cityam--2020-06-09--Five questions mid-market businesses need to ask about risk management today

In this article , I consider the five key questions a mid-market business should ask themselves when it comes to risk management in the current environment .
Are you clear about the key risks facing your business ?
If recent months have taught business leaders anything , it should be that to survive – let alone thrive – in turbulent times requires being prepared for the unexpected .
Not many ( any ? )
will have planned for a global pandemic , but maybe some businesses were better equipped to manage risks than others .
For example , for the @ @ @ @ @ @ @ whether they might need the flexibility in their Finance operations to scale up or down quickly ; how to access key management information they need if normal activities were disrupted and how to access new types of expertise in support of managing their business in turbulent times .
The key to this sense of being ready for anything is effective risk management – ensuring you are clear about the key risks to your business and ability to deliver your business plan .
Do you have a clear idea of their potential impact ?
@ @ @ @ @ @ @ Not all will end up having the same impact on your business .
And not all are equally likely .
This taxonomy – big or small impact , high or low probability – is the most common way businesses assess risks .
However , even apparently low-impact risks need to be closely watched as major incidents for a business can result from a series of minor issues , mistakes and missed chances to contain things .
One situation we often see is where a business does not have strong finance processes and controls @ @ @ @ @ @ @ of the Finance Function , taking with them all kinds of informal wisdom about how things are done , none of which has ever been written down , can have a huge impact .
How are these risks being managed and who is leading this process ?
Having identified the risks facing your business , you need to know who is in charge of managing them .
The most important task to start with is allocating enough time and resource to identify the risks you face across the full operational remit of your @ @ @ @ @ @ @ alike and there is no comprehensive checklist to follow .
Instead this requires whoever leads the risk process to be familiar with all parts of the business , to be able to rely on a good incident reporting culture across the business and be used to asking difficult questions – which is why it is often a good idea to hand responsibility for this to the CFO – provided they have the time to focus on this .
How often do you review these risks ?
There is no such thing as a @ @ @ @ @ @ @ be a constant process of measuring and monitoring across the business .
Previously , these updates may have depended on the rhythm of your sector and general business environment and other reporting within the business .
But when faced with increased disruption and volatility you may find the need to assess risks and their potential impact more frequently .
Whatever interval is chosen , this needs to include a proper assessment and not a box-ticking exercise or a cursory glance .
Does the person responsible have access to the right skills within your @ @ @ @ @ @ @ questions about the range of inputs needed to make sense of the risks facing any mid-market business .
Right now , along with obvious expertise in areas of finance , economics , politics and technology , whoever is putting a thorough risk report together needs to be aware of previously unconsidered areas , such the wider public health implications of any decisions , not to mention identifying the risks to manage when planning for re-opening for business after a global pandemic .
And it may be necessary to consider looking beyond the skills @ @ @ @ @ @ @ the support of external consultants or experts to provide support in these specialist areas .
Understand how EY Absolute can help you improve both your finance operations and your bottom line : ey.com/eya

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Five questions mid-market businesses need to ask about risk management today
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In this article, I consider the five key questions a mid-market business should ask themselves when it comes to risk management in the current environment.
Are you clear about the key risks facing your business?
If recent months have taught business leaders anything, it should be that to survive – let alone thrive – in turbulent times requires being prepared for the unexpected. Not many (any?) will have planned for a global pandemic, but maybe some businesses were better equipped to manage risks than others. For example, for the Finance Function perhaps, they had considered whether they might need the flexibility in their Finance operations to scale up or down quickly; how to access key management information they need if normal activities were disrupted and how to access new types of expertise in support of managing their business in turbulent times. The key to this sense of being ready for anything is effective risk management – ensuring you are clear about the key risks to your business and ability to deliver your business plan.
Do you have a clear idea of their potential impact?
Not all risks are born equal. Not all will end up having the same impact on your business. And not all are equally likely. This taxonomy – big or small impact, high or low probability – is the most common way businesses assess risks. However, even apparently low-impact risks need to be closely watched as major incidents for a business can result from a series of minor issues, mistakes and missed chances to contain things. One situation we often see is where a business does not have strong finance processes and controls and the loss of a key member of the Finance Function, taking with them all kinds of informal wisdom about how things are done, none of which has ever been written down, can have a huge impact.
How are these risks being managed and who is leading this process?
Having identified the risks facing your business, you need to know who is in charge of managing them. The most important task to start with is allocating enough time and resource to identify the risks you face across the full operational remit of your business. No two businesses are exactly alike and there is no comprehensive checklist to follow. Instead this requires whoever leads the risk process to be familiar with all parts of the business, to be able to rely on a good incident reporting culture across the business and be used to asking difficult questions – which is why it is often a good idea to hand responsibility for this to the CFO – provided they have the time to focus on this.
How often do you review these risks?
There is no such thing as a static risk register. It has to be a constant process of measuring and monitoring across the business. Previously, these updates may have depended on the rhythm of your sector and general business environment and other reporting within the business. But when faced with increased disruption and volatility you may find the need to assess risks and their potential impact more frequently. Whatever interval is chosen, this needs to include a proper assessment and not a box-ticking exercise or a cursory glance.
Does the person responsible have access to the right skills within your business?
The pandemic has also raised questions about the range of inputs needed to make sense of the risks facing any mid-market business. Right now, along with obvious expertise in areas of finance, economics, politics and technology, whoever is putting a thorough risk report together needs to be aware of previously unconsidered areas, such the wider public health implications of any decisions, not to mention identifying the risks to manage when planning for re-opening for business after a global pandemic. And it may be necessary to consider looking beyond the skills available within your business and to seek the support of external consultants or experts to provide support in these specialist areas.
Understand how EY Absolute can help you improve both your finance operations and your bottom line: ey.com/eya


cityam--2020-06-09--Is the government brave enough to let markets fix the social care crisis?

We have all seen , with the direst of consequences , the deficiencies of the current social care system .
As Covid-19 has raged through the UK , tens of thousands have died in under-resourced , under-invested , and ill-designed care homes .
With the focus in those early weeks on protecting the NHS at all costs , central planners sent potentially infectious patients back from hospital and into care homes , risking the lives of those the state was meant to be looking after .
Read more : The key to fixing the housing and social care sectors — @ @ @ @ @ @ @ has realised the state the care sector is in .
Now there is talk of even greater state involvement to fix it .
We have seen before the reflex of Whitehall towards an industry that isn ’ t working .
With rail or steel or the banks , it is never long before there are loud demands for the state to take over completely .
It is the same in adult social care — the nationalisers are coming a ’ knocking .
The trouble is that the problems in the sector are caused @ @ @ @ @ @ @ much market .
To fix them , we need to work out ways to get the market working properly again .
We all know the problems .
If you need care and have few assets , it is completely free , but if you have even a small amount of savings , you are expected to fund it yourself , which in many cases means selling your home .
Council-run care homes are depressingly outdated and substandard , and care at home is delivered by the cheapest contractors , not the best .
@ @ @ @ @ @ @ been an afterthought for decades .
The whole system is broken , poorly joined-up , and wouldn ’ t work even if you doubled the budget .
Rather than just pouring more money into a failed model , we need markets to bring in new investment and end the perverse incentives that make social care such a mess .
First , rethink how we fund the building of care homes themselves .
Pension funds and insurers are desperate for secure long-term investments , particularly with office and retail property suddenly looking less attractive @ @ @ @ @ @ @ in building care homes , tens at a time in order to capture economies of scale , and lease a full-service package to the local authorities ?
Councils could provide for their caseload without having to shell out billions on building new homes .
Likewise , don ’ t give care at home to the lowest bidder without regard to quality .
We have all heard the horror stories .
Instead , build new partnerships with providers using the latest recruitment and training techniques , and employ artificial intelligence and other smart technology @ @ @ @ @ @ @ in short supply .
Technology isn ’ t just for the young and strong of heart .
It has a life-changing impact on the infirm too .
With these foundations in place , you ’ ll be able to have functioning markets in other parts of the system .
Right now , you can ’ t insure for social care in later life because there ’ s a chance that you might need several years in an expensive care home , and insurers can ’ t price that uncertainty profitably .
So let @ @ @ @ @ @ @ years of care , with the government picking up the “ long tail ” risk .
This would encourage people to plan responsibly for their old age , while given the government more resources to step in when needed — another rational partnership between public and private .
There are lots of other ways to enable the market and the government to work together on providing care : an Australian-style voucher or repayable bond system , for example , or even tax-free personal saving accounts for care purposes .
Campaigners for nationalisation are @ @ @ @ @ @ @ is in , but the world is full of possibilities beyond the cold , stale option of public ownership .
At this critical time , the government must be brave enough to consider the full range of options — options that are far more likely to end the crisis in social care than the heavy hand of Whitehall .
Fixing Social Care : New funding , new methods , new partnerships is published by the Adam Smith Institute today and is available here .
Get City A.M. columnists ’ views delivered straight to @ @ @ @ @ @ @ newsletter .

Is the government brave enough to let markets fix the social care crisis?
We have all seen, with the direst of consequences, the deficiencies of the current social care system.
As Covid-19 has raged through the UK, tens of thousands have died in under-resourced, under-invested, and ill-designed care homes.
With the focus in those early weeks on protecting the NHS at all costs, central planners sent potentially infectious patients back from hospital and into care homes, risking the lives of those the state was meant to be looking after.
Belatedly, the government has realised the state the care sector is in. Now there is talk of even greater state involvement to fix it.
We have seen before the reflex of Whitehall towards an industry that isn’t working. With rail or steel or the banks, it is never long before there are loud demands for the state to take over completely. It is the same in adult social care — the nationalisers are coming a’knocking.
The trouble is that the problems in the sector are caused by too much government rather than too much market. To fix them, we need to work out ways to get the market working properly again.
We all know the problems. If you need care and have few assets, it is completely free, but if you have even a small amount of savings, you are expected to fund it yourself, which in many cases means selling your home. Council-run care homes are depressingly outdated and substandard, and care at home is delivered by the cheapest contractors, not the best. Mental health and adult social care have been an afterthought for decades.
The whole system is broken, poorly joined-up, and wouldn’t work even if you doubled the budget. Rather than just pouring more money into a failed model, we need markets to bring in new investment and end the perverse incentives that make social care such a mess.
First, rethink how we fund the building of care homes themselves. Pension funds and insurers are desperate for secure long-term investments, particularly with office and retail property suddenly looking less attractive. Why not encourage them to invest in building care homes, tens at a time in order to capture economies of scale, and lease a full-service package to the local authorities? Councils could provide for their caseload without having to shell out billions on building new homes.
Likewise, don’t give care at home to the lowest bidder without regard to quality. We have all heard the horror stories. Instead, build new partnerships with providers using the latest recruitment and training techniques, and employ artificial intelligence and other smart technology to manage care when human beings are in short supply.
Technology isn’t just for the young and strong of heart. It has a life-changing impact on the infirm too.
With these foundations in place, you’ll be able to have functioning markets in other parts of the system. Right now, you can’t insure for social care in later life because there’s a chance that you might need several years in an expensive care home, and insurers can’t price that uncertainty profitably. So let people insure for, say, six years of care, with the government picking up the “long tail” risk.
This would encourage people to plan responsibly for their old age, while given the government more resources to step in when needed — another rational partnership between public and private.
There are lots of other ways to enable the market and the government to work together on providing care: an Australian-style voucher or repayable bond system, for example, or even tax-free personal saving accounts for care purposes.
Campaigners for nationalisation are rightly horrified at the state the sector is in, but the world is full of possibilities beyond the cold, stale option of public ownership.
At this critical time, the government must be brave enough to consider the full range of options — options that are far more likely to end the crisis in social care than the heavy hand of Whitehall.
Fixing Social Care: New funding, new methods, new partnerships is published by the Adam Smith Institute today and is available here.
Get City A.M. columnists’ views delivered straight to your inbox in our daily Midday Update newsletter.
Main image credit: Getty


cityam--2020-06-09--Coronavirus business loan borrowing nears £35bn but CBILS approval rate languishes

British businesses have borrowed almost £35bn under the government ’ s three emergency coronavirus credit programmes , but the approval rate for coronavirus business interruption loans ( CBILS ) remains just over 50 per cent .
The bounce back loan scheme , which supports small businesses with 100 per cent state-backed loans , continued to see the strongest demand , according to new figures from the Treasury .
Total lending under the bounce back scheme rose to £23.8bn by 7 June , up from £21.3bn a week earlier .
Some 782,246 small businesses have received bounce back loans from British @ @ @ @ @ @ @ Treasury to incentivise private investors to protect SMEs from collapse Bounce back loans allow small businesses to receive a loan worth a quarter of their turnover , up to £50,000 , within as little as 24 hours .
The figure represents a slightly smaller increase in bounce back lending than the previous week , Treasury data showed , with an approval rate of 81 per cent .
Before the Open newsletter : Start your day with the City View podcast and key market data The approval rate for CBILS remained significantly lower than @ @ @ @ @ @ @ 51 per cent .
Of the 93,305 businesses that applied for a loan under the scheme , just 47,650 were approved .
As of 7 June , a total of £9.6bn had been lent to businesses under the CBILS scheme , which carries an 80 per cent government guarantee , up from £8.9bn a week earlier .
Applications for the Coronavirus Large Business Interruption Loan Scheme ( CLBILS ) continued to have the lowest approval rate of any of the government-backed loans at 40 per cent .
Read more : Coronavirus : Cabinet @ @ @ @ @ @ @ social distancing rule ’ Some 615 larger businesses have applied for loans under the scheme , but just 244 of those applications have been approved .
A total of £1.57bn has so far been lent out under CLBILS , an increase of £500m on the previous week .

Coronavirus business loan borrowing nears £35bn but CBILS approval rate languishes
Customers queue to enter a Lloyds bank in Barrow-in-Furness
British businesses have borrowed almost £35bn under the government’s three emergency coronavirus credit programmes, but the approval rate for coronavirus business interruption loans (CBILS) remains just over 50 per cent.
The bounce back loan scheme, which supports small businesses with 100 per cent state-backed loans, continued to see the strongest demand, according to new figures from the Treasury.
Total lending under the bounce back scheme rose to £23.8bn by 7 June, up from £21.3bn a week earlier. Some 782,246 small businesses have received bounce back loans from British lenders.
Read more: Businesses urge Treasury to incentivise private investors to protect SMEs from collapse
Bounce back loans allow small businesses to receive a loan worth a quarter of their turnover, up to £50,000, within as little as 24 hours.
The figure represents a slightly smaller increase in bounce back lending than the previous week, Treasury data showed, with an approval rate of 81 per cent.
Before the Open newsletter: Start your day with the City View podcast and key market data
The approval rate for CBILS remained significantly lower than for bounce back loans at just over 51 per cent. Of the 93,305 businesses that applied for a loan under the scheme, just 47,650 were approved.
As of 7 June, a total of £9.6bn had been lent to businesses under the CBILS scheme, which carries an 80 per cent government guarantee, up from £8.9bn a week earlier.
Applications for the Coronavirus Large Business Interruption Loan Scheme (CLBILS) continued to have the lowest approval rate of any of the government-backed loans at 40 per cent.
Read more: Coronavirus: Cabinet ministers ‘push to cut two metre social distancing rule’
Some 615 larger businesses have applied for loans under the scheme, but just 244 of those applications have been approved.
A total of £1.57bn has so far been lent out under CLBILS, an increase of £500m on the previous week.


cityam--2020-06-09--FTSE 100 drops as Johnson prepares to outline plan to ease lockdown

The FTSE 100 sunk into the red on Tuesday as Prime Minister Boris Johnson prepares to outline further measures to ease the Covid-19 lockdown .
The blue-chip index was expected to open in the green after the UK reported its lowest tally of coronavirus deaths since lockdown began yesterday , with London reporting no new Covid deaths , but instead dropped as much as 1.47 per cent .
Read more : London reports no new coronavirus deaths since early days of pandemic British American Tobacco ( BAT ) helped drag the FTSE 100 lower , after the cigarette maker cut @ @ @ @ @ @ @ a trading update issued this morning .
BAT fell as much as 3.65 per cent after reporting that demand had been hit by prolonged lockdowns in South Africa and Mexico and weak sales in countries including Bangladesh and Vietnam .
Housebuilder Bellway also weighed on the blue-chip index , falling over two per cent following its announcement that it had sold fewer homes between August and May .
The mid-cap FTSE 250 dropped as much as 1.48 per cent in morning trading .
Before the Open newsletter : Start your day with the @ @ @ @ @ @ @ “ The rampant bullishness of the past week has suffered a reverse , as indices drop back sharply , with the positive impact of the US jobs report fading , ” said IG chief market analyst Chris Beauchamp .
“ After the week-long bounce in equities we have seen some notable weakness in early trading this morning , as investors cut back positions on a thin morning for corporate and economic news , ” he continued .
“ The rally looks a little tired , as might be expected after the first week @ @ @ @ @ @ @ higher .
The positive impact from the ECB meeting and Friday ’ s US jobs report has waned , with no fresh bullish news to take their place.
” The FTSE 100 ’ s European peers started the session in the green but quickly reversed those gains and slipped back into the red .
Germany ’ s DAX slipped 1.62 per cent , while France ’ s CAC 40 fell 1.53 per cent .
The losses in European indices come after a strong performance from US stocks overnight , with the S & @ @ @ @ @ @ @ up to wipe out all losses for the year so far and the NASDAQ hitting a record high .
Asain stocks extended their gains for the ninth consecutive session on Tuesday , as the lifting of lockdown of measures fueled investor hopes of a relatively quick global economic recovery .
MSCI ’ s broadest index of Asia-Pacific shares outside of Japan advanced for a ninth straight day for its longest winning streak since early 2018 .
The Shanghai Composite added 0.62 per cent , while Hong Kong ’ s Hang Seng index added @ @ @ @ @ @ @ Nikkei 225 went against the upward trend , closing the session 0.38 per cent in the red .

FTSE 100 and European stocks drop as Wall Street rally fizzles out
The FTSE 100 sank into the red on Tuesday as Prime Minister Boris Johnson prepared to outline further measures to ease the Covid-19 lockdown.
The blue-chip index was expected to make gains after the UK reported its lowest tally of coronavirus deaths since lockdown began yesterday, with London reporting no new Covid deaths, but had instead ended the day 2.11 per cent down.
Read more: London reports no new coronavirus deaths since early days of pandemic
Wall Street also slipped into the red on Tuesday as US investors shift their focus to tomorrow’s Federal Reserve meeting, which will provide a further update on how the economic recovery from Covid-19 is faring.
In the UK, British American Tobacco (BAT) helped drag the FTSE 100 lower, after the cigarette maker cut its annual profit and revenue forecasts in a trading update issued this morning.
BAT ended the session over three per cent down after reporting that demand had been hit by prolonged lockdowns in South Africa and Mexico and weak sales in countries including Bangladesh and Vietnam.
The mid-cap FTSE 250 dropped over 2.1 per cent. Housebuilder Bellway weighed on the smaller index, falling 5.71 per cent following its announcement that it had sold fewer homes between August and May.
Before the Open newsletter: Start your day with the City View podcast and key market data
“The rampant bullishness of the past week has suffered a reverse, as indices drop back sharply, with the positive impact of the US jobs report fading,” said IG chief market analyst Chris Beauchamp.
“After the week-long bounce in equities we have seen some notable weakness… as investors cut back positions on a thin morning for corporate and economic news,” he continued.
“The rally looks a little tired, as might be expected after the first week of June saw such a strong move higher. The positive impact from the ECB meeting and Friday’s US jobs report has waned, with no fresh bullish news to take their place.”
Wall Street rally comes to an end
US stocks started the session negative, bringing to an end the recent rally that drove the Nasdaq to a record high last week and saw the S&P 500 reverse all losses for 2020 so far.
The Dow fell as much as 1.34 per cent following the open, while the Nasdaq and S&P 500 shed 0.28 per cent and 0.98 per cent respectively.
“It would be very appropriate for the market to enter a correctional move,” said Carsten Roemheld, a capital markets strategist at Fidelity International.
“A consolidation would be good and healthy to lay the foundation of potential further gains later on. I don’t think that we will see a massive drop from here. Everything within a 10 per cent correction would be alright.”
European equities slip
The FTSE 100’s European peers started the session in the green but quickly reversed those gains and slipped back into the red. Germany’s DAX slipped 1.57 per cent, while France’s CAC 40 fell 1.32 per cent.
“After an incredibly strong first week of June, Europe had a crisis of confidence on Tuesday, questioning the market’s recent rally,” said Spreadex’s Connor Campbell.
“Even a better-than-forecast Q1 GDP reading out of the Eurozone failed to help assuage investors’ fears. And that’s fair enough – after all, the 3.6 per cent slump may not be as bad as the initial 3.8 per cent reading, but it is still the worst quarterly contraction on record for the region.”
Asian shares continue to climb
Asain stocks extended their gains for the ninth consecutive session on Tuesday, as the lifting of lockdown of measures fueled investor hopes of a relatively quick global economic recovery.
Read more: Asian shares extend winning streak for ninth consecutive session
MSCI’s broadest index of Asia-Pacific shares outside of Japan advanced for a ninth straight day for its longest winning streak since early 2018. The Shanghai Composite added 0.62 per cent, while Hong Kong’s Hang Seng index added 1.73 per cent.
Japan’s Nikkei 225 went against the upward trend, closing the session 0.38 per cent in the red.


cityam--2020-06-09--Public concerned about return to normal life as shops get ready to reopen

Shops across the country may be preparing to finally reopen their doors next week , but fears are growing that the British public will be too anxious to actually visit them after spending months under coronavirus lockdown .
Those concerns have today been laid bare in a survey of more than 1,000 consumers , which suggested many people will not be quick to return to their old shopping habits .
Read more : Boris Johnson sets out plans for shops and markets to reopen Four in five people said they would be uncomfortable trying on clothes in a store , @ @ @ @ @ @ @ comfortable going out to buy groceries , despite it being a necessity .
The research , carried out by EY , suggested that 45 per cent of UK consumers believe the way they shop over the next one to two years will change , with 64 per cent saying they expect to go shopping less frequently , but will spend more when they do .
Similarly , more than half said they will be more aware of hygiene and sanitation when shopping in person .
Silvia Rindone , consumer product and retail partner @ @ @ @ @ @ @ consumer companies will need to be aware of consumers ’ heightened concerns and make every effort to mitigate anxiety if they are to prosper in this new market .
“ Adaptability has always been crucial for any consumer-facing business , but it will be more important than ever for companies if they are to emerge stronger from this pandemic and serve understandably anxious consumers.
” The report suggested that consumers are gearing themselves up to live more risk-averse lives , and made particularly grim reading for restaurant and pub owners .
More than @ @ @ @ @ @ @ to take months or years before they will return to a restaurant , and nearly three-quarters said the same about bars and pubs .
Rindone added that firms should think about “ reinventing their customer experience ” to reassure shoppers that they have minimised any risk to their health .
“ They must go the extra mile to help them feel safe and entice them back into a communal space , ” she said .
“ The browsing experience , for example , will change .
With social distancing , a person ’ @ @ @ @ @ @ @ from entering , lessening browsing time , and making the shopping experience far more transactional .
Read more : Coronavirus : Cabinet ministers ‘ push to cut two metre social distancing rule ’ Julie Carlyle , EY head of retail in the UK and Ireland , added : “ As consumer companies look to more permanently de-risk the consumer experience and step into recovery , investment in digital capabilities will be critical .
We expect to see greater use of the smartphone as an interface generally .
“ Why touch a public ATM @ @ @ @ @ @ @ code number typed into your phone could confirm your identity ?
Voice commands and face ID will be used more widely .
Cashier-free stores will become more appealing .
This is just the start .
”

Retailers get ready to reopen – but shoppers may be too scared to visit
Shops across the country may be preparing to finally reopen their doors next week, but fears are growing that the British public will be too anxious to actually visit them after spending months under coronavirus lockdown.
Those concerns have today been laid bare in a survey of more than 1,000 consumers, which suggested many people will not be quick to return to their old shopping habits.
Four in five people said they would be uncomfortable trying on clothes in a store, while only a quarter said they feel comfortable going out to buy groceries, despite it being a necessity.
The research, carried out by EY, suggested that 45 per cent of UK consumers believe the way they shop over the next one to two years will change, with 64 per cent saying they expect to go shopping less frequently, but will spend more when they do.
Similarly, more than half said they will be more aware of hygiene and sanitation when shopping in person.
Silvia Rindone, consumer product and retail partner at EY, said: “UK consumer companies will need to be aware of consumers’ heightened concerns and make every effort to mitigate anxiety if they are to prosper in this new market.
“Adaptability has always been crucial for any consumer-facing business, but it will be more important than ever for companies if they are to emerge stronger from this pandemic and serve understandably anxious consumers.”
The report suggested that consumers are gearing themselves up to live more risk-averse lives, and made particularly grim reading for restaurant and pub owners.
More than two-thirds of respondents said they expect it to take months or years before they will return to a restaurant, and nearly three-quarters said the same about bars and pubs.
Companies ‘must make consumers feel safe’
Rindone added that firms should think about “reinventing their customer experience” to reassure shoppers that they have minimised any risk to their health.
“They must go the extra mile to help them feel safe and entice them back into a communal space,” she said.
“The browsing experience, for example, will change. With social distancing, a person’s presence in-store could prevent someone else from entering, lessening browsing time, and making the shopping experience far more transactional.
Julie Carlyle, EY head of retail in the UK and Ireland, added: “As consumer companies look to more permanently de-risk the consumer experience and step into recovery, investment in digital capabilities will be critical. We expect to see greater use of the smartphone as an interface generally.
“Why touch a public ATM screen, for example, when a code number typed into your phone could confirm your identity? Voice commands and face ID will be used more widely. Cashier-free stores will become more appealing. This is just the start.”


cityam--2020-06-09--Sky announces extra £1.5m funding for small business ads

Sky has today pledged an additional £1.5m to fund free advertising for small businesses hit by coronavirus .
The scheme will provide £10,000 of funding to 150 small to medium-sized businesses ( SMEs ) in the UK that have been running for more than a year with fewer than 50 employees .
Last month Sky Media , the advertising sales arm of Sky , debuted its SME Support Scheme with a £1m fund for 100 businesses .
The fresh funding announced today brings Sky ’ s total SME investment via the scheme to £2.5m and hikes the total number of @ @ @ @ @ @ @ advertising will be delivered via Sky ’ s Adsmart platform , which allows brands to show different ads to different Sky households watching the same programme , based on factors such as location , demographic and lifestyle .
David Sanderson , director of Adsmart local and development at Sky said : “ We received over 1,000 entries in just five days when we opened the scheme — so now we ’ re extending it.
” “ SMEs have a voracious appetite for targeted TV advertising at the moment .
As lockdown eases more @ @ @ @ @ @ @ and advertising via Adsmart allows companies to reach their target audiences.
” Recipients of the original batch of funding have included small UK businesses that have been at the forefront of the fight against coronavirus , such as Scotland ’ s Charity Air Ambulance and Buckinghamshire-based care provider Care & Care .
Read more : Businesses urge Treasury to incentivise private investors to protect SMEs from collapse The additional funding comes as broadcasters continue to suffer a drought in advertising revenue as many businesses reduce activity during the coronavirus crisis .
Comcast-owned Sky @ @ @ @ @ @ @ £412m ) for the first quarter of 2020 , down 13.5 per cent on the same period last year .
Analyst Omdia has forecasted global ad revenue will drop at least 7.4 per cent in 2020 as the ripple effects of the pandemic force companies to slash advertising budgets .

Sky announces extra £1.5m funding for small business ads
Sky has today pledged an additional £1.5m to fund free advertising for small businesses hit by coronavirus.
The scheme will provide £10,000 of funding to 150 small to medium-sized businesses (SMEs) in the UK that have been running for more than a year with fewer than 50 employees.
Last month Sky Media, the advertising sales arm of Sky, debuted its SME Support Scheme with a £1m fund for 100 businesses.
The fresh funding announced today brings Sky’s total SME investment via the scheme to £2.5m and hikes the total number of small businesses supported to 250.
The advertising will be delivered via Sky’s Adsmart platform, which allows brands to show different ads to different Sky households watching the same programme, based on factors such as location, demographic and lifestyle.
David Sanderson, director of Adsmart local and development at Sky said: “We received over 1,000 entries in just five days when we opened the scheme — so now we’re extending it.”
“SMEs have a voracious appetite for targeted TV advertising at the moment. As lockdown eases more brands are returning to TV every day and advertising via Adsmart allows companies to reach their target audiences.”
Recipients of the original batch of funding have included small UK businesses that have been at the forefront of the fight against coronavirus, such as Scotland’s Charity Air Ambulance and Buckinghamshire-based care provider Care & Care.
The additional funding comes as broadcasters continue to suffer a drought in advertising revenue as many businesses reduce activity during the coronavirus crisis.
Comcast-owned Sky posted advertising revenue of $513m (£412m) for the first quarter of 2020, down 13.5 per cent on the same period last year.
Analyst Omdia has forecasted global ad revenue will drop at least 7.4 per cent in 2020 as the ripple effects of the pandemic force companies to slash advertising budgets.


cityam--2020-06-09--One in seven SME owners using personal savings to keep businesses afloat during pandemic

The coronavirus pandemic is leading small business owners to take drastic steps to keep their companies afloat , according to a new survey , with one in seven small business owners digging into their own pockets to ensure their business survives .
Small and medium sized businesses ( SMEs ) in the UK have come under intense pressure during the Covid-19 crisis , with a recent poll finding that two fifths of small businesses were at risk of shutting down permanently .
Read more : Businesses urge Treasury to incentivise private investors to protect SMEs from collapse Some 14 per @ @ @ @ @ @ @ personal savings for immediate financial support during the pandemic , according to a survey conducted by Opinium for Nucleus Commercial Finance .
Of the 503 business-owners surveyed , 44 per cent said that their companies had been negatively impacted by coronavirus and the subsequent lockdown .
A quarter of this group have already extended an existing loan or finance facility or have already taken out a new one , while seven per cent have applied for additional financing .
The government introduced the so-called bounce back loan scheme after facing criticism that its @ @ @ @ @ @ @ to smaller firms .
The bounce back scheme offers 100 per cent government-backed loans of up to £50,000 to small businesses , and has so far paid out £23.8bn to almost 800,000 SMEs .
But UK lenders have reportedly warned that up to half of the bounce back loans may never be repaid .
Before the Open newsletter : Start your day with the City View podcast and key market data Laura-Louise Cottle put £2,400 of her personal savings into her business after the cancellation of events and festivals due to Covid-19 “ @ @ @ @ @ @ @ fashion brand , Wolf Rayet .
“ I wanted to make a quick decision and decided that using my own savings was the best option , as I wanted to avoid future debts that the company might not survive , ” Cottle told City A.M. “ There are so many options from the government and lenders , but that felt quite overwhelming so I decided this was the best route.
” Cottle says her approach seems to have worked and has “ kept my company going ” .
She has used the money @ @ @ @ @ @ @ and product development .
Read more : Number of workers on UK furlough scheme nears 9m But Chirag Shah , chief executive of Nucleus Commercial Finance , said it was “ alarming ” that SME owners were restoring to using their own savings .
“ While some owners might believe that this is the best option for short-term cash flow needs , taking this measure can have a detrimental effect on the business and also their personal situation , especially if activity does not improve immediately once lockdown measures are eased .
”

One in seven SME owners using personal savings to keep businesses afloat during pandemic
The coronavirus pandemic is leading small business owners to take drastic steps to keep their companies afloat, according to a new survey, with one in seven small business owners digging into their own pockets to ensure their business survives.
Small and medium sized businesses (SMEs) in the UK have come under intense pressure during the Covid-19 crisis, with a recent poll finding that two fifths of small businesses were at risk of shutting down permanently.
Some 14 per cent of SMEs owners have used their personal savings for immediate financial support during the pandemic, according to a survey conducted by Opinium for Nucleus Commercial Finance.
Of the 503 business-owners surveyed, 44 per cent said that their companies had been negatively impacted by coronavirus and the subsequent lockdown.
A quarter of this group have already extended an existing loan or finance facility or have already taken out a new one, while seven per cent have applied for additional financing.
The government introduced the so-called bounce back loan scheme after facing criticism that its Coronavirus Business Interruption Loans were not accessible to smaller firms.
The bounce back scheme offers 100 per cent government-backed loans of up to £50,000 to small businesses, and has so far paid out £23.8bn to almost 800,000 SMEs.
But UK lenders have reportedly warned that up to half of the bounce back loans may never be repaid.
Before the Open newsletter: Start your day with the City View podcast and key market data
Laura-Louise Cottle put £2,400 of her personal savings into her business after the cancellation of events and festivals due to Covid-19 “nearly stopped sales” at her festival fashion brand, Wolf Rayet.
“I wanted to make a quick decision and decided that using my own savings was the best option, as I wanted to avoid future debts that the company might not survive,” Cottle told City A.M.
“There are so many options from the government and lenders, but that felt quite overwhelming so I decided this was the best route.”
Cottle says her approach seems to have worked and has “kept my company going”. She has used the money from her savings to invest in advertising and product development.
But Chirag Shah, chief executive of Nucleus Commercial Finance, said it was “alarming” that SME owners were restoring to using their own savings.
“While some owners might believe that this is the best option for short-term cash flow needs, taking this measure can have a detrimental effect on the business and also their personal situation, especially if activity does not improve immediately once lockdown measures are eased.”


cityam--2020-06-09--Coronavirus: UK economy set for ‘most severe downturn in modern times’

The coronavirus pandemic has dragged the UK into the “ most severe economic downturn in modern times ” with the economy set to contract over seven per cent this year , new forecasts suggest .
The UK economy is expected to shrink 7.2 per cent in 2020 and is unlikely to fully recover from the impact of Covid-19 until a vaccine or effective treatment for the virus is available , according to KPMG ’ s latest quarterly economic outlook .
“ The UK economy is amidst the most severe economic downturn in modern times , with no clear end to @ @ @ @ @ @ @ chief economist Yael Selfin .
“ Considerable uncertainty remains around the timing of a vaccine which will impact the timing and speed of the recovery , as well as the extent of any permanent damage to the economy , ” she added , warning that the pandemic would leave “ a lasting mark ” on the economy .
While KPMG expects to see a partial economic recovery in the second half of 2020 , it warned that there could be a fresh spike in unemployment later in the year as the government ’ @ @ @ @ @ @ @ comes to an end .
The scheme , which is currently paying the wages of almost nine million furloughed employees , is set to close at the end of October .
It is likely that employers will not be able to take all furloughed workers back on before the JRS ends , the report said .
Before the Open newsletter : Start your day with the City View podcast and key market data The audit firm considered four alternative scenarios for the timing of the economic recovery from the pandemic , based on @ @ @ @ @ @ @ in the UK .
Its main outcome assumes that a vaccine will be available from July next year , which it estimates would help bring GDP growth to 2.8 per cent for 2021 .
Economic recovery in 2021 could also be hampered by Brexit , the report said .
KPMG ’ s forecasts assume that the UK will reach a trade deal with the EU without tariffs or quotas by the end of 2020 , but predicts that exports could still fall back at the start of next year due to additional trade @ @ @ @ @ @ @ without a deal being reached , or if a more limited deal is struck , economic recovery would be “ much weaker ” , it added .
Read more : Number of workers on UK furlough scheme nears 9m “ Uncertainty about the course of the pandemic and the nature of future relationships with the EU is making it harder for businesses to plan and operate , ” Selfin said .
“ Government should aim to provide as much clarity as possible and offer more flexible support for businesses in the meantime .
@

Coronavirus: UK economy set for ‘most severe downturn in modern times’
The economy is expected to shrink 7.2 per cent in 2020, according to new forecasts
The coronavirus pandemic has dragged the UK into the “most severe economic downturn in modern times” with the economy set to contract over seven per cent this year, new forecasts suggest.
The UK economy is expected to shrink 7.2 per cent in 2020 and is unlikely to fully recover from the impact of Covid-19 until a vaccine or effective treatment for the virus is available, according to KPMG’s latest quarterly economic outlook.
“The UK economy is amidst the most severe economic downturn in modern times, with no clear end to the current crisis,” said KPMG chief economist Yael Selfin.
“Considerable uncertainty remains around the timing of a vaccine which will impact the timing and speed of the recovery, as well as the extent of any permanent damage to the economy,” she added, warning that the pandemic would leave “a lasting mark” on the economy.
While KPMG expects to see a partial economic recovery in the second half of 2020, it warned that there could be a fresh spike in unemployment later in the year as the government’s Job Retention Scheme (JRS) comes to an end.
The scheme, which is currently paying the wages of almost nine million furloughed employees, is set to close at the end of October. It is likely that employers will not be able to take all furloughed workers back on before the JRS ends, the report said.
Before the Open newsletter: Start your day with the City View podcast and key market data
The audit firm considered four alternative scenarios for the timing of the economic recovery from the pandemic, based on different dates for the virus being eradicated in the UK.
Its main outcome assumes that a vaccine will be available from July next year, which it estimates would help bring GDP growth to 2.8 per cent for 2021.
Economic recovery in 2021 could also be hampered by Brexit, the report said.
KPMG’s forecasts assume that the UK will reach a trade deal with the EU without tariffs or quotas by the end of 2020, but predicts that exports could still fall back at the start of next year due to additional trade frictions.
If the transition period ends without a deal being reached, or if a more limited deal is struck, economic recovery would be “much weaker”, it added.
“Uncertainty about the course of the pandemic and the nature of future relationships with the EU is making it harder for businesses to plan and operate,” Selfin said.
“Government should aim to provide as much clarity as possible and offer more flexible support for businesses in the meantime.”


cityam--2020-06-09--Brits turn their back on cash during lockdown as contactless payments jump to £957m

The average Brit has gone 44 days since using cash as new research reveals lockdown has accelerated the pivot to contactless payments .
Customer data from Nationwide shows that tap-and-pay transactions have increased 44 per cent since the week of 23 March , when Britain was placed on lockdown .
Read more : Contactless payments soar over £900m in UK lockdown Nationwide members made 78.5m contactless between 23 March and 31 May worth £957m .
In the first week of lockdown , 7.15m contactless payments worth £77.27m , growing to more than £128.13m with more than 10m payments , in @ @ @ @ @ @ @ building society ’ s research , which polled more than 2,000 people , showing the extent of the change .
More than a quarter have gone two months or more without using cash .
For some , it ’ s even longer as nearly a third say they do not remember what they last bought without cash .
Before the Open : Get the jump on the markets with our early morning newsletter There were some significant regional differences in the period , with the South East leading with 14.48m contactless payments , @ @ @ @ @ @ @ Northern Ireland .
There has also been a greater uptake of contactless payments among the over-55s , with three quarters saying they have decreased cash usage .
This compares to just 48 per cent of those between 16 and 24 , and 57 per cent of 35-44 year olds .
Before the Open newsletter : Start your day with the City View podcast and key market data The adoption of contactless payments will likely outlast the pandemic has half of respondents say they will use cash less in future , and 27 per @ @ @ @ @ @ @ in future .
It is in part because of fears around using cash during a pandemic .
One in five people have cleaned their cash because of concerns around coronavirus , with 58 per cent using antibacterial wipes .
Read more : Contactless spending limit increased in response to coronavirus Head of payments Mark Nalder said : “ Far from heralding the death of cash , a shift towards mobile payments and online and mobile banking will help people keep track of their spending and better manage their money.
” “ Although we @ @ @ @ @ @ @ to pre Covid-19 levels , it is highly likely cash usage will increase post-lockdown as the high street begins to reopen , even if that means the use of card payments – via contactless , phone or another device – rise in tandem.
” Get the news as it happens by following City A.M. on Twitter .

Brits turn their back on cash during lockdown as contactless payments jump to £957m
UK consumers turned their back on cash during the pandemic, with one in four payments in 2020 made using contactless or faster payment methods.
The average Brit has gone 44 days since using cash as new research reveals lockdown has accelerated the pivot to contactless payments.
Customer data from Nationwide shows that tap-and-pay transactions have increased 44 per cent since the week of 23 March, when Britain was placed on lockdown.
Nationwide members made 78.5m contactless between 23 March and 31 May worth £957m. In the first week of lockdown, 7.15m contactless payments worth £77.27m, growing to more than £128.13m with more than 10m payments, in the week beginning 25 May.
The building society’s research, which polled more than 2,000 people, showing the extent of the change. More than a quarter have gone two months or more without using cash. For some, it’s even longer as nearly a third say they do not remember what they last bought without cash.
Before the Open: Get the jump on the markets with our early morning newsletter
There were some significant regional differences in the period, with the South East leading with 14.48m contactless payments, compared to ust 7.39m in Scotland and Northern Ireland.
There has also been a greater uptake of contactless payments among the over-55s, with three quarters saying they have decreased cash usage. This compares to just 48 per cent of those between 16 and 24, and 57 per cent of 35-44 year olds.
Before the Open newsletter: Start your day with the City View podcast and key market data
The adoption of contactless payments will likely outlast the pandemic has half of respondents say they will use cash less in future, and 27 per cent say they will shop online more in future. It is in part because of fears around using cash during a pandemic. One in five people have cleaned their cash because of concerns around coronavirus, with 58 per cent using antibacterial wipes.
Head of payments Mark Nalder said: “Far from heralding the death of cash, a shift towards mobile payments and online and mobile banking will help people keep track of their spending and better manage their money.”
“Although we don’t expect cash to return to pre Covid-19 levels, it is highly likely cash usage will increase post-lockdown as the high street begins to reopen, even if that means the use of card payments – via contactless, phone or another device – rise in tandem.”
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-06-09--Britain's tech sector takes in $5.3bn in first half of 2020

The UK ’ s tech businesses have raised more than $ 5bn in investment so far this year , despite the impact of coronavirus weighing on funds .
Startups across the UK took in $ 5.3bn between January and May 2020 , more than the rest of Europe combined at $ 4.1bn .
Data compiled by Tech Nation and Dealroom showed London commanded the lion ’ s share of the investment at $ 4bn , with the capital ’ s fintech firms leading the way to take 39 per cent of all funding in 2020 to date .
Read more @ @ @ @ @ @ @ status as leading tech hub , says industry chief However the pair voiced concerns that the majority of these deals could have been agreed before the onset of the virus , and predicted that the second half of 2020 is likely to be much lower .
“ The government will continue to champion and support the sector as it navigates the months to come as we step up our coronavirus recovery plans , ” said digital secretary Oliver Dowden .
“ We will back entrepreneurs , encourage innovators and help businesses make the @ @ @ @ @ @ @ and tech world provides.
” The government ’ s £250m Future Fund , which matches funding for startups , has approved £55.9m of convertible loans despite receiving more than £515m worth of applications on its launch day alone in April .
Read more : Government ’ s Future Fund approves just £55.9m of convertible loans to date Tech Nation and Dealroom said recent data gathered from businesses showed two-thirds expect revenues to drop by more than a quarter this year , while almost a half of frozen all hiring .
Following a record-breaking @ @ @ @ @ @ @ UK has added seven more unicorns — startups valued at more than $ 1bn — to its roster in the last 12 months .
Its total now sits at 79 , more than twice the number of second-place Germany at 32 .
“ These numbers reflect the inherent strength of the UK tech sector and reinforce my strong belief that the UK remains an attractive destination to start and grow a successful digital business , ” said Cindy Rose , UK chief executive of Microsoft .
“ Undoubtedly , there are economic headwinds @ @ @ @ @ @ @ talent , strong startup ecosystem and the accelerated pace of technology adoption in the UK , I ’ m confident the UK tech sector will emerge strongly from this crisis and be a key factor in driving inclusive economic growth and recovery .
”

Britain’s tech sector takes in $5.3bn in first half of 2020
DCC has confirmed its next chairman
The UK’s tech businesses have raised more than $5bn in investment so far this year, despite the impact of coronavirus weighing on funds.
Startups across the UK took in $5.3bn between January and May 2020, more than the rest of Europe combined at $4.1bn.
Data compiled by Tech Nation and Dealroom showed London commanded the lion’s share of the investment at $4bn, with the capital’s fintech firms leading the way to take 39 per cent of all funding in 2020 to date.
However the pair voiced concerns that the majority of these deals could have been agreed before the onset of the virus, and predicted that the second half of 2020 is likely to be much lower.
“The government will continue to champion and support the sector as it navigates the months to come as we step up our coronavirus recovery plans,” said digital secretary Oliver Dowden.
“We will back entrepreneurs, encourage innovators and help businesses make the most out of the opportunities the digital and tech world provides.”
The government’s £250m Future Fund, which matches funding for startups, has approved £55.9m of convertible loans despite receiving more than £515m worth of applications on its launch day alone in April.
Tech Nation and Dealroom said recent data gathered from businesses showed two-thirds expect revenues to drop by more than a quarter this year, while almost a half of frozen all hiring.
Following a record-breaking year of funding in 2019, the UK has added seven more unicorns — startups valued at more than $1bn — to its roster in the last 12 months. Its total now sits at 79, more than twice the number of second-place Germany at 32.
“These numbers reflect the inherent strength of the UK tech sector and reinforce my strong belief that the UK remains an attractive destination to start and grow a successful digital business,” said Cindy Rose, UK chief executive of Microsoft.
“Undoubtedly, there are economic headwinds ahead, but with our world class talent, strong startup ecosystem and the accelerated pace of technology adoption in the UK, I’m confident the UK tech sector will emerge strongly from this crisis and be a key factor in driving inclusive economic growth and recovery.”


cityam--2020-06-09--Government unveils pandemic support package for struggling tech firms

International trade secretary Liz Truss will on Wednesday unveil a package of measures designed to help bolster the UK ’ s tech community , as businesses continue to struggle during the coronavirus pandemic .
Jointly supported by the Department for International Trade ( DIT ) and the Department for Digital , Culture , Media and Sport ( DCMS ) , the measures are aimed at helping British tech companies find new business overseas .
Primarily the government will establish a so-called Digital Trade Network , valued at £8m , for the Asia-Pacific region to aid international expansion .
It is @ @ @ @ @ @ @ talent and capital to the UK .
A new Tech Exporting Academy will be created and led by professional services firms including KPMG , EY and Deloitte to provide small tech firms with advice on how to reduce the barriers to entry for exporting goods and services .
Data from Statista in March showed the exports of almost a fifth of UK businesses were affected by coronavirus , increasing the need for government support as the pandemic continues to weigh on revenue .
Read more : Businesses urge Treasury to incentivise private investors @ @ @ @ @ @ @ agreements we are negotiating with key partners will go further than others in addressing barriers to digital trade , opening up huge opportunities for our exporters and also for inward investment into the UK , ” Truss is expected to say .
As travel is disrupted due to the ongoing pandemic , the DIT said it will create a new digital platform to help businesses unable to attend international conferences and investor meetings .
To be launched in September , it will provide access to overseas trade shows and support virtual dealmaking .
@ @ @ @ @ @ @ network established within the UK to encourage more cooperation across the regions .
In partnership with Tech Nation , 25 tech export champions will be created across the so-called Northern Powerhouse , Midlands Engine , London and the south .
“ The UK is home to a globally renowned tech-sector and we are determined to help it grow further by taking an unashamedly pro-tech approach , ” said digital secretary Oliver Dowden alongside the announcement , made at London Tech Week .
“ Through this strategy we will give tech businesses of all @ @ @ @ @ @ @ tools they need to expand their operations overseas and succeed on the world stage.
” Truss will reveal an extension of the DIT ’ s existing High Potential Opportunities tech programme , which seeks to drive foreign direct investment into emerging sectors such as 5G and immersive technology .
Finally , a new marketing campaign will be created to highlight UK fintech businesses that enable digitisation and resilience in priority export markets .
It will come alongside a separate effort to boost marketing and communications for UK Export Finance .
Tech is one @ @ @ @ @ @ @ UK economy , contributing £149bn in 2018 .
British tech companies attracted more than £10bn in investment last year , breaking new records despite the economic impact of Brexit .

Government unveils pandemic support package for struggling tech firms
International trade secretary Liz Truss will on Wednesday unveil a package of measures designed to help bolster the UK’s tech community, as businesses continue to struggle during the coronavirus pandemic.
Jointly supported by the Department for International Trade (DIT) and the Department for Digital, Culture, Media and Sport (DCMS), the measures are aimed at helping British tech companies find new business overseas.
Primarily the government will establish a so-called Digital Trade Network, valued at £8m, for the Asia-Pacific region to aid international expansion. It is also hoped the move will attract more talent and capital to the UK.
A new Tech Exporting Academy will be created and led by professional services firms including KPMG, EY and Deloitte to provide small tech firms with advice on how to reduce the barriers to entry for exporting goods and services.
Data from Statista in March showed the exports of almost a fifth of UK businesses were affected by coronavirus, increasing the need for government support as the pandemic continues to weigh on revenue.
“Trade agreements we are negotiating with key partners will go further than others in addressing barriers to digital trade, opening up huge opportunities for our exporters and also for inward investment into the UK,” Truss is expected to say.
As travel is disrupted due to the ongoing pandemic, the DIT said it will create a new digital platform to help businesses unable to attend international conferences and investor meetings. To be launched in September, it will provide access to overseas trade shows and support virtual dealmaking.
There will also be a new tech network established within the UK to encourage more cooperation across the regions. In partnership with Tech Nation, 25 tech export champions will be created across the so-called Northern Powerhouse, Midlands Engine, London and the south.
“The UK is home to a globally renowned tech-sector and we are determined to help it grow further by taking an unashamedly pro-tech approach,” said digital secretary Oliver Dowden alongside the announcement, made at London Tech Week.
“Through this strategy we will give tech businesses of all sizes and all over the country the tools they need to expand their operations overseas and succeed on the world stage.”
Truss will reveal an extension of the DIT’s existing High Potential Opportunities tech programme, which seeks to drive foreign direct investment into emerging sectors such as 5G and immersive technology.
Finally, a new marketing campaign will be created to highlight UK fintech businesses that enable digitisation and resilience in priority export markets. It will come alongside a separate effort to boost marketing and communications for UK Export Finance.
Tech is one of the strongest growing areas of the UK economy, contributing £149bn in 2018. British tech companies attracted more than £10bn in investment last year, breaking new records despite the economic impact of Brexit.


cityam--2020-06-09--Tower Hamlets removes Docklands statue of slave trader

A statue of Robert Milligan , an 18th century slave trader , was being removed from its plinth outside a London museum today after officials decided it was no longer acceptable to the local community .
The previously obscure statue , which stood in front of the Museum of London Docklands , came into focus after demonstrators taking part in a global anti-racism protest movement tore down the statue of a slave trader in Bristol .
Statues glorifying slave traders and colonialists have come into sharp focus in recent days , as part of a broader movement inspired by the @ @ @ @ @ @ @ the United States following the death of George Floyd .
Read more : Hundreds attend memorial service for George Floyd as US anti-racism protests continue “ While it ’ s a sad truth that much of our city and nation ’ s wealth was derived from the slave trade , this does not have to be celebrated in our public spaces , ” said London mayor Sadiq Khan in a tweet with a photo of the statue .
Earlier , Khan ordered a review of statues and street names across London , in @ @ @ @ @ @ @ and elsewhere .
On Sunday , protesters in the English port city of Bristol tore down the statue of a slave trader and threw it in the harbour , while in Oxford yesterday more than 1,000 demonstrators demanded the removal of a statue of colonialist Cecil Rhodes .
Read more : Sadiq Khan accused of ‘ not looking after coppers ’ in London protests Milligan , who owned sugar plantations in Jamaica , was involved in the construction of London ’ s West India Docks .
Onlookers cheered and applauded as workers in @ @ @ @ @ @ @ plinth , then lifted it off with a crane truck .
The mayor of Tower Hamlets , John Biggs , told Reuters from the scene he felt strongly it was no longer appropriate to leave the statue in place .
He said it would be put into storage and discussions would take place about what to do with it .

Tower Hamlets removes Docklands statue of slave trader
A statue of Robert Milligan, an 18th century slave trader, was being removed from its plinth outside a London museum today after officials decided it was no longer acceptable to the local community.
The previously obscure statue, which stood in front of the Museum of London Docklands, came into focus after demonstrators taking part in a global anti-racism protest movement tore down the statue of a slave trader in Bristol.
Statues glorifying slave traders and colonialists have come into sharp focus in recent days, as part of a broader movement inspired by the Black Lives Matter protests that started in the United States following the death of George Floyd.
“While it’s a sad truth that much of our city and nation’s wealth was derived from the slave trade, this does not have to be celebrated in our public spaces,” said London mayor Sadiq Khan in a tweet with a photo of the statue.
Earlier, Khan ordered a review of statues and street names across London, in response to mass protests in the city and elsewhere.
On Sunday, protesters in the English port city of Bristol tore down the statue of a slave trader and threw it in the harbour, while in Oxford yesterday more than 1,000 demonstrators demanded the removal of a statue of colonialist Cecil Rhodes.
Milligan, who owned sugar plantations in Jamaica, was involved in the construction of London’s West India Docks.
Onlookers cheered and applauded as workers in high-visibility jackets separated the statue from its plinth, then lifted it off with a crane truck.
The mayor of Tower Hamlets, John Biggs, told Reuters from the scene he felt strongly it was no longer appropriate to leave the statue in place. He said it would be put into storage and discussions would take place about what to do with it.


cityam--2020-06-09--EXCLUSIVE: Dan Simerman talks Covid, Digital Assets and IOTA

Dan Simerman is an investor and technical product manager well versed in consumer psychology , digital assets and open source software development .
Dan has a history of building software for Fortune 50 financial institutions , multinational media companies and strategic consulting firms .
As Head of Financial Relations at the IOTA Foundation , Dan ’ s goal is to support technology for a new type of open infrastructure , one where people and devices can seamlessly exchange data freely , safely and securely in a digital world .
In his role , Dan focuses on how to build the @ @ @ @ @ @ @ technology with its own native digital asset .
The IOTA Token , developed as a permissionless , peer 2 peer value transfer mechanism , requires a host of systems , processes , and approvals for it to be widely adopted by individuals , organizations , and potentially governments .
Dan talks exclusively to BEQUANT about how the IOTA Foundation has been affected by Covid-19 , how digital assets are going to be disrupted by the impending economical changes and what the future holds for the industry , blockchain and IOTA .
How is @ @ @ @ @ @ @ ’ re doing well considering the circumstances .
It ’ s true that many of our partners are having a difficult time and we feel deeply for how it ’ s impacting individuals and our community , In a weird way though , many decentralized organizations were well equipped to handle a drastic change in how we operate and work .
Many of us were already working remotely and had acclimated to this way of doing business for some time .
Also , in a weird way , the world of digital assets @ @ @ @ @ @ @ insulated from what ’ s happening in the global macroeconomic environment .
Sure , we are being incredibly careful with our finances and making sure that we can support ourselves in the case of a prolonged economic downturn , but digital assets and DLT technologies have always been , in some ways , an alternative to current economic and financial systems .
They were designed to support a new way to exchange value , data and information .
Because of this , many people feel that now is the time to be heads @ @ @ @ @ @ @ the case for some of our competitors that are closer to traditional finance and silicon valley , but I would guess that many of the older protocols see this climate as an opportunity .
What is your company doing that is involving digital assets ?
So we are actually not a for-profit digital asset company .
IOTA is a non-profit Foundation that is in the process of developing a new standard for data and value communication across IOT devices and people .
In that context , we have created a digital asset to @ @ @ @ @ @ @ future global IOT network .
In the realm of digital assets , our primary goal and responsibility is to build a set of systems and partnerships around our digital asset so that the IOTA Token is easy to acquire , easy to use , and easy to manage .
How does IOTA support the digital assets market ?
IOTA has always been a contrarian of sorts .
Since day one , we set out to design a network that could actually be used and adopted by industry .
Because of this , we @ @ @ @ @ @ @ was Feeless , meaning there are no fees to send an IOTA between two participants on the network .
In this way , IOTA supports the digital asset market by extending the use cases and capabilities of digital assets in the real world .
For most blockchains , data and value are stuck on the same ‘ thread ’ , meaning that you can not send data without paying a fee to the network .
This makes data heavy or data-centric applications nearly impossible for large corporations to adopt for the following reasons @ @ @ @ @ @ @ problematic UX to force users/businesses to hold a digital asset for an application that has nothing to do with value transfer .
Clicking on links require small fees .
• Cost : What happens if you have an application that handles millions of transactions ?
Even if it ’ s a small fee , this can add up over time .
• Legal/Accounting : The majority of companies are not set up to support digital assets .
Forcing them to build digital assets into their accounting practices is a huge barrier to adoption @ @ @ @ @ @ @ good chance that the digital assets that sit atop DLTs may end up being securities due to how they initially raised funding .
Companies will not want to take the risk of holding a digital asset ( that may be a security ) for paying for data transfer in a distributed application .
Not only does IOTA ’ s feeless architecture and infrastructure mitigate these issues , but it significantly strengthens the market as a whole .
IOTA is not a blockchain but a distributed ledger called The Tangle .
We designed it @ @ @ @ @ @ @ the current blockchain market for businesses actually trying to implement distributed technology for real world use cases .
How will you IOTA infrastructure help to strengthen the market ?
and What in your view will happen to digital assets post COVID-19 ?
There are probably two converging forces that will drive interest in digital assets as a result of COVID-19 : • A fear of contamination may force governments to look at ways of being pandemic resistant in the future .
One way will be the digitization of the local dollar .
It @ @ @ @ @ @ @ for a digital dollar or a central bank digital currency may be similar to what ’ s being developed for digital assets today ( custody , payment solutions ) , so natural cross pollination could expand the use of digital assets as a whole .
• Groups will use the current actions of governments as reason to explore alternative economic systems .
For example , we saw the 2008 financial crisis as a massive driver for Bitcoin , the first digital asset of its kind .
It ’ s quite possible that the @ @ @ @ @ @ @ drive even more people around the world to explore Bitcoin and even other digital assets like Ethereum and IOTA .
Why do you think the digital assets market is experiencing a high right now ?
A mix of things : The market was expecting the ‘ halving ’ event to crash the digital asset market ( there were a lot of shorts placed from institutional players ) .
When that didn ’ t happen , It was a positive sign that the halving wasn ’ t a catastrophic event…causing upward momentum ever since @ @ @ @ @ @ @ the idea that ‘ history doesn ’ t repeat itself but it certainly rhymes ’ .
The last two halving events were the beginning of parabolic moves for digital assets – and many believe this will happen again in this next cycle .
Digital assets have held up pretty well in their first real economic test .
Sure , we had that big selloff in March that coincided with traditional assets , but overall we ’ re seeing more and more individuals and organizations trust digital assets because they hold properties that other @ @ @ @ @ @ @ hedge against inflation .
Blockchain technology holds promise – what do you think is a good use case for it in the current economic climate ?
Regardless of the current economic climate , I ’ ve always been of the opinion that blockchain technology holds the most promise for connecting the human economy and the machine economy .
Which is why I ’ ve been such a fan of IOTA since day one .
Traditional blockchain architecture doesn ’ t support two critical elements for true adoption : Scalability and feeless microtransactions .
@ @ @ @ @ @ @ network as participation grows , IOTA creates use cases to secure the data and value that is sent between humans and devices in future corporate , independent and smart city networks .
Without such an open system , centralized networks would be at risk of putting lives in danger as critical functions are replaced or augmented by technology .
What happens if someone hacks into a centralized database connected to pacemakers ?
Or shuts off critical energy infrastructure for a population ?
Providing trust and security to these physical/digital networks is the best @ @ @ @ @ @ @ .
What are some barriers still holding back wide scale adoption of digital assets ?
The technical , legal , and regulatory infrastructure around digital assets still has some catching up to do with the world of traditional finance , however we ’ ve made some significant progress in the last 24 months .
At this point , the biggest barriers are : • People and organizations feeling psychologically comfortable with the idea .
We will see this shift rapidly as new entrants like Paul Tudor Jones feel comfortable coming out and sharing @ @ @ @ @ @ @ Comprehensive legal and regulatory guidelines – many companies that want to use digital assets are still waiting for guidance in the form of formal legislation .
Until that happens , it will probably be the more risk prone groups that start to incorporate digital assets into their business models .
How do you see digital assets evolving in the next decade ?
I ’ m going to take a contrarian view here and say that we ’ re going to see a Cambrian explosion of the ‘ tokenization of everything ’ .
Once @ @ @ @ @ @ @ tokens ( for retail ) it will open a huge market for people to build innovative business models that allow individuals to participate in the growth and success of their favorite products and services .
There will still be new native digital assets released on future protocols that don ’ t exist yet .
Because of the behaviors that go along with crypto-economics , there will always be someone trying to create an incentive with a token/currency/digital asset .
This will become an even more crowded space then we ’ re seeing now @

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EXCLUSIVE: Dan Simerman talks Covid-19, Digital Assets and IOTA
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Dan Simerman is an investor and technical product manager well versed in consumer psychology, digital assets and open source software development. Dan has a history of building software for Fortune 50 financial institutions, multinational media companies and strategic consulting firms.
As Head of Financial Relations at the IOTA Foundation, Dan’s goal is to support technology for a new type of open infrastructure, one where people and devices can seamlessly exchange data freely, safely and securely in a digital world. In his role, Dan focuses on how to build the ‘financial infrastructure’ to support a technology with its own native digital asset. The IOTA Token, developed as a permissionless, peer 2 peer value transfer mechanism, requires a host of systems, processes, and approvals for it to be widely adopted by individuals, organizations, and potentially governments.
Dan talks exclusively to BEQUANT about how the IOTA Foundation has been affected by Covid-19, how digital assets are going to be disrupted by the impending economical changes and what the future holds for the industry, blockchain and IOTA.
_________________________________________________________________________
How is your company coping through Covid-19?
We’re doing well considering the circumstances. It’s true that many of our partners are having a difficult time and we feel deeply for how it’s impacting individuals and our community, In a weird way though, many decentralized organizations were well equipped to handle a drastic change in how we operate and work. Many of us were already working remotely and had acclimated to this way of doing business for some time.
Also, in a weird way, the world of digital assets and distributed ledger technology feels a bit insulated from what’s happening in the global macroeconomic environment. Sure, we are being incredibly careful with our finances and making sure that we can support ourselves in the case of a prolonged economic downturn, but digital assets and DLT technologies have always been, in some ways, an alternative to current economic and financial systems. They were designed to support a new way to exchange value, data and information. Because of this, many people feel that now is the time to be heads down working. This may not be the case for some of our competitors that are closer to traditional finance and silicon valley, but I would guess that many of the older protocols see this climate as an opportunity.
What is your company doing that is involving digital assets?
So we are actually not a for-profit digital asset company . IOTA is a non-profit Foundation that is in the process of developing a new standard for data and value communication across IOT devices and people. In that context, we have created a digital asset to support the value transfer capabilities of a future global IOT network. In the realm of digital assets, our primary goal and responsibility is to build a set of systems and partnerships around our digital asset so that the IOTA Token is easy to acquire, easy to use, and easy to manage.
How does IOTA support the digital assets market?
IOTA has always been a contrarian of sorts. Since day one, we set out to design a network that could actually be used and adopted by industry. Because of this, we developed an architecture where the IOTA token was Feeless, meaning there are no fees to send an IOTA between two participants on the network.
In this way, IOTA supports the digital asset market by extending the use cases and capabilities of digital assets in the real world. For most blockchains, data and value are stuck on the same ‘thread’, meaning that you cannot send data without paying a fee to the network. This makes data heavy or data-centric applications nearly impossible for large corporations to adopt for the following reasons:
Usability: It’s problematic UX to force users/businesses to hold a digital asset for an application that has nothing to do with value transfer. Clicking on links require small fees.
Cost: What happens if you have an application that handles millions of transactions? Even if it’s a small fee, this can add up over time.
Legal/Accounting: The majority of companies are not set up to support digital assets. Forcing them to build digital assets into their accounting practices is a huge barrier to adoption.
Regulatory: There is a good chance that the digital assets that sit atop DLTs may end up being securities due to how they initially raised funding. Companies will not want to take the risk of holding a digital asset (that may be a security) for paying for data transfer in a distributed application.
Not only does IOTA’s feeless architecture and infrastructure mitigate these issues, but it significantly strengthens the market as a whole. IOTA is not a blockchain but a distributed ledger called The Tangle. We designed it to address many of the limitations of the current blockchain market for businesses actually trying to implement distributed technology for real world use cases.
How will you IOTA infrastructure help to strengthen the market? and What in your view will happen to digital assets post COVID-19?
There are probably two converging forces that will drive interest in digital assets as a result of COVID-19:
A fear of contamination may force governments to look at ways of being pandemic resistant in the future. One way will be the digitization of the local dollar. It’s very possible that the infrastructure for a digital dollar or a central bank digital currency may be similar to what’s being developed for digital assets today (custody, payment solutions), so natural cross pollination could expand the use of digital assets as a whole. Groups will use the current actions of governments as reason to explore alternative economic systems. For example, we saw the 2008 financial crisis as a massive driver for Bitcoin, the first digital asset of its kind. It’s quite possible that the actions we are seeing take place will drive even more people around the world to explore Bitcoin and even other digital assets like Ethereum and IOTA.
Why do you think the digital assets market is experiencing a high right now?
A mix of things: The market was expecting the ‘halving’ event to crash the digital asset market (there were a lot of shorts placed from institutional players). When that didn’t happen, It was a positive sign that the halving wasn’t a catastrophic event…causing upward momentum ever since. People are very much playing into the idea that ‘history doesn’t repeat itself but it certainly rhymes’. The last two halving events were the beginning of parabolic moves for digital assets – and many believe this will happen again in this next cycle.
Digital assets have held up pretty well in their first real economic test. Sure, we had that big selloff in March that coincided with traditional assets, but overall we’re seeing more and more individuals and organizations trust digital assets because they hold properties that other assets may not have, like a hedge against inflation.
Blockchain technology holds promise – what do you think is a good use case for it in the current economic climate?
Regardless of the current economic climate, I’ve always been of the opinion that blockchain technology holds the most promise for connecting the human economy and the machine economy. Which is why I’ve been such a fan of IOTA since day one. Traditional blockchain architecture doesn’t support two critical elements for true adoption: Scalability and feeless microtransactions.
By offering the ability to scale the network as participation grows, IOTA creates use cases to secure the data and value that is sent between humans and devices in future corporate, independent and smart city networks. Without such an open system, centralized networks would be at risk of putting lives in danger as critical functions are replaced or augmented by technology. What happens if someone hacks into a centralized database connected to pacemakers? Or shuts off critical energy infrastructure for a population?
Providing trust and security to these physical/digital networks is the best use case we have at the moment.
What are some barriers still holding back wide scale adoption of digital assets?
The technical, legal, and regulatory infrastructure around digital assets still has some catching up to do with the world of traditional finance, however we’ve made some significant progress in the last 24 months. At this point, the biggest barriers are:
People and organizations feeling psychologically comfortable with the idea. We will see this shift rapidly as new entrants like Paul Tudor Jones feel comfortable coming out and sharing their allocations with the world.
Comprehensive legal and regulatory guidelines – many companies that want to use digital assets are still waiting for guidance in the form of formal legislation. Until that happens, it will probably be the more risk prone groups that start to incorporate digital assets into their business models.
How do you see digital assets evolving in the next decade?
I’m going to take a contrarian view here and say that we’re going to see a Cambrian explosion of the ‘tokenization of everything’. Once we have proper secondary markets for security tokens (for retail) it will open a huge market for people to build innovative business models that allow individuals to participate in the growth and success of their favorite products and services. There will still be new native digital assets released on future protocols that don’t exist yet. Because of the behaviors that go along with crypto-economics, there will always be someone trying to create an incentive with a token/currency/digital asset. This will become an even more crowded space then we’re seeing now.


cityam--2020-06-09--Softbank to lay off 15 per cent of staff at Vision Fund arm

Softbank is set to cut 15 per cent of jobs at the investment arm which manages its $ 100bn Vision Fund , following a series of misplaced bets which damaged its overall value .
The Vision Fund , which is responsible for taking major stakes on behalf of Softbank in tech startups such Wework and Uber , has a global staff of approximately 500 people .
The cuts could begin as early as this week , according to reports by Bloomberg and the Financial Times .
They will mark the first major round of layoffs since Softbank Investment Associates ( @ @ @ @ @ @ @ manage the Fund , which is based in London .
The move comes in spite of a decision to double the annual salary of the Vision Fund ’ s head Rajeev Misra last month to more than $ 15m .
SBIA has grown rapidly , adding around 400 of its staff in the last two years .
One insider told the Financial Times that the cuts are an attempt to refocus the arm , with two SBIA managing directors being reassigned to roles at Softbank .
The Fund ’ s dismal performance led @ @ @ @ @ @ @ on record in March , forcing the Japanese tech giant to revisit plans for a second Vision Fund .
Its bet on Wework was particularly problematic for the Fund , with Softbank ’ s chief executive Masayoshi Son calling the move “ foolish ” last month .
The firm is reported to have invested around $ 19bn in Wework , with the latter ’ s valuation dropping from $ 47bn ahead of its botched market debut last year to $ 2.9bn in March .
Read more : Softbank launches $ 100m minorities startup @ @ @ @ @ @ @ protests However Softbank ’ s share price had seen a revival in recent weeks , rising 99 per cent to date since hitting a four-year low following the announcement .

Softbank to lay off 15 per cent of staff at Vision Fund arm
SoftBank is accelerating sales after it suffered more than $50bn losses in the first half of the year
Softbank is set to cut 15 per cent of jobs at the investment arm which manages its $100bn Vision Fund, following a series of misplaced bets which damaged its overall value.
The Vision Fund, which is responsible for taking major stakes on behalf of Softbank in tech startups such Wework and Uber, has a global staff of approximately 500 people.
The cuts could begin as early as this week, according to reports by Bloomberg and the Financial Times. They will mark the first major round of layoffs since Softbank Investment Associates (SBIA) was established in 2016 to manage the Fund, which is based in London.
The move comes in spite of a decision to double the annual salary of the Vision Fund’s head Rajeev Misra last month to more than $15m.
SBIA has grown rapidly, adding around 400 of its staff in the last two years. One insider told the Financial Times that the cuts are an attempt to refocus the arm, with two SBIA managing directors being reassigned to roles at Softbank.
The Fund’s dismal performance led Softbank to report its largest yearly loss on record in March, forcing the Japanese tech giant to revisit plans for a second Vision Fund.
Its bet on Wework was particularly problematic for the Fund, with Softbank’s chief executive Masayoshi Son calling the move “foolish” last month. The firm is reported to have invested around $19bn in Wework, with the latter’s valuation dropping from $47bn ahead of its botched market debut last year to $2.9bn in March.
However Softbank’s share price had seen a revival in recent weeks, rising 99 per cent to date since hitting a four-year low following the announcement.
A Softbank spokesperson declined to comment.


cityam--2020-06-10--US inflation worse than expected as coronavirus hammers economy

US inflation was weaker than expected during May , with a 0.1 per cent decrease month on month and a @ @ @ @ @ on year .

US inflation falls for third straight month as coronavirus hammers economy
Customers in masks shop for local produce at Godfrey’s Farm amid the coronavirus pandemic in Sudlersville, Maryland
US consumer prices fell for a third straight month in May and underlying inflation was weak as demand remained subdued amid the recession caused by the Covid-19 pandemic.
The Consumer Price Index (CPI) fell 0.1 per cent in May, after decreasing 0.8 per cent in April, new figures from the US Labour Department showed.
Read more: Markets live: FTSE 100 rebound sours as traders await Fed rates decision
The inflation reading for May had been expected to be flat after April recorded the steepest decline since December 2008.
Year-on-year, the CPI increased 0.1 per cent in May – the smallest year-on-year rise since September 2015. Economists polled by Reuters had forecast the CPI to be unchanged in May and to gain 0.2 per cent year-on-year.
Before the Open newsletter: Start your day with the City View podcast and key market data
The core CPI reading, which excludes volatile food and fuel costs, fell 0.1 per cent month on month after dropping 0.4 per cent in April – the largest drop since the measure was introduced in 1957.
The dollar dropped against the yen after the US inflation reading missed estimates, slipping as much as 0.3 per cent immediately after the figures were released.
Yields on the benchmark US 10-year Treasuries fell to 0.802 per cent, from 0.811 per cent, following the release of the inflation data.
Read more: Markets live: FTSE 100 rebound sours as traders await Fed rates decision
The US Labour Department said in-store data collection had remained suspended since March 16 because of risks of exposure to Covid-19.
The department added that data collection last month was also impacted “by the temporary closing or limited operations of certain types of establishments,” leading to “an increase in the number of prices being considered temporarily unavailable and imputed.”


cityam--2020-06-10--Premier Inn owner scoops up almost £1bn to bolster against pandemic

Whitbread investors have agreed to supply more than 90 per cent of its £1bn cash call , the Premier Inn owner announced today , as it attempts to beef up its balance sheet amid the coronavirus crisis .
Existing investors scooped up 91 per cent of the discounted 1-2 fundraiser issued by the hotel group in a bid to shore up finances following the closure of most of its hotels , restaurants and bars due to the pandemic .
The rights issue of 67.3m new shares was priced at 1,500p per share at a heavy discount of 37 per cent @ @ @ @ @ @ @ stock — worth £90m — is expected to be placed on the market today by bookrunners JP Morgan Cazenove and Morgan Stanley .
Around 15 per cent of Whitbread stock is held by small investors who are often hesitant to partake in rights issues .
Alongside the rights issue in May , the group warned that revenue from accommodation , food and beverage for the preceding seven weeks had fallen 99 per cent in the UK .
Whitbread owns more than 2,800 restaurants , hotels and coffee shops in the UK serving 22m @ @ @ @ @ @ @ the group ’ s 821 UK hotels have remained open , to cater for key workers during the lockdown .
Shares failed to hold onto opening gains of 3.3 per cent to 2,699p , falling 4.3 per cent to 2,540p at 12.45 BST .
Read more : Hospitality industry asks government for financial support to overcome rent deadlock Russ Mould , investment director at AJ Bell said : “ You can view it in two ways .
On the one hand , take-up was 91 per cent .
Ultimately they ’ ve shored @ @ @ @ @ @ @ But on the other hand you can see why investors might not celebrate the 9 per cent left over.
” The hospitality industry is beginning to see signs of recovery as the government yesterday set out its roadmap to reopen pubs and bars from 4 July after months of lockdown .
However , there has been no confirmed date for the reopening of accommodation sites in the UK , leaving less stable hotel firms more vulnerable .
Industry figures yesterday warned there will be significant job losses and business failures unless the government @ @ @ @ @ @ @ stalemate between landlords and tenants .
The Premier Inn owner , however , appears to have bolstered itself for now .
“ Whitbread has copper-bottomed its finances for the next year or two and is in a strong position , ” said Mould He added : “ I ’ m sure a lot of companies are using the opportunity to take up market share and knock out competition .
Whitbread has a firm base right now and I ’ m sure it ’ ll be looking at Travel Lodge and other hotel firms @ @ @ @ @ @ @ last week announced it was preparing to launch insolvency proceedings in the form of a company voluntary arrangement ( CVA ) in an attempt to cut rent by 40 per cent over the next 18 months as most of its 564 hotels have remained closed during lockdown .
“ Whether punters turn up for any hotel firms — who knows ?
” said Mould .
“ But Whitbread have got a lot of cash to ease their worries for the time being.
” Before the Open : Get the jump on the markets @ @ @ @ @

Premier Inn owner scoops up almost £1bn to bolster against pandemic
Whitbread investors have agreed to supply more than 90 per cent of its £1bn cash call, the Premier Inn owner announced today, as it attempts to beef up its balance sheet amid the coronavirus crisis.
Existing investors scooped up 91 per cent of the discounted 1-2 fundraiser issued by the hotel group in a bid to shore up finances following the closure of most of its hotels, restaurants and bars due to the pandemic.
The rights issue of 67.3m new shares was priced at 1,500p per share at a heavy discount of 37 per cent.
The remaining nine per cent of stock — worth £90m — is expected to be placed on the market today by bookrunners JP Morgan Cazenove and Morgan Stanley. Around 15 per cent of Whitbread stock is held by small investors who are often hesitant to partake in rights issues.
Alongside the rights issue in May, the group warned that revenue from accommodation, food and beverage for the preceding seven weeks had fallen 99 per cent in the UK.
Whitbread owns more than 2,800 restaurants, hotels and coffee shops in the UK serving 22m guests every month. Just 39 of the group’s 821 UK hotels have remained open, to cater for key workers during the lockdown.
Shares failed to hold onto opening gains of 3.3 per cent to 2,699p, falling 4.3 per cent to 2,540p at 12.45 BST.
Russ Mould, investment director at AJ Bell said: “You can view it in two ways. On the one hand, take-up was 91 per cent. Ultimately they’ve shored up a huge amount of cash. But on the other hand you can see why investors might not celebrate the 9 per cent left over.”
The hospitality industry is beginning to see signs of recovery as the government yesterday set out its roadmap to reopen pubs and bars from 4 July after months of lockdown.
However, there has been no confirmed date for the reopening of accommodation sites in the UK, leaving less stable hotel firms more vulnerable.
Industry figures yesterday warned there will be significant job losses and business failures unless the government provides financial support to overcome the rent stalemate between landlords and tenants.
The Premier Inn owner, however, appears to have bolstered itself for now. “Whitbread has copper-bottomed its finances for the next year or two and is in a strong position,” said Mould
He added: “I’m sure a lot of companies are using the opportunity to take up market share and knock out competition. Whitbread has a firm base right now and I’m sure it’ll be looking at Travel Lodge and other hotel firms in a rocky position”.
Travelodge last week announced it was preparing to launch insolvency proceedings in the form of a company voluntary arrangement (CVA) in an attempt to cut rent by 40 per cent over the next 18 months as most of its 564 hotels have remained closed during lockdown.
“Whether punters turn up for any hotel firms — who knows?” said Mould. “But Whitbread have got a lot of cash to ease their worries for the time being.”
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