cityam--2020-05-15--What are negative interest rates and will the US and UK turn to them?

President Donald Trump made clear this week that he is a fan of negative interest rates , and wants the US to have them .
Yet his central banker Jay Powell pushed back against the suggestion .
The Bank of England ’ s Andrew Bailey , who has slashed rates to a record low of 0.1 per cent , also said they were not currently necessary .
Read more : Bank of England ‘ not contemplating ’ negative interest rates , says governor Andrew Bailey But what are negative interest rates ?
What are their pros and cons ?
And @ @ @ @ @ @ @ Bank of England introduce them ?
Central banks have a number of roles .
Alongside keeping prices stable , one of them is to act as a bank for banks , in the sense that lenders keep their excess money there .
Like at a high street bank , central banks traditionally pay interest on money that banks keep in their ( virtual ) vaults .
This interest rate , known as bank rate in the UK and deposit rate in the Eurozone , influences how much banks pay customers for deposits and @ @ @ @ @ @ @ financial crisis , central banks have slashed their interest rates in an effort to spur economic growth by making lending cheaper throughout the whole economy .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Some central banks have gone further than others , however .
In the wake of the Eurozone crisis , the European Central Bank ( ECB ) cut its deposit rate to minus 0.1 per cent .
Rates are also in the red in Sweden , Switzerland @ @ @ @ @ @ @ banks are charged a small amount for keeping their money with their country ’ s central bank .
Why on earth would central banks punish lenders for putting some money aside ?
The main reason is because they think it will force banks to lend out their spare cash , given that they have nowhere to keep it without paying .
Bank lending encourages economic growth , making it easier for entrepreneurs to invest or companies to expand .
They also lower the value of the country ’ s currency .
When the @ @ @ @ @ @ @ means that assets denominated in pounds yield less of a return , putting investors off the pound .
In turn , this means a country ’ s exports are cheaper compared to others , boosting their export industries .
Read more : Donald Trump lashes out at ECB over euro ’ s fall It ’ s mostly for this reason that Trump is so keen .
He criticised former ECB boss Mario Draghi for lowering rates , arguing that the Italian did so to make European exports cheaper than the US ’ s @ @ @ @ @ @ @ As long as other countries are receiving the benefits of Negative Rates , the USA should also accept the “ GIFT ” .
Big numbers !
” What are the drawbacks ?
Negative interest rates come with negative consequences , like all unconventional monetary policy .
Chief among these is that they hurt banks ’ profitability .
They cost banks money and they lower the so-called “ net interest margin ” – the difference between the cost of borrowing and the price of lending – through which lenders make money .
If central @ @ @ @ @ @ @ , a bank looks bad and is vulnerable to competition if it charges a high interest rate on its loans .
Yet it can not pass the negative interest rate on to savers , as no one would put their money in that bank .
Europe ’ s biggest banks , from Deutsche to UBS , have complained about this .
They also hurt savers by reducing the amount of interest they gain on their deposits .
Draghi was depicted as a blood-sucking vampire in the German tabloids for damaging the country ’ @ @ @ @ @ @ @ in the US and UK ?
Draghi defended negative interest rates vociferously , saying they were necessary to ensure price stability and support the languishing Eurozone economy .
Yet Fed chair Jay Powell and Bank of England governor Andrew Bailey have both said they do not think negative interest rates are appropriate for their economies .
Powell said this week that other policies , such as printing digital money to buy bonds , can support lending throughout the coronavirus crash .
Slyly referencing Trump he said : “ I know that there are @ @ @ @ @ @ @ added : “ We think we have a good toolkit and that ’ s the one we ’ ll be using.
” Bailey has spoken against negative interest rates in the past and did so again this week .
He told a Financial Times webinar : “ It is not something we are currently planning for or contemplating.
” If the BoE ramps up its economic stimulus further , it is likely to have billions of pounds worth of bonds .
This effectively lets them hand out cash to banks and companies and @ @ @ @ @ @ @ without cutting the main rate .
Read more : Bank of England : UK economy could suffer biggest crash in 300 years However , Bailey was sure to say that he did not rule anything out in the face of the worst economic crash in 300 years .
Central bankers have repeatedly sailed their institutions into unchartered waters since the financial crisis , and some traders think they may well do so again .

What are negative interest rates and will the UK turn to them?
Bank of England tells UK banks to up preparations for no-deal Brexit
Bank of England governor Andrew Bailey this week said he has changed his mind on negative interest rates, saying the BoE is keeping them under “active review”.
President Donald Trump has repeatedly made clear that he is a fan of negative rates, and wants the US to have them as it deals with the coronavirus crisis.
But what are negative interest rates? Will the UK’s Bank of England or US’s Federal Reserve introduce them? And what would that mean for mortgages and savings?
What are negative rates?
One of a central bank’s roles is to act as a bank for banks, in the sense that lenders keep some excess money there. Central banks traditionally pay interest on the deposits banks keep in their (virtual) vaults.
This interest rate, known as bank rate in the UK and deposit rate in the Eurozone, influences the cost of bank lending throughout the economy. Lower rates therefore stimulate more lending.
Since the start of the coronavirus crisis, the Bank of England has slashed its main rate to a record low of 0.1 per cent. This has prompted questions about whether it will cut into negative territory to stimulate the economy further.
That would mean banks are charged a small amount for keeping their money with their country’s central bank.
The European Central Bank’s (ECB) deposit rate is currently minus 0.5 per cent. Rates are also in the red in Sweden, Switzerland, Denmark and Japan.
Why turn to negative interest rates?
Why on earth would central banks punish lenders for putting some money aside?
Negative interest rates lower borrowing costs throughout the economy. But they also force banks to lend out their spare cash, given that they have nowhere to keep it without paying for it. Bank lending encourages growth by boosting investment.
They also lower the value of the country’s currency. When the BoE cuts rates it means assets denominated in pounds yield less of a return, lowering demand for sterling.
This means a country’s exports are cheaper compared to others. It is primarily for this reason that Trump is so keen on negative interest rates, which he has called a “gift”.
US President Donald Trump has pushed for Us Federal Reserve chair Jerome Powell (L) to introduce negative interest rates amid coronavirus
What are the drawbacks of negative interest rates?
Negative interest rates come with negative consequences, particularly for banks and savers.
Not only do they cost banks, they lower the so-called “net interest margin” – the difference between the cost of borrowing and the cost of lending – through which lenders make money.
Lower interest rates reduce banks’ returns on their investments. Yet they cannot easily pass the negative interest rate on to savers, so their margins are squeezed.
They also hurt savers by reducing the amount of interest they gain on their deposits. ECB President Mario Draghi was depicted as a blood-sucking vampire in the German tabloids for damaging the country’s savings.
What would they mean for mortgages and savings?
A change in interest rates will have no effect on fixed-rate mortgages. And given that most UK mortgages are fixed, borrowers would not save money if interest rates turned negative.
Banks could pass on lower interest rates to floating-rate mortgage customers. However, this is unlikely given how much banks have been hit by coronavirus.
Mortgage costs have fallen considerably since central banks began slashing rates over a decade ago and could well continue to do so. Both HSBC and Barclays have lowered their mortgage interest rates this week.
On the other side of the equation, interest rates on savings have been hit hard, as savers know from the repeated letters through their door.
A cut into negative territory would likely cause banks to lower deposit rates further if they can. But analysts say it is unlikely lenders will start charging people interest on their savings, given the likelihood people would withdraw their money.
Will we see them in the US and UK?
Bank of England governor Andrew Bailey has in the past spoken out against negative interest rates. But he appeared to have change of heart this week and has said they are under “active review” for the first time amid the coronavirus crisis.
Bailey told MPs: “We do not rule things out as a matter of principle, that would be, I think, a foolish thing to do.”
But Bailey expressed concern about their impacts on banks and how they would be justified to the public. He said: “We’re not ruling it in but we’re not ruling it out.”
Judging by market movements, traders now think we could see negative interest rates in the UK in December. Yet that is far from certain.
If the BoE ramps up its economic stimulus further in the coming months to tackle the coronavirus fallout, it is likely to buy more bonds. This can lower borrowing costs and spur lending without cutting the main rate.
Fed chair Jay Powell has said he does not think negative interest rates are appropriate for the US economy.
Slyly referencing Trump he said: “I know that there are fans of the policy.” Yet he said: “We think we have a good toolkit and that’s the one we’ll be using.”


cityam--2020-05-15--Central London's streets to be car-free under new mayoral plan

Miles of London ’ s streets will be car-free under a new plan announced by the mayor to encourage cycling and walking and to help the transport system cope with social distancing .
Sadiq Khan said the plan would transform parts of central London into one of the largest car-free areas in any capital city .
“ Covid-19 poses the biggest challenge to London ’ s public transport network in TfL ’ s [ Transport for London ] history , ” he said .
Read more : Sadiq Khan : London transport fares will increase after £1.6bn TfL bailout “ @ @ @ @ @ @ @ all Londoners to maintain safe social distancing on public transport as lockdown restrictions are gradually eased.
” Passenger numbers on London ’ s Underground network have fallen 95 per cent since the UK went into lockdown in March , while the number of bus journeys has fallen by 85 per cent .
Earlier , TfL said it had secured £1.6bn in government funding to cover a shortfall in revenue until October .
TfL has said the requirement to maintain a two-metre distance from other people will mean buses and the tube will only @ @ @ @ @ @ @ of the normal number of passengers even when full services have been restored .
Khan said many more Londoners would therefore have to walk and cycle to keep the city moving .
Read more : Congestion charge set to rise 30 per cent after TfL bailout Streets between London Bridge and Shoreditch , Euston and Waterloo and Old Street and Holborn may be limited to buses , pedestrians and cyclists , city hall said .
Waterloo Bridge and London Bridge could also be restricted to people walking , cycling and buses only , @ @ @ @ @ @ @ safely travel between busy railway stations and their workplaces .
London ’ s congestion charge , payable by vehicles driving in a central zone , and ultra low emission zone will be reintroduced on Monday , the office said .
Under the proposals , the congestion charge could increase to £15 a day from £11.50 next month and the hours of operation extended as part of a package of temporary changes , it said .
The emergency funding deal with the government came with significant strings attached including increasing tube and bus fares @ @ @ @ @ @ @ finances and board .
Khan today said he had “ no choice ” but to accept the offer , which was the “ only deal the government put on the table ” , in order to keep services running .
In March , Khan said if he was re-elected mayor he would have to end the four-year freeze on tube fares due to TfL ’ s financial situation .
However , he had pledged to continue with the freeze on bus fares .
Describing the deal this morning , which consists of a @ @ @ @ @ @ @ as a “ sticking plaster ” , he warned that the cost would be felt be Londoners : “ The government is , in effect , making ordinary Londoners pay the cost for doing the right thing on Covid-19.
” “ They want fares to go up next January – ending the four years fares freeze I delivered after the last election .
Yesterday , Conservative mayoral candidate Shaun Bailey blasted Khan for financial mismanagement of TfL .
“ Sadiq Khan has been exposed as being such an incompetent mayor , that the @ @ @ @ @ @ @ the TfL board and its finances as a condition of the bailout that he had to beg them for , ” Bailey said .

Central London’s streets to be car-free under new mayoral plan
Miles of London’s streets will be car-free under a new plan announced by the mayor to encourage cycling and walking and to help the transport system cope with social distancing.
Sadiq Khan said the plan would transform parts of central London into one of the largest car-free areas in any capital city.
“Covid-19 poses the biggest challenge to London’s public transport network in TfL’s [Transport for London] history,” he said.
“It will take a monumental effort from all Londoners to maintain safe social distancing on public transport as lockdown restrictions are gradually eased.”
Passenger numbers on London’s Underground network have fallen 95 per cent since the UK went into lockdown in March, while the number of bus journeys has fallen by 85 per cent.
Earlier, TfL said it had secured £1.6bn in government funding to cover a shortfall in revenue until October.
TfL has said the requirement to maintain a two-metre distance from other people will mean buses and the tube will only be able to carry 13-15 per cent of the normal number of passengers even when full services have been restored.
Khan said many more Londoners would therefore have to walk and cycle to keep the city moving.
Streets between London Bridge and Shoreditch, Euston and Waterloo and Old Street and Holborn may be limited to buses, pedestrians and cyclists, city hall said.
Waterloo Bridge and London Bridge could also be restricted to people walking, cycling and buses only, with pavements widened to enable people to safely travel between busy railway stations and their workplaces.
London’s congestion charge, payable by vehicles driving in a central zone, and ultra low emission zone will be reintroduced on Monday, the office said.
Under the proposals, the congestion charge could increase to £15 a day from £11.50 next month and the hours of operation extended as part of a package of temporary changes, it said.
The emergency funding deal with the government came with significant strings attached including increasing tube and bus fares and government oversight of TfL’s finances and board.
Khan today said he had “no choice” but to accept the offer, which was the “only deal the government put on the table”, in order to keep services running.
In March, Khan said if he was re-elected mayor he would have to end the four-year freeze on tube fares due to TfL’s financial situation.
However, he had pledged to continue with the freeze on bus fares.
Describing the deal this morning, which consists of a £1.1bn grant and a £505m loan, as a “sticking plaster”, he warned that the cost would be felt be Londoners:
“The government is, in effect, making ordinary Londoners pay the cost for doing the right thing on Covid-19.”
“They want fares to go up next January – ending the four years fares freeze I delivered after the last election.
Yesterday, Conservative mayoral candidate Shaun Bailey blasted Khan for financial mismanagement of TfL.
“Sadiq Khan has been exposed as being such an incompetent mayor, that the government have had to take control of the TfL board and its finances as a condition of the bailout that he had to beg them for,” Bailey said.


cityam--2020-05-15--Virgin Atlantic won't fly until August under proposed quarantine measures - report

The government ’ s plans to implement a 14-day quarantine period on incoming travellers to the UK would prevent Virgin Atlantic from resuming passenger flights until August .
A source at the airline told Reuters that if the initiative , which was announced on Sunday , was approved , it would not be able to fill its aircraft .
Read more : Sir Richard Branson to sell $ 500m of Virgin Galactic stake to prop up other firms It said : “ If the quarantine is in place , the earliest is August .
If there ’ s no quarantine @ @ @ @ @ @ @ July ” .
On Monday , the government said the plan would be implemented from later this month , although further details have not yet been laid out .
The plan met with dismay from the UK ’ s airlines and airports , who said the measure risked making an already “ critical ” situation even worse .
Travellers coming from France and Ireland would be exempt from the measures , the government later said .
Listen to our daily City View podcast as we chart the economic fallout and business impact of @ @ @ @ @ @ @ all but totally dried up for airlines around the world as air travel demand has crashed due to global travel bans and border closures due to the pandemic .
Airlines are now beginning to make plans to restart flying operations , with budget carrier Ryanair saying it will restore 40 per cent of its capacity in July .
However , on Monday Willie Walsh , the chief executive of British Airways owner IAG , said that BA would review its plans to restart flying from July due to the measure .
The decision @ @ @ @ @ @ @ , which last week announced it would cut a third of its workforce and quit its Gatwick base due to the virus ’ impact .
The carrier remains in talks with the UK government over a £500m rescue package it needs in order to continue flying .
It has also been in negotiations with a number of private investors about a deal to secure its future .

Virgin Atlantic won’t fly until August under proposed quarantine measures – report
Virgin Atlantic has announced it will become part of global airline alliance SkyTeam from next year, becoming the first carrier to join in eight years.
The government’s plans to implement a 14-day quarantine period on incoming travellers to the UK would prevent Virgin Atlantic from resuming passenger flights until August.
A source at the airline told Reuters that if the initiative, which was announced on Sunday, was approved, it would not be able to fill its aircraft.
It said: “If the quarantine is in place, the earliest is August. If there’s no quarantine, you could see, maybe, July”.
On Monday, the government said the plan would be implemented from later this month, although further details have not yet been laid out.
The plan met with dismay from the UK’s airlines and airports, who said the measure risked making an already “critical” situation even worse.
Travellers coming from France and Ireland would be exempt from the measures, the government later said.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Passenger revenues have all but totally dried up for airlines around the world as air travel demand has crashed due to global travel bans and border closures due to the pandemic.
Airlines are now beginning to make plans to restart flying operations, with budget carrier Ryanair saying it will restore 40 per cent of its capacity in July.
However, on Monday Willie Walsh, the chief executive of British Airways owner IAG, said that BA would review its plans to restart flying from July due to the measure.
The decision would be another blow for Virgin Atlantic, which last week announced it would cut a third of its workforce and quit its Gatwick base due to the virus’ impact.
The carrier remains in talks with the UK government over a £500m rescue package it needs in order to continue flying.
It has also been in negotiations with a number of private investors about a deal to secure its future.


cityam--2020-05-15--Coronavirus 'R' rate as high as one, says SAGE

The official estimate of the ‘ R ’ rate has risen slightly over the last week , according to the scientists advising the government on the coronavirus outbreak .
The Scientific Advisory Group for Emergencies ( SAGE ) said the reproduction number is now between 0.7 and one , up from 0.5 to 0.9 last week .
Read more : London now counts ‘ just 24 ’ new coronavirus cases per day Part of the requirements of easing lockdown further is to keep the R rate below one .
The R rate is a measure of the reproduction rate of @ @ @ @ @ @ @ means it ’ s growing , while anything below one is shrinking .
The increase is being attributed to cases in care homes and hospitals accounting for a greater proportion of the total .
Last week , the government announced the R rate in London was the lowest in the country .
Fewer than 24 people are now catching coronavirus in the capital , according to figures by Public Health England and Cambridge University .
New modelling statistics suggest London could be coronavirus-free by June after the R rate fell to 0.4 , @ @ @ @ @ @ @ Read more : Coronavirus : 384 more deaths recorded in the UK The UK ’ s highest rate of infection is in the North East and Yorkshire , at 0.8 .
It is seeing around 4,320 new infections a day , researchers said .
The death toll in the UK rose by 384 today , bringing the total to 33,998 .
In the last 24 hours , a further 3,560 people have tested positive for the disease .
Get the news as it happens by following City A.M. on Twitter .

Coronavirus ‘R’ rate as high as one, says SAGE
The official estimate of the ‘R’ rate has risen slightly over the last week, according to the scientists advising the government on the coronavirus outbreak.
The Scientific Advisory Group for Emergencies (SAGE) said the reproduction number is now between 0.7 and one, up from 0.5 to 0.9 last week.
Part of the requirements of easing lockdown further is to keep the R rate below one.
The R rate is a measure of the reproduction rate of the virus. A number above one means it’s growing, while anything below one is shrinking.
The increase is being attributed to cases in care homes and hospitals accounting for a greater proportion of the total. Last week, the government announced the R rate in London was the lowest in the country.
Fewer than 24 people are now catching coronavirus in the capital, according to figures by Public Health England and Cambridge University.
New modelling statistics suggest London could be coronavirus-free by June after the R rate fell to 0.4, compared to around 2.8 before lockdown.
The UK’s highest rate of infection is in the North East and Yorkshire, at 0.8. It is seeing around 4,320 new infections a day, researchers said.
The death toll in the UK rose by 384 today, bringing the total to 33,998. In the last 24 hours, a further 3,560 people have tested positive for the disease.
Get the news as it happens by following City A.M. on Twitter.
More to follow


cityam--2020-05-15--Coronavirus: 384 more deaths recorded in the UK

The number of coronavirus deaths in the UK has risen by 384 to 33,998 , the Department of Health has said .
The latest death toll counts those who tested positive for coronavirus and died by 5pm on 14 May .
As of 9am this morning , the department said that it had carried out 2,353,078 tests in total , with 236,711 people testing positive .
In the last 24 hours , a further 3,560 people have tested positive for the disease .
Listen to our daily City View podcast as we chart the economic fallout and business impact of @ @ @ @ @ @ @ Health figures include coronavirus deaths in hospitals , care homes and the wider community .
However , the total death toll could be far higher .
On Tuesday , stats from the Office for National Statistics ( ONS ) revealed there have been more than 38,000 coronavirus deaths in the UK up to 1 May .
Read more : Coronavirus : What is the antibody test and how does it work ?
Fatalities from the virus numbered 34,978 on 1 May in England and Wales .
Combined with Scotland and Northern Ireland statistics @ @ @ @ @

Coronavirus: 384 more deaths recorded in the UK
The number of coronavirus deaths in the UK has risen by 384 to 33,998, the Department of Health has said.
The latest death toll counts those who tested positive for coronavirus and died by 5pm on 14 May.
As of 9am this morning, the department said that it had carried out 2,353,078 tests in total, with 236,711 people testing positive.
In the last 24 hours, a further 3,560 people have tested positive for the disease.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The Department for Health figures include coronavirus deaths in hospitals, care homes and the wider community.
However, the total death toll could be far higher.
On Tuesday, stats from the Office for National Statistics (ONS) revealed there have been more than 38,000 coronavirus deaths in the UK up to 1 May.
Fatalities from the virus numbered 34,978 on 1 May in England and Wales. Combined with Scotland and Northern Ireland statistics the total was 38,289.
More to follow.


cityam--2020-05-15--UK approves Abbott's coronavirus antibody test

The UK has given approval to US drugmaker Abbott Laboratories to produce a coronavirus antibody test , Public Health England said today .
Public health authorities had previously given the green light to Switzerland ’ s Roche to make a coronavirus antibody test .
Mass antibody testing is being considered by many countries as a way to help escape from lockdown and to support track-and-trace approaches to containing coronavirus .
Read more : London now counts ‘ just 24 ’ new coronavirus cases per day An antibody test is a blood test that can tell whether somebody has had coronavirus @ @ @ @ @ @ @ Previously , antibody tests have been unreliable .
The UK bought 3.5m finger-prick tests that could not be used because they were inaccurate .
Currently , the UK uses swab testing which can only tell whether someone has the virus at the time of the test .
Mike Clayton , Abbott ’ s managing director for northern Europe diagnostics , said : “ Abbott has been focused on bringing covid-19 tests to market as quickly as possible to help address this pandemic .
“ We are proud to be able to provide our @ @ @ @ @ @ @ understand who has had the virus , leading to greater confidence as we get back to living life .
We are collaborating with the NHS , public health bodies and private laboratories across the UK to enable this test to be used here.
” Abbott said it is significantly scaling up its European manufacturing for antibody testing .
The drugmaker said it was already shipping its antibody test and said it aimed to provide millions of tests across Europe by the end of May .

UK approves Abbott’s coronavirus antibody test
The UK has given approval to US drugmaker Abbott Laboratories to produce a coronavirus antibody test, Public Health England said today.
Public health authorities had previously given the green light to Switzerland’s Roche to make a coronavirus antibody test.
Mass antibody testing is being considered by many countries as a way to help escape from lockdown and to support track-and-trace approaches to containing coronavirus.
An antibody test is a blood test that can tell whether somebody has had coronavirus, even if they have recovered.
Previously, antibody tests have been unreliable. The UK bought 3.5m finger-prick tests that could not be used because they were inaccurate.
Currently, the UK uses swab testing which can only tell whether someone has the virus at the time of the test.
Mike Clayton, Abbott’s managing director for northern Europe diagnostics, said: “Abbott has been focused on bringing covid-19 tests to market as quickly as possible to help address this pandemic.
“We are proud to be able to provide our antibody tests immediately as they will help understand who has had the virus, leading to greater confidence as we get back to living life. We are collaborating with the NHS, public health bodies and private laboratories across the UK to enable this test to be used here.”
Abbott said it is significantly scaling up its European manufacturing for antibody testing.
The drugmaker said it was already shipping its antibody test and said it aimed to provide millions of tests across Europe by the end of May.


cityam--2020-05-15--US retail sales drop at record pace amid coronavirus shutdown

US retail sales plunged at the quickest pace on record for the second month in a row in April , official figures have shown , as coronavirus containment measures caused shops to close and Americans to stay in their homes .
The Commerce Department said sales dropped 16.4 per cent last month compared an 8.3 per cent drop in March , which was itself a record fall .
It was the biggest collapse in sales since at least 1992 when comparable records began .
Read more : UK retail sales suffer record decline as online surge fails to offset impact @ @ @ @ @ @ @ the consumer pullback in April was truly staggering – it speaks to the ferocity of the Covid-19 shock , ” said Lydia Boussour , senior US economist at consultancy Oxford Economics .
The plunge in retail sales will deeply trouble policymakers .
More than 36m Americans have filed new jobless claims since the pandemic began , suggesting that spending power is being seriously eroded .
And global policymakers will be worried too , given that the American consumer is a key driver of the international economy .
Sales at clothing and accessories stores @ @ @ @ @ @ @ they were shut across the country .
Sales at food and drink outlets plunged 49 per cent .
Consumers also spent much less on food and essentials , having stocked up in March .
A rise in online shopping of 22 per cent was not enough to make up for the drop at physical stores .
Retail sales are expected to rise in May after April and March ’ s historic falls as states lift coronavirus restrictions .
Read more : US economy shrinks at fastest pace since financial crisis However , the @ @ @ @ @ @ @ will recover .
Economists fear that residual nervousness about the virus and the staggering surge in unemployment could drag out the recovery .
Michael Pearce , senior US economist at Capital Economics , said : “ Even with lockdowns now easing and spending beginning to rebound , we now think consumption will decline at a 50 per cent annualised pace in the second quarter , worse than the 40 per cent pace we had previously forecast .
”

US retail sales drop at record pace amid coronavirus shutdown
Although US stores are beginning to reopen, social distancing measures could lengthen the recovery
US retail sales plunged at the quickest pace on record for the second month in a row in April, official figures have shown, as coronavirus containment measures caused shops to close and Americans to stay in their homes.
The Commerce Department said sales dropped 16.4 per cent last month compared an 8.3 per cent drop in March, which was itself a record fall. It was the biggest collapse in sales since at least 1992 when comparable records began.
“The magnitude of the consumer pullback in April was truly staggering – it speaks to the ferocity of the Covid-19 shock,” said Lydia Boussour, senior US economist at consultancy Oxford Economics.
The plunge in retail sales will deeply trouble policymakers. More than 36m Americans have filed new jobless claims since the pandemic began, suggesting that spending power is being seriously eroded.
And global policymakers will be worried too, given that the American consumer is a key driver of the international economy.
Sales at clothing and accessories stores fell a monumental 89 per cent as they were shut across the country. Sales at food and drink outlets plunged 49 per cent.
Consumers also spent much less on food and essentials, having stocked up in March.
A rise in online shopping of 22 per cent was not enough to make up for the drop at physical stores.
Retail sales are expected to rise in May after April and March’s historic falls as states lift coronavirus restrictions.
However, the big question is how fast the economy will recover. Economists fear that residual nervousness about the virus and the staggering surge in unemployment could drag out the recovery.
Michael Pearce, senior US economist at Capital Economics, said: “Even with lockdowns now easing and spending beginning to rebound, we now think consumption will decline at a 50 per cent annualised pace in the second quarter, worse than the 40 per cent pace we had previously forecast.”


cityam--2020-05-15--London bar group Enhanced Hospitality claims 650 jobs at risk over insurer's refusal to pay

London bar and restaurant chain Enhanced Hospitality has launched legal action against Allianz , claiming that its failure to pay out under business interruption insurance has put 650 jobs at risk .
Enhanced Hospitality , which owns Camden live music venue Dingwalls and Soho private members club Blacks , has hired law firm Field Fisher to pursue a claim against the insurance giant .
Read more : Insurers accused of not ‘ sharing the pain ’ with businesses during coronavirus pandemic The company , which also owns Shaka Zulu in Camden Market , said Allianz ’ refusal to pay out @ @ @ @ @ @ @ .
All hospitality businesses were forced to close their venues after the government implemented a UK lockdown to slow the spread of coronavirus .
However , there has been confusion over whether firms with business interruption insurance can claim for lost earnings during the shutdown .
Chief executive Roger Payne said : “ Despite Enhanced Hospitality following many other hospitality and restaurant groups in closing our doors to the public at the express instruction of the prime minister and in compliance with the UK government lockdown , our insurance company Allianz is refusing @ @ @ @ @ @ @ interim payment.
” Simon Sloane , partner at Field Fisher , added : “ By refusing to fulfil their contractual obligations in a timely manner , these insurers face legal claims from policyholders like Enhanced Hospitality , not only for recovery of the insurance indemnity but also for significant damages claims for breach of contract.
” City A.M. has contacted Allianz for comment .
Read more : Lloyd ’ s of London expects to pay up to $ 4.3bn in coronavirus insurance claims The Financial Conduct Authority said this month that it is @ @ @ @ @ @ @ some customers to access compensation for disruption during the crisis .
The hospitality insurance group action ( HIGA ) was launched in April to bring claims against insurers that have refused to pay out .
Separately , The Night Time Industries Association , which represents bars and clubs across the UK , has launched legal action against Hiscox over the issue .

London bar group Enhanced Hospitality claims 650 jobs at risk over insurer’s refusal to pay
London bar and restaurant chain Enhanced Hospitality has launched legal action against Allianz, claiming that its failure to pay out under business interruption insurance has put 650 jobs at risk.
Enhanced Hospitality, which owns Camden live music venue Dingwalls and Soho private members club Blacks, has hired law firm Field Fisher to pursue a claim against the insurance giant.
The company, which also owns Shaka Zulu in Camden Market, said Allianz’ refusal to pay out could result in up to 650 redundancies.
All hospitality businesses were forced to close their venues after the government implemented a UK lockdown to slow the spread of coronavirus.
However, there has been confusion over whether firms with business interruption insurance can claim for lost earnings during the shutdown.
Chief executive Roger Payne said: “Despite Enhanced Hospitality following many other hospitality and restaurant groups in closing our doors to the public at the express instruction of the prime minister and in compliance with the UK government lockdown, our insurance company Allianz is refusing to recognise our claim or make an interim payment.”
Simon Sloane, partner at Field Fisher, added: “By refusing to fulfil their contractual obligations in a timely manner, these insurers face legal claims from policyholders like Enhanced Hospitality, not only for recovery of the insurance indemnity but also for significant damages claims for breach of contract.”
City A.M. has contacted Allianz for comment.
The Financial Conduct Authority said this month that it is seeking legal clarity on the inability of some customers to access compensation for disruption during the crisis.
The hospitality insurance group action (HIGA) was launched in April to bring claims against insurers that have refused to pay out.
Separately, The Night Time Industries Association, which represents bars and clubs across the UK, has launched legal action against Hiscox over the issue.


cityam--2020-05-15--Nissan considers moving Renault production to Sunderland plant

Nissan is considering moving the manufacturing of two Renault SUV models from Barcelona to its Sunderland plant , it is reported .
Such a move could secure thousands of British manufacturing jobs at Nissan , which committed £400m in extra funding to the factory in March .
The Japanese car manufacturer is reportedly in talks with its strategic partner Renault to produce the Captur and Kadjar sport-utility vehicles in the UK .
Nissan wants to ramp up production in the north east , the Financial Times reported .
The future of the Sunderland plant has been in doubt since the @ @ @ @ @ @ @ European Union in 2016 .
Without a Brexit trade deal the auto industry faces tariffs of 10 per cent on cars and car parts .
And as recently as October , Nissan ’ s European chairman , Gianluca de Ficchy , warned that the introduction of 10 per cent export tariffs could put its operations “ in jeopardy ” .
But the reported talks signal a commitment to keep the UK ’ s largest car factory running and its 6,000 employees in jobs .
The company has already invested £400m in its UK @ @ @ @ @ @ @ is currently closed due to the Covid-19 pandemic and is set to reopen in June at the earliest .
Other changes made to Nissan ’ s operations as part of the restructuring plans include the shuttering of its Barcelona van plant .
Around 600 jobs have already been shed at the Spanish factory .
Vehicles currently manufactured at its Sunderland plant would be produced in South African factories and Renault ’ s French plant in Maubeuge , the FT reported The restructuring of Nissan ’ s European operations comes as the manufacturer attempts @ @ @ @ @ @ @ been caused by the Covid-19 pandemic .
Up to a fifth of its global production capacity is set to be cut , as plants and showrooms across the world have been forced to close due to lockdown measures .
Meanwhile , Renault has drawn on billions of euros of government-backed loans to keep its operations afloat during the coronavirus crisis .
Read more : Nissan set for first loss since 2008 financial crisis Nissan is set to unveil a three-year plan on 28 May , while Renault is also set to reveal a @ @ @ @ @ @ @ for Nissan told PA : “ We do not comment on speculation .
”

Nissan considers moving Renault production to Sunderland plant
Nissan may shift the manufacturing of two Renault SUV models from Barcelona to its Sunderland plant
Nissan is considering moving the manufacturing of two Renault SUV models from Barcelona to its Sunderland plant, it is reported.
Such a move could secure thousands of British manufacturing jobs at Nissan, which committed £400m in extra funding to the factory in March.
The Japanese car manufacturer is reportedly in talks with its strategic partner Renault to produce the Captur and Kadjar sport-utility vehicles in the UK.
Nissan wants to ramp up production in the north east, the Financial Times reported.
The future of the Sunderland plant has been in doubt since the UK’s vote to leave the European Union in 2016. Without a Brexit trade deal the auto industry faces tariffs of 10 per cent on cars and car parts.
And as recently as October, Nissan’s European chairman, Gianluca de Ficchy, warned that the introduction of 10 per cent export tariffs could put its operations “in jeopardy”.
But the reported talks signal a commitment to keep the UK’s largest car factory running and its 6,000 employees in jobs. The company has already invested £400m in its UK operations this year.
The Sunderland site is currently closed due to the Covid-19 pandemic and is set to reopen in June at the earliest.
Other changes made to Nissan’s operations as part of the restructuring plans include the shuttering of its Barcelona van plant. Around 600 jobs have already been shed at the Spanish factory.
Vehicles currently manufactured at its Sunderland plant would be produced in South African factories and Renault’s French plant in Maubeuge, the FT reported
The restructuring of Nissan’s European operations comes as the manufacturer attempts to mitigate the profit drain that has been caused by the Covid-19 pandemic.
Up to a fifth of its global production capacity is set to be cut, as plants and showrooms across the world have been forced to close due to lockdown measures.
Meanwhile, Renault has drawn on billions of euros of government-backed loans to keep its operations afloat during the coronavirus crisis.
Nissan is set to unveil a three-year plan on 28 May, while Renault is also set to reveal a cost-cutting plan this month.
A spokesman for Nissan told PA: “We do not comment on speculation.”


cityam--2020-05-16--HS2: MPs say controversial rail project 'badly off course'

MPs have slammed the controversial HS2 rail project , saying that the scheme is “ badly off course ” and calling for far greater transparency from its executives .
In a new report , the Public Accounts Committee criticised the body for failing to provide an accurate picture of the project ’ s health when providing evidence to the committee .
Read more : HS2 : Top civil servant admits to withholding information on cost blow out It also said it was concerned by the “ huge uncertainty ” surrounding the design and delivery of Euston station , the rail @ @ @ @ @ @ @ , Whitehall ’ s top transport civil servant admitted to withholding information that showed HS2 would go over budget .
Bernadette Kelly , the permanent secretary of the Department for Transport , said that she had been “ careful ” in her remarks about the project ’ s budget at previous meetings .
Today ’ s PAC report finds that even though both HS2 Limited and the department were aware of the project ’ s cost and schedule overruns as early as October 2018 , Kelly had failed to make this clear to @ @ @ @ @ @ @ In both October 2018 and March 2019 , the report says , Kelly did not make the problems clear , even when asked specific questions on the issues .
Committee chair Meg Hillier said that there was “ no excuse for hiding the nature and extent of the problems the project was facing from Parliament and the taxpayer ” .
She added : “ The Committee is concerned about how open the Department and HS2 Ltd executives have been in their account of this project .
Listen to our daily City View podcast @ @ @ @ @ @ @ business impact of the coronavirus pandemic .
“ It is massively over budget and delayed before work has even begun ” .
In evidence hearings , DfT and HS2 said they had not disclosed the issues because of commercial sensitivities and ongoing efforts to remedy the situation .
Deputy chair Sir Geoffrey Clinton-Brown described Kelly ’ s failures to inform the committee as a “ serious breach ” of the department ’ s duty which had undermined public confidence in the project .
In its recommendations , the PAC said the department should @ @ @ @ @ @ @ keep Parliament informed of the project ’ s progress in its six-monthly reports .
At Euston , where HS2 will link with existing mainline rail services , the underground , and Crossrail , plans for the station design are currently being revised .
The committee said that it need “ clarity ” over the development , saying that it is a “ risky element ” in the whole project due to its urban environment and position on an active railway .
In February , HS2 was given the green light by Prime Minister @ @ @ @ @ @ @ that the cost could balloon to over £100bn .
The decision was supposed to be taken before December ’ s general election , but had been pushed back for fear of upsetting voters .

HS2: MPs say controversial rail project ‘badly off course’
The new lawsuit comes just days after HS2 said it had reached a settlement with another bidder over the train building contract.
MPs have slammed the controversial HS2 rail project, saying that the scheme is “badly off course” and calling for far greater transparency from its executives.
In a new report, the Public Accounts Committee criticised the body for failing to provide an accurate picture of the project’s health when providing evidence to the committee.
It also said it was concerned by the “huge uncertainty” surrounding the design and delivery of Euston station, the rail link’s terminus.
In March, Whitehall’s top transport civil servant admitted to withholding information that showed HS2 would go over budget.
Bernadette Kelly, the permanent secretary of the Department for Transport, said that she had been “careful” in her remarks about the project’s budget at previous meetings.
Today’s PAC report finds that even though both HS2 Limited and the department were aware of the project’s cost and schedule overruns as early as October 2018, Kelly had failed to make this clear to the committee at two previous appearances.
In both October 2018 and March 2019, the report says, Kelly did not make the problems clear, even when asked specific questions on the issues.
Committee chair Meg Hillier said that there was “no excuse for hiding the nature and extent of the problems the project was facing from Parliament and the taxpayer”.
She added: “The Committee is concerned about how open the Department and HS2 Ltd executives have been in their account of this project.
“It is massively over budget and delayed before work has even begun”.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
In evidence hearings, DfT and HS2 said they had not disclosed the issues because of commercial sensitivities and ongoing efforts to remedy the situation.
Deputy chair Sir Geoffrey Clinton-Brown described Kelly’s failures to inform the committee as a “serious breach” of the department’s duty which had undermined public confidence in the project.
In its recommendations, the PAC said the department should set out in writing how it will keep Parliament informed of the project’s progress in its six-monthly reports.
At Euston, where HS2 will link with existing mainline rail services, the underground, and Crossrail, plans for the station design are currently being revised.
The committee said that it need “clarity” over the development, saying that it is a “risky element” in the whole project due to its urban environment and position on an active railway.
A spokesperson for the DfT said there had been a “comprehensive reset” of the programme, with a revised budget and funding regime:
They added that “significant reforms” would “ensure the project is delivered in a more disciplined and transparent manner”:
“This includes appointing the first dedicated HS2 Minister, bi-annual updates to Parliament and establishing a monthly Ministerial Task Force, chaired by the Secretary of State, to ensure the project has a rigorous scrutiny like the 2012 Olympics.”
In February, HS2 was given the green light by Prime Minister Boris Johnson, despite a review finding that the cost could balloon to over £100bn.
The decision was supposed to be taken before December’s general election, but had been pushed back for fear of upsetting voters.


cityam--2020-05-17--OBR chief rules out post-crisis 'v-shaped' economic recovery for UK

The head of the government ’ s independent budget watch dog has said a quick , “ v-shaped ” economic recovery is very unlikely for the UK as it comes out of the Covid-19 lockdown .
The Office for Budget Responsibility ( OBR ) director Robert Chote said today that people should “ expect a slower recovery than the v-shaped ” recovery first predicted by some and that the economy may face “ permanent scarring ” as a result of Covid-19 .
Read more : Coronavirus sends Eurozone economy to worst quarter on record The OBR predicts the second quarter @ @ @ @ @ @ @ see a 35 per cent drop in UK GDP this year .
The watchdog also modelled at the time a scenario in which the economy is able to bounce back quickly as the social distancing restrictions are lifted .
However , the idea that the economy will see a v-shaped comeback is now beginning to be widely doubted .
Last week , there was talk among some economists that the government ’ s furlough scheme was hiding how many businesses had really gone bust over the past two months and that mass lay @ @ @ @ @ @ @ .
Chote said the prospect of permanent damage to the economy is a very real one and that it was unlikely for many sectors , such as hospitality , to go back to trading as they were pre-crisis .
“ I think you ’ re likely not going to see the economy bouncing back to where we expected it otherwise to be by the end of the year…but instead a rather slower recovery , ” he said .
Listen to our daily City View podcast as we chart the economic fallout and business @ @ @ @ @ @ @ The key worry is if you have , not just a very sharp downturn in the economy , but one that scars its future potential .
“ When we talk about scarring , we ’ re talking about whether the short-term hit to the economy has permanent or at least very long-lasting consequences.
” Treasury analysis revealed by the Telegraph last week showed the government ’ s budget deficit would likely rise to at least £300bn this year – a sixfold increase from first projected .
However , Chote said the result of @ @ @ @ @ @ @ not necessarily be another round of austerity like after the 2008 financial crisis .
“ The fact that the level of debt goes up on its own doesn ’ t necessarily mean you have to have the austerity that followed the financial crisis , ” he said .
“ Much more important to that is if you have the effect of scarring on the economy – if the economy is smaller you get permanently less tax revenue for example .
Read more : When will the UK economy recover from coronavirus ?
“ @ @ @ @ @ @ @ a bigger debt interest bill ?
Do we want to spend a higher proportion of national income on social and health care ?
” Prime Minister Boris Johnson has already categorically denied the government would pursue a round of austerity in the future to cut the deficit .

OBR chief rules out post-crisis ‘v-shaped’ economic recovery for UK
Several banks have upped their support for the UK’s small and medium enterprises (SMEs) since the pandemic began in the late months of 2019.
The head of the government’s independent budget watch dog has said a quick, “v-shaped” economic recovery is very unlikely for the UK as it comes out of the Covid-19 lockdown.
The Office for Budget Responsibility (OBR) director Robert Chote said today that people should “expect a slower recovery than the v-shaped” recovery first predicted by some and that the economy may face “permanent scarring” as a result of Covid-19.
The OBR predicts the second quarter, between April and June, will see a 35 per cent drop in UK GDP this year.
The watchdog also modelled at the time a scenario in which the economy is able to bounce back quickly as the social distancing restrictions are lifted.
However, the idea that the economy will see a v-shaped comeback is now beginning to be widely doubted.
Last week, there was talk among some economists that the government’s furlough scheme was hiding how many businesses had really gone bust over the past two months and that mass lay offs will ensue when the scheme ends.
Chote said the prospect of permanent damage to the economy is a very real one and that it was unlikely for many sectors, such as hospitality, to go back to trading as they were pre-crisis.
“I think you’re likely not going to see the economy bouncing back to where we expected it otherwise to be by the end of the year…but instead a rather slower recovery,” he said.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
“The key worry is if you have, not just a very sharp downturn in the economy, but one that scars its future potential.
“When we talk about scarring, we’re talking about whether the short-term hit to the economy has permanent or at least very long-lasting consequences.”
Treasury analysis revealed by the Telegraph last week showed the government’s budget deficit would likely rise to at least £300bn this year – a sixfold increase from first projected.
However, Chote said the result of a bulging deficit and greater debt would not necessarily be another round of austerity like after the 2008 financial crisis.
“The fact that the level of debt goes up on its own doesn’t necessarily mean you have to have the austerity that followed the financial crisis,” he said.
“Much more important to that is if you have the effect of scarring on the economy – if the economy is smaller you get permanently less tax revenue for example.
“Do we come out of this with a bigger debt interest bill? Do we want to spend a higher proportion of national income on social and health care?”
Prime Minister Boris Johnson has already categorically denied the government would pursue a round of austerity in the future to cut the deficit.


cityam--2020-05-17--Former LSE boss Rolet joins Shore Capital as non-exec chairman

The former boss of the London Stock Exchange Xavier Rolet has joined brokerage firm Shore Capital as the chairman of its capital markets business .
In his decade at the head of London ’ s bourse , Rolet transformed the LSE into one of the world ’ s largest indices by market capitalization .
Read more : Treasury mulling plans for ‘ bad bank ’ to manage stakes in bailed-out firms When he joined , its valuation stood at £800m , a figure that had grown to £14bn by his departure in 2017 .
Rolet is expected to help grow @ @ @ @ @ @ @ from the London stock market last November due to the cost .
A winemaker in his spare time , Rolet has also held chief executiveships at at hedge fund CQS and Lehman Brothers in Paris , as well as roles at Goldman Sachs and CS First Boston .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
He is also the non-executive chairman of Phosagro and a director of Saudi Arabia ’ s premier stock exchange Tadawul .
Shore Capital founder @ @ @ @ @ @ @ Capital continues to grow , we are delighted Xavier is joining us to chair our Capital Markets business .
“ Xavier has an impeccable business track record , and his insights and guidance will be invaluable as we look to best position ourselves following the market disruption associated with Covid-19 .
Read more : Heathrow Airport to begin temperature screening trial this week Rolet said : “ I have long admired Shore Capital for the professional and personalised service it offers its clients .
“ The fact that the Group ’ s management @ @ @ @ @ @ @ , ensures a strong commitment to their clients ’ success .
”

Former LSE boss Rolet joins Shore Capital as non-exec chairman
Xavier Rolet, the former chief executive of the London Stock Exchange, has called on the government to consider the benefits of SPACs in the City.
The former boss of the London Stock Exchange Xavier Rolet has joined brokerage firm Shore Capital as the chairman of its capital markets business.
In his decade at the head of London’s bourse, Rolet transformed the LSE into one of the world’s largest indices by market capitalization.
When he joined, its valuation stood at £800m, a figure that had grown to £14bn by his departure in 2017.
Rolet is expected to help grow Shore Capital after the investment group delisted from the London stock market last November due to the cost.
A winemaker in his spare time, Rolet has also held chief executiveships at at hedge fund CQS and Lehman Brothers in Paris, as well as roles at Goldman Sachs and CS First Boston.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
He is also the non-executive chairman of Phosagro and a director of Saudi Arabia’s premier stock exchange Tadawul.
Shore Capital founder Howard Shore said: “As Shore Capital continues to grow, we are delighted Xavier is joining us to chair our Capital Markets business.
“Xavier has an impeccable business track record, and his insights and guidance will be invaluable as we look to best position ourselves following the market disruption associated with Covid-19.
Rolet said: “I have long admired Shore Capital for the professional and personalised service it offers its clients.
“The fact that the Group’s management own a significant proportion of the business, ensures a strong commitment to their clients’ success.”


cityam--2020-05-17--HS2: MPs say controversial rail project 'badly off course'

MPs have slammed the controversial HS2 rail project , saying that the scheme is “ badly off course ” and calling for far greater transparency from its executives .
In a new report , the Public Accounts Committee criticised the body for failing to provide an accurate picture of the project ’ s health when providing evidence to the committee .
Read more : HS2 : Top civil servant admits to withholding information on cost blow out It also said it was concerned by the “ huge uncertainty ” surrounding the design and delivery of Euston station , the rail @ @ @ @ @ @ @ , Whitehall ’ s top transport civil servant admitted to withholding information that showed HS2 would go over budget .
Bernadette Kelly , the permanent secretary of the Department for Transport , said that she had been “ careful ” in her remarks about the project ’ s budget at previous meetings .
Today ’ s PAC report finds that even though both HS2 Limited and the department were aware of the project ’ s cost and schedule overruns as early as October 2018 , Kelly had failed to make this clear to @ @ @ @ @ @ @ In both October 2018 and March 2019 , the report says , Kelly did not make the problems clear , even when asked specific questions on the issues .
Committee chair Meg Hillier said that there was “ no excuse for hiding the nature and extent of the problems the project was facing from Parliament and the taxpayer ” .
She added : “ The Committee is concerned about how open the Department and HS2 Ltd executives have been in their account of this project .
“ It is massively over budget and @ @ @ @ @ @ @ .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
In evidence hearings , DfT and HS2 said they had not disclosed the issues because of commercial sensitivities and ongoing efforts to remedy the situation .
Deputy chair Sir Geoffrey Clinton-Brown described Kelly ’ s failures to inform the committee as a “ serious breach ” of the department ’ s duty which had undermined public confidence in the project .
In its recommendations , the PAC said the department should @ @ @ @ @ @ @ keep Parliament informed of the project ’ s progress in its six-monthly reports .
At Euston , where HS2 will link with existing mainline rail services , the underground , and Crossrail , plans for the station design are currently being revised .
The committee said that it need “ clarity ” over the development , saying that it is a “ risky element ” in the whole project due to its urban environment and position on an active railway .
A spokesperson for the DfT said there had been a “ comprehensive @ @ @ @ @ @ @ a revised budget and funding regime : They added that “ significant reforms ” would “ ensure the project is delivered in a more disciplined and transparent manner ” : “ This includes appointing the first dedicated HS2 Minister , bi-annual updates to Parliament and establishing a monthly Ministerial Task Force , chaired by the Secretary of State , to ensure the project has a rigorous scrutiny like the 2012 Olympics.
” In February , HS2 was given the green light by Prime Minister Boris Johnson , despite a review finding that the @ @ @ @ @ @ @ The decision was supposed to be taken before December ’ s general election , but had been pushed back for fear of upsetting voters .


cityam--2020-05-17--Treasury mulling plans for 'bad bank' to manage stakes in bailed-out firms

The Treasury is considering plans to develop a so-called “ bad bank ” in order to hold stake in bailed out companies , the Sunday Times reported , amid fears that key firms could fail due to the coronavirus pandemic .
The initiative reflects similar steps taken by the Labour party during the 2008 financial crisis , when it set up UK Financial Instruments to manage the mortgage books of failed banks like Northern Rock .
Read more : British startups call on Treasury to change terms of Future Fund The plan is being led by UK Government Investments , @ @ @ @ @ @ @ stake in Natwest .
Possibilities for the emergency measures include an “ asset resolution ” scheme to return value to the taxpayer , and a sovereign wealth fund , the Sunday Times said .
Thus far , struggling companies have been able to drawn down billions in commercial paper and other loans through the Bank of England and high street banks , but ministers are said to be afraid that the measures will not be enough to protect some critical UK firms .
Listen to our daily City View podcast as we chart @ @ @ @ @ @ @ the coronavirus pandemic .
If the recovery from the crisis ends up taking longer than hoped , the state could become the lender of last resort and provide companies with debt which could be swapped for equity at a later point .
Some key firms , such as Tata Steel or Jaguar Land Rover , do not qualify for existing state loan schemes due to their size , and are running out of other funding options .
Last month it was reported that the former firm needed £500m for its steel works at @ @ @ @ @ @ @ Kinnock calling on chancellor Rishi Sunak to lift the emergency lending cap for larger businesses .
Read more : Treasury Committee calls on banks to provide daily updates on coronavirus business interruption loan scheme lending In return for rescue cash , sources said that the government could ask for preferential shares in such companies , as well as high interest rates .
City A.M. has contacted the Treasury for comment .

Treasury mulling plans for ‘bad bank’ to manage stakes in bailed-out firms
The appointment will have been signed off by chancellor Rishi Sunak.
The Treasury is considering plans to develop a so-called “bad bank” in order to hold stake in bailed out companies, the Sunday Times reported, amid fears that key firms could fail due to the coronavirus pandemic.
The initiative reflects similar steps taken by the Labour party during the 2008 financial crisis, when it set up UK Financial Instruments to manage the mortgage books of failed banks like Northern Rock.
The plan is being led by UK Government Investments, which currently manages the government’s stake in Natwest.
Possibilities for the emergency measures include an “asset resolution” scheme to return value to the taxpayer, and a sovereign wealth fund, the Sunday Times said.
Thus far, struggling companies have been able to drawn down billions in commercial paper and other loans through the Bank of England and high street banks, but ministers are said to be afraid that the measures will not be enough to protect some critical UK firms.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
If the recovery from the crisis ends up taking longer than hoped, the state could become the lender of last resort and provide companies with debt which could be swapped for equity at a later point.
Some key firms, such as Tata Steel or Jaguar Land Rover, do not qualify for existing state loan schemes due to their size, and are running out of other funding options.
Last month it was reported that the former firm needed £500m for its steel works at Port Talbot, with local MP Stephen Kinnock calling on chancellor Rishi Sunak to lift the emergency lending cap for larger businesses.
In return for rescue cash, sources said that the government could ask for preferential shares in such companies, as well as high interest rates.
City A.M. has contacted the Treasury for comment.


cityam--2020-05-17--Heathrow Airport to begin temperature screening trial this week

Passengers arriving at Heathrow Airport ’ s terminal two will from Thursday be screened to see if they have high temperatures in an attempt to identify whether they have coronavirus .
The airport will implement thermal screening technology in the immigration area , which will automatically scan anyone passing through the terminal .
Read more : Virgin Atlantic won ’ t fly until August under proposed quarantine measures – report Later , it will also begin to use UV sanitation technology to sanitise security trays and scanning equipment in the security areas of the airport .
The results of the @ @ @ @ @ @ @ government , in the hope the findings will help establish a new set of international standards for air travel .
Speaking to Sky News , chief executive John Holland-Kaye said the measures could be “ key to minimising transmission of Covid-19 across borders ” .
It is hoped that if the trials prove successful the government will not have to put in place the blanket 14-day quarantine on incoming passengers proposed last weekend .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus @ @ @ @ @ @ @ Minister Boris Johnson announced a week ago , were met with dismay from the airline industry , which said they would crush demand in a sector that has already been battered by coronavirus .
On Friday it was reported that should the plan be rolled out , Virgin Atlantic would not be able to fly again until August , while earlier the week IAG chief executive Willie Walsh said the measures would disrupt British Airways ’ plans to ramp up service levels in July .
At one point , the plans had exemptions @ @ @ @ @ @ @ these measures have subsequently been rolled back .
Read more : Heathrow calls for border reopening plan as passenger numbers fall 97 per cent Instead of a blanket quarantine approach , the aviation industry is pushing for government to implement “ travel bubbles ” between countries and cities that are low-risk .
Similar measures have already been implemented across the EU , where for example the Baltic states Latvia , Lithuania and Estonia have opened borders to each other .

Heathrow Airport to begin temperature screening trial this week
Passengers arriving at Heathrow Airport’s terminal two will from Thursday be screened to see if they have high temperatures in an attempt to identify whether they have coronavirus.
The airport will implement thermal screening technology in the immigration area, which will automatically scan anyone passing through the terminal.
Later, it will also begin to use UV sanitation technology to sanitise security trays and scanning equipment in the security areas of the airport.
The results of the trial will be fed back to the government, in the hope the findings will help establish a new set of international standards for air travel.
Speaking to Sky News, chief executive John Holland-Kaye said the measures could be “key to minimising transmission of Covid-19 across borders”.
It is hoped that if the trials prove successful the government will not have to put in place the blanket 14-day quarantine on incoming passengers proposed last weekend.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The measures, which Prime Minister Boris Johnson announced a week ago, were met with dismay from the airline industry, which said they would crush demand in a sector that has already been battered by coronavirus.
On Friday it was reported that should the plan be rolled out, Virgin Atlantic would not be able to fly again until August, while earlier the week IAG chief executive Willie Walsh said the measures would disrupt British Airways’ plans to ramp up service levels in July.
At one point, the plans had exemptions for passengers coming from France, but these measures have subsequently been rolled back.
Instead of a blanket quarantine approach, the aviation industry is pushing for government to implement “travel bubbles” between countries and cities that are low-risk.
Similar measures have already been implemented across the EU, where for example the Baltic states Latvia, Lithuania and Estonia have opened borders to each other.


cityam--2020-05-17--Michael Gove says 17,000 recruited to administer coronavirus tracing app

Seventeen-thousand people have been recruited to administer the government ’ s coronavirus tracing programme , with the rollout of the app expected by the end of the month .
Cabinet Office minister Michael Gove said today that 17,000 of the 18,000 required contract tracers had been hired and that Britons across the country will be able to download the app in less than two weeks .
Read more : Coronavirus : Contact-tracing app to launch in mid-May The coronavirus test , track and trace app was unveiled for testing on the Isle of Wight earlier this month .
Users can @ @ @ @ @ @ @ symptoms , with the app then alerting people who have had close contact with the person displaying symptoms .
Covid-19 tests can then be administered as necessary .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
The app is thought to be one of the UK ’ s strongest weapons in avoiding a second peak as the coronavirus lockdown is eased .
Speaking to Sky News today , Gove said : “ I have to praise the work of health @ @ @ @ @ @ @ past , people have seen Matt and the government set ambitious targets and they said , ‘ oh , the target on testing that won ’ t be met ’ , but Matt met the target .
“ Seventeen-thousand people have been recruited for contact tracing , it ’ s more evidence we have in Matt – an energetic and determined health secretary who is throwing everything into the fight against the virus and making sure we mobilise a united national effort.
” Read more : Coronavirus ‘ R ’ rate as high @ @ @ @ @ @ @ app has been developed by NHSX , the technology , digital and data arm of the health service .
The government has said at least 60 per cent of people need to download the app for it to be effective .

Michael Gove says 17,000 recruited to administer coronavirus tracing app
A temporary Covid-19 testing site run by the armed services at High Wycombe ParK
Seventeen-thousand people have been recruited to administer the government’s coronavirus tracing programme, with the rollout of the app expected by the end of the month.
Cabinet Office minister Michael Gove said today that 17,000 of the 18,000 required contract tracers had been hired and that Britons across the country will be able to download the app in less than two weeks.
The coronavirus test, track and trace app was unveiled for testing on the Isle of Wight earlier this month.
Users can tell the app if they have coronavirus symptoms, with the app then alerting people who have had close contact with the person displaying symptoms.
Covid-19 tests can then be administered as necessary.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The app is thought to be one of the UK’s strongest weapons in avoiding a second peak as the coronavirus lockdown is eased.
Speaking to Sky News today, Gove said: “I have to praise the work of health secretary Matt Hancock.
“In the past, people have seen Matt and the government set ambitious targets and they said, ‘oh, the target on testing that won’t be met’, but Matt met the target.
“Seventeen-thousand people have been recruited for contact tracing, it’s more evidence we have in Matt – an energetic and determined health secretary who is throwing everything into the fight against the virus and making sure we mobilise a united national effort.”
The coronavirus app has been developed by NHSX, the technology, digital and data arm of the health service.
The government has said at least 60 per cent of people need to download the app for it to be effective.


cityam--2020-05-17--HS2: New controllers needed on the nation's biggest train set

Only last month , Boris Johnson gave HS2 the official green light .
But , despite HS2 Ltd being headed up by at least 47 staff paid more than the PM , the project is already coming off the rails .
Today ’ s report from the Public Accounts Committee ( PAC ) highlights that HS2 has gone “ badly off course ” and costs are spiralling out of control .
This is just the latest in a series of damning reports into Europe ’ s largest infrastructure project , which reveals a complete disregard for accountability over taxpayers ’ @ @ @ @ @ @ @ project is in serious doubt , having received seven Amber/Red warnings in a row since 2013 from the Infrastructure Projects Authority .
Yet chief executive Mark Thurston , who receives a salary in excess of £600,000 per year , was found to have failed “ to give an accurate account of the programme ’ s problems ” .
No wonder PAC are not convinced that the “ Department [ for Transport ] and HS2 Ltd have the skills and capability they need now or in the future.
” Since day one the project @ @ @ @ @ @ @ were sold on the line running 18 trains per hour ( tph ) at speeds of up to 400 kilometres per hour ( km/h ) .
Now , at best we will get 14 tph and speeds of 360 km/h will only be possible on 60 per cent of the route .
Even now , the PAC report lays out the “ huge uncertainty ” surrounding the upgrade of Euston station .
The promised benefits are disappearing .
Then there ’ s the cost .
As the report acknowledges , a “ lack @ @ @ @ @ @ @ .
It points the finger squarely at the Permanent Secretary for failing to provide a “ clear warning that the programme was going off-course and value for money was at risk ” .
No surprise though , as those in charge have always been reluctant to come clean about the true costs .
We ’ ve come a long way since Lord Adonis set the price tag at £28 billion .
The Adam Smith Institute and infrastructure specialist Michael Byng now calculate the figure at £113 billion ( including rolling stock ) .
@ @ @ @ @ @ @ 0.78 , that would see 22p in every £1 spent wasted .
This prediction is looking increasingly certain .
The current crisis will likely lead to some major changes in the way we work .
Businesses have found that they can operate remotely and some large firms are questioning if they need expensive real estate in major cities .
The arguments about increased rail capacity and city connectivity are going out of the window .
And , as the PAC rightly points out , the construction challenges of HS2 could have implications for @ @ @ @ @ @ @ Far better surely to concentrate on superfast broadband and fixing existing transport infrastructure , which people urgently need .
Given the woeful performance of HS2 Ltd , the final bill could be in excess of £150 billion .
The government should have used the crisis as an opportunity to slam on the brakes , but instead steamed ahead , promising to get a grip .
The PAC remained unconvinced they are doing what is required to improve management of infrastructure projects .
As our own research has shown , project managers who fail @ @ @ @ @ @ @ will only increase the risk and amount of cost overruns .
An analysis of megaprojects , mainly in Europe and North America , showed that rail projects see costs escalate by an average of 45 per cent .
To avoid this mega bill coming down the tracks , the HS2 minister Andrew Stephenson must act .
Mark Thurston and the rest of the HS2 gravy train should be subject to proper scrutiny , and if their answers don ’ t stack up , they should be handed their P45s .

HS2: New controllers needed on the nation’s biggest train set
Only last month, Boris Johnson gave HS2 the official green light. But, despite HS2 Ltd being headed up by at least 47 staff paid more than the PM, the project is already coming off the rails.
Today’s report from the Public Accounts Committee (PAC) highlights that HS2 has gone “badly off course” and costs are spiralling out of control. This is just the latest in a series of damning reports into Europe’s largest infrastructure project, which reveals a complete disregard for accountability over taxpayers’ money.
Read more: HS2 project slammed by MPs’ audit committee
The successful delivery of the project is in serious doubt, having received seven Amber/Red warnings in a row since 2013 from the Infrastructure Projects Authority. Yet chief executive Mark Thurston, who receives a salary in excess of £600,000 per year, was found to have failed “to give an accurate account of the programme’s problems”. No wonder PAC are not convinced that the “Department [for Transport] and HS2 Ltd have the skills and capability they need now or in the future.”
Since day one the project has over-promised and under-delivered. The public were sold on the line running 18 trains per hour (tph) at speeds of up to 400 kilometres per hour (km/h). Now, at best we will get 14 tph and speeds of 360 km/h will only be possible on 60 per cent of the route. Even now, the PAC report lays out the “huge uncertainty” surrounding the upgrade of Euston station. The promised benefits are disappearing.
Then there’s the cost. As the report acknowledges, a “lack of transparency has undermined public confidence”. It points the finger squarely at the Permanent Secretary for failing to provide a “clear warning that the programme was going off-course and value for money was at risk”. No surprise though, as those in charge have always been reluctant to come clean about the true costs. We’ve come a long way since Lord Adonis set the price tag at £28 billion. The Adam Smith Institute and infrastructure specialist Michael Byng now calculate the figure at £113 billion (including rolling stock). With the benefit-cost ratio at a measly 0.78, that would see 22p in every £1 spent wasted.
This prediction is looking increasingly certain. The current crisis will likely lead to some major changes in the way we work. Businesses have found that they can operate remotely and some large firms are questioning if they need expensive real estate in major cities. The arguments about increased rail capacity and city connectivity are going out of the window. And, as the PAC rightly points out, the construction challenges of HS2 could have implications for the wider rail network and passengers. Far better surely to concentrate on superfast broadband and fixing existing transport infrastructure, which people urgently need.
Given the woeful performance of HS2 Ltd, the final bill could be in excess of £150 billion. The government should have used the crisis as an opportunity to slam on the brakes, but instead steamed ahead, promising to get a grip. The PAC remained unconvinced they are doing what is required to improve management of infrastructure projects. As our own research has shown, project managers who fail to acknowledge the scale of the problem will only increase the risk and amount of cost overruns. An analysis of megaprojects, mainly in Europe and North America, showed that rail projects see costs escalate by an average of 45 per cent.
To avoid this mega bill coming down the tracks, the HS2 minister Andrew Stephenson must act. Mark Thurston and the rest of the HS2 gravy train should be subject to proper scrutiny, and if their answers don’t stack up, they should be handed their P45s.


cityam--2020-05-17--Office Politics: What does the workplace of the future look like?

There are plenty of people – including Barclays boss Jes Staley – who believe that big offices may be a thing of the past , now we ’ ve all got over our work-from-home hang-ups .
But while the shift from the workplace to the home has been clear to see , less obvious is what the broader and longer-term impact of the pandemic will be .
But there are a few trends emerging that give us an idea .
1 .
The importance of location will be diminished , especially London and commuter towns As Staley highlighted , organisations @ @ @ @ @ @ @ offices that facilitate shorter commutes to support connected but remote working .
Demonstrating the ability to work in a remote but connected fashion will become a key trait those responsible for hiring will look for .
Decisions about where to live will be driven by quality of life rather than proximity to London .
A third of a million people moved out of London last year , and the pandemic will drive this further , leading to new emerging ‘ start up cities or towns ’ that have access to nature – coastal @ @ @ @ @ @ @ The pandemic has proven a large majority of office workers can work anywhere .
This will lead to a talent boomerang – where people relocate to parts of the country to be near friends and family as well as access to better healthcare , education and leisure opportunities .
Whilst physical and mental wellbeing was already rising up the agenda of many organisations , the pandemic quite rightly places health and wellbeing as individuals above any other concern .
We should start with two key questions – do we need to be in @ @ @ @ @ @ @ how do we occupy them safely ?
The pandemic has changed the oft-held view that if you are not in the office you are not working , as the vast majority of office-based businesses seem to be functioning perfectly well remotely .
However , we are social animals that thrive on interaction .
The focus of how we occupy office spaces must therefore shift from desks to activities .
Coming into the office to collaborate , problem-solve or focus on specific projects will become the new normal .
The quality of the office @ @ @ @ @ @ @ fewer lifts and wider stairs for better air circulation , digital reception areas and more outside space .
3 .
A business will be measured by its culture and flexibility , rather than its financial value The crisis has , and will continue , to expose organisations with fragile infrastructure , poor leadership and narrow sector focus .
Working in a remote but connected way requires trust , a shared sense of purpose , commitment and resolve .
It exposes those who feel less engaged and requires exceptional leadership and management skills to @ @ @ @ @ @ @ more easily dealt with when we are together .
Communication skills become critical for example , but more importantly , understanding how to adapt methods of communication to suit different individuals .
Overall , assessing the success or strength of a business from an investment perspective or even from a risk point of view will focus far more on its culture , structure and flexibility than a cold hard assessment of operating income or strength of pipeline .
4 .
Remote working will change our homes just as much as offices Remote working @ @ @ @ @ @ @ .
For too long , space standards have been under threat in the housing sector – smaller houses , poor storage , reduced outside space , and tiny home office space as a token gesture of ticking a box rather than being carefully considered in the broader context of facilitating new ways of working .
An inevitable impact of a significant shift towards home working will be to cause homebuyers to think much more carefully about what a home might be like to spend far more time in .
Is there storage space @ @ @ @ @ @ @ be converted into a home office , is there access to outside space , is the mobile signal good and is there a fast broadband connection ?
We have a duty as designers and policy makers to think about the long-term impact of these trends , and build in space and facilities to enable those who can and want to work from home , to do so safely , effectively and in comfort .

Office Politics: What does the workplace of the future look like?
There are plenty of people – including Barclays boss Jes Staley – who believe that big offices may be a thing of the past, now we’ve all got over our work-from-home hang-ups. But while the shift from the workplace to the home has been clear to see, less obvious is what the broader and longer-term impact of the pandemic will be. But there are a few trends emerging that give us an idea.
1. The importance of location will be diminished, especially London and commuter towns
As Staley highlighted, organisations will favour smaller, more localised cluster offices that facilitate shorter commutes to support connected but remote working.
Demonstrating the ability to work in a remote but connected fashion will become a key trait those responsible for hiring will look for.
Decisions about where to live will be driven by quality of life rather than proximity to London. A third of a million people moved out of London last year, and the pandemic will drive this further, leading to new emerging ‘start up cities or towns’ that have access to nature – coastal or national parks on their doorstep. The pandemic has proven a large majority of office workers can work anywhere. This will lead to a talent boomerang – where people relocate to parts of the country to be near friends and family as well as access to better healthcare, education and leisure opportunities.
2. A greater priority on safety, health and wellbeing
Whilst physical and mental wellbeing was already rising up the agenda of many organisations, the pandemic quite rightly places health and wellbeing as individuals above any other concern.
We should start with two key questions – do we need to be in an office, and if so, how do we occupy them safely? The pandemic has changed the oft-held view that if you are not in the office you are not working, as the vast majority of office-based businesses seem to be functioning perfectly well remotely.
However, we are social animals that thrive on interaction. The focus of how we occupy office spaces must therefore shift from desks to activities. Coming into the office to collaborate, problem-solve or focus on specific projects will become the new normal.
The quality of the office environment will also change, such as fewer lifts and wider stairs for better air circulation, digital reception areas and more outside space.
3. A business will be measured by its culture and flexibility, rather than its financial value
The crisis has, and will continue, to expose organisations with fragile infrastructure, poor leadership and narrow sector focus. Working in a remote but connected way requires trust, a shared sense of purpose, commitment and resolve. It exposes those who feel less engaged and requires exceptional leadership and management skills to overcome some of those challenges that are more easily dealt with when we are together. Communication skills become critical for example, but more importantly, understanding how to adapt methods of communication to suit different individuals.
Overall, assessing the success or strength of a business from an investment perspective or even from a risk point of view will focus far more on its culture, structure and flexibility than a cold hard assessment of operating income or strength of pipeline.
4. Remote working will change our homes just as much as offices
Remote working will also have an impact on homes. For too long, space standards have been under threat in the housing sector – smaller houses, poor storage, reduced outside space, and tiny home office space as a token gesture of ticking a box rather than being carefully considered in the broader context of facilitating new ways of working.
An inevitable impact of a significant shift towards home working will be to cause homebuyers to think much more carefully about what a home might be like to spend far more time in. Is there storage space, is there a room that can be converted into a home office, is there access to outside space, is the mobile signal good and is there a fast broadband connection?
We have a duty as designers and policy makers to think about the long-term impact of these trends, and build in space and facilities to enable those who can and want to work from home, to do so safely, effectively and in comfort.


cityam--2020-05-18--Party crasher: BBC launches new co-watching feature to rival Netflix

The BBC has today launched a new feature that will allow people to watch and listen to programmes together even while they are separated .
BBC Together allows people to access video and audio content from iPlayer , Sounds , Bitesize , News and Sport at exactly the same time .
Read more : BBC Four faces closure as TV bosses battle £125m Covid-19 shortfall The feature , which has been launched by the broadcaster ’ s research and development ( R & D ) division , follows a similar move by US streaming giant Netflix .
However , unlike @ @ @ @ @ @ @ not offer a group chat service .
The rollout comes as the public service broadcaster looks to tap into increased demand during the coronavirus lockdown and fend off tough competition from Silicon Valley streaming rivals .
“ There may be physical distance between us , but that doesn ’ t mean we can ’ t enjoy great programmes with our friends , family , colleagues and classmates , ” said Dr Libby Miller , senior producer at BBC R & D .
“ We wanted to see if technology could bring people together @ @ @ @ @ @ @ remotely as a shared experience , which we ’ ve done with BBC Together.
” The new service has been launched on a trial basis on Taster , an online platform where the BBC tests new ideas and technologies .
Read more : BBC to reshow London 2012 Olympics as sports schedule collapses Like other broadcasters , the BBC has enjoyed a surge in viewing figures in recent months as millions of people have been forced to stay at home during the Covid-19 lockdown .
Normal People — the hit drama adapted from @ @ @ @ @ @ @ up more than 16m views on BBC iPlayer in its first week , driving BBC Three to its best week ever .

Party crasher: BBC launches new co-watching feature to rival Netflix
The BBC has today launched a new feature that will allow people to watch and listen to programmes together even while they are separated.
BBC Together allows people to access video and audio content from iPlayer, Sounds, Bitesize, News and Sport at exactly the same time.
The feature, which has been launched by the broadcaster’s research and development (R&D) division, follows a similar move by US streaming giant Netflix.
However, unlike Netflix Party the new BBC tool does not offer a group chat service.
The rollout comes as the public service broadcaster looks to tap into increased demand during the coronavirus lockdown and fend off tough competition from Silicon Valley streaming rivals.
“There may be physical distance between us, but that doesn’t mean we can’t enjoy great programmes with our friends, family, colleagues and classmates,” said Dr Libby Miller, senior producer at BBC R&D.
“We wanted to see if technology could bring people together to watch and listen to BBC shows remotely as a shared experience, which we’ve done with BBC Together.”
The new service has been launched on a trial basis on Taster, an online platform where the BBC tests new ideas and technologies.
Like other broadcasters, the BBC has enjoyed a surge in viewing figures in recent months as millions of people have been forced to stay at home during the Covid-19 lockdown.
Normal People — the hit drama adapted from Sally Rooney’s novel — racked up more than 16m views on BBC iPlayer in its first week, driving BBC Three to its best week ever.


cityam--2020-05-18--Shakespeare’s Globe at risk of collapse due to coronavirus crisis

Shakespeare ’ s Globe has warned that unless it receives emergency funding it will collapse due to the “ devastating ” financial impact of the Covid-19 crisis .
The London theatre , which has been closed since 20 March , told MPs it had run out of cash and was “ critically vulnerable ” in the wake of the pandemic .
Read more : TV scripts get coronavirus rewrite as broadcasters resume filming It said it would need at least £5m — 20 per cent of annual turnover — in order to open its doors again .
“ Covid-19 presents @ @ @ @ @ @ @ Shakespeare ’ s Globe since our opening in 1997 and its immediate impact has been financially devastating , ” the venue said in written evidence to the Digital , Culture , Media and Sport ( DCMS ) Select Committee .
“ Without emergency funding and the continuation of the Coronavirus Job Retention Scheme , we will spend down our reserves and become insolvent.
” DCMS committee chair Julian Knight described the theatre , which is a reconstruction of the Elizabethean playhouse for which Shakespeare wrote his plays , as a “ national treasure @ @ @ @ @ @ @ a “ tragedy ” .
The venue does not receive funding from the government or Arts Council England ( ACE ) , and raises 95 per cent of its revenue from ticket sales , guided tours , education workshops and food and drinks sales .
The Globe said it could not access the charity sector ’ s emergency funding and its application to an ACE fund was declined .
Read more : Hamilton film to be streamed from July as Disney Plus fast-tracks release In a letter to culture secretary Oliver Dowden , @ @ @ @ @ @ @ support for cultural institutions that were falling through the cracks .
“ The government must step up now and find more funding to shore up our cultural landscape and safeguard our rich past while giving hope to those whose livelihoods depend upon it , ” he said .

Shakespeare’s Globe at risk of collapse due to coronavirus crisis
Shakespeare’s Globe has warned that unless it receives emergency funding it will collapse due to the “devastating” financial impact of the Covid-19 crisis.
The London theatre, which has been closed since 20 March, told MPs it had run out of cash and was “critically vulnerable” in the wake of the pandemic.
It said it would need at least £5m — 20 per cent of annual turnover — in order to open its doors again.
“Covid-19 presents the greatest threat to the future of Shakespeare’s Globe since our opening in 1997 and its immediate impact has been financially devastating,” the venue said in written evidence to the Digital, Culture, Media and Sport (DCMS) Select Committee.
“Without emergency funding and the continuation of the Coronavirus Job Retention Scheme, we will spend down our reserves and become insolvent.”
DCMS committee chair Julian Knight described the theatre, which is a reconstruction of the Elizabethean playhouse for which Shakespeare wrote his plays, as a “national treasure” and said losing it would be a “tragedy”.
The venue does not receive funding from the government or Arts Council England (ACE), and raises 95 per cent of its revenue from ticket sales, guided tours, education workshops and food and drinks sales.
The Globe said it could not access the charity sector’s emergency funding and its application to an ACE fund was declined.
In a letter to culture secretary Oliver Dowden, Knight urged the government to provide additional support for cultural institutions that were falling through the cracks.
“The government must step up now and find more funding to shore up our cultural landscape and safeguard our rich past while giving hope to those whose livelihoods depend upon it,” he said.