cityam--2020-07-28--The City View: Patrick L Young on exchanges and the future of finance

In today ’ s bumper edition of The City View , Andy Silvester is joined by entrepreneur , author and former exchange boss Patrick L Young .
Patrick takes us on a global tour of exchanges and the plumbing of the world ’ s financial system , touching on the remarkable technological achievements of the last two decades and the future of finance .
They also delve into Brexit , London ’ s potential , and why bitcoin is the Model T Ford of cryptocurrency .
Andy also looks at calls to extend the furlough scheme , more job cuts @ @ @ @ @ @ @ from Travis Perkins and Gregg ’ s .
Read more : The City View : James Burstall on post-lockdown production ETX Capital is one of the UK ’ s leading spread betting and CFD trading providers , offering services to retail , institutional , professional and high net worth customers via an award-winning trading platform .
With over 50 years of experience in the financial markets , customers and service are always put first at ETX , and the company prides itself in offering a tailor-made trading experience to every customer .
The @ @ @ @ @ @ @ , award-winning trading technology with customisable charts , instant execution and over 5,000 markets to trade .
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage .
76 % of retail investor accounts lose money when spread betting or trading CFDs with ETX .
You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.Authorised and regulated by the Financial Conduct Authority with Financial Services register number @ @ @ @ @ @ @ therefore any market analysis , opinion , commentary or other information provided during this webinar is for educational purposes only and is not intended to be a personal recommendation or construed as advice .
ETX Capital and the presenter are not financial or investment advisors and do not recommend any instrument of any kind .
Any instruments that are mentioned throughout are cited only for illustrative and educational purposes .

The City View: Patrick L Young on exchanges and the future of finance
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In today’s bumper edition of The City View, Andy Silvester is joined by entrepreneur, author and former exchange boss Patrick L Young.
Patrick takes us on a global tour of exchanges and the plumbing of the world’s financial system, touching on the remarkable technological achievements of the last two decades and the future of finance.
They also delve into Brexit, London’s potential, and why bitcoin is the Model T Ford of cryptocurrency.
Andy also looks at calls to extend the furlough scheme, more job cuts in the West End, and news from Travis Perkins and Gregg’s.
In association with ETX Capital
ETX Capital is one of the UK’s leading spread betting and CFD trading providers, offering services to retail, institutional, professional and high net worth customers via an award-winning trading platform. With over 50 years of experience in the financial markets, customers and service are always put first at ETX, and the company prides itself in offering a tailor-made trading experience to every customer. The multi-device TraderPro platform delivers a fully customisable, award-winning trading technology with customisable charts, instant execution and over 5,000 markets to trade.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.Authorised and regulated by the Financial Conduct Authority with Financial Services register number 124721.ETX Capital provides an execution-only service and therefore any market analysis, opinion, commentary or other information provided during this webinar is for educational purposes only and is not intended to be a personal recommendation or construed as advice. ETX Capital and the presenter are not financial or investment advisors and do not recommend any instrument of any kind. Any instruments that are mentioned throughout are cited only for illustrative and educational purposes.


cityam--2020-07-28--Government mulling two-test system to cut quarantine time

People entering the UK from red-listed countries may be allowed to leave quarantine early if they test negative twice for coronavirus in a limited number of days .
The BBC reported that the government was close to giving the go-ahead to a trial programme of double testing in order to ease pressure on the travel sector .
Read more : Airlines push for regional approach after ‘ foolish ’ Spain quarantine At the moment , all those entering the UK from countries where there is a high risk of coronavirus infection must quarantine for 14 days .
There is a @ @ @ @ @ @ @ which travellers can currently come to UK which are exempt from the measures .
According to sources in the travel industry , the big question at the moment is on the number of days between tests .
Members of the sector are keen on five days between the tests , while the government is reportedly pressing for an eight day gap .
The number of days between tests is crucial in reducing the chance of false negative results , which could be possible if someone who had recently contracted the virus was not @ @ @ @ @ @ @ : Start your day with the City View podcast and key market data According to the BBC , there are two options for the format of the testing , which would see passengers tested either twice before travelling or once upon arrival and then again several days later .
The first option would see the need for quarantine to be scrapped altogether , if the person tested negatively twice .
For the second method , the traveller would have to quarantine between the two tests .
Collinson and Swissport are reportedly the two @ @ @ @ @ @ @ expected to focus on one or two routes to begin with .
Collinson chief executive David Evans said of the potential roll-out : “ I would hope that the government would move and flex on their policy – I think they ’ ve got to have an armoury of tools at their disposal to do this .
“ As soon as they do that , we should get this rolled out in the next couple of weeks.
” France is due to implement a similar two-test regime for those arriving from 16 countries @ @ @ @ @ @ @ contacted the Department for Transport for comment .

Government mulling two-test system to cut quarantine time
People entering the UK from red-listed countries may be allowed to leave quarantine early if they test negative twice for coronavirus in a limited number of days.
The BBC reported that the government was close to giving the go-ahead to a trial programme of double testing in order to ease pressure on the travel sector.
At the moment, all those entering the UK from countries where there is a high risk of coronavirus infection must quarantine for 14 days.
There is a list of 70 or so countries from which travellers can currently come to UK which are exempt from the measures.
According to sources in the travel industry, the big question at the moment is on the number of days between tests.
Members of the sector are keen on five days between the tests, while the government is reportedly pressing for an eight day gap.
The number of days between tests is crucial in reducing the chance of false negative results, which could be possible if someone who had recently contracted the virus was not showing symptoms.
Before the Open newsletter: Start your day with the City View podcast and key market data
According to the BBC, there are two options for the format of the testing, which would see passengers tested either twice before travelling or once upon arrival and then again several days later.
The first option would see the need for quarantine to be scrapped altogether, if the person tested negatively twice.
For the second method, the traveller would have to quarantine between the two tests.
Collinson and Swissport are reportedly the two firms pushing the scheme, which is expected to focus on one or two routes to begin with.
Collinson chief executive David Evans said of the potential roll-out: “I would hope that the government would move and flex on their policy – I think they’ve got to have an armoury of tools at their disposal to do this.
“As soon as they do that, we should get this rolled out in the next couple of weeks.”
France is due to implement a similar two-test regime for those arriving from 16 countries including the US.
City A.M. has contacted the Department for Transport for comment.


cityam--2020-07-28--Sales plunge at Gucci owner Kering as 2020 outlook remains unclear

Luxury group Kering said sales plunged almost 44 per cent in the second quarter due to the coronavirus pandemic , adding it could not provide a forecast for the second half of 2020 .
The Gucci owner ’ s revenue was a touch better than analyst expectations , however , with those at UBS citing estimates for a 46 per cent fall .
Kering rival LVMH had managed to limit its own sales decline to 38 per cent in the second quarter , with an operating margin of nine per cent .
Analysts told Reuters the disparity was partly due @ @ @ @ @ @ @ third-party manufacturing , which helped it mitigate the impact of fixed costs when its factories had to close .
Read more : LVMH sales slump drags down other luxury stocks Kering said it did not have enough visibility to predict revenue or profit for the rest of the year , as its finance boss Jean-Marc Duplaix told reporters it would continue to suffer from the lack of global tourism .
“ The loss in revenue experienced in the first six months of the year should not be offset in the second half , @ @ @ @ @ @ @ brighter note , Duplaix said sales momentum had picked up in June in all regions as lockdowns eased , with the group ’ s brands doing particularly well in China .
Average sales growth in the region — a prime market for luxury brands — ranged from 40 per cent to 70 per cent since May .
Chinese shoppers accounted for 37 per cent of luxury goods sales last year , though they made the bulk of their purchases while traveling abroad .
Sales at Kering ’ s top brand Gucci in the @ @ @ @ @ @ @ per cent on a like-for-like basis , which strips out the impact of currency swings and acquisitions .
Read more : UK retail sales bounce back as shops reopen from lockdown Yves Saint Laurent suffered an even bigger fall of 48 per cent , while Bottega Veneta contained the drop in revenue to 24.4 per cent .
Kering ’ s overall online sales bounced , however , to account for 18 per cent of revenue in the second quarter , up from under 10 per cent at the start of the year .
@ @ @ @ @ @ @ cent today ahead of the release , dragged down by investors ’ disappointment with LVMH ’ s results earlier in the day .

Sales plunge at Gucci owner Kering as 2020 outlook remains unclear
Luxury group Kering said sales plunged almost 44 per cent in the second quarter due to the coronavirus pandemic, adding it could not provide a forecast for the second half of 2020.
The Gucci owner’s revenue was a touch better than analyst expectations, however, with those at UBS citing estimates for a 46 per cent fall.
Operating margins were hit hard, falling 17.7 per cent.
Kering rival LVMH had managed to limit its own sales decline to 38 per cent in the second quarter, with an operating margin of nine per cent.
Analysts told Reuters the disparity was partly due to Kering’s higher dependence on third-party manufacturing, which helped it mitigate the impact of fixed costs when its factories had to close.
Kering said it did not have enough visibility to predict revenue or profit for the rest of the year, as its finance boss Jean-Marc Duplaix told reporters it would continue to suffer from the lack of global tourism.
“The loss in revenue experienced in the first six months of the year should not be offset in the second half,” the company said.
On a brighter note, Duplaix said sales momentum had picked up in June in all regions as lockdowns eased, with the group’s brands doing particularly well in China.
Average sales growth in the region — a prime market for luxury brands — ranged from 40 per cent to 70 per cent since May.
Chinese shoppers accounted for 37 per cent of luxury goods sales last year, though they made the bulk of their purchases while traveling abroad.
Sales at Kering’s top brand Gucci in the April to June period declined by 45 per cent on a like-for-like basis, which strips out the impact of currency swings and acquisitions.
Yves Saint Laurent suffered an even bigger fall of 48 per cent, while Bottega Veneta contained the drop in revenue to 24.4 per cent.
Kering’s overall online sales bounced, however, to account for 18 per cent of revenue in the second quarter, up from under 10 per cent at the start of the year.
Shares in Kering closed down 2.7 per cent today ahead of the release, dragged down by investors’ disappointment with LVMH’s results earlier in the day.


cityam--2020-07-28--Get staff back to offices now, urges LBC's Nick Ferrari

LBC ’ s Nick Ferrari has urged businesses to start bringing their employees back to the office , saying that companies “ need a reality check ” .
His comments were prompted by Google ’ s announcement that its employees would work from home until summer next year .
Read more : Google to extend working from home until mid-2021 Speaking on his daily breakfast show , Ferrari said that unless people went back to their places of work unemployment would rocket .
“ This is ridiculous .
This does not work ” , he said .
“ People need @ @ @ @ @ @ @ work .
It ’ s better for you to go to the office .
You get away from your husband , your wife , your children .
“ Do you know why we have offices ?
So you can do some damned work .
I ’ ve had enough of Zoom calls .
“ What do you think is going to get this country going again ?
You sitting in your jim-jams not doing anything all day long ?
” , he said .
Google ’ s announcement came after fellow tech giants @ @ @ @ @ @ @ on the future of office working .
Before the Open newsletter : Start your day with the City View podcast and key market data In May , Twitter announced it would let employees who wish to do so work from home “ forever ” and Facebook said it expects at least half of its employees to work remotely for the next five to 10 years .
Earlier this month Boris Johnson announced that from August companies would be given “ more discretion ” to bring their staff back into offices if it is @ @ @ @ @ @ @ business groups such as the British Chambers of Commerce and the Institute of Directors have suggested that a mass return to work was unlikely .
Edwin Morgan , director of policy at the Institute of Directors , said : “ Businesses need to balance the risks , and won ’ t want to increase the possibility of closures down the line by rushing back ” .
Undeterred , Ferrari continued : “ For the love of God , we are broke .
£300bn broke and now companies are saying don ’ t come @ @ @ @ @ @ @ I ’ d give you until Thursday and if you ’ re not back , you ’ re fired .
Enough already .
Read more : Business groups cautiously welcome easing of workplace restrictions “ The country has to get moving .
There are businesses crashing .
Tumbleweed is blowing through the City of London right now .

Get staff back to offices now, urges LBC’s Nick Ferrari
LBC’s Nick Ferrari has urged businesses to start bringing their employees back to the office, saying that companies “need a reality check”.
His comments were prompted by Google’s announcement that its employees would work from home until summer next year.
Speaking on his daily breakfast show, Ferrari said that unless people went back to their places of work unemployment would rocket.
“This is ridiculous. This does not work”, he said.
“People need to go back to their places of work. It’s better for you to go to the office. You get away from your husband, your wife, your children.
“Do you know why we have offices? So you can do some damned work. I’ve had enough of Zoom calls.
“What do you think is going to get this country going again? You sitting in your jim-jams not doing anything all day long?”, he said.
Google’s announcement came after fellow tech giants Twitter and Facebook also made eye-catching decisions on the future of office working.
Before the Open newsletter: Start your day with the City View podcast and key market data
In May, Twitter announced it would let employees who wish to do so work from home “forever” and Facebook said it expects at least half of its employees to work remotely for the next five to 10 years.
Earlier this month Boris Johnson announced that from August companies would be given “more discretion” to bring their staff back into offices if it is safe to do so.
However, business groups such as the British Chambers of Commerce and the Institute of Directors have suggested that a mass return to work was unlikely.
Edwin Morgan, director of policy at the Institute of Directors, said: “Businesses need to balance the risks, and won’t want to increase the possibility of closures down the line by rushing back”.
Undeterred, Ferrari continued: “For the love of God, we are broke. £300bn broke and now companies are saying don’t come back this year?
“I think I’d give you until Thursday and if you’re not back, you’re fired. Enough already.
“The country has to get moving. There are businesses crashing. Tumbleweed is blowing through the City of London right now.
“These companies need a reality check”, he finished.


cityam--2020-07-28--Twitter limits Donald Trump Jr's account over coronavirus video

Twitter said today it has limited access to Donald Trump Jr ’ s account for 12 hours , following a tweet he had posted which violated its misinformation policy on coronavirus .
The eldest son of US President Donald Trump posted a video yesterday of doctors talking about the drug hydroxychloroquine as a treatment for coronavirus .
In the video , the doctors also discounted the need for face masks amid the pandemic .
It was later removed by Twitter , Facebook and Alphabet ’ s Youtube for violating misinformation rules , but not before it had racked up millions @ @ @ @ @ @ @ posts late yesterday containing a link to the misleading video , which was similarly removed by Twitter .
He then accused Dr Anthony Fauci , a top infectious disease expert , and the rival Democratic party of suppressing the use of the drug hydroxychloroquine to treat coronavirus .
Fauci , who directs the National Institute of Allergy and Infectious Diseases ( NIAID ) , said he has “ not been misleading the American public under any circumstances ” .
US regulators last month revoked an emergency-use authorisation ruling for hydroxychloroquine to treat Covid-19 @ @ @ @ @ @ @ its effectiveness .
Meanwhile Trump has regularly promoted the drug and said he has used it himself .
“ It is beyond the pale for Twitter to silence someone for sharing the views of medical professionals who happen to dissent with their anti-hydroxychloroquine narrative , ” said Andy Surabian , a spokesman for Donald Trump Jr. A Twitter spokesman told Reuters that it would limit some account functionality for 12 hours , but had not suspended Trump Jr ’ s account entirely .

Twitter limits Donald Trump Jr’s account over coronavirus video
Twitter said today it has limited access to Donald Trump Jr’s account for 12 hours, following a tweet he had posted which violated its misinformation policy on coronavirus.
The eldest son of US President Donald Trump posted a video yesterday of doctors talking about the drug hydroxychloroquine as a treatment for coronavirus.
In the video, the doctors also discounted the need for face masks amid the pandemic.
It was later removed by Twitter, Facebook and Alphabet’s Youtube for violating misinformation rules, but not before it had racked up millions of views.
President Trump also retweeted posts late yesterday containing a link to the misleading video, which was similarly removed by Twitter.
He then accused Dr Anthony Fauci, a top infectious disease expert, and the rival Democratic party of suppressing the use of the drug hydroxychloroquine to treat coronavirus.
Fauci, who directs the National Institute of Allergy and Infectious Diseases (NIAID), said he has “not been misleading the American public under any circumstances”.
US regulators last month revoked an emergency-use authorisation ruling for hydroxychloroquine to treat Covid-19, after several studies cast doubt on its effectiveness.
Meanwhile Trump has regularly promoted the drug and said he has used it himself.
“It is beyond the pale for Twitter to silence someone for sharing the views of medical professionals who happen to dissent with their anti-hydroxychloroquine narrative,” said Andy Surabian, a spokesman for Donald Trump Jr.
A Twitter spokesman told Reuters that it would limit some account functionality for 12 hours, but had not suspended Trump Jr’s account entirely.


cityam--2020-07-28--London coronavirus cases: How many infections are in your London borough?

The number of confirmed coronavirus cases in London hit 35,165 today , with Croydon the worst affected borough .
Figures released by Public Health England showed that the borough had recorded 1,877 confirmed Covid-19 cases as of today , while Brent has had 1,787 .
Read more : UK lockdown : Zoos and drive-in cinemas could reopen from 15 June Barnet and Ealing have recorded 1,655 and 1,603 positive tests respectively .
Bromley had the fifth most London coronavirus cases with 1,532 .
The capital has had 11.6 per cent of the UK ’ s 300,692 confirmed cases .
The @ @ @ @ @ @ @ to have died of coronavirus has now reached 45,878 .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Sign up to City A.M. ’ s Midday Update newsletter , delivered to your inbox every lunchtime Data sourced from Public Health England , effective as of 28 July Boris Johnson says Europe may have second wave of coronavirus Boris Johnson has warned that mainland Europe may be experiencing the start of a second coronavirus wave as he defends the government ’ @ @ @ @ @ @ @ travellers from Spain .
Speaking to reporters today during a visit in Nottingham , Johnson said : “ What we have to do is take swift and decisive action where we think that the risks are starting to bubble up again .
Read more : Boris Johnson warns of second coronavirus wave in Europe “ Let ’ s be absolutely clear about what ’ s happening in Europe – Amongst some of our European friends , I ’ m afraid you are starting to see in some places the signs of a second @ @ @ @ @ @ @ announced on Saturday that people coming to the UK from Spain would have to quarantine themselves for 14 days , after a spike in cases in the regions of Catalonia and Aragon .
The Telegraph reported today that Downing Street is preparing to cut the quarantine to 10 days , after backlash from the aviation industry and Spanish government .
Some lockdown measures have been reintroduced in Oldham after a “ dramatic ” spike in cases of coronavirus over the weekend .
Residents should not allow social visitors into their homes and must @ @ @ @ @ @ @ others .
Read more : Oldham hit with new lockdown measures after spike in coronavirus cases Those who are shielding have been told to continue doing so for another two weeks , until 14 August .
Oldham Council ’ s deputy leader councillor Arooj Shah said the move was an attempt to avoid “ strict local lockdown ” measures , which could see restaurants and shops close again to halt the spread of the disease .
While originally on Public Health England ’ s watchlist of areas of concern for potential lockdown re-entry @ @ @ @ @ @ @ last week .
However data this week showed 114 cases recorded in the seven days to 24 July — a rise of more than four times on the week before , in which it reported 17 cases .

How many Covid-19 infections are there in your London borough?
London has seen a sharp drop in the number of recorded coronavirus cases over the past few days, after figures released on Friday showed the capital currently has the lowest R rate in the country.
A further 629 cases were recorded in the past 24 hours, taking the total number of positive tests in London since the start of the pandemic to 697,278.
It marks a significant drop since a record 19,871 daily cases were recorded on 29 December, as lockdown measures continue to drive down infections.
Several areas in the capital have seen case numbers drop threefold over the past fortnight, which in turn has pushed down the spread of infection.
Most boroughs in the capital now have a seven-day rate below 100 new cases per 100,000, but that figure is below 50 in some areas in central London.
Twenty-nine London borough areas, including the whole of east London which was hardest hit by the second wave, have a seven-day case rate below 100 new confirmed cases per 100,000.
Meanwhile, Southwark, Westminster, Camden, Kensington and Chelsea all recorded seven-day rates below 50. Lewisham saw the lowest case rate in the capital in the week to 24 February, with an average of 43 people infected per 100,000 population.
Meanwhile, Ealing currently has the highest case rate, with 123 cases per 100,000, followed by Hounslow at 115 and Hillingdon on 97.
Health chiefs have said all London boroughs need to get below a case rate of 100 before restrictions can begin to be lifted, starting with the reopening of schools on 8 March.
It comes after figures released last Friday showed London’s R rate remains at a best estimate of 0.6 to 0.8 — the lowest in the country, alongside the east of England and the South West.
The figure means infections may be falling anywhere between five and eight per cent each day.
However, separate figures released last week showed the percentage of people testing positive for coronavirus in London remains the highest of any English region.
Data published by the Office for National Statistics (ONS) showed around 1 in 63 Londoners were infected with the virus last week.
That compares to an estimated 1 in 80 people who contracted the virus in England as a whole in the week to 6 February, according to ONS figures.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
London coronavirus cases by borough (in alphabetical order)
Data sourced from Public Health England, accurate as of 4pm on Tuesday 2 March
Boroughs Rate of infection per 100,000 people in last 7 days Total confirmed cases since start of pandemic Barking and Dagenham 86 22,925 Barnet 75 29,569 Bexley 58 21,812 Brent 91 27,577 Bromley 48 23,857 Camden 42 13,683 Croydon 73 30,213 Ealing 123 29,807 Enfield 48 29,217 Greenwich 55 21,769 Hackney and City of London 57 21,234 Hammersmith and Fulham 76 12,564 Haringey 58 20,345 Harrow 95 19,917 Havering 65 26,383 Hillingdon 97 25,287 Hounslow 115 23,817 Islington 43 14,574 Kensington and Chelsea 43 8,643 Kingston upon Thames 47 11,764 Lambeth 49 23,625 Lewisham 39 21,226 Merton 79 15,719 Newham 61 34,574 Redbridge 72 31,965 Richmond upon Thames 55 10,430 Southwark 42 21,947 Sutton 80 15,509 Tower Hamlets 53 28,074 Waltham Forest 52 24,325 Wandsworth 63 21,377 Westminster 41 13,577
Before the Open newsletter: Start your day with the City View podcast and key market data


cityam--2020-07-28--Jet2 cancels flights to Spanish islands after 'contradictory' advice

Budget carrier Jet2 has now cancelled its flights to the Balearic and Canary Islands after the Foreign Office updated its advice to warn against any non-essential travel to the destinations .
Until 10 August , the carrier will not operate flights to Gran Canaria , Tenerife , Fuerteventura , Lanzarote , Menorca , Majorca and Ibiza .
Yesterday the package holiday group took the decision to suspend all flights to mainland Spain until August 16 due to the imposition of mandatory quarantine measures by the government .
The carrier called on the government to provide clearer messaging regarding the situation @ @ @ @ @ @ @ a recent spike in coronavirus cases .
“ What we need now is clarity and consistency from the government , ” the airline said in a statement .
“ We understand that this is a fast-moving situation , however the information we are receiving is contradictory and often comes with little or no notice.
” Jet2 said that it would be in touch with passengers with options for rebooking or receiving a full refund .
Fellow low-cost fliers Ryanair and Easyjet yesterday said that they would not reduce their programme of flights to @ @ @ @ @ @ @ newsletter : Start your day with the City View podcast and key market data The government ’ s decision to extend the travel warnings to the offshore islands has met with heavy criticism from the UK ’ s aviation and tourism sectors , as well as Spanish officials .
Many have questioned why ministers have not followed Germany in committing to targeted travel restrictions on the regions of Spain which have seen the most worrying rise in cases .
Earlier today Germany ’ s foreign ministry warned people not to travel to Catalonia @ @ @ @ @ @ @ surge of cases is most prominent .
Aviation body Airlines UK said the government should work with the sector to consider a more targeted , regional approach where quarantine could apply only to affected regions of a country ” .
Spanish Prime Minister Pedro Sanchez said that ministers had made the mistake of using Spain ’ s overall infection rate instead of local data .
Read more : Ryanair and Easyjet to continue flying to Spain despite quarantine According to figures from yesterday , figures show that Spain has 35.1 cases per 100,000 @ @ @ @ @ @ @ Madrid is working on convincing the UK that it had the outbreaks under control , its foreign minister said .

Jet2 cancels flights to Spanish islands after ‘contradictory’ advice
Jet2 has ordered 35 new A320 neo aircraft from Airbus for $3.9bn (£3.4bn) to meet future travel demand.
Budget carrier Jet2 has now cancelled its flights to the Balearic and Canary Islands after the Foreign Office updated its advice to warn against any non-essential travel to the destinations.
Until 10 August, the carrier will not operate flights to Gran Canaria, Tenerife, Fuerteventura, Lanzarote, Menorca, Majorca and Ibiza.
Yesterday the package holiday group took the decision to suspend all flights to mainland Spain until August 16 due to the imposition of mandatory quarantine measures by the government.
The carrier called on the government to provide clearer messaging regarding the situation in Spain, where there has been a recent spike in coronavirus cases.
“What we need now is clarity and consistency from the government,” the airline said in a statement.
“We understand that this is a fast-moving situation, however the information we are receiving is contradictory and often comes with little or no notice.”
Jet2 said that it would be in touch with passengers with options for rebooking or receiving a full refund.
Fellow low-cost fliers Ryanair and Easyjet yesterday said that they would not reduce their programme of flights to the Iberian nation.
Before the Open newsletter: Start your day with the City View podcast and key market data
The government’s decision to extend the travel warnings to the offshore islands has met with heavy criticism from the UK’s aviation and tourism sectors, as well as Spanish officials.
Many have questioned why ministers have not followed Germany in committing to targeted travel restrictions on the regions of Spain which have seen the most worrying rise in cases.
Earlier today Germany’s foreign ministry warned people not to travel to Catalonia, Aragon and Navarre, where the surge of cases is most prominent.
Aviation body Airlines UK said the government should work with the sector to consider a more targeted, regional approach where quarantine could apply only to affected regions of a country”.
Spanish Prime Minister Pedro Sanchez said that ministers had made the mistake of using Spain’s overall infection rate instead of local data.
According to figures from yesterday, figures show that Spain has 35.1 cases per 100,000 compared to 14.7 in the UK.
Madrid is working on convincing the UK that it had the outbreaks under control, its foreign minister said.


cityam--2020-07-28--Rishi Sunak's deputy says targeted relief an option after furlough scheme ends

Treasury minister Steve Barclay has ruled out extending the government ’ s furlough scheme past October , but left the door open for targeted relief to some sectors .
The scheme is due to end on 31 October , with government payments decreased in September and October .
Read more : Sadiq Khan calls on government to extend furlough scheme Barclay said today that there would be no extension to the scheme , echoing recent comments from chancellor Rishi Sunak that it would be “ irresponsible ” to keep it running .
This is despite calls today from the National @ @ @ @ @ @ @ NIESR ) think tank to extend the furlough scheme until June 2021 .
Mayor of London Sadiq Khan also called for the scheme to be extended in a letter to Prime Minister Boris Johnson on Sunday .
Before the Open newsletter : Start your day with the City View podcast and key market data Barclay conceded that some “ targeted measures ” could be implemented for sectors not able to fully operate at the end of the year , but added that the government did not want people on leave for more than @ @ @ @ @ @ @ the furlough scheme was about maintaining the link with the job , ” he said .
“ And actually if you stretch the elastic of that too long… it is not good for them , never mind the debate on the financial side of it.
” The government has paid the wages of 9.5m people through the scheme , with total outlay at almost £32bn .
The NIESR believes that ending the scheme in October will mean a surge in unemployment that will cripple the economy .
The think tank said today that @ @ @ @ @ @ @ per cent , and that extending the scheme would be “ relatively inexpensive ” .
Read more : UK unemployment to hit 10 per cent as furlough scheme ends , says report NIESR deputy director Garry Young said : “ The planned closure of the furlough seems to be a mistake , motivated by an understandable desire to limit spending .
“ The scheme was intended by thechancellor to be a bridge through the crisis and there is a risk that it is coming to an end prematurely and this increases the probability @ @ @ @ @ @ @ shadow Treasury minister Bridget Phillipson said : “ Steve Barclay has admitted what everyone already knows : the one-size-fits-all Tory economic policy simply won ’ t match the challenges we face ahead .
“ We urgently need tailored support for the sectors that need it most .
It shouldn ’ t have taken the government months to work this out .
”

Rishi Sunak’s deputy says targeted relief an option after furlough scheme ends
The government has paid the wages of 9.5m people through the scheme, with total outlay at almost £32bn.
Treasury minister Steve Barclay has ruled out extending the government’s furlough scheme past October, but left the door open for targeted relief to some sectors.
The scheme is due to end on 31 October, with government payments decreased in September and October.
Barclay said today that there would be no extension to the scheme, echoing recent comments from chancellor Rishi Sunak that it would be “irresponsible” to keep it running.
This is despite calls today from the National Institute of Economic and Social Research (NIESR) think tank to extend the furlough scheme until June 2021.
Mayor of London Sadiq Khan also called for the scheme to be extended in a letter to Prime Minister Boris Johnson on Sunday.
Before the Open newsletter: Start your day with the City View podcast and key market data
Barclay conceded that some “targeted measures” could be implemented for sectors not able to fully operate at the end of the year, but added that the government did not want people on leave for more than eight months.
“The rationale behind the furlough scheme was about maintaining the link with the job,” he said.
“And actually if you stretch the elastic of that too long… it is not good for them, never mind the debate on the financial side of it.”
The government has paid the wages of 9.5m people through the scheme, with total outlay at almost £32bn.
The NIESR believes that ending the scheme in October will mean a surge in unemployment that will cripple the economy.
The think tank said today that unemployment would more than double to 10 per cent, and that extending the scheme would be “relatively inexpensive”.
NIESR deputy director Garry Young said: “The planned closure of the furlough seems to be a mistake, motivated by an understandable desire to limit spending.
“The scheme was intended by thechancellor to be a bridge through the crisis and there is a risk that it is coming to an end prematurely and this increases the probability of economic scarring.”
Labour’s shadow Treasury minister Bridget Phillipson said: “Steve Barclay has admitted what everyone already knows: the one-size-fits-all Tory economic policy simply won’t match the challenges we face ahead.
“We urgently need tailored support for the sectors that need it most. It shouldn’t have taken the government months to work this out.”


cityam--2020-07-28--Steel Bull can build on exciting  debut in the Molecomb Stakes

ONLY the 10 two-year-olds line-up for the Molecomb Stakes ( 2.45pm ) which looks sure to be run at a furious pace .
Significantly heads the betting on the back of three seconds and will relish the strongly run race .
He has managed to wrestle defeat from the jaws of victory on a couple of occasions already but shouldn ’ t have time to be worried out of this .
Sardinia Sunset was fourth in the Queen Mary Stakes at Royal Ascot and then made no mistake back at York .
She should go well too , but like @ @ @ @ @ @ @ betting .
Aidan O ’ Brien had a decent two-year-old winner on the opening day and Chief Little Hawk is better than he has showed in three recent runs .
However , I ’ m going to take a chance on another Irish raider in Michael O ’ Callaghan ’ s STEEL BULL who bolted up at Naas last week .
He won in the style of a smart juvenile and pounced late off a strong pace .
The fact that connections bring him over for this so soon suggest he is held @ @ @ @ @ @ @ support at 11/2 or maybe bigger with Tote.co.uk .
It ’ s day three of the Galway Festival with the feature being the Tote Galway Plate ( 6.45pm ) .
Trainer Gordon Elliott holds a strong hand like you might imagine and his GALVIN looks to have been laid out for the race at 6/1 .
He was a really good second behind Imperial Aura in the Novices ’ Handicap at the Cheltenham Festival this year and warmed up for this with a facile victory at Killarney .
That should have put him @ @ @ @ @ @ @ can steer him to a memorable success .

Steel Bull can build on exciting debut in the Molecomb Stakes
Colin Keane will be riding Steel Bull
ONLY the 10 two-year-olds line-up for the Molecomb Stakes (2.45pm) which looks sure to be run at a furious pace.
Significantly heads the betting on the back of three seconds and will relish the strongly run race.
He has managed to wrestle defeat from the jaws of victory on a couple of occasions already but shouldn’t have time to be worried out of this.
Sardinia Sunset was fourth in the Queen Mary Stakes at Royal Ascot and then made no mistake back at York.
She should go well too, but like Significantly she is pretty short in the betting.
Aidan O’Brien had a decent two-year-old winner on the opening day and Chief Little Hawk is better than he has showed in three recent runs.
However, I’m going to take a chance on another Irish raider in Michael O’Callaghan’s STEEL BULL who bolted up at Naas last week.
He won in the style of a smart juvenile and pounced late off a strong pace.
The fact that connections bring him over for this so soon suggest he is held in high regard and looks worthy of support at 11/2 or maybe bigger with Tote.co.uk.
It’s day three of the Galway Festival with the feature being the Tote Galway Plate (6.45pm).
Trainer Gordon Elliott holds a strong hand like you might imagine and his GALVIN looks to have been laid out for the race at 6/1.
He was a really good second behind Imperial Aura in the Novices’ Handicap at the Cheltenham Festival this year and warmed up for this with a facile victory at Killarney.
That should have put him spot on for this and Davy Russell can steer him to a memorable success.
POINTERS
Steel Bull e/w 11/2 2.45pm Goodwood
Galvin e/w 6/1 6.45pm Galway


cityam--2020-07-29--Samsung mulls ditching App Store and virtual assistant in possible Google tie-up

Samsung is said to be considering plans to drop its own Galaxy App Store and its virtual assistant Bixby in favour of signing a deal with Google ’ s Android competitor .
The tie-up would mark a major change for Samsung , which has consistently clung to using its own services rather than adopting Google ’ s offering .
Google has tried for years to get Samsung , the world ’ s top-selling smartphone maker , to adopt Google ’ s Search , Assistant and Play Store apps , a person close to the relationship told Reuters .
Read more @ @ @ @ @ @ @ faster than any earlier version Google is now said to be offering more lucrative terms for Samsung than in previous deals if it retreats from its app strategy , with terms set to be finalised by Friday .
Samsung denied having plans to drop its app store and assistant , however , saying it remains committed to its services and ecosystem .
Samsung phones are already powered by Google ’ s Android software , which sometimes as an incentive will give manufacturers a portion of ad revenue generated from Google apps featured on @ @ @ @ @ @ @ electronics magnate has stuck by its own app store and services , from which it can collect all the revenue , despite a reputation for glitches and a lukewarm reception from users .
Read more : Huawei to delay smartphone production as US measures threaten bottleneck This strategy has been challenged in recent months , Reuters reported , as the coronavirus pandemic and a slowdown in phone upgrades have hurt sales .
Some companies are now having to shut down costly projects and search for new revenue , which could have prompted the @ @ @ @ @ @ @ that it regularly discusses ways to improve the user experience with partners and that Samsung remains free to create its own app store and digital assistant .

Samsung mulls ditching App Store and virtual assistant in possible Google tie-up
Samsung is said to be considering plans to drop its own Galaxy App Store and its virtual assistant Bixby in favour of signing a deal with Google’s Android competitor.
The tie-up would mark a major change for Samsung, which has consistently clung to using its own services rather than adopting Google’s offering.
Google has tried for years to get Samsung, the world’s top-selling smartphone maker, to adopt Google’s Search, Assistant and Play Store apps, a person close to the relationship told Reuters.
Google is now said to be offering more lucrative terms for Samsung than in previous deals if it retreats from its app strategy, with terms set to be finalised by Friday.
Samsung denied having plans to drop its app store and assistant, however, saying it remains committed to its services and ecosystem.
Samsung phones are already powered by Google’s Android software, which sometimes as an incentive will give manufacturers a portion of ad revenue generated from Google apps featured on their devices.
But the South Korean electronics magnate has stuck by its own app store and services, from which it can collect all the revenue, despite a reputation for glitches and a lukewarm reception from users.
This strategy has been challenged in recent months, Reuters reported, as the coronavirus pandemic and a slowdown in phone upgrades have hurt sales.
Some companies are now having to shut down costly projects and search for new revenue, which could have prompted the move.
Google said in a statement that it regularly discusses ways to improve the user experience with partners and that Samsung remains free to create its own app store and digital assistant.


cityam--2020-07-29--Belgium and Croatia may be next on UK's quarantine list

People travelling to the UK from Belgium , Luxembourg and Croatia may face 14-day quarantines as coronavirus infection rates rise across the continent .
Boris Johnson said yesterday that he feared mainland Europe was beginning to experience the first stages of a second Covid-19 wave .
Read more : Boris Johnson warns of second coronavirus wave in Europe Infection rates have been recorded as rising in 11 European countries over the past week .
The government is reportedly closely watching cases in Belgium , Luxembourg and Croatia , and are preparing to impose a quarantine on them as it did @ @ @ @ @ @ @ .
The new measures could be in place as early as tomorrow .
Speaking to reporters yesterday during a visit in Nottingham , Johnson said : “ What we have to do is take swift and decisive action where we think that the risks are starting to bubble up again .
Before the Open newsletter : Start your day with the City View podcast and key market data “ Let ’ s be absolutely clear about what ’ s happening in Europe – Amongst some of our European friends , I ’ m @ @ @ @ @ @ @ some places the signs of a second wave of the pandemic.
” Dr David Nabarro , the World Health Organisation ’ s special envoy for coronavirus , confirmed Johnson ’ s fears that a European second wave may be occurring in an interview with Times Radio .
“ It ’ s early stage , and I know it ’ s awful , we would have had to change their plans at the last minute , ” he said .
“ But we are learning to live with a completely new situation , the @ @ @ @ @ @ @ may take a few weeks before standard and predictable pattern emerges.
” The government announced on Saturday that people coming to the UK from Spain would have to quarantine themselves for 14 days , after a spike in cases in the regions of Catalonia and Aragon .
Spanish Prime Minister Pedro Sanchez said the quarantine was “ an error ” and that “ in most of Spain , the incidence is very much inferior to even the numbers registered in the UK ” .
The prospect of fresh quarantines spells bad news for @ @ @ @ @ @ @ coronavirus crisis .
Jet2 and Tui have already cancelled all flights from the UK to Spain in response to the new quarantine , while British Airways and EasyJet have said their flight schedules will not yet be affected .

Belgium and Croatia may be next on UK’s quarantine list
People pack the beach as they sunbathe and swim in Moscenicka draga, near Croatia’s western town of Rijeka, on the Adriatic sea, on July 10, 2020
People travelling to the UK from Belgium, Luxembourg and Croatia may face 14-day quarantines as coronavirus infection rates rise across the continent.
Boris Johnson said yesterday that he feared mainland Europe was beginning to experience the first stages of a second Covid-19 wave.
Infection rates have been recorded as rising in 11 European countries over the past week.
The government is reportedly closely watching cases in Belgium, Luxembourg and Croatia, and are preparing to impose a quarantine on them as it did with Spain, according to The Times.
The new measures could be in place as early as tomorrow.
Speaking to reporters yesterday during a visit in Nottingham, Johnson said: “What we have to do is take swift and decisive action where we think that the risks are starting to bubble up again.
Before the Open newsletter: Start your day with the City View podcast and key market data
“Let’s be absolutely clear about what’s happening in Europe – Amongst some of our European friends, I’m afraid you are starting to see in some places the signs of a second wave of the pandemic.”
Dr David Nabarro, the World Health Organisation’s special envoy for coronavirus, confirmed Johnson’s fears that a European second wave may be occurring in an interview with Times Radio.
“It’s early stage, and I know it’s awful, we would have had to change their plans at the last minute,” he said.
“But we are learning to live with a completely new situation, the point you made earlier, and it may take a few weeks before standard and predictable pattern emerges.”
The government announced on Saturday that people coming to the UK from Spain would have to quarantine themselves for 14 days, after a spike in cases in the regions of Catalonia and Aragon.
Spanish Prime Minister Pedro Sanchez said the quarantine was “an error” and that “in most of Spain, the incidence is very much inferior to even the numbers registered in the UK”.
The prospect of fresh quarantines spells bad news for an aviation industry already reeling from the coronavirus crisis.
Jet2 and Tui have already cancelled all flights from the UK to Spain in response to the new quarantine, while British Airways and EasyJet have said their flight schedules will not yet be affected.


cityam--2020-07-29--Barclays urges staff back to the office as HSBC eyes September return to work

Barclays boss Jes Staley has indicated he wants employees to return to the office , as HSBC reportedly tells its staff they can return from September .
Speaking to Bloomberg TV today , Staley said : “ It is important to get people back together in physical concentrations.
” He has previously said big city offices “ may be a thing of the past ” .
Read more : Barclays braces for pandemic blow with extra £1.6bn However , today Staley seemed to indicate Barclays would not abandon the financial hubs .
He said : “ We also have a @ @ @ @ @ @ @ like Manchester , like Glasgow.
” “ We want our people back together , to make sure we ensure the evolution of our culture and our controls , and I think that will happen over time , ” he added .
The Barclays chief said 60,000 employees were “ working from their kitchen tables ” but added another 20,000 were in offices , branches and call centres .
HSBC has told its staff they will not return to the office until September at the earliest , in a memo seen by the Evening @ @ @ @ @ @ @ does make the move to head back to the office it will do so “ on a phased basis ” .
It will prioritise bringing back colleagues “ carrying the greatest risk working from home ” .
Like Barclays , HSBC ’ s headquarters are based in Canary Wharf , which is readying for a return of up to three-quarters of its workforce .
Earlier this month just 7,000 of Canary Wharf ’ s 120,000 workers had returned to the office .
But HSBC is now reportedly reducing its social distancing rules down @ @ @ @ @ @ @ more workers to return .
The HSBC memo reportedly said : “ It will be to a limited number of buildings and will see less than 20 per cent of colleagues return to any single office .
In some buildings , maintaining two-metre social distancing means it will be far less than 20 per cent.
” It comes as Prime Minister Boris Johnson encourages more people to return to work after four months of lockdown .
The previous guidance had been to work from home where possible .
However some banks have ignored @ @ @ @ @ @ @ 50,000 employees that they could continue to work from home until next year .
Lloyds has also said it is exploring options to reduce its property footprint as its staff transition to remote working .
In a memo to employees , first reported by the Sunday Times , Sinnott said due to “ changes to the way we work ” in a post-crisis environment , it was likely Lloyds would “ need fewer buildings and different types of spaces ” in future .
Earlier today Barclays reported that it had set aside £1.6bn @ @ @ @ @ @ @ due to the pandemic .
The bank ’ s half-year pre-tax profit dropped from £3bn in 2019 to just £1.3bn in the first half of 2020 .
Its UK profit before tax plunged 76 per cent to £359m , missing analysts ’ forecast of £491m .
Shares in Barclays are down 5.99 per cent .
Get the news as it happens by following City A.M. on Twitter .

Barclays urges staff back to the office as HSBC eyes September return
(Photo by PAUL ELLIS/AFP via Getty Images)
Barclays boss Jes Staley has indicated he wants employees to return to the office, as HSBC reportedly tells its staff they can work in Canary Wharf from September.
Speaking to Bloomberg TV today, Staley said: “It is important to get people back together in physical concentrations.”
He has previously said big city offices “may be a thing of the past”.
However, today Staley seemed to indicate Barclays would not abandon the financial hubs. He said: “We also have a responsibility to places like Canary Wharf, like Manchester, like Glasgow.”
“We want our people back together, to make sure we ensure the evolution of our culture and our controls, and I think that will happen over time,” he added.
The Barclays chief said 60,000 employees were “working from their kitchen tables” but added another 20,000 were in offices, branches and call centres.
HSBC targets September return to Canary Wharf
The bank has told its staff they will not return to the office until September at the earliest, in a memo seen by the Evening Standard.
HSBC appears to want staff to return in September as City banks look to welcome staff back to offices
The bank said when it does make the move to head back to the office it will do so “on a phased basis”. It will prioritise bringing back colleagues “carrying the greatest risk working from home”.
Like Barclays, HSBC’s headquarters are based in Canary Wharf, which is readying for a return of up to three-quarters of its workforce.
Earlier this month just 7,000 of Canary Wharf’s 120,000 workers had returned to the office.
But HSBC is now reportedly reducing its social distancing rules down to one metre, which will allow more workers to return.
The HSBC memo reportedly said: “It will be to a limited number of buildings and will see less than 20 per cent of colleagues return to any single office. In some buildings, maintaining two-metre social distancing means it will be far less than 20 per cent.”
It comes as Prime Minister Boris Johnson encourages more people to return to work after four months of lockdown. The previous guidance had been to work from home where possible.
Canary Wharf offices may be half empty
However, some banks have ignored this advice with Natwest (formerly RBS) last week telling 50,000 employees that they could continue to work from home until next year.
Speaking to Reuters today, the leader of the City of London Catherine McGuinness said banks were saying capacity was likely to be between 40 and 50 per cent at best. This is due to the need to spacing desks out and limit public transport use to adhere to social distancing rules.
A number of office workers will find it easy to return to the City and Canary Wharf in September as schools reopen. But the reduced numbers will mean some of the district’s cafes and shops will shut for good.
The high street has shown slow signs of recovery but a number of chains are reporting that footfall remains low. Sandwich chain Pret A Manger has said sales are around 85 per cent lower than typical for this period due to the pandemic.
“We will see a ‘new normal’ gradually develop even after we have dealt with the virus,” McGuinness told Reuters, “but we are confident there is a place for the office for gathering people.”
Lloyds may reduce office space
Lloyds has also said it is exploring options to reduce its property footprint as its staff transition to remote working.
Canary Wharf banks are taking a variety of approaches to getting staff back to work – whether in offices or remotely
In a memo to employees, first reported by the Sunday Times, Sinnott said “changes to the way we work” meant Lloyds would “need fewer buildings and different types of spaces” in future, signalling no return to normal for staff.
Earlier today Barclays reported that it had set aside £1.6bn to insulate itself against additional loan losses due to the pandemic.
The bank’s half-year pre-tax profit dropped from £3bn in the first half of 2019 to just £1.3bn in the first half of 2020. Its UK profit before tax plunged 76 per cent to £359m, missing analysts’ forecast of £491m.
Shares in Barclays fell six per cent in afternoon trading.
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cityam--2020-07-29--Markets live: FTSE 100 rises as investors eye Fed decision

The FTSE 100 rose as investors eyed potential stimulus from US ’ s Congress and Federal Reserve , despite weak earnings reports from a host of big UK companies .
London ’ s blue-chip index rose 0.4 per cent to 6,152 points .
The FTSE 250 of smaller firms fell 0.3 per cent , however .
Read more : Boris Johnson warns of second coronavirus wave in Europe The FTSE 100 ’ s rise came despite poor results from Barclays , housebuilder Taylor Wimpey and medical manufacturer Smith & Nephew .
In Europe , Germany ’ s Dax slipped 0.1 @ @ @ @ @ @ @ rose 0.1 per cent , however , and France ’ s CAC jumped 0.7 per cent .
US stock futures indicated that Wall street is set to open higher .
Banking giant Barclays put aside a higher-than-expected £1.6bn to cover the loan losses it expects to incur from the coronavirus pandemic .
Its shares were down six per cent .
Barclays ’ s half-year pre-tax profit more than halved year on year , from £3bn in 2019 to just £1.3bn in the first half of 2020 .
However , its trading income jumped @ @ @ @ @ @ @ cent after saying it would complete around 40 per cent fewer homes in 2020 .
Smith & Nephew shares dropped 1.6 per cent after worse-than-expected results .
Nonetheless , FTSE 100 investors chose to focus on the likelihood of more stimulus from US policymakers .
The Fed is expected to leave monetary policy where it is but strike a dovish tone today .
And Republicans and Democrats are haggling over the next round of fiscal stimulus .
Read more : UK economy could take four years to recover , says EY Retailer Next @ @ @ @ @ @ @ shares jumped 5.9 per cent after a smaller-than-expected fall in sales .
“ The FTSE 100 has pushed valiantly into positive territory , ” said Chris Beauchamp , chief market analyst at trading platform IG .
“ But even here the index is merely bouncing from the lower end of its current trading range.
” Gold fell 0.2 per cent in morning trading to $ 1,954 as investors took stock of the recent record-breaking rally .
The yellow metal hit an all-time high yesterday of $ 1,980 an ounce .
It has since @ @ @ @ @ @ @ it could well test the $ 2,000 barrier .
Gold ’ s rise has been helped by expectations of further stimulus and a falling dollar .
It is seen as a hedge against inflation and currency debasement .
The dollar hit a new two-year low today , falling 0.2 per cent on the index .
Ricardo Evangelista , senior analyst at trading platform Activtrades , said the dollar has been hit by “ investors ’ concerns over the ability of the American economy to bounce back ” .

Markets live: FTSE 100 rises as investors eye Fed decision
The FTSE 100 hung on to gains and US stocks rose as investors eyed potential stimulus from the US Congress and Federal Reserve and a torrent of earnings reports delivered mixed results.
London’s blue-chip index rose 0.1 per cent to 6,135 points. The FTSE 250 of smaller firms fell 0.1 per cent, however.
Read more: Boris Johnson warns of second coronavirus wave in Europe
On Wall Street, the S&P 500 was 0.8 per cent higher in morning trading. The Dow Jones was up 0.2 per cent and the Nasdaq had risen 1.1 per cent.
The FTSE 100 spent much of the day in the green despite poor results from Barclays, housebuilder Taylor Wimpey and medical manufacturer Smith & Nephew.
It clung to its gains as it approached the close ahead of the Fed decision. The Fed is expected to hold rates but say some gloomy things about the US economy.
In Europe, Germany’s Dax slipped 0.1 per cent and the continent-wide Stoxx 600 also fell 0.1 per cent. France’s CAC jumped 0.7 per cent, however.
FTSE 100 succumbs to weak earnings
Banking giant Barclays put aside a higher-than-expected £1.6bn to cover the loan losses it expects to incur from the coronavirus pandemic. Its shares were down 5.5 per cent.
Barclays’s half-year pre-tax profit more than halved year on year, from £3bn in 2019 to just £1.3bn in the first half of 2020. However, its trading income jumped.
Housebuilder Taylor Wimpey shed 6.7 per cent after saying it would complete around 40 per cent fewer homes in 2020. Smith & Nephew shares slipped 0.8 per cent after worse-than-expected results.
Retailer Next boosted the blue-chip index, however. Its shares jumped 8.5 per cent after a smaller-than-expected fall in sales.
The FTSE 100 had a “decidedly forgettable session,” said Connor Campbell, financial analyst at Spreadex.
“The markets moped about ahead of the month’s Federal Reserve rate vote.” It is expected to leave rates on hold but say some gloomy things about the economy.
FTSE 100 investors expect Fed chair Jerome Powell to keep rates on hold but to suggest the central bank will do all it can to aid an economic recovery
Read more: UK economy could take four years to recover, says EY
Gold slips after hitting all-time high
Gold fell 0.1 per cent to $1,957 as investors took stock of the recent record-breaking rally.
The yellow metal hit an all-time high yesterday of $1,980 an ounce. It has since cooled off slightly, although analysts say it could well test the $2,000 barrier.
Gold’s rise has been helped by expectations of further stimulus and a falling dollar. It is seen as a hedge against inflation and currency debasement.
Read more: Gold hits record $1,980 high as dollar weakens
The dollar hit a new two-year low today, falling 0.3 per cent on the index.
Ricardo Evangelista, senior analyst at trading platform Activtrades, said the dollar has been hit by “investors’ concerns over the ability of the American economy to bounce back”.
US stocks rise amid some upbeat results
US stocks climbed as earnings season continued, pushed up by a number of better-than-expected results.
Starbucks shares jumped 3.7 per cent on the S&P 500 after it reported positive July sales.
Edward Moya, senior market analyst at currency firm Oanda, said: “This morning’s earnings results from General Electric, Boeing, and General Motors should keep risk appetite steady going into this afternoon’s Fed policy meeting.
“The Fed is unlikely to announce any new policy actions,” he said. But it is “expected to remind financial markets that they are ready to do more”.
“The economy is worse off since the last meeting and the Fed should signal they will do more until the uncertainties to the outlook improve.”


cityam--2020-07-29--UK pension scheme invests £5.5bn into 'environmentally friendly strategies'

Britain ’ s largest pension scheme Nest has pledged to tighten its climate change policy with an investment of £5.5bn into environmentally friendly strategies .
The government-backed scheme said it would decarbonise its £12bn investment portfolio in a bid to tackle climate change .
Nest said it aims to be “ net-zero ” across its investments by 2050 or earlier , with the expectation that carbon emissions in its portfolio will halve by 2030 .
Read more : Blackrock punishes 53 companies over inaction on climate change A number of institutional investors and asset managers , notably Blackrock , have @ @ @ @ @ @ @ fund manager revealed huge changes at the start of the year in an attempt to position itself as a leader in sustainable investment .
Nest has said it will move £5.5bn of shares into “ climate aware ” strategies , which will represent 45 per cent of the scheme ’ s entire portfolio .
It said it would reduce Nest ’ s carbon footprint “ by the equivalent of taking 200,000 cars off the road ” .
It said it will also start divesting from companies involved in thermal coal , oil sands @ @ @ @ @ @ @ by 2025 at the latest , unless they have a clear plan to phase out all related activity by 2030 .
Read more : Bank of England to review climate impact of corporate bond-buying after crisis Chief investment officer Mark Fawcett said : “ Just like coronavirus , climate change poses serious risks to both our savers and their investments .
It has the potential to cause catastrophic damage and completely disrupt our way of life .
No-one wants to save throughout their life to retire into a world devastated by climate change.
@ @ @ @ @ @ @ economy slowly recovers from coronavirus , we want to ensure this recovery is a green one .
We have a unique opportunity to support sustainable growth and transition towards a low-carbon economy.
” Nest also said it would also invest more of its assets into green infrastructure such as renewable energy and push its external fund managers to help it halve emissions in a decade .
Get the news as it happens by following City A.M. on Twitter .

UK pension scheme invests £5.5bn into ‘environmentally friendly strategies’
Britain’s largest pension scheme Nest has pledged to tighten its climate change policy with an investment of £5.5bn into environmentally friendly strategies.
The government-backed scheme said it would decarbonise its £12bn investment portfolio in a bid to tackle climate change. Nest said it aims to be “net-zero” across its investments by 2050 or earlier, with the expectation that carbon emissions in its portfolio will halve by 2030.
A number of institutional investors and asset managers, notably Blackrock, have spoken out about global warming. The fund manager revealed huge changes at the start of the year in an attempt to position itself as a leader in sustainable investment.
Nest has said it will move £5.5bn of shares into “climate aware” strategies, which will represent 45 per cent of the scheme’s entire portfolio. It said it would reduce Nest’s carbon footprint “by the equivalent of taking 200,000 cars off the road”.
It said it will also start divesting from companies involved in thermal coal, oil sands and arctic drilling and be completely divested by 2025 at the latest, unless they have a clear plan to phase out all related activity by 2030.
Chief investment officer Mark Fawcett said: “Just like coronavirus, climate change poses serious risks to both our savers and their investments. It has the potential to cause catastrophic damage and completely disrupt our way of life. No-one wants to save throughout their life to retire into a world devastated by climate change.”
“As the world’s economy slowly recovers from coronavirus, we want to ensure this recovery is a green one. We have a unique opportunity to support sustainable growth and transition towards a low-carbon economy.”
Nest also said it would also invest more of its assets into green infrastructure such as renewable energy and push its external fund managers to help it halve emissions in a decade.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-07-29--Corporate spy firm tries to clean up 'James Bond' industry's image

Technology firm Ground Truth Intelligence ( GTI ) has today launched its ethical investigations platform in London , as the company seeks to shake-up the corporate intelligence industry following high-profile scandals involving companies such as Lekoil and Credit Suisse .
The London-headquartered firm is set to provide an “ alternative approach ” to the global intelligence and investigations industry , offering ethical and technology-led resources to banks , corporations and law firms in more than 200 jurisdictions .
Read more : The corporate intelligence industry needs to become more ethical and less like James Bond Stewart Kelly , founder and @ @ @ @ @ @ @ the intelligence industry a “ late bloomer ” in technology adoption , adding that its slow uptake has contributed to its “ impression as a murky , shady , mysterious James Bond industry ” .
Intelligence services are used by companies around the world to perform due diligence on employees , clients and business partners to make informed management decisions .
However , its reputation has suffered at the hands of several high-profile scandals , including the use of intelligence services by convicted sex offender Harvey Weinstein to smear and intimidate his victims @ @ @ @ @ @ @ the industry ’ s reputation , including Credit Suisse ’ s spying scandal last year , which led to the high-profile resignation of chief executive Tidjane Thiam .
The Swiss Bank was thrown in the spotlight after it emerged two former employees had been put under surveillance by a corporate espionage company .
Earlier this year , London-listed oil group Lekoil saw shares plunge more than 70 per cent after it fell victim to a high-stakes fraud , in which the Nigerian-focused firm paid middlemen to facilitate a bogus loan worth more than @ @ @ @ @ @ @ , GTI chief Kelly said the scandals had created an “ image of mystery ” around the corporate intelligence industry , when “ the reality is actually far more vanilla ” .
“ This type of work actually helps corporations combat corruption , helps banks combat financial crime [ and ] helps investigate wrongdoing .
So for every individual case where there ’ s a story of dodgy goings on or people going through bins or people following people in the Caribbean islands , there ’ s actually thousands and thousands of much @ @ @ @ @ @ @ his new investigations platform will utilise technology to help “ lift the veil of mystery ” in the industry and make investigations “ more streamlined , more efficient [ and ] more cost effective.
” “ The intelligence and investigations sector doesn ’ t make use of technology anywhere near as much as it could , ” said Kelly adding that it was “ crying out ” for reform .
Recent allegations surrounding British fast fashion firm Boohoo have once again thrust the investigations sector in the spotlight , after it was revealed @ @ @ @ @ @ @ clothes for the brand were paid as little as £3.50 an hour .
Boohoo denied any knowledge of claims , but opened a review into its working conditions .
Kelly said the revelations proved business needs to weed out the “ box check approach ” to due diligence processes .
Read more : British spies urged to use artificial intelligence to fight security threats “ How did all these investors invest in Boohoo and take their word for it ?
… You ’ ll find that in intelligence there ’ s still , @ @ @ @ @ @ @ box check approach .
[ They say ] ‘ we ’ ve got a report from the big name so everything must be fine.
’ ” Kelly added : “ When it comes to fraud and corruption , companies need to be demonstrating that they ’ re actually paying attention to these issues , rather just running a quick check and getting the green light.
” However , new GDPR rules have paved the way for a cleaner approach to corporate intelligence .
The fresh data rules , which came into effect in @ @ @ @ @ @ @ have the right to identify who is looking into them and the data they are gathering .
And the European Court of Justice ’ s decision earlier this month to ban a data sharing-deal between the US and the EU has lifted the threshold for surveillance laws in the UK .
The UK ’ s intelligence gathering laws will now likely be subject to similar scrutiny as those of the US , as Britain seeks to strike a data sharing deal with the EU post-Brexit .
Such an agreement will likely add pressure @ @ @ @ @ @ @ the corporate intelligence sector .
Kelly said : “ It may end up being slightly less James Bond , but recent scandals show that things need to change — and if ethics don ’ t get there first , then surely the pace of technology will.
” Before the Open : Get the jump on the markets with our early morning newsletter

Corporate spy firm tries to clean up ‘James Bond’ industry’s image
Technology firm Ground Truth Intelligence (GTI) has today launched its ethical investigations platform in London, as the company seeks to shake-up the corporate intelligence industry following high-profile scandals involving companies such as Lekoil and Credit Suisse.
The London-headquartered firm is set to provide an “alternative approach” to the global intelligence and investigations industry, offering ethical and technology-led resources to banks, corporations and law firms in more than 200 jurisdictions.
Stewart Kelly, founder and chief executive of GTI, has called the intelligence industry a “late bloomer” in technology adoption, adding that its slow uptake has contributed to its “impression as a murky, shady, mysterious James Bond industry”.
Intelligence services are used by companies around the world to perform due diligence on employees, clients and business partners to make informed management decisions.
However, its reputation has suffered at the hands of several high-profile scandals, including the use of intelligence services by convicted sex offender Harvey Weinstein to smear and intimidate his victims.
Several corporate blunders have also tarnished the industry’s reputation, including Credit Suisse’s spying scandal last year, which led to the high-profile resignation of chief executive Tidjane Thiam. The Swiss Bank was thrown in the spotlight after it emerged two former employees had been put under surveillance by a corporate espionage company.
Earlier this year, London-listed oil group Lekoil saw shares plunge more than 70 per cent after it fell victim to a high-stakes fraud, in which the Nigerian-focused firm paid middlemen to facilitate a bogus loan worth more than $184m.
Speaking to City A.M, GTI chief Kelly said the scandals had created an “image of mystery” around the corporate intelligence industry, when “the reality is actually far more vanilla”.
“This type of work actually helps corporations combat corruption, helps banks combat financial crime [and] helps investigate wrongdoing. So for every individual case where there’s a story of dodgy goings on or people going through bins or people following people in the Caribbean islands, there’s actually thousands and thousands of much more normal routine cases.”
Kelly said his new investigations platform will utilise technology to help “lift the veil of mystery” in the industry and make investigations “more streamlined, more efficient [and] more cost effective.”
“The intelligence and investigations sector doesn’t make use of technology anywhere near as much as it could,” said Kelly adding that it was “crying out” for reform.
Recent allegations surrounding British fast fashion firm Boohoo have once again thrust the investigations sector in the spotlight, after it was revealed that workers at a garment factory producing clothes for the brand were paid as little as £3.50 an hour.
Boohoo denied any knowledge of claims, but opened a review into its working conditions.
Kelly said the revelations proved business needs to weed out the “box check approach” to due diligence processes.
“How did all these investors invest in Boohoo and take their word for it?… You’ll find that in intelligence there’s still, in some cases, this kind of box check approach. [They say] ‘we’ve got a report from the big name so everything must be fine.’”
Kelly added: “When it comes to fraud and corruption, companies need to be demonstrating that they’re actually paying attention to these issues, rather just running a quick check and getting the green light.”
However, new GDPR rules have paved the way for a cleaner approach to corporate intelligence. The fresh data rules, which came into effect in 2018, mean targets of investigations now have the right to identify who is looking into them and the data they are gathering.
And the European Court of Justice’s decision earlier this month to ban a data sharing-deal between the US and the EU has lifted the threshold for surveillance laws in the UK.
The UK’s intelligence gathering laws will now likely be subject to similar scrutiny as those of the US, as Britain seeks to strike a data sharing deal with the EU post-Brexit.
Such an agreement will likely add pressure to the increasing need for transparency in the corporate intelligence sector.
Kelly said: “It may end up being slightly less James Bond, but recent scandals show that things need to change — and if ethics don’t get there first, then surely the pace of technology will.”
Before the Open: Get the jump on the markets with our early morning newsletter


cityam--2020-07-29--UK just weeks away from signing Japan free trade deal

The UK is on the verge of signing a free trade deal with Japan , with the agreement set to be closed within a matter of weeks .
Negotiations , which began just six weeks ago , have reportedly reached a breakthrough point with the dialogue at an “ advanced stage ” , according to a government source .
Read more : Japan gives UK just six weeks to secure post-Brexit trade deal The Sun reports that the deal will be implemented on 1 January 2021 , when the UK leaves the EU customs union and single market , and @ @ @ @ @ @ @ electronic devices exported to the UK .
British cars are also set to have reduced tariffs to make them cheaper for the Japanese market .
It comes after Tokyo ’ s chief negotiator Hiroshi Matsuura told the Financial Times on 23 June that he wanted to wrap a trade deal up in six weeks and that both parties would have to “ limit their ambitions ” .
Before the Open newsletter : Start your day with the City View podcast and key market data The framework of the new deal is based off @ @ @ @ @ @ @ but with a further reduction or elimination of Japanese tariffs on British goods .
There is also expected to be increased access to Japanese markets for British companies .
City A.M. revealed in May that an agreement could provide a £383m boost to London ’ s economy every year .
Speaking last month , Matsuura said : “ To avoid a gap in January , we must pass this in the autumn session of the Diet [ the Japanese parliament ] .
“ That means we must complete negotiations by the end of @ @ @ @ @ @ @ reportedly believes post-Brexit trade deal is possible The Japanese trade talks are happening alongside negotiations for other trade deals with the US , the EU , Australia and New Zealand .
The deadline for a UK-EU trade deal is 31 December , however talks have stalled over disagreements on EU access to UK fishing waters and business competition regulations known as the level playing field .

UK just weeks away from signing Japan free trade deal
International Trade Secretary Liz Truss arrives at the Foreign and Commonwealth office
The UK is on the verge of signing a free trade deal with Japan, with the agreement set to be closed within a matter of weeks.
Negotiations, which began just six weeks ago, have reportedly reached a breakthrough point with the dialogue at an “advanced stage”, according to a government source.
The Sun reports that the deal will be implemented on 1 January 2021, when the UK leaves the EU customs union and single market, and will see a reduced tariffs for Japanese electronic devices exported to the UK.
British cars are also set to have reduced tariffs to make them cheaper for the Japanese market.
It comes after Tokyo’s chief negotiator Hiroshi Matsuura told the Financial Times on 23 June that he wanted to wrap a trade deal up in six weeks and that both parties would have to “limit their ambitions”.
Before the Open newsletter: Start your day with the City View podcast and key market data
The framework of the new deal is based off the EU-Japan deal struck last year, but with a further reduction or elimination of Japanese tariffs on British goods.
There is also expected to be increased access to Japanese markets for British companies.
City A.M. revealed in May that an agreement could provide a £383m boost to London’s economy every year.
Speaking last month, Matsuura said: “To avoid a gap in January, we must pass this in the autumn session of the Diet [the Japanese parliament].
“That means we must complete negotiations by the end of July.”
The Japanese trade talks are happening alongside negotiations for other trade deals with the US, the EU, Australia and New Zealand.
The deadline for a UK-EU trade deal is 31 December, however talks have stalled over disagreements on EU access to UK fishing waters and business competition regulations known as the level playing field.


cityam--2020-07-29--Rising demand boosts Spotify to 138m paid users

Spotify said today it had recovered from a coronavirus-related damp start to the second quarter , beating Wall Street expectations to report 138m in paid users .
Subscribers to its Premium service , which accounts for most of the company ’ s revenue , were up 27 per cent from a year earlier .
Analyst had on average forecast the company to have 136.4m paid subscribers in the three months to the end of June , according to IBES data from Refinitiv .
Revenue rose 13 per cent to €1.89bn , up from from 1.67bn euros a year earlier .
@ @ @ @ @ @ @ to €167bn up from €17bn at the end of March this year as costs jumped 48 per cent .
Spotify largely put this down to a boom in its share price in tandem with a higher than expected rise in social charges , referring to the taxes it pays when employees exercise stock options or other benefits .
Spotfiy ’ s share price has risen approximately 80 per cent since the start of 2020 , but fell three per cent afternoon in pre-market trading .
Its total monthly active users — which includes @ @ @ @ @ @ @ 29 per cent year-on-year to 299m , coming in at the top of Spotify ’ s previous guidance range .
Spotify said it had been a rocky start to the quarter with the economic impact of coronavirus prompting slower than expected growth in April and May , with lower rates of sign-ups , an increase in churn , and increases in payment failures from Premium users .
Read more : Simon Cowell buys out Sony Music Entertainment from joint venture However a significant rebound in June with stronger than expected growth in North @ @ @ @ @ @ @ ’ s fortunes .
“ Our strength in North America and other areas more than offset the slow start to the quarter , ” said Spotify in a statement to investors .
“ Additionally , we believe the improved momentum we saw in the back half of the quarter has continued into [ the third quarter ] and we expect to hit our full-year targets.
” Spotify added that global consumption hours — referring to the amount of time spent by users on the platform — have recovered to pre-Covid levels across all @ @ @ @ @ @ @ America .

Rising demand boosts Spotify to 138m paid users
Spotify among apps hit by internet outage.
Spotify said today it had recovered from a coronavirus-related damp start to the second quarter, beating Wall Street expectations to report 138m in paid users.
Subscribers to its Premium service, which accounts for most of the company’s revenue, were up 27 per cent from a year earlier.
Analyst had on average forecast the company to have 136.4m paid subscribers in the three months to the end of June, according to IBES data from Refinitiv.
Revenue rose 13 per cent to €1.89bn, up from from 1.67bn euros a year earlier.
However its losses spiked dramatically, rising to €167bn up from €17bn at the end of March this year as costs jumped 48 per cent.
Spotify largely put this down to a boom in its share price in tandem with a higher than expected rise in social charges, referring to the taxes it pays when employees exercise stock options or other benefits.
Spotfiy’s share price has risen approximately 80 per cent since the start of 2020, but fell three per cent afternoon in pre-market trading.
Its total monthly active users — which includes those on its free subscriptions — grew 29 per cent year-on-year to 299m, coming in at the top of Spotify’s previous guidance range.
Spotify said it had been a rocky start to the quarter with the economic impact of coronavirus prompting slower than expected growth in April and May, with lower rates of sign-ups, an increase in churn, and increases in payment failures from Premium users.
However a significant rebound in June with stronger than expected growth in North America reversed the Swedish music streaming firm’s fortunes.
“Our strength in North America and other areas more than offset the slow start to the quarter,” said Spotify in a statement to investors.
“Additionally, we believe the improved momentum we saw in the back half of the quarter has continued into [the third quarter] and we expect to hit our full-year targets.”
Spotify added that global consumption hours — referring to the amount of time spent by users on the platform — have recovered to pre-Covid levels across all regions, with the exception of Latin America.


cityam--2020-07-29--Rio Tinto touts 'V-shaped' China recovery as it beats profit expectations

Rio Tinto said today it saw a sharp V-shaped recovery in China as stimulus spurred industrial activity , helping its first-half profit handily beat market expectations .
Rio Tinto is the first of the major iron ore miners to report results from a first half marked by coronavirus-induced disruptions but also by high iron ore prices .
“ We believe that China has enjoyed a very steep V-shaped recovery , ” chief executive Jean-Sébastien Jacques said on a call .
“ Today we see it as that the demand for steel and iron ore in China is very , very @ @ @ @ @ @ @ ” Jacques said .
Read more : Rio Tinto returns record dividend as firm warns of coronavirus impact That rebound helped it report half-year underlying earnings of $ 4.75bn , beating a consensus of $ 4.36bn from 16 analysts compiled by Vuma .
Iron ore accounted for 96 per cent of Rio ’ s underlying earnings .
Rio Tinto declared a record dividend of $ 1.55 per share , up from $ 1.51 last year and bang on expectations but refrained from paying out a special dividend as some analysts had hoped , @ @ @ @ @ @ @ remainder of the year .
“ For Rio to post such strong results in a challenging period really does reinforce the consistent cash and dividend investment case that it has built over recent years , ” said analyst Tyler Broda of RBC .
The London-listed shares of the world ’ s largest iron ore miner were up 1.3 per cent this morning .
The demand recovery story outside China remained uncertain , Jacques said .
“ In other major economies like the US and Europe , the recovery is much more tentative , @ @ @ @ @ @ @ remain over the trajectory of consumer spending globally in the face of significant levels of unemployment.
” Rio Tinto said in its earnings statement that it had taken a $ 1bn impairment charge , largely related to four of its aluminium smelters as well as its Diavik diamond mine in Canada .
High power prices forced Rio Tinto to close its New Zealand smelter this year and to ask Icelandic regulators to address what it called discriminatory power pricing for its ISAL smelter .
“ We are having a lot of private conversations @ @ @ @ @ @ @ Those are challenging conversations , there is no doubt about it , and we are working hard in order to find a solution , ” Jacques said .
Free cash flow tumbled 28 per cent as the miner spent more on development projects and tax payments , but analysts at Jefferies remained upbeat about its prospects .
Higher metal prices and relatively stable unit costs should help free cash flow improve sequentially in the second half , they said , and suggested Rio could pay a special dividend with its full-year results .
@ @ @ @ @ @ @ to list on AIM market after £42.5m raise “ We have continued to pay the same level of taxes , same level of employment , the same dividend , ” chief financial officer Jakob Stausholm told Reuters .
“ But for a special dividend , it ’ s better to wait a moment to make such considerations.
” Jacques said he will front an Australian Senate enquiry next week over Rio Tinto ’ s destruction of two sacred caves of historic significance in Western Australia .
The results from a separate board-led review @ @ @ @ @ @ @ in October .
Rio Tinto expects Guinea ’ s giant Simandou iron ore reserve to be developed , as China looks to diversify its sourcing away from the Australians and Vale in Brazil .
Guinea in June signed an agreement with a consortium for the development of the giant reserve after it won a $ 14bn tender last November to develop the blocks which hold more than 2bn tonnes of high-grade ore .

Rio Tinto touts ‘V-shaped’ China recovery as it beats profit expectations
Rio Tinto’s former CEO departed the FTSE miner after a botched internal report into the destruction of a sacred Western Australian site, Juukan Gorge
Rio Tinto said today it saw a sharp V-shaped recovery in China as stimulus spurred industrial activity, helping its first-half profit handily beat market expectations.
Rio Tinto is the first of the major iron ore miners to report results from a first half marked by coronavirus-induced disruptions but also by high iron ore prices.
“We believe that China has enjoyed a very steep V-shaped recovery,” chief executive Jean-Sébastien Jacques said on a call.
“Today we see it as that the demand for steel and iron ore in China is very, very strong and order books are full,” Jacques said.
That rebound helped it report half-year underlying earnings of $4.75bn, beating a consensus of $4.36bn from 16 analysts compiled by Vuma.
Iron ore accounted for 96 per cent of Rio’s underlying earnings.
Rio Tinto declared a record dividend of $1.55 per share, up from $1.51 last year and bang on expectations but refrained from paying out a special dividend as some analysts had hoped, suggesting a more cautious view for the remainder of the year.
“For Rio to post such strong results in a challenging period really does reinforce the consistent cash and dividend investment case that it has built over recent years,” said analyst Tyler Broda of RBC.
The London-listed shares of the world’s largest iron ore miner were up 1.3 per cent this morning.
The demand recovery story outside China remained uncertain, Jacques said.
“In other major economies like the US and Europe, the recovery is much more tentative,” he said.
“Big questions remain over the trajectory of consumer spending globally in the face of significant levels of unemployment.”
Rio Tinto said in its earnings statement that it had taken a $1bn impairment charge, largely related to four of its aluminium smelters as well as its Diavik diamond mine in Canada.
High power prices forced Rio Tinto to close its New Zealand smelter this year and to ask Icelandic regulators to address what it called discriminatory power pricing for its ISAL smelter.
Its Australian aluminium businesses remains under review.
“We are having a lot of private conversations for all our smelters in Aus. Those are challenging conversations, there is no doubt about it, and we are working hard in order to find a solution,” Jacques said.
Free cash flow tumbled 28 per cent as the miner spent more on development projects and tax payments, but analysts at Jefferies remained upbeat about its prospects.
Higher metal prices and relatively stable unit costs should help free cash flow improve sequentially in the second half, they said, and suggested Rio could pay a special dividend with its full-year results.
“We have continued to pay the same level of taxes, same level of employment, the same dividend,” chief financial officer Jakob Stausholm told Reuters.
“But for a special dividend, it’s better to wait a moment to make such considerations.”
Jacques said he will front an Australian Senate enquiry next week over Rio Tinto’s destruction of two sacred caves of historic significance in Western Australia. The results from a separate board-led review into the incident is due to conclude in October.
Rio Tinto expects Guinea’s giant Simandou iron ore reserve to be developed, as China looks to diversify its sourcing away from the Australians and Vale in Brazil.
Guinea in June signed an agreement with a consortium for the development of the giant reserve after it won a $14bn tender last November to develop the blocks which hold more than 2bn tonnes of high-grade ore.


cityam--2020-07-29--Mr Kipling owner Premier Foods reports sales jump due to surge in home cooking

Premier Foods , the owner of Mr Kipling and Bisto , said sales soared during lockdown as consumers cooked more meals due to home working and the closure of restaurants and cafes .
Group sales in the 13 weeks to 27 June increased 22.5 per cent compared to the previous year , with branded sales up 27 per cent .
In the UK business total sales were up 23 per cent and branded sales were 27.9 per cent ahead of last year as demand for grocery products soared .
The company ’ s grocery business reported sales of £162.1m during @ @ @ @ @ @ @ their range of home cooked meals as lockdown restrictions continued .
All of the group ’ s brands reported double-digit sales growth compared to last year , with Ambrosia custard , Oxo stockcubes and Asian food brand Sharwood ’ s performing the best .
Nissin noodles were also popular , with sales more than doubling during the quarter , along with Premier Foods ’ Cadbury cake mixes as Brits experimented with baking during lockdown .
Growth continued throughout the quarter but sales were stronger at the beginning of the period , Premier Foods @ @ @ @ @ @ @ have started strongly , the firm said , although the group expects growth to normalise as consumers return to restaurants , cafes and offices .
Chief executive Alex Whitehouse said : “ As expected , we continued to see strong demand for our grocery brands in the first quarter , with consumers eating the vast majority of their meals at home .
“ We have grown faster than our categories during this period , both in standard retail and online channels .
This reflects not only the strength of our market leading brands @ @ @ @ @ @ @ colleagues across the supply chain to ensure product availability while working in close collaboration with our customers to meet this elevated demand .
”

Mr Kipling owner Premier Foods reports sales jump due to surge in home cooking
Premier Foods, the owner of Mr Kipling and Bisto, said sales soared during lockdown as consumers cooked more meals due to home working and the closure of restaurants and cafes.
Group sales in the 13 weeks to 27 June increased 22.5 per cent compared to the previous year, with branded sales up 27 per cent.
In the UK business total sales were up 23 per cent and branded sales were 27.9 per cent ahead of last year as demand for grocery products soared.
The company’s grocery business reported sales of £162.1m during the quarter as customers sought to expand their range of home cooked meals as lockdown restrictions continued.
All of the group’s brands reported double-digit sales growth compared to last year, with Ambrosia custard, Oxo stockcubes and Asian food brand Sharwood’s performing the best.
Nissin noodles were also popular, with sales more than doubling during the quarter, along with Premier Foods’ Cadbury cake mixes as Brits experimented with baking during lockdown.
Growth continued throughout the quarter but sales were stronger at the beginning of the period, Premier Foods said.
Sales in the second quarter have started strongly, the firm said, although the group expects growth to normalise as consumers return to restaurants, cafes and offices.
Chief executive Alex Whitehouse said: “As expected, we continued to see strong demand for our grocery brands in the first quarter, with consumers eating the vast majority of their meals at home.
“We have grown faster than our categories during this period, both in standard retail and online channels. This reflects not only the strength of our market leading brands but also the excellent performance of our colleagues across the supply chain to ensure product availability while working in close collaboration with our customers to meet this elevated demand.”