cityam--2020-04-21--Richard Branson hits out as Virgin Australia goes into administration

Billionaire businessman Sir Richard Branson has hit out at the Australian government after low-cost airline Virgin Australia went into administration this morning .
In an open letter , Branson , whose Virgin group owns 10 per cent of the airline , wrote : Read more : Richard Branson warns Virgin Atlantic needs coronavirus loan to survive “ In most countries federal governments have stepped in , in this unprecedented crisis for aviation , to help their airlines .
“ Sadly , this has not happened in Australia ” .
The decision to appoint an administrator came after Canberra elected to @ @ @ @ @ @ @ 1.4bn loan to keep the flier alive .
Despite commanding a hefty share of the Australian domestic market , Virgin Australia ’ s debt pile reached AU $ 5bn ( £2.54bn ) before the airline appointed Deloitte as its administrator .
The budget carrier has recorded losses for the last seven years even before the coronavirus shutdowns hammered the global aviation industry .
In response to Branson ’ s comments , Australian prime minister Scott Morrison said : “ If we had not taken the actions that we have… then all we may @ @ @ @ @ @ @ 1bn to foreign shareholders and that was never part of my plan , ” he said .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
“ My plan was always about seeing two viable airlines on the other side , two viable airlines that would be there not just one year from now , but five or 10 years from now.
” Instead , said Morrison , the firm ’ s overseas owners should come to the rescue .
A @ @ @ @ @ @ @ Emirates Airlines own 90 per cent of Virgin Australia .
Yesterday Branson called on the UK government to bailout Virgin Atlantic , which he said would fail without state aid .
In another open letter , the billionaire founder of the Virgin group of companies pledged his private island in the Caribbean as security against a government loan to save the airline .
Chancellor Rishi Sunak has said that government aid will only be made available to airlines as a “ last resort ” after all other funding avenues have been explored .
@ @ @ @ @ @ @ the Treasury asked for Virgin ’ s original bid for £500m in loans to be resubmitted after being unimpressed with the original bid .
Read more : Coronavirus : Virgin Australia to ground all but one domestic flight and seeks state aid Today Hungarian low-cost flier Wizz Air announced it had been made eligible to receive funding under the Bank of England ’ s Covid Corporate Finance Facility .
It follows Easyjet , which received £600m in loans from the scheme last week .

Richard Branson hits out as Virgin Australia goes into administration
Billionaire businessman Sir Richard Branson has hit out at the Australian government after low-cost airline Virgin Australia went into administration this morning.
In an open letter, Branson, whose Virgin group owns 10 per cent of the airline, wrote:
“In most countries federal governments have stepped in, in this unprecedented crisis for aviation, to help their airlines.
“Sadly, this has not happened in Australia”.
The decision to appoint an administrator came after Canberra elected to reject a plea for a AU$1.4bn loan to keep the flier alive.
Despite commanding a hefty share of the Australian domestic market, Virgin Australia’s debt pile reached AU$5bn (£2.54bn) before the airline appointed Deloitte as its administrator.
The budget carrier has recorded losses for the last seven years even before the coronavirus shutdowns hammered the global aviation industry.
In response to Branson’s comments, Australian prime minister Scott Morrison said:
“If we had not taken the actions that we have… then all we may have ended up doing is sending $1bn to foreign shareholders and that was never part of my plan,” he said.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
“My plan was always about seeing two viable airlines on the other side, two viable airlines that would be there not just one year from now, but five or 10 years from now.”
Instead, said Morrison, the firm’s overseas owners should come to the rescue. A conglomerate of firms including Singapore Airlines and Emirates Airlines own 90 per cent of Virgin Australia.
Yesterday Branson called on the UK government to bailout Virgin Atlantic, which he said would fail without state aid.
In another open letter, the billionaire founder of the Virgin group of companies pledged his private island in the Caribbean as security against a government loan to save the airline.
Chancellor Rishi Sunak has said that government aid will only be made available to airlines as a “last resort” after all other funding avenues have been explored.
Last week the Financial Times reported that the Treasury asked for Virgin’s original bid for £500m in loans to be resubmitted after being unimpressed with the original bid.
Today Hungarian low-cost flier Wizz Air announced it had been made eligible to receive funding under the Bank of England’s Covid Corporate Finance Facility.
It follows Easyjet, which received £600m in loans from the scheme last week.


cityam--2020-04-21--Pound tumbles as oil chaos drives investors towards dollar

The pound has tumbled to a two-week low against the dollar as turmoil in the oil markets spooks investors and sends them towards safe-haven assets such as the greenback .
Sterling had fallen 1.1 per cent by midday to $ 1.23 .
It was last at this level roughly 12 days ago .
Read more : Brent crude falls below $ 20 as extreme volatility rattles oil prices Investors around the world sold off shares this morning after US oil prices – specifically oil for May delivery – yesterday evening fell into negative territory for the first time in history @ @ @ @ @ @ @ huge slump in demand for oil .
It was worsened by market technicalities which meant investors were dumping a contract to receive oil in May before it expired .
Following the wild drop in the May WTI oil price ( the US benchmark ) , the June WTI price has slumped today .
It had fallen 24 per cent by midday to $ 15.70 per barrel .
Brent crude , the global benchmark , also plunged .
It dropped 19 per cent to $ 20.80 .
The wild movements in the oil markets @ @ @ @ @ @ @ has caused demand and production in the economy to evaporate .
They have also caused oil majors ’ share prices to slump .
This has caused investors to rush towards the dollar .
As the currency of global finance and trade , it holds its value at times of stress , meaning investors choose to hold it when they lose their appetite for riskier bets .
On an index against other currencies , the greenback has risen 0.4 per cent by midday .
“ Today ’ s price falls , and the associated @ @ @ @ @ @ @ Canadian dollar and Norweigan krone , suggests market participants are bracing for a deeper and longer supply glut , ” said Ranko Berich , head of market analysis at Monex Europe .
Read more : Analysis : Why did oil prices turn negative ?
The euro was 0.3 per cent lower against the dollar at $ 1.084 .
The pound tumbled 1.3 per cent against the Japanese yen , another currency seen as a safe haven asset .
A pound bought 132.1 yen .

Pound tumbles as oil chaos drives investors towards dollar
The slump in oil prices has scared investors, sending them towards safe assets like the dollar
The pound has tumbled to a two-week low against the dollar as turmoil in the oil markets spooks investors and sends them towards safe-haven assets such as the greenback.
Sterling had fallen 1.1 per cent by midday to $1.23. It was last at this level roughly 12 days ago.
Investors around the world sold off shares this morning after US oil prices – specifically oil for May delivery – yesterday evening fell into negative territory for the first time in history.
The unprecedented price moves reflected a huge slump in demand for oil. It was worsened by market technicalities which meant investors were dumping a contract to receive oil in May before it expired.
Following the wild drop in the May WTI oil price (the US benchmark), the June WTI price has slumped today. It had fallen 24 per cent by midday to $15.70 per barrel.
Brent crude, the global benchmark, also plunged. It dropped 19 per cent to $20.80.
The wild movements in the oil markets have spooked investors by underlining how coronavirus has caused demand and production in the economy to evaporate. They have also caused oil majors’ share prices to slump.
This has caused investors to rush towards the dollar. As the currency of global finance and trade, it holds its value at times of stress, meaning investors choose to hold it when they lose their appetite for riskier bets.
On an index against other currencies, the greenback has risen 0.4 per cent by midday.
“Today’s price falls, and the associated sell-off in oil-linked currencies such as the Canadian dollar and Norweigan krone, suggests market participants are bracing for a deeper and longer supply glut,” said Ranko Berich, head of market analysis at Monex Europe.
The euro was 0.3 per cent lower against the dollar at $1.084.
The pound tumbled 1.3 per cent against the Japanese yen, another currency seen as a safe haven asset. A pound bought 132.1 yen.


cityam--2020-04-21--More than £6bn of coronavirus grants given to English businesses

More than £6bn of business grants have been distributed to English small and medium sized businesses through the government ’ s coronavirus grant schemes .
A total of 491,725 grants , worth £6.11bn , have been distributed out of a pot of £12.3bn as of last night , translating into a 49.58 per cent delivery rate .
Read more : Scottish government does U-turn on coronavirus business grant scheme Grants of £10,000 are available to small businesses of any kind with a rateable value of between £12,00 and £15,000 .
Companies in the hospitality , retail and tourism sectors are @ @ @ @ @ @ @ is paid per property of their business .
Properties with a rateable value of up to £51,000 are eligible to receive either a £10,000 or £25,000 grant .
The schemes , first announced in chancellor Rishi Sunak ’ s budget last month , sees the government give funds to local authorities who then distribute it to eligible businesses in their boroughs .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
London businesses have received £839.42m of funding through the grant @ @ @ @ @ @ @ £1.62bn .
Some boroughs have been better than others at distributing the cash .
Southwark council has managed to distribute 87 per cent of the £70.06m it was given by the government .
Some others have only handed out less than 30 per cent of funds given to them .
London Chamber of Commerce and Industry chief executive Richard Burge said there was “ more work to do ” for some boroughs .
“ Cashflow is fast running out for many SMEs across London and these grants are important to trying to keep @ @ @ @ @ @ @ ” he said .
“ The London figures show that many boroughs are making good progress , but there is more work to do in others .
It ’ s important that businesses respond promptly to contact from their local council regarding these grants .
And then equally important that councils issue these grants swiftly.
” Read more : Rishi Sunak ‘ not persuaded ’ to underwrite 100 per cent of coronavirus loans Federation of Small Businesses national chair Mike Cherry added : “ “ The funding is there to be used to @ @ @ @ @ @ @ economy to bounce back with once restrictions ease , so it ’ s inexcusable for any council to delay .
“ Get the money out there and back our small businesses .
”

More than £6bn of coronavirus grants given to English businesses
Some of Britain’s biggest shops had hoped for tourists to enjoy tax-free shopping
More than £6bn of business grants have been distributed to English small and medium sized businesses through the government’s coronavirus grant schemes.
A total of 491,725 grants, worth £6.11bn, have been distributed out of a pot of £12.3bn as of last night, translating into a 49.58 per cent delivery rate.
Grants of £10,000 are available to small businesses of any kind with a rateable value of between £12,00 and £15,000.
Companies in the hospitality, retail and tourism sectors are also eligible for an additional grant that is paid per property of their business.
Properties with a rateable value of up to £51,000 are eligible to receive either a £10,000 or £25,000 grant.
The schemes, first announced in chancellor Rishi Sunak’s budget last month, sees the government give funds to local authorities who then distribute it to eligible businesses in their boroughs.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
London businesses have received £839.42m of funding through the grant schemes so far out of a possible £1.62bn.
Some boroughs have been better than others at distributing the cash.
Southwark council has managed to distribute 87 per cent of the £70.06m it was given by the government.
Some others have only handed out less than 30 per cent of funds given to them.
London Chamber of Commerce and Industry chief executive Richard Burge said there was “more work to do” for some boroughs.
“Cashflow is fast running out for many SMEs across London and these grants are important to trying to keep them afloat in the short term,” he said.
“The London figures show that many boroughs are making good progress, but there is more work to do in others.
It’s important that businesses respond promptly to contact from their local council regarding these grants. And then equally important that councils issue these grants swiftly.”
Federation of Small Businesses national chair Mike Cherry added: ““The funding is there to be used to ensure we have a strong and robust economy to bounce back with once restrictions ease, so it’s inexcusable for any council to delay.
“Get the money out there and back our small businesses.”
Clare Coghill, an executive member of the lobby group London Councils, said some boroughs were finding it difficult to distribute funds due to a lack of data provided by businesses,
“Boroughs have been working incredibly hard to distribute the grants announced which will be distributed via the business rates system,” she said.
“However gaps in the data from businesses has been a significant problem.
“Boroughs need businesses’ bank details to ensure rapid payments can be made while carrying out the appropriate checks to minimise the potential for fraud.”
Borough by borough breakdown of grant distribution
Source: Department of Business, Energy and Industrial Strategy


cityam--2020-04-21--Coronavirus: Oktoberfest cancelled due to pandemic

Oktoberfest has been cancelled due to fears about the coronavirus outbreak , organisers confirmed today .
The historic knees-up is the largest beer festival in the world , attracting roughly 6m visitors to Munich each year .
Read more : Coronavirus crisis could affect 59m jobs across Europe But in a joint statement Bavaria ’ s minister president Markus Soeder and Munich ’ s lord mayor Dieter Reiter said the festival would not go ahead this year as the risks linked to the spread Covid-19 were too high .
“ It is about the biggest and most beautiful festival in @ @ @ @ @ @ @ a press conference at the Bavarian state chancellery .
“ We are living in different times , and living with corona means living carefully .
The greatest sensitivity applies to celebrations.
” Reiter said the decision was a “ bitter pill to swallow ” , both for revellers and for businesses in Munich that will suffer a heavy financial blow from the cancellation .
Oktoberfest is of huge economic significance for the city , generating more than €1bn ( £879m ) in revenue each year .
The festival , known locally as Wiesn @ @ @ @ @ @ @ are pitched , was due to take place between 19 September and 4 October .
Oktoberfest first began on 12 October 1810 when locals were invited to celebrate the marriage of crown prince Ludwig to princess Therese of Saxony-Hildburghausen .
It has since grown into the largest annual tourist event in Germany .
Last year boozers drank 7.3m litres of beer over the course of the festival , a slight decrease on the 7.5m litres put away in 2018 .
Read more : Germany lockdown eases as Angela Merkel warns against second wave @ @ @ @ @ @ @ of lost property , including 420 smartphones , 115 umbrellas , a set of dentures and a flugelhorn .
The decision to scrap the annual jamboree comes despite Germany this week beginning to lift some lockdown restrictions , with small retail shops , car and bike dealers and bookshops allowed to reopen .

Coronavirus: Oktoberfest cancelled due to pandemic
Oktoberfest has been cancelled due to fears about the coronavirus outbreak, organisers confirmed today.
The historic knees-up is the largest beer festival in the world, attracting roughly 6m visitors to Munich each year.
But in a joint statement Bavaria’s minister president Markus Soeder and Munich’s lord mayor Dieter Reiter said the festival would not go ahead this year as the risks linked to the spread Covid-19 were too high.
“It is about the biggest and most beautiful festival in the world,” Soeder said at a press conference at the Bavarian state chancellery.
“We are living in different times, and living with corona means living carefully. The greatest sensitivity applies to celebrations.”
Reiter said the decision was a “bitter pill to swallow”, both for revellers and for businesses in Munich that will suffer a heavy financial blow from the cancellation.
Oktoberfest is of huge economic significance for the city, generating more than €1bn (£879m) in revenue each year.
The festival, known locally as Wiesn after the 100-acre expanse where the tents are pitched, was due to take place between 19 September and 4 October.
Oktoberfest first began on 12 October 1810 when locals were invited to celebrate the marriage of crown prince Ludwig to princess Therese of Saxony-Hildburghausen. It has since grown into the largest annual tourist event in Germany.
Last year boozers drank 7.3m litres of beer over the course of the festival, a slight decrease on the 7.5m litres put away in 2018.
Event organisers counted roughly 3,800 items of lost property, including 420 smartphones, 115 umbrellas, a set of dentures and a flugelhorn.
The decision to scrap the annual jamboree comes despite Germany this week beginning to lift some lockdown restrictions, with small retail shops, car and bike dealers and bookshops allowed to reopen.


cityam--2020-04-21--Brent crude falls below $20 as extreme volatility rattles oil prices

The price of worldwide oil benchmark Brent crude dropped below $ 20 for the first time in 18 years this morning after extreme volatility battered global oil markets .
A mid-morning plunge sent Brent down to nearly $ 18 , before the commodity recovered to stand 20 per cent down on the day at $ 20.64 .
Read more : Analysis : Why did oil prices turn negative ?
The fall weighed on London ’ s premier bourse the FTSE 100 , with both BP and Shell shares down over four per cent .
The drop came after US measure @ @ @ @ @ @ @ last night for the first time in history , with traders paying to offload their front month delivery contracts over fears of a lack of storage .
Prices remain negative this morning , having seesawed into the black at first , but attention has now turned to the June futures contract amid fears of another record sell-off .
As of the mid-morning , this contract seemed to be headed the same way as the expiring May deal , at one point falling 40 per cent before clawing back some gains .
Neil Wilson @ @ @ @ @ @ @ said : “ Whilst the May contract went absurdly low because traders had to avoid taking physical delivery at all costs , the forward contracts look too high when you consider how much demand destruction is out there .
“ If this super contango market persists we may see further implosions like we saw yesterday as we approach settlement as traders are caught the wrong side of the expiry with nowhere to put it ” .
Listen to our daily City View podcast as we chart the economic fallout and business impact of @ @ @ @ @ @ @ main US storage hub in Cushing , Oklahoma , the delivery point for the West Texas Intermediate ( WTI ) contract , is expected to be full within weeks .
According to the International Energy Agency ( IEA ) , the facility already over two-thirds full , with 55m of its 76m barrel capacity already taken .
With remaining capacity largely pre-leased , the simple fact is that traders and producers simply do not have anywhere to put their oil .
According to Wilson , Brent , as a seaborne crude , should @ @ @ @ @ @ @ due to tanker storage space .
The Brent front month contract rolls over on Friday , meaning downward pressure is likely to continue this week .
Read more : FTSE 100 falls after US oil price turns negative for first time Chris Beauchamp of IG said that the extreme volatility in the world ’ s two benchmarks showed “ the complete breakdown in normality of the world ’ s most economically important commodities ” : “ We are witnessing markets finally play catch-up to the reality on the ground in the oil market @ @ @ @ @ @ @ combined with nearly-full storage facilities to drive complete dislocation in the crude oil market ” .

Brent crude falls below $20 as extreme volatility rattles oil prices
The price of worldwide oil benchmark Brent crude dropped below $20 for the first time in 18 years this morning after extreme volatility battered global oil markets.
A mid-morning plunge sent Brent down to nearly $18, before the commodity recovered to stand 24 per cent down on the day at exactly $20.
The fall weighed on London’s premier bourse the FTSE 100, with both BP and Shell shares down over four per cent.
The drop came after US measure West Texas Intermediate flipped into the negative last night for the first time in history, with traders paying to offload their front month delivery contracts over fears of a lack of storage.
Prices remain negative this morning, having seesawed into the black at first, but attention has now turned to the June futures contract amid fears of another record sell-off.
As of the early, this contract seemed to be headed the same way as the expiring May deal, having fallen about 30 per cent.
Neil Wilson, chief markets analyst at markets.com, said: “Whilst the May contract went absurdly low because traders had to avoid taking physical delivery at all costs, the forward contracts look too high when you consider how much demand destruction is out there.
“If this super contango market persists we may see further implosions like we saw yesterday as we approach settlement as traders are caught the wrong side of the expiry with nowhere to put it”.
Crucially, the main US storage hub in Cushing, Oklahoma, the delivery point for the West Texas Intermediate (WTI) contract, is expected to be full within weeks.
According to the International Energy Agency (IEA), the facility already over two-thirds full, with 55m of its 76m barrel capacity already taken.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
With remaining capacity largely pre-leased, the simple fact is that traders and producers simply do not have anywhere to put their oil.
The prospect of having to stop pumping could pose an existential threat for some of the US’ 9,000 domestic producers, but President Donald Trump has said that he is working on a deal to protect firms.
He tweeted: “We will never let the great US Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!”
The US position as the world’s biggest energy producer has been a source of pride for Trump throughout his administration.
The price rout in the US has led to fears that Brent crude will follow suit when its front month contract rolls over on Friday.
According to Wilson, Brent, as a seaborne crude, should have some protection from a collapse of the same scale as in the US, due to tanker storage space.
Chris Beauchamp of IG said that the extreme volatility in the world’s two benchmarks showed “the complete breakdown in normality of the world’s most economically important commodities”:
“We are witnessing markets finally play catch-up to the reality on the ground in the oil market – huge oversupply and non-existent demand have combined with nearly-full storage facilities to drive complete dislocation in the crude oil market”.
The collapse has also raised questions as to whether drivers will see a reduction in prices at petrol stations.
RAC fuel spokesman Simon Williams said that although “in theory” prices could sink below £1 a litre for the first time in over a decade as retailers pass on savings, in reality it was unlikely:
“At the same time people are driving very few miles so [retailers] are selling vastly lower quantities of petrol and diesel at the moment. This means many will be at pains to trim their prices any further”.


cityam--2020-04-21--Cath Kidston closes all stores as part of rescue deal

Cath Kidston will permanently close all 60 of its stores in the UK under a rescue deal with its Hong Kong-based owner Baring Private Equity Asia ( BPEA ) .
The fashion label confirmed that parts of its business had been transferred by administrators following an independent sale process to CK Acquisitions , a company owned by BPEA .
Read more : Asos shares jump after it raises £247m to beat coronavirus Under the terms of the transaction , BPEA has retained the e-commerce platform and franchise and wholesale businesses , meaning Cath Kidston can continue to trade online .
@ @ @ @ @ @ @ failed to find a buyer for the brand .
In a statement , the brand said “ BPEA ’ s bid was determined to be the one which offered the highest value and best opportunity to secure the future of the business.
” “ The bid did not include any of the UK retail store portfolio , which will be managed by the administrators , Alvarez & Marsal.
” Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
The sale will @ @ @ @ @ @ @ , with just 32 jobs saved in the UK .
Chief executive Melinda Paraie said : “ While we are pleased that the future of Cath Kidston has been secured , this is obviously an extremely difficult day as we say goodbye to many colleagues .
“ Despite our very best efforts , against the backdrop of COVID-19 , we were unable to secure a solvent sale of the business which would have allowed us to avoid administration and carry on trading in our current form.
” A spokesperson for BPEA said : @ @ @ @ @ @ @ COVID-19 crisis has resulted in the cessation of the retail store network and impacted many employees , we are pleased to have secured a future for a number of Cath Kidston staff and the Cath Kidston brand in the form of a viable digital business.
” Get the news as it happens by following City A.M. on Twitter .

Cath Kidston closes all stores as part of rescue deal
Cath Kidston will permanently close all 60 of its stores in the UK under a rescue deal with its Hong Kong-based owner Baring Private Equity Asia (BPEA).
The fashion label confirmed that parts of its business had been transferred by administrators following an independent sale process to CK Acquisitions, a company owned by BPEA.
Under the terms of the transaction, BPEA has retained the e-commerce platform and franchise and wholesale businesses, meaning Cath Kidston can continue to trade online.
Cath Kidston called in administrators after Baring failed to find a buyer for the brand. In a statement, the brand said “BPEA’s bid was determined to be the one which offered the highest value and best opportunity to secure the future of the business.”
“The bid did not include any of the UK retail store portfolio, which will be managed by the administrators, Alvarez & Marsal.”
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The sale will mean 908 staff will be made redundant, with just 32 jobs saved in the UK.
Chief executive Melinda Paraie said: “While we are pleased that the future of Cath Kidston has been secured, this is obviously an extremely difficult day as we say goodbye to many colleagues.
“Despite our very best efforts, against the backdrop of COVID-19, we were unable to secure a solvent sale of the business which would have allowed us to avoid administration and carry on trading in our current form.”
A spokesperson for BPEA said: “While we are disappointed that the COVID-19 crisis has resulted in the cessation of the retail store network and impacted many employees, we are pleased to have secured a future for a number of Cath Kidston staff and the Cath Kidston brand in the form of a viable digital business.”
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-04-21--Climate change remains key focus at LGIM as it ramps up pressure on boards

Legal & General Investment Management ( LGIM ) is continuing to pressure corporate boards on climate change and governance , opposing the election of 4,000 company directors last year .
The asset manager ’ s ‘ Active Ownership ’ report released today reveals it took sanctions against 11 companies named as laggards under LGIM ’ s climate impact pledge .
Among these were Exxon Mobil and China Construction Bank .
Read more : Covid-19 might lead to long-term action on climate change Climate change is a key focus for LGIM , as concerns reached new heights last year .
The @ @ @ @ @ @ @ topic it had most engaged with companies on in the last year , with 249 engagements .
Last year it co-filed its first shareholder resolution , leading to oil major BP adopting climate targets .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
LGIM said it is also continuing to improving pay practices , with the report showing it had opposed 35 per cent of pay packages globally .
LGIM said it will “ vote against companies where the pensions @ @ @ @ @ @ @ aligned with the workforce ” .
Additionally it will vote against companies where executive directors do not retain a significant amount of shares for two years following their departure .
Director of investment stewardship Sacha Sadan said : “ The longer executives continue to have a stake in the business , the lower the risk of short-term management decisions.
” “ Our updated principles on shareholding requirements aim to achieve this , whilst encouraging more alignment with stakeholders.
” Additionally , LGIM opposed 15 per cent of director-related proposals globally .
In January @ @ @ @ @ @ @ all companies where the chief executive serves as board chair .
Read more : Barclays outlines new climate policy amid mounting pressure from activists In the UK , the election of 159 directors were opposed over independence concerns .
LGIM rose concerns at Metro Bank due to a lack of independent directors on its board , as well as poor diversity .
At the bank ’ s 2019 AGM , the firm pre-announced its intention to vote against the board chair , directors and members of the audit committee .
LGIM says the @ @ @ @ @ @ @ address its long-standing governance concerns ” with both the chair and chief executive stepping down .
Get the news as it happens by following City A.M. on Twitter .

Climate change remains key focus at LGIM as it ramps up pressure on boards
The Bank of England has set out its first comprehensive climate stress test.
Legal & General Investment Management (LGIM) is continuing to pressure corporate boards on climate change and governance, opposing the election of 4,000 company directors last year.
The asset manager’s ‘Active Ownership’ report released today reveals it took sanctions against 11 companies named as laggards under LGIM’s climate impact pledge. Among these were Exxon Mobil and China Construction Bank.
Climate change is a key focus for LGIM, as concerns reached new heights last year. The asset manager said climate change was the topic it had most engaged with companies on in the last year, with 249 engagements.
Last year it co-filed its first shareholder resolution, leading to oil major BP adopting climate targets.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
LGIM pushes on governance and remuneration
LGIM said it is also continuing to improving pay practices, with the report showing it had opposed 35 per cent of pay packages globally.
LGIM said it will “vote against companies where the pensions of newly appointed executive directors are not aligned with the workforce”. Additionally it will vote against companies where executive directors do not retain a significant amount of shares for two years following their departure.
Director of investment stewardship Sacha Sadan said: “The longer executives continue to have a stake in the business, the lower the risk of short-term management decisions.”
“Our updated principles on shareholding requirements aim to achieve this, whilst encouraging more alignment with stakeholders.”
Additionally, LGIM opposed 15 per cent of director-related proposals globally. In January the firm announced it would vote against all companies where the chief executive serves as board chair.
In the UK, the election of 159 directors were opposed over independence concerns. LGIM rose concerns at Metro Bank due to a lack of independent directors on its board, as well as poor diversity. At the bank’s 2019 AGM, the firm pre-announced its intention to vote against the board chair, directors and members of the audit committee.
LGIM says the pressure meant the bank “began to address its long-standing governance concerns” with both the chair and chief executive stepping down.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-04-21--More than 70 per cent of firms have furloughed staff, BCC says

More than 70 per cent of businesses have furloughed staff under the government ’ s coronavirus job protection scheme , according to a survey published today by the British Chambers of Commerce .
According to the survey 71 per cent of staff have furloughed staff , up from 66 per cent a week earlier .
The job retention portal went live on Monday with 70,000 applications within 30 minutes of opening and more than 140,000 in total on the first day of operation .
Read more : Furloughed hospitality workers could lose ‘ up to 40 per cent ’ of @ @ @ @ @ @ @ to receive cash to pay staff within six working days of application .
The job retention scheme sees the government pay 80 per cent of wages , up to £2,500 a month , for furloughed employees unable to work due to the coronavirus crisis .
Thirty per cent of respondents said they have furloughed between 75 and 100 per cent of their workforce .
The BCC survey also found cash flow was a major concern for businesses , with six in 10 having less than three months ’ cash in reserve .
BCC @ @ @ @ @ @ @ HMRC ’ s capacity to deal with the demand from business has been encouraging so far – and their staff working under immense pressure to get it up and running deserve our recognition and thanks .
Read more : Exclusive : Businesses call for bank-by-bank breakdown of coronavirus lending “ It is now critical that payments from the furlough scheme reach businesses as smoothly and as quickly as possible in order to protect jobs and livelihoods .
“ Ministers will also need to consider keeping the scheme in place for longer , to @ @ @ @ @ @ @ eased and the economy moves gradually toward a new normal .
”

More than 70 per cent of firms have furloughed staff, BCC says
More than 70 per cent of businesses have furloughed staff under the government’s coronavirus job protection scheme, according to a survey published today by the British Chambers of Commerce.
According to the survey 71 per cent of staff have furloughed staff, up from 66 per cent a week earlier.
The job retention portal went live on Monday with 70,000 applications within 30 minutes of opening and more than 140,000 in total on the first day of operation.
Under the scheme businesses are supposed to receive cash to pay staff within six working days of application.
The job retention scheme sees the government pay 80 per cent of wages, up to £2,500 a month, for furloughed employees unable to work due to the coronavirus crisis.
Thirty per cent of respondents said they have furloughed between 75 and 100 per cent of their workforce.
The BCC survey also found cash flow was a major concern for businesses, with six in 10 having less than three months’ cash in reserve.
BCC director general Adam Marshall said: “HMRC’s capacity to deal with the demand from business has been encouraging so far – and their staff working under immense pressure to get it up and running deserve our recognition and thanks.
“It is now critical that payments from the furlough scheme reach businesses as smoothly and as quickly as possible in order to protect jobs and livelihoods.
“Ministers will also need to consider keeping the scheme in place for longer, to help businesses transition as the lockdown is eased and the economy moves gradually toward a new normal.”


cityam--2020-04-21--UK marketing budgets suffer sharpest drop since 2009 crash

UK marketing budgets declined at the fastest rate since the 2009 global financial crisis in the first quarter as consumers and businesses cut spend due to the coronavirus crisis .
A net balance of -6.1 per cent of companies slashed their total marketing budgets in the first three months of the year , according to the latest figures from the Institute of Practitioners in Advertising ( IPA ) .
This marked a dramatic swing from the positive balance of four per cent in the final quarter of 2019 and the sharpest quarterly fall in total marketing expenditure since the end @ @ @ @ @ @ @ of companies surveyed recorded a budget cut , compared to 18.9 per cent signalling growth .
The stark figures revealed a decline in spend across all forms of marketing , with market research and events the worse casualties .
Main media — the primary category for building brand awareness — recorded its sharpest fall since 2009 .
IPA director general Paul Blainsfair said the figures were a “ sobering snapshot ” of the initial impact of coronavirus , adding that the second-quarter figures would give a fuller picture of the extent of the @ @ @ @ @ @ @ toughest overall trading times that any business and indeed any marketer will have ever experienced , but the hope from this report is that we will see a more upbeat end to the year , ” he said .
While the pandemic has taken an immediate hit on the sector , companies were optimistic about budgets for the financial year amid expectations of a rapid economic recovery .
A net balance of 16.2 per cent of firms anticipated higher spend over the next 12 months , with a particular recovery for main media @ @ @ @ @ @ @ fall in advertising spend of roughly 13.7 per cent , based on IHS Markit estimates of a 4.3 per cent contraction in GDP this year .
However , the ad body warned of a high degree of uncertainty caused by the Covid-19 crisis , and said the actual decline could be more severe .
The IPA forecast a one per cent rise in ad spend next year , with more robust growth expected in 2022 .
Mike Gordon , chief commercial officer at Global , said : “ The reduction in marketing spend @ @ @ @ @ @ @ global uncertainty , but with firms predicting a quick economic recovery , brands are using this time effectively to come out on the front foot post-pandemic and look at this as an opportunity to adapt their strategies .
“ Now more than ever , brands can take an innovative approach to their advertising campaigns rather than stopping activity altogether.
” David Fletcher , chief data office at WPP agency Wavemaker , added that the global health emergency meant “ the old playbooks no longer apply wholesale ” .
“ The brands that are @ @ @ @ @ @ @ ones that are finding a tone that resonates with the public and have remained committed to delivering for their customers.
” Read more : UK newspapers to lose £50m as advertisers ‘ blacklist ’ coronavirus Jeremy Hine , chief executive of Mullenlowe Group UK , said : “ Clearly , we ’ re right in the midst of a period of uncertainty , the scale of which is unparalleled for most of us.
” “ However , the creative and advertising industries play a huge role in the UK , both economically and @ @ @ @ @ @ @ ’ s getting important public service messages to reach far and wide ( such as with our work for the NHS ) , or simply making someone smile with humorous advertising about biscuits .
We ’ ll definitely come back from this , and the relationships we foster with clients now will pay off then .
”

UK marketing budgets suffer sharpest drop since 2009 crash
UK marketing budgets declined at the fastest rate since the 2009 global financial crisis in the first quarter as consumers and businesses cut spend due to the coronavirus crisis.
A net balance of -6.1 per cent of companies slashed their total marketing budgets in the first three months of the year, according to the latest figures from the Institute of Practitioners in Advertising (IPA).
This marked a dramatic swing from the positive balance of four per cent in the final quarter of 2019 and the sharpest quarterly fall in total marketing expenditure since the end of 2009.
Overall, a quarter of companies surveyed recorded a budget cut, compared to 18.9 per cent signalling growth.
The stark figures revealed a decline in spend across all forms of marketing, with market research and events the worse casualties.
Main media — the primary category for building brand awareness — recorded its sharpest fall since 2009.
IPA director general Paul Blainsfair said the figures were a “sobering snapshot” of the initial impact of coronavirus, adding that the second-quarter figures would give a fuller picture of the extent of the crisis.
“These are undoubtedly the toughest overall trading times that any business and indeed any marketer will have ever experienced, but the hope from this report is that we will see a more upbeat end to the year,” he said.
While the pandemic has taken an immediate hit on the sector, companies were optimistic about budgets for the financial year amid expectations of a rapid economic recovery.
A net balance of 16.2 per cent of firms anticipated higher spend over the next 12 months, with a particular recovery for main media.
The IPA report also forecast a fall in advertising spend of roughly 13.7 per cent, based on IHS Markit estimates of a 4.3 per cent contraction in GDP this year.
However, the ad body warned of a high degree of uncertainty caused by the Covid-19 crisis, and said the actual decline could be more severe.
The IPA forecast a one per cent rise in ad spend next year, with more robust growth expected in 2022.
Mike Gordon, chief commercial officer at Global, said: “The reduction in marketing spend comes as no surprise given the current global uncertainty, but with firms predicting a quick economic recovery, brands are using this time effectively to come out on the front foot post-pandemic and look at this as an opportunity to adapt their strategies.
“Now more than ever, brands can take an innovative approach to their advertising campaigns rather than stopping activity altogether.”
David Fletcher, chief data office at WPP agency Wavemaker, added that the global health emergency meant “the old playbooks no longer apply wholesale”.
“The brands that are setting themselves up for success are the ones that are finding a tone that resonates with the public and have remained committed to delivering for their customers.”
Jeremy Hine, chief executive of Mullenlowe Group UK, said: “Clearly, we’re right in the midst of a period of uncertainty, the scale of which is unparalleled for most of us.”
“However, the creative and advertising industries play a huge role in the UK, both economically and in considered mass communication, whether that’s getting important public service messages to reach far and wide (such as with our work for the NHS), or simply making someone smile with humorous advertising about biscuits. We’ll definitely come back from this, and the relationships we foster with clients now will pay off then.”


cityam--2020-04-21--Health clinics blasted by ad watchdog over IV drip coronavirus claims

The advertising watchdog has hit out at three companies over claims that intravenous ( IV ) drip treatments could be used to prevent or treat coronavirus .
An advert on Private Harley Street Clinic ’ s website promoted a £350 IV infusion by stating it would boost patients ’ immune systems and protect against Covid-19 .
“ There is no vaccine available at present so maintaining and boosting your immune system is vital as this is your mechanism of protection against this virus and other pathogens ” , it read .
IV therapy website Reviv said the high dose of @ @ @ @ @ @ @ help prevent infection , while two Instagram ads for the Dr Rita Rakus Clinic also said IV drips could aid immunity .
Under advertising regulations brands are not allowed to make medicinal claims about products that are not licensed by the Medicines and Healthcare products Regulatory Agency ( MHRA ) .
The Advertising Standards Authority ( ASA ) said all three companies had breached regulations by implying that IV drips — which are unlicensed — could help prevent coronavirus .
The watchdog said it had fast tracked its investigations as part of its @ @ @ @ @ @ @ anxieties during the pandemic .
Read more : Firms rush to 3D print face masks to meet NHS PPE demand Last month the ASA accused two face manufacturers of using “ scaremongering ” tactics to boost sales of their goods .
The watchdog will next week issue a joint enforcement notice with the MHRA to IV drip clinics outlining what claims can be made in relation to Covid-19 and granting a short grace period ahead of compliance checks .

Health clinics blasted by ad watchdog over IV drip coronavirus claims
The advertising watchdog has hit out at three companies over claims that intravenous (IV) drip treatments could be used to prevent or treat coronavirus.
An advert on Private Harley Street Clinic’s website promoted a £350 IV infusion by stating it would boost patients’ immune systems and protect against Covid-19.
“There is no vaccine available at present so maintaining and boosting your immune system is vital as this is your mechanism of protection against this virus and other pathogens”, it read.
IV therapy website Reviv said the high dose of vitamin C contained in its products could help prevent infection, while two Instagram ads for the Dr Rita Rakus Clinic also said IV drips could aid immunity.
Under advertising regulations brands are not allowed to make medicinal claims about products that are not licensed by the Medicines and Healthcare products Regulatory Agency (MHRA).
The Advertising Standards Authority (ASA) said all three companies had breached regulations by implying that IV drips — which are unlicensed — could help prevent coronavirus.
The watchdog said it had fast tracked its investigations as part of its focus on tackling ads that exploited health-related anxieties during the pandemic.
Last month the ASA accused two face manufacturers of using “scaremongering” tactics to boost sales of their goods.
The watchdog will next week issue a joint enforcement notice with the MHRA to IV drip clinics outlining what claims can be made in relation to Covid-19 and granting a short grace period ahead of compliance checks.


cityam--2020-04-21--Netflix subscribers surge as millions stream shows during coronavirus lockdowns

Streaming giant Netflix signed up 15m new subscribers in the first quarter of the year , double the number it expected , as millions of viewers binged boxsets at home during global coronavirus lockdowns .
The surge in subscription numbers was more than double the 7m net new subscribers that the company had forecast .
The company also beat expectations to add 8.8m new users in the fourth quarter of last year .
Read more : Netflix ’ s value hits record $ 196bn in coronavirus lockdown The US company reported revenue of $ 5.77bn in the quarter and earnings @ @ @ @ @ @ @ shares jumped more than five per cent in after-hours trading .
Netflix has so far been viewed as one of the few companies to be largely unaffected by the coronavirus crisis .
Its stock hit record highs last week as investors expect millions of viewers binge on boxsets during the coronavirus lockdown .
However , there is a risk that a prolonged lockdown could make it difficult to produce new prime content .
The company said that the production shutdown meant some cash spending on content and some title releases will be delayed @ @ @ @ @ @ @ escalating competition from streaming rivals .
Disney ’ s new streaming service Disney Plus has already signed up 50m subscribers , compared to Netflix ’ s 183m .
The company also expects subscriber growth to slow as lockdowns are lifted across the world .
“ Our content competitors and suppliers will be impacted about as much as we are , in terms of new titles , ” the company said in a letter to investors .
“ Since we have a large library with thousands of titles for viewing and very strong recommendations @ @ @ @ @ @ @ impacted than our peers ’ by a shortage of new content , but it will take time to tell .
”

Netflix subscribers surge as millions stream shows during coronavirus lockdowns
Netflix has said it’s ending the DVD postal service after 25 years.
Streaming giant Netflix signed up 15m new subscribers in the first quarter of the year, double the number it expected, as millions of viewers binged boxsets at home during global coronavirus lockdowns.
The surge in subscription numbers was more than double the 7m net new subscribers that the company had forecast. The company also beat expectations to add 8.8m new users in the fourth quarter of last year.
The US company reported revenue of $5.77bn in the quarter and earnings per share of $1.57.
Netflix shares jumped more than five per cent in after-hours trading.
Netflix has so far been viewed as one of the few companies to be largely unaffected by the coronavirus crisis. Its stock hit record highs last week as investors expect millions of viewers binge on boxsets during the coronavirus lockdown.
However, there is a risk that a prolonged lockdown could make it difficult to produce new prime content. The company said that the production shutdown meant some cash spending on content and some title releases will be delayed.
The latest earnings also come amid escalating competition from streaming rivals. Disney’s new streaming service Disney Plus has already signed up 50m subscribers, compared to Netflix’s 183m.
The company also expects subscriber growth to slow as lockdowns are lifted across the world.
“Our content competitors and suppliers will be impacted about as much as we are, in terms of new titles,” the company said in a letter to investors.
“Since we have a large library with thousands of titles for viewing and very strong recommendations, our member satisfaction may be less impacted than our peers’ by a shortage of new content, but it will take time to tell.”


cityam--2020-04-21--June oil futures crash as market grapples with unprecedented glut

Prices for June oil contracts dramatically crashed this evening as the market faces the prospect of massive oversupply amid plunging demand .
The price for a June West Texas Intermediate ( WTI ) crude future contract fell below $ 10 ( £8.14 ) this evening , following yesterday ’ s drastic crash of May WTI contracts .
Read more : Brent crude falls below $ 20 as extreme volatility rattles oil prices Yesterday , May WTI future contracts went negative for the first time in history , with traders paying others to take the oil off their hands .
Oil @ @ @ @ @ @ @ commodity in question to a specific location for a specific date .
Yesterday ’ s price action came about because the WTI May contract expires today , meaning that anyone in possession of a contract would have to take delivery of the commodity at the main WTI storage facility at Cushing in Oklahoma on the set day in May .
Normally , if traders do not want to take delivery , they can simply sell the contract or roll it over to the next month .
Read more : Analysis : Why oil @ @ @ @ @ @ @ again However , because of the enormous supply glut and rapidly growing shortage of storage space , no one wanted to buy up the contracts – leading to a situation where traders were being paid up to $ 37 to take them on .
Now June contracts have joined the rout as traders face the prospect of low demand , dwindling storage space and massive oversupply .
US President Donald Trump earlier today called for a bail out of the struggling US oil industry which faces devastation following the price crash .
“ @ @ @ @ @ @ @ Oil & Gas Industry down .
I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future !
” Trump said on Twitter .

June oil futures crash as market grapples with unprecedented glut
Prices for June oil contracts dramatically crashed this evening as the market faces the prospect of massive oversupply amid plunging demand.
The price for a June West Texas Intermediate (WTI) crude future contract fell below $10 (£8.14) this evening, following yesterday’s drastic crash of May WTI contracts.
Yesterday, May WTI future contracts went negative for the first time in history, with traders paying others to take the oil off their hands.
Oil futures are contracts to actually deliver the commodity in question to a specific location for a specific date.
Yesterday’s price action came about because the WTI May contract expires today, meaning that anyone in possession of a contract would have to take delivery of the commodity at the main WTI storage facility at Cushing in Oklahoma on the set day in May.
Normally, if traders do not want to take delivery, they can simply sell the contract or roll it over to the next month.
However, because of the enormous supply glut and rapidly growing shortage of storage space, no one wanted to buy up the contracts – leading to a situation where traders were being paid up to $37 to take them on.
Now June contracts have joined the rout as traders face the prospect of low demand, dwindling storage space and massive oversupply.
US President Donald Trump earlier today called for a bail out of the struggling US oil industry which faces devastation following the price crash.
“We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!” Trump said on Twitter.


cityam--2020-04-21--City minister John Glen praises frontline financial services staff for coronavirus efforts

City minister John Glen has thanked frontline financial services staff for their “ vital ” role during the coronavirus crisis .
In a letter published today , Glen said the services provided by bank branch and contact centre workers will be a “ lifeline ” to many during the pandemic .
Read more : Exclusive : Businesses call for bank-by-bank breakdown of coronavirus lending He praised the “ herculean efforts ” to help customers in financial difficulty or who are self-isolating due to Covid-19 .
The letter comes after banks were criticised for being slow to approve requests for cash @ @ @ @ @ @ @ .
Bank of England governor Andrew Bailey last week warned lenders that they should “ put their backs ” into approving applications during the coronavirus crisis .
“ Notwithstanding the stress that we ’ re all operating under in terms of the current working environment , they have got to put their backs into it and get on with it , frankly , ” Bailey said on Friday .
“ It does have to be tackled because otherwise we are going to destroy people ’ s livelihoods or get scarring of the economy.
@ @ @ @ @ @ @ coronavirus loans so far , chancellor Rishi Sunak said on Monday evening .
“ There is still a lot for us to do in the face of these challenges , and I welcome your ongoing support as we work to ensure we minimise the impact on consumers , businesses and the wider UK economy , ” Glen wrote .
Read more : Rental moves to drop 25 per cent in 2020 due to coronavirus lockdown “ As the Chancellor said , the priority for all of us – financial services and Government – @ @ @ @ @ @ @ of the extraordinary package of support we have provided are passed through to businesses and consumers .
“ I commend you all for making a hugely valuable and critical contribution to the resilience of our nation at this most challenging time .
”

City minister John Glen praises frontline financial services staff for coronavirus efforts
City minister John Glen has thanked frontline financial services staff for their “vital” role during the coronavirus crisis.
In a letter published today, Glen said the services provided by bank branch and contact centre workers will be a “lifeline” to many during the pandemic.
He praised the “herculean efforts” to help customers in financial difficulty or who are self-isolating due to Covid-19.
The letter comes after banks were criticised for being slow to approve requests for cash under the coronavirus business interruption loan scheme.
Bank of England governor Andrew Bailey last week warned lenders that they should “put their backs” into approving applications during the coronavirus crisis.
“Notwithstanding the stress that we’re all operating under in terms of the current working environment, they have got to put their backs into it and get on with it, frankly,” Bailey said on Friday.
“It does have to be tackled because otherwise we are going to destroy people’s livelihoods or get scarring of the economy.”
Around 12,000 businesses have received the coronavirus loans so far, chancellor Rishi Sunak said on Monday evening.
“There is still a lot for us to do in the face of these challenges, and I welcome your ongoing support as we work to ensure we minimise the impact on consumers, businesses and the wider UK economy,” Glen wrote.
“As the Chancellor said, the priority for all of us – financial services and Government – should be to ensure that the benefits of the extraordinary package of support we have provided are passed through to businesses and consumers.
“I commend you all for making a hugely valuable and critical contribution to the resilience of our nation at this most challenging time.”


cityam--2020-04-21--Rental moves to drop 25 per cent in 2020 due to coronavirus lockdown

Rental moves are set to fall by a quarter this year due to the impact of the coronavirus lockdown , according to the latest research .
There are around 1.2m moves each year in the UK lettings market , but the number is expected to plummet 25 per cent in 2020 compared to last year .
Read more : Rent payments must be maintained where possible , say landlords However , demand for rented properties has bounced back 30 per cent in the two weeks to 14 April , after falling 57 per cent in the fortnight to 30 March @ @ @ @ @ @ @ levels will rise to match previous years ’ levels in the third and fourth quarters , which are typically busier seasonal periods for rental moves .
Rental growth is expected to slow in 2020 , but to remain in positive territory .
Year-on-year average UK rental growth in March was 2.4 per cent , compared to the 2.5 per cent annual jump recorded in February .
In London , rental growth was 1.7 per cent , down from 2.3 per cent the previous month .
“ The flexibility of the rental market is @ @ @ @ @ @ @ allowed activity to bounce back more quickly than other parts of the property market , ” said Grainne Gilmore , head of research at Zoopla .
“ The rise in demand in the first two weeks in April indicates that some tenants are already mapping out their next move .
“ As with the whole housing market however , activity levels and rental growth will likely be closely aligned to the economic landscape of the UK once the lockdown eases and the immediate impact of Covid-19 starts to recede.
” She added : @ @ @ @ @ @ @ to a rise in unemployment , as some official bodies have forecast , this will reduce the scope for any additional growth in rents .
We expect growth to moderate this year , but to remain in positive territory .
”

Rental moves to drop 25 per cent in 2020 due to coronavirus lockdown
Rental moves are set to fall by a quarter this year due to the impact of the coronavirus lockdown, according to the latest research.
There are around 1.2m moves each year in the UK lettings market, but the number is expected to plummet 25 per cent in 2020 compared to last year.
However, demand for rented properties has bounced back 30 per cent in the two weeks to 14 April, after falling 57 per cent in the fortnight to 30 March.
Property platform Zoopla forecast that activity levels will rise to match previous years’ levels in the third and fourth quarters, which are typically busier seasonal periods for rental moves.
Rental growth is expected to slow in 2020, but to remain in positive territory. Year-on-year average UK rental growth in March was 2.4 per cent, compared to the 2.5 per cent annual jump recorded in February.
In London, rental growth was 1.7 per cent, down from 2.3 per cent the previous month.
“The flexibility of the rental market is one of the key factors which has allowed activity to bounce back more quickly than other parts of the property market,” said Grainne Gilmore, head of research at Zoopla.
“The rise in demand in the first two weeks in April indicates that some tenants are already mapping out their next move.
“As with the whole housing market however, activity levels and rental growth will likely be closely aligned to the economic landscape of the UK once the lockdown eases and the immediate impact of Covid-19 starts to recede.”
She added: “If the responses to Covid-19 contribute to a rise in unemployment, as some official bodies have forecast, this will reduce the scope for any additional growth in rents. We expect growth to moderate this year, but to remain in positive territory.”


cityam--2020-04-21--Oil: Where do we go from here?

Oil: Where do we go from here?

Oil has collapsed .
So how did we get here ?
Oil has fallen roughly 70 % YTD , one of the biggest falls in history , as a result of a combination of supply and demand factors .
When Covid-19 was first announced the markets were hesitant about its impact and continued to trade as normal until it started to spread internationally and doubt first started creeping into its price .
The rest is history , with cases spreading rapidly , the WHO declaring a pandemic and the world starting to take the virus seriously , introducing severe lockdown @ @ @ @ @ @ @ therefore reducing oil prices .
What wasn ’ t helpful for oil ’ s case was the oversupply that preceded the virus .
US shale producers had been saturating the market causing prices to fall and has been another factor exacerbating the fall in oil .
Read more : Brent falls too as oil fear grips the globe Just as everything couldn ’ t get much worse for oil , OPEC and Russia failed to reach an agreement to cut supply in early March instead resulting in an increase of production to an @ @ @ @ @ @ @ where the issue starts to build , as with all of this new oil flooding into markets , storage capacity was going to be pressured .
At these current production levels , storage was not sustainable and would require oil to be stored offshore on large tankers which was the reason why charges for hire of these tankers spiked as a result of demand .
This was the push over the edge for oil , causing prices to plummet .
Following this , news of rising Covid-19 cases and the announcement of stricter @ @ @ @ @ @ @ , oil has been pulled down by both the supply angle as a result of political feuds and the demand side with low business and consumer demand .
Airliners are grounded , manufacturing is weak and therefore there is no certainty over when oil will be required again , putting it against the ropes .
A deal was always inevitable between OPEC and Russia which finally agreed to cut production by 10 % , yet has failed to have an impact on price as future demand forecasts weigh on investor sentiment .
And @ @ @ @ @ @ @ oil for the first time on record has hit negative price levels .
This is largely a short-term cause due to storage capacity but nevertheless highlights the strange market dynamic we ’ re currently in .
May WTI futures are approaching expiration meaning physical delivery of the asset awaits ; therefore with no place to store oil , sellers are effectively paying buyers to take the oil off their hands reducing the burden of storage .
When we look at June futures , these remain positive .
Where do we go from here @ @ @ @ @ @ @ see evidence of economies returning to work and the economic cog starting to turn more efficiently again , this is when we ’ re likely to see oil prices starting to gain traction , however until then it ’ s a guessing game .
Many will say that oil can ’ t go much lower but there is still downside risk in the fact that there may be a second wave of infections prolonging the demand requirement for oil which would further hurt .
It is clear the current production cut is not @ @ @ @ @ @ @ that a further cut will be announced however this does not change the demand side to this equation which appears to be the primary force behind oil prices .
With still no clear signs of returning demand and economists forecasting one of the worst market pullbacks in economic activity in history , volatility in oil is likely to remain .
Airlines are grounded , manufacturing remains weak and general business activity is still generally stagnant , therefore there is a still much uncertainty over when demand will return .
The path ahead remains @ @ @ @ @ @ @ easing are nowhere to be seen .
Despite new case growth slowing , the caution over a second outbreak should economies reopen could prolong troubles for some time still , something that oil definitely doesn ’ t need right now .
These events could well have a lasting impact on the commodity , which is commonly owned as a safe inflation-protected investment in portfolios and highlights the disruption and danger the combination of politics and oil can have .

Oil: Where do we go from here?
Oil has collapsed. So how did we get here?
Oil has fallen roughly 70% YTD, one of the biggest falls in history, as a result of a combination of supply and demand factors.
When Covid-19 was first announced the markets were hesitant about its impact and continued to trade as normal until it started to spread internationally and doubt first started creeping into its price. The rest is history, with cases spreading rapidly, the WHO declaring a pandemic and the world starting to take the virus seriously, introducing severe lockdown measures which unsurprisingly restricted economic activity, therefore reducing oil prices. What wasn’t helpful for oil’s case was the oversupply that preceded the virus. US shale producers had been saturating the market causing prices to fall and has been another factor exacerbating the fall in oil.
Read more: Brent falls too as oil fear grips the globe
Just as everything couldn’t get much worse for oil, OPEC and Russia failed to reach an agreement to cut supply in early March instead resulting in an increase of production to an already saturated market. Now this is where the issue starts to build, as with all of this new oil flooding into markets, storage capacity was going to be pressured. At these current production levels, storage was not sustainable and would require oil to be stored offshore on large tankers which was the reason why charges for hire of these tankers spiked as a result of demand. This was the push over the edge for oil, causing prices to plummet.
Following this, news of rising Covid-19 cases and the announcement of stricter lockdowns dragged prices even lower. Therefore, oil has been pulled down by both the supply angle as a result of political feuds and the demand side with low business and consumer demand. Airliners are grounded, manufacturing is weak and therefore there is no certainty over when oil will be required again, putting it against the ropes. A deal was always inevitable between OPEC and Russia which finally agreed to cut production by 10%, yet has failed to have an impact on price as future demand forecasts weigh on investor sentiment.
And now we are here, where WTI oil for the first time on record has hit negative price levels. This is largely a short-term cause due to storage capacity but nevertheless highlights the strange market dynamic we’re currently in. May WTI futures are approaching expiration meaning physical delivery of the asset awaits; therefore with no place to store oil, sellers are effectively paying buyers to take the oil off their hands reducing the burden of storage. When we look at June futures, these remain positive.
Where do we go from here?
As soon as we start to see evidence of economies returning to work and the economic cog starting to turn more efficiently again, this is when we’re likely to see oil prices starting to gain traction, however until then it’s a guessing game. Many will say that oil can’t go much lower but there is still downside risk in the fact that there may be a second wave of infections prolonging the demand requirement for oil which would further hurt.
It is clear the current production cut is not enough to maintain balance and is likely that a further cut will be announced however this does not change the demand side to this equation which appears to be the primary force behind oil prices. With still no clear signs of returning demand and economists forecasting one of the worst market pullbacks in economic activity in history, volatility in oil is likely to remain. Airlines are grounded, manufacturing remains weak and general business activity is still generally stagnant, therefore there is a still much uncertainty over when demand will return.
The path ahead remains gloomy for oil as signs of lockdowns easing are nowhere to be seen. Despite new case growth slowing, the caution over a second outbreak should economies reopen could prolong troubles for some time still, something that oil definitely doesn’t need right now. These events could well have a lasting impact on the commodity, which is commonly owned as a safe inflation-protected investment in portfolios and highlights the disruption and danger the combination of politics and oil can have.


cityam--2020-04-21--Oxford University's coronavirus vaccine trials to start Thursday

A potential coronavirus vaccine being developed at Oxford University will have its first trials on Thursday after receiving £20m in government funding .
Health secretary Matt Hancock announced today that the government was funding the trial , along with another out of Imperial College which has been given £22.5m .
Hancock said the two teams were “ two of the leading vaccine developments taking place ” in the world .
He said : “ The best way to defeat coronavirus is through a vaccine , after all this is a new disease , this is uncertain science but I am @ @ @ @ @ @ @ ve got at developing a vaccine .
“ I can announce the vaccine from the Oxford trial will be trialled in people from this Thursday .
“ In normal times reaching this stage would take years – I ’ m very proud of the work taken so far.
” Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Hancock added that the government was also investing in manufacturing capacity if either of the trials yield a usable coronavirus vaccine .
“ @ @ @ @ @ @ @ , so that if either of these vaccines safely work we can make it available for the British people as soon as humanly possible .
“ The upside of being the first country in the world to develop a successful vaccine is so huge that I am throwing everything at it.
” Read more : Italy to relax lockdown restrictions from early May She told the BBC on Sunday that her team was hoping to have a trial vaccine up and running by September , but that it was “ very difficult to @ @ @ @ @ @ @ to administer widely .
With the new funding , the trials have now been brought forward by a full five months .

Oxford University’s coronavirus vaccine trials to start Thursday
An NHS worker goes through the testing procedure at the coronavirus testing centre for NHS staff
A potential coronavirus vaccine being developed at Oxford University will have its first trials on Thursday after receiving £20m in government funding.
Health secretary Matt Hancock announced today that the government was funding the trial, along with another out of Imperial College which has been given £22.5m.
Hancock said the two teams were “two of the leading vaccine developments taking place” in the world.
He said: “The best way to defeat coronavirus is through a vaccine, after all this is a new disease, this is uncertain science but I am certain we will throw everything we’ve got at developing a vaccine.
“I can announce the vaccine from the Oxford trial will be trialled in people from this Thursday.
“In normal times reaching this stage would take years – I’m very proud of the work taken so far.”
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Hancock added that the government was also investing in manufacturing capacity if either of the trials yield a usable coronavirus vaccine.
“We’ll invest in manufacturing capacity, so that if either of these vaccines safely work we can make it available for the British people as soon as humanly possible.
“The upside of being the first country in the world to develop a successful vaccine is so huge that I am throwing everything at it.”
Leading the Oxford University trial is professor Sarah Gilbert, a world-leading vaccinologist.
She told the BBC on Sunday that her team was hoping to have a trial vaccine up and running by September, but that it was “very difficult to predict” when it could be ready to administer widely.
With the new funding, the trials have now been brought forward by a full five months.


cityam--2020-04-22--Law and accountancy firm coronavirus partner promotion class: a poisoned chalice?

Law and accountancy firms have promoted swathes of new partners in recent days with many firms hailing the strong rounds as a signal of confidence in the future .
But with new partners typically required to stump up £50,000 to £100,000 to join partnerships , it is a potentially risky step up for the individual during the current crisis , but a boon for the firm which gets a fresh injection of capital .
Read more : PwC UK freezes pay as partners told they will shoulder financial burden of crisis Partner promotions rounds at top law firms have been @ @ @ @ @ @ @ days Eversheds Sutherland promoted 38 lawyers to partner across its non-US business – its highest total since its 2017 merger , Herbert Smith Freehills promoted 26 new partners – its largest round since its 2012 merger , Linklaters promoted 30 new partners – its second-largest round in a decade and Allen & Overy today promoted 29 lawyers to its partnership ranks .
Accountancy firm RSM this month also added 10 new partners to its partnership .
While firms have generally presented the strong promotions rounds as a reflection of their confidence in the @ @ @ @ @ @ @ capital into the business , helpful at a time when many firms are taking measures to preserve cash by cutting or delaying partner profit share .
“ It strikes me that now is a good time to promote junior partners- get them into the partner capital loan scheme and they borrow within the scheme so it recapitalises the firm… it it a cost efficient point in time to promote a whole bunch of new partners , ” one source said .
Another source said : “ Firms will be desperate for partner capital @ @ @ @ @ @ @ ” The partner promotions may have been long planned , reflecting a strong 2020 for most firms in the sector , but the new partner capital will be welcome nevertheless .
New partners are required to buy their way into the partnership with a capital contribution which can range from £50,000 to £100,000 .
Typically a firm will have an existing partner capital loan arrangement with a bank with an agreed credit limit .
New partners coming in will be added to this scheme with leaving partners dropping off .
New partners borrow @ @ @ @ @ @ @ firm to fund its working capital .
They typically receive this capital back after they leave the firm or retire .
However , If the firm goes under , partners – who rank as unsecured creditors – are unlikely to get much of their cash back while remaining personally liable to the bank for the debt .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
John Lord , a litigation partner at law firm Knights , said : “ If @ @ @ @ @ @ @ fell over tomorrow do I expect the banks to be pushing for their money the next day ?
The next week ?
The next month ?
Not necessarily , but in six-to-seven months ’ time when it wouldn ’ t be viewed as callous to pursue those monies I expect that they would .
“ It ’ s a liability .
The partner borrowed the money from the bank and then loaned the money to the LLP , and if the LLP can ’ t repay the partner , that is an issue @ @ @ @ @ @ @ to do with the bank.
” For the newly created partners , the deal is a good one if their firm rides out the present crisis .
Partnership is typically the target of most junior lawyers and accountants , giving a share in the firm ’ s profits and the opportunity to build their own book of business .
But in the event of a failure , the partnership class of 2020 could be left with an unpleasant debt to service and no income .
One law firm partner said : “ It @ @ @ @ @ @ @ survives , but a crappy one if it goes under .
”

Law and accountancy firm coronavirus partner promotions: a poisoned chalice?
Law and accountancy firms have promoted swathes of new partners in recent days with many firms hailing the strong rounds as a signal of confidence in the future.
But with new partners typically required to stump up £50,000 to £100,000 to join partnerships, it is a potentially risky step up for the individual during the current crisis, but a boon for the firm which gets a fresh injection of capital.
Partner promotions rounds at top law firms have been noticeably strong this year.
In recent days Eversheds Sutherland promoted 38 lawyers to partner across its non-US business – its highest total since its 2017 merger, Herbert Smith Freehills promoted 26 new partners – its largest round since its 2012 merger, Linklaters promoted 30 new partners – its second-largest round in a decade and Allen & Overy today promoted 29 lawyers to its partnership ranks.
Accountancy firm RSM this month also added 10 new partners to its partnership.
While firms have generally presented the strong promotions rounds as a reflection of their confidence in the future – new partners also bring fresh capital into the business, helpful at a time when many firms are taking measures to preserve cash by cutting or delaying partner profit share.
“It strikes me that now is a good time to promote junior partners- get them into the partner capital loan scheme and they borrow within the scheme so it recapitalises the firm… it it a cost efficient point in time to promote a whole bunch of new partners,” one source said.
Another source said: “Firms will be desperate for partner capital loans, it helps their covenant strength.”
The partner promotions may have been long planned, reflecting a strong 2020 for most firms in the sector, but the new partner capital will be welcome nevertheless.
New partners are required to buy their way into the partnership with a capital contribution which can range from £50,000 to £100,000.
Typically a firm will have an existing partner capital loan arrangement with a bank with an agreed credit limit.
New partners coming in will be added to this scheme with leaving partners dropping off.
New partners borrow from the bank and lend to the firm to fund its working capital. They typically receive this capital back after they leave the firm or retire.
However, If the firm goes under, partners – who rank as unsecured creditors – are unlikely to get much of their cash back while remaining personally liable to the bank for the debt.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
John Lord, a litigation partner at law firm Knights, said: “If an LLP [limited liability partnership] fell over tomorrow do I expect the banks to be pushing for their money the next day? The next week? The next month? Not necessarily, but in six-to-seven months’ time when it wouldn’t be viewed as callous to pursue those monies I expect that they would.
“It’s a liability. The partner borrowed the money from the bank and then loaned the money to the LLP, and if the LLP can’t repay the partner, that is an issue for the partner, it has nothing to do with the bank.”
For the newly created partners, the deal is a good one if their firm rides out the present crisis.
Partnership is typically the target of most junior lawyers and accountants, giving a share in the firm’s profits and the opportunity to build their own book of business.
But in the event of a failure, the partnership class of 2020 could be left with an unpleasant debt to service and no income.
One law firm partner said: “It is a good trade if the firm survives, but a crappy one if it goes under.”


cityam--2020-04-22--UK coronavirus outbreak has reached peak, says health secretary Matt Hancock

Health secretary Matt Hancock confirmed today that that the UK coronavirus outbreak has reached its peak .
Speaking in the House of Commons today , Hancock confirmed that the pandemic had hit its peak in the UK and that new cases were starting to drop .
“ As we reach – have reached the peak – and as we bring the number of new cases down , so we will introduce contact tracing at large scale , ” Hancock said .
“ The introduction of the new NHS app for contact tracing is also in development ” .
Some scientists @ @ @ @ @ @ @ already passed the peak of the virus .
Sir David Spiegelhalter , of the University of Cambridge , told the BBC that the situation was “ steadily ” but slowly improving .
Professor Carl Heneghan , director of the Centre for Evidence-Based Medicine at the University of Oxford , said yesterday that the the virus peaked in the UK on 8 April , the Telegraph reported .
However , on Sunday England ’ s deputy chief medical officer Jenny Harries said it was premature to say the UK had passed the peak , @ @ @ @ @ @ @ things are looking to be heading in the right direction ” .
The UK ’ s coronavirus death toll yesterday surpassed 17,000 after a further 823 people died after testing positive for Covid-19 .
So far , 397,670 people have been tested of which 129,044 tested positive .
The latest figures on coronavirus deaths and infections in UK hospitals will be published this afternoon .

UK coronavirus outbreak has reached peak, says health secretary Matt Hancock
Health secretary Matt Hancock confirmed today that that the UK coronavirus outbreak has reached its peak.
Speaking in the House of Commons today, Hancock confirmed that the pandemic had hit its peak in the UK and that new cases were starting to drop.
“As we reach – have reached the peak – and as we bring the number of new cases down, so we will introduce contact tracing at large scale,” Hancock said.
“The introduction of the new NHS app for contact tracing is also in development”.
Some scientists have suggested the the UK could have already passed the peak of the virus. Sir David Spiegelhalter, of the University of Cambridge, told the BBC that the situation was “steadily” but slowly improving.
Professor Carl Heneghan, director of the Centre for Evidence-Based Medicine at the University of Oxford, said yesterday that the the virus peaked in the UK on 8 April, the Telegraph reported.
However, on Sunday England’s deputy chief medical officer Jenny Harries said it was premature to say the UK had passed the peak, but she added “I do think things are looking to be heading in the right direction”.
The UK’s coronavirus death toll yesterday surpassed 17,000 after a further 823 people died after testing positive for Covid-19. So far, 397,670 people have been tested of which 129,044 tested positive.
The latest figures on coronavirus deaths and infections in UK hospitals will be published this afternoon.


cityam--2020-04-22--Arqiva’s £2bn telecoms takeover cleared by competition watchdog

A £2bn takeover of Arqiva ’ s telecoms infrastructure division by Spanish rival Cellnex has been cleared by the competition watchdog .
The merger , which agreed in October , will make Cellnex the largest independent operator of mobile masts in the UK , adding roughly 7,400 sites to its portfolio .
Read more : Cellnex snaps up Arqiva ’ s telecoms division in £2bn deal The deal will also give the Spanish firm rights to market roughly 900 additional sites across the UK serving all four mobile operators , as well as permission to use street infrastructure as locations @ @ @ @ @ @ @ boroughs .
The Competition and Markets Authority ( CMA ) launched a probe into the takeover over concerns it would reduce competition both in the supply of large infrastructure such as tower masts , as well as the smaller equipment required for the rollout of 5G .
Mobile operator Three called on regulators to intervene in the deal , stating it could inflate costs and slow down efforts to bring the high-speed network to all parts of the country .
But the watchdog today cleared the deal , concluding that Cellnex continued to @ @ @ @ @ @ @ and its expansion plans in the 5G market were “ modest ” .
At the time of the deal Cellnex boss Tobias Martinez described the merger as a “ key milestone ” for his company , which now controls roughly 53,000 mobile masts across Europe .
Paul Donovan , who was appointed Arqiva chief executive earlier this week , said the company was “ delighted ” with the decision .
“ Arqiva is now fully focused on strengthening its position as the UK ’ s number one broadcast and machine to machine infrastructure @ @ @ @ @ @ @ when these critical services are showing their value and relevance so strongly , ” he said .
Read more : Three warns of 5G threat after £2bn mobile mast merger makes new ‘ monopoly ’ Hampshire-based Arqiva will retain its TV and radio towers business , which broadcasts Freeview and digital radio services across the UK .
Arqiva had planned a mammoth £6bn float on the London Stock Exchange , but scrapped the plans in 2017 and decided to split up the business instead .

Arqiva’s £2bn telecoms takeover cleared by competition watchdog
A £2bn takeover of Arqiva’s telecoms infrastructure division by Spanish rival Cellnex has been cleared by the competition watchdog.
The merger, which agreed in October, will make Cellnex the largest independent operator of mobile masts in the UK, adding roughly 7,400 sites to its portfolio.
The deal will also give the Spanish firm rights to market roughly 900 additional sites across the UK serving all four mobile operators, as well as permission to use street infrastructure as locations for key 5G sites in 14 London boroughs.
The Competition and Markets Authority (CMA) launched a probe into the takeover over concerns it would reduce competition both in the supply of large infrastructure such as tower masts, as well as the smaller equipment required for the rollout of 5G.
Mobile operator Three called on regulators to intervene in the deal, stating it could inflate costs and slow down efforts to bring the high-speed network to all parts of the country.
But the watchdog today cleared the deal, concluding that Cellnex continued to face competition from other mobile mast suppliers and its expansion plans in the 5G market were “modest”.
At the time of the deal Cellnex boss Tobias Martinez described the merger as a “key milestone” for his company, which now controls roughly 53,000 mobile masts across Europe.
Paul Donovan, who was appointed Arqiva chief executive earlier this week, said the company was “delighted” with the decision.
“Arqiva is now fully focused on strengthening its position as the UK’s number one broadcast and machine to machine infrastructure solutions provider, particularly at a time when these critical services are showing their value and relevance so strongly,” he said.
Hampshire-based Arqiva will retain its TV and radio towers business, which broadcasts Freeview and digital radio services across the UK.
Arqiva had planned a mammoth £6bn float on the London Stock Exchange, but scrapped the plans in 2017 and decided to split up the business instead.


cityam--2020-04-22--Dominic Raab quashes universal basic income proposal

Dominic Raab has said the government will not consider a proposal put forward by 100 opposition MPs that calls for a universal basic income .
Raab , speaking at Prime Minister ’ s Questions in replacement of Boris Johnson , said he “ doesn ’ t agree ” that the government should hand out universal income during the Covid-19 crisis .
Read more : Bank governor Andrew Bailey warns against lifting coronavirus measures too quickly “ The chancellor has quite rightly adopted and announced a series of measures , second to none in the world , to support workers though @ @ @ @ @ @ @ sure people who don ’ t qualify get an increase in Universal Credit , ” he said .
“ We need to have a very focussed approach and giving resources to those that need it most .
“ With a universal income without being based on need wouldn ’ t provide that.
” A letter , published in the FT today , signed by more than 100 opposition MPs called for a universal basic income for every Briton to limit the fallout of the coronavirus crisis .
Westminster SNP leader Ian Blackford , @ @ @ @ @ @ @ shadow chancellor John McDonnell all signed the letter .
No one from Labour ’ s frontbench has put their name to the proposal .
Blackford , speaking at PMQs , said it was “ right economic policy at the right time ” .
“ The simple fact is that many people are being left behind , many people are not getting an income right now , ” he said .
It was also the first PMQs to feature new Labour leader Sir Keir Starmer , who began by asking Raab how Public Health @ @ @ @ @ @ @ target of administering 100,000 coronavirus tests per day by the end of the month .
Yesterday , just 18,000 tests were administered despite there being capacity for 40,000 .
Raab said : “ We are working with a range of commercial partners to boost the testing to get to that 100 , 000 tests a day .
“ Two of our super labs are now fully functional and the Glasgow [ super lab ] will be open later this week .
”

Dominic Raab quashes universal basic income proposal
Foreign Secretary Dominic Raab leaves from 10 Downing Street in central London on April 22, 2020, en-route to attend Prime Minister’s Question time (PMQs)
Dominic Raab has said the government will not consider a proposal put forward by 100 opposition MPs that calls for a universal basic income.
Raab, speaking at Prime Minister’s Questions in replacement of Boris Johnson, said he “doesn’t agree” that the government should hand out universal income during the Covid-19 crisis.
“The chancellor has quite rightly adopted and announced a series of measures, second to none in the world, to support workers though the job retention scheme, to make sure people who don’t qualify get an increase in Universal Credit,” he said.
“We need to have a very focussed approach and giving resources to those that need it most.
“With a universal income without being based on need wouldn’t provide that.”
A letter, published in the FT today, signed by more than 100 opposition MPs called for a universal basic income for every Briton to limit the fallout of the coronavirus crisis.
Westminster SNP leader Ian Blackford, Liberal Democrats leader Ed Davey and former shadow chancellor John McDonnell all signed the letter.
No one from Labour’s frontbench has put their name to the proposal.
Blackford, speaking at PMQs, said it was “right economic policy at the right time”.
“The simple fact is that many people are being left behind, many people are not getting an income right now,” he said.
It was also the first PMQs to feature new Labour leader Sir Keir Starmer, who began by asking Raab how Public Health England would hit the government’s target of administering 100,000 coronavirus tests per day by the end of the month.
Yesterday, just 18,000 tests were administered despite there being capacity for 40,000.
Raab said: “We are working with a range of commercial partners to boost the testing to get to that 100, 000 tests a day.
“Two of our super labs are now fully functional and the Glasgow [super lab] will be open later this week.”


cityam--2020-04-22--It's official: Coronavirus killed UK house prices' Brexit recovery

Signs of recovery in UK house prices at the start of the year have been brought to an abrupt halt by the coronavirus crisis .
Figures from the Land Registry and the ONS show inflation fell back to 1.1 per cent in February after climbing to an eight-month high of 1.5 per cent in January .
The UK housing market started 2020 on the front foot after the so-called Boris Bounce reduced uncertainty .
Bank of England data shows mortgage approvals for house purchases rose to 73,546 in February .
It is the highest level since January 2014 .
December @ @ @ @ @ @ @ confidence and reduced uncertainties .
February ’ s Rics survey said new buyer enquiries , agreed sales and fresh listings all increased .
However , Howard Archer , chief economic adviser to the EY Item Club , said activity and house prices have taken a huge hit from the coronavirus crisis during March .
It reflects ” the increasing restrictions on people ’ s movements as well as the impact on confidence and economic activity.
” Social distancing measures mean estate agents and potential buyers are unable to visit properties .
Meanwhile , @ @ @ @ @ @ @ restrict new mortgages .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
UK house prices have dipped during the nationwide lockdown as the housing market struggles with the restrictions .
Rightmove data released this week showed that the average price of property coming to market dipped 0.2 per cent to £311,950 .
In April last year UK house prices increased 2.1 per cent .
The firm said the statistics were not “ meaningful ” as there is no “ functioning @ @ @ @ @ @ @ Archer said house prices will come under downward pressure from a sharp rise in unemployment and a hit to incomes .
Read more : UK house prices face unpredictable blow from coronavirus after March rise Activity will pick up once lockdown is lifted .
However , Archer warns that the anticipated rise in unemployment means the market won ’ t return to the levels seen at the start of 2020 for some time .
Gareth Lewis , commercial director of MT Finance , said March and April figures are likely “ to show @ @ @ @ @ @ @ purchases dries up ” .
Get the news as it happens by following City A.M. on Twitter .

It’s official: Coronavirus killed UK house prices’ Brexit recovery
Signs of recovery in UK house prices at the start of the year have been brought to an abrupt halt by the coronavirus crisis.
Figures from the Land Registry and the ONS show inflation fell back to 1.1 per cent in February after climbing to an eight-month high of 1.5 per cent in January.
The UK housing market started 2020 on the front foot after the so-called Boris Bounce reduced uncertainty. Bank of England data shows mortgage approvals for house purchases rose to 73,546 in February. It is the highest level since January 2014.
December’s decisive general election result increased confidence and reduced uncertainties. February’s Rics survey said new buyer enquiries, agreed sales and fresh listings all increased.
However, Howard Archer, chief economic adviser to the EY Item Club, said activity and house prices have taken a huge hit from the coronavirus crisis during March. It reflects ” the increasing restrictions on people’s movements as well as the impact on confidence and economic activity.”
Social distancing measures mean estate agents and potential buyers are unable to visit properties. Meanwhile, some mortgage lenders have started to temporarily restrict new mortgages.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
UK house prices come under downward pressure
UK house prices have dipped during the nationwide lockdown as the housing market struggles with the restrictions. Rightmove data released this week showed that the average price of property coming to market dipped 0.2 per cent to £311,950. In April last year UK house prices increased 2.1 per cent.
The firm said the statistics were not “meaningful” as there is no “functioning market” due to the lockdown.
Archer said house prices will come under downward pressure from a sharp rise in unemployment and a hit to incomes.
Activity will pick up once lockdown is lifted. However, Archer warns that the anticipated rise in unemployment means the market won’t return to the levels seen at the start of 2020 for some time.
Gareth Lewis, commercial director of MT Finance, said March and April figures are likely “to show a distinct change as the volume of purchases dries up”.
Get the news as it happens by following City A.M. on Twitter.