cityam--2020-10-07--Prepare for Libor’s demise, City regulator tells markets

Financial markets need to prepare themselves for regulatory announcements about the Libor benchmark interest rate ceasing at the end of next year , the City watchdog said .
“ Market participants need to be ready for announcements later this year setting out what will happen at the end of 2021 , ” the FCA ’ s director of markets , Edwin Schooling Latter , told an online event today .
“ The scenario that you need to be ready for is that those are announcements of cessation , ” he said .
Libor , or the London Interbank Offered Rate @ @ @ @ @ @ @ in contracts worth around £355 trillion globally .
The rate was widely discredited after banks were fined billions of dollars for trying to rig it for a profit , and global regulators including the Financial Conduct Authority ( FCA ) are pushing to scrap it by the end of 2021 .
In March , the regulator warned that the coronavirus pandemic was likely to make it harder for some firms to meet milestones for the transition from Libor to other rates such as Sonia – an overnight interest rate compiled by the Bank @ @ @ @ @ @ @ : Start your day with the City View podcast and key market data But some borrowers remain slow to adopt rates such as Sonia , the sterling overnight index average , as they only show the interest due on a loan just before a payment is due .
However the FCA said at the time that its “ central assumption ” was still that firms could not rely on Libor being published after the end of 2021 .
Today ’ s warning from the FCA comes as Natwest launches a campaign encouraging its @ @ @ @ @ @ @ The bank is writing to 3,500 companies to explain how delays in switching rates could increase the volatility of their borrowing costs and how to choose the most suitable new benchmark before Libor disappears at the end of 2021 .
The campaign coincides with the banking sector ’ s third quarter deadline on offering alternative risk-free rates on new loans , and comes six months before new lending referencing Libor is banned .
“ We ’ re starting to see a very small handful of blue chips at the top of the pyramid @ @ @ @ @ @ @ it ’ s taken quite some time to get there , ” said Jamie Thrower , Natwest ’ s Libor transition lead for customers .
“ The base of the pyramid comprises the majority of corporates for whom Libor transition has not grabbed their attention in the same way as other challenges they face , ” he added .

Prepare for Libor’s demise, City regulator tells markets
Financial markets need to prepare themselves for regulatory announcements about the Libor benchmark interest rate ceasing at the end of next year, the City watchdog said.
“Market participants need to be ready for announcements later this year setting out what will happen at the end of 2021,” the FCA’s director of markets, Edwin Schooling Latter, told an online event today.
“The scenario that you need to be ready for is that those are announcements of cessation,” he said.
Libor, or the London Interbank Offered Rate, is an interest rate benchmark used in contracts worth around £355 trillion globally.
The rate was widely discredited after banks were fined billions of dollars for trying to rig it for a profit, and global regulators including the Financial Conduct Authority (FCA) are pushing to scrap it by the end of 2021.
In March, the regulator warned that the coronavirus pandemic was likely to make it harder for some firms to meet milestones for the transition from Libor to other rates such as Sonia – an overnight interest rate compiled by the Bank of England.
Before the Open newsletter: Start your day with the City View podcast and key market data
But some borrowers remain slow to adopt rates such as Sonia, the sterling overnight index average, as they only show the interest due on a loan just before a payment is due.
However the FCA said at the time that its “central assumption” was still that firms could not rely on Libor being published after the end of 2021.
Today’s warning from the FCA comes as Natwest launches a campaign encouraging its customers to abandon the discredited rate.
The bank is writing to 3,500 companies to explain how delays in switching rates could increase the volatility of their borrowing costs and how to choose the most suitable new benchmark before Libor disappears at the end of 2021.
The campaign coincides with the banking sector’s third quarter deadline on offering alternative risk-free rates on new loans, and comes six months before new lending referencing Libor is banned.
“We’re starting to see a very small handful of blue chips at the top of the pyramid going straight into a Sonia facility but it’s taken quite some time to get there,” said Jamie Thrower, Natwest’s Libor transition lead for customers.
“The base of the pyramid comprises the majority of corporates for whom Libor transition has not grabbed their attention in the same way as other challenges they face,” he added.


cityam--2020-10-07--Liz Truss warns of the dangers of another England lockdown

International trade secretary Liz Truss has said that another national lockdown would “ set us back hugely ” as the government weighs up imposing new Covid restrictions .
Cases continue to spike in parts of the North , including Liverpool , Manchester and Newcastle , with some media outlets speculating that hospitality venues could be closed except for takeaways in these areas .
Read more : England ’ s 10pm curfew may be scrapped as government delays vote Cases have doubled nationally in the past 11 days to 14,542 , while deaths have also doubled to 76 over the same @ @ @ @ @ @ @ this morning : “ We are working very carefully right across the country to make sure we ’ ve got the right measures in place to restrict the spread of the virus , and of course we are keeping that constantly under review .
“ What ’ s really important , though , is that we don ’ t want to go back to a second lockdown where we end up having to close down the economy and the potential damage that has on people ’ s livelihoods.
” The cabinet is believed @ @ @ @ @ @ @ to have a lighter touch Covid regime to protect the economy and those that want to be more cautious about the spread of the virus .
Read more : Rishi Sunak vows to protect UK ’ s entrepreneurs in conference speech Rishi Sunak has come out recently to say that the UK must “ live without fear ” , while also emphasising the need for the Tories to be the party of personal responsibility .
Health secretary Matt Hancock and Cabinet Office minister Michael Gove are seen as the two most influential voices @ @ @ @ @ @ @ more cautious approach to stopping the spread .

Liz Truss warns of the dangers of another England lockdown
LONDON, ENGLAND – SEPTEMBER 30: International Trade Secretary, Liz Truss walks from Downing Street for the weekly cabinet meeting to be held in the Foreign and Commonwealth Office on September 30, 2020 in London, England. (Photo by Leon Neal/Getty Images)
International trade secretary Liz Truss has said that another national lockdown would “set us back hugely” as the government weighs up imposing new Covid restrictions.
Cases continue to spike in parts of the North, including Liverpool, Manchester and Newcastle, with some media outlets speculating that hospitality venues could be closed except for takeaways in these areas.
Cases have doubled nationally in the past 11 days to 14,542, while deaths have also doubled to 76 over the same time frame.
Truss told the BBC this morning: “We are working very carefully right across the country to make sure we’ve got the right measures in place to restrict the spread of the virus, and of course we are keeping that constantly under review.
“What’s really important, though, is that we don’t want to go back to a second lockdown where we end up having to close down the economy and the potential damage that has on people’s livelihoods.”
The cabinet is believed to be split between those who want to have a lighter touch Covid regime to protect the economy and those that want to be more cautious about the spread of the virus.
Rishi Sunak has come out recently to say that the UK must “live without fear”, while also emphasising the need for the Tories to be the party of personal responsibility.
Health secretary Matt Hancock and Cabinet Office minister Michael Gove are seen as the two most influential voices in cabinet that are pulling for a more cautious approach to stopping the spread.


cityam--2020-10-07--FTSE 100 flat after Donald Trump ends US stimulus talks

The FTSE 100 flatlined after US President Donald Trump abruptly ended talks between Republicans and Democrats over the next round of fiscal stimulus .
London ’ s blue-chip index was just 0.02 per cent higher at 5,951 points as it approached midday .
The FTSE 250 was up 0.1 per cent .
Read more : US stocks fall after President Trump calls off stimulus talks European stock markets also slipped back after opening in the green , following sharp falls on Wall Street yesterday .
Germany ’ s Dax was down 0.3 per cent and the continent-wide Stoxx 600 fell @ @ @ @ @ @ @ have been at loggerheads for months over the potential stimulus bill .
Democrats had hoped for a package worth around $ 2.2 trillion ( £1.7 trillion ) .
Yet Republicans argued the economy needed far less .
Trump ran out of patience with the process yesterday .
“ I have instructed my representatives to stop negotiating until after the election when , immediately after I win , we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business , ” he tweeted .
US stocks slid more than one @ @ @ @ @ @ @ The S & P 500 ended 1.4 per cent lower , with the tech-heavy Nasdaq down 1.6 per cent .
They were set to make up some of that ground today , according to futures prices .
Trump ’ s move to end talks appeared to be a change of tack .
Just days earlier he had urged both sides to agree on a package .
Ending stimulus discussions is a risky strategy for Trump ahead of the 3 November presidential election .
Economists have warned that US households and businesses , particularly @ @ @ @ @ @ @ need extra support fast .
Read more : Fed ’ s Jay Powell : Too much stimulus is better than too little Yesterday , US Federal Reserve chairman made some of his most pointed remarks yet about the need for new stimulus .
“ The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.
” However , hopes of a deal before the election are not completely dead .
@ @ @ @ @ @ @ tweets that showed he was keen on some economic support .
He tweeted : “ If I am sent a Stand Alone Bill for Stimulus Checks ( $ 1,200 ) , they will go out to our great people IMMEDIATELY .
I am ready to sign right now .
Are you listening Nancy ?
” He was referring to Nancy Pelosi , Democrat speaker of the House .
He also tweeted : “ The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support , & 135 Billion Dollars for @ @ @ @ @ @ @ Both of these will be fully paid for with unused funds from the Cares Act .
Have this money .
I will sign now !
” Russ Mould , investment director at AJ Bell , said there were still hopes that the plans could be revived .
He said this was “ probably helping investors keep the news in perspective for now ” and limiting bigger falls on the FTSE 100 and other stock markets .
He also pointed to data which showed UK house prices rose sharply once again in September .
@ @ @ @ @ @ @ cent , while Barratt Developments was one per cent higher .
Tesco was one of the biggest FTSE 100 risers , with shares up 1.7 per cent .
Its first-half figures showed that earnings fell .
But the supermarket said it expects profit to be similar to last year .
Internationally focused stocks fell as investors fretted about a lack of stimulus from the US , the world ’ s biggest economy .
Jet-engine maker Rolls Royce dropped 1.4 per cent .
Shell B shares fell 1.5 per cent and Burberry was one @ @ @ @

FTSE 100 flat after Donald Trump ends US stimulus talks
EX U.S. President Donald Trump is not amused (Photo by Chip Somodevilla/Getty Images)
The FTSE 100 flatlined after US President Donald Trump abruptly ended talks between Republicans and Democrats over the next round of fiscal stimulus.
London’s blue-chip index was just 0.06 per cent higher at 5,953.6 points as it approached midday. The FTSE 250 was up 0.17 per cent.
Read more: US stocks fall after President Trump calls off stimulus talks
European stock markets also slipped back after opening in the green, following sharp falls on Wall Street yesterday. Germany’s Dax was down 0.46 per cent and the continent-wide Stoxx 600 fell 0.21 per cent.
Republicans and Democrats have been at loggerheads for months over the potential stimulus bill. Democrats had hoped for a package worth around $2.2 trillion (£1.7 trillion). Yet Republicans argued the economy needed far less.
Trump ran out of patience with the process yesterday. “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” he tweeted.
Wall Street rises as shock over scrapped talks fades
US stocks climbed sharply after the open on Wednesday, with all major indices adding more than one per cent in the first minutes of trading.
The S&P 500 started the session 1.21 per cent, while the Dow climbed 1.19 per cent. The Nasdaq added more, rising 1.29 per cent.
Trump’s move to end talks appeared to be a change of tack. Just days earlier he had urged both sides to agree on a package.
Ending stimulus discussions is a risky strategy for Trump ahead of the 3 November presidential election. Economists have warned that US households and businesses, particularly in sectors like aviation and hospitality, need extra support fast.
“Even if a pre-election deal cannot be reached, Biden’s widening lead in the election polls is making it likelier that more substantial stimulus can eventually be agreed on,” UBS analysts wrote in a note to clients.
Read more: Fed’s Jay Powell: Too much stimulus is better than too little
Yesterday, US Federal Reserve chairman Jay Powell made some of his most pointed remarks yet about the need for new stimulus.
“The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.”
Confusion weighs on FTSE 100
However, hopes of a deal before the election are not completely dead. Trump sowed confusion with a series of tweets that showed he was keen on some economic support.
He tweeted: “If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?” He was referring to Nancy Pelosi, Democrat speaker of the House.
He also tweeted: “The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!”
Russ Mould, investment director at AJ Bell, said there were still hopes that the plans could be revived. He said this was “probably helping investors keep the news in perspective for now” and limiting bigger falls on the FTSE 100 and other stock markets.
He also pointed to data which showed UK house prices rose sharply once again in September. Housebuilder Taylor Wimpey was up 2.6 per cent, while Barratt Developments was one per cent higher.
Tesco was one of the biggest FTSE 100 risers, with shares up 1.7 per cent. Its first-half figures showed that earnings fell. But the supermarket said it expects profit to be similar to last year.
Read more: ECB’s Christine Lagarde: Coronavirus cases putting recovery at risk
Internationally focused stocks fell as investors fretted about a lack of stimulus from the US, the world’s biggest economy.
Jet-engine maker Rolls Royce dropped 1.4 per cent. Shell B shares fell 1.5 per cent and Burberry was one per cent lower.


cityam--2020-10-08--London firms fear losing top talent over coronavirus salary cuts

The vast majority of London firms are concerned about retaining their top talent as the pandemic forces many employees to take salary cuts .
As the pandemic continues to weigh on business activity , over four in five London-based businesses are concerned about losing their top employees , according to new research by recruiter Robert Half .
Of the 1,500 executives surveyed , 42 per cent cited salary reductions and the inability to increase wages as the key reason , higher than the national average of 36 per cent .
Despite ongoing pandemic-related uncertainty , the majority of companies have @ @ @ @ @ @ @ thus far in a bid to retain the top talent .
Robert Half ’ s managing director Matt Weston said : “ Professionals with in-demand skills know they still have options , and employers need to offer competitive salaries and benefits to retain key personnel , as well as to attract and secure top candidates for the remainder of 2020 – and beyond.
” But the recruiter ’ s research shows over two thirds of firms are still offering salaries that meet or exceed the levels seen before the coronavirus outbreak .
And @ @ @ @ @ @ @ salaries had held steady , while 23 per cent noted an increase in base compensation .
However a joint KPMG and RECS survey , also published today , indicates that this trend is unlikely to continue as rising candidate numbers , paired with subdued demand for workers and greater pressure on budgets have contribute to a reduction in pay .
The survey shows that while there was a slight improvement in recruitment activity last month , redundancies have driven a further rapid rise in candidate numbers .
This will only be exacerbated by @ @ @ @ @ @ @ s job retention scheme at the end of this month .
Read more : Rishi Sunak set to pump billions into economy to stave off unemployment Despite the doom and gloom , KPMG ’ s survey reveals that September saw the first increase in overall vacancies since February , albeit marginally .
This was driven by an increase in temporary vacancies across the private sector , while permanent roles continued to decline .
James Stewart , vice chair at KPMG said : “ With increasing unease over what will happen in the coming @ @ @ @ @ @ @ with the end of the furlough scheme in sight , the uncertainty for UK business is not going to dissipate anytime soon .
”

London firms fear losing top talent over coronavirus salary cuts
The vast majority of London firms are concerned about retaining their top talent as the pandemic forces many employees to take salary cuts.
As the pandemic continues to weigh on business activity, over four in five London-based businesses are concerned about losing their top employees, according to new research by recruiter Robert Half.
Of the 1,500 executives surveyed, 42 per cent cited salary reductions and the inability to increase wages as the key reason, higher than the national average of 36 per cent.
Despite ongoing pandemic-related uncertainty, the majority of companies have continued to compensate employees at pre-pandemic levels thus far in a bid to retain the top talent.
Robert Half’s managing director Matt Weston said: “Professionals with in-demand skills know they still have options, and employers need to offer competitive salaries and benefits to retain key personnel, as well as to attract and secure top candidates for the remainder of 2020 – and beyond.”
But the recruiter’s research shows over two thirds of firms are still offering salaries that meet or exceed the levels seen before the coronavirus outbreak.
And almost half of all senior managers said salaries had held steady, while 23 per cent noted an increase in base compensation.
However a joint KPMG and RECS survey, also published today, indicates that this trend is unlikely to continue as rising candidate numbers, paired with subdued demand for workers and greater pressure on budgets have contribute to a reduction in pay.
The survey shows that while there was a slight improvement in recruitment activity last month, redundancies have driven a further rapid rise in candidate numbers.
This will only be exacerbated by the looming end to the government’s job retention scheme at the end of this month.
Despite the doom and gloom, KPMG’s survey reveals that September saw the first increase in overall vacancies since February, albeit marginally. This was driven by an increase in temporary vacancies across the private sector, while permanent roles continued to decline.
James Stewart, vice chair at KPMG said: “With increasing unease over what will happen in the coming months with the pandemic, Brexit and with the end of the furlough scheme in sight, the uncertainty for UK business is not going to dissipate anytime soon.”


cityam--2020-10-07--UK businesses plan to cut jobs and investment, survey shows

UK businesses expect to cut staff levels and investment over the next year , according to a new survey , with the outlook “ stuck in the doldrums ” .
The Institute of Directors ’ ( IoD ) survey showed that bosses ’ optimism about the economy plateaued in September , having risen since the coronavirus-induced lockdowns of the spring .
Read more : UK GDP forecast to shrink by around 10 per cent in 2020 The UK economy shrunk by a record 19.8 per cent in the second quarter as normal life ground to a halt in April and @ @ @ @ @ @ @ since then , rising coronavirus cases and new restrictions threaten the rebound .
A 10pm curfew for pubs and restaurants and advice to work from home have hit the hospitality and leisure sectors .
Local lockdowns are also causing businesses and workers more pain .
The employment expectations of firms for the year ahead fell in September from minus six to minus 11 on the IoD ’ s gauge .
Investment expectations also slipped .
“ The overall business outlook appears to be stuck in the doldrums , ” said Tej Parikh , @ @ @ @ @ @ @ The current restrictions put a lid on demand for a number of sectors , ” he said .
“ But local lockdowns and the prospect of stricter measures down the road are putting even more businesses in a bind .
“ It ’ s crucial that the test and trace system can start firing on all cylinders to ease some fears .
Ongoing support for firms ’ cashflow will also be crucial.
” A separate survey from KPMG and recruitment group the REC showed people were losing their jobs “ rapidly ” in @ @ @ @ @ @ @ in workers looking for new posts .
Chancellor Rishi Sunak last month unveiled new measures to support the economy .
His new job support scheme is far less generous than the current furlough scheme , however , which has supported around 10m jobs and ends this month .
Read more : Rishi Sunak signals that tax hikes will be delayed for some time Despite this , The IoD said that company directors ’ confidence in the wider economy continued to gradually rise in September .
Yet it remained in negative territory .
Aside @ @ @ @ @ @ @ was Brexit and the UK ’ s future trading relationship with the EU .
This was followed by broadband problems and skills gaps , which the IoD said was “ suggestive of the impact of remote working ” .

UK businesses plan to cut jobs and investment, survey shows
UK businesses expect to cut staff levels and investment over the next year, according to a new survey, with the outlook “stuck in the doldrums”.
The Institute of Directors’ (IoD) survey showed that bosses’ optimism about the economy plateaued in September, having risen since the coronavirus-induced lockdowns of the spring.
The UK economy shrunk by a record 19.8 per cent in the second quarter as normal life ground to a halt in April and May. Although growth has been strong since then, rising coronavirus cases and new restrictions threaten the rebound.
A 10pm curfew for pubs and restaurants and advice to work from home have hit the hospitality and leisure sectors. Local lockdowns are also causing businesses and workers more pain.
The employment expectations of firms for the year ahead fell in September from minus six to minus 11 on the IoD’s gauge. Investment expectations also slipped.
“The overall business outlook appears to be stuck in the doldrums,” said Tej Parikh, chief economist at the IoD.
“The current restrictions put a lid on demand for a number of sectors,” he said. “But local lockdowns and the prospect of stricter measures down the road are putting even more businesses in a bind.
“It’s crucial that the test and trace system can start firing on all cylinders to ease some fears. Ongoing support for firms’ cashflow will also be crucial.”
UK businesses also concerned about Brexit
A separate survey from KPMG and recruitment group the REC showed people were losing their jobs “rapidly” in September. This caused a sharp increase in workers looking for new posts.
Chancellor Rishi Sunak last month unveiled new measures to support the economy. His new job support scheme is far less generous than the current furlough scheme, however, which has supported around 10m jobs and ends this month.
Despite this, The IoD said that company directors’ confidence in the wider economy continued to gradually rise in September. Yet it remained in negative territory.
Aside from coronavirus, bosses’ top concern was Brexit and the UK’s future trading relationship with the EU. This was followed by broadband problems and skills gaps, which the IoD said was “suggestive of the impact of remote working”.


cityam--2020-10-07--Government to crack down on pre-pack administration conflicts

Pre-pack administrations involving people connected to the insolvent company are set to come under greater scrutiny in a bid to make the process more transparent .
Pre-pack sales where connected parties , such as the insolvent company ’ s shareholders or directors , are involved in the process will be required by law to undergo independent scrutiny , the government announced today .
Pre-pack sales – an insolvency procedure in which the sale of all or part of a company is agreed before it enters administration – are considered a valuable tool for rescuing insolvent firms , however concerns have @ @ @ @ @ @ @ always in the best interests of the insolvent company ’ s creditors .
“ Pre-pack sales play an important role in rescuing viable businesses , while protecting jobs and supporting our economy , ” said Lord Callanan , minister for corporate responsibility .
“ As we continue to tackle Covid-19 , it is more important now than ever that people have confidence in the insolvency process , ” he continued .
“ This new law will ensure all sales to connected parties are properly scrutinized — protecting the interests of creditors and the @ @ @ @ @ @ @ distressed company , ” Lord Callanan said .
The government has not yet announced how mandatory scrutiny on the deals will be enforced .
Restructuring firms are expecting a wave of insolvencies as government schemes to support jobs and businesses begin to come to an end , or are replaced with less generous measures .
The hospitality industry has been hit especially hard by Covid-19 , with many pubs , bars and restaurants struggling to stay afloat following the introduction of a 10pm curfew on hospitality venues .
A survey released earlier this @ @ @ @ @ @ @ hospitality and leisure businesses based in London are considering restructuring or launching insolvency proceedings as a result of the pandemic .
Read more : Cote Restaurants bought out of administration by Partners Group British Property Federation director of finance policy Ion Fletcher said his organisation supported the government ’ s plans .
“ This will provide much-needed transparency and provide reassurance that a sale has been completed in a fair manner .
”

Government to crack down on pre-pack administration conflicts
Consumers have shifted to online shopping while restrictions have been in place for physical stores
Pre-pack administrations involving people connected to the insolvent company are set to come under greater scrutiny in a bid to make the process more transparent.
Pre-pack sales where connected parties, such as the insolvent company’s shareholders or directors, are involved in the process will be required by law to undergo independent scrutiny, the government announced today.
Pre-pack sales – an insolvency procedure in which the sale of all or part of a company is agreed before it enters administration – are considered a valuable tool for rescuing insolvent firms, however concerns have been raised that the deals are not always in the best interests of the insolvent company’s creditors.
“Pre-pack sales play an important role in rescuing viable businesses, while protecting jobs and supporting our economy,” said Lord Callanan, minister for corporate responsibility.
“As we continue to tackle Covid-19, it is more important now than ever that people have confidence in the insolvency process,” he continued.
“This new law will ensure all sales to connected parties are properly scrutinized — protecting the interests of creditors and the general public, as well as the distressed company,” Lord Callanan said.
The government has not yet announced how mandatory scrutiny on the deals will be enforced.
Restructuring firms are expecting a wave of insolvencies as government schemes to support jobs and businesses begin to come to an end, or are replaced with less generous measures.
The hospitality industry has been hit especially hard by Covid-19, with many pubs, bars and restaurants struggling to stay afloat following the introduction of a 10pm curfew on hospitality venues.
A survey released earlier this week showed that almost three quarters of hospitality and leisure businesses based in London are considering restructuring or launching insolvency proceedings as a result of the pandemic.
British Property Federation director of finance policy Ion Fletcher said his organisation supported the government’s plans.
“This will provide much-needed transparency and provide reassurance that a sale has been completed in a fair manner.”


cityam--2020-10-07--Optimism rises among financial services firms as business volumes stabilise

Optimism within the financial services sector increased for the first time in three quarters as business volumes showed signs of stabilising following the initial shock of the coronavirus crisis , a new survey showed .
Sentiment among finance firms rose nine per cent in the three months to the end of September , according to the Confederation of British Industry ( CBI ) and PwC ’ s latest industry survey .
Read more : Banking sector warns against irresponsible lending after PM ’ s low deposit mortgage pledge Business volumes were largely unchanged in the period , rising one per @ @ @ @ @ @ @ drop in the previous quarter .
While the majority of sub-sectors reported a growth in volumes , this was offset by declines in general and life insurance .
“ While it is reassuring to see business volumes begin to stabilise in a sector so vital for the UK ’ s recovery , financial services isn ’ t out of the woods just yet , ” said CBI chief economist Rain Newton-Smith .
Employment within the financial services sector continued to fall in the quarter to September , the survey showed , albeit at @ @ @ @ @ @ @ per cent during the period covered by the survey , compared to a 37 per cent decline in the previous three months .
Firms are planning to cut headcounts once again in the next quarter , the report said , but the rate of cuts is expected to slow once again to a 17 per cent drop .
“ Plans to cut jobs and investment point to a period of adjustment as firms come to terms with the new normal brought about by the pandemic , ” said Newton-Smith .
“ Covid also @ @ @ @ @ @ @ of business models , driving disruption and new ways of working , ” she continued .
As well as the coronavirus pandemic , financial services firms cited macroeconomic developments as the biggest sources of disruption to their businesses .
Structural challenges such as regulation , changing customer behaviours , and the acceleration of digital technology were also cited as sources of disruption by over half of the survey ’ s 133 respondents .
Read more : Banking industry group UK Finance names David Postings as new boss Andrew Kail , PwC ’ s @ @ @ @ @ @ @ need to “ reconfigure their strategy and focus on changing customer needs ” .
“ Digital transformation and the talent to support this are critical , ” he continued .
“ Some organisations have already embraced this while others need to find ways to speed up their transformation .
”

Optimism rises among financial services firms as business volumes stabilise
London is the toughest place to be an entrepreneur in the UK, according to a new British Business Bank report.
Optimism within the financial services sector increased for the first time in three quarters as business volumes showed signs of stabilising following the initial shock of the coronavirus crisis, a new survey showed.
Sentiment among finance firms rose nine per cent in the three months to the end of September, according to the Confederation of British Industry (CBI) and PwC’s latest industry survey.
Business volumes were largely unchanged in the period, rising one per cent following a massive 52 per cent drop in the previous quarter. While the majority of sub-sectors reported a growth in volumes, this was offset by declines in general and life insurance.
“While it is reassuring to see business volumes begin to stabilise in a sector so vital for the UK’s recovery, financial services isn’t out of the woods just yet,” said CBI chief economist Rain Newton-Smith.
Employment within the financial services sector continued to fall in the quarter to September, the survey showed, albeit at a slower pace. Employment fell 21 per cent during the period covered by the survey, compared to a 37 per cent decline in the previous three months.
Firms are planning to cut headcounts once again in the next quarter, the report said, but the rate of cuts is expected to slow once again to a 17 per cent drop.
“Plans to cut jobs and investment point to a period of adjustment as firms come to terms with the new normal brought about by the pandemic,” said Newton-Smith.
“Covid also appears to be driving a longer-term appraisal of business models, driving disruption and new ways of working,” she continued.
As well as the coronavirus pandemic, financial services firms cited macroeconomic developments as the biggest sources of disruption to their businesses.
Structural challenges such as regulation, changing customer behaviours, and the acceleration of digital technology were also cited as sources of disruption by over half of the survey’s 133 respondents.
Andrew Kail, PwC’s head of financial services, said firms need to “reconfigure their strategy and focus on changing customer needs”.
“Digital transformation and the talent to support this are critical,” he continued. “Some organisations have already embraced this while others need to find ways to speed up their transformation.”


cityam--2020-10-07--Climate-related risk becomes leading concern for business leaders

Global business leaders are becoming increasingly concerned about the risk climate change poses to business .
The World Economic Forum ’ s risk report shows that the top risks remain related to economics , with unemployment the main concern for business executives .
Read more : BoE : Considering the climate would have held back stimulus Previously the risk of infectious diseases had been underestimated but have inevitably jumped 28 spots and it is now the second most recurring risk .
But extreme weather events , such as the Australian and Californian bushfires at the start of the year , @ @ @ @ @ @ @ have catapulted climate concerns up the list .
The World Economic Forum ’ s report surveyed 12,000 global business leaders and pulled 30 risks , including terrorist attacks , extreme weather events and state crises .
Even as businesses scrambled to insulate themselves from the pandemic as best they could , a number of firms committed to new climate initiatives indicating how seriously it is now being taken .
In January Larry Fink , the chief executive of Blackrock , announced the asset manager would place environmental sustainability at the core of its @ @ @ @ @ @ @ exposure to fossil fuel companies following demands by environmental campaigners .
And earlier this year one of the world ’ s biggest oil majors BP set a net zero carbon target for 2050 .
In the UK , business leaders consider climate change a bigger risk than unemployment , which does not feature in the top five risks , despite stark warnings from economists .
Instead , 30 per cent business leaders consider extreme weather events a risk while just over a quarter – 27.6 per cent – fear a failure of climate @ @ @ @ @ @ @ terrorist attacks and failure of national governance out of the top risks for business UK leaders .
Peter Giger , chief risk officer of Zurich Insurance said : “ Covid-19 is distracting us from certain long-term risks that will be around long after the current crisis is resolved .
But the pandemic is also having the positive effect of leading many to reassess priorities.
” “ This , I hope , will ensure that businesses advance their risk resilience strategies and result in decisive and impactful action to combat existential risks like climate @ @ @

Climate-related risk becomes leading concern for business leaders
(Photo by ISABEL INFANTES / AFP) (Photo by ISABEL INFANTES/AFP via Getty Images)
Global business leaders are becoming increasingly concerned about the risk climate change poses to business.
The World Economic Forum’s risk report shows that the top risks remain related to economics, with unemployment the main concern for business executives.
Previously the risk of infectious diseases had been underestimated but have inevitably jumped 28 spots and it is now the second most recurring risk.
But extreme weather events, such as the Australian and Californian bushfires at the start of the year, alongside mounting evidence of global warming, have catapulted climate concerns up the list.
The World Economic Forum’s report surveyed 12,000 global business leaders and pulled 30 risks, including terrorist attacks, extreme weather events and state crises.
Even as businesses scrambled to insulate themselves from the pandemic as best they could, a number of firms committed to new climate initiatives indicating how seriously it is now being taken.
In January Larry Fink, the chief executive of Blackrock, announced the asset manager would place environmental sustainability at the core of its strategy.
It pledged to lower its exposure to fossil fuel companies following demands by environmental campaigners.
And earlier this year one of the world’s biggest oil majors BP set a net zero carbon target for 2050.
In the UK, business leaders consider climate change a bigger risk than unemployment, which does not feature in the top five risks, despite stark warnings from economists.
Instead, 30 per cent business leaders consider extreme weather events a risk while just over a quarter – 27.6 per cent – fear a failure of climate change adaptation.
Climate concerns have pushed terrorist attacks and failure of national governance out of the top risks for business UK leaders.
Peter Giger, chief risk officer of Zurich Insurance said: “Covid-19 is distracting us from certain long-term risks that will be around long after the current crisis is resolved. But the pandemic is also having the positive effect of leading many to reassess priorities.”
“This, I hope, will ensure that businesses advance their risk resilience strategies and result in decisive and impactful action to combat existential risks like climate change.”


cityam--2020-10-07--UK housing market remains buoyant but braces for downturn

The UK housing market remained buoyant last month as the post-lockdown bounce continued , however experts have warned that sales are expected to weaken in the year ahead as unemployment rises .
The latest survey by the Royal Institution of Chartered Surveyors ( Rics ) showed that buyer enquiries , agreed sales and new listings were strong in September .
Research published this morning showed that 52 per cent of survey participants reported an increase in new buyer enquiries , marking the fourth consecutive month of increasing demand .
New instructions also rose for the fourth month in a row @ @ @ @ @ @ @ rising supply since 2013 .
55 per cent of those surveyed said there had been an increase in agreed sales across the UK during September , driven by strong growth in East Anglia , the South West and Yorkshire & Humber .
Read more : UK housing market surges in busiest month in 10 years The upturn in sales is expected to continue over the next three months , but over the long term experts expect growing job losses to slow the momentum .
Meanwhile house prices have continued to grow across the @ @ @ @ @ @ @ modest in London compared to other regions of the UK .
Rics chief economist Simon Rubinsohn said : “ The latest Rics survey provides further evidence of the buoyancy of the housing market with more buyers and sellers helping to boost activity across the country .
“ However there is increasing concern that the combination of significant job losses over the coming month allied to the scaling back of policy initiatives in early 2021 will have an adverse impact on transaction levels .
Read more : UK mortgage lending rises in July as @ @ @ @ @ @ @ there is little sense this softer sales picture will be accompanied by very much easing in the momentum around prices and rents adding to the ongoing challenge around affordability ” .
He added : “ Recent government announcements around planning reform have a role to play in addressing this issue as does the focus on low cost home ownership but it is critical that the focus remains squarely on delivering more homes across all tenues to ensure that access to housing is improved and that the fears around a sharp rise in homelssness @ @ @ @

UK housing market remains buoyant but braces for downturn
The UK housing market remained buoyant last month as the post-lockdown bounce continued, however experts have warned that sales are expected to weaken in the year ahead as unemployment rises.
The latest survey by the Royal Institution of Chartered Surveyors (Rics) showed that buyer enquiries, agreed sales and new listings were strong in September.
Research published this morning showed that 52 per cent of survey participants reported an increase in new buyer enquiries, marking the fourth consecutive month of increasing demand.
New instructions also rose for the fourth month in a row, which is the longest stretch of rising supply since 2013.
55 per cent of those surveyed said there had been an increase in agreed sales across the UK during September, driven by strong growth in East Anglia, the South West and Yorkshire & Humber.
The upturn in sales is expected to continue over the next three months, but over the long term experts expect growing job losses to slow the momentum.
Meanwhile house prices have continued to grow across the country, although the rise was more modest in London compared to other regions of the UK.
Rics chief economist Simon Rubinsohn said: “The latest Rics survey provides further evidence of the buoyancy of the housing market with more buyers and sellers helping to boost activity across the country.
“However there is increasing concern that the combination of significant job losses over the coming month allied to the scaling back of policy initiatives in early 2021 will have an adverse impact on transaction levels.
“Meanwhile there is little sense this softer sales picture will be accompanied by very much easing in the momentum around prices and rents adding to the ongoing challenge around affordability”.
He added: “Recent government announcements around planning reform have a role to play in addressing this issue as does the focus on low cost home ownership but it is critical that the focus remains squarely on delivering more homes across all tenues to ensure that access to housing is improved and that the fears around a sharp rise in homelssness proves unwarranted.”


cityam--2020-10-07--Ecommerce platform Clearbanc injects £500m into British startups

Ecommerce investor Clearbanc has announced its plans to invest £500m into British SMEs over the next year as part of its UK launch .
The alternative capital platform , founded by Canadian Dragons ’ Den star Michele Romanow , will use its AI platform to invest in British online startups to help with future growth .
Read more : New £90m fund chases proptech startups across UK and Europe Clearbanc has already invested £30m in British startups during its beta stage , and more than $ 1bn into over 3,000 startups globally .
Ecommerce sales have skyrocketed during the pandemic @ @ @ @ @ @ @ at home and the closure of non-essential retailers for two months from March .
Experts have said they expect the change in shopping behaviour to become permanent , with online retail sales up 46.8 per cent in September compared to February .
This shift to online during the pandemic is expected to bring in an additional £5.3bn , bringing the UK ecommerce market to an estimated £78.9bn .
Clearbanc ’ s offering gives UK startups an alternative to venture capital in the form of non-dilutive revenue-share agreements .
Users connect their revenue and @ @ @ @ @ @ @ APIs which shows founders their investment offers .
Offers can range between £10,000 and £10m with a 6-12 per cent flat fee .
Clearbanc claims the algorithm removes bias from the funding process , which it says has led to investment in eight times more female founders than traditional VC firms .
It comes at a critical time for British SMEs who will soon face the end of the government ’ s support programme .
The Future Fund and CBILS… Beyond the injection of capital , Clearbanc says the launch means UK startups @ @ @ @ @ @ @ platform to receive a “ free weekly valuation of their business ” as well as meeting prospective investors .
Read more : London ’ s startup scene is under threat – here ’ s how we can safeguard our entrepreneurs Co-founder and president Michele Romanow told City A.M. : “ Ecommerce founders have a huge opportunity to capitalise on the consumer shift to online , but companies need the funding and data in order to reach new audiences both at home and globally.
” “ That ’ s why we ’ re investing @ @ @ @ @ @ @ UK companies and empower them with the capital and resources they need to help them grow , and without having to give up equity .
”

Ecommerce platform Clearbanc injects £500m into British startups
Clearbanc president and co-founder Michele Romanow
Ecommerce investor Clearbanc has announced its plans to invest £500m into British SMEs over the next year as part of its UK launch.
The alternative capital platform, founded by Canadian Dragons’ Den star Michele Romanow, will use its AI platform to invest in British online startups to help with future growth.
Clearbanc has already invested £30m in British startups during its beta stage, and more than $1bn into over 3,000 startups globally.
Ecommerce sales have skyrocketed during the pandemic due to the government order to stay at home and the closure of non-essential retailers for two months from March.
Experts have said they expect the change in shopping behaviour to become permanent, with online retail sales up 46.8 per cent in September compared to February.
This shift to online during the pandemic is expected to bring in an additional £5.3bn, bringing the UK ecommerce market to an estimated £78.9bn.
Clearbanc’s offering gives UK startups an alternative to venture capital in the form of non-dilutive revenue-share agreements. Users connect their revenue and marketing accounts with the platform’s APIs which shows founders their investment offers.
Offers can range between £10,000 and £10m with a 6-12 per cent flat fee. Clearbanc claims the algorithm removes bias from the funding process, which it says has led to investment in eight times more female founders than traditional VC firms.
It comes at a critical time for British SMEs who will soon face the end of the government’s support programme. The Future Fund and CBILS…
Beyond the injection of capital, Clearbanc says the launch means UK startups will be able to connect to the platform to receive a “free weekly valuation of their business” as well as meeting prospective investors.
Co-founder and president Michele Romanow told City A.M.: “Ecommerce founders have a huge opportunity to capitalise on the consumer shift to online, but companies need the funding and data in order to reach new audiences both at home and globally.”
“That’s why we’re investing £500m over the next year to support UK companies and empower them with the capital and resources they need to help them grow, and without having to give up equity.”


cityam--2020-10-07--UK must not ‘surrender national security’ for 5G rollout, MPs warn

The UK must not surrender its national security by relying on Chinese companies to speed up the rollout of 5G mobile networks , senior MPs have warned .
In a report published today the defence committee said it was “ unacceptable ” that commercial concerns had been put ahead of national security considerations and urged the government to tighten its policies on cybersecurity .
Read more : 5G rollout across Britain set to create 5,000 jobs The MPs warned that the rollout of 5G would open the UK up to increased security risks such as espionage , sabotage or system @ @ @ @ @ @ @ the risk of relying on Chinese products to develop the next-generation mobile network .
“ The west must urgently unite to advance a counterweight to China ’ s tech dominance , ” said Tobias Ellwood , chair of the defence committee .
“ As every aspect of our lives becomes increasingly reliant on access to data movement we must develop a feasible , practical and cost-effective alternative to the cheap , high-tech solutions which can be preyed upon and which come stooped with conditions which ensnare a state into long-term allegiance to China.
@ @ @ @ @ @ @ not surrender our national security for the sake of short-term technological development .
This is a false and wholly unnecessary trade off.
” The committee welcomed the government ’ s decision to ban controversial Chinese tech firm Huawei from the UK ’ s 5G networks , but called on ministers to go further .
The report backed the creation of the Telecoms Security Bill , which would allow the government to force operators to take action in the interests of national security , and said it should be introduced before the end of @ @ @ @ @ @ @ proposals for a new alliance of the world ’ s 10 largest democracies — dubbed D10 — to find alternatives to Chinese technology .
Read more : BT taps Nokia to replace Huawei in 5G networks Ellwood said the alliance would provide a “ viable alternative foundation to the technological might of authoritarian states , whose true motives are , at times , murky ” .
“ Democracies the world over are waking up to the dangers of new technology from overseas that could inadvertently provide hostile states access to sensitive information through @ @ @ @ @ @ @

Huawei: ‘Clear evidence’ of collusion with Beijing, MPs warn
There is “clear evidence of collusion” between Chinese tech giant Huawei and authorities in Beijing, top MPs have warned.
In a report published today parliament’s defence committee claimed Huawei was “closely linked” to the Chinese state and the Communist Party.
It also cited concerns about Huawei’s receipt of state subsidies and Chinese intelligence laws that force private companies to hand over information to authorities.
The committee’s findings were based on testimony from academics and cybersecurity experts, but did not include any new evidence.
A Huawei spokesperson said: “This report lacks credibility, as it is built on opinion rather than fact.
“We’re sure people will see through these accusations of collusion and remember instead what Huawei has delivered for Britain over the past 20 years.”
But the conclusions will mark a further blow to Huawei, which has been banned from building the UK’s 5G networks amid concerns about its links to Beijing.
The MPs welcomed the decision to exclude the Chinese telecoms group, but said the government should consider moving its deadline for the removal of Huawei equipment forward from 2027 to 2025.
“The west must urgently unite to advance a counterweight to China’s tech dominance,” said committee chair Tobias Ellwood.
“As every aspect of our lives becomes increasingly reliant on access to data movement we must develop a feasible, practical and cost-effective alternative to the cheap, high-tech solutions which can be preyed upon and which come stooped with conditions which ensnare a state into long-term allegiance to China.”
He added: “We must not surrender our national security for the sake of short-term technological development. This is a false and wholly unnecessary trade off.”
Murky motives
In its report the defence committee said it was “unacceptable” that commercial concerns had been put ahead of national security considerations and urged the government to tighten its policies on cybersecurity.
It backed the creation of the Telecoms Security Bill, which would allow the government to force operators to take action in the interests of national security, and said it should be introduced before the end of the year.
The MPs also supported proposals for a new alliance of the world’s 10 largest democracies — dubbed D10 — to find alternatives to Chinese technology.
Ellwood said the alliance would provide a “viable alternative foundation to the technological might of authoritarian states, whose true motives are, at times, murky”.
“Democracies the world over are waking up to the dangers of new technology from overseas that could inadvertently provide hostile states access to sensitive information through the backdoor,” he added.
Telecoms tensions
The debate over Huawei, which has lasted several years, has sparked a major row between the government and the telecoms industry.
The UK’s major network operators have warned that ripping out Huawei equipment will cost huge sums of money and slow down the country’s rollout of 5G.
A report published last month by the Centre for Policy Studies found delays to the rollout of 5G could cost the UK tens of billions of pounds in lost output.
The defence committee acknowledged that removing Huawei equipment sooner than 2027 could result in signal blackouts, delay the rollout and create huge costs to both operators and the economy.
But it suggested the government could compensate operators if the 2027 deadline had to be moved forward.
In addition, the report warned that the UK vendor market for 5G kit was not diverse enough.
It encourage the government to work with network operators to bring in new companies such as Samsung or NEC.


cityam--2020-10-07--The City View: Alastair Stewart on the future of broadcast media, from the BBC to GB News

In the first episode of the City View ’ s new weekly format , Christian May talks to veteran broadcaster @ @ @ @ @ a wave of disruption hitting the broadcast media .
The BBC has a new Director @ @ @ @ @ presenter is launching a rival news channel .
What will this do to the media @ @ @ @ @ players respond ?
Alastair also talks about his belief in the value of impartiality ; @ @ @ @ @ the digital arms race ; why he can ’ t stand opinionated journalists ; what @ @ @ @ @ and why the advice he gives young reporters hasn ’ t changed in 40 years @ @ @ @ @ investor accounts lose money when spread betting and/or trading CFDs with this provider .
You @ @ @ @ @ afford to take the high risk of losing your money .

The City View: Alastair Stewart on the future of broadcast media, from the BBC to GB News
In the first episode of the City View’s new weekly format, Christian May talks to veteran broadcaster and journalist Alastair Stewart about a wave of disruption hitting the broadcast media.
Subscribe to The City View Podcast: Apple / Google / Spotify / RSS
The BBC has a new Director General while its former star presenter is launching a rival news channel. What will this do to the media landscape and how should established players respond?
Alastair also talks about his belief in the value of impartiality; where ITV went wrong in the digital arms race; why he can’t stand opinionated journalists; what real diversity looks like; and why the advice he gives young reporters hasn’t changed in 40 years.
This podcast is sponsored by CMC Markets.
79% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.


cityam--2020-10-07--BDO may be forced to bail out Spanish sister firm after €126.8m penalty

Accountancy firm BDO may be forced to bail out its Spanish sister company which has been slapped with a €126.8m ( £115m ) over its role in an accounting scandal .
BDO was among those convicted by Spain ’ s highest criminal court for its involvement in falsifying the accounts of fishing firm Pescanova between 2010 and 2012 .
The Audiencia Nacional ruled that BDO , Pescanova and six former directors should reimburse investors for their losses .
The penalty , with compensation , amounts to €126.8m .
The court found BDO guilty of falsifying financial and economic information and @ @ @ @ @ @ @ faked accounts to hide its debts .
BDO told the Spanish news agency Europa Press it would appeal the decision saying it had “ been deceived and were victims of the schemes and frauds organised by Pescanova management.
” “ The sentence is not yet set and we would like to confirm that we have already begun proceedings to appeal it as soon as possible ” , the firm added .
The firm ’ s Spanish sister company is a separate entity but a huge penalty could force a bailout by BDO ’ @ @ @ @ @ @ @ office .
BDO UK declined to comment .
BDO Global did not respond to a request for comment .

BDO may be forced to bail out Spanish sister firm after €126.8m penalty
BDO is facing questions from an activist investor over its audit of Home REIT
Accountancy firm BDO may be forced to bail out its Spanish sister company which has been slapped with a €126.8m (£115m) over its role in an accounting scandal.
BDO was among those convicted by Spain’s highest criminal court for its involvement in falsifying the accounts of fishing firm Pescanova between 2010 and 2012.
The Audiencia Nacional ruled that BDO, Pescanova and six former directors should reimburse investors for their losses. The penalty, with compensation, amounts to €126.8m.
The court found BDO guilty of falsifying financial and economic information and concluded it knew the fishing firm had faked accounts to hide its debts.
BDO told the Spanish news agency Europa Press it would appeal the decision saying it had “been deceived and were victims of the schemes and frauds organised by Pescanova management.”
“The sentence is not yet set and we would like to confirm that we have already begun proceedings to appeal it as soon as possible”, the firm added.
The firm’s Spanish sister company is a separate entity but a huge penalty could force a bailout by BDO’s other operations, including its UK office.
BDO UK declined to comment. BDO Global did not respond to a request for comment.


cityam--2020-10-08--London Southend boss: Airport testing NOW is the only way to make passengers feel safe and get UK fl

The chief executive of London Southend airport has said that the country ’ s airlines will only begin to recover when passengers are confident enough to fly again – and that means the government must impose a coronavirus testing regime now .
Aviation leaders had hoped that ministers would announce plans to put in place an airport testing system this week , but were let down yesterday as officials instead launched a new review of the process .
Read more : UK examining how to reduce travel quarantine period using tests There has been no airport testing for Covid-19 in @ @ @ @ @ @ @ Southend ’ s Glyn Jones slammed the decision as “ deeply disappointing ” , saying that the government did not “ grasp the seriousness of the situation for both the aviation industry and the supply chain it supports ” .
Speaking to City A.M. , he said that the single best thing that the government could do to help the embattled sector was to give customers assurance that they could travel without needing to quarantine .
“ For the industry , the key question is confidence among consumers and among potential travellers ” @ @ @ @ @ @ @ been completely undermined by the continuous tinkering with the quarantine arrangements.
” Just seven destinations in mainland Europe have stayed off the government ’ s red list of countries from which passengers must quarantine on return .
But , he said , any testing regime that the government puts in place must fulfil three criteria .
“ In an ideal world , we need three things .
The first is that the regime is completely reliable – as close to 100 per cent accurate as possible .
If it isn ’ t , @ @ @ @ @ @ @ not be what we need it to be .
“ Second , it needs to be very fast – ideally , if it were being run at an airport in real time , you would know the results of the test in 30 minutes .
Because if you don ’ t , you just can ’ t fly .
Third , these tests need to be properly affordable and reasonable in price.
” Some private Covid tests cost over £100 , he said , often at least twice as much as a standard @ @ @ @ @ @ @ or Easyjet .
“ If the tests aren ’ t affordable , there is a risk that air travel will de-democratised ” , he added .
Before the Open newsletter : Start your day with the City View podcast and key market data He also said that it was more important for any testing trial to be expanded to cover European destinations as quickly as possible .
The business travel-heavy London to New York route has been much cited as a potential trial for the system , but with most of the UK @ @ @ @ @ @ @ including Southend ) it would be “ unhelpful ” to put the route first .
As with many aviation players , Southend has been hammered by the pandemic , with passenger numbers crumbling in the profitable summer season .
The airport had been on track to achieve 3m passengers this year , but said it would be far lower as a result of the pandemic .
“ Over the summer , we expected 300,000 passengers a month , but we saw just handfuls instead ” , Jones said .
As a result of @ @ @ @ @ @ @ out of its base at the Essex airport , taking with it about half of the 2.1m passengers who passed through Southend last year .
Despite the blow , Jones said that there was a “ high degree of interest ” in the carrier ’ s routes , which focused on holiday destinations such as Spain and Greece .
The focus on short-haul leisure destinations is one of the reasons why Jones thinks that Southend will come out ahead of the rest of the market as it begins to recover .
The other @ @ @ @ @ @ @ accounts for 61 per cent of the airport ’ s passengers and remains an “ extremely resilient ” market , he said .
But , with the already traditionally loss-making winter season coming up , Jones admitted that the airport was bracing for a “ cold winter ” .
Unlike many airports , Southend has largely been able to avoid job cuts , and has thus far cut just 19 jobs .
Read more : Heathrow boss : PM told me airport testing will be in place ‘ in October ’ However , @ @ @ @ @ @ @ end and no government action on extending business rates relief to England ’ s airports – it is already in place in Scotland – Jones warned that further redundancies could not be ruled out .
“ We just have to be honest with people .
We ’ ve done everything we can to ease the hurt , but if we end up with a dreadful second wave we may have to make some more cuts .
”

London Southend boss: Airport testing NOW is the only way to make passengers feel safe and get UK flying again
London Southend chief exec Glyn Jones has called on the government to start paying for Covid tests for airline passengers.
The chief executive of London Southend airport has said that the country’s airlines will only begin to recover when passengers are confident enough to fly again – and that means the government must impose a coronavirus testing regime now.
Aviation leaders had hoped that ministers would announce plans to put in place an airport testing system this week, but were let down yesterday as officials instead launched a new review of the process.
There has been no airport testing for Covid-19 in UK airports since the pandemic began.
Southend’s Glyn Jones slammed the decision as “deeply disappointing”, saying that the government did not “grasp the seriousness of the situation for both the aviation industry and the supply chain it supports”.
Speaking to City A.M., he said that the single best thing that the government could do to help the embattled sector was to give customers assurance that they could travel without needing to quarantine.
“For the industry, the key question is confidence among consumers and among potential travellers”, he said. “This has been completely undermined by the continuous tinkering with the quarantine arrangements.”
Just seven destinations in mainland Europe have stayed off the government’s red list of countries from which passengers must quarantine on return.
London Southend was on track for a record 3m passengers in 2020 until the coronavirus pandemic struck.
But, he said, any testing regime that the government puts in place must fulfil three criteria.
“In an ideal world, we need three things. The first is that the regime is completely reliable – as close to 100 per cent accurate as possible. If it isn’t, people’s confidence in it will not be what we need it to be.
“Second, it needs to be very fast – ideally, if it were being run at an airport in real time, you would know the results of the test in 30 minutes. Because if you don’t, you just can’t fly. Third, these tests need to be properly affordable and reasonable in price.”
Some private Covid tests cost over £100, he said, often at least twice as much as a standard short-haul flight on a carrier like Ryanair or Easyjet.
“If the tests aren’t affordable, there is a risk that air travel will de-democratised”, he added.
Before the Open newsletter: Start your day with the City View podcast and key market data
He also said that it was more important for any testing trial to be expanded to cover European destinations as quickly as possible.
The business travel-heavy London to New York route has been much cited as a potential trial for the system, but with most of the UK’s airports prioritising leisure travel (including Southend) it would be “unhelpful” to put the route first.
‘Cold winter’ ahead but reasons for optimism remain
As with many aviation players, Southend has been hammered by the pandemic, with passenger numbers crumbling in the profitable summer season.
The airport had been on track to achieve 3m passengers this year, but said it would be far lower as a result of the pandemic.
“Over the summer, we expected 300,000 passengers a month, but we saw just handfuls instead”, Jones said.
As a result of the pandemic, Easyjet decided to pull out of its base at the Essex airport, taking with it about half of the 2.1m passengers who passed through Southend last year.
Despite the blow, Jones said that there was a “high degree of interest” in the carrier’s routes, which focused on holiday destinations such as Spain and Greece.
The focus on short-haul leisure destinations is one of the reasons why Jones thinks that Southend will come out ahead of the rest of the market as it begins to recover.
The other is the focus on London, which accounts for 61 per cent of the airport’s passengers and remains an “extremely resilient” market, he said.
But, with the already traditionally loss-making winter season coming up, Jones admitted that the airport was bracing for a “cold winter”.
Unlike many airports, Southend has largely been able to avoid job cuts, and has thus far cut just 19 jobs.
However, with the furlough scheme coming to an end and no government action on extending business rates relief to England’s airports – it is already in place in Scotland – Jones warned that further redundancies could not be ruled out.
“We just have to be honest with people. We’ve done everything we can to ease the hurt, but if we end up with a dreadful second wave we may have to make some more cuts.”


cityam--2020-10-08--Minister flags potential extension of England curfew to 11pm

A government minister has floated the idea of potentially extending England ’ s hospitality curfew to 11pm like in Northern Ireland .
London minister Paul Scully told a virtual event today that a curfew extension would be a lifeline to the hospitality sector , but that the government needed to examine how effective Northern Ireland ’ s 11pm lock out had been in curbing the spread of Covid .
Read more : Pubs and bars in row over late night levy as 10pm curfew sinks sales The new England curfew has hit the already ailing hospitality sector ’ s revenues @ @ @ @ @ @ @ for extra financial support on the weekend .
Pub chain Greene King announced yesterday that the curfew had forced it to shut 26 pubs , putting hundreds of jobs at risk .
There has also been disquiet about the curfew in parliament , with a growing group of Tory MPs ready to vote against the measure when it comes to a vote next week .
Scully today admitted that the curfew “ kills [ restaurants ’ ] second sittings and for pubs [ after 10pm ] is one of their high sales points @ @ @ @ @ @ @ keeping an eye on the situation in Northern Ireland , which has a last drinks at 10.30pm and lock out at 11pm policy .
“ In Northern Ireland they have a 10.30pm last orders and they stop serving at 11pm – something like that would benefit hospitality massively , because the economics are far better there , ” he said .
“ We ’ re not able to work out yet about the transmission rate in Northern Ireland – they ’ re a lot higher anyway – so we ’ ll see the @ @ @ @ @ @ @ Labour leader Sir Keir Starmer yesterday also urged Boris Johnson to provide scientific evidence that shows a curfew has any effect in stopping the virus .
Scenes emerged on social media last week of overflowing Tube stations and street parties shortly after 10pm , leading some to speculate the curfew could in fact help spread Covid .
Scully said evidence he had seen indicated that the virus was being spread in “ informal settings ” during the country ’ s second wave , meaning that hospitality venues were hot spots .
Emma McClarkin @ @ @ @ @ @ @ and Pubs Association , said when the curfew was announced two weeks ago that it would be “ devastating ” for the pub trade .
Read more : Greene King to close pubs as 10pm curfew cripples sales “ Pubs were struggling to break even before [ the curfew ] and these latest restrictions will push some to breaking point , ” she said .
“ Removing a key trading hour on top of fragile consumer confidence and the reduced capacity pubs already face will put thousands more pubs and jobs at risk @ @

Minister flags potential extension of England curfew to 11pm
England’s 10pm curfew is hitting the already ailing hospitality sector hard
A government minister has floated the idea of potentially extending England’s hospitality curfew to 11pm – the same as Northern Ireland.
London minister Paul Scully told a virtual event today that a curfew extension would be a lifeline to the hospitality sector, but that the government needed to examine how effective Northern Ireland’s 11pm lock out had been in curbing the spread of Covid.
The new England curfew has hit the already ailing hospitality sector’s revenues, with more than a thousands pubs asking Rishi Sunak for extra financial support this past weekend.
Pub chain Greene King announced yesterday that the curfew had forced it to shut 26 pubs, putting hundreds of jobs at risk.
There has also been disquiet about the curfew in parliament, with a growing group of Tory MPs ready to vote against the measure when it comes to a vote next week.
Scully today admitted that the curfew “kills [restaurants’] second sittings and for pubs [after 10pm] is one of their high sales points”.
He said the government was keeping an eye on the situation in Northern Ireland, which has a last drinks at 10.30pm and lock out at 11pm policy.
“In Northern Ireland they have a 10.30pm last orders and they stop serving at 11pm – something like that would benefit hospitality massively, because the economics are far better there,” he said.
“We’re not able to work out yet about the transmission rate in Northern Ireland – they’re a lot higher anyway – so we’ll see the trend over the next few days.”
Labour leader Sir Keir Starmer yesterday also urged Boris Johnson to provide scientific evidence that shows a curfew has any effect in stopping the virus.
Scenes emerged on social media last week of overflowing Tube stations and street parties shortly after 10pm, leading some to speculate the curfew could in fact help spread Covid.
Scully said evidence he had seen indicated that the virus was being spread in “informal settings” during the country’s second wave, meaning that hospitality venues were hot spots.
A Downing Street spokesperson also said today that a “significant proportion” of England’s Covid exposure comes from hospitality venues.
Emma McClarkin, chief executive of the British Beer and Pubs Association, said when the curfew was announced two weeks ago that it would be “devastating” for the pub trade.
“Pubs were struggling to break even before [the curfew] and these latest restrictions will push some to breaking point,” she said.
“Removing a key trading hour on top of fragile consumer confidence and the reduced capacity pubs already face will put thousands more pubs and jobs at risk.”


cityam--2020-10-08--Majority of UK businesses to scrap working from home post-pandemic

More than two-thirds of UK businesses plan to scrap working from home beyond the pandemic , the latest official figures showed , as the number of commuters continues to escalate despite government orders .
Figures released today by the Office for National Statistics ( ONS ) showed that 67 per cent of more than 24,500 British businesses surveyed said they do not intend to keep homeworking as a permanent business model in the future .
Read more : Microsoft boss warns against rapid transition to working from home Just 19 per cent said they intended to ditch office space and @ @ @ @ @ @ @ business model , while 15 per cent were not sure .
Businesses relying on physical labour across the hospitality , transport and construction sectors said they were least likely to introduce working from as an enduring option .
Meanwhile , around half of British companies in the arts sector and 60 per cent of admin firms said they would scrap the option , with one in 10 UK businesses saying it deteriorated communication between staff .
It comes as top industry figures have warned that working from home has caused a spike in @ @ @ @ @ @ @ .
A report released yesterday by US tech giant Oracle and HR firm Workplace Intelligence found that 2020 has been the most stressful year in history for the global workforce , with more than four-fifths of employees saying stress at work was affecting their home life .
Microsoft chief executive Satya Nadella earlier this week said workers around the world are currently missing out on “ all the connections we usually have ” in the office , and urged companies to adopt a “ grounded approach ” to flexible working in the future @ @ @ @ @ @ @ in the level of commuters over the past week , despite government orders not to return to the office .
The report said the UK saw a two per cent hike in the number of people commuting into work from 30 September to 4 October , suggesting the PM ’ s orders to “ work from home “ for at least six months ” have fallen on deaf ears .
City workers were among the most defiant , after separate data from Transport for London released yesterday showed the number of commuters in @ @ @ @ @ @ @ week following Johnson ’ s announcement on 22 September .
It comes despite major firms including Google , Natwest and Deutsche Bank telling staff not to return to the office until at least 2021 , while others look at making working from home a permanent option .
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Majority of UK businesses to scrap working from home post-pandemic
Researches swabbed high-contact areas on the transport network including stop buttons, hand rails and ticket barriers
More than two-thirds of UK businesses plan to scrap working from home beyond the pandemic, the latest official figures showed, as the number of commuters continues to escalate despite government orders.
Figures released today by the Office for National Statistics (ONS) showed that 67 per cent of more than 24,500 British businesses surveyed said they do not intend to keep homeworking as a permanent business model in the future.
Just 19 per cent said they intended to ditch office space and incorporate working from home into their permanent business model, while 15 per cent were not sure.
Businesses relying on physical labour across the hospitality, transport and construction sectors said they were least likely to introduce working from as an enduring option.
Meanwhile, around half of British companies in the arts sector and 60 per cent of admin firms said they would scrap the option, with one in 10 UK businesses saying it deteriorated communication between staff.
It comes as top industry figures have warned that working from home has caused a spike in stress, anxiety and burnout amongst employees.
A report released yesterday by US tech giant Oracle and HR firm Workplace Intelligence found that 2020 has been the most stressful year in history for the global workforce, with more than four-fifths of employees saying stress at work was affecting their home life.
Microsoft chief executive Satya Nadella earlier this week said workers around the world are currently missing out on “all the connections we usually have” in the office, and urged companies to adopt a “grounded approach” to flexible working in the future.
OK commuter
ONS data also showed a rise in the level of commuters over the past week, despite government orders not to return to the office.
The report said the UK saw a two per cent hike in the number of people commuting into work from 30 September to 4 October, suggesting the PM’s orders to “work from home “for at least six months” have fallen on deaf ears.
Currently, just over a quarter of the UK’s workforce are working remotely, while 59 per cent are operating out of their usual place of work, accordinf to the ONS.
City workers have been among the most defiant of govrenment orders, after separate data from Transport for London released yesterday showed the number of commuters in the capital stayed the same in the week following Johnson’s announcement on 22 September.
It comes despite major firms including Google, Natwest and Deutsche Bank telling staff not to return to the office until at least 2021, while others look at making working from home a permanent option.
Before the Open: Get the jump on the markets with our early morning newsletter


cityam--2020-10-08--Facebook issues temporary ban on political ads after US election

Facebook will stop running political ads in the US after polls close on 3 November in a bid to prevent “ confusion or abuse ” in the aftermath of the presidential election .
The social media giant said the temporary ban marked its efforts to “ protect the integrity of the election by fighting foreign interference , misinformation and voter suppression ” .
Read more : Big tech faces break-up as Amazon , Apple , Facebook and Google accused of ‘ monopoly power ’ Facebook boss Mark Zuckerberg has come under fire for refusing to fact check political adverts that @ @ @ @ @ @ @ his company has softened its approach in recent weeks , rolling out a ban on ads that seek to “ delegitimise ” the results of the election .
This includes false claims that mail-in voting led to fraud , which were spread on social media by US President Donald Trump .
Facebook has also said it will stop accepting new political ads a week before the election in an effort to prevent last-minute misinformation .
The Silicon Valley tech giant also said it was cracking down on calls for coordinated interference or intimidation @ @ @ @ @ @ @ We will also remove calls for people to engage in poll watching when those calls use militarised language or suggest that the goal is to intimidate , exert control , or display power over election officials or voters , ” Guy Rosen , Facebook ’ s vice president of integrity , wrote in a blog post .
The new measures mark a shift in tone for Facebook , which has previously resisted calls for greater regulation of advertising on its platform .
Read more : Facebook removes Trump post claiming flu is more @ @ @ @ @ @ @ hit out at the social media firm , accusing it of making “ performative changes to try to avoid blame for misinformation on its platform ” .
“ The problem isn ’ t the ads themselves .
The problem is Facebook ’ s refusal to regulate its ads , change its broken algorithm , or take responsibility for the power it ’ s amassed , ” she wrote in a tweet .

Facebook issues temporary ban on political ads after US election
Facebook will stop running political ads in the US after polls close on 3 November in a bid to prevent “confusion or abuse” in the aftermath of the presidential election.
The social media giant said the temporary ban marked its efforts to “protect the integrity of the election by fighting foreign interference, misinformation and voter suppression”.
Facebook boss Mark Zuckerberg has come under fire for refusing to fact check political adverts that appear on the platform.
However, his company has softened its approach in recent weeks, rolling out a ban on ads that seek to “delegitimise” the results of the election.
This includes false claims that mail-in voting led to fraud, which were spread on social media by US President Donald Trump.
Facebook has also said it will stop accepting new political ads a week before the election in an effort to prevent last-minute misinformation.
The Silicon Valley tech giant also said it was cracking down on calls for coordinated interference or intimidation using weapons at polling stations.
“We will also remove calls for people to engage in poll watching when those calls use militarised language or suggest that the goal is to intimidate, exert control, or display power over election officials or voters,” Guy Rosen, Facebook’s vice president of integrity, wrote in a blog post.
The new measures mark a shift in tone for Facebook, which has previously resisted calls for greater regulation of advertising on its platform.
But senator Elizabeth Warren hit out at the social media firm, accusing it of making “performative changes to try to avoid blame for misinformation on its platform”.
“The problem isn’t the ads themselves. The problem is Facebook’s refusal to regulate its ads, change its broken algorithm, or take responsibility for the power it’s amassed,” she wrote in a tweet.


cityam--2020-10-08--Landlord New River converts retail property into residential amid high street turmoil

Landlord New River REIT is pushing ahead with its plans to convert some of its retail and pub destinations into housing , it announced today , amid a challenging period for the sector .
The real estate investment trust announced today that it has progressed its residential conversion opportunities during the coronavirus pandemic .
Read more : Retail landlord New River suffers drop in rent payments due to coronavirus In a trading update this morning New River said it had revised plans for a development in Burgess Hill , Sussex , by increasing residential space and reducing retail units .
@ @ @ @ @ @ @ 10 homes at its mixed-use development in Poole .
New River , which owns community pub business Hawthorn Leisure as well as shopping destinations , said it had collected 66 per cent of rent from tenants in the third quarter , and has signed agreements with a number of occupiers over outstanding payments .
“ We continue to have limited exposure to the structurally challenged retail sub-sectors that have been particularly impacted by COVID-19 and recent restrictions , with no department stores in our portfolio , and minimal exposure to mid-market fashion and @ @ @ @ @ @ @ said .
The firm ’ s pub portfolio has reopened following the easing of lockdown restrictions in July , with like-for-like sales since then down eight per cent compared to last year .
It is aiming to dispose of between £80m to £100m of assets during this financial year , with £65.7m of disposals either completed , exchanged or currently under offer .
New River said it has £140m of cash reserves , 71 per cent more than 31 March , driven by the progress with disposals and rent collection .
Read more @ @ @ @ @ @ @ River REIT for £40m The REIT ’ s retail and pub businesses were both cash positive throughout lockdown , it added .
The company has total available liquidity of £235m , including a £45m undrawn revolving credit facility and eligibility for £50m of financing under the Covid Corporate Financing Facility .

Landlord New River converts retail property into residential amid high street turmoil
Landlord New River REIT is pushing ahead with its plans to convert some of its retail and pub destinations into housing, it announced today, amid a challenging period for the sector.
The real estate investment trust announced today that it has progressed its residential conversion opportunities during the coronavirus pandemic.
In a trading update this morning New River said it had revised plans for a development in Burgess Hill, Sussex, by increasing residential space and reducing retail units.
The company is also preparing to sell 10 homes at its mixed-use development in Poole.
New River, which owns community pub business Hawthorn Leisure as well as shopping destinations, said it had collected 66 per cent of rent from tenants in the third quarter, and has signed agreements with a number of occupiers over outstanding payments.
“We continue to have limited exposure to the structurally challenged retail sub-sectors that have been particularly impacted by COVID-19 and recent restrictions, with no department stores in our portfolio, and minimal exposure to mid-market fashion and casual dining operators”, the firm said.
The firm’s pub portfolio has reopened following the easing of lockdown restrictions in July, with like-for-like sales since then down eight per cent compared to last year.
It is aiming to dispose of between £80m to £100m of assets during this financial year, with £65.7m of disposals either completed, exchanged or currently under offer.
New River said it has £140m of cash reserves, 71 per cent more than 31 March, driven by the progress with disposals and rent collection.
The REIT’s retail and pub businesses were both cash positive throughout lockdown, it added.
The company has total available liquidity of £235m, including a £45m undrawn revolving credit facility and eligibility for £50m of financing under the Covid Corporate Financing Facility.


cityam--2020-10-08--Competition watchdog requests probe into Virgin-O2 merger

The UK competition watchdog has asked the EU to refer the planned tie-up between O2 and Virgin for a full investigation in Britain .
O2 ’ s owner Telefonica in May confirmed plans for a £31bn mega-merger with Virgin Media , owned by Liberty Global .
Read more : How the O2-Virgin Media merger will reshape the telecoms sector The proposed deal falls under the remit of the European Commission to review , but could be transferred to the UK ’ s Competition and Markets Authority ( CMA ) .
The CMA wants to lead the probe given the deal @ @ @ @ @ @ @ ” is centred solely in the UK .
The legal requirements for the case to be transferred were met , the CMA argued .
“ We ’ ve sent a formal request to the European Commission to review the proposed deal between Virgin and O2 , ” CMA chief executive Andrea Coscelli said .
“ Ultimately , this is a decision for the EC , but as the merger will only impact UK consumers – and any effects would only be felt after the end of the transition period – it is only @ @ @ @ @ @ @ back.
” O2 and Virgin sent shockwaves through the market when they announced the proposed deal in May .
However , both Telefonica and Liberty had been exploring exit options for their respective subsidiaries for some time .
While the CMA ’ s intervention threatens to provide a stumbling block for the deal , analysts have played down concerns that the deal will be blocked .
They cited the precedent set by BT ’ s £12.5bn takeover of EE in 2016 .
The European Commission has previously said it wants to ensure consistency @ @ @ @ @ @ @ sector .
However , the CMA argued this was not relevant for the Virgin-O2 deal as the UK transition period will soon expire .
The initial deadline for the European Commission to respond to the request is 19 November .

Competition watchdog requests probe into Virgin-O2 merger
The UK competition watchdog has asked the EU to refer the planned tie-up between O2 and Virgin for a full investigation in Britain.
O2’s owner Telefonica in May confirmed plans for a £31bn mega-merger with Virgin Media, owned by Liberty Global.
The proposed deal falls under the remit of the European Commission to review, but could be transferred to the UK’s Competition and Markets Authority (CMA).
Retail risk
The CMA wants to lead the probe given the deal’s “potential impact on competition” is centred solely in the UK.
The legal requirements for the case to be transferred were met, the CMA argued.
“We’ve sent a formal request to the European Commission to review the proposed deal between Virgin and O2,” CMA chief executive Andrea Coscelli said.
“Ultimately, this is a decision for the EC, but as the merger will only impact UK consumers – and any effects would only be felt after the end of the transition period – it is only right for the CMA to request it back.”
O2 and Virgin sent shockwaves through the market when they announced the proposed deal in May.
However, both Telefonica and Liberty had been exploring exit options for their respective subsidiaries for some time.
A stumbling block?
While the CMA’s intervention threatens to provide a stumbling block for the deal, analysts have played down concerns that the deal will be blocked.
They cited the precedent set by BT’s £12.5bn takeover of EE in 2016.
The European Commission has previously said it wants to ensure consistency across different merger cases in the telecoms sector.
However, the CMA argued this was not relevant for the Virgin-O2 deal as the UK transition period will soon expire.
The initial deadline for the European Commission to respond to the request is 19 November.


cityam--2020-10-08--FTSE 100 edges higher as renewed US stimulus hopes boost markets

The FTSE 100 rose slightly this morning , following global markets higher as renewed hopes for a partial deal on coronavirus stimulus in the US lifted sentiment .
The blue-chip index climbed steadily after the open before paring back gains slightly but soon rose again to stand 0.32 per cent up at 5,965.55 by 11am .
British midcaps rose to their highest levels in two months following upbeat comments on Brexit from Bank of England governor Andrew Bailey .
Although London shares were boosted by a positive global mood amid renewed stimulus hopes , concerns over more coronavirus restrictions in @ @ @ @ @ @ @ .
The government is considering additional local Covid-19 restrictions for parts of northern England as the second wave of the coronavirus infections accelerates , housing secretary Robert Jenrick said this morning .
Ladbrokes-owner GVC Holdings helped push the FTSE 100 higher , rising as much as seven per cent after raising its full-year outlook following a jump in revenue as sporting events resumed .
Shares in rival bookmaker Flutter Entertainment rose just over one per cent .
Tobacco giant Imperial Brands rose as much as 2.38 per cent after saying it expected full-year @ @ @ @ @ @ @ pandemic drove up demand for cigarettes .
The FTSE 250 rose 0.89 per cent to 17,960.65 .
Talk Talk led the midcap risers , with shares surging 16.5 per cent after the telecoms firm disclosed it had received a buyout offer from asset manager Toscafund .
“ Having been building in stake in Talk Talk in recent years Toscafund may have not unreasonably decided it could do a better job of managing the assets itself out of the glare of public markets , ” said AJ Bell investment director Russ Mould .
Before @ @ @ @ @ @ @ with the City View podcast and key market data The domestically-focused index was also boosted by Bank of England governor Andrew Bailey saying he believed that the UK and European Union should reach a trade deal .
Speaking to the Yorkshire Post , Bailey said it was “ in the interest of both sides ” to reach an agreement , adding : “ I ’ m surprised that the EU wants to restrict where their citizens can do business .
We will certainly keep our markets open to the world.
” Wall Street @ @ @ @ @ @ @ aid to the airline industry were progressing in Washington despite even President Donald Trump calling off talks on a more comprehensive deal .
Trump said he was “ waiting to sign ” a bill , despite walking away from talks with Democrats , while House Speaker Nancy Pelosi also indicated her willingness to pursue a stimulus package for the airline industry .
“ Whether it ’ s now or after November , what ’ s been made clear to investors is that fiscal stimulus is on its way , ” said Markets.com chief @ @ @ @ @ @ @ becomes less important – doubts would resurface if there is a contested election result that leaves Washington lawmakers unable to come to a deal , ” he continued .
All major US indices made major advances on the stimulus hopes , with the benchmark S & P 500 rising 1.74 per cent .
The Dow and the Nasdaq added 1.91 per cent and 1.88 per cent respectively .
Read more : UK and EU should reach trade deal , says BoE governor Andrew Bailey Asian markets took their cue from US stocks and @ @ @ @ @ @ @ broadest index of Asia-Pacific shares outside Japan climbed to a one-month high , marking a fourth straight session of gains .
Japan ’ s Nikkei 225 rose 0.96 per cent , while Hong Kong ’ s Hang Seng fell 0.49 per cent .
The Shanghai composite index slipped 0.2 per cent .

FTSE 100 closes higher and US stocks rise on fresh stimulus hopes
US President Donald Trump and house speaker Nancy Pelosi have both signalled their willingness to work towards a stimulus deal
The FTSE 100 closed higher and Wall Street rose as renewed hopes of a US fiscal stimulus package lifted sentiment despite jobless claims remaining stubbornly high.
Two days after calling off negotiations on a comprehensive fiscal aid bill, US President Donald Trump today said that talks with Congress have restarted.
Read more: New US jobless claims flatline as recovery slows
Trump has indicated that discussions are focusing on support for the US airline industry and stimulus cheques for Americans.
In London, the FTSE 100 got off to a lacklustre start before rising steadily. The blue-chip index closed 0.5 per cent higher at 5,978 points.
Renewed hopes that a partial stimulus deal could be reached powered US equities higher for the second day.
The benchmark S&P 500 was up 0.6 per cent by 6pm UK time. The Dow Jones climbed 0.3 per cent, while the Nasdaq advanced 0.5 per cent.
US equities rose despite new Department of Labor data showing that some 840,000 Americans filed new jobless claims in the week ending 3 October – a drop of just 9,000 from the previous week.
Fears over fresh restrictions cap FTSE 100 gains
British mid-caps rose to their highest levels in two months. The FTSE 250 finished 0.8 per cent higher.
FTSE 100 and 250 shares were boosted by a positive global mood amid renewed stimulus hopes. But concerns over more coronavirus restrictions in the UK kept a lid on gains.
Read more: Talk Talk shares leap as Toscafund makes buyout offer
Talk Talk led the midcap risers. Its shares surged 17.1 per cent after the telecoms firm disclosed it had received a buyout offer from asset manager Toscafund.
“Having been building in stake in Talk Talk in recent years Toscafund may have not unreasonably decided it could do a better job of managing the assets itself out of the glare of public markets,” said AJ Bell investment director Russ Mould.
Read more: UK and EU should reach trade deal, says BoE governor Andrew Bailey
The domestically-focused index was also boosted by Bank of England governor Andrew Bailey saying he believed that the UK and European Union should reach a trade deal.
Global markets lifted by stimulus bets
European equities also gained along with the FTSE 100 on hopes of forthcoming US stimulus measures increased risk appetite.
In Germany, the Dax rose 0.9 per cent, while France’s CAC 40 added 0.6 per cent.
Ben Laidler of Tower Hudson Research said markets were reacting in part to the prospect of a Joe Biden victory in the 3 November US presidential election. Various polls have shown him around 10 points ahead of Trump.
“Markets rallied as investors getting increasingly comfortable with a Democrat election victory,” he said.
Laidler said markets thought there was a high chance of “significant post-election fiscal stimulus”.