cityam--2020-06-01--City club the Ned teams up with Centrepoint to feed homeless young people

One of the City ’ s best-known members ’ clubs has teamed up with youth homelessness charity Centrepoint to provide meals homeless young people during the coronavirus crisis .
Along with the Bike Shed Motorcycle Club , the 42 members of staff at the Ned have been making over a hundred meals a day for those living in homeless shelters .
Read more : Coronavirus : 2m ‘ shielding ’ in UK allowed outside from Monday The meals are being prepared on the Ned ’ s premises in the City , and delivered by riders from the Bike Shed ’ @ @ @ @ @ @ @ chefs at the Ned have been making 150 meals for homeless charity the Passage , which supports those living on the streets of central London .
Many of the ingredients for the scheme have been donated by Fare Share , the UK ’ s largest food waste charity .
Isabel Rice , a senior dietician at Centrepoint , said hostels had been “ really grateful ” to receive the meals .
Before the Open : Get the jump on the markets with our early morning newsletter “ There has been a lot of @ @ @ @ @ @ @ about not getting enough food .
“ I ’ ve seen an increase in the number of young people in need of emergency food aid , as well as a general increase in people struggling .
“ These meals have been a huge help , because it means the hostel can offer a healthy , home cooked meal to residents every day ” .
The Ned ’ s managing director Gareth Banner said : “ With The Ned and Ned ’ s Club being closed for the time being , we ’ ve @ @ @ @ @ @ @ community and those most vulnerable in our local areas ” .
Read more : Raytheon UK appoints new chief executive after United merger Yesterday housing secretary Robert Jenrick announced that as a result of the pandemic , 90 per cent of the nation ’ s homeless people had been taken off the streets and into accommodation .
He also announced that the government would spend £160m on building accommodation for these people , with 6,000 homes to be built in total .

City club the Ned teams up with Centrepoint to feed homeless young people
One of the City’s best-known members’ clubs has teamed up with youth homelessness charity Centrepoint to provide meals homeless young people during the coronavirus crisis.
Along with the Bike Shed Motorcycle Club, the 42 members of staff at the Ned have been making over a hundred meals a day for those living in homeless shelters.
The meals are being prepared on the Ned’s premises in the City, and delivered by riders from the Bike Shed’s 1000-strong membership.
In addition, chefs at the Ned have been making 150 meals for homeless charity the Passage, which supports those living on the streets of central London.
Many of the ingredients for the scheme have been donated by Fare Share, the UK’s largest food waste charity.
Isabel Rice, a senior dietician at Centrepoint, said hostels had been “really grateful” to receive the meals.
Before the Open: Get the jump on the markets with our early morning newsletter
“There has been a lot of concern from young people during the pandemic about not getting enough food.
“I’ve seen an increase in the number of young people in need of emergency food aid, as well as a general increase in people struggling.
“These meals have been a huge help, because it means the hostel can offer a healthy, home cooked meal to residents every day”.
The Ned’s managing director Gareth Banner said: “With The Ned and Ned’s Club being closed for the time being, we’ve been working on ways to support our community and those most vulnerable in our local areas”.
Yesterday housing secretary Robert Jenrick announced that as a result of the pandemic, 90 per cent of the nation’s homeless people had been taken off the streets and into accommodation.
He also announced that the government would spend £160m on building accommodation for these people, with 6,000 homes to be built in total.


cityam--2020-06-01--Raytheon UK appoints new chief executive after United merger

Defence giant Raytheon has today announced that Jeff Lewis will take over as chief executive of its UK subsidiary .
He will take over from former chief Richard Daniel , who has been in the top job for six years .
Read more : Babcock to make 10,000 ventilators as firm takes small hit from coronavirus Raytheon UK , which employs around 1,700 people in this country , is a major contractor of the Ministry of Defence , and last year contributed more than £750m to the UK economy .
Recently , the firm has played a key role in @ @ @ @ @ @ @ to combat the coronavirus crisis .
The company converted its existing manufacturing centre at Glenrothes in Scotland to handle the task , as well as setting up a new facility in Fife .
Before the Open : Get the jump on the markets with our early morning newsletter Lewis , who joined Raytheon as chief operation officer last year after spells at Weir Group and Balfour Beatty , said : “ Despite the challenging environment , this is an exciting time to be taking the reins atRaytheon UK .
“ We will continue @ @ @ @ @ @ @ Government , investing in our sites across the country and partnering to develop the capabilities we will need for the future .
“ In the immediacy , my priority is to continue ensuring the health , safety , and wellbeing of all our employees while delivering for our customers.
” Read more : First of UK ventilators wins approval as private sector ramps up production Raytheon is one of the US ’ largest defence companies , employing nearly 200,000 people around the world .
In April , the firm completed a $ 121m @ @ @ @ @ @ @ company , Raytheon Technologies .

Raytheon UK appoints new chief executive after United merger
Defence giant Raytheon has today announced that Jeff Lewis will take over as chief executive of its UK subsidiary.
He will take over from former chief Richard Daniel, who has been in the top job for six years.
Raytheon UK, which employs around 1,700 people in this country, is a major contractor of the Ministry of Defence, and last year contributed more than £750m to the UK economy.
Recently, the firm has played a key role in producing ventilators for the NHS in order to combat the coronavirus crisis.
The company converted its existing manufacturing centre at Glenrothes in Scotland to handle the task, as well as setting up a new facility in Fife.
Before the Open: Get the jump on the markets with our early morning newsletter
Lewis, who joined Raytheon as chief operation officer last year after spells at Weir Group and Balfour Beatty, said:
“Despite the challenging environment, this is an exciting time to be taking the reins atRaytheon UK.
“We will continue as a vital partner to the UK Government, investing in our sites across the country and partnering to develop the capabilities we will need for the future.
“In the immediacy, my priority is to continue ensuring the health, safety, and wellbeing of all our employees while delivering for our customers.”
Raytheon is one of the US’ largest defence companies, employing nearly 200,000 people around the world.
In April, the firm completed a $121bn merger with United Technologies to form new company, Raytheon Technologies.


cityam--2020-06-01--Sadiq Khan calls for extension to Brexit transition period

Sadiq Khan has called for an extension to the 31 December deadline for Brexit trade talks between the UK and EU as the two sides meet for the latest negotiating round today .
The mayor of London wrote today to chancellor of the Duchy of Lancaster Michael Gove , the minister responsible for the talks , to say an “ extension to the transition period is now urgently needed to give businesses and public services some certainty ” during the coronavirus crisis .
Read more : Brexit : EU must change ‘ unreasonable ’ political mandate for UK trade agreement @ @ @ @ @ @ @ meet this week for the fourth round of negotiations , before the two sides take a break to assess progress .
High level meetings between Prime Minister Boris Johnson and European Commission President Ursula von der Leyen are also expected next month .
Chief UK negotiator David Frost has said if there is no progress on several key areas – such as fishing and business competition policy – that he will walk away from negotiations and Britain will prepare to leave the transition period without a trade deal .
EU chief negotiator Michel @ @ @ @ @ @ @ are willing to extend the deadline for a deal beyond 31 December , however Downing Street has continually stated that any change was unthinkable .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Khan said to Gove that the new tariffs and trade barriers which would result from a no-deal exit from the transition period would be “ needless and hazardous ” .
“ The last thing the country needs as it tries to find a way back from the @ @ @ @ @ @ @ and uncertainty , ” he wrote .
“ I urge the government to put political ideology aside and pursue the pragmatic route of seeking an extension to the negotiations so that we and our European partners can focus on recovery from Covid-19.
” Responding to Khan ’ s letter , a government spokesperson said : “ An extension to the transition period would bind us into future EU legislation , without us having any say in designing it , but still having to foot the bill as we would still have to make @ @ @ @ @ @ @ The EU themselves have said that their next budget will be unusual , and we would have no say in what it would go towards .
“ We need to be able to design our own rules , in our best interests , to manage our response to coronavirus – without the constraints of following EU rules.
” There has been a chorus of calls for the UK to seek an extension to the transition period in light of the Covid-19 crisis .
This has included International Monetary Fund boss Kristalina Georgieva , @ @ @ @ @ @ @ created unnecessary uncertainty for the global economy .
Speaking to Westminster ’ s Brexit committee last week , Frost reiterated that the government ’ s position was that there would be no change to the deadline .
“ It ’ s the firm policy of the government that we will not extend the transition period and , if asked , we would not agree to it , ” he said .
Read more : City calls for financial services not to be overlooked in Brexit trade deal “ I take that as a @ @ @ @ @ @ @ position has been taken .
“ I think we have always put a lot of emphasis on economic and political freedom at the end of this year and on avoiding ongoing significant payments into the EU budgets .
”

Sadiq Khan calls for extension to Brexit transition period
Sadiq Khan said to Michael Gove that new tariffs and trade barriers that would result from a no-deal exit from the transition period would be “needless and hazardous”.
Sadiq Khan has called for an extension to the 31 December deadline for Brexit trade talks between the UK and EU as the two sides meet for the latest negotiating round today.
The mayor of London wrote today to chancellor of the Duchy of Lancaster Michael Gove, the minister responsible for the talks, to say an “extension to the transition period is now urgently needed to give businesses and public services some certainty” during the coronavirus crisis.
Negotiators from the UK and EU will meet this week for the fourth round of negotiations, before the two sides take a break to assess progress.
High level meetings between Prime Minister Boris Johnson and European Commission President Ursula von der Leyen are also expected next month.
Chief UK negotiator David Frost has said if there is no progress on several key areas – such as fishing and business competition policy – that he will walk away from negotiations and Britain will prepare to leave the transition period without a trade deal.
EU chief negotiator Michel Barnier and his team have said they are willing to extend the deadline for a deal beyond 31 December, however Downing Street has continually stated that any change was unthinkable.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Khan said to Gove that the new tariffs and trade barriers which would result from a no-deal exit from the transition period would be “needless and hazardous”.
“The last thing the country needs as it tries to find a way back from the devastation wreaked by coronavirus is more chaos and uncertainty,” he wrote.
“I urge the government to put political ideology aside and pursue the pragmatic route of seeking an extension to the negotiations so that we and our European partners can focus on recovery from Covid-19.”
Responding to Khan’s letter, a government spokesperson said: “An extension to the transition period would bind us into future EU legislation, without us having any say in designing it, but still having to foot the bill as we would still have to make payments into the EU budget.
“The EU themselves have said that their next budget will be unusual, and we would have no say in what it would go towards.
“We need to be able to design our own rules, in our best interests, to manage our response to coronavirus – without the constraints of following EU rules.”
There has been a chorus of calls for the UK to seek an extension to the transition period in light of the Covid-19 crisis.
This has included International Monetary Fund boss Kristalina Georgieva, who said the short timeframe for negotiations created unnecessary uncertainty for the global economy.
Speaking to Westminster’s Brexit committee last week, Frost reiterated that the government’s position was that there would be no change to the deadline.
“It’s the firm policy of the government that we will not extend the transition period and, if asked, we would not agree to it,” he said.
“I take that as a given. I can see why that position has been taken.
“I think we have always put a lot of emphasis on economic and political freedom at the end of this year and on avoiding ongoing significant payments into the EU budgets.”


cityam--2020-06-01--FCA launches investigation into troubled subprime lender Amigo Loans

City watchdog the Financial Conduct Authority ( FCA ) has opened an investigation into subprime lender Amigo Loans , the company said today .
In a stock market update , Amigo said the FCA started an investigation on Friday into whether Amigo ’ s creditworthiness assessment process and its governance oversight of this was compliant with regulations .
Read more : Troubled sub-prime lender Amigo Loans appoints former chief executive to advise on sale Amigo said the FCA investigation will cover the period from 1 November to date .
Amigo said last week it was in discussions with a potential @ @ @ @ @ @ @ today talks are ongoing but said there “ can be no certainty that any offer will be forthcoming nor as to the terms on which any offer will be made ” .
Separately , Amigo said today it had started legal proceedings against the Richmond Group , one of its shareholders .
Amigo said it had filed an application today with the High Court for an injunction to prevent Richmond from voting in favour of the resolutions to appoint Sam Wells and Nick Makin as directors of Amigo and to remove each of @ @ @ @ @ @ @ the upcoming general meeting to be held on 17 June .
The company said all directors have made clear that they are willing to step down provided it is by way of an orderly succession , but said it “ has been left with no option but to take legal action against Richmond following its continued refusal to abide by the terms of the relationship agreement entered into between Richmond and Amigo on 29 June 2018 ” .
Read more : Amigo share price slides after boardroom spat breaks out Stephan Wilcke , @ @ @ @ @ @ @ The board has offered to leave , and will do so , but it must be through an orderly process .
We can not risk the Amigo group ’ s ability either to conduct its FCA regulated activities or to continue as a London-listed company operating in accordance with the UK Corporate Governance Code .
“ Amigo is a publicly listed , regulated company , not a wholly owned private subsidiary .
We are duty bound to protect the interests of all shareholders and to prevent a majority shareholder acting in breach of @ @ @ @ @ @ @ share price was flat at 18p this morning .

FCA launches investigation into troubled subprime lender Amigo Loans
City watchdog the Financial Conduct Authority (FCA) has opened an investigation into subprime lender Amigo Loans, the company said today.
In a stock market update, Amigo said the FCA started an investigation on Friday into whether Amigo’s creditworthiness assessment process and its governance oversight of this was compliant with regulations.
Amigo said the FCA investigation will cover the period from 1 November to date.
Amigo said last week it was in discussions with a potential buyer of the business. It said today talks are ongoing but said there “can be no certainty that any offer will be forthcoming nor as to the terms on which any offer will be made”.
Separately, Amigo said today it had started legal proceedings against the Richmond Group, one of its shareholders.
Amigo said it had filed an application today with the High Court for an injunction to prevent Richmond from voting in favour of the resolutions to appoint Sam Wells and Nick Makin as directors of Amigo and to remove each of the current members of the board in the upcoming general meeting to be held on 17 June.
The company said all directors have made clear that they are willing to step down provided it is by way of an orderly succession, but said it “has been left with no option but to take legal action against Richmond following its continued refusal to abide by the terms of the relationship agreement entered into between Richmond and Amigo on 29 June 2018”.
Stephan Wilcke, chair of Amigo, said: “The board has offered to leave, and will do so, but it must be through an orderly process. We cannot risk the Amigo group’s ability either to conduct its FCA regulated activities or to continue as a London-listed company operating in accordance with the UK Corporate Governance Code.
“Amigo is a publicly listed, regulated company, not a wholly owned private subsidiary. We are duty bound to protect the interests of all shareholders and to prevent a majority shareholder acting in breach of the relationship agreement.”
Amigo’s share price was flat at 18p this morning.


cityam--2020-06-01--Tilney and Smith & Williamson strike revised merger deal with Warburg Pincus investing in the group

Wealth managers Tilney and Smith & Williamson have agreed a revised merger deal with private equity fund Warburg Pincus investing in the combined group .
The deal had looked in doubt after regulatory problems and the coronavirus crisis meant an initial deadline to agree a merger was missed .
Read more : Tilney and Smith & Williamson merger on brink after coronavirus crash Today , the pair said as part of the revised transaction funds advised by Warburg Pincus would co-invest in the business alongside Tilney-owner Permira .
The two said the revised transaction would result in a significant reduction @ @ @ @ @ @ @ , lower ongoing financing costs and an improved regulatory capital position .
They said the new investment by Warburg Pincus “ represents a significant vote of confidence in the strength of a combination of Tilney and Smith & Williamson and adds further credibility to the firm ’ s longer term strategy ” .
As a result of the deal , AGF , Smith & Williamson ’ s largest shareholder , will fully exit its investment in the group .
Subject to regulatory and antitrust consent and the approval of Smith & Williamson ’ @ @ @ @ @ @ @ completion will take place in the second half of 2020 , the pair said .
The combined business will be responsible for approximately £44bn billion in assets under management and , on a pro forma basis , will generate circa £530m .
Read more : Tilney and Smith & Williamson merger on brink after coronavirus crash David Cobb and Kevin Stopps , co-chief executives of Smith & Williamson , said : “ The rationale for merging Smith & Williamson with Tilney has been persuasive from the outset , given the complementary strengths of @ @ @ @ @ @ @ scale the combination will bring .
The revised structure retains both these strategic benefits , as well as value for our shareholders , and delivers a more robust financial structure and a strong additional partner for the future in Warburg Pincus.
” Chris Woodhouse , Chief Executive of Tilney , said : “ This transformational deal brings together two highly complementary and successful businesses , with shared values of focusing on our clients and high standards of professionalism .
Together , Tilney Smith & Williamson will be uniquely well placed to support clients @ @ @ @ @ @ @ business interests.
” In April AGF warned that there were doubts that a revised deal could be reached .
Read more : Tilney and Smith & Williamson strike £1.8bn wealth management and professional services deal “ While all parties remain committed to the merger , given the covid-19 situation and the fact that the revised structure has not yet been agreed , there can be no certainty that the transaction will proceed , ” it said .
Wealth manager Tilney – which is backed by private equity firm Permira – announced in September @ @ @ @ @ @ @ and accountancy firm Smith & Williamson in a £625m deal .
AGF said the two businesses had extended the original expiry date of the merger ( 16 April ) to agree a new transaction structure intended to meet final regulatory approval .
The Financial Conduct Authority was reportedly concerned that the combined business would carry too much debt under the original transaction structure .

Tilney and Smith & Williamson strike revised merger deal with Warburg Pincus investing in the group
Wealth managers Tilney and Smith & Williamson have agreed a revised merger deal with private equity fund Warburg Pincus investing in the combined group.
The deal had looked in doubt after regulatory problems and the coronavirus crisis meant an initial deadline to agree a merger was missed.
Today, the pair said as part of the revised transaction funds advised by Warburg Pincus would co-invest in the business alongside Tilney-owner Permira.
The two said the revised transaction would result in a significant reduction in external debt for the combined group, lower ongoing financing costs and an improved regulatory capital position.
They said the new investment by Warburg Pincus “represents a significant vote of confidence in the strength of a combination of Tilney and Smith & Williamson and adds further credibility to the firm’s longer term strategy”.
As a result of the deal, AGF, Smith & Williamson’s largest shareholder, will fully exit its investment in the group.
Subject to regulatory and antitrust consent and the approval of Smith & Williamson’s shareholders, it is expected that completion will take place in the second half of 2020, the pair said.
The combined business will be responsible for approximately £44bn billion in assets under management and, on a pro forma basis, will generate circa £530m.
David Cobb and Kevin Stopps, co-chief executives of Smith & Williamson, said: “The rationale for merging Smith & Williamson with Tilney has been persuasive from the outset, given the complementary strengths of the two businesses and the benefits of scale the combination will bring. The revised structure retains both these strategic benefits, as well as value for our shareholders, and delivers a more robust financial structure and a strong additional partner for the future in Warburg Pincus.”
Chris Woodhouse, Chief Executive of Tilney, said: “This transformational deal brings together two highly complementary and successful businesses, with shared values of focusing on our clients and high standards of professionalism. Together, Tilney Smith & Williamson will be uniquely well placed to support clients with both their personal financial affairs and business interests.”
In April AGF warned that there were doubts that a revised deal could be reached.
“While all parties remain committed to the merger, given the covid-19 situation and the fact that the revised structure has not yet been agreed, there can be no certainty that the transaction will proceed,” it said.
Wealth manager Tilney – which is backed by private equity firm Permira – announced in September it had agreed to acquire wealth manager and accountancy firm Smith & Williamson in a £625m deal.
AGF said the two businesses had extended the original expiry date of the merger (16 April) to agree a new transaction structure intended to meet final regulatory approval.
The Financial Conduct Authority was reportedly concerned that the combined business would carry too much debt under the original transaction structure.
Kirkland & Ellis is acting as legal adviser to Warburg Pincus. and Macfarlanes is advising Smith & Williamson.


cityam--2020-06-01--Strong economic recovery from coronavirus pandemic predicted

A strong economic recovery following the coronavirus pandemic is likely , with conditions ripe for a quick turnaround , a report published today said .
The unusual nature of this recession could be a silver lining for recovery , the report by Oxford Economics said .
GDP has fallen because of a planned , partial economic shutdown , so in theory activity and demand should rebound as restrictions lift , particularly given fiscal and monetary support from government and the Bank of England since the crisis began .
The report , which was commissioned by chartered accountancy body ICAEW , @ @ @ @ @ @ @ growth in the second half of the year if the lockdown continues to be relaxed over the summer .
Some households and private sector companies will have saved cash during the crisis , which could lead to a spike in demand when the lockdown eases , particularly with inflation likely to reach zero in the summer , the report said .
The impact of coronavirus should hopefully be a short , if very sharp , shock , the report said , with most of the damage quickly repaired .
With low interest rates @ @ @ @ @ @ @ at historic levels , reducing the deficit should not be an urgent government priority .
Read more : Eurozone manufacturing shows tentative signs of recovery in May Consequences for economic policy and public sentiment could endure , with post-pandemic government likely to be bigger than before the crisis .
Overall , GDP could shrink by 14 per cent in the second quarter , the report predicts .
This would be the largest decline since 1921 .
However , unemployment will likely rise by a comparatively modest three percentage points , from four per @ @ @ @ @ @ @ seven per cent in the fourth quarter , reflecting take-up of the furlough scheme designed to protect jobs .
In total , the deficit is likely to reach £290bn this year , equal to 14 per cent of GDP .
This would be the biggest deficit since World War Two , and would exceed the previous record of 10.2 per cent in 2009-10 .
Risks to the economy are high , Oxford Economics said .
Recovery could falter if lockdown is extended ; if a second wave of coronavirus triggers another lockdown ; @ @ @ @ @ @ @ expected ; or if government support is withdrawn too early .
A collapse of UK-EU trade talks could also hamper recovery .
Read more : Lord Mayor : A global London is vital to a speedy recovery The scope of coronavirus support schemes mean government borrowing stands at wartime proportions , and could increase total borrowing in 2020-21 by £173bn , or 7.5 per cent of GDP , the report said .
Two-fifths of this was money for the job retention scheme .
Martin Beck , Oxford Economics lead UK economist , said @ @ @ @ @ @ @ daily life imposed in response are inflicting a once-in-a-century downturn on the economy .
But the nature of the shock and the massive support put in place by policymakers mean a strong bounce back is achievable .
However , with no precedents to draw on , the outlook is clouded by multiple risks.
” Michael Izza , ICAEW chief executive , said : “ While this report sets out clearly the challenges facing the UK economy , particularly a fall in GDP not seen for a century , it does provide some optimism @ @ @ @ @ @ @ from this short , sharp shock .
“ As lockdown measures are eased , we would like to see a strategy designed to promote a sustainable economic recovery beyond the crisis .
The phasing out of government schemes will have to be carefully managed to avoid a wave of redundancies and company failures , and to restore business and consumer confidence .
“ Without time , space and help for businesses to recover , 2021 will be an exceptionally difficult year , especially if the problems left behind by covid-19 are compounded by @ @ @ @ @ @ @ period .
”

Strong economic recovery from coronavirus pandemic predicted
A strong economic recovery following the coronavirus pandemic is likely, with conditions ripe for a quick turnaround, a report published today said.
The unusual nature of this recession could be a silver lining for recovery, the report by Oxford Economics said.
GDP has fallen because of a planned, partial economic shutdown, so in theory activity and demand should rebound as restrictions lift, particularly given fiscal and monetary support from government and the Bank of England since the crisis began.
The report, which was commissioned by chartered accountancy body ICAEW, predicts that the economy should return to growth in the second half of the year if the lockdown continues to be relaxed over the summer.
Some households and private sector companies will have saved cash during the crisis, which could lead to a spike in demand when the lockdown eases, particularly with inflation likely to reach zero in the summer, the report said.
The impact of coronavirus should hopefully be a short, if very sharp, shock, the report said, with most of the damage quickly repaired. With low interest rates likely to persist, and gilt yields at historic levels, reducing the deficit should not be an urgent government priority.
Consequences for economic policy and public sentiment could endure, with post-pandemic government likely to be bigger than before the crisis.
Overall, GDP could shrink by 14 per cent in the second quarter, the report predicts. This would be the largest decline since 1921. However, unemployment will likely rise by a comparatively modest three percentage points, from four per cent at the beginning of 2020 to seven per cent in the fourth quarter, reflecting take-up of the furlough scheme designed to protect jobs.
In total, the deficit is likely to reach £290bn this year, equal to 14 per cent of GDP. This would be the biggest deficit since World War Two, and would exceed the previous record of 10.2 per cent in 2009-10.
Risks to the economy are high, Oxford Economics said. Recovery could falter if lockdown is extended; if a second wave of coronavirus triggers another lockdown; if long-term economic damage is worse than expected; or if government support is withdrawn too early. A collapse of UK-EU trade talks could also hamper recovery.
The scope of coronavirus support schemes mean government borrowing stands at wartime proportions, and could increase total borrowing in 2020-21 by £173bn, or 7.5 per cent of GDP, the report said. Two-fifths of this was money for the job retention scheme.
Martin Beck, Oxford Economics lead UK economist, said: “Coronavirus and the restrictions on daily life imposed in response are inflicting a once-in-a-century downturn on the economy. But the nature of the shock and the massive support put in place by policymakers mean a strong bounce back is achievable. However, with no precedents to draw on, the outlook is clouded by multiple risks.”
Michael Izza, ICAEW chief executive, said: “While this report sets out clearly the challenges facing the UK economy, particularly a fall in GDP not seen for a century, it does provide some optimism that we will be able to rebound from this short, sharp shock.
“As lockdown measures are eased, we would like to see a strategy designed to promote a sustainable economic recovery beyond the crisis. The phasing out of government schemes will have to be carefully managed to avoid a wave of redundancies and company failures, and to restore business and consumer confidence.
“Without time, space and help for businesses to recover, 2021 will be an exceptionally difficult year, especially if the problems left behind by covid-19 are compounded by a disorderly end to the EU transition period.”


cityam--2020-06-01--Independent autopsy finds George Floyd died of asphyxia

An independent autopsy has found that George Floyd , whose death in Minneapolis has sparked riots over the past week , died of asphyxia .
The private autopsy report commissioned by Floyd ’ s family found his death was a homicide from “ asphyxia due to neck and back compression that led to a lack of blood flow to the brain ” .
Read more : US riots : Fires burn near the White House as George Floyd protests turn violent It contradicts the preliminary autopsy led by the county medical examiner which said there had been “ no physical @ @ @ @ @ @ @ of traumatic asphyxia or strangulation ” .
The death of Floyd , an unarmed black man killed by a white Minneapolis police officer , has sparked nearly a week of riots .
The police officer responsible , Derek Chauvin , knelt on Floyd ’ s neck for nearly nine minutes and has since been sacked and charged with third degree murder .
Before the Open : Get the jump on the markets with our early morning newsletter Authorities have implemented curfews across dozens of American cities – the most since 1968 in the @ @ @ @ @ @ @ assassination .
In California there was widespread looting and vandalism , while violence broke out in Boston as protesters threw bottles at police officers and set a police car on fire .
Before the Open newsletter : Start your day with the City View podcast and key market data President Donald Trump , who is yet to address the nation , today called on state governors to crack down on the protests .
Speaking to governors on a private call , he reportedly told them that they “ have to dominate ” the @ @ @ @ @ @ @ , the President also called those protesting “ thugs ” and threatened to use the military .
Read more : Donald Trump tells state governors to crack down on protests In the call to governors he said : “ If you don ’ t dominate , you ’ re wasting your time – they ’ re going to run over you , you ’ re going to look like a bunch of jerks ” .
Trump has sought to blame the violence on the anti-fascist Antifa movement , which he yesterday said would @ @ @ @ @ @ @ the news as it happens by following City A.M. on Twitter .
This is a breaking news story .
More to follow .

Independent autopsy finds George Floyd died of asphyxia
The United States has erupted into days and nights of protests, violence, and looting, following the death of George Floyd after he was detained and held down by a knee to his neck, dying shortly after. (Photo by GEORGES GOBET/AFP via Getty Images)
An independent autopsy has found that George Floyd, whose death in Minneapolis has sparked riots over the past week, died of asphyxia.
The private autopsy report commissioned by Floyd’s family found his death was a homicide from “asphyxia due to neck and back compression that led to a lack of blood flow to the brain”.
It contradicts the preliminary autopsy led by the county medical examiner which said there had been “no physical findings” to “support a diagnosis of traumatic asphyxia or strangulation”.
The death of Floyd, an unarmed black man killed by a white Minneapolis police officer, has sparked nearly a week of riots. The police officer responsible, Derek Chauvin, knelt on Floyd’s neck for nearly nine minutes and has since been sacked and charged with third degree murder.
Before the Open: Get the jump on the markets with our early morning newsletter
Authorities have implemented curfews across dozens of American cities – the most since 1968 in the aftermath of Martin Luther King’s assassination.
In California there was widespread looting and vandalism, while violence broke out in Boston as protesters threw bottles at police officers and set a police car on fire.
Before the Open newsletter: Start your day with the City View podcast and key market data
President Donald Trump, who is yet to address the nation, today called on state governors to crack down on the protests.
Speaking to governors on a private call, he reportedly told them that they “have to dominate” the protestors. In a string of tweets, the President also called those protesting “thugs” and threatened to use the military.
In the call to governors he said: “If you don’t dominate, you’re wasting your time – they’re going to run over you, you’re going to look like a bunch of jerks”.
Trump has sought to blame the violence on the anti-fascist Antifa movement, which he yesterday said would be designated a terrorist organisation.
Get the news as it happens by following City A.M. on Twitter.
This is a breaking news story. More to follow.


cityam--2020-06-01--Donald Trump tells state governors to crack down on protests

US president Donald Trump on Monday told state governors to crack down on growing protests across the country against the treatment of African-Americans by police forces .
Speaking to governors on a private call , Trump reportedly told them that they “ have to dominate ” the protestors .
Read more : Facebook and Snapchat condemn racism in US as protests continue He said : “ If you don ’ t dominate , you ’ re wasting your time – they ’ re going to run over you , you ’ re going to look like a bunch of jerks @ @ @ @ @ @ @ US have been rocked by a sixth day of protests after unarmed George Floyd was killed by a white Minneapolis police officer last week .
The officer in question , Derek Chauvin , was filmed by an onlooker kneeling on 46-year-old Floyd ’ s neck for nearly nine minutes after the man was taken into police custody .
Chauvin has been fired and charged with third-degree murder and second-degree manslaughter .
Before the Open newsletter : Start your day with the City View podcast and key market data The US has not seen @ @ @ @ @ @ @ assassination of civil rights leader Martin Luther King in 1968 , with the National Guard deployed in 23 states .
The protests started as peaceful demonstrations but have subsequently descended into violence , with fires being lit near the White House and looting in several cities .
Earlier today a truck drove at crowds in Minneapolis before its driver was pulled from his cab .
Trump , who is yet to make a public statement on the protests , has sought to blame the violence on the anti-fascist Antifa movement .
Read more @ @ @ @ @ @ @ the White House as George Floyd protests turn violent In a string of tweets , the president labelled protestors “ thugs ” and threatened to use the US military to suppress the outbreaks .
Critics have accused Trump of stoking conflict and racial tensions through his response to the protests .

Donald Trump tells state governors to crack down on protests
US president Donald Trump on Monday told state governors to crack down on growing protests across the country against the treatment of African-Americans by police forces.
Speaking to governors on a private call, Trump reportedly told them that they “have to dominate” the protestors.
He said: “If you don’t dominate, you’re wasting your time – they’re going to run over you, you’re going to look like a bunch of jerks”.
Dozens of cities across the US have been rocked by a sixth day of protests after unarmed George Floyd was killed by a white Minneapolis police officer last week.
The officer in question, Derek Chauvin, was filmed by an onlooker kneeling on 46-year-old Floyd’s neck for nearly nine minutes after the man was taken into police custody.
Chauvin has been fired and charged with third-degree murder and second-degree manslaughter.
Before the Open newsletter: Start your day with the City View podcast and key market data
The US has not seen civil unrest on this scale since the assassination of civil rights leader Martin Luther King in 1968, with the National Guard deployed in 23 states.
The protests started as peaceful demonstrations but have subsequently descended into violence, with fires being lit near the White House and looting in several cities.
Earlier today a truck drove at crowds in Minneapolis before its driver was pulled from his cab.
Trump, who is yet to make a public statement on the protests, has sought to blame the violence on the anti-fascist Antifa movement.
In a string of tweets, the president labelled protestors “thugs” and threatened to use the US military to suppress the outbreaks.
Critics have accused Trump of stoking conflict and racial tensions through his response to the protests.


cityam--2020-06-01--Brexit: No breakthroughs expected in fresh round of UK-EU trade talks

No major breakthroughs are expected in Brexit trade talks this week as UK and EU negotiators remain deadlocked on several major areas .
Sources close to the UK negotiating team said they were not expecting much progress on the biggest flashpoints – such as EU access to UK fishing waters and business competition regulations – over the next four days and that there would need to be political intervention for gaps to be bridged .
Read more : Sadiq Khan calls for extension to Brexit transition period The fourth round of talks between the UK and EU begin tomorrow and @ @ @ @ @ @ @ take a break to assess progress so far .
Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen will also meet this month at a yet to be confirmed date .
The government initially said it would make a decision by June if it is worth continuing negotiations or if it will walk away and prepare to leave the transition period on 31 December without a deal .
City A.M. understands that the June deadline may have been slightly softened , but that a decision will be made before autumn @ @ @ @ @ @ @ negotiator David Frost said the team were not expecting much movement on key areas until Johnson and van der Leyen conducted high-level meetings .
Before the Open : Get the jump on the markets with our early morning newsletter They added that there “ may be some movement on fishing policy ” in this round of negotiations , but that the team was not “ not really expecting a dramatic breakthrough this week ” .
Talks have heated up in the past few weeks as Frost and EU negotiator Michel Barnier traded barbs @ @ @ @ @ @ @ that Brussels was offering the UK a “ low quality trade agreement ” , while Barnier accused Frost of trying to “ cherry pick ” from other EU free trade agreements .
The two largest areas of contention are fisheries policy and the so-called level playing field .
The EU is asking for its member states to retain the same fishing access they had to UK waters as when Britain was in the EU – a position that has been described by Frost as “ not a runner for us ” .
Brussels @ @ @ @ @ @ @ EU regulations on things like labour laws , environmental protection and state aid to the private sector .
In return for this level playing field , Brussels will continue to trade with the UK on a zero-tariff basis .
Frost said last week that while he believed some movement was beginning to happen on fisheries that the two sides were still far apart on level playing field discussions .
“ We all want zero tariffs , zero quotas and that ’ s what we said in the political declarations that we wanted and @ @ @ @ @ @ @ ” he said .
“ We are not saying there can be no level playing field provisions , we ’ re simply saying they must be provisions which are appropriate to a free trade agreements like are found in the Japan or Canada agreements and that ’ s what we ’ ve put forward.
” Barnier said after the last round of negotiations that the UK “ did not engage in a real discussion on the question of the level playing field ” .
He added : “ Our Member states have been @ @ @ @ @ @ @ playing field , and without an agreement on fisheries , there will be no economic and trade partnership agreement.
” The latest round of negotiations begin as mayor of London Sadiq Khan today called for an extension to the transition period past 31 December .
Read more : Brexit : EU must change ‘ unreasonable ’ political mandate for UK trade agreement The mayor of London wrote today to chancellor of the Duchy of Lancaster Michael Gove , the minister responsible for the talks , to say an “ extension to the transition @ @ @ @ @ @ @ businesses and public services some certainty ” during the coronavirus crisis .
Responding to the letter , a UK government spokesperson said there would be no extension .

Brexit: No breakthroughs expected in fresh round of UK-EU trade talks
The fourth round of trade talks between the UK and EU begin tomorrow and will be the last before both sides take a break to assess progress so far.
No major breakthroughs are expected in Brexit trade talks this week as UK and EU negotiators remain deadlocked on several major areas.
Sources close to the UK negotiating team said they were not expecting much progress on the biggest flashpoints – such as EU access to UK fishing waters and business competition regulations – over the next four days and that there would need to be political intervention for gaps to be bridged.
The fourth round of talks between the UK and EU begin tomorrow and will be the last before both sides take a break to assess progress so far.
Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen will also meet this month at a yet to be confirmed date.
The government initially said it would make a decision by June if it is worth continuing negotiations or if it will walk away and prepare to leave the transition period on 31 December without a deal.
City A.M. understands that the June deadline may have been slightly softened, but that a decision will be made before autumn.
A source close to chief UK negotiator David Frost said the team were not expecting much movement on key areas until Johnson and van der Leyen conducted high-level meetings.
Before the Open: Get the jump on the markets with our early morning newsletter
They added that there “may be some movement on fishing policy” in this round of negotiations, but that the team was not “not really expecting a dramatic breakthrough this week”.
Talks have heated up in the past few weeks as Frost and EU negotiator Michel Barnier traded barbs over their respective positions.
Frost said that Brussels was offering the UK a “low quality trade agreement”, while Barnier accused Frost of trying to “cherry pick” from other EU free trade agreements.
The two largest areas of contention are fisheries policy and the so-called level playing field.
The EU is asking for its member states to retain the same fishing access they had to UK waters as when Britain was in the EU – a position that has been described by Frost as “not a runner for us”.
Brussels is also asking that the UK mirrors EU regulations on things like labour laws, environmental protection and state aid to the private sector.
In return for this level playing field, Brussels will continue to trade with the UK on a zero-tariff basis.
Frost said last week that while he believed some movement was beginning to happen on fisheries that the two sides were still far apart on level playing field discussions.
“We all want zero tariffs, zero quotas and that’s what we said in the political declarations that we wanted and we still hope to get it,” he said.
“We are not saying there can be no level playing field provisions, we’re simply saying they must be provisions which are appropriate to a free trade agreements like are found in the Japan or Canada agreements and that’s what we’ve put forward.”
Barnier said after the last round of negotiations that the UK “did not engage in a real discussion on the question of the level playing field”.
He added: “Our Member states have been very clear that, without a level playing field, and without an agreement on fisheries, there will be no economic and trade partnership agreement.”
The latest round of negotiations begin as mayor of London Sadiq Khan today called for an extension to the transition period past 31 December.
The mayor of London wrote today to chancellor of the Duchy of Lancaster Michael Gove, the minister responsible for the talks, to say an “extension to the transition period is now urgently needed to give businesses and public services some certainty” during the coronavirus crisis.
Responding to the letter, a UK government spokesperson said there would be no extension.


cityam--2020-06-01--London Stock Exchange finds broad backing for shorter trading hours

The London Stock Exchange ( LSE ) has found strong support for shorter trading hours after a public consultation with the industry .
Feedback from the LSE ’ s public consultation found a “ significant majority ” of respondents thought a reduction of market hours “ could lead to improvements in diversity and wellbeing ” .
A small number suggested a “ lunch break ” as an alternative to slashing trading hours .
The current hours are from 8am to 4.30pm , but most respondents said they ’ d prefer a working day of 9am to 4pm .
The respondents @ @ @ @ @ @ @ and banks – did say that for any benefit to be fully realised , there would have to be “ harmonisation across European exchanges and other trading venues ” given the pan-European nature of many trading roles .
Before the Open : Get the jump on the markets with our early morning newsletter Other European exchanges are currently consulting and considering their position on trading hours .
The LSE said : “ We await their public findings as these will be an important factor in considering any potential changes to our trading hours @ @ @ @ @ @ @ ” The majority didn ’ t consider the current overlap with Asian market hours to be as important as that with US markets .
Before the Open newsletter : Start your day with the City View podcast and key market data The London Stock Exchange launched a consultation on trading hours in December after industry bodies said a change would improve workplace culture and diversity .
Galina Dimitrova , director for Investment and Capital Markets at the Investment Association said : “ Shortening trading hours has the potential to improve wellbeing and diversity @ @ @ @ @ @ @ deliver better outcomes for our clients.
” Read more : Euronext follows London with consultation on shorter trading hours “ The fact that the majority of respondents to the LSE ’ s consultation on market trading hours agree , adds further weight to the argument that it is time to reduce trading hours.
” Retail investors broadly agreed on a later opening time , to allow for a better digestion of results and news overnight , but there were mixed views on an earlier closing time .
Get the news as it happens @ @ @ @ @ @ @

London Stock Exchange finds broad backing for shorter trading hours
The London Stock Exchange (LSE) has found strong support for shorter trading hours after a public consultation with the industry.
Feedback from the LSE’s public consultation found a “significant majority” of respondents thought a reduction of market hours “could lead to improvements in diversity and wellbeing”.
A small number suggested a “lunch break” as an alternative to slashing trading hours. The current hours are from 8am to 4.30pm, but most respondents said they’d prefer a working day of 9am to 4pm.
The respondents – which included investment managers, brokers and banks – did say that for any benefit to be fully realised, there would have to be “harmonisation across European exchanges and other trading venues” given the pan-European nature of many trading roles.
Before the Open: Get the jump on the markets with our early morning newsletter
Other European exchanges are currently consulting and considering their position on trading hours. The LSE said: “We await their public findings as these will be an important factor in considering any potential changes to our trading hours, given the indicated preference for harmonisation.”
The majority didn’t consider the current overlap with Asian market hours to be as important as that with US markets.
Before the Open newsletter: Start your day with the City View podcast and key market data
The London Stock Exchange launched a consultation on trading hours in December after industry bodies said a change would improve workplace culture and diversity.
Galina Dimitrova, director for Investment and Capital Markets at the Investment Association said: “Shortening trading hours has the potential to improve wellbeing and diversity on our trading floors and ultimately to deliver better outcomes for our clients.”
“The fact that the majority of respondents to the LSE’s consultation on market trading hours agree, adds further weight to the argument that it is time to reduce trading hours.”
Retail investors broadly agreed on a later opening time, to allow for a better digestion of results and news overnight, but there were mixed views on an earlier closing time.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-06-01--Major Aston Martin shareholder trims stake in iconic carmaker

One of Aston Martin ’ s largest shareholders has trimmed its stake in the iconic British carmaker by five per cent , a regulatory filing showed today .
Italian private equity firm Investindustrial Advisers disclosed a stake of 14.99 per cent , down from a previous stake of 19.92 per cent .
The reason behind the decision to cut the stake by a quarter was not shared , but Investindustrial Advisers remains Aston Martin ’ s second-biggest stakeholder , behind Canadian billionaire Lawrence Stroll .
The news comes after last week Andy Palmer stepped down as chief executive after a @ @ @ @ @ @ @ share price has collapsed 98 per cent .
Palmer will be replaced by senior Mercedes executive Tobias Moers from 1 August .
Before the Open newsletter : Start your day with the City View podcast and key market data Moers will have his work cut out , with Aston Martin reporting a £119m loss in the first quarter due to the coronavirus crisis .
The results were the first since Stroll took a 25 per cent stake in the company and became its executive chairman after leading a £536m raise .
The iconic @ @ @ @ @ @ @ over the coming year after a disastrous period for the business since listing in October 2018 .
Finance chief Mark Wilson has also stepped down as part of the wide-ranging management shake-up .
City A.M. has contacted Aston Martin and Investindustrial for comment .

Major Aston Martin shareholder trims stake in iconic carmaker
One of Aston Martin’s largest shareholders has trimmed its stake in the iconic British carmaker by five per cent, a regulatory filing showed today.
Italian private equity firm Investindustrial Advisers disclosed a stake of 14.99 per cent, down from a previous stake of 19.92 per cent.
The reason behind the decision to cut the stake by a quarter was not shared, but Investindustrial Advisers remains Aston Martin’s second-biggest stakeholder, behind Canadian billionaire Lawrence Stroll.
The news comes after last week Andy Palmer stepped down as chief executive after a tenure in which the carmaker’s share price has collapsed 98 per cent.
Palmer will be replaced by senior Mercedes executive Tobias Moers from 1 August.
Before the Open newsletter: Start your day with the City View podcast and key market data
Moers will have his work cut out, with Aston Martin reporting a £119m loss in the first quarter due to the coronavirus crisis.
The results were the first since Stroll took a 25 per cent stake in the company and became its executive chairman after leading a £536m raise.
The iconic firm is attempting a “reset” over the coming year after a disastrous period for the business since listing in October 2018.
Finance chief Mark Wilson has also stepped down as part of the wide-ranging management shake-up.
City A.M. has contacted Aston Martin and Investindustrial for comment.


cityam--2020-06-01--UK coronavirus deaths have smallest one-day increase since start of lockdown

The UK ’ s number of coronavirus deaths had it smallest one-day increase yesterday since lockdown was implemented on 23 March .
Health secretary Matt Hancock said at the daily press briefing that 111 people died from Covid-19 yesterday , bringing the total to 39,045 .
Read more : US manufacturing remained in ‘ deep downturn ’ in May On Sunday , 1,570 tested positive for coronavirus , which represented “ downward progress in the number of confirmed cases ” , according to Hancock .
He added : “ We can see from these charts the pattern right across the @ @ @ @ @ @ @ substance , we ’ re making significant progress but there is still more to be done.
” It comes as the UK further eased lockdown today , allowing people to meet with a maximum of five people from outside their household .
Primary school students from reception , year one and year six are also going back to the classroom from today .
A major part of the government ’ s plan out of lockdown is the NHS track and trace programme , which was launched last week .
The programme sees 25,000 @ @ @ @ @ @ @ been in close contact with a positive coronavirus case .
However , there has been some press reports that there have been problems with the system and that it was not completely ready to be launched .
Hancock said that a majority of the 9,000 new Covid-19 cases that have occurred since the new system was put in place have been contacted .
Read more : City urges government to hand coronavirus loans to firms hit by EU state aid rules “ It ’ s successful , I ’ m very glad to @ @ @ @ @ @ @ isolate by the contact tracers are expressing the willingness to do so and we track that very carefully , ” he said .
“ The level of incidence of disease has come down and so actually we have more capacity than we need , this is a good thing .
”

UK coronavirus deaths have smallest one-day increase since start of lockdown
A man wearing a protective face mask walks past a poster in the street in Leeds
The UK’s number of coronavirus deaths had it smallest one-day increase yesterday since lockdown was implemented on 23 March.
Health secretary Matt Hancock said at the daily press briefing that 111 people died from Covid-19 yesterday, bringing the total to 39,045.
On Sunday, 1,570 tested positive for coronavirus, which represented “downward progress in the number of confirmed cases”, according to Hancock.
He added: “We can see from these charts the pattern right across the board, which is that on the substance, we’re making significant progress but there is still more to be done.”
It comes as the UK further eased lockdown today, allowing people to meet with a maximum of five people from outside their household.
Primary school students from reception, year one and year six are also going back to the classroom from today.
A major part of the government’s plan out of lockdown is the NHS track and trace programme, which was launched last week.
The programme sees 25,000 contact tracers track down anyone who has been in close contact with a positive coronavirus case.
However, there has been some press reports that there have been problems with the system and that it was not completely ready to be launched.
Hancock said that a majority of the 9,000 new Covid-19 cases that have occurred since the new system was put in place have been contacted.
“It’s successful, I’m very glad to report that those who are asked to isolate by the contact tracers are expressing the willingness to do so and we track that very carefully,” he said.
“The level of incidence of disease has come down and so actually we have more capacity than we need, this is a good thing.”


cityam--2020-06-01--How to use cultural heritage as a competitive advantage

Internationalising can be difficult for small business , especially if their products are grounded in domestic cultural traditions and require the possession of some degree of cultural knowledge to be understood , used , and valued by foreign customers .
Difficult , but not impossible .
Three different ‘ cultural strategies ’ are available to them if they wish to succeed on an international scale , reveals new research .
Firms operating in sectors ranging from heritage craft and food and beverage to textiles and the cultural industries are increasingly looking at international markets as a way to compensate declining @ @ @ @ @ @ @ expanding abroad , however , may require managers to explore opportunities to adapt the way products are designed , produced and sold , to bridge domestic and foreign values , traditions and preferences .
Innan Sasaki , Assistant Professor of Organisation Studies at Warwick Business School , Niina Nummela , of the University of Turku in Finland , and Davide Ravasi , of UCL , looked at how small businesses can navigate tensions between adjusting traditional products to foreign taste , while at the same time respecting their integrity and authenticity .
“ @ @ @ @ @ @ @ producers of heritage craft located in Kyoto expanded internationally over the years , ” said Dr Sasaki .
“ Our findings point to three strategies that can be used , alternatively or in conjunction , to make traditional products more appealing to foreign customers .
“ The first , selective targeting , focuses on segments of foreign customers that are sufficiently knowledgeable to appreciate the products in the original , unaltered forms .
“ Managers we studied , for instance , initially targeted connoisseurs , collectors , migrant communities , and fans of @ @ @ @ @ @ @ actively tried to educate their customers about the cultural traditions that gave meaning and value to the products .
“ The second , cultural adaptation , is characterised by the willingness to partially adapt products – or the way they are packaged or communicated – to foreign preferences and consumption patterns .
“ Local distributors , here , can play an essential role by helping educate customers through cultural storytelling and other initiatives , or , conversely , by suggesting alternative uses of traditional products or adjustments consistent with local customs and preferences @ @ @ @ @ @ @ transposition , uses collaborations with foreign designers to apply traditional aesthetic or technical elements to entirely different products – that is , using gilding techniques for temple furniture to decorate bathroom tiles – to be marketed to national and international customer segments attracted by the combination of tradition and modernity .
“ Both local distributors and foreign designers support these strategies by serving as cultural intermediaries – individuals who support development and sales of products of symbolic value by helping make them meaningful for consumers.
” The research found that the first strategy @ @ @ @ @ @ @ substantial international sales , being dependent on the relative size of the culturally-savvy segments it addresses .
This strategy , however , is an important first step to acquire better knowledge and understanding of local tastes and preferences to support cultural adaptation – a more promising strategy that enables fimrs to access broader segments of foreign markets .
In the one occasion where alterations were introduced directly in the absence of prior learning , failure occurred .
By highlighting alternative strategies to support growth through internationalisation in traditional sectors , findings from the @ @ @ @ @ @ @ embeddedness when internationalizing : cultural strategies of Japanese craft firms ” , published in the Journal of International Business Studies , have important implications for both managers and policymakers interested in safeguarding cultural heritage and traditions , and using them as a source for competitive advantage in international trade .
This article was originally published on the Warwick Business School website , whose London location at The Shard offers an ideal base for executive learning including an Executive MBA and Distance Learning MBA option .

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How to use cultural heritage as a competitive advantage
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Internationalising can be difficult for small business, especially if their products are grounded in domestic cultural traditions and require the possession of some degree of cultural knowledge to be understood, used, and valued by foreign customers.
Difficult, but not impossible. Three different ‘cultural strategies’ are available to them if they wish to succeed on an international scale, reveals new research.
Firms operating in sectors ranging from heritage craft and food and beverage to textiles and the cultural industries are increasingly looking at international markets as a way to compensate declining domestic demand for traditional products.
Successfully expanding abroad, however, may require managers to explore opportunities to adapt the way products are designed, produced and sold, to bridge domestic and foreign values, traditions and preferences.
Innan Sasaki, Assistant Professor of Organisation Studies at Warwick Business School, Niina Nummela, of the University of Turku in Finland, and Davide Ravasi, of UCL, looked at how small businesses can navigate tensions between adjusting traditional products to foreign taste, while at the same time respecting their integrity and authenticity.
“We studied how a group of Japanese producers of heritage craft located in Kyoto expanded internationally over the years,” said Dr Sasaki. “Our findings point to three strategies that can be used, alternatively or in conjunction, to make traditional products more appealing to foreign customers.
“The first, selective targeting, focuses on segments of foreign customers that are sufficiently knowledgeable to appreciate the products in the original, unaltered forms.
“Managers we studied, for instance, initially targeted connoisseurs, collectors, migrant communities, and fans of Japanese culture more generally. They also actively tried to educate their customers about the cultural traditions that gave meaning and value to the products.
“The second, cultural adaptation, is characterised by the willingness to partially adapt products – or the way they are packaged or communicated – to foreign preferences and consumption patterns.
“Local distributors, here, can play an essential role by helping educate customers through cultural storytelling and other initiatives, or, conversely, by suggesting alternative uses of traditional products or adjustments consistent with local customs and preferences.
“The third one, cultural transposition, uses collaborations with foreign designers to apply traditional aesthetic or technical elements to entirely different products – that is, using gilding techniques for temple furniture to decorate bathroom tiles – to be marketed to national and international customer segments attracted by the combination of tradition and modernity.
“Both local distributors and foreign designers support these strategies by serving as cultural intermediaries – individuals who support development and sales of products of symbolic value by helping make them meaningful for consumers.”
The research found that the first strategy – selective targeting – rarely leads to substantial international sales, being dependent on the relative size of the culturally-savvy segments it addresses.
This strategy, however, is an important first step to acquire better knowledge and understanding of local tastes and preferences to support cultural adaptation – a more promising strategy that enables fimrs to access broader segments of foreign markets. In the one occasion where alterations were introduced directly in the absence of prior learning, failure occurred.
By highlighting alternative strategies to support growth through internationalisation in traditional sectors, findings from the study, Managing cultural specificity and cultural embeddedness when internationalizing: cultural strategies of Japanese craft firms”, published in the Journal of International Business Studies, have important implications for both managers and policymakers interested in safeguarding cultural heritage and traditions, and using them as a source for competitive advantage in international trade.
This article was originally published on the Warwick Business School website, whose London location at The Shard offers an ideal base for executive learning including an Executive MBA and Distance Learning MBA option.


cityam--2020-06-01--O2 reopening after lockdown with virtual queueing technology

O2 will reopen its stores across England this month , with new layouts and a virtual queuing system as part of its safety measures during the pandemic .
At the so-called future stores , which will open from 15 June , customers will skip queues and instead join a virtual system .
They will receive a text when an advisor is ready to help them in a personal one to one appointment .
Read more : Boris Johnson sets out plans for shops and markets to reopen The firm said NHS and care workers will be given VIP access to @ @ @ @ @ @ @ put in place for supermarkets .
O2 shut its retail stores ahead of lockdown was imposed in March and said it would reopen stores across Northern Ireland , Scotland and Wales pending further guidance .
Before the Open : Get the jump on the markets with our early morning newsletter The government has set out workplace guidance for non-essential stores to reopen on 15 June .
O2 has said it will ensure social distancing in its stores with two metre markings , and a limit on the number of customers in stores at @ @ @ @ @ @ @ newsletter : Start your day with the City View podcast and key market data As the coronavirus crisis accelerates the adoption of contactless payments , O2 has increased its payment limit to £45 with email receipts .
Measures have also been taken to ensure staff safety and O2 has installed screens at all open service areas .
Employees will also be equipped with PPE , including gloves and face coverings .
Read more : O2 and Virgin Media confirm merger to create £31bn telecoms player Gareth Turpin , director of sales , service @ @ @ @ @ @ @ changed in the wake of COVID-19 , and we need to make sure we adapt to that change.
” “ We have regrouped and worked out how our stores and our tech can be used to help customers and staff .
The result is a more personal service which also saves customer waiting time .
We look forward to welcoming everyone back to our stores to see the changes for themselves .
”

O2 reopening after lockdown with virtual queueing technology
O2 employees will be given appropriate PPE as part of safety measures during reopening.
O2 will reopen its stores across England this month, with new layouts and a virtual queuing system as part of its safety measures during the pandemic.
At the so-called future stores, which will open from 15 June, customers will skip queues and instead join a virtual system. They will receive a text when an advisor is ready to help them in a personal one to one appointment.
The firm said NHS and care workers will be given VIP access to skip the queue, mirroring the systems put in place for supermarkets.
O2 shut its retail stores ahead of lockdown was imposed in March and said it would reopen stores across Northern Ireland, Scotland and Wales pending further guidance.
Before the Open: Get the jump on the markets with our early morning newsletter
The government has set out workplace guidance for non-essential stores to reopen on 15 June. O2 has said it will ensure social distancing in its stores with two metre markings, and a limit on the number of customers in stores at any given time.
O2 will limit the number of customers in stores at any one time as per government guidance
Before the Open newsletter: Start your day with the City View podcast and key market data
As the coronavirus crisis accelerates the adoption of contactless payments, O2 has increased its payment limit to £45 with email receipts.
Measures have also been taken to ensure staff safety and O2 has installed screens at all open service areas. Employees will also be equipped with PPE, including gloves and face coverings.
Gareth Turpin, director of sales, service and retention said: “Retail has changed in the wake of COVID-19, and we need to make sure we adapt to that change.”
“We have regrouped and worked out how our stores and our tech can be used to help customers and staff. The result is a more personal service which also saves customer waiting time. We look forward to welcoming everyone back to our stores to see the changes for themselves.”


cityam--2020-06-01--Why global cities can still thrive despite Covid-19’s impact

The most connected part of global cities could be of even greater value despite an increase in remote working .
The Covid-19 pandemic has accelerated our digital future with remote working set to become the norm for many people .
But although fewer people will be travelling into cities each day to work in the knowledge economy , the interactions they have with colleagues and clients in the city ’ s urban core – the most connected part of the city – will be of greater importance .
So , rather than diminishing the power of global cities , these @ @ @ @ @ @ @ valuable .
Cities will still be important , despite an increase in remote working Technology has allowed huge numbers of people to work from home during the current lockdown , supplanting the need to be in an office on a daily basis .
At Schroders , 98 % of the workforce is now working remotely .
This would not have been possible 20 years ago .
The current pandemic has accelerated our digital future and going forward many people may choose to continue to work from home .
As such , we envisage @ @ @ @ @ @ @ work in the knowledge economy travelling into city centres each day .
However , when people do come into the city , and particularly the urban core ( the most connected part of the city ) , they will have a greater number of interactions , making them more important to the worker and the city ’ s economy .
Cities nurture and monetise ideas .
Before the Covid-19 pandemic , demand for real assets in cities was increasingly derived from the digital economy .
Data centres and warehouses were the prime beneficiaries @ @ @ @ @ @ @ .
Demand for office space was already weakening as people worked more flexibly and utilised the services of flex office companies .
This trend has accelerated .
The way we use buildings in global cities will change .
However , this is nothing new .
In London , for example , old warehouses by the side of the Thames that were once used for storing commodities brought to the city ’ s port by ship , have been repurposed as high-end luxury housing .
The urban core will still be vital to the @ @ @ @ @ @ @ s economy .
For example , life-science buildings near universities are hubs for biomedical research .
These assets contain specialist equipment used by researchers .
Boston , which is arguably the world ’ s leading city for medical research , will become even more important , given the emphasis on healthcare and research .
Data centres and warehouses have already replaced the need for shopping malls .
The reality is warehouses are beginning to physically replace retail parks ; the value of warehouses close to large , affluent populations is now greater than @ @ @ @ @ @ @ by large internet companies reflect their need to be able to distribute from where people use to shop from .
This is a profound shift in land use .
The need for social distancing is a key factor that will hasten our digital future .
Offices will suffer a collapse in demand , already witnessed by retail assets , in all but the most interconnected locations .
Office buildings in secondary locations , outside of the urban core , will be the most at risk of being repurposed .
With higher numbers of @ @ @ @ @ @ @ make no sense for businesses to maintain these type of offices .
For more : – What are data centres and why are they so important ?
– Why global cities could be more valuable than high-performing tech stocks Most companies will prioritise their offices in the most connected locations or use flex office alternatives .
This was already happening as flexible working ensured only the best connected offices remained relevant .
This is bad news for office owners : less aggregate demand and customers controlled by flex office providers will reduce pricing @ @ @ @ @ @ @ will need to be re-purposed in the future , unless it is in a city ’ s urban core ( the most essential part ) .
Demand for higher and better use will , in all likelihood , see office assets converted in the way retail assets are now being converted .
Urbanisation is a long-term trend which has been accelerating since the earliest days of the industrial revolution .
we believe Covid-19 is not going to derail that .
Economic activity is not going to move back to rural areas and the @ @ @ @ @ @ @ New York , will continue to create economic opportunities .
We believe cities remain the most efficient way for humans to live and work .
One of the main advantages of global cities is the ability for industries to cluster together , boosting efficiency by sharing knowledge and expertise .
This attracts external capital ( venture capital ) creating a self-fulfilling prophecy of investment and returns .
In fact , some global cities ’ expertise may become more concentrated , such as finance , media and technology : as people travel less , @ @ @ @ @ @ @ recognised hub of your professional field will increase .
This would be Los Angeles for entertainment or London for insurance .
Again , it is about maximising the interactions .
From an economic perspective , global cities have huge buying power , often referred to as mass points of consumption .
Post Covid-19 , global cities will continue to be the drivers of GDP for the country and region they are located in .
However , we see the demand for asset types changing , particularly in office buildings , and the need @ @ @ @ @ @ @ excel in specific fields accelerating .
• You can discover more at Schroders insights and follow Schroders on twitter .
Important Information : The views and opinions contained herein are of those named in the article and may not necessarily represent views expressed or reflected in other Schroders communications , strategies or funds .
The sectors and securities shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell .
This communication is marketing material .
This material is intended to be for information purposes @ @ @ @ @ @ @ material in any respect .
The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument .
The material is not intended to provide and should not be relied on for accounting , legal or tax advice , or investment recommendations .
Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions .
Past performance is not a guide to future performance and may not be repeated .
The value of investments and the income @ @ @ @ @ @ @ as up and investors may not get back the amounts originally invested .
All investments involve risks including the risk of possible loss of principal .
Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy .
Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions .
The opinions in this document include some forecasted views .
We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently @ @ @ @ @ @ @ guarantee than any forecasts or opinions will be realised .
These views and opinions may change .
Issued by Schroder Investment Management Limited , 1 London Wall Place , London , EC2Y 5AU .
Registration No .
1893220 England .
Authorised and regulated by the Financial Conduct Authority .

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Why global cities can still thrive despite Covid-19’s impact
Getty Images
The most connected part of global cities could be of even greater value despite an increase in remote working.
The Covid-19 pandemic has accelerated our digital future with remote working set to become the norm for many people. But although fewer people will be travelling into cities each day to work in the knowledge economy, the interactions they have with colleagues and clients in the city’s urban core – the most connected part of the city – will be of greater importance. So, rather than diminishing the power of global cities, these changes will potentially make them even more valuable.
Cities will still be important, despite an increase in remote working
Technology has allowed huge numbers of people to work from home during the current lockdown, supplanting the need to be in an office on a daily basis. At Schroders, 98% of the workforce is now working remotely. This would not have been possible 20 years ago. The current pandemic has accelerated our digital future and going forward many people may choose to continue to work from home.
As such, we envisage that there will be fewer people who work in the knowledge economy travelling into city centres each day. However, when people do come into the city, and particularly the urban core (the most connected part of the city), they will have a greater number of interactions, making them more important to the worker and the city’s economy. Cities nurture and monetise ideas.
Before the Covid-19 pandemic, demand for real assets in cities was increasingly derived from the digital economy. Data centres and warehouses were the prime beneficiaries, while shopping centres were being shuttered. Demand for office space was already weakening as people worked more flexibly and utilised the services of flex office companies. This trend has accelerated.
Buildings will be repurposed
The way we use buildings in global cities will change. However, this is nothing new. In London, for example, old warehouses by the side of the Thames that were once used for storing commodities brought to the city’s port by ship, have been repurposed as high-end luxury housing.
The urban core will still be vital to the effective running of a global city’s economy. For example, life-science buildings near universities are hubs for biomedical research. These assets contain specialist equipment used by researchers. Boston, which is arguably the world’s leading city for medical research, will become even more important, given the emphasis on healthcare and research.
Data centres and warehouses have already replaced the need for shopping malls. The reality is warehouses are beginning to physically replace retail parks; the value of warehouses close to large, affluent populations is now greater than the value of retail outlets. Transactions by large internet companies reflect their need to be able to distribute from where people use to shop from. This is a profound shift in land use.
The need for social distancing is a key factor that will hasten our digital future. Offices will suffer a collapse in demand, already witnessed by retail assets, in all but the most interconnected locations. Office buildings in secondary locations, outside of the urban core, will be the most at risk of being repurposed. With higher numbers of people working from home, it will make no sense for businesses to maintain these type of offices.
For more:
– What are data centres and why are they so important?
– Why global cities could be more valuable than high-performing tech stocks
Most companies will prioritise their offices in the most connected locations or use flex office alternatives. This was already happening as flexible working ensured only the best connected offices remained relevant. This is bad news for office owners: less aggregate demand and customers controlled by flex office providers will reduce pricing power even further.
Excess office space will need to be re-purposed in the future, unless it is in a city’s urban core (the most essential part). Demand for higher and better use will, in all likelihood, see office assets converted in the way retail assets are now being converted.
Urbanisation remains a long-term trend
Urbanisation is a long-term trend which has been accelerating since the earliest days of the industrial revolution. we believe Covid-19 is not going to derail that. Economic activity is not going to move back to rural areas and the strongest cities, such as London and New York, will continue to create economic opportunities. We believe cities remain the most efficient way for humans to live and work.
One of the main advantages of global cities is the ability for industries to cluster together, boosting efficiency by sharing knowledge and expertise. This attracts external capital (venture capital) creating a self-fulfilling prophecy of investment and returns.
In fact, some global cities’ expertise may become more concentrated, such as finance, media and technology: as people travel less, the need to be centred in the recognised hub of your professional field will increase. This would be Los Angeles for entertainment or London for insurance. Again, it is about maximising the interactions.
From an economic perspective, global cities have huge buying power, often referred to as mass points of consumption. Post Covid-19, global cities will continue to be the drivers of GDP for the country and region they are located in. However, we see the demand for asset types changing, particularly in office buildings, and the need to be located in physical hubs that excel in specific fields accelerating.
You can discover more at Schroders insights and follow Schroders on twitter.
Important Information: The views and opinions contained herein are of those named in the article and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The sectors and securities shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell. This communication is marketing material.
This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. The opinions in this document include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. Issued by Schroder Investment Management Limited, 1 London Wall Place, London, EC2Y 5AU. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.


cityam--2020-06-02--Downing Street: Reports of UK compromise on Brexit talks is 'wishful thinking'

Downing Street has dismissed speculation that the UK is preparing to compromise on fisheries and level playing field rules during Brexit trade talks with the EU .
The Times reported today that EU chief negotiator Michel Barnier expected the UK begin to cave on the two major stumbling blocks to negotiations in this week ’ s negotiating round .
Read more : Brexit : No breakthroughs expected in fresh round of UK-EU trade talks The Prime Minister ’ s official spokesman told a call of journalists today that it was “ wishful thinking by the EU ” .
“ We @ @ @ @ @ @ @ question of splitting the difference on level playing field and fish , ” he said .
“ We aren ’ t compromising on these , because our position on these is fundamental to an independent country .
“ Any agreement has to deal with this reality.
” The fourth round of talks between the UK and EU began today and will be the last before both sides take a break to assess progress so far .
Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen will also meet this month @ @ @ @ @ @ @ .
A source close to UK chief negotiator David Frost told City A.M. yesterday that the Downing Street ’ s negotiating team did not expect much progress this week , and that there would need to be political movement between Johnson and von der Leyen for gaps to be bridged .
UK officials have said enough progress needs to be made before autumn or they will walk away and prepare to leave the transition period on 31 December with no deal .
The two largest areas of contention during negotiations have been the @ @ @ @ @ @ @ field .
The EU is asking for its member states to retain the same fishing access they had to UK waters as when Britain was in the EU – a position that has been described by Frost as “ not a runner for us ” .
Brussels is also asking that the UK mirrors EU regulations on things like labour laws , environmental protection and state aid to the private sector .
In return for this level playing field , Brussels will continue to trade with the UK on a zero-tariff basis .
@ @ @ @ @ @ @ believed some movement was beginning to happen on fisheries that the two sides were still far apart on level playing field discussions .
“ We all want zero tariffs , zero quotas and that ’ s what we said in the political declarations that we wanted and we still hope to get it , ” he said .
“ We are not saying there can be no level playing field provisions , we ’ re simply saying they must be provisions which are appropriate to a free trade agreements like are found in @ @ @ @ @ @ @ ’ s what we ’ ve put forward.
” Barnier said after the last round of negotiations that the UK “ did not engage in a real discussion on the question of the level playing field ” .
He added : “ Our Member states have been very clear that , without a level playing field , and without an agreement on fisheries , there will be no economic and trade partnership agreement.
” Read more : Boris Johnson targets Brexit trade talks with von der Leyen to agree summer deal There are @ @ @ @ @ @ @ overall deal .
Brussels is asking for the disputes to be managed by the European Court of Justice , while the UK has said this unacceptable .

Downing Street: Reports of UK compromise on Brexit talks is ‘wishful thinking’
The Times reported today that EU chief negotiator Michel Barnier expected the UK begin to cave on the two major stumbling blocks to negotiations in this week’s negotiating round.
Downing Street has dismissed speculation that the UK is preparing to compromise on fisheries and level playing field rules during Brexit trade talks with the EU.
The Times reported today that EU chief negotiator Michel Barnier expected the UK begin to cave on the two major stumbling blocks to negotiations in this week’s negotiating round.
The Prime Minister’s official spokesman told a call of journalists today that it was “wishful thinking by the EU”.
“We have always been clear there is no question of splitting the difference on level playing field and fish,” he said.
“We aren’t compromising on these, because our position on these is fundamental to an independent country.
“Any agreement has to deal with this reality.”
The fourth round of talks between the UK and EU began today and will be the last before both sides take a break to assess progress so far.
Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen will also meet this month at a yet to be confirmed date.
A source close to UK chief negotiator David Frost told City A.M. yesterday that the Downing Street’s negotiating team did not expect much progress this week, and that there would need to be political movement between Johnson and von der Leyen for gaps to be bridged.
UK officials have said enough progress needs to be made before autumn or they will walk away and prepare to leave the transition period on 31 December with no deal.
The two largest areas of contention during negotiations have been the fisheries policy and the so-called level playing field.
The EU is asking for its member states to retain the same fishing access they had to UK waters as when Britain was in the EU – a position that has been described by Frost as “not a runner for us”.
Brussels is also asking that the UK mirrors EU regulations on things like labour laws, environmental protection and state aid to the private sector.
In return for this level playing field, Brussels will continue to trade with the UK on a zero-tariff basis.
Frost said last week that while he believed some movement was beginning to happen on fisheries that the two sides were still far apart on level playing field discussions.
“We all want zero tariffs, zero quotas and that’s what we said in the political declarations that we wanted and we still hope to get it,” he said.
“We are not saying there can be no level playing field provisions, we’re simply saying they must be provisions which are appropriate to a free trade agreements like are found in the Japan or Canada agreements and that’s what we’ve put forward.”
Barnier said after the last round of negotiations that the UK “did not engage in a real discussion on the question of the level playing field”.
He added: “Our Member states have been very clear that, without a level playing field, and without an agreement on fisheries, there will be no economic and trade partnership agreement.”
There are also disagreements about governance arrangements for the overall deal.
Brussels is asking for the disputes to be managed by the European Court of Justice, while the UK has said this unacceptable.


cityam--2020-06-02--Domestic M&A rises in first quarter despite coronavirus, as foreign takeovers fall

UK M & A increased in the first quarter despite the outbreak of coronavirus , while foreign takeovers fell to their lowest level since 2017 .
During the first quarter , domestic M & A – where UK companies acquire other UK companies – was worth £3.2bn , an increase of £1.1bn in the same period last year , according to the Office for National Statistics .
Read more : M & A set for torrid second quarter as deal volumes are expected to contract further The UK market started the year well with some bumper deals that consolidated some @ @ @ @ @ @ @ £1.1bn acquisition of Galliford Try completed in January with analysts predicting it would create a top five housebuilder in the UK .
Additionally , Ovo Energy bought SSE ’ s household energy business in January for £500m which sees Ovo become the second largest supplier in the UK , with 5m customers .
ONS figures released today also show that outward M & A , where UK firms acquire foreign companies abroad , increased marginally to £3.4bn from £3bn in the fourth quarter .
But it is a notable decrease of the £4.5bn @ @ @ @ @ @ @ .
It is notable that the majority of the deals were completed before the coronavirus restrictions were imposed in the UK .
Additionally , the lag between announcing and completing a deal means any impact on activity might not be immediate .
Indeed by April , UK M & A had plunged to its lowest monthly level in almost 35 years after the pandemic slashed business confidence and froze economic activity .
Deal value involving a UK target totalled £409.1m from 35 deals in April , while global M & A slumped to @ @ @ @ @ @ @ .
Read more : UK M & A falls to lowest monthly total in almost 35 years Despite an increase in domestic M & A , foreign investors backed away from takeovers in the first quarter .
The value of inward M & A fell to £4.6bn , the lowest value recorded since the fourth quarter of 2017 when it was down to £3.6bn .
It marks a staggering fall of £11.1bn compared with the fourth quarter of 2019 .
A significant proportion of this came from the Cayman Islands-based Stonegate Pub Company @ @ @ @ @ @ @ February for £1.3bn .
Get the news as it happens by following City A.M. on Twitter .

Domestic M&A rises in first quarter despite coronavirus, as foreign takeovers fall
Responsible investing is not a bubble ready to burst. It is an economic and societal transition – a revolution, writes Saker Nusseibeh
UK M&A increased in the first quarter despite the outbreak of coronavirus, while foreign takeovers fell to their lowest level since 2017.
During the first quarter, domestic M&A – where UK companies acquire other UK companies – was worth £3.2bn, an increase of £1.1bn in the same period last year, according to the Office for National Statistics.
The UK market started the year well with some bumper deals that consolidated some key markets. Housebuilder Bovis Homes’ £1.1bn acquisition of Galliford Try completed in January with analysts predicting it would create a top five housebuilder in the UK.
Additionally, Ovo Energy bought SSE’s household energy business in January for £500m which sees Ovo become the second largest supplier in the UK, with 5m customers.
ONS figures released today also show that outward M&A, where UK firms acquire foreign companies abroad, increased marginally to £3.4bn from £3bn in the fourth quarter. But it is a notable decrease of the £4.5bn recorded in the first quarter of 2019.
It is notable that the majority of the deals were completed before the coronavirus restrictions were imposed in the UK. Additionally, the lag between announcing and completing a deal means any impact on activity might not be immediate.
Indeed by April, UK M&A had plunged to its lowest monthly level in almost 35 years after the pandemic slashed business confidence and froze economic activity. Deal value involving a UK target totalled £409.1m from 35 deals in April, while global M&A slumped to its lowest monthly total since September 2002.
However there is some optimism to be had in the tech and life sciences sectors as markets look beyond the pandemic. Michal Berkner, partner at law firm Cooley, said: “In Cooley’s core sectors of tech and life sciences we expect to see an uptick in UK M&A as the lockdown eases further.”
“Deal flow typically follows the US and there we are already seeing more M&A activity than when the coronavirus first hit the country.”
Despite an increase in domestic M&A, foreign investors backed away from takeovers in the first quarter.
The value of inward M&A fell to £4.6bn, the lowest value recorded since the fourth quarter of 2017 when it was down to £3.6bn. It marks a staggering fall of £11.1bn compared with the fourth quarter of 2019. A significant proportion of this came from the Cayman Islands-based Stonegate Pub Company’s acquisition of Ei Group in February for £1.3bn.
Get the news as it happens by following City A.M. on Twitter.