cityam--2020-04-15--UK retail sales suffer worst fall in 25 years due to lockdown

UK retail sales suffered the worst decline on record last month due to the coronavirus lockdown , however food and online sales jumped as Brits stayed at home .
Total UK retail sales decreased 4.3 per cent in March , against a drop of 1.8 per cent in 2019 , which is the worst fall in 25 years , following the closure of non-essential stores .
Read more : Coronavirus : Half of major UK retailers ‘ could run out of cash ’ as sales dive In the first three weeks of the month UK retail sales were up 12 @ @ @ @ @ @ @ cent in the two weeks to 4 April after the government ordered all non-essential retailers to shut .
In the three months to March in-store UK retail sales of non-food items plunged 13 per cent on a total and like-for-like basis due to the lockdown .
However , food sales increased 4.9 per cent on a like-for-like basis , higher than the 12-month average growth of 2.4 per cent , due to a surge in stockpiling .
The British Retail Consortium said food retail sales spiked at the beginning of the month , @ @ @ @ @ @ @ sales increased by 18.8 per cent during the month , compared to 2.5 per cent last year , as consumers shopped online to adhere to social distancing rules .
The non-food online penetration rate increased from 29.3 per cent in March last year , to 43.5 per cent last month .
Some retailers , such as Next and Quiz , have resumed online operations after closing their warehouses last month over safety concerns in order to drive revenue despite the closure of physical stores .
“ The crisis continues ; the retail industry @ @ @ @ @ @ @ will be felt for a long while yet , ” said BRC chief executive Helen Dickinson .
“ Many physical non-food retailers have been forced to shut down entirely or to limit themselves to online only to protect customers and staff .
“ Consequently , hundreds of thousands of jobs at are risk within these companies and their supply chains .
“ At the same time , supermarkets brace themselves for lower sales , while still spending huge sums on protective measures , donating to food banks and hiring tens of thousands of @ @ @ @

UK retail sales suffer worst fall in 25 years due to lockdown
Oxford Street during the UK coronavirus lockdown
UK retail sales suffered the worst decline on record last month due to the coronavirus lockdown, however food and online sales jumped as Brits stayed at home.
Total UK retail sales decreased 4.3 per cent in March, against a drop of 1.8 per cent in 2019, which is the worst fall in 25 years, following the closure of non-essential stores.
In the first three weeks of the month UK retail sales were up 12 per cent, but declined 27 per cent in the two weeks to 4 April after the government ordered all non-essential retailers to shut.
In the three months to March in-store UK retail sales of non-food items plunged 13 per cent on a total and like-for-like basis due to the lockdown.
However, food sales increased 4.9 per cent on a like-for-like basis, higher than the 12-month average growth of 2.4 per cent, due to a surge in stockpiling.
The British Retail Consortium said food retail sales spiked at the beginning of the month, but dropped following lockdown.
Online non-food sales increased by 18.8 per cent during the month, compared to 2.5 per cent last year, as consumers shopped online to adhere to social distancing rules.
The non-food online penetration rate increased from 29.3 per cent in March last year, to 43.5 per cent last month.
Some retailers, such as Next and Quiz, have resumed online operations after closing their warehouses last month over safety concerns in order to drive revenue despite the closure of physical stores.
“The crisis continues; the retail industry is at the epicentre and the tremors will be felt for a long while yet,” said BRC chief executive Helen Dickinson.
“Many physical non-food retailers have been forced to shut down entirely or to limit themselves to online only to protect customers and staff.
“Consequently, hundreds of thousands of jobs at are risk within these companies and their supply chains.
“At the same time, supermarkets brace themselves for lower sales, while still spending huge sums on protective measures, donating to food banks and hiring tens of thousands of temporary staff.”
Supermarket and subscription sales soar
Spending on essential items rose 11.6 per cent in March, driven by a 21.3 per cent jump in supermarket sales.
Spending at off licences and greengrocers soared 30.5 per cent as more than half of shoppers chose to support local independent businesses.
In the week before the government announced the coronavirus lockdown, spending at specialist stores was up 80 per cent and up 49 per cent at supermarkets, as Brits anticipated the introduction of tougher restrictions.
Discount stores also saw increased demand, rising 25.2 per cent while pharmacy, health & beauty was up 0.5 per cent.
Restaurants and bars and pubs and clubs suffered a drop in spending of 35.5 per cent and 22.2 per cent respectively and non-essential spending dropped 12.9 per cent due to social distancing measures.
But spending on digital content and streaming subscriptions soared 17.4 per cent as consumers stayed home, according to Barclaycard data.
UK retail sales to plunge further in April
Analysts said that UK retail sales data for April is expected to be even worse, as it will represent a full month of lockdown.
Shore Capital Markets said: “Such data can reasonably be expected to follow-through on an even worse basis in April, given a somewhat lost Easter and the probability of a full period of non-essential store closures, data that will also skew the potential updates in 2021 and probably thereafter for a period.
“We await today confirmation as to the extension period of the lockdown in Great Britain, with Northern Ireland announcing a shutdown to the 9th May 2020 yesterday.”
Hope for online retailers?
Retailers with a strong online presence are best positioned to weather the coronavirus storm, analysts said. Some retailers, such as Next, Quiz, and Dunelm, have already reopened their online operations, after closing them in March over safety concerns.
“Behind the headline figures there will be a divergence, with those shops that have a good online presence and also sell some household essentials getting a boost from people being in their homes more and relying on deliveries, while those retailers who haven’t pivoted to online facing a real struggle,” Laura Suter, personal finance analyst at AJ Bell, said.
Kit Juckes, analyst at Societe Generale, said :As we hunker down to eat, stream films, plays and TV shows, while ordering various gadgets we didn’t know we needed, there are winners.”
Shore Capital Markets said a ” step change in online penetration” could be one of the key outcomes of the coronavirus crisis in the UK.


cityam--2020-04-15--Coronavirus: G20 economies freeze debts for world's poorest countries

The G20 group of the world ’ s biggest economies has agreed to suspend the debt repayment plans of the world ’ s poorest countries to free up funding so they can tackle the coronavirus pandemic .
Read more : UK ‘ probably ’ at coronavirus peak , says chief medical officer The decision , which will last from 1 May until the end of this year , will allow 77 of the world ’ s poorest nations to spend $ 20bn more on their healthcare systems , Saudi Arabia ’ s finance minister said .
The scheme , which @ @ @ @ @ @ @ countries today , is one of a number of efforts being made to bolster the world economy as it slips into recession .
German finance minister Olaf Scholz called the move “ an act of international solidarity with a historical dimension ” which would let countries turn funding to tackling the pandemic immediately .
Sign up to City A.M. ’ s Midday Update newsletter , delivered to your inbox every lunchtime International Monetary Fund director Kristalina Georgieva and World Bank Group President David Malpass hailed the deal in a joint statement : “ @ @ @ @ @ @ @ that will do much to safeguard the lives and livelihoods of millions of the most vulnerable people ” .
The G20 also called on private creditors to join in with the initiative on comparable terms .
An official from the French finance ministry revealed that such players had already agreed to refinance around $ 8bn in debt , on top of suspending $ 12bn in repayments .
Read more : Coronavirus : Governments face huge but necessary debt increases , says IMF The Institute of International Finance , which represents 450 banks , @ @ @ @ @ @ @ , said it would recommend that private sector creditors voluntarily grant debt relief to the poorest countries , if they requested it .

Coronavirus: G20 economies freeze debts for world’s poorest countries
The G20 group of the world’s biggest economies has agreed to suspend the debt repayment plans of the world’s poorest countries to free up funding so they can tackle the coronavirus pandemic.
The decision, which will last from 1 May until the end of this year, will allow 77 of the world’s poorest nations to spend $20bn more on their healthcare systems, Saudi Arabia’s finance minister said.
The scheme, which was agreed by finance ministers from G20 countries today, is one of a number of efforts being made to bolster the world economy as it slips into recession.
German finance minister Olaf Scholz called the move “an act of international solidarity with a historical dimension” which would let countries turn funding to tackling the pandemic immediately.
Sign up to City A.M.’s Midday Update newsletter, delivered to your inbox every lunchtime
International Monetary Fund director Kristalina Georgieva and World Bank Group President David Malpass hailed the deal in a joint statement:
“This is a powerful, fast-acting initiative that will do much to safeguard the lives and livelihoods of millions of the most vulnerable people”.
The G20 also called on private creditors to join in with the initiative on comparable terms.
An official from the French finance ministry revealed that such players had already agreed to refinance around $8bn in debt, on top of suspending $12bn in repayments.
The Institute of International Finance, which represents 450 banks, hedge funds and other global financial firms, said it would recommend that private sector creditors voluntarily grant debt relief to the poorest countries, if they requested it.


cityam--2020-04-15--Coronavirus: WHO chief regrets US pullout as global cases pass 2m

The head of the World Health Organization ( WHO ) has said that he regrets US president Donald Trump ’ s decision to pull funding from the body as the global number of cases of coronavirus passed 2m .
In the run-up to his decision to withdraw around $ 400m to the UN body – or 15 per cent of its budget – Trump had criticised the Geneva-based organisation ’ s handling of the virus .
Read more : Trump blames coronavirus spread on World Health Organisation and pulls funding The decision to withdraw met with condemnation from the world @ @ @ @ @ @ @ director-general Tedros Ghebreyesus said that the US “ has been a long-standing and generous friend of the WHO , and we hope it will continue to be so .
“ WHO is reviewing the impact on our work of any withdrawal of U.S. funding and we will work with partners to fill any gaps and ensure our work continues uninterrupted ” .
Trump ’ s criticisms centred around the WHO ’ s failure to investigate credible reports of the disease from Wuhan that conflicted with the Chinese government ’ s accounts .
“ @ @ @ @ @ @ @ and must be held accountable , ” he told a White House news conference last night .
Sign up to City A.M. ’ s Midday Update newsletter , delivered to your inbox every lunchtime The president ’ s administration is under fire for its own response to the crisis , with the death toll in the US now over 25,000 .
The withdrawal came as today the total number of confirmed cases hit 2,001,548 , with over 131,000 deaths .
UN secretary-general Antonio Guterres called for unity and “ for the international community @ @ @ @ @ @ @ this virus and its shattering consequences.
” Although the death toll continues to climb , signs are beginning to emerge that the worst might be over in some countries .
German chancellor Angela Merkel today said that some shops would reopen next week and that schools would return on 4 May .
Social distancing rules will still apply , she added .
The WHO said the world stood at a “ pivotal juncture ” and countries that eased restrictions should wait at least two weeks to evaluate the impact before easing further .

Coronavirus: WHO chief regrets US pullout as global cases pass 2m
The head of the World Health Organization (WHO) has said that he regrets US president Donald Trump’s decision to pull funding from the body as the global number of cases of coronavirus passed 2m.
In the run-up to his decision to withdraw around $400m to the UN body – or 15 per cent of its budget – Trump had criticised the Geneva-based organisation’s handling of the virus.
The decision to withdraw met with condemnation from the world’s leaders.
In response, director-general Tedros Ghebreyesus said that the US “has been a long-standing and generous friend of the WHO, and we hope it will continue to be so.
“WHO is reviewing the impact on our work of any withdrawal of U.S. funding and we will work with partners to fill any gaps and ensure our work continues uninterrupted”.
Trump’s criticisms centred around the WHO’s failure to investigate credible reports of the disease from Wuhan that conflicted with the Chinese government’s accounts.
“The WHO failed in this basic duty and must be held accountable,” he told a White House news conference last night.
Sign up to City A.M.’s Midday Update newsletter, delivered to your inbox every lunchtime
The president’s administration is under fire for its own response to the crisis, with the death toll in the US now over 25,000.
The withdrawal came as today the total number of confirmed cases hit 2,001,548, with over 131,000 deaths.
UN secretary-general Antonio Guterres called for unity and “for the international community to work together in solidarity to stop this virus and its shattering consequences.”
Although the death toll continues to climb, signs are beginning to emerge that the worst might be over in some countries.
German chancellor Angela Merkel today said that some shops would reopen next week and that schools would return on 4 May.
Social distancing rules will still apply, she added.
The WHO said the world stood at a “pivotal juncture” and countries that eased restrictions should wait at least two weeks to evaluate the impact before easing further.


cityam--2020-04-15--Bank lobby chief says changes to coronavirus loan scheme may be necessary

The head of Britain ’ s banking lobby group has said the government ’ s £330bn coronavirus business loan scheme may need to change in order to increase lending to smaller businesses .
UK Finance chief executive Stephen Jones told the Treasury Select Committee today that the government may need to guarantee 100 per cent of loans for small businesses , instead of 80 per cent as they are now offering .
Read more : Lending through UK coronavirus scheme hits £1.1bn after three weeks However , he also asked committee members for “ a few more days of patience @ @ @ @ @ @ @ banks and the government over their handling of the coronavirus business interruption loan scheme ( CBILS ) .
UK Finance said today that the country ’ s banks had approved 6,020 business loans worth £1.1bn through CBILS , with just one-in-five applications gaining approval so far .
In comparison , Swiss banks managed to hand out £12.4bn to more than 75,000 businesses in the first week of its coronavirus loan scheme alone .
Jones said the Swiss banks were able to hand out loans at a much faster pace , because their government @ @ @ @ @ @ @ loan .
This means the government will step in to pay back an entire loan if businesses are unable to do so .
Jones said this could be an option in the UK for smaller businesses , but that if the government begins to guarantee 100 per cent of loans for all businesses then it may lead to reckless lending .
City A.M. understands that there are no imminent plans at the Treasury to alter the loan scheme .
“ It is possible that we need a combination of the two , ” @ @ @ @ @ @ @ small end of the SME market perhaps loans below £25,000 , where there is huge volume and probably the biggest backlog , that making the scheme simpler for that kind of borrower might be something to look at .
“ But I would urge a few more days of patience as we see how the data pans out , how much more we ’ re able to deploy at pace before a re-engineering of the scheme is done.
” Calls for the government to underwrite 100 per cent of all loans under CBILS @ @ @ @ @ @ @ .
Read more : Businesses still struggling to access coronavirus loan scheme , says BCC Shadow business secretary Ed Miliband said today that chancellor Rishi Sunak “ must move to a 100 % guarantee of loans for smaller businesses ” .
Sunak said at yesterday ’ s press briefing that he was considering all options when it came to the government ’ s economic response to the coronavirus crisis .

Bank lobby chief says changes to coronavirus loan scheme may be necessary
UK Finance said today that the country’s banks had approved 6,020 business loans worth £1.1bn through CBILS with just one-in-five applications gaining approval.
The head of Britain’s banking lobby group has said the government’s coronavirus business loan scheme may need to change in order to increase lending to smaller businesses.
UK Finance chief executive Stephen Jones told the Treasury Select Committee today that the government may need to guarantee 100 per cent of loans for small businesses, instead of 80 per cent as they are now offering.
However, he also asked committee members for “a few more days of patience” as criticism begins to mount on banks and the government over their handling of the coronavirus business interruption loan scheme (CBILS).
UK Finance said today that the country’s banks had approved 6,020 business loans worth £1.1bn through CBILS, with just one-in-five applications gaining approval so far.
In comparison, Swiss banks managed to hand out £12.4bn to more than 75,000 businesses in the first week of its coronavirus loan scheme alone.
Jones said the Swiss banks were able to hand out loans at a much faster pace, because their government is guaranteeing 100 per cent of each loan.
This means the government will step in to pay back an entire loan if businesses are unable to do so.
Jones said this could be an option in the UK for smaller businesses, but that if the government begins to guarantee 100 per cent of loans for all businesses then it may lead to reckless lending.
City A.M. understands that there are no imminent plans at the Treasury to alter the loan scheme.
“It is possible that we need a combination of the two,” Jones said.
“That on the small end of the SME market perhaps loans below £25,000, where there is huge volume and probably the biggest backlog, that making the scheme simpler for that kind of borrower might be something to look at.
“But I would urge a few more days of patience as we see how the data pans out, how much more we’re able to deploy at pace before a re-engineering of the scheme is done.”
Calls for the government to underwrite 100 per cent of all loans under CBILS have grown louder in the past week.
Shadow business secretary Ed Miliband said today that chancellor Rishi Sunak “must move to a 100% guarantee of loans for smaller businesses”.
Sunak said at yesterday’s press briefing that he was considering all options when it came to the government’s economic response to the coronavirus crisis.


cityam--2020-04-15--The City View from City A.M., with Jimmy McLoughlin

Join Christian May , City A.M. ’ s Editor in Chief , for The City View – the daily podcast from City A.M. On each edition of The City View podcast , Christian will discuss the most important business and finance stories of the day before introducing a guest .
In this episode Christian looks at the government ’ s packages of support for busines , potential help for owner-directors and the latest security concerns with video-conferencing platform Zoom .
He ’ s also joined by Jimmy McLoughlin , a former Special Adviser to Prime Minister Theresa May .
Jimmy @ @ @ @ @ @ @ in Number Ten on business policy .
Jimmy provides an insight into what life is like at the heart of government during a crisis as he reflects on the ways the Coronavirus pandemic will change business , the economy and politics .
ETX Capital is one of the UK ’ s leading spread betting and CFD trading providers , offering services to retail , institutional , professional and high net worth customers via an award-winning trading platform .
With over 50 years of experience in the financial markets , customers and service are @ @ @ @ @ @ @ the company prides itself in offering a tailor-made trading experience to every customer .
The multi-device TraderPro platform delivers a fully customisable , award-winning trading technology with customisable charts , instant execution and over 5,000 markets to trade .
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage .
75.1 % of retail investor accounts lose money when spread betting or trading CFDs with ETX .
You should consider whether you understand how spread bets or CFDs work and whether you can @ @ @ @ @ @ @ losing your money .
Authorised and regulated by the Financial Conduct Authority with Financial Services register number 124721 .
ETX Capital provides an execution-only service and therefore any market analysis , opinion , commentary or other information provided during this webinar is for educational purposes only and is not intended to be a personal recommendation or construed as advice .
ETX Capital and the presenter are not financial or investment advisors and do not recommend any instrument of any kind .
Any instruments that are mentioned throughout are cited only for illustrative and @ @ @

The City View from City A.M., with Jimmy McLoughlin
Join Christian May, City A.M.’s Editor in Chief, for The City View – the daily podcast from City A.M.
Subscribe to The City View Podcast: Apple / Google / Spotify / RSS
On each edition of The City View podcast, Christian will discuss the most important business and finance stories of the day before introducing a guest.
In this episode Christian looks at the government’s packages of support for busines, potential help for owner-directors and the latest security concerns with video-conferencing platform Zoom.
He’s also joined by Jimmy McLoughlin, a former Special Adviser to Prime Minister Theresa May. Jimmy is an experienced political adviser and worked in Number Ten on business policy. Jimmy provides an insight into what life is like at the heart of government during a crisis as he reflects on the ways the Coronavirus pandemic will change business, the economy and politics.
In association with ETX Capital
ETX Capital is one of the UK’s leading spread betting and CFD trading providers, offering services to retail, institutional, professional and high net worth customers via an award-winning trading platform. With over 50 years of experience in the financial markets, customers and service are always put first at ETX, and the company prides itself in offering a tailor-made trading experience to every customer. The multi-device TraderPro platform delivers a fully customisable, award-winning trading technology with customisable charts, instant execution and over 5,000 markets to trade.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money. Authorised and regulated by the Financial Conduct Authority with Financial Services register number 124721. ETX Capital provides an execution-only service and therefore any market analysis, opinion, commentary or other information provided during this webinar is for educational purposes only and is not intended to be a personal recommendation or construed as advice. ETX Capital and the presenter are not financial or investment advisors and do not recommend any instrument of any kind. Any instruments that are mentioned throughout are cited only for illustrative and educational purposes.


cityam--2020-04-15--Apple unveils second generation version of budget iPhone SE

Apple today unveiled the second generation model of its budget iPhone SE as the tech giant looks to tap into demand for more affordable smartphones .
The new iPhone SE resembles the design of the iPhone 7 launched in 2016 , with a smaller 4.7-inch retina display and the traditional Touch ID fingerprint sensor , rather than facial recognition .
Read more : Apple to make 1m coronavirus face shields per week It is priced at $ 399 in the US and £419 in the UK , making it Apple ’ s least expensive phone .
The handset , which @ @ @ @ @ @ @ , is a follow-up to the first iPhone SE , which was released in 2016 but discontinued in 2018 .
The new phone boasts the same chip used in the iPhone 11 and 11 Pro , but only has a single rear camera .
“ The first iPhone SE was a hit with many customers who loved its unique combination of small size , high-end performance and affordable price , ” said Phil Schiller , Apple ’ s senior vice president of worldwide marketing .
“ The new second-generation iPhone SE builds on @ @ @ @ @ @ @ in every way — including our best-ever single-camera system for great photos and videos — while still being very affordable.
” Apple ’ s recent smartphone models have broken the £1,000 mark , and the new model will likely serve as a new mid-market challenger to rival Android brands .
But the cheaper handset may also appeal to consumers less willing to fork out for expensive tech in the wake of the coronavirus crisis .
“ The new iPhone SE has the potential to drive the next wave of adoption of Apple ’ @ @ @ @ @ @ @ Ben Wood , chief of research at CCS Insight .
“ Its aggressive pricing will challenge not only sales of new Android smartphones but is also likely to affect companies who refurbish and resell second-hand iPhones.
” Ru Bhikha , mobiles expert at Uswitch.com , described the new iPhone SE as “ Frankenstein ’ s monster in a ball dress — a glamorous package with the body of an iPhone 8 and the brain of a more modern device ” .
Read more : Apple could delay iPhone 12 launch ‘ by months @ @ @ @ @ @ @ wedded to the iOS platform but not prepared to break the bank will likely flock to the new SE , if the popularity of its predecessor is anything to go by.
” The iPhone SE is available for pre-order from Friday , with a year ’ s free subscription to Apple TV Plus included with the purchase .

Apple unveils second generation version of budget iPhone SE
Apple today unveiled the second generation model of its budget iPhone SE as the tech giant looks to tap into demand for more affordable smartphones.
The new iPhone SE resembles the design of the iPhone 7 launched in 2016, with a smaller 4.7-inch retina display and the traditional Touch ID fingerprint sensor, rather than facial recognition.
It is priced at $399 in the US and £419 in the UK, making it Apple’s least expensive phone.
The handset, which comes in black, white and red, is a follow-up to the first iPhone SE, which was released in 2016 but discontinued in 2018.
The new phone boasts the same chip used in the iPhone 11 and 11 Pro, but only has a single rear camera.
“The first iPhone SE was a hit with many customers who loved its unique combination of small size, high-end performance and affordable price,” said Phil Schiller, Apple’s senior vice president of worldwide marketing.
“The new second-generation iPhone SE builds on that great idea and improves on it in every way — including our best-ever single-camera system for great photos and videos — while still being very affordable.”
Apple’s recent smartphone models have broken the £1,000 mark, and the new model will likely serve as a new mid-market challenger to rival Android brands.
But the cheaper handset may also appeal to consumers less willing to fork out for expensive tech in the wake of the coronavirus crisis.
“The new iPhone SE has the potential to drive the next wave of adoption of Apple’s popular smartphone brand,” said Ben Wood, chief of research at CCS Insight.
“Its aggressive pricing will challenge not only sales of new Android smartphones but is also likely to affect companies who refurbish and resell second-hand iPhones.”
Ru Bhikha, mobiles expert at Uswitch.com, described the new iPhone SE as “Frankenstein’s monster in a ball dress — a glamorous package with the body of an iPhone 8 and the brain of a more modern device”.
“Smartphone users wedded to the iOS platform but not prepared to break the bank will likely flock to the new SE, if the popularity of its predecessor is anything to go by.”
The iPhone SE is available for pre-order from Friday, with a year’s free subscription to Apple TV Plus included with the purchase.


cityam--2020-04-15--Oil prices continue slump as prospects for recovery look slim

Oil prices continued to fall today amid further signs that Opec ’ s record production cuts would not be sufficient to stabilize the oil market amid a coronavirus-driven recession .
Benchmark Brent crude dropped over six per cent for the second consecutive day , falling to $ 27.50 , while West Texas Intermediate fell below $ 20 to stand at $ 19.51 .
The falls came as the International Energy Agency ( IEA ) forecast that global demand would fall by 9.3m barrels per day in 2020 .
The plunge will be led by declines in April , which will @ @ @ @ @ @ @ day – nearly a third of global output – which will take the market back to levels last seen in 1995 .
In May , the demand shortfall will be 26m barrels per day , with a slight recovery expected to have set in by June , where it will have narrowed to 15m barrels .
The scale of the plunge in demand dwarfs the 9.7m cuts promised by Opec and allies including Russia earlier this week , even if other producers such as the US and Canada also make large-scale cuts .
@ @ @ @ @ @ @ to be down 2.7m barrels per day .
The IEA said : “ There is no feasible agreement that could cut supply by enough to offset such near-term demand losses .
Sign up to City A.M. ’ s Midday Update newsletter , delivered to your inbox every lunchtime “ However , the past week ’ s achievements are a solid start and have the potential to start to reverse the build-up in stocks as we move into the second half of the year ” .
“ Hard to imagine ” how prices could @ @ @ @ @ @ @ the Economist Intelligence Unit ( EIU ) , said that she did not expect oil prices to rise much above their current levels for the next couple of months : “ The production boom by Saudi Arabia , several other OPEC countries and Russia in March will be enough to fill available storage capacity and reassure investors that the market will remain amply supplied for the foreseeable future .
“ However , the deal should allow prices to pick up slightly in the second half of 2020 , as the global economy enters @ @ @ @ @ @ @ the longer term , the EIU has forecast a price of $ 36 per barrel for Brent crude in 2021 , leaving this January ’ s $ 70 prices a distant memory .
For Birch , producers ’ hands are tied , with little left to be done in the face of record declines in demand : Read more : Oil price rises after Opec+ seals deal on record production cut “ It ’ s hard to imagine any other measure or event that could lift oil prices .
At the moment , @ @ @ @ @ @ @ sanctions on Iran , a conflict in Libya that has effectively stopped oil production , an entrenched political and economic crisis in Venezuela , and the list goes on .
“ The global economy will have to begin a clear recovery , drawing on available oil stocks , before prices see any sustainable growth ” .

Oil prices continue slump as prospects for recovery look slim
Oil prices continued to fall today amid further signs that Opec’s record production cuts would not be sufficient to stabilize the oil market amid a coronavirus-driven recession.
Benchmark Brent crude dropped over six per cent for the second consecutive day, falling to $27.50, while West Texas Intermediate fell below $20 to stand at $19.51.
The falls came as the International Energy Agency (IEA) forecast that global demand would fall by 9.3m barrels per day in 2020.
The plunge will be led by declines in April, which will see demand drop by 29m barrels a day – nearly a third of global output – which will take the market back to levels last seen in 1995.
In May, the demand shortfall will be 26m barrels per day, with a slight recovery expected to have set in by June, where it will have narrowed to 15m barrels.
The scale of the plunge in demand dwarfs the 9.7m cuts promised by Opec and allies including Russia earlier this week, even if other producers such as the US and Canada also make large-scale cuts.
Even by December, demand is expected to be down 2.7m barrels per day.
The IEA said: “There is no feasible agreement that could cut supply by enough to offset such near-term demand losses.
Sign up to City A.M.’s Midday Update newsletter, delivered to your inbox every lunchtime
“However, the past week’s achievements are a solid start and have the potential to start to reverse the build-up in stocks as we move into the second half of the year”.
“Hard to imagine” how prices could rise
Cailin Birch, global economist at the Economist Intelligence Unit (EIU), said that she did not expect oil prices to rise much above their current levels for the next couple of months:
“The production boom by Saudi Arabia, several other OPEC countries and Russia in March will be enough to fill available storage capacity and reassure investors that the market will remain amply supplied for the foreseeable future.
“However, the deal should allow prices to pick up slightly in the second half of 2020, as the global economy enters into a fragile recovery”.
In the longer term, the EIU has forecast a price of $36 per barrel for Brent crude in 2021, leaving this January’s $70 prices a distant memory.
For Birch, producers’ hands are tied, with little left to be done in the face of record declines in demand:
“It’s hard to imagine any other measure or event that could lift oil prices. At the moment, the oil market is already facing severe sanctions on Iran, a conflict in Libya that has effectively stopped oil production, an entrenched political and economic crisis in Venezuela, and the list goes on.
“The global economy will have to begin a clear recovery, drawing on available oil stocks, before prices see any sustainable growth”.


cityam--2020-04-15--UK 'probably' at coronavirus peak, says chief medical officer

The UK is likely now in the peak of its coronavirus outbreak , according to the government ’ s most senior health adviser .
Chief Medical Officer Chris Whitty said at today ’ s daily press briefing that the UK was “ probably reaching the peak overall ” of the country ’ s outbreak and “ that ’ s what the flattening ” of the increase in new cases shows .
Read more : Coronavirus : Governments face huge but necessary debt increases , says IMF Despite this , Whitty and health secretary Matt Hancock were both quick to add @ @ @ @ @ @ @ about how the government would ease social distancing restrictions .
“ We are not yet at the point where we can confidently and safely say we are past the peak and that we can think much about the next phases , ” Whitty said .
When questioned as to why the UK hasn ’ t outlined a lockdown exit plan like other European countries , Hancock said : “ Different countries are in different stages in this epidemic , and one of the things I think we ’ ve learned during this crisis @ @ @ @ @ @ @ the public is incredibly important.
” The amount of new people testing positive for Covid-19 plateaued over the past week , however Whitty warned that does not mean deaths will do the same .
Another 761 people with coronavirus died in UK hospitals today , bringing the total to 12,868 .
Today ’ s death toll was less than yesterday , however Whitty warned people to not expect numbers to start dropping yet as there is a lag between the number of new cases and the death toll .
“ We do all @ @ @ @ @ @ @ sadly we do think high numbers of deaths will continue for a short while , ” he said .
“ My expectation would be that the number of deaths may well go up , because after every weekend we see a dip over the weekend , and for two days afterwards , then an increase as we catch up with the numbers .
After a long four day weekend there may be a bounce up tomorrow.
” Read more : Coronavirus furlough scheme extended to allow for more wage subsidies The government ’ @ @ @ @ @ @ @ to decide whether to extend the lockdown .
Foreign secretary Dominic Raab said on Monday that the government does not expect there to be any changes to its social distancing measures after the meeting .

UK ‘probably’ at coronavirus peak, says chief medical officer
Chief Medical Officer Chris Whitty said at today’s daily press briefing that the UK was “probably reaching the peak overall”.
The UK is likely now in the peak of its coronavirus outbreak, according to the government’s most senior health adviser.
Chief Medical Officer Chris Whitty said at today’s daily press briefing that the UK was “probably reaching the peak overall” of the country’s outbreak and “that’s what the flattening” of the increase in new cases shows.
Despite this, Whitty and health secretary Matt Hancock were both quick to add that it was too early to think about how the government would ease social distancing restrictions.
“We are not yet at the point where we can confidently and safely say we are past the peak and that we can think much about the next phases,” Whitty said.
When questioned as to why the UK hasn’t outlined a lockdown exit plan like other European countries, Hancock said: “Different countries are in different stages in this epidemic, and one of the things I think we’ve learned during this crisis is the clarity of the guidance to the public is incredibly important.”
The amount of new people testing positive for Covid-19 plateaued over the past week, however Whitty warned that does not mean deaths will do the same.
Another 761 people with coronavirus died in UK hospitals today, bringing the total to 12,868.
Today’s death toll was less than yesterday, however Whitty warned people to not expect numbers to start dropping yet as there is a lag between the number of new cases and the death toll.
“We do all think this has flattened out, but sadly we do think high numbers of deaths will continue for a short while,” he said.
“My expectation would be that the number of deaths may well go up, because after every weekend we see a dip over the weekend, and for two days afterwards, then an increase as we catch up with the numbers. After a long four day weekend there may be a bounce up tomorrow.”
The government’s top scientific council will meet tomorrow to decide whether to extend the lockdown.
Foreign secretary Dominic Raab said on Monday that the government does not expect there to be any changes to its social distancing measures after the meeting.


cityam--2020-04-15--Guardian, Financial Times and Telegraph furlough staff as coronavirus hits newspaper revenue

The Guardian , Financial Times ( FT ) and Telegraph today said they will furlough dozens of employees as the coronavirus outbreak decimates advertising revenue for news organisations .
Guardian Media Group ( GMG ) , which runs the Guardian and Observer , said it expects revenue for the first six months of the financial year to fall by £20m due to a collapse in advertising .
Read more : Jewish Chronicle and Jewish News collapse into liquidation As a result , the company has furloughed roughly 100 non-editorial staff and offered a voluntary reduced hours scheme for other employees @ @ @ @ @ @ @ pay for board members and management — including editor in chief Katherine Viner — and defer its planned pay rise for all UK staff .
It comes despite an increased demand for the newspaper ’ s coverage , with the company reporting record levels of digital subscriptions in the last six weeks .
A Guardian spokesperson said : “ While we are well-placed to weather difficulties thanks to the strategy implemented over the last four years , it is clear that we will need to adapt as we always have , in order @ @ @ @ @ @ @ challenges and opportunities ahead.
” The FT and the Telegraph today also announced a string of measures to help mitigate the impact of the pandemic .
The Telegraph has furloughed roughly 90 employees over the last two weeks , while non-editorial staff will move to a four-day week from 1 May and take a 20 per cent pay cut .
In an email to staff , seen by City A.M. , Telegraph Media Group chief executive Nick Hugh said the company had enjoyed its biggest month for subscription growth in March , with @ @ @ @ @ @ @ , Hugh said the company was still battling a cashflow problem , as monthly subscription payments were lagging behind the immediate impact of lost advertising revenue .
“ These are measures that no business wants to implement , but given the scale of the challenges that we are facing we must protect both our business and our employees in a way that other media organisations are also doing , ” he wrote .
Meanwhile , the FT said it will cut salaries for top managers and editors by 10 per cent for the @ @ @ @ @ @ @ for board members will be reduced by 20 per cent .
The newspaper will also put roughly 20 non-editorial employees on paid leave and temporarily halve its pension contributions .
In a note to staff chief executive John Ridding said he would take a 30 per cent pay cut .
National and regional news organisations across the UK have been forced to roll out drastic measures as they battle the combined impact of declining advertising revenue and falling circulation caused by the lockdown .
Read more : UK newspapers to lose £50m as @ @ @ @ @ @ @ note to clients last week Enders Analysis forecast publisher advertising decline of 30 per cent this year , with roughly £330m disappearing from the sector .
It also warned that the hit to revenue could lead to as many as 5,000 journalists losing their jobs .

Guardian, Financial Times and Telegraph furlough staff as coronavirus hits newspaper revenue
The Guardian, Financial Times (FT) and Telegraph today said they will furlough dozens of employees as the coronavirus outbreak decimates advertising revenue for news organisations.
Guardian Media Group (GMG), which runs the Guardian and Observer, said it expects revenue for the first six months of the financial year to fall by £20m due to a collapse in advertising.
As a result, the company has furloughed roughly 100 non-editorial staff and offered a voluntary reduced hours scheme for other employees.
GMG said it will also cut pay for board members and management — including editor in chief Katherine Viner — and defer its planned pay rise for all UK staff.
It comes despite an increased demand for the newspaper’s coverage, with the company reporting record levels of digital subscriptions in the last six weeks.
A Guardian spokesperson said: “While we are well-placed to weather difficulties thanks to the strategy implemented over the last four years, it is clear that we will need to adapt as we always have, in order to serve Guardian readers and meet the challenges and opportunities ahead.”
The FT and the Telegraph today also announced a string of measures to help mitigate the impact of the pandemic.
The Telegraph has furloughed roughly 90 employees over the last two weeks, while non-editorial staff will move to a four-day week from 1 May and take a 20 per cent pay cut.
In an email to staff, seen by City A.M., Telegraph Media Group chief executive Nick Hugh said the company had enjoyed its biggest month for subscription growth in March, with total subscriptions now at 442,386.
However, Hugh said the company was still battling a cashflow problem, as monthly subscription payments were lagging behind the immediate impact of lost advertising revenue.
“These are measures that no business wants to implement, but given the scale of the challenges that we are facing we must protect both our business and our employees in a way that other media organisations are also doing,” he wrote.
Meanwhile, the FT said it will cut salaries for top managers and editors by 10 per cent for the rest of the year, while pay for board members will be reduced by 20 per cent.
The newspaper will also put roughly 20 non-editorial employees on paid leave and temporarily halve its pension contributions.
In a note to staff chief executive John Ridding said he would take a 30 per cent pay cut.
National and regional news organisations across the UK have been forced to roll out drastic measures as they battle the combined impact of declining advertising revenue and falling circulation caused by the lockdown.
In a note to clients last week Enders Analysis forecast publisher advertising decline of 30 per cent this year, with roughly £330m disappearing from the sector.
It also warned that the hit to revenue could lead to as many as 5,000 journalists losing their jobs.


cityam--2020-04-15--Business minister working on scheme to protect businesses which pay using dividends

Business minister Paul Scully is trying to find ways of protecting business owners who pay themselves through dividends during the coronavirus crisis .
Such businesses are currently not covered by the Treasury aid programmes .
Read more : RBS pays out 70 per cent of government coronavirus loans The Financial Times reported that Scully , whose portfolio covers the UK ’ s small businesses , is trying to convince chancellor Rishi Sunak , who has opposed providing help to such companies .
The decision has come under scrutiny from many firms who pay through dividends , with around 2m such @ @ @ @ @ @ @ to the Institute for Fiscal Studies .
Scully , who used to pay himself in dividends during his business career , said that he wants to get money to those falling between the cracks of government schemes as soon as possible .
Sunak has said that those who pay salaries using dividends pay a lower amount of tax and therefore should not be eligible for the government ’ s support .
The tax rate on dividends is 7.5 per cent , rather than the usual 20 per cent level of income tax .
@ @ @ @ @ @ @ use the government ’ s job retention “ furlough ” scheme , but as many pay only small salaries and top the rest up through dividends it could have a limited impact .
Sign up to City A.M. ’ s Midday Update newsletter , delivered to your inbox every lunchtime Alasdair Hutchinson , policy development manager at the Association of Independent Professionals and the Self-Employed , said that one solution would be to include dividend income in the scheme : “ It is very welcome that Mr Scully is looking at ways to @ @ @ @ @ @ @ One way to do this would be to include dividend income in the government ’ s Job Retention Scheme , which company directors are eligible for but only for the small portion of their earnings that comes from PAYE .
“ This would enable many limited company contractors who pay themselves through dividends to make full use of the scheme .
Business groups welcomed the move .
Edwin Morgan , policy director at the Institute of Directors , said : “ We ’ ve been highlighting the issue for weeks , so we @ @ @ @ @ @ @ is sympathetic to the need for support for company directors that have been left out in the cold .
The government has made much of its backing for entrepreneurs , but too many have been missing out on the existing measures .
“ It ’ s common for directors of the smallest firms to use dividends for income , it ’ s more flexible and means they can keep money inside the business to keep it going if needs be .
“ Government has pointed to difficulties in accounting for this income , @ @ @ @ @ @ @ .
Even if the system has to have more hoops , that shouldn ’ t get in the way of it being set up.
” Read more : Businesses still struggling to access coronavirus loan scheme , says BCC Neil Carberry , chief executive of the Recruitment and Employment Confederation ( REC ) , said : “ Small businesses will drive our recovery and it ’ s important to protect owner-operators for that to happen .
“ We welcome Paul Scully ’ s response to the issues that have been raised by the @ @ @ @ @

Business minister searching for ways to protect businesses which pay using dividends
Business minister Paul Scully is trying to find ways of protecting business owners who pay themselves through dividends during the coronavirus crisis.
Such businesses are currently not covered by the Treasury aid programmes.
The Financial Times reported that Scully, whose portfolio covers the UK’s small businesses, is looking for solutions to cover such firms.
Chancellor Rishi Sunak has opposed providing help to such companies.
Sunak has said that those who pay salaries using dividends pay a lower amount of tax and therefore should not be eligible for the government’s support.
The tax rate on dividends is 7.5 per cent, rather than the usual 20 per cent level of income tax.
The decision has come under scrutiny from many firms who pay through dividends, with around 2m such owner-managers currently excluded from government help according to the Institute for Fiscal Studies.
Scully, who used to pay himself in dividends during his business career, said that he wants to get money to those falling between the cracks of government schemes as soon as possible.
Such business owners are technically eligible to use the government’s job retention “furlough” scheme, but as many pay only small salaries and top the rest up through dividends it could have a limited impact.
Sign up to City A.M.’s Midday Update newsletter, delivered to your inbox every lunchtime
Alasdair Hutchinson, policy development manager at the Association of Independent Professionals and the Self-Employed, said that one solution would be to include dividend income in the scheme:
“It is very welcome that Mr Scully is looking at ways to plug the gap for company directors. One way to do this would be to include dividend income in the government’s Job Retention Scheme, which company directors are eligible for but only for the small portion of their earnings that comes from PAYE.
“This would enable many limited company contractors who pay themselves through dividends to make full use of the scheme.
Business groups welcomed the move. Edwin Morgan, policy director at the Institute of Directors, said:
“We’ve been highlighting the issue for weeks, so we’re pleased that the business minister is sympathetic to the need for support for company directors that have been left out in the cold. The government has made much of its backing for entrepreneurs, but too many have been missing out on the existing measures.
“It’s common for directors of the smallest firms to use dividends for income, it’s more flexible and means they can keep money inside the business to keep it going if needs be.
“Government has pointed to difficulties in accounting for this income, but there are ways of providing evidence. Even if the system has to have more hoops, that shouldn’t get in the way of it being set up.”
Neil Carberry, chief executive of the Recruitment and Employment Confederation (REC), said: “Small businesses will drive our recovery and it’s important to protect owner-operators for that to happen.
“We welcome Paul Scully’s response to the issues that have been raised by the REC and others.”


cityam--2020-04-16--Tiktok bans direct messaging for under-16s amid safety concerns

Tiktok will ban users under the age of 16 from sending direct messages as the platform looks to improve safety and stave off concerns about harmful material .
The video-sharing platform , which is popular with teenagers , today said that from 30 April new and existing users who do not meet the age requirements will no longer have access to direct messages .
Tiktok states its platform is only for people aged over 13 , while users under 18 must have the consent of a parent or legal guardian .
However , the company has no way of verifying @ @ @ @ @ @ @ rules by inputting a different date of birth .
Nevertheless , Cormac Keenan , Tiktok ’ s head of trust and safety for EMEA , said the move was “ about going one step further to put in place stronger proactive protections to keep younger members of our community safe ” .
“ Direct messaging is an amazing tool that enables people to make new friends and connections no matter where they are in the world , but despite its potential for good , we understand the potential for misuse , ” he @ @ @ @ @ @ @ firm ’ s latest effort to improve the safety of its users , including banning virtual gifting for under-18s .
The company , which is owned by Chinese tech giant Bytedance , has also rolled out a family mode to allow parents to control their child ’ s use of the app .
Read more : Tiktok owner Bytedance to hire 10,000 new staff amid lockdown boom It comes as Tiktok faces a surge in demand from its 1.5bn monthly active users as lockdown measures prompted by the coronavirus crisis force people to @ @ @ @ @ @ @ Bytedance is looking to hire 10,000 new employees as part of its plan to hit 100,000 staff members by the end of the year .

Tiktok bans direct messaging for under-16s amid safety concerns
Tiktok will ban users under the age of 16 from sending direct messages as the platform looks to improve safety and stave off concerns about harmful material.
The video-sharing platform, which is popular with teenagers, today said that from 30 April new and existing users who do not meet the age requirements will no longer have access to direct messages.
Tiktok states its platform is only for people aged over 13, while users under 18 must have the consent of a parent or legal guardian.
However, the company has no way of verifying this or preventing under-13s from skirting the rules by inputting a different date of birth.
Nevertheless, Cormac Keenan, Tiktok’s head of trust and safety for EMEA, said the move was “about going one step further to put in place stronger proactive protections to keep younger members of our community safe”.
“Direct messaging is an amazing tool that enables people to make new friends and connections no matter where they are in the world, but despite its potential for good, we understand the potential for misuse,” he said.
It marks the social media firm’s latest effort to improve the safety of its users, including banning virtual gifting for under-18s.
The company, which is owned by Chinese tech giant Bytedance, has also rolled out a family mode to allow parents to control their child’s use of the app.
It comes as Tiktok faces a surge in demand from its 1.5bn monthly active users as lockdown measures prompted by the coronavirus crisis force people to stay at home.
Yesterday it emerged Bytedance is looking to hire 10,000 new employees as part of its plan to hit 100,000 staff members by the end of the year.


cityam--2020-04-16--London fintech firm Previse secures $11m in funding round

London-based fintech startup Previse has secured $ 11m ( £8.8m ) in fresh funding as the invoice payment platform defied wider economic gloom sparked by the coronavirus crisis .
Previse , which was founded in 2016 , uses artificial intelligence to help suppliers get invoices paid instantly when no manual intervention is needed .
Read more : Fintech bank Revolut launches in the US The King ’ s Cross-headquartered firm currently processes more than 100,000 invoices per day and is aiming to reach 5m suppliers within the next five years .
The funding round was led by Temasek-based Reefknot Investments @ @ @ @ @ @ @ investors Bessemer Venture Partners , Hambro Perks and Augmentum Fintech .
It comes as the pandemic puts pressure on cashflow , with a particular strain on small and medium-sized businesses ( SME ) .
“ This backing and investment from our new partners will support Previse as our instant payment technology , Instant Pay , moves to adoption by more large corporate buyers all over the world , ” said Previse co-founder and chief executive Paul Christensen .
“ Now , more than ever , it is important to increase the resilience of @ @ @ @ @ @ @ across the world depend on.
” Previse is part of Mastercard ’ s startup acceleration programme Start Path and the financial services giant has used the technology with some of its own suppliers .
James Anderson , executive vice president at Mastercard , said : “ The business world has accelerated , but the payments that enable it remain stuck in neutral .
“ It is solutions and innovations like those being driven by Previse and Mastercard , through banks to their corporate customers , that will help businesses support their suppliers , @ @ @ @ @ @ @ ”

London fintech firm Previse secures $11m in funding round
London-based fintech startup Previse has secured $11m (£8.8m) in fresh funding as the invoice payment platform defied wider economic gloom sparked by the coronavirus crisis.
Previse, which was founded in 2016, uses artificial intelligence to help suppliers get invoices paid instantly when no manual intervention is needed.
The King’s Cross-headquartered firm currently processes more than 100,000 invoices per day and is aiming to reach 5m suppliers within the next five years.
The funding round was led by Temasek-based Reefknot Investments and Mastercard, with support from existing investors Bessemer Venture Partners, Hambro Perks and Augmentum Fintech.
It comes as the pandemic puts pressure on cashflow, with a particular strain on small and medium-sized businesses (SME).
“This backing and investment from our new partners will support Previse as our instant payment technology, Instant Pay, moves to adoption by more large corporate buyers all over the world,” said Previse co-founder and chief executive Paul Christensen.
“Now, more than ever, it is important to increase the resilience of supply chains and support SMEs that economies across the world depend on.”
Previse is part of Mastercard’s startup acceleration programme Start Path and the financial services giant has used the technology with some of its own suppliers.
James Anderson, executive vice president at Mastercard, said: “The business world has accelerated, but the payments that enable it remain stuck in neutral.
“It is solutions and innovations like those being driven by Previse and Mastercard, through banks to their corporate customers, that will help businesses support their suppliers, and liberate them from inefficient processes.”


cityam--2020-04-16--Recipe box firm Gousto secures £33m investment as coronavirus boosts business

Recipe box firm Gousto has secured £33m in new funding from investors including celebrity fitness coach Joe Wicks , as growth in the meal-kit market has been accelerated by the coronavirus outbreak .
The funding round was led by Perwyn , BGF , and MMC Ventures and Joe Wicks , taking the total funds raised to more than £130m in the last eight years .
Read more : Gousto to create 700 jobs as recipe box firm turns to tech Gousto , which reported a 70 per cent year-on-year jump in revenue in the first quarter , will use the @ @ @ @ @ @ @ team and accelerate innovation including next day delivery .
The company is also hiring for around 100 roles at its warehouse in Lincolnshire and a second distribution centre which will open next year , as it aims to boost headcount by more than 700 by 2022 .
The funding was secured before the coronavirus outbreak , however the pandemic could accelerate growth in the sector , which was previously expected to exceed £1.5bn within the next two years .
Gousto founder and chief executive Timo Boldt said : “ We continue to be @ @ @ @ @ @ @ UK ’ s most-loved way to eat dinner.
” “ This additional investment is not only a validation of our track record , but it is also an endorsement of our strategic vision of the future which is rooted in investing in innovative technology to transform the way we search for , shop for , and cook our food .
Read more : UK coronavirus lockdown set to be extended until early May Andrew Wynn , Founder and Managing Partner at Perwyn added : “ The business has adapted quickly to continue providing @ @ @ @ @ @ @ “ This reaffirms the decision we took far before Covid-19 , that we ’ re investing in the right people and a business set for even greater success .
”

Recipe box firm Gousto secures £33m investment as coronavirus boosts business
Gousto is said to be gearing up for an initial public offering
Recipe box firm Gousto has secured £33m in new funding from investors including celebrity fitness coach Joe Wicks, as growth in the meal-kit market has been accelerated by the coronavirus outbreak.
The funding round was led by Perwyn, BGF, and MMC Ventures and Joe Wicks, taking the total funds raised to more than £130m in the last eight years.
Gousto, which reported a 70 per cent year-on-year jump in revenue in the first quarter, will use the extra funding to expand its London tech team and accelerate innovation including next day delivery.
The company is also hiring for around 100 roles at its warehouse in Lincolnshire and a second distribution centre which will open next year, as it aims to boost headcount by more than 700 by 2022.
The funding was secured before the coronavirus outbreak, however the pandemic could accelerate growth in the sector, which was previously expected to exceed £1.5bn within the next two years.
Gousto founder and chief executive Timo Boldt said: “We continue to be laser-focused on our vision to become the UK’s most-loved way to eat dinner.”
“This additional investment is not only a validation of our track record, but it is also an endorsement of our strategic vision of the future which is rooted in investing in innovative technology to transform the way we search for, shop for, and cook our food.
Andrew Wynn, Founder and Managing Partner at Perwyn added: “ The business has adapted quickly to continue providing an essential service to so many.
“This reaffirms the decision we took far before Covid-19, that we’re investing in the right people and a business set for even greater success.”


cityam--2020-04-16--UK must beef up coronavirus economic response, says think tank

The UK government must take “ further radical policy steps ” to tackle the economic fallout from coronavirus , a think tank has said , amid huge uncertainty over the length of the outbreak .
The Resolution Foundation praised the government ’ s response so far , which includes £330bn of lending and a scheme to pay furloughed workers ’ wages .
Read more : One in four UK firms temporarily closed due to coronavirus Yet it said more must be done to ensure the economy recovers from the coronavirus slowdown , including a beefing up of its job retention @ @ @ @ @ @ @ to directly finance government spending .
The report came amid dire warnings about the UK economy , which could contract by as much as 35 per cent in the second quarter according to the Office for Budget Responsibility .
The Resolution Foundation today said a ‘ V-shaped ’ recovery with about a three per cent hit to GDP over the medium term is possible if a lockdown stays in place for three months .
Yet it said that “ if a six or 12-month lockdown is necessary , it could mean a far @ @ @ @ @ @ @ years , and a permanent GDP hit of five to seven per cent ” .
The report notes that a six-month lockdown could result in unemployment averaging 5m in 2021 as the government ’ s job retention scheme is phased out .
The Foundation said this would “ far exceed ” the peaks seen during the 80s and 90s recessions .
The Resolution Foundation therefore urged reforms to the scheme , which pays 80 per cent of people ’ s wages so long as they are furloughed .
It said the government should @ @ @ @ @ @ @ part-time if this can be done safely .
The think tank also said the government should ask the Bank of England to directly fund government spending .
The Bank is already doing this through its so-called ways and means facility , which is essentially an overdraft for the government .
But the report called for a “ a transparent , time-limited framework for monetary financing ” .
Read more : IMF : UK must extend Brexit trade deal deadline during coronavirus “ As well as refining its crisis response , the government must @ @ @ @ @ @ @ said Richard Hughes , research associate at the Resolution Foundation .
“ In doing so , Ministers should remember that young people and low-paid workers have borne the brunt of the crisis , and will need to be at the heart of support to get the economy back on track .
”

UK must beef up coronavirus economic response, says think tank
The UK economy has been all but shut down during the coronavirus pandemic
The UK government must take “further radical policy steps” to tackle the economic fallout from coronavirus, a think tank has said, amid huge uncertainty over the length of the outbreak.
The Resolution Foundation praised the government’s response so far, which includes £330bn of lending and a scheme to pay furloughed workers’ wages.
Yet it said more must be done to ensure the economy recovers from the coronavirus slowdown, including a beefing up of its job retention scheme and asking the Bank of England to directly finance government spending.
The report came amid dire warnings about the UK economy, which could contract by as much as 35 per cent in the second quarter according to the Office for Budget Responsibility.
The Resolution Foundation today said a ‘V-shaped’ recovery with about a three per cent hit to GDP over the medium term is possible if a lockdown stays in place for three months.
Yet it said that “if a six or 12-month lockdown is necessary, it could mean a far longer recovery of between two and five years, and a permanent GDP hit of five to seven per cent”.
The report notes that a six-month lockdown could result in unemployment averaging 5m in 2021 as the government’s job retention scheme is phased out. The Foundation said this would “far exceed” the peaks seen during the 80s and 90s recessions.
The Resolution Foundation therefore urged reforms to the scheme, which pays 80 per cent of people’s wages so long as they are furloughed. It said the government should ensure furloughed workers can return to work part-time if this can be done safely.
The think tank also said the government should ask the Bank of England to directly fund government spending.
The Bank is already doing this through its so-called ways and means facility, which is essentially an overdraft for the government. But the report called for a “a transparent, time-limited framework for monetary financing”.
“As well as refining its crisis response, the government must also plan a sustainable recovery,” said Richard Hughes, research associate at the Resolution Foundation.
“In doing so, Ministers should remember that young people and low-paid workers have borne the brunt of the crisis, and will need to be at the heart of support to get the economy back on track.”


cityam--2020-04-16--Downturns this deep can take a long time to recover from, financially and mentally

• The stock market has declined by 25 % or more on 11 occasions since 1871 .
The median recovery time from this point has been 1.8 years .
• Investors who shifted to cash after the 1929 crash faced a 34-year wait to break even , compared with 15 years for those who remained invested and less than 7 years for those who drip-fed additional small amounts in .
• A “ dash for cash ” in 2001 and 2008 would still have left investors out of pocket today Before last week ’ s rebound , US stocks had @ @ @ @ @ @ @ as measured by the S & P 500 Index .
Like many of you reading this , my savings have taken a big hit .
I set up a junior ISA for both of my children in February , and that money has also fallen by around a quarter .
I know we always say that investing in the stock market is for the long term , but that doesn ’ t make holding your nerve through this any easier .
Every single time there is a downturn it feels like we are @ @ @ @ @ @ @ ?
When will we be able to catch our breath ?
Where is the dry land ?
Importantly , how we respond to these downturns can have a big impact on our future wealth .
Risk of loss is the price of the entry ticket for the stock market The unfortunate truth is that stock market declines of this magnitude , and worse , occur from time to time .
Volatility and the risk of loss are part of the “ price of the entry ticket ” for stock market investments .
There @ @ @ @ @ @ @ years between 1871 and 2019 when stocks ( as measured by the S & P 500 Index ) have destroyed at least 25 % of value for investors ( see table ) .
In 2001 and 2008 downturns , losses exceeded 40 % .
In the worst case , the Great Depression of the 1930s , investors lost over 80 % of their money .
It took over 15 years for them to make their money back – if they remained invested .
Other stock market falls were not quite so calamitous .
@ @ @ @ @ @ @ investors would have recouped all losses in two years or less if invested in the S & P500 index .
In the other four – 1893 , 2001 and 2008 – the period to breakeven was four to five years .
How long did US stocks take to recover losses from a 25 % crash ?
Past Performance is not a guide to future performance and may not be repeated .
Source : Robert Shiller , Schroders .
Monthly data 1871-2020 .
Data is for S & P 500 and assumes investors retained @ @ @ @ @ @ @ It is worth noting that these figures are all in nominal terms , so they include any uplift that may have come from inflation – things look worse in inflation-adjusted terms .
For example , although the US market had made up its dotcom losses by October 2006 in nominal terms , it was not until April 2013 that it broke even in inflation-adjusted terms .
On the flip side , over the last 148 years and two months , US stocks have returned a frankly amazing 8.9 % a year , 6.7 @ @ @ @ @ @ @ Over the same period , US cash returned only 4 % a year .
Dash for cash , stick with stocks , or double-down ?
There are three common investor responses to a market crash : • Dash-for-cash : abandon the stock market in favour of the perceived safety of cash • Double-down : invest additional money in the stock market , either as a lump-sum or by drip-feeding money in Lump-sum investing exposes investors to the risk that they make that investment at a bad time , adding the challenge of trying @ @ @ @ @ @ @ when the market is about to start recovering .
It also assumes that investors can access a large cash pile to finance that investment .
In contrast , the drip-feeding approach is a bit like “ buying low ” but with the humility to accept that we have no idea when the lows will occur .
“ Buying lower ” ( than before ) might be a better description .
In the remainder of this article , we assume that this is the approach taken in the double-down response .
In the 11 @ @ @ @ @ @ @ has fallen by 25 % or more , we analysed how long it would have taken for an investor ’ s portfolio to get back to its pre-crash value under each response .
We assume that an investor is choosing between these responses when the market has already fallen by 25 % .
This is the position that many investors find themselves in today .
For more : – Which stock markets look “ cheap ” after another week of turbulence ?
– Six tips for better behavioural investing – What is “ @ @ @ @ @ @ @ good idea ?
For the purpose of this analysis , in the double-down response , we have assumed that an individual invests an annual amount equivalent to 5 % of what the portfolio is worth in the month when it first declines by at least 25 % ( at least 25 % because we are using monthly data and the change from one month to the next could result in a drop of more than 25 % ) .
So , for a portfolio worth £10,000 which had fallen in value by exactly @ @ @ @ @ @ @ be 5 % x 7,500 / 12 = £31.25 per month .
This is equivalent to just over 0.3 % of the pre-crash value of the portfolio .
This would not be an unrealistic amount for many investors .
It can easily be scaled up or down for different amounts .
These figures are for illustrative purposes only and are not a recommendation .
It follows that investing new money will increase a portfolio ’ s value faster than doing nothing .
As a result , for the double-down response , we have @ @ @ @ @ @ @ get back to the pre-crash level plus the value of additional investments .
This final figure is fairer for comparison purposes and all comments which follow relate to it .
The table below summarises our results .
Note that the stick-with-stocks results are the same in the table below as those shown earlier .
Values are in percentage terms .
Number of years before all losses are recouped Source : Federal Reserve Bank of St. Louis , Robert Shiller , Schroders .
Stock market data is for S & P 500 .
Monthly @ @ @ @ @ @ @ bill , secondary market rate ; 1920-1934 based on yields on short-term United States securities ; 1871-1920 based on 1-year interest rate .
1871-1920 data only available annually so a constant return on cash has been assumed for all months during this period .
Other data is monthly .
All analysis is based on nominal amounts .
There is a real risk that individuals are so scarred by recent experience that they are put off from investing in the stock market for a long period of time – and dash for cash .
@ @ @ @ @ @ @ historically , that would have been the worst financial decision an investor could have made .
It pretty much guarantees that it would take a very long time to recoup losses .
For example , investors who shifted to cash in 1929 , after the first 25 % fall of the Great Depression , would have had to wait until 1963 to get back to breakeven .
This compares with breakeven in early 1945 if they had remained invested in the stock market .
And remember , the stock market ultimately fell over @ @ @ @ @ @ @ , shifting to cash might have avoided the worst of those losses during the crash , but still came out as by far the worst long-term strategy .
Similarly , an investor who shifted to cash in 2001 , after the first 25 % of losses in the dotcom crash , would find their portfolio today still worth only around 90 % of its year-2000 value .
The message is overwhelmingly clear : a rejection of the stock market in favour of cash would have been very bad for wealth over the long @ @ @ @ @ @ @ question .
Irrespective of any investment considerations , not everyone will be able to buy more , whether they want to or not .
Alongside the significant health consequences of Covid-19 , people are suffering job insecurity and cash flow difficulties .
The need to pay rent and bills , to buy food , to feel financially secure , trumps any opinions about whether the stock market is good value or not .
All comments which follow need to be taken with that caveat in mind .
That is in addition to the @ @ @ @ @ @ @ quantify how bad things will get during the current downturn .
However , at least in regard to that second caveat , that is no different to any previous market crash .
Do you think investors knew in 1929 , after the first 25 % fall , that the stock market was going to fall another 75 % ?
Or that in 1893 , 1903 , 1917 , 1970 , or 1987 , they knew that -25 % was close to the low point ?
Our analysis finds that , in most cases @ @ @ @ @ @ @ made a huge difference to the length of time needed to recover losses compared with doing nothing .
It shortens the recovery period in six cases , makes no difference in four and results in a worse outcome in one .
However , the one time that it made a big difference was in the worst downturn of all , the Great Depression .
Then , drip-feeding a small amount into the stock market would have cut the length of time to recovery by more than half – 6.7 years compared with 15.2 @ @ @ @ @ @ @ that the double-down strategy does not make a bigger difference , this is partly because the assumed size of the investment is relatively low – investing an amount equivalent to 20 % of the portfolio value , rather than 5 % , would have closed the gap quicker in each case .
Everyone ’ s circumstances are different and this is in no way intended as financial advice .
Nonetheless , for those who are already invested in the stock market , the steps you take now will have an impact on how @ @ @ @ @ @ @ .
Anyone thinking of moving to cash should consider the consequences , with savings rates at close to zero .
In contrast , history shows that investors who hold their nerve are likely to end up with a better long-run outcome .
Those who are in a position to be able to add to portfolios could end up even better off , and are unlikely to end up worse off .
However , this only holds in the long run .
No one has a crystal ball to be able to predict how @ @ @ @ @ @ @ .
Repeating what I wrote earlier , risk of loss is the price of the entry ticket for the stock market .
Higher long term returns are the potential payoff .
The mental scars of what we are living through will be with us for a generation , but the financial scars need not be .
• For more , visit Schroders ’ insights and follow Schroders on twitter .
Important Information : The views and opinions contained herein are of those named in the article and may not necessarily represent views expressed @ @ @ @ @ @ @ strategies or funds .
The sectors and securities shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell .
This communication is marketing material .
This material is intended to be for information purposes only and is not intended as promotional material in any respect .
The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument .
The material is not intended to provide and should not be relied on for accounting , legal or @ @ @ @ @ @ @ Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions .
Past performance is not a guide to future performance and may not be repeated .
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested .
All investments involve risks including the risk of possible loss of principal .
Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy .
@ @ @ @ @ @ @ views and information in this document when taking individual investment and/or strategic decisions .
The opinions in this document include some forecasted views .
We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know .
However , there is no guarantee than any forecasts or opinions will be realised .
These views and opinions may change .
Issued by Schroder Investment Management Limited , 1 London Wall Place , London , EC2Y 5AU .
Registration No .
1893220 England .
Authorised and regulated @ @ @ @ @ @

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Downturns this deep can take a long time to recover from, financially and mentally
Scene at a classic carnival with rides and focus on ticket booth with subtle retro styling
The stock market has declined by 25% or more on 11 occasions since 1871. The median recovery time from this point has been 1.8 years.
Investors who shifted to cash after the 1929 crash faced a 34-year wait to break even, compared with 15 years for those who remained invested and less than 7 years for those who drip-fed additional small amounts in.
A “dash for cash” in 2001 and 2008 would still have left investors out of pocket today
Before last week’s rebound, US stocks had lost around 25% since mid-February, as measured by the S&P 500 Index. Like many of you reading this, my savings have taken a big hit. I set up a junior ISA for both of my children in February, and that money has also fallen by around a quarter. I know we always say that investing in the stock market is for the long term, but that doesn’t make holding your nerve through this any easier.
Every single time there is a downturn it feels like we are drowning. When will the storm end? When will we be able to catch our breath? Where is the dry land? Importantly, how we respond to these downturns can have a big impact on our future wealth.
Risk of loss is the price of the entry ticket for the stock market
The unfortunate truth is that stock market declines of this magnitude, and worse, occur from time to time. Volatility and the risk of loss are part of the “price of the entry ticket” for stock market investments.
There have been 11 occasions in the 148 years between 1871 and 2019 when stocks (as measured by the S&P 500 Index) have destroyed at least 25% of value for investors (see table). In 2001 and 2008 downturns, losses exceeded 40%.
In the worst case, the Great Depression of the 1930s, investors lost over 80% of their money. It took over 15 years for them to make their money back – if they remained invested.
Other stock market falls were not quite so calamitous. In seven of the 11 episodes, investors would have recouped all losses in two years or less if invested in the S&P500 index. In the other four – 1893, 2001 and 2008 – the period to breakeven was four to five years.
How long did US stocks take to recover losses from a 25% crash?
Past Performance is not a guide to future performance and may not be repeated.
Source: Robert Shiller, Schroders. Monthly data 1871-2020. Data is for S&P 500 and assumes investors retained their exposure to the stock market.
It is worth noting that these figures are all in nominal terms, so they include any uplift that may have come from inflation – things look worse in inflation-adjusted terms. For example, although the US market had made up its dotcom losses by October 2006 in nominal terms, it was not until April 2013 that it broke even in inflation-adjusted terms.
On the flip side, over the last 148 years and two months, US stocks have returned a frankly amazing 8.9% a year, 6.7% a year ahead of inflation. Over the same period, US cash returned only 4% a year.
Dash for cash, stick with stocks, or double-down?
There are three common investor responses to a market crash:
Dash-for-cash: abandon the stock market in favour of the perceived safety of cash
Stick-with-stocks: the “do nothing” approach
Double-down: invest additional money in the stock market, either as a lump-sum or by drip-feeding money in
Lump-sum investing exposes investors to the risk that they make that investment at a bad time, adding the challenge of trying to pick exactly the right time, when the market is about to start recovering. It also assumes that investors can access a large cash pile to finance that investment.
In contrast, the drip-feeding approach is a bit like “buying low” but with the humility to accept that we have no idea when the lows will occur. “Buying lower” (than before) might be a better description. In the remainder of this article, we assume that this is the approach taken in the double-down response.
The response matters
In the 11 previous occasions when the US stock market has fallen by 25% or more, we analysed how long it would have taken for an investor’s portfolio to get back to its pre-crash value under each response. We assume that an investor is choosing between these responses when the market has already fallen by 25%. This is the position that many investors find themselves in today.
For more:
– Which stock markets look “cheap” after another week of turbulence?
– Six tips for better behavioural investing
– What is “helicopter money” and is it a good idea?
For the purpose of this analysis, in the double-down response, we have assumed that an individual invests an annual amount equivalent to 5% of what the portfolio is worth in the month when it first declines by at least 25% (at least 25% because we are using monthly data and the change from one month to the next could result in a drop of more than 25%). So, for a portfolio worth £10,000 which had fallen in value by exactly 25%, the monthly investment would be 5% x 7,500 / 12 = £31.25 per month. This is equivalent to just over 0.3% of the pre-crash value of the portfolio. This would not be an unrealistic amount for many investors. It can easily be scaled up or down for different amounts. These figures are for illustrative purposes only and are not a recommendation.
It follows that investing new money will increase a portfolio’s value faster than doing nothing. As a result, for the double-down response, we have also calculated the length of time to get back to the pre-crash level plus the value of additional investments. This final figure is fairer for comparison purposes and all comments which follow relate to it.
The table below summarises our results. Note that the stick-with-stocks results are the same in the table below as those shown earlier. Values are in percentage terms.
Number of years before all losses are recouped
Source: Federal Reserve Bank of St. Louis, Robert Shiller, Schroders. Stock market data is for S&P 500. Monthly cash return 1934-2020 based on 3-month Treasury bill, secondary market rate; 1920-1934 based on yields on short-term United States securities; 1871-1920 based on 1-year interest rate. 1871-1920 data only available annually so a constant return on cash has been assumed for all months during this period. Other data is monthly. All analysis is based on nominal amounts.
There is a real risk that individuals are so scarred by recent experience that they are put off from investing in the stock market for a long period of time – and dash for cash. However, our research shows that, historically, that would have been the worst financial decision an investor could have made. It pretty much guarantees that it would take a very long time to recoup losses.
For example, investors who shifted to cash in 1929, after the first 25% fall of the Great Depression, would have had to wait until 1963 to get back to breakeven. This compares with breakeven in early 1945 if they had remained invested in the stock market. And remember, the stock market ultimately fell over 80% during this crash. So, shifting to cash might have avoided the worst of those losses during the crash, but still came out as by far the worst long-term strategy. Similarly, an investor who shifted to cash in 2001, after the first 25% of losses in the dotcom crash, would find their portfolio today still worth only around 90% of its year-2000 value.
The message is overwhelmingly clear: a rejection of the stock market in favour of cash would have been very bad for wealth over the long run.
Should investors buy more?
This is a very personal question. Irrespective of any investment considerations, not everyone will be able to buy more, whether they want to or not. Alongside the significant health consequences of Covid-19, people are suffering job insecurity and cash flow difficulties. The need to pay rent and bills, to buy food, to feel financially secure, trumps any opinions about whether the stock market is good value or not. All comments which follow need to be taken with that caveat in mind. That is in addition to the caveat that it remains very difficult to quantify how bad things will get during the current downturn.
However, at least in regard to that second caveat, that is no different to any previous market crash. Do you think investors knew in 1929, after the first 25% fall, that the stock market was going to fall another 75%? Or that in 1893, 1903, 1917, 1970, or 1987, they knew that -25% was close to the low point?
Our analysis finds that, in most cases, the double-down response would not have made a huge difference to the length of time needed to recover losses compared with doing nothing. It shortens the recovery period in six cases, makes no difference in four and results in a worse outcome in one.
However, the one time that it made a big difference was in the worst downturn of all, the Great Depression. Then, drip-feeding a small amount into the stock market would have cut the length of time to recovery by more than half – 6.7 years compared with 15.2 years.
Although it may seem surprising that the double-down strategy does not make a bigger difference, this is partly because the assumed size of the investment is relatively low – investing an amount equivalent to 20% of the portfolio value, rather than 5%, would have closed the gap quicker in each case.
Actions have consequences
Everyone’s circumstances are different and this is in no way intended as financial advice. Nonetheless, for those who are already invested in the stock market, the steps you take now will have an impact on how your portfolio recovers from the current downturn. Anyone thinking of moving to cash should consider the consequences, with savings rates at close to zero.
In contrast, history shows that investors who hold their nerve are likely to end up with a better long-run outcome. Those who are in a position to be able to add to portfolios could end up even better off, and are unlikely to end up worse off.
However, this only holds in the long run. No one has a crystal ball to be able to predict how and when the current downturn will end. Repeating what I wrote earlier, risk of loss is the price of the entry ticket for the stock market. Higher long term returns are the potential payoff. The mental scars of what we are living through will be with us for a generation, but the financial scars need not be.
For more, visit Schroders’ insights and follow Schroders on twitter.
Important Information: The views and opinions contained herein are of those named in the article and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The sectors and securities shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell. This communication is marketing material.
This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. The opinions in this document include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. Issued by Schroder Investment Management Limited, 1 London Wall Place, London, EC2Y 5AU. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.


cityam--2020-04-16--First of UK ventilators wins approval as private sector ramps up production

Regulatory approval has been granted for thousands of new ventilators through the government ’ s private sector call to arms .
Penlon ’ s Prima ES02 model is the first to be green lit by the Medicines and Healthcare products Regulatory Agency ( MHRA ) , as a part of the “ Ventilator Challenge ” , a month after the rallying cry was issued .
Read more : Coronavirus : UK ventilator orders still waiting on approval The government has ordered 15,000 of the new models to add to the 10,000 already in the NHS , with hundreds expected to @ @ @ @ @ @ @ Penlon designed the new ventilator as a part of the VentilatorChallengeUK consortium , which includes Ford , Rolls Royce and Airbus .
Chancellor of the Duchy of Lancaster Michael Gove said : “ The approval of Penlon ’ s device underlines the significant progress being made in the Ventilator Challenge .
“ I pay tribute to the incredible ingenuity and commitment of our manufacturing industry , coming together as part of the national effort to protect the NHS and save lives.
” Health secretary Matt Hancock has said that the NHS will need @ @ @ @ @ @ @ down from a previous estimate of 30,000 .
Orders from a consortium of Formula One teams , including Renault and Red Bull , were cancelled this week after failing to gain final regulatory approval .
The government had provisionally ordered thousands of the model , called BlueSky , but had not paid for them .
Read more : Babcock to make 10,000 ventilators as firm takes small hit from coronavirus The Cabinet Office said that “ following a reassessment of the product ’ s viability in light of the ever developing picture around @ @ @ @ @ @ @ Covid-19 ” .
It added : “ We are continuing to work at unprecedented speed with a number of other manufacturers to scale up UK production of ventilators .
”

First of UK ventilators wins approval as private sector ramps up production
NHS workers in PPE take a patient with an unknown condition from an ambulance at St Thomas’ Hospital on April 10, 2020
Regulatory approval has been granted for thousands of new ventilators through the government’s private sector call to arms.
Penlon’s Prima ES02 model is the first to be green lit by the Medicines and Healthcare products Regulatory Agency (MHRA), as a part of the “Ventilator Challenge”, a month after the rallying cry was issued.
The government has ordered 15,000 of the new models to add to the 10,000 already in the NHS, with hundreds expected to be built over the next week.
Penlon designed the new ventilator as a part of the VentilatorChallengeUK consortium, which includes Ford, Rolls Royce and Airbus.
Chancellor of the Duchy of Lancaster Michael Gove said: “The approval of Penlon’s device underlines the significant progress being made in the Ventilator Challenge.
“I pay tribute to the incredible ingenuity and commitment of our manufacturing industry, coming together as part of the national effort to protect the NHS and save lives.”
Health secretary Matt Hancock has said that the NHS will need 18,000 ventilators to treat coronavirus patients, down from a previous estimate of 30,000.
Orders from a consortium of Formula One teams, including Renault and Red Bull, were cancelled this week after failing to gain final regulatory approval.
The government had provisionally ordered thousands of the model, called BlueSky, but had not paid for them.
The Cabinet Office said that “following a reassessment of the product’s viability in light of the ever developing picture around what is needed to most effectively treat Covid-19”.
It added: “We are continuing to work at unprecedented speed with a number of other manufacturers to scale up UK production of ventilators.”