from data firm Springboard today gave a taste of the impact of the new lockdowns .
Across all retail destinations , footfall in Tier 4 was roughly 40 per cent lower on Sunday than a week earlier .
In Tier 3 – where non-essential shops can open – it was down by 17 per cent @ @ @ @ @ @ @ per cent lower .
Meanwhile , in the Tier 1 areas with the lightest restrictions , Springboard said footfall rose from the previous Sunday by a “ staggering ” 31 per cent .
“ The government ’ s shock announcement on Saturday afternoon with the introduction of Tier 4 has led to drastic changes in retail footfall across the UK.
” said Diane Wehrle , Springboard insights director .
“ The closure of non-essential retail in Tier 4 during what is usually the last , and busiest , week of Christmas trading will @ @ @ @ @ @ @ who have already had a difficult year.
” UK retailers have been hit hard on the stock market today , following the new Tier 4 rules .
Frasers Group shed 10.1 per cent while JD Sports dropped 5.5 per cent .
Primark owner Associated British Foods fell 5.1 per cent .

Retailers feel Tier 4 pain as footfall drops 40 per cent
Retail footfall plunged by 40 per cent in the areas of England put under Tier 4 restrictions such as London, laying bare the impact of the restrictions on shop-owners during the crucial Christmas period.
Prime Minister Boris Johnson on Saturday announced London and parts of the south and south east of England would go into a new Tier 4 from Sunday.
It means non-essential shops, as well as pubs and restaurants (except for takeaway), have had to close in an effort to halt soaring coronavirus cases.
Johnson also tightened travel advice and limited the loosening of Covid restrictions to just Christmas day. Retailers and business groups said the new rules would be disastrous during the Christmas period.
Footfall figures from data firm Springboard today gave a taste of the impact of the new lockdowns.
Tier 4 ‘hugely detrimental’ to retail
Across all retail destinations, footfall in Tier 4 was roughly 40 per cent lower on Sunday than a week earlier.
In Tier 3 – where non-essential shops can open – it was down by 17 per cent. In Tier 2 it was 14 per cent lower.
Meanwhile, in the Tier 1 areas with the lightest restrictions, Springboard said footfall rose from the previous Sunday by a “staggering” 31 per cent.
“The government’s shock announcement on Saturday afternoon with the introduction of Tier 4 has led to drastic changes in retail footfall across the UK.” said Diane Wehrle, Springboard insights director.
“The closure of non-essential retail in Tier 4 during what is usually the last, and busiest, week of Christmas trading will have a hugely detrimental impact on retailers who have already had a difficult year.”
UK retailers have been hit hard on the stock market today, following the new Tier 4 rules. Frasers Group shed 10.1 per cent while JD Sports dropped 5.5 per cent. Primark owner Associated British Foods fell 5.1 per cent.


cityam--2020-12-21--Bitcoin 2021 outlook and challenges in charts

2020 has been crucial for Bitcoin , we see it as the year of legitimisation for the broader public and investors , accelerated by the COVID crisis and the consequent rapid escalation of QE .
Our conversations with institutional clients have changed considerably over the course of 2020 , what was typically a desire to speculatively invest has now become one of being fearful of extreme loose monetary policy and negative interest rates , with clients looking for an anchor for their investments .
As understanding of bitcoin improves , clients have grasped that bitcoin has a limited supply and @ @ @ @ @ @ @ your assets while fiat is being debased .
This year we have seen cumulative flows ( stripping out the price effect ) into digital asset investment products rise from US $ 1.35bn at the start of the year to US $ 6.1bn today , with only 24 days of outflows for a total of 241 trading days this year .
Investors are buying and holding , a good indicator that it is slowly developing into a store of value .
Bitcoin remains a volatile asset , many expect a store of value to @ @ @ @ @ @ @ gold was developing into an investment store of value in the 1970s , it too had extremely high volatility .
As it has matured as a store of value , so too has its volatility declined .
We expect volatility in bitcoin to continue to decline over the course of 2021 .
Until recently , bitcoin and gold fund flows had been following a similar path .
Since the beginning of the year , a combination of loose monetary policy and a weak economy precipitated by COVID-19 led to fund inflows into both @ @ @ @ @ @ @ the news of a vaccine and consequent hopes of an improving economy , we have seen gold prices fall and gold fund outflows .
Conversely , bitcoin prices have continued to rise alongside inflows of US $ 2.5bn over the last 9 weeks ( see chart below ) .
We believe the increasing trend of legitimisation and corporate adoption are the likely reasons for bitcoin ’ s recent price rise .
Some fund newsletters also suggest a trend of investors selling gold positions and diversifying their hedges by adding bitcoin .
At present @ @ @ @ @ @ @ just 3.2 % of gold ’ s .
If it were to take further market share from gold , its price would increase commensurately .
If bitcoin were to take 5 % , we estimate , its price would equate to US $ 31,880 ( as shown in the table below ) .
The gold ban of the 1930s was quite unconstitutional and was a deeply political move – it was an attempt to prevent bank runs with huge penalties for hoarding it .
The political risks for gold remain , one entails @ @ @ @ @ @ @ , and the other is gold being used as a governmental scapegoat for not fixing its paper-based money regime – a similar argument could be made for Bitcoin .
We think Bitcoin does have risks of being banned but is unlikely .
It has been banned in China and India , although this hasn ’ t stopped it being used .
China bitcoin volumes used to represent 18 % of world volumes , it now represents 5 % .
We think it is much harder to completely eradicate due to its pseudonymous features @ @ @ @ @ @ @ non-sovereign store of value .
But it could be effectively banned for any investor operating in a standard regulatory regime .
On balance , governments will more likely try to compete with Bitcoin by issuing their own Central Bank Digital Currencies as there is a larger risk of it becoming a widely used as black-market currency .
Furthermore , banning Bitcoin will likely have far greater political consequences than it did in the 1930s as government/central bank profligacy is much more widely known than it was back then .
One could surmise that @ @ @ @ @ @ @ population is vaccinated , so too will demand for goods and services recover while supply chains have been decimated , leading to potential supply bottle-necks .
It is inconclusive that inflation will rise in 2021 , little evidence in macro data suggests that it will .
Nonetheless , it remains a tail risk .
Unlike gold , Bitcoin has not been around long enough to endure a period of hyper-inflation to establish its credentials as a true inflationary hedge , but conceptually it makes sense that it is .
Early observations suggest that @ @ @ @ @ @ @ 2017 has been improving as it started being used as a store of value .
Admittedly , 12 years isn ’ t enough data , but we are encouraged by the improving relationship .
Because of its characteristics ( scarcity , liquidity , high uptime ) , evidence suggests investors are increasingly using it as a store of value , the very features that theoretically help protect from inflation and debasement of fiat money supply .
Global searches on Google for the phrase bitcoin highlighted that 2017 was the year that bitcoin entered @ @ @ @ @ @ @ , searches for bitcoin have declined and not really picked-up during this more recent rally .
In economically weak and authoritarian regimes we have seen a rise in searches for bitcoin .
Take Argentina as an example , where there has been a sharp decline in the Peso in recent years , there has also been a corresponding rise in searches for bitcoin .
We believe this is due to individuals looking for a non-sovereign store of value that is easily accessible and provides an anchor relative to their native currency .
The @ @ @ @ @ @ @ volume growth helps strengthen this theory .
Political stability in the western world is better but there are other prompts for greater bitcoin adoption .
The rapidly increasing pot of negative yielding debt increases the risk of negative yielding deposits in commercial banks , and in some cases negative yields already exist in deposits over a certain size .
This coupled with the onset of COVID-19 ( leading to a drastic reduction in the use of physical cash ) makes it much easier for central banks to enforce negative yields on the ordinary @ @ @ @ @ @ @ are witnessing an improving relationship between bitcoin prices and negative yielding debt .
This will be an interesting trend to follow in 2021 .
CBDCs will become a buzzword in 2021 The concept of Central Bank Digital Currencies or CBDCs as they are commonly known , have garnered considerable attention from central banks in the second half of 2020 .
We expect there to be increased hype and confusion in 2021 as the details on how they are structured is revealed .
It appears likely that more CBDCs will enter live testing in @ @ @ @ @ @ @ set to make a decision on whether to pursue the digital euro project in January .
Here are some key considerations .
• CBDCs present an array of compelling merits , including the promise of near instantaneous payments and settlements , the eradication of black-market transactions , reductions in the costs of cash management and efficiency gains in accounting .
• They also present certain risks .
Of these , privacy is perhaps the most pressing .
CBDCs could potentially be programmed to control the spending of citizens , enforce negative yields on @ @ @ @ @ @ @ to monitor spending and income in a way that is far more intrusive than we are accustomed to .
• While the momentum established in 2020 has been significant , we should not expect fully functional CBDCs to emerge for some years – certainly not in the western world .
There are a plethora of questions still to be answered , including whether central banks will adopt a direct ‘ core ledger ’ with the central bank or use an existing wallet provider utilising Distributed Ledger Technology , how KYC ( know your @ @ @ @ @ @ @ be carried out , and how to manage the risk of hollowing-out systemically important commercial banks .
• CBDCs are likely to become very large and therefore a scalable wallet infrastructure will be required , this could become a big theme in 2021 as central banks look for credible wallet providers .
Finally , we at CoinShares feel it is important to stress that CBDCs are not a candidate to replace bitcoin .
The two are inherently different instruments , the latter being a distributed ledger , peer-to-peer system , with a predetermined @ @ @ @ @ @ @ be altered , which acts as an attractive non-sovereign store of value .
CBDCs , on the other hand , look as though they will be designed to mirror their respective issuer ’ s fiat currency .
In summary , we believe 2021 will be a pivotal year for bitcoin , with much greater institutional investor and corporate adoption .
We expect there to be much hype and confusion on the timing and implementation of CBDCs but ultimately CBDCs and bitcoin are very different .
If bitcoin is viewed with a pair of @ @ @ @ @ @ @ for even further price rises on top of its meteoric rise in 2020 .
James Butterfill has over 18 years of experience in fund management , economics and asset allocation gained most recently as an Investment Strategist at CoinShares .
Previously James acted as Head of Research at ETF securities with prior experience as a multi-asset fund manager and investment strategist at Coutts & Co , HSBC & ING Barings .
Crypto AM : Technically Speaking in association with Zumo

Bitcoin 2021 outlook and challenges in charts
Getty Images
2020 has been crucial for Bitcoin, we see it as the year of legitimisation for the broader public and investors, accelerated by the COVID crisis and the consequent rapid escalation of QE.
Our conversations with institutional clients have changed considerably over the course of 2020, what was typically a desire to speculatively invest has now become one of being fearful of extreme loose monetary policy and negative interest rates, with clients looking for an anchor for their investments. As understanding of bitcoin improves, clients have grasped that bitcoin has a limited supply and fulfils this role as an anchor for your assets while fiat is being debased.
This year we have seen cumulative flows (stripping out the price effect) into digital asset investment products rise from US$1.35bn at the start of the year to US$6.1bn today, with only 24 days of outflows for a total of 241 trading days this year. Investors are buying and holding, a good indicator that it is slowly developing into a store of value.
Bitcoin remains a volatile asset, many expect a store of value to have much lower volatility, but as gold was developing into an investment store of value in the 1970s, it too had extremely high volatility. As it has matured as a store of value, so too has its volatility declined. We expect volatility in bitcoin to continue to decline over the course of 2021.
Bitcoin, gold & loose monetary policy
Until recently, bitcoin and gold fund flows had been following a similar path. Since the beginning of the year, a combination of loose monetary policy and a weak economy precipitated by COVID-19 led to fund inflows into both gold and bitcoin. However, following the news of a vaccine and consequent hopes of an improving economy, we have seen gold prices fall and gold fund outflows. Conversely, bitcoin prices have continued to rise alongside inflows of US$2.5bn over the last 9 weeks (see chart below).
We believe the increasing trend of legitimisation and corporate adoption are the likely reasons for bitcoin’s recent price rise. Some fund newsletters also suggest a trend of investors selling gold positions and diversifying their hedges by adding bitcoin.
At present, bitcoin’s market capitalisation represents just 3.2% of gold’s. If it were to take further market share from gold, its price would increase commensurately. If bitcoin were to take 5%, we estimate, its price would equate to US$31,880 (as shown in the table below).
Rhetoric around government ban (unlikely)
The gold ban of the 1930s was quite unconstitutional and was a deeply political move – it was an attempt to prevent bank runs with huge penalties for hoarding it. The political risks for gold remain, one entails the dollar debasement pushing gold levels higher, and the other is gold being used as a governmental scapegoat for not fixing its paper-based money regime – a similar argument could be made for Bitcoin.
We think Bitcoin does have risks of being banned but is unlikely. It has been banned in China and India, although this hasn’t stopped it being used. China bitcoin volumes used to represent 18% of world volumes, it now represents 5%. We think it is much harder to completely eradicate due to its pseudonymous features – hence why we call it a non-sovereign store of value. But it could be effectively banned for any investor operating in a standard regulatory regime.
On balance, governments will more likely try to compete with Bitcoin by issuing their own Central Bank Digital Currencies as there is a larger risk of it becoming a widely used as black-market currency. Furthermore, banning Bitcoin will likely have far greater political consequences than it did in the 1930s as government/central bank profligacy is much more widely known than it was back then.
Bitcoin and Inflation
One could surmise that as an increasing number of the world population is vaccinated, so too will demand for goods and services recover while supply chains have been decimated, leading to potential supply bottle-necks. It is inconclusive that inflation will rise in 2021, little evidence in macro data suggests that it will. Nonetheless, it remains a tail risk.
Unlike gold, Bitcoin has not been around long enough to endure a period of hyper-inflation to establish its credentials as a true inflationary hedge, but conceptually it makes sense that it is. Early observations suggest that bitcoin’s relationship with inflation since 2017 has been improving as it started being used as a store of value. Admittedly, 12 years isn’t enough data, but we are encouraged by the improving relationship.
Because of its characteristics (scarcity, liquidity, high uptime), evidence suggests investors are increasingly using it as a store of value, the very features that theoretically help protect from inflation and debasement of fiat money supply.
Bitcoin, Authoritarian Regimes & Negative Yields
Global searches on Google for the phrase bitcoin highlighted that 2017 was the year that bitcoin entered the broader public consciousness. Since then, searches for bitcoin have declined and not really picked-up during this more recent rally. In economically weak and authoritarian regimes we have seen a rise in searches for bitcoin. Take Argentina as an example, where there has been a sharp decline in the Peso in recent years, there has also been a corresponding rise in searches for bitcoin.
We believe this is due to individuals looking for a non-sovereign store of value that is easily accessible and provides an anchor relative to their native currency. The World Bank Political stability index versus bitcoin volume growth helps strengthen this theory.
Political stability in the western world is better but there are other prompts for greater bitcoin adoption. The rapidly increasing pot of negative yielding debt increases the risk of negative yielding deposits in commercial banks, and in some cases negative yields already exist in deposits over a certain size. This coupled with the onset of COVID-19 (leading to a drastic reduction in the use of physical cash) makes it much easier for central banks to enforce negative yields on the ordinary person if they choose to.
We are witnessing an improving relationship between bitcoin prices and negative yielding debt. This will be an interesting trend to follow in 2021.
CBDCs will become a buzzword in 2021
The concept of Central Bank Digital Currencies or CBDCs as they are commonly known, have garnered considerable attention from central banks in the second half of 2020. We expect there to be increased hype and confusion in 2021 as the details on how they are structured is revealed.
It appears likely that more CBDCs will enter live testing in 2021. The European Central Bank is set to make a decision on whether to pursue the digital euro project in January. Here are some key considerations.
CBDCs present an array of compelling merits, including the promise of near instantaneous payments and settlements, the eradication of black-market transactions, reductions in the costs of cash management and efficiency gains in accounting.
They also present certain risks. Of these, privacy is perhaps the most pressing. CBDCs could potentially be programmed to control the spending of citizens, enforce negative yields on deposits and bail-ins, as well as to monitor spending and income in a way that is far more intrusive than we are accustomed to.
While the momentum established in 2020 has been significant, we should not expect fully functional CBDCs to emerge for some years – certainly not in the western world. There are a plethora of questions still to be answered, including whether central banks will adopt a direct ‘core ledger’ with the central bank or use an existing wallet provider utilising Distributed Ledger Technology, how KYC (know your customer) and anti-money laundering checks will be carried out, and how to manage the risk of hollowing-out systemically important commercial banks.
CBDCs are likely to become very large and therefore a scalable wallet infrastructure will be required, this could become a big theme in 2021 as central banks look for credible wallet providers.
Finally, we at CoinShares feel it is important to stress that CBDCs are not a candidate to replace bitcoin. The two are inherently different instruments, the latter being a distributed ledger, peer-to-peer system, with a predetermined monetary policy where the supply cannot be altered, which acts as an attractive non-sovereign store of value. CBDCs, on the other hand, look as though they will be designed to mirror their respective issuer’s fiat currency.
In summary, we believe 2021 will be a pivotal year for bitcoin, with much greater institutional investor and corporate adoption. We expect there to be much hype and confusion on the timing and implementation of CBDCs but ultimately CBDCs and bitcoin are very different. If bitcoin is viewed with a pair of gold spectacles, there is the potential for even further price rises on top of its meteoric rise in 2020.
James Butterfill has over 18 years of experience in fund management, economics and asset allocation gained most recently as an Investment Strategist at CoinShares. Previously James acted as Head of Research at ETF securities with prior experience as a multi-asset fund manager and investment strategist at Coutts & Co, HSBC & ING Barings.
Crypto AM: Technically Speaking in association with Zumo


cityam--2020-12-21--A Crypto Carol: The Ghosts of Blockchain

Tis the season for crypto-mania .
It ’ s always lovely to see all the crypto girls and boys with pound signs in their eyes huddled around their bitcoin charts waiting to see if Santa Satoshi is going to bring them another bull run before the end of 2020 .
And of course , the spoiled children are trying to hide all of their alt-coin purchases from Santa Satoshi because they have already lost so much they can ’ t bear to think about it .
The most important thing for each and every crypto-child is to repeat the magic @ @ @ @ @ @ @ the same way that Trump gaslights himself about election results ) : “ I believe in bitcoin .
I believe in bitcoin.
” So many bitcoin girls and boys do believe – especially your typically bright ( but terribly annoying ) relative .
You know , the second cousin from your half sister ’ s side of the family – that one .
So when Morgan ( or whatever your well-intentioned and over-excited relations name happens to be ) starts trying to give you financial advice and tries to tell you how it @ @ @ @ @ @ @ in on the biggest investment opportunity in their lifetime , take a deep breath , put yourself on mute , turn the volume down on the Christmas Zoom call and click over to your favourite holiday classic television show .
Or , you can read selected excerpts from A Crypto Carol – right here .
I ’ m sure you ’ ll recognise some of the main characters .
We have ‘ Bob KY-Crachit ’ , Ebeneezer Regulator , Tiny Retail Investor ‘ Tim ’ and ‘ Jacob Marley ’ ( played by @ @ @ @ @ @ @ tale also include the ‘ Gentle Giant ’ ( CZ ) as the ghost of blockchain present , and of course the visionary for the spirit of blockchain future – played by ‘ Vitalik Buterin ’ ) .
Let ’ s take a peek !
Just as Ebeneezer Regulator is awakened from his slumber , a spooky vision appears before him : The ghost of Blockchain Past , wearing a Santa Claus outfit with a giant Bitcoin B for a belt buckle .
proclaiming that he is the real Santa Satoshi and that @ @ @ @ @ @ @ .
“ Just look at what has happened to baby blockchain from when it all started on the 3rd of January 2009.
” A fog appears before a new 4K projector falls out of the ceiling and begins showing your atypical PowerPoint : 03 January 2009 : The genesis block of the first public permissionless blockchain is written .
carrying the message ripped from the headlines of that time : “ Chancellor on the brink of a second bailout for banks.
” The message written into the bitcoin blockchain for everyone to see @ @ @ @ @ @ @ The Times 03/Jan/2009 Chancellor on brink of second bailout for banks ” .
And for the next few years , blockchain trundled along .
Bitcoin was used to buy a pizza in May 2010 , when 1 pizza cost 10,000 BTC .
Several people used it for questionable products and services on the Silk Road until that market was shut down in November 2014 .
And when bitcoin was mentioned , it was almost always associated with money laundering .
Sadly , blockchain often took the brunt of bitcoin ’ s bad boy @ @ @ @ @ @ @ , when Ethereum came on the scene .
Ethereum was a new blockchain protocol and network that provided genuine utility and value – unlike bitcoin , which has no underlying value and never was able to realise its intended utility as an alternative to money .
Today , despite all the hype from the crypto community , blockchain is gaining adoption across enterprises in multiple industries .
Companies finally realise that blockchain doesn ’ t mean crypto , and that by using blockchain it doesn ’ t mean they are going to be @ @ @ @ @ @ @ can use blockchain for supply chain management , identity , asset tracking and more – without ever doing anything with crypto – or be a part of the latest craze – DeFi .
But what of the message from the ghost of Blockchain future ?
Relying on the quote from Roy Amara , a Stanford computer scientist in the 1960s , “ we overestimate the impact of technology in the short-term and underestimate the effect in the long run.
” Here are my predictions for blockchain in 2021 : • Blockchain is recognised @ @ @ @ @ @ @ at least one government , and work is started to create a framework for a new type of public service – owned and maintained by the public .
• Enterprises grow to appreciate and adopt the value of distributed computing and storage systems like the ones available from blockchain-style technology .
• Blockchain will be seen to play a pivotal role in safely , securely and privately sharing information about vaccinations at a global level .
• Blockchain will finally throw off the shackles of its association with cryptocurrencies , leaving projects like @ @ @ @ @ @ @ the digital highway .
At the same time , blockchain will deliver projects around creating real business value is created .
• People in IT departments and boardrooms will actually talk less about blockchain and more about working together with other companies in a trusted way .
Now back to the story !
Tiny Retail Investor Tim has just eaten his Christmas pudding , and he found the lucky sixpence .
No – he didn ’ t buy any bitcoin that day .
Tim knows that gambling is risky , and buying bitcoin @ @ @ @ @ @ @ trip to Vegas .
And as for Ebeneezer Regulator , he awoke the next morning with a spring in his step and set out to ensure that there was appropriate crypto regulations to protect Tiny Retail Investor Tim from the crypto conmen shilling their coins to frothing Twitterati and Telegram fans .
You ’ ll have to read the whole story ( not yet written ) to find out if they all lived happily ever after !
And on an end of the year note , I want to say thank you to @ @ @ @ @ @ @ of the Blockchain Rookies story since we first started it as a WhatsApp group in September 2017 : Partner in Crime and New Business : Jon Walsh Big Kahuna at Large : James Bowater here at CryptoAM And all the rest of you who have come along on the journey in reading , listening and watching Blockchain Rookies content throughout the year .
And remember : Blockchain is still very new .
There are no gurus .
There are no experts .
We ’ re all still learning .
We are all Blockchain @ @

Crypto AM: Inside Blockchain with Troy Norcross

A Crypto Carol: The Ghosts of Blockchain
iStock Photos
Tis the season for crypto-mania. It’s always lovely to see all the crypto girls and boys with pound signs in their eyes huddled around their bitcoin charts waiting to see if Santa Satoshi is going to bring them another bull run before the end of 2020. And of course, the spoiled children are trying to hide all of their alt-coin purchases from Santa Satoshi because they have already lost so much they can’t bear to think about it.
The most important thing for each and every crypto-child is to repeat the magic mantra phrase over and over (In the same way that Trump gaslights himself about election results):
“I believe in bitcoin. I believe in bitcoin.”
So many bitcoin girls and boys do believe – especially your typically bright (but terribly annoying) relative. You know, the second cousin from your half sister’s side of the family – that one.
So when Morgan (or whatever your well-intentioned and over-excited relations name happens to be) starts trying to give you financial advice and tries to tell you how it’s not too late to get in on the biggest investment opportunity in their lifetime, take a deep breath, put yourself on mute, turn the volume down on the Christmas Zoom call and click over to your favourite holiday classic television show.
Or, you can read selected excerpts from A Crypto Carol – right here. I’m sure you’ll recognise some of the main characters.
We have ‘Bob KY-Crachit’, Ebeneezer Regulator, Tiny Retail Investor ‘Tim’ and ‘Jacob Marley’ (played by Craig Wright). Stars in our tale also include the ‘Gentle Giant’ (CZ) as the ghost of blockchain present, and of course the visionary for the spirit of blockchain future – played by ‘Vitalik Buterin’). Let’s take a peek!
Bitcoin was used to buy a pizza in May 2010, when 1 pizza cost 10,000 BTC
Just as Ebeneezer Regulator is awakened from his slumber, a spooky vision appears before him: The ghost of Blockchain Past, wearing a Santa Claus outfit with a giant Bitcoin B for a belt buckle. proclaiming that he is the real Santa Satoshi and that he has an important message for Ebeneezer.
“Just look at what has happened to baby blockchain from when it all started on the 3rd of January 2009.” A fog appears before a new 4K projector falls out of the ceiling and begins showing your atypical PowerPoint:
03 January 2009: The genesis block of the first public permissionless blockchain is written. carrying the message ripped from the headlines of that time: “Chancellor on the brink of a second bailout for banks.” The message written into the bitcoin blockchain for everyone to see – never to be removed. “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”.
And for the next few years, blockchain trundled along. Bitcoin was used to buy a pizza in May 2010, when 1 pizza cost 10,000 BTC. Several people used it for questionable products and services on the Silk Road until that market was shut down in November 2014. And when bitcoin was mentioned, it was almost always associated with money laundering.
Sadly, blockchain often took the brunt of bitcoin’s bad boy reputation. That was until July 2015, when Ethereum came on the scene. Ethereum was a new blockchain protocol and network that provided genuine utility and value – unlike bitcoin, which has no underlying value and never was able to realise its intended utility as an alternative to money.
Today, despite all the hype from the crypto community, blockchain is gaining adoption across enterprises in multiple industries. Companies finally realise that blockchain doesn’t mean crypto, and that by using blockchain it doesn’t mean they are going to be aligning with money launderers. And they can use blockchain for supply chain management, identity, asset tracking and more – without ever doing anything with crypto – or be a part of the latest craze – DeFi.
But what of the message from the ghost of Blockchain future?
Relying on the quote from Roy Amara, a Stanford computer scientist in the 1960s, “we overestimate the impact of technology in the short-term and underestimate the effect in the long run.”
Here are my predictions for blockchain in 2021:
Blockchain is recognised as a critical element of infrastructure by at least one government, and work is started to create a framework for a new type of public service – owned and maintained by the public.
Enterprises grow to appreciate and adopt the value of distributed computing and storage systems like the ones available from blockchain-style technology.
Blockchain will be seen to play a pivotal role in safely, securely and privately sharing information about vaccinations at a global level.
Blockchain will finally throw off the shackles of its association with cryptocurrencies, leaving projects like DeFi to languish by the side of the digital highway. At the same time, blockchain will deliver projects around creating real business value is created.
People in IT departments and boardrooms will actually talk less about blockchain and more about working together with other companies in a trusted way.
We overestimate the impact of technology in the short-term and underestimate the effect in the long run
Now back to the story!
Tiny Retail Investor Tim has just eaten his Christmas pudding, and he found the lucky sixpence. No – he didn’t buy any bitcoin that day. Tim knows that gambling is risky, and buying bitcoin is even more perilous than a weekend trip to Vegas.
And as for Ebeneezer Regulator, he awoke the next morning with a spring in his step and set out to ensure that there was appropriate crypto regulations to protect Tiny Retail Investor Tim from the crypto conmen shilling their coins to frothing Twitterati and Telegram fans.
You’ll have to read the whole story (not yet written) to find out if they all lived happily ever after!
And on an end of the year note, I want to say thank you to some extraordinary people who have been part of the Blockchain Rookies story since we first started it as a WhatsApp group in September 2017:
My Co-Founder: Caroline Day
Partner in Crime and New Business: Jon Walsh
Big Kahuna at Large: James Bowater here at CryptoAM
And all the rest of you who have come along on the journey in reading, listening and watching Blockchain Rookies content throughout the year.
Thank you!
And remember: Blockchain is still very new. There are no gurus. There are no experts. We’re all still learning. We are all Blockchain Rookies!
Troy Norcross, Co-Founder Blockchain Rookies


cityam--2020-12-21--FTSE 100 and European markets slump amid UK Covid blockade

The FTSE 100 tumbled along with its European peers on Monday while the pound slumped after countries banned travel from the UK over fears of a new coronavirus strain .
Adding to the gloom on markets was the impasse in post-Brexit trade talks between the UK and the EU .
Rising coronavirus cases in Britain , on the continent , and in the US also dented sentiment .
Read more : France bans travel from the UK – including truck and lorry drivers The storm saw the FTSE 100 shed 2.3 per cent in morning trading , dropping to 6,380 @ @ @ @ @ @ @ 250 fell 2.7 per cent .
London ’ s FTSE 100 was in fact supported somewhat by a tumbling pound , which flatters the overseas earnings of big UK companies .
Sterling slid 1.9 per cent to $ 1.326 in the morning session .
Prime Minister Boris Johnson on Saturday put London under strict new “ Tier 4 ” restrictions and U-turned on the relaxation of rules over Christmas .
Read more : UK registers record rise in coronavirus cases as Tier 4 comes into force The PM cited a new strain of @ @ @ @ @ @ @ 70 per cent more infectious – as a key reason for his decision .
That new strain has spooked the UK ’ s neighbours .
France has curtailed travel and freight transport from the UK , causing chaos at British ports .
Germany , Italy , and Canada are among the other countries to limit transport links .
European markets also suffered as investors fretted over the new strain and rising Covid cases .
Germany ’ s Dax tumbled 2.8 per cent while France ’ s CAC 40 was down 2.7 per cent @ @ @ @ @ @ @ per cent .
“ Against this backdrop , investors are far less likely to commit fresh capital to the market , especially in the last few trading days of the year , ” said Richard Hunter , head of markets at Interactive Investor .
Susannah Streeter , senior markets analyst at Hargreaves Lansdown , said : “ The shock of the tough new restrictions imposed on the UK is reverberating around the stock market with both the FTSE 100 and the domestically focused FTSE 250 falling sharply on the open .
“ The @ @ @ @ @ @ @ trading with Europe as Kent is turned into a car park and one by one , more countries announce travel bans.
” On the FTSE , firms connected to the transport industry suffered .
British Airways-owner IAG was down 8.7 per cent , while jet engine-maker Rolls Royce shed 7.2 per cent .
The slump in European markets came despite a long-hoped-for breakthrough in the US , where lawmakers agreed to a $ 900bn ( £680bn ) stimulus deal .
It will provide stimulus checks of $ 600 to many Americans and help @ @ @ @ @ @ @ .
However , US stocks were set to open deep in the red as panic emanates from the UK to markets around the world .
The dollar rose 0.7 per cent against a basket of other currencies .
It helped push down currencies like sterling .
Meanwhile , oil prices fell in anticipation of lower future demand .
The global benchmark Brent crude oil price dropped 4.2 per cent to $ 50.10 per barrel .
The US benchmark WTI fell 3.6 per cent to $ 47.30 a barrel .

Global markets slump amid fears of mutant virus and UK border chaos
The FTSE 100 fell sharply amid Brexit and coronavirus worries, with US stocks joining the sea of red when Wall Street opened
The FTSE 100 and US and European stocks tumbled on Monday while the pound slumped after countries banned travel from the UK over fears of a new coronavirus strain.
Adding to the gloom on markets was the impasse in post-Brexit trade talks between the UK and the EU. Rising coronavirus cases in Britain, on the continent, and in the US also dented sentiment.
Read more: New: France bans ALL travel from the UK – including truck and lorry drivers
The storm pushed the FTSE 100 down by 2.5 per cent in afternoon trading, dropping to 6,368 points. The more domestically focused FTSE 250 fell 2.8 per cent.
London’s FTSE 100 was in fact supported somewhat by a tumbling pound, however, which flatters the overseas earnings of big UK companies. Sterling slid 1.5 per cent to $1.331 in the afternoon session.
Prime Minister Boris Johnson on Saturday put London in strict new “Tier 4” restrictions and U-turned on the relaxation of rules over Christmas.
Read more: UK registers record rise in coronavirus cases as Tier 4 comes into force
The PM cited a new strain of coronavirus – which could be up to 70 per cent more infectious – as a key reason for his decision.
That new strain has spooked the UK’s neighbours. France has curtailed travel and freight transport from the UK, causing long queues in Kent. Germany, Italy, and Canada are among the other countries to limit transport links with the UK.
FTSE 100 travel stocks suffer
European markets also suffered as investors fretted over the new strain and rising Covid cases.
Germany’s Dax tumbled 2.9 per cent while France’s CAC 40 was also down 2.9 per cent. The Europe-wide Stoxx 600 fell 2.7 per cent.
“A new faster strain of Covid-19 is triggering risk aversion across the board,” said Edward Moya, senior market analyst at currency firm Oanda.
“Thin market conditions are making today’s selloff look more like panic selling.”
Susannah Streeter, senior markets analyst at Hargreaves Lansdown, said: “The nightmare before Christmas is unfolding for firms trading with Europe as Kent is turned into a car park and one by one, more countries announce travel bans.”
Read more: Brexit talks continue but miss European Parliament deadline
On the FTSE, firms connected to the transport industry suffered in particular. British Airways-owner IAG was down 8.2 per cent, while jet engine-maker Rolls Royce also shed 6.7 per cent.
US stimulus deal overshadowed
The slump in markets came despite a long-hoped-for breakthrough in the US, where lawmakers agreed to a $900bn (£680bn) stimulus deal.
Wall Street’s S&P 500 opened one per cent lower. The tech-heavy Nasdaq was down 0.9 per cent and the Dow Jones was off by 0.6 per cent.
Moya said: “Risk appetite did not stand a chance as the virus rages on in Europe and across California.
“The short-term outlook is very bleak, but optimism is still high that by the fall things will closely be back to normal.
“Some investors are eyeing every dip. But that doesn’t mean Wall Street shouldn’t expect three to five per cent weakness before trading is done for the year.”
The dollar rose 0.4 per cent against a basket of other currencies as investors looked for a safe haven and after the signing of the stimulus bill. It helped push down currencies like sterling.
John Hardy, head of FX strategy at Saxo Bank, said: “The US dollar has suddenly gone vertical.” He said there was “no compelling narrative to latch onto other than thin trading and perhaps a sudden hangover from global speculative energy that had simply become very stretched”.
Meanwhile, oil prices fell in anticipation of lower future demand. The global benchmark Brent crude oil price dropped four per cent to $50.20 per barrel. The US benchmark WTI fell 3.7 per cent to $47.20 a barrel.


cityam--2020-12-21--Charles Schwab UK fined £9m for failing to protect client assets

The UK ’ s financial watchdog has fined investment firm Charles Schwab £9m for failing to adequately protect client assets and making a false statement to the regulator .
Schwab ’ s breaches occurred between August 2017 and April 2019 when it moved client money from the UK arm to a US business .
Read more : FCA fines fall by half in 2020 as Covid takes hit on enforcement The Financial Conduct Authority ( FCA ) today said Charles Schwab UK “ failed to arrange adequate protection for its clients ’ assets under UK rules ” .
It fined @ @ @ @ @ @ @ the major US investment firm – £8.96m .
“ Charles Schwab UK failed to get the correct permissions from the FCA ; then failed to be open with us and , finally , failed to put in place the necessary safeguards to ensure , if required , there could be an orderly return of client assets , ” said Mark Steward , executive director of enforcement at the watchdog .
The FCA said Schwab did not have the right records to identify its customers ’ client assets , among other issues .
The @ @ @ @ @ @ @ ’ s general pool , the FCA said .
It also did not always have FCA permission to safeguard and administer assets .
Schwab also made a false statement to the FCA by saying adequate controls were in place to protect client assets .
The FCA ’ s decision noted that the firm took remedial action at various points after discovering the breaches .
There was no actual loss of client assets and Charles Schwab UK stopped holding client assets from 1 January 2020 .
Read more : Barclays fined £26m for mistreatment @ @ @ @ @ @ @ UK spokesperson said the firm “ fully cooperated with the FCA ’ s investigation , has addressed the issues identified , and agreed to a penalty of £8.96m ” .
“ Charles Schwab UK maintains the highest standards of service , governance , and security , and although no clients or assets were negatively impacted , we regret the errors and are pleased this matter has been resolved .
”

Charles Schwab UK fined £9m for failing to protect client assets
Charles Schwab was also fined by the FCA for making a false statement to the regulator
The UK’s financial watchdog has fined investment firm Charles Schwab £9m for failing to adequately protect client assets and making a false statement to the regulator.
Schwab’s breaches occurred between August 2017 and April 2019 when it moved client money from the UK arm to a US business.
The Financial Conduct Authority (FCA) today said Charles Schwab UK “failed to arrange adequate protection for its clients’ assets under UK rules”. It fined the company – the British section of the major US investment firm – £8.96m.
“Charles Schwab UK failed to get the correct permissions from the FCA; then failed to be open with us and, finally, failed to put in place the necessary safeguards to ensure, if required, there could be an orderly return of client assets,” said Mark Steward, executive director of enforcement at the watchdog.
The FCA said Schwab did not have the right records to identify its customers’ client assets, among other issues. The assets were kept in the US company’s general pool, the FCA said.
It also did not always have FCA permission to safeguard and administer assets. Schwab also made a false statement to the FCA by saying adequate controls were in place to protect client assets.
The FCA’s decision noted that the firm took remedial action at various points after discovering the breaches. There was no actual loss of client assets and Charles Schwab UK stopped holding client assets from 1 January 2020.
A Charles Schwab UK spokesperson said the firm “fully cooperated with the FCA’s investigation, has addressed the issues identified, and agreed to a penalty of £8.96m”.
“Charles Schwab UK maintains the highest standards of service, governance, and security, and although no clients or assets were negatively impacted, we regret the errors and are pleased this matter has been resolved.”


cityam--2020-12-21--Exclusive: Siemens UK boss explains why the pandemic has been a 'helpful' distraction from Brexit

Despite the many difficulties , the pandemic also brought some good , such as a distraction from Brexit , Siemens UK CEO Carl Ennis tells City A.M. in an exclusive interview .
The fact that the virus pushed Brexit down the hierarchy of news was helpful , in Ennis ’ view .
“ Anybody who ’ s been involved in negotiating a big deal knows you don ’ t want to do it on a public stage .
The challenge is how to unlock the benefits people wanted without causing damage in the short term for individuals , society and @ @ @ @ @ @ @ The negotiating teams have been trying hard to do just that .
Anything that goes above WTO arrangements will be positive.
” Brexit has not stopped Siemens investing in the UK .
In Hull , the company partnered with Associated British Ports in a £310m investment to build a wind turbine blade manufacturing facility , thereby creating 1,000 jobs .
Moreover , the company recently invested £200m in Goole on a train facility to build underground trains , creating around 700 new jobs .
Find all of our Brexit stories in one place @ @ @ @ @ @ @ , from a business perspective , erecting barriers to trade is never a good idea .
“ Brexit is likely to result in friction between us and our biggest trading partner , mainland Europe .
Luckily , as a nation we ’ re pretty good at triumphing over adversity and our business people are entrepreneurial.
” However , the UK ’ s breakaway will make life difficult for Siemens ’ suppliers and partners with vertically integrated supply chains in continental Europe and those who are trying to sell their products there .
“ @ @ @ @ @ @ @ where they will be in a year ’ s time .
But I will put my crystal ball aside for now , ” he laughs .
Read more : Editorial : No-deal Brexit and London lockdown would compound economic catastrophe Looking at a long-term impact of the Coronavirus , the shock that the pandemic has delivered to the UK economy may speed up digitalisation across many industries .
“ Unfortunately , it will be painful for many sectors and businesses , but in the mid to long term it will be positive .
@ @ @ @ @ @ @ industrial revolutions there are winners and losers , but overall in the end everyone ’ s a winner , ” Ennis says .
He singles out adult learning , calling it “ crucial ” while it has gone unaddressed in the UK for too long .
Read more : Siemens offers climate activist role on board as firm makes Adani mine decision One of the benefits of an increasingly accepted working-from-home model , a direct result of the pandemic , is accelerated decarbonisation .
Despite the economy nearly being crippled during the first @ @ @ @ @ @ @ 20 % and nitric oxide by 40 % .
“ Strategies to increase decarbonisation will be central to discussion at next year ’ s UN Climate Change Conference , COP26 , in Glasgow , in which I hope President-elect Biden ’ s administration will play a crucial role .
Having the US agree that climate change is a real risk , with its scale and ability to influence global policies , will help the world address the issue , ” Ennis says .
However , his worry for the UK is that in @ @ @ @ @ @ @ the economy , policy makers may opt for what is easy or cheap rather than what is right .
“ Instead of trying to generate short-term jobs we must ‘ grow back green ’ and invest in long-term jobs that help decarbonise , ” Ennis argues .
The government is focused on identifying a couple of big things it can do to achieve the decarbonisation targets , he continues , pointing out the importance of these large-scale projects , such as investing in wind power and hydrogen .
Wind power is generating just @ @ @ @ @ @ @ s electricity , and he believes hydrogen has huge potential for fuelling vehicles and trains and for replacing natural gas in home heating systems and industrial turbines .
However , local initiatives are essential if the UK wants to meet its net zero carbon targets .
“ The old adage of environmentalists is ‘ reduce , reuse , recycle ’ .
Reducing consumption requires all 66m people in the UK to participate , ” Ennis concludes .
Read more : Can the government hit the targets in its 10 point climate plan ?

Exclusive: Siemens UK boss explains why the pandemic has been a ‘helpful’ distraction from Brexit
Carl Ennis, who leads Siemens’ operations in the UK
Despite the many difficulties, the pandemic also brought some good, such as a distraction from Brexit, Siemens UK CEO Carl Ennis tells City A.M. in an exclusive interview.
Read more: Siemens UK chief executive Juergen Maier announces early retirement
Brexit
The fact that the virus pushed Brexit down the hierarchy of news was helpful, in Ennis’ view.
“Anybody who’s been involved in negotiating a big deal knows you don’t want to do it on a public stage. The challenge is how to unlock the benefits people wanted without causing damage in the short term for individuals, society and business,” he notes.
“The negotiating teams have been trying hard to do just that. Anything that goes above WTO arrangements will be positive.”
Brexit has not stopped Siemens investing in the UK. In Hull, the company partnered with Associated British Ports in a £310m investment to build a wind turbine blade manufacturing facility, thereby creating 1,000 jobs.
Moreover, the company recently invested £200m in Goole on a train facility to build underground trains, creating around 700 new jobs.
Find all of our Brexit stories in one place – simply click here
Ennis stresses that, from a business perspective, erecting barriers to trade is never a good idea.
“Brexit is likely to result in friction between us and our biggest trading partner, mainland Europe. Luckily, as a nation we’re pretty good at triumphing over adversity and our business people are entrepreneurial.”
“While we would rather the added level of complexity of Brexit wasn’t there, it’s not stopping us from doing business.” Carl Ennis
However, the UK’s breakaway will make life difficult for Siemens’ suppliers and partners with vertically integrated supply chains in continental Europe and those who are trying to sell their products there.
“A brave person might make predictions about where they will be in a year’s time. But I will put my crystal ball aside for now,” he laughs.
Read more: Editorial: No-deal Brexit and London lockdown would compound economic catastrophe
Digitalisation
Looking at a long-term impact of the Coronavirus, the shock that the pandemic has delivered to the UK economy may speed up digitalisation across many industries.
“Unfortunately, it will be painful for many sectors and businesses, but in the mid to long term it will be positive. History shows that when countries go through industrial revolutions there are winners and losers, but overall in the end everyone’s a winner,” Ennis says.
He singles out adult learning, calling it “crucial” while it has gone unaddressed in the UK for too long.
“Covid-19 and Brexit have reinforced the need for us to develop and change our skills. This is not just about technical expertise; soft skills and vocational work will become increasingly necessary.”
Read more: Siemens offers climate activist role on board as firm makes Adani mine decision
Decarbonisation
One of the benefits of an increasingly accepted working-from-home model, a direct result of the pandemic, is accelerated decarbonisation. Despite the economy nearly being crippled during the first lockdown, CO2 emissions were reduced by 20% and nitric oxide by 40%.
“Strategies to increase decarbonisation will be central to discussion at next year’s UN Climate Change Conference, COP26, in Glasgow, in which I hope President-elect Biden’s administration will play a crucial role. Having the US agree that climate change is a real risk, with its scale and ability to influence global policies, will help the world address the issue,” Ennis says.
However, his worry for the UK is that in the government’s enthusiasm to kick-start the economy, policy makers may opt for what is easy or cheap rather than what is right.
“Instead of trying to generate short-term jobs we must ‘grow back green’ and invest in long-term jobs that help decarbonise,” Ennis argues.
The government is focused on identifying a couple of big things it can do to achieve the decarbonisation targets, he continues, pointing out the importance of these large-scale projects, such as investing in wind power and hydrogen.
Wind power is generating just over 20% of the UK’s electricity, and he believes hydrogen has huge potential for fuelling vehicles and trains and for replacing natural gas in home heating systems and industrial turbines.
However, local initiatives are essential if the UK wants to meet its net zero carbon targets. “The old adage of environmentalists is ‘reduce, reuse, recycle’. Reducing consumption requires all 66m people in the UK to participate,” Ennis concludes.
Read more: Can the government hit the targets in its 10 point climate plan?