cityam--2020-06-18--FTSE 100 closes lower after BoE boosts stimulus by £100bn

The FTSE 100 closed lower this afternoon following the Bank of England ’ s announcement that it would expand its quantitative easing programme by £100bn .
London ’ s blue-chip index finished 0.57 per cent lower at 6,217 points , having opened 0.48 per cent down this morning .
Read more : Bank of England holds rates , boosts stimulus by £100bn The central bank said it would boost its bond-buying programme by £100bn after a unanimous vote at the BoE ’ s Monetary Policy Committee ( MPC ) .
It takes the BoE ’ s total stock of asset @ @ @ @ @ @ @ a more generous package , which has dragged the FTSE lower .
Read more : Bank of England still assessing case for negative rates , says Bailey News of rising cases in the US has also dragged sentiment lower on fears of a second wave .
US stocks opened lower across the board with the Dow Jones down 139 points – 0.53 per cent .
The partial lockdown of Beijing is also doing little to quell volatility , as it highlights the risks of easing lockdown measures too early .
Overnight , Japan @ @ @ @ @ @ @ , while the Hang Sang Index dropped 0.37 per cent .
The Shanghai Composite inched into the green to close up 0.12 per cent .
European stocks pared some of this morning ’ s losses with the pan-European Stoxx 600 down 0.51 per cent .
Germany ’ s Dax fell 0.8 per cent while France ’ s Cac edged down 0.75 per cent .
Read more : Bank of England lookahead : Bailey set to ramp up QE but avoid negative rates David Madden , market analyst at CMC Markets , said : @ @ @ @ @ @ @ red this afternoon as health concerns have chipped away at market confidence .
“ Beijing is currently in partial lockdown and its restrictions have become stricter in the past few days .
A number of states in the US have seen an increase in the number of Covid-19 cases , most notably Texas – yesterday ’ s hospitalisation rate jumped by 11 per cent .
“ This day last week , equity markets sold-off sharply as traders were terrified at the prospect of a second wave of infections .
There has been a @ @ @ @ @ @ @ dealers are less fearful about the situation spiralling out of control ” .
Wall Street opened lower today following news that a further 1.51m people filed for unemployment benefits last week in the US , taking the total number of claims to 46m .
Midway through trading , however , markets were directionless , trading on or around breakeven .
The Dow Jones was down 71 points – 0.27 per cent , while the S & P 500 is flat .
The tech-heavy Nasdaq index edged up 0.1 per cent .
Analysts said @ @ @ @ @ @ @ the sizeable moves of recent days .
Chuck Carlson , chief executive officer at Horizon Investment Services , said : “ It ’ s not unusual after huge moves to trade sidewise .
It ’ s a continuing evaluation of the sustainability of improvement at these rapid levels.
” Despite a staggering figure now claiming for benefits , it marks the 11th week the figure has declined since reaching highs of 6.87m in March .
The figure was slightly above analysts ’ estimates , despite a slight easing of lockdown measures .
The @ @ @ @ @ @ @ is also doing little to calm markets .
Ten states have seen record number of cases , with Florida tipped to be the new epicentre of the outbreak .
Twenty-three states are seeing an upward trend in new infections , but President Donald Trump yesterday suggested the virus is “ dying out ” .
Fed chair Jay Powell said earlier this week that the economy would not recover fully until the virus is brought under control .
All eyes on the Bank of England Investors have reacted somewhat negatively to the widely anticipated @ @ @ @ @ @ @ Since the coronavirus outbreak , the bank has slashed rates from 0.75 per cent to 0.1 per cent , a 300-year low .
It has also added £200bn to its quantitative easing programme to help the economy .
While the announcement was widely expected but some analysts anticipated a bigger package , pulling the FTSE 100 into the red .
“ The expansion of the QE programme was a little less than some of us had anticipated , and indeed was really the bare minimum to satisfy the market , ” said Neil @ @ @ @ @ @ @ .
“ The Old Lady could have been a little bit braver here and expanded the envelope more.
” There had been speculation that the bank could increase the package by £150bn , which would have boosted the FTSE .
Before the Open : Get the jump on the markets with our early morning newsletter Investors are also looking to Britain ’ s next pressing isue .
“ News that the UK is planning a ‘ shock and awe ’ campaign to prepare businesses for Brexit reminds investors that the divorce will happen @ @ @ @ @ @ @ come hell or high water , ” said Ipek Ozkardeskaya , senior analyst at Sqiss Quote .
“ In this respect , especially small and medium sized British companies already battered by the Covid-19 pandemic , may suffer additional economic consequences , ” she added .
The government will reportedly launch an information campaign to warn the public about the “ consequences of not taking action ” according to Politico .
They will then move to a new phase focusing on avoiding losses due to the disruption .
The Brexit transition period is @ @ @ @ @ @ @ even if it does not strike a deal with the EU .
The EU leaders are also due to meet today .
Currency traders will keep a keen eye on developments , said Charalambos Pissouros , senior market analyst at JFD Group .
“ We will look for clues as to how far away the EU and the UK are in finding common ground.
” Before the Open newsletter : Start your day with the City View podcast and key market data

FTSE 100 closes lower after BoE boosts stimulus by £100bn
Bank of England Governor Andrew Bailey
The FTSE 100 closed lower this afternoon following the Bank of England’s announcement that it would expand its quantitative easing programme by £100bn.
London’s blue-chip index finished 0.57 per cent lower at 6,217 points, having opened 0.48 per cent down this morning.
The central bank said it would boost its bond-buying programme by £100bn after a unanimous vote at the BoE’s Monetary Policy Committee (MPC).
It takes the BoE’s total stock of asset purchases to £745bn. However analysts expected a more generous package, which has dragged the FTSE lower.
News of rising cases in the US has also dragged sentiment lower on fears of a second wave. US stocks opened lower across the board with the Dow Jones down 139 points – 0.53 per cent.
The partial lockdown of Beijing is also doing little to quell volatility, as it highlights the risks of easing lockdown measures too early.
Overnight, Japan’s Nikkei lost 0.45 per cent, while the Hang Sang Index dropped 0.37 per cent. The Shanghai Composite inched into the green to close up 0.12 per cent.
European stocks pared some of this morning’s losses with the pan-European Stoxx 600 down 0.51 per cent. Germany’s Dax fell 0.8 per cent while France’s Cac edged down 0.75 per cent.
David Madden, market analyst at CMC Markets, said: “Stocks in Europe are in the red this afternoon as health concerns have chipped away at market confidence.
“Beijing is currently in partial lockdown and its restrictions have become stricter in the past few days. A number of states in the US have seen an increase in the number of Covid-19 cases, most notably Texas – yesterday’s hospitalisation rate jumped by 11 per cent.
“This day last week, equity markets sold-off sharply as traders were terrified at the prospect of a second wave of infections. There has been a rise in cases since then, but dealers are less fearful about the situation spiralling out of control”.
US stocks flat as 1.51m claim unemployment benefits
Wall Street opened lower today following news that a further 1.51m people filed for unemployment benefits last week in the US, taking the total number of claims to 46m.
Midway through trading, however, markets were directionless, trading on or around breakeven.
The Dow Jones was down 71 points – 0.27 per cent, while the S&P 500 is flat. The tech-heavy Nasdaq index edged up 0.1 per cent.
Analysts said that the see-sawing was not uncommon after the sizeable moves of recent days.
Chuck Carlson, chief executive officer at Horizon Investment Services, said: “It’s not unusual after huge moves to trade sidewise. It’s a continuing evaluation of the sustainability of improvement at these rapid levels.”
Despite a staggering figure now claiming for benefits, it marks the 11th week the figure has declined since reaching highs of 6.87m in March. The figure was slightly above analysts’ estimates, despite a slight easing of lockdown measures.
The increase in coronavirus infections in the US is also doing little to calm markets. Ten states have seen record number of cases, with Florida tipped to be the new epicentre of the outbreak.
Twenty-three states are seeing an upward trend in new infections, but President Donald Trump yesterday suggested the virus is “dying out”.
Fed chair Jay Powell said earlier this week that the economy would not recover fully until the virus is brought under control.
All eyes on the Bank of England
Investors have reacted somewhat negatively to the widely anticipated expansion of its asset purchase programme.
Since the coronavirus outbreak, the bank has slashed rates from 0.75 per cent to 0.1 per cent, a 300-year low. It has also added £200bn to its quantitative easing programme to help the economy.
While the announcement was widely expected but some analysts anticipated a bigger package, pulling the FTSE 100 into the red.
“The expansion of the QE programme was a little less than some of us had anticipated, and indeed was really the bare minimum to satisfy the market,” said Neil Wilson, chief market analyst at Markets.com.
“The Old Lady could have been a little bit braver here and expanded the envelope more.”
There had been speculation that the bank could increase the package by £150bn, which would have boosted the FTSE.
Before the Open: Get the jump on the markets with our early morning newsletter
Looming Brexit deadline unnerves FTSE 100
Investors are also looking to Britain’s next pressing isue.
“News that the UK is planning a ‘shock and awe’ campaign to prepare businesses for Brexit reminds investors that the divorce will happen by the end of this year, come hell or high water,” said Ipek Ozkardeskaya, senior analyst at Sqiss Quote.
“In this respect, especially small and medium sized British companies already battered by the Covid-19 pandemic, may suffer additional economic consequences,” she added.
The government will reportedly launch an information campaign to warn the public about the “consequences of not taking action” according to Politico. They will then move to a new phase focusing on avoiding losses due to the disruption.
The Brexit transition period is due to end on 31 December, even if it does not strike a deal with the EU.
The EU leaders are also due to meet today. Currency traders will keep a keen eye on developments, said Charalambos Pissouros, senior market analyst at JFD Group. “We will look for clues as to how far away the EU and the UK are in finding common ground.”
Before the Open newsletter: Start your day with the City View podcast and key market data


cityam--2020-06-18--Boris Johnson tells Emmanuel Macron that Brexit talks cannot stretch into autumn

Boris Johnson has told French president Emmanuel Macron that it makes no sense to extend post-Brexit trade talks into the autumn .
The two leaders met today in Downing Street to mark the 80th anniversary of French president Charles de Gaulle ’ s wartime BBC broadcast to Nazi-occupied France .
Read more : French President Emmanuel Macron to get Red Arrows flypast on UK visit After the commemoration , which included a flypast by the Red Arrows , the two leaders discussed the UK ’ s ongoing trade negotiations with the EU .
A statement from Downing Street said : @ @ @ @ @ @ @ to intensify talks in July and underlined that the UK does not believe it makes sense for there to be prolonged negotiations into the autumn ” .
Johnson ’ s words came after foreign secretary Dominic Raab today told LBC radio that Britain would not wait around for a trade deal , warning that negotiators were prepared to walk away .
Raab said that the UK does not “ want to hang around ” and will not “ wait for this to be dragged out into the autumn and the winter ” .
@ @ @ @ @ @ @ day with the City View podcast and key market data A source from Macron ’ s office told Reuters that the president had reaffirmed his commitment to reaching a deal on Brexit .
It said : “ France reminded its commitment to a deal and its support of ( EU negotiator ) Michel Barnier ” .
Prime Minister Boris Johnson and EU chiefs met on Monday to discuss the state of negotiations , with both sides agreeing that “ more momentum was needed ” .
Particularly contentious areas have been EU access to @ @ @ @ @ @ @ and the European Court of Justice ’ s role in governing a deal .
UK and EU negotiators will meet for a series of five consecutive week-long negotiating rounds beginning next month .
The UK has said it needs to know before the end of summer if a deal is possible , and will walk away in August and prepare for no-deal if need be .

Boris Johnson tells Emmanuel Macron that Brexit talks cannot stretch into autumn
Macron and Johnson
Boris Johnson has told French president Emmanuel Macron that it makes no sense to extend post-Brexit trade talks into the autumn.
The two leaders met today in Downing Street to mark the 80th anniversary of French president Charles de Gaulle’s wartime BBC broadcast to Nazi-occupied France.
After the commemoration, which included a flypast by the Red Arrows, the two leaders discussed the UK’s ongoing trade negotiations with the EU.
A statement from Downing Street said: “The Prime Minister welcomed the agreement to intensify talks in July and underlined that the UK does not believe it makes sense for there to be prolonged negotiations into the autumn”.
Johnson’s words came after foreign secretary Dominic Raab today told LBC radio that Britain would not wait around for a trade deal, warning that negotiators were prepared to walk away.
Raab said that the UK does not “want to hang around” and will not “wait for this to be dragged out into the autumn and the winter”.
Before the Open newsletter: Start your day with the City View podcast and key market data
A source from Macron’s office told Reuters that the president had reaffirmed his commitment to reaching a deal on Brexit.
It said: “France reminded its commitment to a deal and its support of (EU negotiator) Michel Barnier”.
Prime Minister Boris Johnson and EU chiefs met on Monday to discuss the state of negotiations, with both sides agreeing that “more momentum was needed”.
Particularly contentious areas have been EU access to UK fishing waters, business competition regulations and the European Court of Justice’s role in governing a deal.
UK and EU negotiators will meet for a series of five consecutive week-long negotiating rounds beginning next month.
The UK has said it needs to know before the end of summer if a deal is possible, and will walk away in August and prepare for no-deal if need be.


cityam--2020-06-18--Exclusive: Lib Dems urge all UK retail banks to create 'green accounts'

Acting Liberal Democrat leader Ed Davey has called for all the UK ’ s high street banks and building societies to offer green accounts Davey said the entire UK banking sector should make environmentally sustainable banking available for everyone , with funds from green accounts “ invested in green technology and the green economy , on projects like renewable energy or home insulation ” .
Read more : Labour calls for emergency ‘ back to work ’ summer Budget The calls come as a part of a wider £150bn package of green measures floated today as a part of the @ @ @ @ @ @ @ The economic package would seek to transform the UK ’ s economy with measures such as a “ green jobs guarantee ” , a larger roll out of electric vehicle charging points and a target of at least 80 per cent renewable energy by 2030 .
When discussing the proposal for widespread green accounts , Davey told City A.M. : “ We need to move toward a greener , cleaner economy and the financial sector has a key role to play .
“ You shouldn ’ t need to be a financial expert @ @ @ @ @ @ @ is invested in the green economy .
Before the Open newsletter : Start your day with the City View podcast and key market data “ That ’ s why I ’ m calling on every bank and building society to introduce a basic green account so that everyone has the option for their money to help fight the climate emergency.
” The amount of environmentally friendly products available to retail banking customers have grown in recent years , however green retail accounts are not common .
Some critics have said it is too @ @ @ @ @ @ @ money that would be deposited through green accounts .
Triodos Bank are able to offer entirely green retail banking , however they have no other non-environmentally sustainable options .
Nevertheless , chief executive of the Green Finance Institute Dr Rhian-Mari Thomas said the number of green banking options was still increasing for consumers .
Read more : City reacts to Bank of England ’ s £100bn stimulus “ There are a growing number of green products , like green loans , that some banks provide , ” she said .
“ There are @ @ @ @ @ @ @ vehicles as the country transfers to net zero [ carbon emissions ] .
”

Exclusive: Lib Dems urge all UK retail banks to create ‘green accounts’
BOURNEMOUTH, ENGLAND – SEPTEMBER 16: Deputy Leader of the Liberal Democrats, Sir Ed Davey speaks at the Liberal Democrat Conference at the Bournemouth International Centre on September 16, 2019 in Bournemouth, England. (Photo by Finnbarr Webster/Getty Images)
Acting Liberal Democrat leader Ed Davey has called for all the UK’s high street banks and building societies to offer green accounts
Davey said the entire UK banking sector should make environmentally sustainable banking available for everyone, with funds from green accounts “invested in green technology and the green economy, on projects like renewable energy or home insulation”.
The calls come as a part of a wider £150bn package of green measures floated today as a part of the Liberal Democrats’ coronavirus recovery proposals.
The economic package would seek to transform the UK’s economy with measures such as a “green jobs guarantee”, a larger roll out of electric vehicle charging points and a target of at least 80 per cent renewable energy by 2030.
When discussing the proposal for widespread green accounts, Davey told City A.M.: “We need to move toward a greener, cleaner economy and the financial sector has a key role to play.
“You shouldn’t need to be a financial expert to find an account where your money is invested in the green economy.
Before the Open newsletter: Start your day with the City View podcast and key market data
“That’s why I’m calling on every bank and building society to introduce a basic green account so that everyone has the option for their money to help fight the climate emergency.”
The amount of environmentally friendly products available to retail banking customers have grown in recent years, however green retail accounts are not common.
Some critics have said it is too difficult for large banks to ring fence money that would be deposited through green accounts.
Triodos Bank are able to offer entirely green retail banking, however they have no other non-environmentally sustainable options.
Nevertheless, chief executive of the Green Finance Institute Dr Rhian-Mari Thomas said the number of green banking options was still increasing for consumers.
“There are a growing number of green products, like green loans, that some banks provide,” she said.
“There are also green loans specifically to purchase electric vehicles as the country transfers to net zero [carbon emissions].”


cityam--2020-06-18--Saudi sovereign wealth fund pours $1.5bn into India's Jio Platforms

Saudi Arabia ’ s Public Investment Fund ( PIF ) , one of the world ’ s largest sovereign wealth funds , has announced it will invest $ 1.5bn ( £1.2bn ) into Jio Platforms to become the Indian telecoms firm ’ s eleventh investor .
The Saudi fund will buy a 2.32 per cent stake in Reliance Industries Ltd subsidiary Jio Platforms , the company said in a statement today .
Read more : Huawei to delay smartphone production as US measures threaten bottleneck PIF becomes the eleventh investor in Jio , which is India ’ s largest telecom @ @ @ @ @ @ @ Facebook ’ s $ 5.7bn investment for a 9.99 per cent stake in the firm in April sparked investor interest , and the company now includes Silver Lake Partners , Vista Equity Partners and General Atlantic as shareholders .
Mukesh Ambani , owner of Jio and Asia ’ s richest man , has now raised $ 15bn in the mobile giant and sold off almost a quarter of the business .
He said he plans to list Jio within five years .
The raft of investments in Ambani ’ s Indian telecoms firm @ @ @ @ @ @ @ diversifying wealth away from oil and petrochemicals towards telecommunications and e-commerce .
“ We at Reliance have enjoyed a long and fruitful relationship with the kingdom of Saudi Arabia for many decades , ” Ambani said in a statement .
“ From oil economy , this relationship is now moving to strengthen India ’ s new oil ( data-driven ) economy.
” Saudi ’ s Crown Prince Mohammed bin Salman , chair of the sovereign wealth fund , has his eyes set on similar targets .
In recent months , bin Salman has @ @ @ @ @ @ @ diverse set of companies such as ride-hailing app Uber and cruise operator Carnival .
His stake in Jio is part of PIF ’ s long-term strategy of investing in sectors and businesses that generate long-term commercial returns , as the Saudi kingdom seeks to diversify its economy in line with its Vision 2030 goals .
Read more : Wirecard shares plummet as firm admits €1.9bn of cash is missing In a statement , Yasir Al-Rumayyan , governor of PIF , said : “ We are delighted to be investing in an innovative business @ @ @ @ @ @ @ transformation of the technology sector in India .
“ This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia ’ s economy and our country ’ s citizens , in line with our mandate to safeguard and grow the national wealth of the kingdom.
” Before the Open : Get the jump on the markets with our early morning newsletter

Saudi sovereign wealth fund pours $1.5bn into India’s Jio Platforms
Saudi Arabia’s Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds, has announced it will invest $1.5bn (£1.2bn) into Jio Platforms to become the Indian telecoms firm’s eleventh investor.
The Saudi fund will buy a 2.32 per cent stake in Reliance Industries Ltd subsidiary Jio Platforms, the company said in a statement today.
PIF becomes the eleventh investor in Jio, which is India’s largest telecom operator with more than 388m subscribers.
Facebook’s $5.7bn investment for a 9.99 per cent stake in the firm in April sparked investor interest, and the company now includes Silver Lake Partners, Vista Equity Partners and General Atlantic as shareholders.
Mukesh Ambani, owner of Jio and Asia’s richest man, has now raised $15bn in the mobile giant and sold off almost a quarter of the business. He said he plans to list Jio within five years.
The raft of investments in Ambani’s Indian telecoms firm is set to boost his programme of diversifying wealth away from oil and petrochemicals towards telecommunications and e-commerce.
“We at Reliance have enjoyed a long and fruitful relationship with the kingdom of Saudi Arabia for many decades,” Ambani said in a statement. “From oil economy, this relationship is now moving to strengthen India’s new oil (data-driven) economy.”
Saudi’s Crown Prince Mohammed bin Salman, chair of the sovereign wealth fund, has his eyes set on similar targets. In recent months, bin Salman has overseen PIF’s investments in a diverse set of companies such as ride-hailing app Uber and cruise operator Carnival.
His stake in Jio is part of PIF’s long-term strategy of investing in sectors and businesses that generate long-term commercial returns, as the Saudi kingdom seeks to diversify its economy in line with its Vision 2030 goals.
In a statement, Yasir Al-Rumayyan, governor of PIF, said: “We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India.
“This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia’s economy and our country’s citizens, in line with our mandate to safeguard and grow the national wealth of the kingdom.”
Before the Open: Get the jump on the markets with our early morning newsletter


cityam--2020-06-18--Railway bailout has cost £3.5bn so far, government reveals

The UK government has thus far spent £3.5bn keeping its railways running during the coronavirus pandemic , it has been revealed .
Responding to a parliamentary written question , rail minister Chris Heaton-Harris said : ‘ Since the outbreak of Covid-19 the government has approved £3.5bn of additional expenditure to ensure that vital rail services continue to operate .
Read more : Rail franchises to introduce social distancing measures as lockdown eases “ Of this additional expenditure , £2.9bn relates to the 2020/21 financial year .
It is not yet possible to provide an estimate of the total cost incurred @ @ @ @ @ @ @ the Department for Transport has drawn £7bn worth of cash from the government ’ s contingencies fund to cover the coronavirus epidemic , transport secretary Grant Shapps announced today .
On 23 March the government took the country ’ s rail franchises under emergency measures for six months in order to keep services running as passenger numbers plummeted 96 per cent .
Under the measures , the operators are receiving a management fee worth up to two per cent of their franchise ’ s cost base , which will be paid after the @ @ @ @ @ @ @ added that the government had not yet made a decision about what will happen when the initial six month period elapses in September .
He said : ‘ Work is underway within the government to determine the most effective approach at the end of the initial six months period of the Emergency Measures Agreements .
“ This work will take account of the impact of Covid-19 on demand for passenger rail travel in both the short and long term , and the associated economic and financial impacts on the railway ” .
Before @ @ @ @ @ @ @ with the City View podcast and key market data It has been suggested that the government will have to keep propping up the UK ’ s rail firms beyond the initial six month period as passenger numbers are likely to remain low for some time to come .
Under the current social distancing guidelines of two metres , trains can only carry 15 per cent of their normal passenger capacity .
Should it be eased to one metre , as many across the economy have urged , passenger numbers will be able to @ @ @ @ @ @ @ their normal amount , it is estimated .
The government ’ s decision to take the UK ’ s railways into – albeit temporary – public control has raised questions about the future of the franchising system .
Before the coronavirus struck , former chairman of British Airways Keith Williams was conducting a “ root and branch ” review of the current system ahead of long-expected overhaul .
The review ’ s finding had been expected to be published before parliament ’ s summer recess , but it remains unclear whether this will @ @ @ @ @ @ @ .
Industry sources have said that the decision to have the government pay private firms a fee in exchange for running the services was in line with their expectations for the review ’ s findings .

Railway bailout has cost £3.5bn so far, government reveals
Aslef has called for a strike at the end of June.
The UK government has thus far spent £3.5bn keeping its railways running during the coronavirus pandemic, it has been revealed.
Responding to a parliamentary written question, rail minister Chris Heaton-Harris said: ‘Since the outbreak of Covid-19 the government has approved £3.5bn of additional expenditure to ensure that vital rail services continue to operate.
“Of this additional expenditure, £2.9bn relates to the 2020/21 financial year. It is not yet possible to provide an estimate of the total cost incurred to date”.
In total, the Department for Transport has drawn £7bn worth of cash from the government’s contingencies fund to cover the coronavirus epidemic, transport secretary Grant Shapps announced today.
On 23 March the government took the country’s rail franchises under emergency measures for six months in order to keep services running as passenger numbers plummeted 96 per cent.
Under the measures, the operators are receiving a management fee worth up to two per cent of their franchise’s cost base, which will be paid after the initial six months has elapsed.
Heaton-Harris added that the government had not yet made a decision about what will happen when the initial six month period elapses in September.
He said: ‘Work is underway within the government to determine the most effective approach at the end of the initial six months period of the Emergency Measures Agreements.
“This work will take account of the impact of Covid-19 on demand for passenger rail travel in both the short and long term, and the associated economic and financial impacts on the railway”.
Before the Open newsletter: Start your day with the City View podcast and key market data
It has been suggested that the government will have to keep propping up the UK’s rail firms beyond the initial six month period as passenger numbers are likely to remain low for some time to come.
Under the current social distancing guidelines of two metres, trains can only carry 15 per cent of their normal passenger capacity.
Should it be eased to one metre, as many across the economy have urged, passenger numbers will be able to rise to about 45 per cent of their normal amount, it is estimated.
The government’s decision to take the UK’s railways into – albeit temporary – public control has raised questions about the future of the franchising system.
Before the coronavirus struck, former chairman of British Airways Keith Williams was conducting a “root and branch” review of the current system ahead of long-expected overhaul.
The review’s finding had been expected to be published before parliament’s summer recess, but it remains unclear whether this will be the case due to the coronavirus.
Industry sources have said that the decision to have the government pay private firms a fee in exchange for running the services was in line with their expectations for the review’s findings.


cityam--2020-06-18--Michael Gove 'concerned' at how few UK businesses have made Brexit preparations

Cabinet Office minister Michael Gove has said he is worried about how few businesses have made Brexit preparations for the UK ’ s exit from the EU single market and customs union .
Gove , the defacto Brexit minister , said today that figures showing that almost two-thirds of businesses had made no preparations for the end of the Brexit transition period were “ concerning ” , but “ not surprising ” .
The UK ’ s transition period ends on 31 December and sees the country remain in the EU ’ s single market and customs union , despite @ @ @ @ @ @ @ .
UK and EU negotiators are currently hammering out a free trade deal to ensure there will not be a hard exit at the end of the transition period for businesses on both sides of the channel .
Negotiators are trying to broker a deal that will see the EU and UK continue to trade on tariff-free terms , while if no deal is reached then immediate trade barriers will be erected on World Trade Organisation ( WTO terms ) .
Politico reported today that the government was gearing up for a “ @ @ @ @ @ @ @ make the UK private sector aware of potential changes , after the UK leaves the transition period .
Before the Open newsletter : Start your day with the City View podcast and key market data Gove said this was particularly important considering that government data shows that 61 per cent of UK businesses have “ taken no action ” to prepare for Brexit .
When confronted with the 61 per cent figure today at a meeting of Westminster ’ s Northern Ireland committee , Gove said : “ It doesn ’ t surprise @ @ @ @ @ @ @ “ One of the reasons we do think it ’ s necessary to have an information campaign is to make sure people are ready for both the challenges and the opportunities as we prepare for life outside the EU and outside the single market .
“ There are a number of actions businesses have been encouraged to take , for example acquiring the wherewithal to be able to export to European countries once we are outside the customs union and single market , and to take advantage of free trade agreements and opportunities @ @ @ @ @ @ @ with EU chiefs on Monday , with all parties agreeing the negotiations needed “ more momentum ” after four rounds .
Johnson said afterward that talks needed “ a bit more oomph ” , but that a deal could be done by July .
“ As I said to the three presidents you know , ‘ put a tiger in the tank ’ , because it ’ s very clear what the UK needs and what our EU friends need to understand , ” he said .
“ We can ’ t have @ @ @ @ @ @ @ Justice in this country , we can ’ t have a system by where we continue to have to obey EU law even when we ’ re out of the EU and we ’ ve got to get a great deal for our fish.
” Particularly contentious areas in talks have been EU access to UK fishing waters , business competition regulations and the European Court of Justice ’ s role in governing a deal .
Read more : No-deal Brexit Q & A : What happens if UK-EU trade talks fail ?
@ @ @ @ @ @ @ away from talks before the end of summer , and prepare for a no-deal scenario , if they can not see a path to a trade agreement .
UK and EU negotiators will meet for a series of five consecutive week-long negotiating rounds beginning next month .

Michael Gove ‘concerned’ at how few UK businesses have made Brexit preparations
Michael Gove, the defacto Brexit minister, said figures showing that almost two-thirds of businesses had made no preparations for the end of the Brexit transition period were “concerning”, but “not surprising”.
Cabinet Office minister Michael Gove has said he is worried about how few businesses have made Brexit preparations for the UK’s exit from the EU single market and customs union.
Gove, the defacto Brexit minister, said today that figures showing that almost two-thirds of businesses had made no preparations for the end of the Brexit transition period were “concerning”, but “not surprising”.
The UK’s transition period ends on 31 December and sees the country remain in the EU’s single market and customs union, despite formally leaving the bloc on 31 January.
UK and EU negotiators are currently hammering out a free trade deal to ensure there will not be a hard exit at the end of the transition period for businesses on both sides of the channel.
Negotiators are trying to broker a deal that will see the EU and UK continue to trade on tariff-free terms, while if no deal is reached then immediate trade barriers will be erected on World Trade Organisation (WTO terms).
Politico reported today that the government was gearing up for a “shock and awe” advertising campaign to make the UK private sector aware of potential changes, after the UK leaves the transition period.
Before the Open newsletter: Start your day with the City View podcast and key market data
Gove said this was particularly important considering that government data shows that 61 per cent of UK businesses have “taken no action” to prepare for Brexit.
When confronted with the 61 per cent figure today at a meeting of Westminster’s Northern Ireland committee, Gove said: “It doesn’t surprise me, it does concern me.
“One of the reasons we do think it’s necessary to have an information campaign is to make sure people are ready for both the challenges and the opportunities as we prepare for life outside the EU and outside the single market.
“There are a number of actions businesses have been encouraged to take, for example acquiring the wherewithal to be able to export to European countries once we are outside the customs union and single market, and to take advantage of free trade agreements and opportunities elsewhere.”
Prime Minister Boris Johnson met with EU chiefs on Monday, with all parties agreeing the negotiations needed “more momentum” after four rounds.
Johnson said afterward that talks needed “a bit more oomph”, but that a deal could be done by July.
“As I said to the three presidents you know, ‘put a tiger in the tank’, because it’s very clear what the UK needs and what our EU friends need to understand,” he said.
“We can’t have the involvement of the European Court of Justice in this country, we can’t have a system by where we continue to have to obey EU law even when we’re out of the EU and we’ve got to get a great deal for our fish.”
Particularly contentious areas in talks have been EU access to UK fishing waters, business competition regulations and the European Court of Justice’s role in governing a deal.
UK negotiators have said they will walk away from talks before the end of summer, and prepare for a no-deal scenario, if they cannot see a path to a trade agreement.
UK and EU negotiators will meet for a series of five consecutive week-long negotiating rounds beginning next month.


cityam--2020-06-18--Wirecard shares plummet as firm admits €1.9bn of cash is missing

Wirecard shares plummeted more than 66 per cent this morning after the payments group announced its auditor could not confirm the existence of €1.9bn ( £1.71bn ) in cash .
The German firm today said there were indications that a trustee of Wirecard bank accounts had tried to “ deceive the auditor and create a wrong perception of the existence of cash balances ” .
The €1.9bn cash hole is equivalent to a quarter of Wirecard ’ s balance sheet .
Read more : TCI files criminal complaint against Wirecard executives in Munich Shares in the payment processor plunged more @ @ @ @ @ @ @ , marking its biggest fall on record , before settling slightly at 63 per cent down at 4.45pm .
Wirecard registered a market value of €24bn at its launch on Germany ’ s Dax 30 just two years ago , replacing heavyweight Commerzbank , to sit in the ranks of giants such as Volkswagen , Siemens , and Deutsche Bank .
But today ’ s share price plunge means the firm is now valued at little over €4bn .
Wirecard today confirmed that it will postpone publishing its 2019 financial accounts , after @ @ @ @ @ @ @ In a statement , the company said that if financial reports for 2019 were not published by 19 June , then €2bn worth of loans to the company could “ be terminated ” .
The announcement further unsettles the position of chief executive Markus Braun , whose tenure at the helm has seen Wirecard plagued with allegations of financial inaccuracy .
“ It is currently unclear whether fraudulent transactions to the detriment of Wirecard have occurred , ” Braun said today .
“ Wirecard will file a complaint against unknown persons.
” The @ @ @ @ @ @ @ payment transaction services and risk management , has been repeatedly accused of inflating its accounts , and has delayed its financial statements four times this year .
In April , KPMG said it was unable to verify whether large parts of the fintech ’ s profits were real .
Meanwhile last October , Wirecard staff were reported to have fraudulently inflated profits at Wirecard ’ s Dubai and Dublin subsidiaries , the Financial Times reported .
The firm ’ s headquarters were searched in May by German police as part of a probe @ @ @ @ @ @ @ .
Read more : Britain ’ s tech sector takes in $ 5.3bn in first half of 2020 “ Having questions being asked about the reliability of your accounts is bad enough , but to make matters worse , if the group doesn ’ t publish its 2019 results by tomorrow it runs the risk of being in breach of covenants , ” said David Madden , market analyst at CMC Markets .
“ Credit lines can be tricky to achieve when your company is in good health , let alone when some @ @ @ @ @ @ @ .
”

Wirecard shares plummet as firm admits €1.9bn of cash is missing
Wirecard shares plummeted more than 66 per cent this morning after the payments group announced its auditor could not confirm the existence of €1.9bn (£1.71bn) in cash.
The German firm today said there were indications that a trustee of Wirecard bank accounts had tried to “deceive the auditor and create a wrong perception of the existence of cash balances”. The €1.9bn cash hole is equivalent to a quarter of Wirecard’s balance sheet.
Shares in the payment processor plunged more than 66 per cent at market open, marking its biggest fall on record, before settling slightly at 63 per cent down at 4.45pm.
Wirecard registered a market value of €24bn at its launch on Germany’s Dax 30 just two years ago, replacing heavyweight Commerzbank, to sit in the ranks of giants such as Volkswagen, Siemens, and Deutsche Bank.
But today’s share price plunge means the firm is now valued at little over €4bn.
Wirecard today confirmed that it will postpone publishing its 2019 financial accounts, after EY said they required additional audits. In a statement, the company said that if financial reports for 2019 were not published by 19 June, then €2bn worth of loans to the company could “be terminated”.
The announcement further unsettles the position of chief executive Markus Braun, whose tenure at the helm has seen Wirecard plagued with allegations of financial inaccuracy.
“It is currently unclear whether fraudulent transactions to the detriment of Wirecard have occurred,” Braun said today. “Wirecard will file a complaint against unknown persons.”
The Aschleim-headquarted company, which offers customers electronic payment transaction services and risk management, has been repeatedly accused of inflating its accounts, and has delayed its financial statements four times this year.
In April, KPMG said it was unable to verify whether large parts of the fintech’s profits were real.
Meanwhile last October, Wirecard staff were reported to have fraudulently inflated profits at Wirecard’s Dubai and Dublin subsidiaries, the Financial Times reported.
The firm’s headquarters were searched in May by German police as part of a probe involving the company’s senior management.
“Having questions being asked about the reliability of your accounts is bad enough, but to make matters worse, if the group doesn’t publish its 2019 results by tomorrow it runs the risk of being in breach of covenants,” said David Madden, market analyst at CMC Markets.
“Credit lines can be tricky to achieve when your company is in good health, let alone when some people don’t believe your figures.”
Wirecard was contacted for comment.


cityam--2020-06-18--Horse Racing Betting Tips: Wooded has the Power for France in the Commonwealth Cup

AFTER all of the rain yesterday , the weather is set fairer for the penultimate day of the Royal meeting .
We ’ ve seen the introduction of plenty of new races this week and none are more intriguing than the five furlong handicap which opens today ’ s card .
There may be a huge field for the Palace Of Holyroodhouse handicap ( 1.15 pm ) , but the race may not be as competitive as it looks .
ART POWER rounded off his two-year-old campaign with an emphatic success on soft ground at York and looked to have @ @ @ @ @ @ @ .
He shouldered a penalty that day which made his success all the more impressive , and trainer Tim Easterby has never made any secret about the regard in which he holds this colt .
Connections could easily have had a crack at the Group One Commonwealth cup later on the card , but feel that this five furlong trip on soft ground is ideal for him at this stage of his career .
He will handle ground conditions , and his draw in stall 19 looks another huge positive too based on @ @ @ @ @ @ @ available in some places this morning looks well worth snapping up .
Looking at the rest of Friday ’ s card , it may be a day to tread carefully .
Eye Of Heaven should take all the beating in the Norfolk Stakes ( 2.25pm ) as the horse he beat at Newmarket went on to win Wednesday ’ s Windsor Castle Stakes .
However , he is plenty short enough at around 6/4 and may be worth swerving with the Aidan O ’ Brien runner LIPIZZANER at 9/2 .
He ’ s @ @ @ @ @ @ @ be better suited to the slog in the mud .
Elarqam and Anthony Van Dyck are currently battling it out for favouritism in the Hardwicke Stakes ( 3:35 pm ) and they will probably fight out the finish too .
However , the rain is a great leveller and Defoe , Fanny Logan and Hamish could easily grab the glory .
For that reason , I ’ ll leave the race alone and wait for French raider WOODED at 6/1 in the Commonwealth Cup ( 3.35pm ) .
He won ’ t mind @ @ @ @ @ @ @ his reappearance .
Finally , the Duke Of Edinburgh Stakes ( 4.40pm ) looks as impossible to solve as you would imagine .
West End Charmer was given a brilliant ride from the front last time , but this represents a very different test .
Instead , I ’ ll take a chance on DURSTON at 15/2 .
He was progressive last season and has been gelded which may help him in his races .
The ground should be no problem and he shouldn ’ t be too far away .

Horse Racing Betting Tips: Wooded has the Power for France in the Commonwealth Cup
NEWCASTLE UPON TYNE, ENGLAND – JUNE 01: Silvestre De Sousa riding Art Power win The Betway Novice Stakes (Div II) at Newcastle Racecourse on June 01, 2020 in Newcastle upon Tyne, England. Horseracing resumes today for the first time since March 17th as the government relaxes some of the strictest lockdown measures due to the Covid-19 pandemic. (Photo by Alan Crowhurst/Getty Images)
AFTER all of the rain yesterday, the weather is set fairer for the penultimate day of the Royal meeting.
We’ve seen the introduction of plenty of new races this week and none are more intriguing than the five furlong handicap which opens today’s card.
There may be a huge field for the Palace Of Holyroodhouse handicap (1.15 pm), but the race may not be as competitive as it looks.
ART POWER rounded off his two-year-old campaign with an emphatic success on soft ground at York and looked to have improved again on his return at Newcastle.
He shouldered a penalty that day which made his success all the more impressive, and trainer Tim Easterby has never made any secret about the regard in which he holds this colt.
Connections could easily have had a crack at the Group One Commonwealth cup later on the card, but feel that this five furlong trip on soft ground is ideal for him at this stage of his career.
He will handle ground conditions, and his draw in stall 19 looks another huge positive too based on the first few days.
The 5/2 available in some places this morning looks well worth snapping up.
Looking at the rest of Friday’s card, it may be a day to tread carefully.
Eye Of Heaven should take all the beating in the Norfolk Stakes (2.25pm) as the horse he beat at Newmarket went on to win Wednesday’s Windsor Castle Stakes.
However, he is plenty short enough at around 6/4 and may be worth swerving with the Aidan O’Brien runner LIPIZZANER at 9/2.
He’s already had two races and may just be better suited to the slog in the mud.
Elarqam and Anthony Van Dyck are currently battling it out for favouritism in the Hardwicke Stakes (3:35 pm) and they will probably fight out the finish too.
However, the rain is a great leveller and Defoe, Fanny Logan and Hamish could easily grab the glory.
For that reason, I’ll leave the race alone and wait for French raider WOODED at 6/1 in the Commonwealth Cup (3.35pm).
He won’t mind the soft ground and looked speedy on his reappearance.
Finally, the Duke Of Edinburgh Stakes (4.40pm) looks as impossible to solve as you would imagine.
West End Charmer was given a brilliant ride from the front last time, but this represents a very different test.
Instead, I’ll take a chance on DURSTON at 15/2.
He was progressive last season and has been gelded which may help him in his races.
The ground should be no problem and he shouldn’t be too far away.
Pointers
Art Power 5/2 1.15pm Royal Ascot
Lipizzaner 3/1 2.25pm Royal Ascot
Wooded e/w 6/1 3.35pm Royal Ascot
Durston e/w 15/2 4.40pm Royal Ascot


cityam--2020-06-19--Coronavirus present in Italy in December, sewage study confirms

A study has found traces of the new coronavirus disease in sewage in Italy from December , suggesting the virus was already spreading in Italy before China declared its first cases .
Scientists studying wastewater found that samples taken from Milan and Turin on 18 December already contained the virus .
Read more : UK coronavirus threat level set for downgrade as cases decline The findings add to a growing body of evidence that the virus may have been in wider circulation at an earlier point than previously believed .
Northern Italy was the centre of the initial coronavirus outbreak @ @ @ @ @ @ @ its first confirmed case in mid-February .
A patient from the town of Codogno in Lombardy was the country ’ s first non-imported case , triggering a series of escalating lockdowns first encapsulating the region and then the entire country .
Italy has one of the world ’ s worst death tolls from the disease , with more than 40,000 people having lost their lives so far .
Before the Open newsletter : Start your day with the City View podcast and key market data In a statement , Giuseppina La Rosa of @ @ @ @ @ @ @ said the findings could help scientists better understand the spread of the virus in the country .
Samples positive for traces of the virus that causes Covid-19 were also found in sewage from Bologna , Milan and Turin in January and February 2020 .
Samples taken in October and November 2019 tested negative .
However , La Rosa warned that the findings did not “ automatically imply that the main transmission chains that led to the development of the epidemic in our country originated from these very first cases ” .
Read more @ @ @ @ @ @ @ as coronavirus lockdown lifts Other countries have also been examining sewage for traces of the disease in order to track the virus ’ spread .
In Spain , a similar study found traces of the disease in January , some 40 days before the country declared its first cases .

Coronavirus present in Italy in December, sewage study confirms
A study has found traces of the new coronavirus disease in sewage in Italy from December, suggesting the virus was already spreading in Italy before China declared its first cases.
Scientists studying wastewater found that samples taken from Milan and Turin on 18 December already contained the virus.
The findings add to a growing body of evidence that the virus may have been in wider circulation at an earlier point than previously believed.
Northern Italy was the centre of the initial coronavirus outbreak in the Mediterranean country, which reported its first confirmed case in mid-February.
A patient from the town of Codogno in Lombardy was the country’s first non-imported case, triggering a series of escalating lockdowns first encapsulating the region and then the entire country.
Italy has one of the world’s worst death tolls from the disease, with more than 40,000 people having lost their lives so far.
Before the Open newsletter: Start your day with the City View podcast and key market data
In a statement, Giuseppina La Rosa of Italy’s National Institute of Health said the findings could help scientists better understand the spread of the virus in the country.
Samples positive for traces of the virus that causes Covid-19 were also found in sewage from Bologna, Milan and Turin in January and February 2020. Samples taken in October and November 2019 tested negative.
However, La Rosa warned that the findings did not “automatically imply that the main transmission chains that led to the development of the epidemic in our country originated from these very first cases”.
Other countries have also been examining sewage for traces of the disease in order to track the virus’ spread.
In Spain, a similar study found traces of the disease in January, some 40 days before the country declared its first cases.


cityam--2020-06-19--Let retail investors help aid a rapid recovery

Since lockdown began , there has been a trend of companies acting to build up their reserves through equity fundraises — with over £10bn raised since the pandemic began .
However , the vast majority of these fundraises have so far not been open to retail investors .
While companies urgently need liquidity now more than ever , neglecting to properly include retail investors , many of whom are shareholders , carries significant consequences for the UK ’ s listed companies , and for the national economy .
Read more : AIM shows signs of life as it celebrates its @ @ @ @ @ @ @ retail investors tend to focus their investments on the small to mid-cap growth businesses .
These account for roughly half of GDP , and will be central to the UK ’ s recovery as it emerges from the crisis .
According to a recent Economist Intelligence Unit report , while retail investors own 13.5 per cent of the wider market , they own close to 30 per cent of shares listed on AIM — the mid-cap growth index that celebrates its twenty-fifth anniversary today .
It is a shame , then , that @ @ @ @ @ @ @ empowered so many retail investors to back growth businesses ( this year 158 companies raised over £1.9bn in follow-on capital on AIM ) is currently being marked by a lot of them being denied precisely this chance .
Second , retail investors provide vital liquidity and are more likely to be loyal investors , committing their capital over a longer-term horizon relative to institutional investors .
The economic upheaval currently facing the country can not be understated .
This is a far greater challenge than even the one presented by the 2008 global @ @ @ @ @ @ @ of the speed of its onset , but also in terms of its scale .
Britain ’ s economy shrank by a record 20.4 per cent in April , and despite the speedy implementation of emergency measures by the government , company revenues are collapsing at a far faster rate .
Now , according to the OECD , out of all major nations the UK is expected to be the country worst hit by the coronavirus pandemic this year .
The British economy is forecast to suffer an economic drop in the range @ @ @ @ @ @ @ far greater than the worst-case-scenario 7.6 per cent slump predicted to affect the global economy , and greater still than the six per cent lost from 2007 to 2008 .
Given these adverse conditions , every pool of capital should be being utilised .
Instead of being deliberately excluded , retail investors should be actively courted to back new equity issues .
They have already demonstrated that they are keen to invest .
In fact , in recent weeks retail investment represented over 20 per cent of the volume on the FTSE All @ @ @ @ @ @ @ this volume being buy orders .
UK stockbroking platforms are also reporting over three-fold increases in new account openings — likely a sign of numerous new investors looking to capitalise on undervalued shares .
Finally , not only is the exclusion of retail investors counterproductive , it is also unnecessary .
The technology now exists to run a retail offer as part of an accelerated fundraise with no delay to the issuance timeline or impact on pricing .
One example is PrimaryBid ( a finnCap investee company ) , which has partnered with @ @ @ @ @ @ @ that .
The overriding message during this period of national crisis is that we are all in this together .
This a sensible approach both to Covid-19 and to fundraising .
The more money we can supply from the broadest pool of capital possible , the more UK businesses can be supported , and the faster will be our eventual recovery .
And that is in all our interests .
Read more : Exclusive : Investors dash for cash savings despite historically low interest rates

Let retail investors help aid a rapid recovery
Given the current adverse economic conditions, every pool of capital should be being utilised
Since lockdown began, there has been a trend of companies acting to build up their reserves through equity fundraises — with over £10bn raised since the pandemic began.
However, the vast majority of these fundraises have so far not been open to retail investors.
While companies urgently need liquidity now more than ever, neglecting to properly include retail investors, many of whom are shareholders, carries significant consequences for the UK’s listed companies, and for the national economy.
Why? First, because retail investors tend to focus their investments on the small to mid-cap growth businesses. These account for roughly half of GDP, and will be central to the UK’s recovery as it emerges from the crisis.
According to a recent Economist Intelligence Unit report, while retail investors own 13.5 per cent of the wider market, they own close to 30 per cent of shares listed on AIM — the mid-cap growth index that celebrates its twenty-fifth anniversary today.
It is a shame, then, that the anniversary of an exchange that has empowered so many retail investors to back growth businesses (this year 158 companies raised over £1.9bn in follow-on capital on AIM) is currently being marked by a lot of them being denied precisely this chance.
Second, retail investors provide vital liquidity and are more likely to be loyal investors, committing their capital over a longer-term horizon relative to institutional investors.
The economic upheaval currently facing the country cannot be understated. This is a far greater challenge than even the one presented by the 2008 global financial crisis — not just in terms of the speed of its onset, but also in terms of its scale. Britain’s economy shrank by a record 20.4 per cent in April, and despite the speedy implementation of emergency measures by the government, company revenues are collapsing at a far faster rate.
Now, according to the OECD, out of all major nations the UK is expected to be the country worst hit by the coronavirus pandemic this year. The British economy is forecast to suffer an economic drop in the range of 11.5–14 per cent in 2020 — far greater than the worst-case-scenario 7.6 per cent slump predicted to affect the global economy, and greater still than the six per cent lost from 2007 to 2008.
Given these adverse conditions, every pool of capital should be being utilised. Instead of being deliberately excluded, retail investors should be actively courted to back new equity issues.
They have already demonstrated that they are keen to invest. In fact, in recent weeks retail investment represented over 20 per cent of the volume on the FTSE All Share, with 60–74 per cent of this volume being buy orders. UK stockbroking platforms are also reporting over three-fold increases in new account openings — likely a sign of numerous new investors looking to capitalise on undervalued shares.
Finally, not only is the exclusion of retail investors counterproductive, it is also unnecessary. The technology now exists to run a retail offer as part of an accelerated fundraise with no delay to the issuance timeline or impact on pricing. One example is PrimaryBid (a finnCap investee company), which has partnered with the London Stock Exchange to do precisely that.
The overriding message during this period of national crisis is that we are all in this together. This a sensible approach both to Covid-19 and to fundraising.
The more money we can supply from the broadest pool of capital possible, the more UK businesses can be supported, and the faster will be our eventual recovery.
And that is in all our interests.
Main image credit: Getty


cityam--2020-06-19--Wirecard chief quits as shares plummet over missing €1.9bn

Wirecard chief executive Markus Braun has resigned with immediate effect after the German payments firm ’ s disclosure of a €1.9bn ( £1.7bn ) accounting black hole sent shares into a tailspin .
Shares have plunged more than 80 per cent since Wednesday ’ s close after auditor EY yesterday refused to sign off Wirecard ’ s financial accounts after discovering that €1.9bn of cash was “ missing ” .
Wirecard shares deepened yesterday ’ s losses of 62 per cent , sliding a further 52 per cent this morning .
Shares settled slightly on news of Braun ’ s @ @ @ @ @ @ @ cent to €25.2 at 1pm .
Wirecard said Braun ’ s departure happened “ in mutual consent with the supervisory board ” .
His exit follows the suspension of Wirecard ’ s chief operating officer Jan Marsalek yesterday .
Braun , who was named Wirecard chief executive in 2002 , has plugged tens of millions of euros of his own money into the firm , which has seen its valuation plunge from €24bn at its launch on Germany ’ s Dax 30 just two years ago , to little under €3bn today .
@ @ @ @ @ @ @ yesterday from Deutsche Boerse , has been appointed interim chief executive , Wirecard said in a statement today .
It comes after two of Germany ’ s biggest investors today said they were considering legal action against Wirecard over the missing cash .
Asset managers Union Investment and DWS both issued statements saying they were investigating the accounting scandal and were prepared to sue .
Wirecard was plunged into crisis yesterday when its in-house auditor delayed the release of the fintech ’ s financial accounts after discovering that €1.9bn held in escrow accounts @ @ @ @ @ @ @ BDO Unibank , the Philippines ’ largest bank by assets , and the Bank of the Philippine Islands , today denied any relationship with Wirecard .
“ Wirecard is not a client of the bank .
The document claiming the existence of a Wirecard account with BDO is a falsified document and carries forged signatures of bank officers , ” BDO Unibank chief executive Nestor Tan said in a statement .
“ Wirecard is not even a depositor — we have no relationship with them ” .
The Bank of the Philippines said @ @ @ @ @ @ @ investigate the issue and that Wirecard was not a client of the Manila-based bank .
The German fintech will face the possibility of having to repay €2bn in bank loans if its results are not signed off by the end of the day today .
In a video statement published last night , Braun said it was “ unclear ” why the banks “ have stated to the auditor that the confirmations are spurious ” .
Read more : Wirecard short sellers make ‘ a fortune ’ as shares nosedive on missing €1.9bn @ @ @ @ @ @ @ “ the aggrieved party in a case of fraud of considerable proportions.
” The German payments firm , which offers customers electronic payment transaction services and risk management , has been repeatedly accused of inflating its accounts , and has delayed its financial statements four times this year .
EY ’ s discovery yesterday of financial inaccuracies is the latest in a long string of accounting blunders for the company .
In April , auditing firm KPMG said it was unable to verify whether large parts of the fintech ’ s profits were @ @ @ @ @ @ @ were reported to have fraudulently inflated profits at Wirecard ’ s Dubai and Dublin subsidiaries , the Financial Times reported .
The firm ’ s headquarters were searched in May by German police as part of a probe involving the company ’ s senior management .
Shot sellers have repeatedly claimed Wirecard ’ s valuation is overhyped , and yesterday cashed in on the sharp sell off .
Before the Open : Get the jump on the markets with our early morning newsletter

Wirecard chief quits as shares plummet over missing €1.9bn
Wirecard chief executive Markus Braun has resigned with immediate effect after the German payments firm’s disclosure of a €1.9bn (£1.7bn) accounting black hole sent shares into a tailspin.
Shares have plunged more than 80 per cent since Wednesday’s close after auditor EY yesterday refused to sign off Wirecard’s financial accounts after discovering that €1.9bn of cash was “missing”.
Wirecard shares deepened yesterday’s losses of 62 per cent, sliding a further 52 per cent this morning. Shares settled slightly on news of Braun’s departure, and were down 26 per cent to €29.6 at 3.50pm.
Wirecard said Braun’s departure happened “in mutual consent with the supervisory board”. His exit follows the suspension of Wirecard’s chief operating officer Jan Marsalek yesterday.
Braun, who was named Wirecard chief executive in 2002, has plugged tens of millions of euros of his own money into the firm, which has seen its valuation plunge from €24bn at its launch on Germany’s Dax 30 just two years ago, to little under €3bn today.
James Freis, who joined the company yesterday from Deutsche Boerse, has been appointed interim chief executive, Wirecard said in a statement today.
It comes after two of Germany’s biggest investors today said they were considering legal action against Wirecard over the missing cash. Asset managers Union Investment and DWS both issued statements saying they were investigating the accounting scandal and were prepared to sue.
Wirecard was plunged into crisis yesterday when its in-house auditor delayed the release of the fintech’s financial accounts after discovering that €1.9bn held in escrow accounts at two Filipino banks was missing.
BDO Unibank, the Philippines’ largest bank by assets, and the Bank of the Philippine Islands, today denied any relationship with Wirecard.
“Wirecard is not a client of the bank. The document claiming the existence of a Wirecard account with BDO is a falsified document and carries forged signatures of bank officers,” BDO Unibank chief executive Nestor Tan said in a statement. “Wirecard is not even a depositor — we have no relationship with them”.
The Bank of the Philippines said in a separate statement that it would investigate the issue and that Wirecard was not a client of the Manila-based bank.
The German fintech will face the possibility of having to repay €2bn in bank loans if its results are not signed off by the end of the day today.
Wirecard is holding emergency talks to secure a financial lifeline, according to people familiar with the matter;
In a video statement published last night, Braun said it was “unclear” why the banks “have stated to the auditor that the confirmations are spurious”.
He added that Wirecard may have become “the aggrieved party in a case of fraud of considerable proportions.”
But analysts
The German payments firm, which offers customers electronic payment transaction services and risk management, has been repeatedly accused of inflating its accounts, and has delayed its financial statements four times this year.
EY’s discovery yesterday of financial inaccuracies is the latest in a long string of accounting blunders for the company.
In April, auditing firm KPMG said it was unable to verify whether large parts of the fintech’s profits were real. Last October, Wirecard staff were reported to have fraudulently inflated profits at Wirecard’s Dubai and Dublin subsidiaries, the Financial Times reported.
The firm’s headquarters were searched in May by German police as part of a probe involving the company’s senior management.
Short sellers have repeatedly claimed Wirecard’s valuation is overhyped, and yesterday cashed in on the sharp sell off.
Before the Open: Get the jump on the markets with our early morning newsletter


cityam--2020-06-19--Horse Racing Betting Tips: Speak In Colours looks Diamond bet at 25/1 in Jubilee

THERE are a whopping eight races to get our teeth into on the final day of Royal Ascot on Saturday .
Now that the rain seems to have gone , the ground will be drying out but it will still be pretty hard work .
The Queen Mary Stakes ( 1.15pm ) looks at the mercy of Aidan O ’ Brien and his filly Most Beautiful .
However , she is very short at around 6/4 and with the ground the way it is , and the daughter of War Front may be best watched .
The colts take the @ @ @ @ @ @ @ ) and the O ’ Brien battalion again look to have a strong hand with Admiral Nelson .
He looked useful at the Curragh last week and the son of Kingman is arguably a safer proposition on the ground than Most Beautiful .
Instead , I ’ m going to take a chance on in-form Roger Varian ’ s DARK LION at 12/1 with Betfred ( four places each-way ) .
The son of Dark Angel should be fine on the ground and was very green on his debut at Newmarket before the @ @ @ @ @ @ @ seen this week that two-year-olds can step up dramatically from their first run , notably Tactical who won Wednesday ’ s Windsor Castle Stakes on the back of defeat on debut .
Varian has his team in great fettle this week and Dark Lion looks a sporting each-way bet against the favourite .
Quadrilateral looks the one to beat in the Coronation Stakes ( 2.25pm ) although she will benefit from stepping up in trip in time .
The testing ground will also be in her favour as it will make it more @ @ @ @ @ @ @ .
She is pretty short though at 9/4 and this could be another race just to watch .
The colts get their turn in the next , with Pinatubo and Wichita locking horns again in the St James ’ s Palace Stakes ( 3.00pm ) after finishing second and third behind Kameko in the 2000 Guineas .
That sets the bar pretty high from a form perspective , but both had hard races that day and I ’ m prepared to take them on .
I was disappointed that PALACE PIER didn ’ @ @ @ @ @ @ @ for a softer race on the same day at Newcastle .
Trainer John Gosden may be rewarded for his patience however as this brilliant son of Kingman may benefit from his quieter preparation .
He should be fine on the ground and looks a colt of serious quality .
Frankie Dettori takes the ride and the 4/1 freely available looks the value call .
The Diamond Jubilee Stakes ( 3.35 pm ) is always a race I look forward to and this year is no different .
Irish raider Sceptical could easily be @ @ @ @ @ @ @ but is very short at the head of the market at 2/1 despite being on the rapid upgrade .
If any more rain falls , I ’ d seriously fancy the chances of One Master who was only narrowly denied here in the Champions Sprint last October .
However , at the prices I can ’ t help but have a few quid each-way at 25/1 on SPEAK IN COLOURS .
He goes well at Ascot having finished fourth in this 12 months ago and sixth in the Champions Sprint .
Six furlongs @ @ @ @ @ @ @ ideal and last week ’ s spin over seven furlongs will hopefully have put him spot on for this .
The Wokingham Stakes ( 4.10 pm ) looks as tricky a puzzle to solve as always .
It often pays to look for the potential Group horse lurking in a handicap and Bielsa looks like he could tick that box .
I certainly wouldn ’ t put anyone off backing him , but I will personally sit the race out .
The final race on the card is the Queen Alexandra Stakes ( @ @ @ @ @ @ @ race on the British flat racing calendar .
Alan King won the Ascot Stakes earlier in the week and must have a massive chance of landing the last with WHO DARES WINS .
He is a classy dual purpose stayer , who has run well in races like the Chester Cup in the past .
The ground won ’ t inconvenience him and the 7/2 available with William Hill should be snapped up .

Horse Racing Betting Tips: Speak In Colours looks Diamond bet at 25/1 in Jubilee
RATOATH, IRELAND – DECEMBER 01: Joseph O’Brien poses at Fairyhouse Racecourse on December 01, 2019 in Ratoath, Ireland. (Photo by Alan Crowhurst/Getty Images)
THERE are a whopping eight races to get our teeth into on the final day of Royal Ascot on Saturday.
Now that the rain seems to have gone, the ground will be drying out but it will still be pretty hard work.
The Queen Mary Stakes (1.15pm) looks at the mercy of Aidan O’Brien and his filly Most Beautiful.
However, she is very short at around 6/4 and with the ground the way it is, and the daughter of War Front may be best watched.
The colts take the stage in the Coventry Stakes (1.50pm) and the O’Brien battalion again look to have a strong hand with Admiral Nelson.
He looked useful at the Curragh last week and the son of Kingman is arguably a safer proposition on the ground than Most Beautiful.
Instead, I’m going to take a chance on in-form Roger Varian’s DARK LION at 12/1 with Betfred (four places each-way).
The son of Dark Angel should be fine on the ground and was very green on his debut at Newmarket before the penny finally dropped.
We have already seen this week that two-year-olds can step up dramatically from their first run, notably Tactical who won Wednesday’s Windsor Castle Stakes on the back of defeat on debut.
Varian has his team in great fettle this week and Dark Lion looks a sporting each-way bet against the favourite.
Quadrilateral looks the one to beat in the Coronation Stakes (2.25pm) although she will benefit from stepping up in trip in time.
The testing ground will also be in her favour as it will make it more of a test for these three-year-old fillies.
She is pretty short though at 9/4 and this could be another race just to watch.
The colts get their turn in the next, with Pinatubo and Wichita locking horns again in the St James’s Palace Stakes (3.00pm) after finishing second and third behind Kameko in the 2000 Guineas.
That sets the bar pretty high from a form perspective, but both had hard races that day and I’m prepared to take them on.
I was disappointed that PALACE PIER didn’t run at Newmarket and instead opted for a softer race on the same day at Newcastle.
Trainer John Gosden may be rewarded for his patience however as this brilliant son of Kingman may benefit from his quieter preparation.
He should be fine on the ground and looks a colt of serious quality.
Frankie Dettori takes the ride and the 4/1 freely available looks the value call.
The Diamond Jubilee Stakes (3.35 pm) is always a race I look forward to and this year is no different.
Irish raider Sceptical could easily be the new king on the sprinting block but is very short at the head of the market at 2/1 despite being on the rapid upgrade.
If any more rain falls, I’d seriously fancy the chances of One Master who was only narrowly denied here in the Champions Sprint last October.
However, at the prices I can’t help but have a few quid each-way at 25/1 on SPEAK IN COLOURS.
He goes well at Ascot having finished fourth in this 12 months ago and sixth in the Champions Sprint.
Six furlongs on ground with cut in it is ideal and last week’s spin over seven furlongs will hopefully have put him spot on for this.
The Wokingham Stakes (4.10 pm) looks as tricky a puzzle to solve as always.
It often pays to look for the potential Group horse lurking in a handicap and Bielsa looks like he could tick that box.
I certainly wouldn’t put anyone off backing him, but I will personally sit the race out.
The final race on the card is the Queen Alexandra Stakes (4.40pm) which is incidentally the longest race on the British flat racing calendar.
Alan King won the Ascot Stakes earlier in the week and must have a massive chance of landing the last with WHO DARES WINS.
He is a classy dual purpose stayer, who has run well in races like the Chester Cup in the past.
The ground won’t inconvenience him and the 7/2 available with William Hill should be snapped up.
Pointers
Dark Lion 12/1 e/w 1.15pm Royal Ascot
Palace Pier 4/1 2.25pm Royal Ascot
Speak In Colours 25/1 e/w 3.35pm Royal Ascot
Who Dares Wins 7/2 4.40pm Royal Ascot


cityam--2020-06-19--Oil prices hit highest levels since early March as Opec+ pledges cut compliance

Oil prices topped $ 42 today after oil producer group Opec and its allies pledged better compliance with record production cuts in a meeting yesterday .
Worldwide standard Brent crude rose 2.3 per cent to hit $ 42.46 this morning , extending gains from its previous session .
Read more : Oil prices begin slide over coronavirus second wave fears Meanwhile , US benchmark West Texas Intermediate was headed back towards $ 40 where its previous rally ran out of steam , increasing 2.8 per cent this morning .
Both standards are now trading at their highest levels since early @ @ @ @ @ @ @ wider Opec+ alliance yesterday , Iraq and Kazakhstan said they would comply better with cuts , a source told Reuters .
Earlier this month , the cartel agreed to extend its record curbs of 9.7m barrels per day through July , further soothing an oil market which has been beset by volatility for much of the past three months .
Before the Open newsletter : Start your day with the City View podcast and key market data Since April ’ s historic lows , which saw Brent plunge to pre-millenium levels and WTI @ @ @ @ @ @ @ time in history , prices have steadily gained on a combination of market support and a slow return of demand .
A spike in cases in Beijing this week threatened to derail the rally , but the outcome of the Opec meeting appears to have calmed traders ’ nerves .
Rystad Energy ’ s senior oil analyst Paola Rodriguez-Masiu said : “ Complying with the full amount of 9.7m barrels per day , means shutting another million barrels of daily production .
That ’ s not negligible and it is definitely a boost @ @ @ @ @ @ @ : BP to write off up to $ 17.5bn after oil price crash She added that although the meeting did not yield a recommendation to extend cuts through August , prices rose regardless , suggesting the $ 40 levels were here to stay .
“ Prices from now on should grow naturally , without further artificial support from the supply side .
Demand will be the force than will drive the market recovery from now on ” , Rodriguez-Masiu added .

Oil prices hit highest levels since early March as Opec+ pledges cut compliance
Oil prices topped $42 today after oil producer group Opec and its allies pledged better compliance with record production cuts in a meeting yesterday.
Worldwide standard Brent crude rose 2.3 per cent to hit $42.46 this morning, extending gains from its previous session.
Meanwhile, US benchmark West Texas Intermediate was headed back towards $40 where its previous rally ran out of steam, increasing 2.8 per cent this morning.
Both standards are now trading at their highest levels since early March.
During a meeting of the wider Opec+ alliance yesterday, Iraq and Kazakhstan said they would comply better with cuts, a source told Reuters.
Earlier this month, the cartel agreed to extend its record curbs of 9.7m barrels per day through July, further soothing an oil market which has been beset by volatility for much of the past three months.
Before the Open newsletter: Start your day with the City View podcast and key market data
Since April’s historic lows, which saw Brent plunge to pre-millenium levels and WTI fall into the negative for the first time in history, prices have steadily gained on a combination of market support and a slow return of demand.
A spike in cases in Beijing this week threatened to derail the rally, but the outcome of the Opec meeting appears to have calmed traders’ nerves.
Rystad Energy’s senior oil analyst Paola Rodriguez-Masiu said: “Complying with the full amount of 9.7m barrels per day, means shutting another million barrels of daily production. That’s not negligible and it is definitely a boost factor for prices”.
She added that although the meeting did not yield a recommendation to extend cuts through August, prices rose regardless, suggesting the $40 levels were here to stay.
“Prices from now on should grow naturally, without further artificial support from the supply side. Demand will be the force than will drive the market recovery from now on”, Rodriguez-Masiu added.


cityam--2020-06-19--As China gears up on the cyber offensive, we need herd immunity to boost our national resilience

With a GDP of $ 13.5 trillion , dwarfing Britain ’ s by almost $ 12 trillion , China is the third most economically powerful country in the world after Russia and the US — for now at least .
And as the coronavirus outbreak disrupts the world in a way not seen since the Second World War , China is seeking to improve its position .
Over the past 10 years , the widespread pastime of hacking in China has gradually come to light .
Read more : China hawks risk accelerating the outcomes they are trying to avoid @ @ @ @ @ @ @ hackers are allegedly not endorsed by the Chinese government , coincidentally they share the same interests — the so-called “ Chinese hacker army ” presents a clear and present threat to every business outside China .
Now , the Covid-19 pandemic has presented a formidable cloak from behind which China is delivering state-sponsored cyber attacks .
As “ have-a-go fraudsters ” use the coronavirus outbreak as an opportunity to dupe and coerce unsuspecting individuals to part with their cash for one scam cause or another , it seems that China ’ s state-sponsored @ @ @ @ @ @ @ weaponising coronavirus data to deliver attack payloads .
The most recent state-sponsored attack targeted the Mongolian public sector with a malware-laced document that purported to come from Mongolia ’ s Ministry of Foreign Affairs .
The attack , which plays on the invariable vulnerabilities of humans , uses social engineering methods to deliver malware which starts the infection chain .
A successful hack enables the attackers to take screenshots , remove or edit files , and remotely execute processes on the host computers .
The Chinese hacker group “ Vicious Panda ” , @ @ @ @ @ @ @ time while the rest of the world was imposing lockdown restrictions to develop its arsenal of cyber weapons .
While everyone else was grappling with the challenges of lockdown , the Chinese were capitalising on it .
This is not a new idea .
Some of the best attacks in history have used ruse and “ sleight of hand ” tactics — and as the focus turned to dealing with a major pandemic , the Chinese launched a major cyber offensive .
And the rest of the world should be on high alert @ @ @ @ @ @ @ ?
In short , we should be taking cyber security much more seriously .
As the chancellor gears up to make seismic promises around investments in British infrastructure next month , there is a question on whether there will be anything meaningful to improve the nation ’ s cyber resilience .
While all eyes will be on rebuilding a nation in the throes of a recession , the government must be mindful to consider its flanks .
According to the Department for Digital , Culture , Media & Sport , the government body @ @ @ @ @ @ @ cyber security , almost one in every two businesses in the UK suffered a cyber attack in the last year .
Other reports suggest a more serious number and a concern that more companies were attacked but just don ’ t know it — yet .
The department ’ s recent announcement about new legislation to strengthen consumer internet of things security on the back of its Secure by Design Code of Practice is comforting and a step in the right direction .
But is it enough ?
As Honda joins British Airways @ @ @ @ @ @ @ organisations to be hacked , one may well question what more should be done to protect British infrastructure .
The UK ’ s financial services industry presents a valuable target , sitting as it does in the top five of industries most vulnerable to cyber attack .
In fact , breaches in the sector have more than tripled in the last six years , and with the average cost of a breach costing in excess of $ 18m , it is the hardest hit of all verticals .
The lack of trained cyber @ @ @ @ @ @ @ for the industry , and is an issue that the government must address .
Of course , no one is suggesting that all these attacks came from China .
And nor is this a new problem — cyber has been a key area of vulnerability for some time .
But the sudden increase in the threat level from Chinese hackers in particular should be a warning sign .
Investment must be directed at the nation ’ s core vulnerabilities and not just paper over the cracks .
Now is a more important time @ @ @ @ @ @ @ herd immunity that increases national resilience to cyber attack .
As China gears up on the cyber offensive , others may follow , and the UK may find itself way behind the power curve .
If Britain wants to maintain its position in the world order , the time for loitering in the margins is over .
Get City A.M. columnists ’ views delivered straight to your inbox in our daily Midday Update newsletter .

As China gears up on the cyber offensive, we need herd immunity to boost our national resilience
With a GDP of $13.5 trillion, dwarfing Britain’s by almost $12 trillion, China is the third most economically powerful country in the world after Russia and the US — for now at least.
And as the coronavirus outbreak disrupts the world in a way not seen since the Second World War, China is seeking to improve its position.
Over the past 10 years, the widespread pastime of hacking in China has gradually come to light.
Though the activities of several hundred thousand hackers are allegedly not endorsed by the Chinese government, coincidentally they share the same interests — the so-called “Chinese hacker army” presents a clear and present threat to every business outside China.
Now, the Covid-19 pandemic has presented a formidable cloak from behind which China is delivering state-sponsored cyber attacks. As “have-a-go fraudsters” use the coronavirus outbreak as an opportunity to dupe and coerce unsuspecting individuals to part with their cash for one scam cause or another, it seems that China’s state-sponsored hackers are going one step further, weaponising coronavirus data to deliver attack payloads.
The most recent state-sponsored attack targeted the Mongolian public sector with a malware-laced document that purported to come from Mongolia’s Ministry of Foreign Affairs. The attack, which plays on the invariable vulnerabilities of humans, uses social engineering methods to deliver malware which starts the infection chain. A successful hack enables the attackers to take screenshots, remove or edit files, and remotely execute processes on the host computers.
The Chinese hacker group “Vicious Panda”, attributed to this attack, used the time while the rest of the world was imposing lockdown restrictions to develop its arsenal of cyber weapons. While everyone else was grappling with the challenges of lockdown, the Chinese were capitalising on it.
This is not a new idea. Some of the best attacks in history have used ruse and “sleight of hand” tactics — and as the focus turned to dealing with a major pandemic, the Chinese launched a major cyber offensive. And the rest of the world should be on high alert.
So what should Britain be doing? In short, we should be taking cyber security much more seriously.
As the chancellor gears up to make seismic promises around investments in British infrastructure next month, there is a question on whether there will be anything meaningful to improve the nation’s cyber resilience. While all eyes will be on rebuilding a nation in the throes of a recession, the government must be mindful to consider its flanks.
According to the Department for Digital, Culture, Media & Sport, the government body charged with governing the nation’s cyber security, almost one in every two businesses in the UK suffered a cyber attack in the last year. Other reports suggest a more serious number and a concern that more companies were attacked but just don’t know it — yet.
The department’s recent announcement about new legislation to strengthen consumer internet of things security on the back of its Secure by Design Code of Practice is comforting and a step in the right direction. But is it enough?
As Honda joins British Airways and Easyjet on the list of major organisations to be hacked, one may well question what more should be done to protect British infrastructure. The UK’s financial services industry presents a valuable target, sitting as it does in the top five of industries most vulnerable to cyber attack.
In fact, breaches in the sector have more than tripled in the last six years, and with the average cost of a breach costing in excess of $18m, it is the hardest hit of all verticals. The lack of trained cyber professionals is a real area of concern for the industry, and is an issue that the government must address.
Of course, no one is suggesting that all these attacks came from China. And nor is this a new problem — cyber has been a key area of vulnerability for some time. But the sudden increase in the threat level from Chinese hackers in particular should be a warning sign. Investment must be directed at the nation’s core vulnerabilities and not just paper over the cracks.
Now is a more important time than ever before to build on a herd immunity that increases national resilience to cyber attack. As China gears up on the cyber offensive, others may follow, and the UK may find itself way behind the power curve.
If Britain wants to maintain its position in the world order, the time for loitering in the margins is over.
Get City A.M. columnists’ views delivered straight to your inbox in our daily Midday Update newsletter.
Main image credit: Getty


cityam--2020-06-19--Government extends anti-eviction measures for businesses

Commercial landlords will be unable to evict struggling companies until the end of September , after the government extended anti-eviction measures .
The move comes as part of the government ’ s support package for companies hit by the coronavirus pandemic .
Read more : Pret a Manger set for crucial rent talks with landlords The suspension of the forfeiture of evictions will come as a relief in particular to pubs , cafes and restaurants , after the hospitality sector called upon the government for action in this area .
It comes after restaurant industry bosses wrote to Prime Minister @ @ @ @ @ @ @ him to take drastic action to prop up the sector .
In the letter , written by Deliveroo boss Will Shu and signed by other chief executives , one key demand was to prevent evictions by commercial landlords .
Communities Secretary Robert Jenrick said : “ As our high streets come to life and our town centres open for business , it is crucial that both landlords and tenants have clarity and reassurance as they seek to keep their finances stable and bounce back.
” Kate Nicholls , chief executive of trade body @ @ @ @ @ @ @ the measure , but added : “ We remain of the view that further time and support is needed to facilitate a recovery for the hospitality sector , that is at the heart of our social lives and communities .
“ The extension of the moratorium on aggressive enforcement and forfeiture is a welcome measure to allow this process to take place.
” It comes after the Financial Conduct Authority ( FCA ) proposed allowing consumers to extend a payment freeze on their credit cards by a further three months to support borrowers @ @ @ @ @ @ @ more : Workers on furlough pass 9m as cost of job support measures nears £30bn Under the proposals from the markets watchdog , those who have not yet asked for a payment freeze on credit cards or for an interest-free overdraft of up to £500 could request one up until the end of October .
The extension to the payment holiday , which was introduced in April , would also enable customers to ask for a reduced interest rate on any overdraft borrowing above £500 .

Government extends anti-eviction measures for businesses
Many businesses have been unable to pay their rent
Commercial landlords will be unable to evict struggling companies until the end of September, after the government extended anti-eviction measures.
The move comes as part of the government’s support package for companies hit by the coronavirus pandemic.
The suspension of the forfeiture of evictions will come as a relief in particular to pubs, cafes and restaurants, after the hospitality sector called upon the government for action in this area.
It comes after restaurant industry bosses wrote to Prime Minister Boris Johnson earlier this week, urging him to take drastic action to prop up the sector.
In the letter, written by Deliveroo boss Will Shu and signed by other chief executives, one key demand was to prevent evictions by commercial landlords.
Communities Secretary Robert Jenrick said: “As our high streets come to life and our town centres open for business, it is crucial that both landlords and tenants have clarity and reassurance as they seek to keep their finances stable and bounce back.”
Kate Nicholls, chief executive of trade body UK Hospitality said she was supportive of the measure, but added: “We remain of the view that further time and support is needed to facilitate a recovery for the hospitality sector, that is at the heart of our social lives and communities.
“The extension of the moratorium on aggressive enforcement and forfeiture is a welcome measure to allow this process to take place.”
It comes after the Financial Conduct Authority (FCA) proposed allowing consumers to extend a payment freeze on their credit cards by a further three months to support borrowers struggling financially from the pandemic.
Under the proposals from the markets watchdog, those who have not yet asked for a payment freeze on credit cards or for an interest-free overdraft of up to £500 could request one up until the end of October.
The extension to the payment holiday, which was introduced in April, would also enable customers to ask for a reduced interest rate on any overdraft borrowing above £500.


cityam--2020-06-19--Wework makes second round of redundancies in the UK

Wework has triggered a second round of redundancies in the UK as part of its global restructuring efforts , according to reports .
The embattled company made over half of its community managers and community leads , around 82 people , redundant earlier this week , according to Wired .
There will reportedly be further cuts in the design , IT , sales , events , talent acquisition and New Member development teams .
Wired sources claim around 200 people in Wework ’ s London office could be affected by the restructure .
Wework declined to comment on the number @ @ @ @ @ @ @ efforts .
A spokesperson pointed to the company ’ s five-year plan of “ realigning certain functions and teams to reflect [ its ] priorities ” .
In April , chief executive Sandeep Mathrani and chairman Marcelo Claure announced a global restructuring .
Finance boss Kim Ross reiterated the need to keep costs low .
Last year , the firm made 19 per cent of its total workforce redundant as part of restructuring efforts .
An internal presentation , seen by Wired , shows Wework plans to centralise billings and sales functions and @ @ @ @ @ @ @ “ We are restructuring our community team to better align with our focus on member experience and enable our teams to more efficiently achieve our goals , ” the spokesperson said .
Read more : Wework aims to be free cash flow positive by 2022 “ We are grateful to those who are leaving Wework and appreciate the important contributions they have made to the company.
” Wework has made use of the government ’ s furlough scheme for UK employees who were unable to fulfil their roles .
It is understand that @ @ @ @ @ @ @ working through this period .

Wework makes second round of redundancies in the UK
Wework has triggered a second round of redundancies in the UK as part of its global restructuring efforts, according to reports.
The embattled company made over half of its community managers and community leads, around 82 people, redundant earlier this week, according to Wired.
There will reportedly be further cuts in the design, IT, sales, events, talent acquisition and New Member development teams. Wired sources claim around 200 people in Wework’s London office could be affected by the restructure.
Wework declined to comment on the number of UK employees affected in the restructuring efforts.
A spokesperson pointed to the company’s five-year plan of “realigning certain functions and teams to reflect [its] priorities”. In April, chief executive Sandeep Mathrani and chairman Marcelo Claure announced a global restructuring. Finance boss Kim Ross reiterated the need to keep costs low.
Last year, the firm made 19 per cent of its total workforce redundant as part of restructuring efforts.
An internal presentation, seen by Wired, shows Wework plans to centralise billings and sales functions and spread community managers across different buildings.
“We are restructuring our community team to better align with our focus on member experience and enable our teams to more efficiently achieve our goals,” the spokesperson said.
“We are grateful to those who are leaving Wework and appreciate the important contributions they have made to the company.”
Wework has made use of the government’s furlough scheme for UK employees who were unable to fulfil their roles. It is understand that Wework’s community managers have been working through this period.