cityam--2020-05-13--Starling and Funding Circle to provide £300m in small business loans

Starling Bank and Funding Circle today said they have teamed up to provide £300m in loans to small firms under the coronavirus business interruption loan scheme ( CBILS ) .
Starling will lend through Funding Circle alongside other institutional investors , granting access to funding for more than 4,000 small businesses across the UK .
Read more : Coronavirus : A third of small firms fear collapse amid redundancy plans Both fintech firms have been accredited for CBILS and opened for applications last month from businesses that have been hit by the pandemic .
The companies said the partnership will @ @ @ @ @ @ @ businesses more quickly .
In addition to providing CBILS loans — which are available to companies with a turnover of up to £5m , Starling is also participating in the bounce back loans scheme ( BBLS ) , which provides loans of between £2,000 and £50,000 to small companies .
“ This partnership with Funding Circle provides us with another outlet , on top of our own CBILS and BBLS lending , to help meet the needs of business owners affected by coronavirus , ” said Starling chief executive Anne Boden .
“ @ @ @ @ @ @ @ the Fintech industry pulling together to meet a very urgent need.
” Lisa Jacobs , UK managing director at Funding Circle , said : “ Small businesses form the backbone of the UK economy and will be at the heart of the nation ’ s future recovery .
“ This partnership will help to ensure the UK ’ s vital small business community has the financial firepower required to not only survive this period , but to go on and thrive.
” Chancellor Rishi Sunak yesterday announced that the UK banking and finance @ @ @ @ @ @ @ to more than 300,000 businesses through three government-backed coronavirus loan schemes .
In the week since the bounce back loan scheme ( BBLS ) launched , £8.4bn has been approved to 268,173 businesses – an average of 38,000 loans a day .
Meanwhile lenders have provided £6.1bn through CBILS , according to figures from UK Finance .

Starling and Funding Circle to provide £300m in small business loans
Starling Bank and Funding Circle today said they have teamed up to provide £300m in loans to small firms under the coronavirus business interruption loan scheme (CBILS).
Starling will lend through Funding Circle alongside other institutional investors, granting access to funding for more than 4,000 small businesses across the UK.
Both fintech firms have been accredited for CBILS and opened for applications last month from businesses that have been hit by the pandemic.
The companies said the partnership will allow them to distribute more money to businesses more quickly.
In addition to providing CBILS loans — which are available to companies with a turnover of up to £5m, Starling is also participating in the bounce back loans scheme (BBLS), which provides loans of between £2,000 and £50,000 to small companies.
“This partnership with Funding Circle provides us with another outlet, on top of our own CBILS and BBLS lending, to help meet the needs of business owners affected by coronavirus,” said Starling chief executive Anne Boden.
“It’s a great example of the Fintech industry pulling together to meet a very urgent need.”
Lisa Jacobs, UK managing director at Funding Circle, said: “Small businesses form the backbone of the UK economy and will be at the heart of the nation’s future recovery.
“This partnership will help to ensure the UK’s vital small business community has the financial firepower required to not only survive this period, but to go on and thrive.”
Chancellor Rishi Sunak yesterday announced that the UK banking and finance industry has so far provided almost £15bn to more than 300,000 businesses through three government-backed coronavirus loan schemes.
In the week since the bounce back loan scheme (BBLS) launched, £8.4bn has been approved to 268,173 businesses – an average of 38,000 loans a day. Meanwhile lenders have provided £6.1bn through CBILS, according to figures from UK Finance.


cityam--2020-05-13--Scrapping the furlough scheme would have been a disaster

Businesses can breathe a little easier today .
Fears that the Chancellor would cut back on the furlough scheme that is subsidising wages for a million businesses were put to rest as he confirmed that it would run into the Autumn .
After days of mixed messages , Rishi Sunak ’ s reassurances that the withdrawal of support would not outpace the withdrawal of lockdown and social distancing measures is welcome .
In truth , the Chancellor had little choice .
The alternatives – floated in the press – were unthinkable .
Complaints that employers had become ‘ addicted ’ @ @ @ @ @ @ @ Government actively encouraged widespread take-up in order to protect businesses and household incomes .
It is thanks to this scheme that we have avoided a massive wave of redundancies .
Prematurely cutting back support would simply have triggered that wave and weakened businesses ’ ability to bounce back when the time comes .
The Chancellor understands this , and it is good that he has held his nerve .
While the headlines have focussed on the scheme ’ s five-month extension , another fundamental shift is the introduction of short-time working from August @ @ @ @ @ @ @ businesses shut down for at least another ten weeks and uncertainty about how consumers will behave when they re-open , flexible support will be vital .
Short-time working will allow businesses to re-open gradually and flex staffing in line with demand .
This was Reform think tank ’ s key recommendation for the next phase of the scheme , and could see millions of jobs protected .
It is far better to have two people remaining in employment working part-time than one person working full time and the other being laid off .
@ @ @ @ @ @ @ detail for changes coming in from August , but there are two issues on which the Chancellor has so far been silent : targeting and fraud .
With a potential price tag of £100 billion , the Government should urgently consider how to ensure taxpayers ’ funds are being spent appropriately .
Currently , the UK has not attached any eligibility criteria to the JRS .
Any businesses – regardless of the scale of the financial hit it has taken – can furlough staff and claim the generous subsidy .
This stands in @ @ @ @ @ @ @ France employers have to prove that they have been forced to close or reduce activity .
Danish companies have to show that they would have needed to make 30 per cent or over 50 employees redundant .
And in Sweden , companies accessing support must show temporary and serious financial difficulties .
It makes absolute sense that a restaurant told to close its doors in March should be able to access support for as long as trading is affected , but it is questionable whether global law firms or hedge funds need taxpayer @ @ @ @ @ @ @ support should be more targeted .
The Government should also ramp up its efforts to prevent fraud .
As with any large Government grant scheme , the Job Retention Scheme is vulnerable to abuse .
There is already anecdotal evidence that some unscrupulous employers are furloughing workers but still requiring them to work .
In Germany , where short-time working is allowed , businesses are required to fill in time sheets for their workers that can be audited .
And both employers and employees can be held liable for any fraudulent claims .
@ @ @ @ @ @ @ be issued .
HMRC should send a similarly clear message that fraudsters will be pursued with heavy penalties .
In France and Sweden there are criminal consequences , advertised clearly , for those who flout the rules .
HMRC should be equally clear on the consequences of abusing the system , and advertise them widely – something which does not , to date , appear to have been a priority .
The Government has once again held to its promise to do “ whatever it takes ” to get businesses and workers through @ @ @ @ @ @ @ .
But the Chancellor must ensure that this commendable approach is not in fact free cash for all .

Scrapping the furlough scheme would have been a disaster
Businesses can breathe a little easier today. Fears that the Chancellor would cut back on the furlough scheme that is subsidising wages for a million businesses were put to rest as he confirmed that it would run into the Autumn. After days of mixed messages, Rishi Sunak’s reassurances that the withdrawal of support would not outpace the withdrawal of lockdown and social distancing measures is welcome.
In truth, the Chancellor had little choice. The alternatives – floated in the press – were unthinkable.
Read more: Sunak announces extension to furlough scheme
Complaints that employers had become ‘addicted’ to state aid were misguided. The Government actively encouraged widespread take-up in order to protect businesses and household incomes. It is thanks to this scheme that we have avoided a massive wave of redundancies.
Prematurely cutting back support would simply have triggered that wave and weakened businesses’ ability to bounce back when the time comes. The Chancellor understands this, and it is good that he has held his nerve.
While the headlines have focussed on the scheme’s five-month extension, another fundamental shift is the introduction of short-time working from August. With retail, hospitality and leisure businesses shut down for at least another ten weeks and uncertainty about how consumers will behave when they re-open, flexible support will be vital.
Short-time working will allow businesses to re-open gradually and flex staffing in line with demand. This was Reform think tank’s key recommendation for the next phase of the scheme, and could see millions of jobs protected. It is far better to have two people remaining in employment working part-time than one person working full time and the other being laid off.
We are yet to see the precise detail for changes coming in from August, but there are two issues on which the Chancellor has so far been silent: targeting and fraud. With a potential price tag of £100 billion, the Government should urgently consider how to ensure taxpayers’ funds are being spent appropriately.
Currently, the UK has not attached any eligibility criteria to the JRS. Any businesses – regardless of the scale of the financial hit it has taken – can furlough staff and claim the generous subsidy. This stands in stark contrast to other countries.
In France employers have to prove that they have been forced to close or reduce activity. Danish companies have to show that they would have needed to make 30 per cent or over 50 employees redundant. And in Sweden, companies accessing support must show temporary and serious financial difficulties.
It makes absolute sense that a restaurant told to close its doors in March should be able to access support for as long as trading is affected, but it is questionable whether global law firms or hedge funds need taxpayer subsidies. In the next phase, support should be more targeted.
The Government should also ramp up its efforts to prevent fraud. As with any large Government grant scheme, the Job Retention Scheme is vulnerable to abuse. There is already anecdotal evidence that some unscrupulous employers are furloughing workers but still requiring them to work.
In Germany, where short-time working is allowed, businesses are required to fill in time sheets for their workers that can be audited. And both employers and employees can be held liable for any fraudulent claims. Fines of up to €10 million can be issued.
HMRC should send a similarly clear message that fraudsters will be pursued with heavy penalties. In France and Sweden there are criminal consequences, advertised clearly, for those who flout the rules.
HMRC should be equally clear on the consequences of abusing the system, and advertise them widely – something which does not, to date, appear to have been a priority.
The Government has once again held to its promise to do “whatever it takes” to get businesses and workers through this crisis. That’s welcome. But the Chancellor must ensure that this commendable approach is not in fact free cash for all.


cityam--2020-05-13--Why staying close to your accountant matters more now

Accountants exist to ensure the accuracy of financial statements and advise how to save money or boost revenue .
The coronavirus pandemic , then , with its profound and deepening impact on the economy has jolted the profession like all others .
Depending on their role , accountants have been battling to keep on top of the unprecedented flurry of government schemes and announcements , while concerns potentially mount about their own employer ’ s financial health .
Accountants , after all , can be furloughed , too .
With cashflow tight-to-non-existent for many businesses , the temptation to cut @ @ @ @ @ @ @ much to resist .
But good accountants ’ services also have heightened relative value in these tough times .
Navigating the stormy seas Accountants should be “ at the heart of business ’ s ability to survive the pandemic , to recover and then to grow again , ” says Mike Suffield , director of professional insights at global professional accountancy body ACCA ( the Association of Chartered Certified Accountants ) .
“ Accountants help navigate the government support available , manage liquidity and cashflow in the near term , ” he explains @ @ @ @ @ @ @ review business models as organisations adapt and look to identify opportunities as they and the economy emerge from the pandemic.
” Michael Izza is chief executive of the Institute of Chartered Accountants in England and Wales ( ICAEW ) , which has about 130,000 individual members in the UK , working in and advising more than three million businesses .
Izza says he has been struck by how ICAEW members “ have been providing a kind of triage service to smaller businesses , where people have put their lives ’ work into their @ @ @ @ @ @ @ have no revenue.
” “ So , chartered accountants , ” he says , “ have been providing a ‘ shoulder to cry on ’ where necessary , looking to see what can be done from firms ’ own resources , then looking at what government schemes can help.
” ‘ Proving their worth ’ during coronavirus Smaller businesses , particularly micro-business , can view their accountant as a distant helping-hand doing little more than bring order to end-of-year accounts .
But the unprecedented situation created by coronavirus is an opportunity for them @ @ @ @ @ @ @ Chartered accountants can help present applications for the Coronavirus Job Retention Scheme ( CJRS ) or , if the firm is big enough , the Coronavirus Business Interruption Loan Scheme , though the Bounce Back Loan Scheme has been more successful , ” says Izza , who adds that grants available through local authorities have been “ fabulous , coming through very quickly.
” The reality is , though , that chartered accountants also have to worry about their own business .
“ People tend to talk about the Big Four [ accountancy @ @ @ @ @ @ @ .
By and large they are doing pretty well and really proving their worth.
” Government help keeps flowing – chancellor Rishi Sunak yesterday extended the CJRS until October – but Izza does not sugar-coat the challenges ahead : “ Despite the government ’ s best efforts , many businesses will not survive .
We ’ re going to lose tens of thousands of businesses – perhaps hundreds of thousands .
That ’ s the sobering reality .
And we ’ re not going to get a ‘ bounce back ’ .
It @ @ @ @ @ @ @ get back to 2019 levels , if at all .
But 2021 could be just as bad as things deferred , such as VAT , have to be paid.
” For business-owners uncertain about that extra pair of hands , particularly in these challenging times , Izza ’ s view is clear : “ If you view your chartered accountant as a luxury , you ’ re probably missing the complexity they can help you navigate through – how to present your case , and informing you of government help that you ’ @ @ @ @ @ @ @ can be fundamental to whether you make it or not.
” Looking ahead , webinars listed on the ICAEW ’ s website include talks on topics including ‘ Online fraud working from home – don ’ t be caught out ’ ; and a session on ‘ Brexit and lockdown in the EU : taxes , healthcare and legal residency for UK nationals ’ .
The appearance of the ‘ B ’ word serves as a reminder of an issue keeping many financial advisers busy long before the ‘ C ’ word came @ @

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Why staying close to your accountant matters more now
Chancellor of the Exchequer, Rishi Sunak
Accountants exist to ensure the accuracy of financial statements and advise how to save money or boost revenue.
The coronavirus pandemic, then, with its profound and deepening impact on the economy has jolted the profession like all others.
Depending on their role, accountants have been battling to keep on top of the unprecedented flurry of government schemes and announcements, while concerns potentially mount about their own employer’s financial health. Accountants, after all, can be furloughed, too.
With cashflow tight-to-non-existent for many businesses, the temptation to cut back on accounting costs may be too much to resist. But good accountants’ services also have heightened relative value in these tough times.
Navigating the stormy seas
Accountants should be “at the heart of business’s ability to survive the pandemic, to recover and then to grow again,” says Mike Suffield, director of professional insights at global professional accountancy body ACCA (the Association of Chartered Certified Accountants).
“Accountants help navigate the government support available, manage liquidity and cashflow in the near term,” he explains. “They will build forecasts and review business models as organisations adapt and look to identify opportunities as they and the economy emerge from the pandemic.”
Michael Izza is chief executive of the Institute of Chartered Accountants in England and Wales (ICAEW), which has about 130,000 individual members in the UK, working in and advising more than three million businesses.
Izza says he has been struck by how ICAEW members “have been providing a kind of triage service to smaller businesses, where people have put their lives’ work into their business and now all of a sudden have no revenue.”
“So, chartered accountants,” he says, “have been providing a ‘shoulder to cry on’ where necessary, looking to see what can be done from firms’ own resources, then looking at what government schemes can help.”
‘Proving their worth’ during coronavirus
Smaller businesses, particularly micro-business, can view their accountant as a distant helping-hand doing little more than bring order to end-of-year accounts. But the unprecedented situation created by coronavirus is an opportunity for them to help in other ways.
“Chartered accountants can help present applications for the Coronavirus Job Retention Scheme (CJRS) or, if the firm is big enough, the Coronavirus Business Interruption Loan Scheme, though the Bounce Back Loan Scheme has been more successful,” says Izza, who adds that grants available through local authorities have been “fabulous, coming through very quickly.”
The reality is, though, that chartered accountants also have to worry about their own business. “People tend to talk about the Big Four [accountancy firms] but we license 12,500 firms. By and large they are doing pretty well and really proving their worth.”
Government help keeps flowing – chancellor Rishi Sunak yesterday extended the CJRS until October – but Izza does not sugar-coat the challenges ahead: “Despite the government’s best efforts, many businesses will not survive. We’re going to lose tens of thousands of businesses – perhaps hundreds of thousands. That’s the sobering reality. And we’re not going to get a ‘bounce back’. It will probably take most of 2021 to get back to 2019 levels, if at all. But 2021 could be just as bad as things deferred, such as VAT, have to be paid.”
For business-owners uncertain about that extra pair of hands, particularly in these challenging times, Izza’s view is clear: “If you view your chartered accountant as a luxury, you’re probably missing the complexity they can help you navigate through – how to present your case, and informing you of government help that you’re able to claim. Their help can be fundamental to whether you make it or not.”
Looking ahead, webinars listed on the ICAEW’s website include talks on topics including ‘Online fraud working from home – don’t be caught out’; and a session on ‘Brexit and lockdown in the EU: taxes, healthcare and legal residency for UK nationals’.
The appearance of the ‘B’ word serves as a reminder of an issue keeping many financial advisers busy long before the ‘C’ word came along.


cityam--2020-05-13--Nissan to make restructuring cuts of $2.8bn - report

Japanese auto giant Nissan is preparing to make cuts of $ 2.8bn ( £2.3bn ) in fixed costs as part of its restructuring plan , as the firm prepares to make its first loss since the financial crisis .
Bloomberg reported that the company will announce the plan on 28 May after three years of falling profits at the Japanese firm .
Read more : Toyota expects profit to fall 80 per cent on coronavirus hit Cuts will be made in departments such as marketing and research , although the firm ’ s board has not yet reviewed the plans @ @ @ @ @ @ @ ’ s low-cost Datsun brand , which has been performing poorly in Asia and Russia , and closing one of its production lines .
A spokesperson for the company decline to comment on the report .
The firm ’ s financial performance had been suffering before the coronavirus crisis kicked in , due to the backfiring of an aggressive growth strategy by disgraced chief executive Carlos Ghosn .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Nissan ’ s problems @ @ @ @ @ @ @ which has seen car sales crash around the world .
At the end of April , Nissan warned that the pandemic could send it to a loss of 45bn yen ( £335m ) over the year .
The loss would be the company ’ s worst since the financial crisis , when it recorded a 137bn yen loss .
It had previously been reported that Nissan was considering a plan that would see it reduce its annual vehicle sales target to 1m .
Read more : Nissan set for first loss since 2008 @ @ @ @ @ @ @ to provide an update on its alliance with French giant Renault at the end of the month when it releases its financial results .
Relations between the two companies have been strained since the arrest of Ghosn last year , but both have affirmed their commitment to the partnership lately .

Nissan to make restructuring cuts of $2.8bn – report
Japanese auto giant Nissan is preparing to make cuts of $2.8bn (£2.3bn) in fixed costs as part of its restructuring plan, as the firm prepares to make its first loss since the financial crisis.
Bloomberg reported that the company will announce the plan on 28 May after three years of falling profits at the Japanese firm.
Cuts will be made in departments such as marketing and research, although the firm’s board has not yet reviewed the plans.
Other measures include shutting down Nissan’s low-cost Datsun brand, which has been performing poorly in Asia and Russia, and closing one of its production lines.
A spokesperson for the company decline to comment on the report.
The firm’s financial performance had been suffering before the coronavirus crisis kicked in, due to the backfiring of an aggressive growth strategy by disgraced chief executive Carlos Ghosn.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Nissan’s problems have been exacerbated by the crisis, which has seen car sales crash around the world.
At the end of April, Nissan warned that the pandemic could send it to a loss of 45bn yen (£335m) over the year.
The loss would be the company’s worst since the financial crisis, when it recorded a 137bn yen loss.
It had previously been reported that Nissan was considering a plan that would see it reduce its annual vehicle sales target to 1m.
The firm is also set to provide an update on its alliance with French giant Renault at the end of the month when it releases its financial results.
Relations between the two companies have been strained since the arrest of Ghosn last year, but both have affirmed their commitment to the partnership lately.


cityam--2020-05-13--Twitter allows staff to work from home permanently

Twitter has told employees they can work from home “ forever ” as the social media firm adapts to new working conditions caused by the Covid-19 pandemic .
In a company-wide email yesterday chief executive Jack Dorsey said Twitter had been one of the first adopters of the flexible working model and would allow staff to continue to work from home indefinitely .
Read more : Twitter posts rise in revenue despite Covid-19 advertising hit However , Twitter said employees would be able to return to its offices once they reopen , which is unlikely to be before September .
@ @ @ @ @ @ @ HR chief Jennifer Christie said the social media firm was “ uniquely positioned ” to allow its staff to work from home .
“ The past few months have proven we can make that work , ” she said .
“ So if our employees are in a role and situation that enables them to work from home and they want to continue to do so forever , we will make that happen.
” Twitter said that its office reopenings “ won ’ t be a snap back to the way it was @ @ @ @ @ @ @ intentional , office by office and gradual ” .
In addition , the company has scrapped all business travel before September “ with very few exceptions ” all in-person events for the rest of the year .
It said it will assess 2021 events later in the year .
Twitter has scaled back its hiring plans and reduced its planned expense growth — previously slated at 20 per cent — as a result of the coronavirus pandemic .
The company has also said plans to build a new data centre may be pushed @ @ @ @ @ @ @ the need to save cash .
The social media platform shrugged off a sharp decline in the advertising market to post a rise in revenue in the first quarter , spurred on by a 24 per cent rise in users to 166m .
However , the firm said it would not issue guidance for the second quarter due to “ unprecedented uncertainty and rapidly shifting market conditions ” .

Twitter allows staff to work from home permanently
Twitter has told employees they can work from home “forever” as the social media firm adapts to new working conditions caused by the Covid-19 pandemic.
In a company-wide email yesterday chief executive Jack Dorsey said Twitter had been one of the first adopters of the flexible working model and would allow staff to continue to work from home indefinitely.
However, Twitter said employees would be able to return to its offices once they reopen, which is unlikely to be before September.
In a blog post published yesterday Twitter HR chief Jennifer Christie said the social media firm was “uniquely positioned” to allow its staff to work from home.
“The past few months have proven we can make that work,” she said. “So if our employees are in a role and situation that enables them to work from home and they want to continue to do so forever, we will make that happen.”
Twitter said that its office reopenings “won’t be a snap back to the way it was before”, but “careful, intentional, office by office and gradual”.
In addition, the company has scrapped all business travel before September “with very few exceptions” all in-person events for the rest of the year. It said it will assess 2021 events later in the year.
Twitter has scaled back its hiring plans and reduced its planned expense growth — previously slated at 20 per cent — as a result of the coronavirus pandemic.
The company has also said plans to build a new data centre may be pushed back due to supply chain interruptions and the need to save cash.
The social media platform shrugged off a sharp decline in the advertising market to post a rise in revenue in the first quarter, spurred on by a 24 per cent rise in users to 166m.
However, the firm said it would not issue guidance for the second quarter due to “unprecedented uncertainty and rapidly shifting market conditions”.


cityam--2020-05-13--City Hall report: A quarter of London businesses on brink of collapse

Almost a quarter of London businesses are on the brink of collapse , according to new figures from City Hall .
A YouGov survey commissioned by City Hall ’ s London Growth Hub found 23 per cent of the capital ’ s businesses won ’ t last more than two months of the coronavirus lockdown , which began on 13 March .
The report found that five per cent said they could not last more than one month .
It also said that 36 per cent of London ’ s businesses would require rent relief over the next six months @ @ @ @ @ @ @ as the Office for National Statistics announced today that the UK ’ s economy contracted by two per cent in the first quarter .
This was on the back of a 5.8 per cent drop in GDP in March when the UK ’ s Covid-19 lockdown began .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
With GDP set to plummet in the second quarter , chancellor Rishi Sunak told The Telegraph today that Britain was set for a “ @ @ @ @ @ @ @ Sadiq Khan said he had written to Sunak and business secretary Alok Sharma to outline his concerns about the future of London ’ s private sector .
He said : “ I ’ ve written to the chancellor and the secretary of state for business to outline my concerns and urge them to continue to take whatever action is needed to support our economy and to fight off unemployment , homelessness and poverty .
“ That must urgently include more help for small and medium-sized businesses which are struggling to pay rent and @ @ @ @ @ @ @ grants .
“ The effects of the lockdown will be far-reaching and long-lasting .
minsters must give businesses the help they need to stay afloat to support the capital ’ s economic recovery in the future.
” Sunak extended the government ’ s job retention scheme yesterday to October , while also promising that no furloughed worker would see a dip in pay .
The scheme will stay the same until the end of July , with the government paying 80 per cent of wages up to £2,500 a month to furloughed workers @ @ @ @ @ @ @ be changes to the scheme , with employers asked to chip in to pay some of the 80 per cent and part-time workers allowed to claim on the scheme .

City Hall report: A quarter of London businesses on brink of collapse
A YouGov survey commissioned by City Hall’s London Growth Hub found 23 per cent of the capital’s businesses won’t last more than two months of the coronavirus lockdown.
Almost a quarter of London businesses are on the brink of collapse, according to new figures from City Hall.
A YouGov survey commissioned by City Hall’s London Growth Hub found 23 per cent of the capital’s businesses won’t last more than two months of the coronavirus lockdown, which began on 13 March.
The report found that five per cent said they could not last more than one month.
It also said that 36 per cent of London’s businesses would require rent relief over the next six months to stay open.
The report comes as the Office for National Statistics announced today that the UK’s economy contracted by two per cent in the first quarter.
This was on the back of a 5.8 per cent drop in GDP in March when the UK’s Covid-19 lockdown began.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
With GDP set to plummet in the second quarter, chancellor Rishi Sunak told The Telegraph today that Britain was set for a “significant recession”.
Mayor of London Sadiq Khan said he had written to Sunak and business secretary Alok Sharma to outline his concerns about the future of London’s private sector.
He said: “I’ve written to the chancellor and the secretary of state for business to outline my concerns and urge them to continue to take whatever action is needed to support our economy and to fight off unemployment, homelessness and poverty.
“That must urgently include more help for small and medium-sized businesses which are struggling to pay rent and making more companies eligible for government support grants.
“The effects of the lockdown will be far-reaching and long-lasting. minsters must give businesses the help they need to stay afloat to support the capital’s economic recovery in the future.”
Sunak extended the government’s job retention scheme yesterday to October, while also promising that no furloughed worker would see a dip in pay.
The scheme will stay the same until the end of July, with the government paying 80 per cent of wages up to £2,500 a month to furloughed workers.
From August to October there will be changes to the scheme, with employers asked to chip in to pay some of the 80 per cent and part-time workers allowed to claim on the scheme.


cityam--2020-05-13--Property stocks jump as restrictions on UK housing market ease

Estate agent and housebuilder stocks soared this morning after the government last night loosened lockdown restrictions on the UK housing market .
Shares in London estate agent Foxtons surged 8.31 per cent to 43.65p and online platform Purplebricks ’ stock soared 11 per cent to 37.86p .
Read more : How badly will coronavirus hit UK house prices in 2020 ?
LSL Property Services , the owner of Your Move and Reeds Rains , saw its stock rise 6.74 per cent after the government lifted restrictions on estate agents .
Shares in Barratt Developments jumped 1.8 per cent to 500.72p @ @ @ @ @ @ @ 1.99 per cent at 2,511p and McCarthy & Stone shares surged 3.56 per cent to 72.8p .
Berkeley Group ’ s share price was also up 2.78 per cent to 4,218p , making it the second biggest riser in the FTSE 100 this morning .
Some housebuilders had already restarted work on construction sites during the lockdown , with Crest Nicholson the latest to announce that building will begin this month .
The developer ’ s shares jumped 3.76 per cent following the announcement .
Taylor Wimpey was the first this morning to @ @ @ @ @ @ @ and show homes .
“ The housebuilding sector is in the vanguard of businesses returning to work as lockdown conditions are eased , ” said Russ Mould , investment director at AJ Bell .
“ The need to get Britain building again is arguably pretty acute as even a short disruption could set back attempts to build enough new homes to meet demand over the long term.
” Read more : UK house prices dip in April as coronavirus lockdown brings market to standstill He added : “ The next question will be @ @ @ @ @ @ @ and sell homes in the current uncertain environment .
“ The fact several builders managed to complete transactions and take reservations through the lockdown suggests an impressive degree of resilience in the housing market .
”

Property stocks jump as restrictions on UK housing market ease
The extension to the stamp duty holiday prompted a spike in house prices, Nationwide data showed
Estate agent and housebuilder stocks soared this morning after the government last night loosened lockdown restrictions on the UK housing market.
Shares in London estate agent Foxtons surged 8.31 per cent to 43.65p and online platform Purplebricks’ stock soared 11 per cent to 37.86p.
LSL Property Services, the owner of Your Move and Reeds Rains, saw its stock rise 6.74 per cent after the government lifted restrictions on estate agents.
Shares in Barratt Developments jumped 1.8 per cent to 500.72p, Bellway’s shares were up 1.99 per cent at 2,511p and McCarthy & Stone shares surged 3.56 per cent to 72.8p.
Berkeley Group’s share price was also up 2.78 per cent to 4,218p, making it the second biggest riser in the FTSE 100 this morning.
Some housebuilders had already restarted work on construction sites during the lockdown, with Crest Nicholson the latest to announce that building will begin this month.
The developer’s shares jumped 3.76 per cent following the announcement.
Taylor Wimpey was the first this morning to announce a plan to reopen sales offices and show homes.
“The housebuilding sector is in the vanguard of businesses returning to work as lockdown conditions are eased,” said Russ Mould, investment director at AJ Bell.
“The need to get Britain building again is arguably pretty acute as even a short disruption could set back attempts to build enough new homes to meet demand over the long term.”
He added: “The next question will be whether people feel confident enough to buy and sell homes in the current uncertain environment.
“The fact several builders managed to complete transactions and take reservations through the lockdown suggests an impressive degree of resilience in the housing market.”


cityam--2020-05-13--FTSE 100 falls as US-China tensions overshadow poor UK GDP

The FTSE 100 dropped today as fears of a second wave of coronavirus infections spooked traders doubts as US-China tensions rise over the pandemic .
The UK ’ s blue-chip stock index dropped 1.2 per cent after its open , before investors trimmed that to a 0.9 per cent fall .
This took the FTSE 100 below the 6,000 mark which it passed yesterday for only the second time during the Covid-19 outbreak .
It was trading at 5,938 by 11.30am .
Read more : Coronavirus : UK economy slumps two per cent in first quarter of 2020 Weighing on @ @ @ @ @ @ @ report .
It showed that the UK economy shrank at its fastest pace since the financial crisis .
And March saw GDP shrink by 5.8 per cent .
Markets had largely priced in a steep decline in activity , however .
Analysts said that US stocks ’ negativity over tensions with China hurt the FTSE 100 and Asian stocks today .
“ US markets had a miserable session last night with losses in the region of two per cent on the Dow Jones and S & P 500 , ” AJ Bell investment @ @ @ @ @ @ @ negativity extended across the UK , Europe and parts of Asia on Wednesday , with investors worried about a potential second wave of coronavirus infections.
” However , UK housebuilders stopped the FTSE 100 from falling further as miners , tobacco giants and banks fell .
Housebuilder Berkeley rose 2.6 per cent and Barratt Developments climbed 1.7 per cent as the government lifted restrictions on the property market .
Read more : Housebuilder Taylor Wimpey to reopen show homes and sales centres after government lifts restrictions Last night the government moved to allow @ @ @ @ @ @ @ view properties after banning such activity in April ’ s lockdown .
The announcement prompted London estate agent Foxtons to rocket 8.8 per cent today .
But FTSE 100-listed Taylor Wimpey fell narrowly despite telling investors it will reopen construction sites and take staff off furlough .
However , the FTSE 100 could not shake off negative sentiment as traders fear the extent of a second wave of coronavirus infections .
Asia has already seen a rise in new cases , prompting China to test all 11m inhabitants of coronavirus epicentre Wuhan .
@ @ @ @ @ @ @ 11m population after fresh coronavirus outbreak European stocks also slumped in morning trading too .
Germany ’ s Dax fell 1.3 per cent and France ’ s Cac index dropped almost 1.5 per cent .
And the continent-wide Stoxx 600 was down 1.1 per cent .
“ There is rising apprehension as various economies start to take baby steps out of lockdown that a secondary wave on infections , will cause politicians to slam on the brakes , ” Michael Hewson , chief market analyst at online trader CMC Markets , said .
@ @ @ @ @ @ @ to the wave of optimism that has seen equity markets trade strongly off their March lows ” .
Asia and US drop over fears of rise in infections Asian stocks struggled for direction overnight as investors reacted to new cases of coronavirus in countries that had their outbreaks under control .
Nonetheless , China ’ s CSI 300 index turned around earlier losses to rise 0.2 per cent .
Japan ’ s Nikkei fell 0.5 per cent , however .
Wall Street ’ s major indices fell around two per cent yesterday , @ @ @ @ @ @ @ That came after Republican senator Lindsey Graham dialled up the rhetoric against China .
Sentiment was also dented by medical chief Anthony Fauci .
He warned that opening up US states prematurely would lead to “ needless suffering and death ” .
His comments came with investors already jittery about small clusters of new coronavirus cases in China , South Korea and Germany .
“ After that body blow the market dipped , but the real damage seemed to coincide with discussions on more US-China tensions , ” said Jim Reid of Deutsche @ @ @ @ @ @ @ the last hour of trading after Graham proposed legislation that would allow the US to sanction China unless it gave a full account of events leading up to the coronavirus pandemic .
Investors around the world fear another flare up of US-China tensions .
They could lead to tariffs that would likely hold back the global economic recovery from coronavirus .
Brent crude oil was trading lower this morning , reflecting investor unease about an economic recovery .
It was down 2.6 per cent at $ 29.20 .
WTI crude was 1.6 per @ @ @ @ @ @

FTSE 100 and US stocks fall on fears of coronavirus second wave
The City of London, the UK’s financial district, has been all but deserted during the coronavirus pandemic
The FTSE 100 and US stocks have fallen as fears of a second wave of coronavirus infections spook traders and US-China tensions rise over the pandemic.
The UK’s blue-chip stock index was 1.2 per cent lower in afternoon trading. This took the FTSE 100 below the 6,000 mark which it passed yesterday for only the second time during the Covid-19 outbreak.
Also weighing on the FTSE 100 was the first-quarter GDP report. It showed that the UK economy shrank at its fastest pace since the financial crisis.
Read more: Coronavirus: UK economy slumps two per cent in first quarter of 2020
March saw GDP shrink by a record 5.8 per cent. However, markets had largely priced in a steep decline in activity.
European stocks were also trading lower. Germany’s Dax fell 1.3 per cent and France’s Cac index dropped almost 1.6 per cent. And the continent-wide Stoxx 600 was down 1.1 per cent.
US-China tensions dent FTSE 100 and global stocks
US stocks fell after the bell rang on Wall Street. The Dow Jones was one per cent lower and the S&P 500 had shed 0.7 per cent.
The falls were in part driven by US Federal Reserve chairman Jay Powell’s statement that any economic recovery “may take some time to gather momentum”. He said it would be dictated by progress fighting the coronavirus pandemic and suggested further fiscal stimulus.
US stocks tumbled yesterday, with the major indices falling two per cent as new coronavirus cases emerged and tensions with China increased.
Stocks sold sharply in the last hour of trading on Wall Street after Republican Senator Lindsay Graham proposed legislation that would allow the US to sanction China unless it gave a full account of events leading up to the coronavirus pandemic.
Investors around the world fear another flare up of US-China tensions. They could lead to tariffs that would likely hold back the global economic recovery from coronavirus.
“US markets had a miserable session last night with losses in the region of two per cent on the Dow Jones and S&P 500,” AJ Bell investment director Russ Mould said.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
“That negativity extended across the UK, Europe and parts of Asia on Wednesday, with investors worried about a potential second wave of coronavirus infections.”
Second wave fears hurt European stocks
Investors have also been frightened by clusters of new coronavirus cases in countries that appeared to have their outbreaks under control. New cases have been reported in China, Hong Kong and South Korea.
US medical chief Anthony Fauci added to the gloom yesterday when he spoke to lawmakers. He warned that opening up US states prematurely would lead to “needless suffering and death”.
Michael Hewson, chief market analyst at online trader CMC Markets, said: “There is rising apprehension as various economies start to take baby steps out of lockdown that a secondary wave on infections, will cause politicians to slam on the brakes.”
Such action would “bring an end to the wave of optimism that has seen equity markets trade strongly off their March lows”.
FTSE 100 housebuilder stocks rise
UK housebuilders stopped the FTSE 100 from suffering a bigger fall as miners, tobacco giants and banks fell.
Housebuilder Berkeley rose 1.7 per cent. Barratt Developments climbed as much 1.7 per cent as the government lifted restrictions on the property market but was roughly flat in afternoon trading.
Last night the government moved to allow prospective buyers to visit estate agents and view properties after banning such activity in April’s lockdown.
Read more: Housebuilder Taylor Wimpey to reopen show homes and sales centres after government lifts restrictions
The announcement prompted London estate agent Foxtons to rocket eight per cent today.
But investors are not overly confident. FTSE 100-listed Taylor Wimpey fell despite telling investors it will reopen construction sites and take staff off furlough.
Oil prices flatline as gloom returns
Brent crude oil was roughly flat on a choppy day of trading which reflected investor unease about an economic recovery. It was up 0.1 per cent at $30 per barrel this afternoon. WTI crude was 0.7 per cent higher at $26 per barrel.
Craig Erlam, market analyst at currency firm Oanda, said traders were jittery about the prospect of a sharp fall in prices as the contract for June delivery expired.
“Less than a week to go until the June contract expiry and perhaps it’s making traders a little nervous and more hesitate about joining the great rebound,” he said.
Government bond yields, which move inversely to prices, fell as investors sought “safe-haven” assets. The US 10-year Treasury yield was four basis points (0.04 percentage points) lower at 0.651 per cent.
The pound gained against the dollar, standing at $1.231 in afternoon trading. The dollar was down 0.2 per cent on an index against other currencies.


cityam--2020-05-13--Exiting lockdown: where’s ready, where’s not, and where risks a second wave?

In collaboration with Schroders ’ Data Insights Unit , we ’ ve looked into the global state of lockdown and compared this with estimated reproduction numbers ( R ) to identify who is ready to exit lockdown , who is not and who is potentially exiting prematurely .
Here ’ s what we found in summary : • While China and Korea were the first to exit lockdown , the last could be Brazil , Russia and India , where R estimates are still above 1 .
• Although the US , UK and eurozone are in the position to @ @ @ @ @ @ @ around 0.8 , the risk of a second wave remains .
• We would be more concerned about the risk of second waves in India , Russia and Canada .
• In Brazil , any signs of a premature exit from lockdown would be a major red flag .
• In terms of the global economic recovery , there is still a clear risk of a W-shape recovery , particularly if lockdowns are eased too quickly .
What ’ s the state of lockdown around the world ?
Academics at Oxford University have @ @ @ @ @ @ @ Covid-19 Government Response Tracker –which helps us to track how governments around the world are acting on coronavirus .
In the final week of April , the measure – which includes school and work closures among other things – shows that the largest economies of the world were still effectively in lockdown .
At that time , China and Korea were the only large economies to have eased restrictions enough to move the dial .
Of course , life is by no means back to normal , but these countries are the closest @ @ @ @ @ @ @ below .
Some countries have taken an alternative approach to full lockdown .
Sweden , for example , banned gathering of more than 50 people , but left restaurants , schools and workplaces open .
Reflecting their early policy response and low death tolls , smaller European countries ( Norway , Austria , Denmark and Czech Republic ) eased restrictions in mid-April , opening schools and small shops .
Meanwhile , Spain allowed some factory and construction workers to return to work and Germany took some tentative steps only a few days later @ @ @ @ @ @ @ week beginning 4 May and France has also outlined its exit plans .
In the US , 29 states have now loosened restrictions .
The UK and Russia are the latest to relax their lockdowns , both allowing workers in construction and parts of manufacturing to return to work .
India and Japan are also extending lockdowns , but relaxing the rules for areas with fewer reported cases .
Various governments have now provided some guidance on their exit strategy .
Why is R the crucial number ?
As the number of daily @ @ @ @ @ @ @ eager to reopen and resume economic activity .
In the absence of a vaccine or herd immunity , countries can come out of lockdown when the transmission potential of Covid-19 has fallen enough .
In a population where everyone is susceptible , R0 – the basic reproduction number – is the number to watch .
This is the average number of secondary infections produced by a typical case of an infection .
For example , an R0 of 2 means each infected person infects two more .
But once an epidemic starts spreading @ @ @ @ @ @ @ immunity .
The key number then is R – the effective reproduction number .
This accounts for the number of people infected when some people in the population have developed immunity .
This is the crucial number that matters for judging whether to relax lockdowns .
More from Schroders : – How sustainable companies have performed during the Covid-19 crisis – What ’ s happening to dividends and what next ?
11 questions answered – Covid-19 and European equities : a Q & A with our fund managers How do various countries ’ @ @ @ @ @ @ @ by the Schroders Data Insights Unit based on deaths is shown below .
As China is now reporting no deaths from Covid-19 , the R for China is effectively at zero .
At the other end of the spectrum , the R for Brazil , India , Russia and Canada ( using Ontario data ) are still above or at 1 ; suggesting exiting lockdown is premature .
This is especially the case for Brazil and India as the R continues to rise .
We hesitate to add Korea into this group as @ @ @ @ @ @ @ low ( at one or two a day in the last week ) .
Meanwhile , estimates for most other developed markets including the eurozone , UK , Japan and the US ( using New York data ) are in the range of 0.6-0.8 and falling .
This suggests that these countries can relax lockdown but are still susceptible to a second wave .
Though the R alone is informative , the state of lockdown provides useful context for investors thinking about the shape of the economic recovery .
R vs lockdown ( @ @ @ @ @ @ @ of which “ stage ” economies are in dealing with the virus ; stage 1 ( high R , low lockdown ) , stage 2 ( high R , high lockdown ) , stage 3 ( low R , high lockdown ) and finally stage 4 ( low R , low lockdown ) .
Interestingly , Korea , Sweden and Japan have managed to reduce their R without implementing ultra-strict lockdown measures , “ jumping ” from stage 1 to 4 .
If Sweden and Japan successfully escape a second wave , these @ @ @ @ @ @ @ back to “ normal ” .
Currently in the stricter lockdown of stage 3 , Europe and the US will likely continue to ease restrictions .
Finally , Russia , India , Canada and Brazil are still in stage 2 .
Brazil , with the highest R ( and rising ) and less restrictive measures than its emerging market peers , could potentially be the world ’ s laggard .
Who is at most risk of a second wave ?
Technically a second wave captures when the number of deaths has already peaked @ @ @ @ @ @ @ thinking about a “ W-shape recovery ” , it is also important to include countries where deaths have not yet peaked and restrictions are being eased , since this introduces a risk of a second wave of restrictions .
Taking this into account , we disregard Brazil as a candidate for a second wave as fatalities have not peaked and restrictions are not being rolled back , though protests suggests there could be lockdown fatigue .
On the other hand , we include India and Russia despite fatalities yet to peak .
Ultimately @ @ @ @ @ @ @ or close to 1 that are easing restrictions are at the most risk of a second wave .
In this respect , India , Russia , Canada and Korea are at the highest risk .
The number of deaths is also important to consider .
For example , an R of 1 in Korea suggests that , with no other action , deaths will persist at current levels .
However , you would argue that this is less concerning given the extremely low number of daily fatalities ( at one to two per @ @ @ @ @ @ @ , Europe and Japan are at less risk of a second wave , though we caution the risk remains , particularly if they attempt to come out of lockdown too quickly .
Finally , though we excluded Brazil as a candidate for a second wave , anti-lockdown protests and friction between central and state governments suggest lockdown fatigue .
If this were to result to measures being rolled back , this would be a major red flag for a second wave .
What do we conclude from our analysis ?
At this stage @ @ @ @ @ @ @ minimal exit strategy , Russia , Brazil and India are set to be the last out of lockdown .
Investors should be particularly wary of India , Russia and Canada , who are at the highest risk of a second wave .
The risk is lower for the US and Europe but still remains , with R estimates around the 0.8 mark .
These economies should be careful of exiting lockdown too quickly .
Finally , experiencing the highest reproduction rate of the virus , signs of a premature exit in Brazil would @ @ @ @ @ @ @ second wave .
In terms of what this means for the global economic recovery , we conclude that there is still a clear risk of a “ W-shape ” recovery , particularly if lockdowns are eased too quickly or lockdown fatigue sets in .
• You can discover more content from Schroders on their insights page and if you follow Schroders on twitter .
Important Information : The views and opinions contained herein are of those named in the article and may not necessarily represent views expressed or reflected in other Schroders communications @ @ @ @ @ @ @ and securities shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell .
This communication is marketing material .
This material is intended to be for information purposes only and is not intended as promotional material in any respect .
The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument .
The material is not intended to provide and should not be relied on for accounting , legal or tax advice , or investment recommendations @ @ @ @ @ @ @ the views and information in this document when taking individual investment and/or strategic decisions .
Past performance is not a guide to future performance and may not be repeated .
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested .
All investments involve risks including the risk of possible loss of principal .
Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy .
Reliance should not be placed on @ @ @ @ @ @ @ when taking individual investment and/or strategic decisions .
The opinions in this document include some forecasted views .
We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know .
However , there is no guarantee than any forecasts or opinions will be realised .
These views and opinions may change .
Issued by Schroder Investment Management Limited , 1 London Wall Place , London , EC2Y 5AU .
Registration No .
1893220 England .
Authorised and regulated by the Financial Conduct Authority .

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Exiting lockdown: where’s ready, where’s not, and where risks a second wave?
Countries around the world are trying to come out of the lock downs imposed as a result of coronavirus
In collaboration with Schroders’ Data Insights Unit, we’ve looked into the global state of lockdown and compared this with estimated reproduction numbers (R) to identify who is ready to exit lockdown, who is not and who is potentially exiting prematurely.
Here’s what we found in summary:
While China and Korea were the first to exit lockdown, the last could be Brazil, Russia and India, where R estimates are still above 1.
Although the US, UK and eurozone are in the position to ease lockdown, with an estimated R around 0.8, the risk of a second wave remains.
We would be more concerned about the risk of second waves in India, Russia and Canada.
In Brazil, any signs of a premature exit from lockdown would be a major red flag.
In terms of the global economic recovery, there is still a clear risk of a W-shape recovery, particularly if lockdowns are eased too quickly.
What’s the state of lockdown around the world?
Academics at Oxford University have constructed a lockdown index – the Oxford Covid-19 Government Response Tracker –which helps us to track how governments around the world are acting on coronavirus.
In the final week of April, the measure – which includes school and work closures among other things – shows that the largest economies of the world were still effectively in lockdown.
At that time, China and Korea were the only large economies to have eased restrictions enough to move the dial. Of course, life is by no means back to normal, but these countries are the closest, as shown in the two charts below.
Some countries have taken an alternative approach to full lockdown. Sweden, for example, banned gathering of more than 50 people, but left restaurants, schools and workplaces open.
Reflecting their early policy response and low death tolls, smaller European countries (Norway, Austria, Denmark and Czech Republic) eased restrictions in mid-April, opening schools and small shops.
Meanwhile, Spain allowed some factory and construction workers to return to work and Germany took some tentative steps only a few days later. Italy began to ease restrictions the week beginning 4 May and France has also outlined its exit plans. In the US, 29 states have now loosened restrictions.
The UK and Russia are the latest to relax their lockdowns, both allowing workers in construction and parts of manufacturing to return to work. India and Japan are also extending lockdowns, but relaxing the rules for areas with fewer reported cases.
Various governments have now provided some guidance on their exit strategy.
Why is R the crucial number?
As the number of daily fatalities continues to fall, governments are eager to reopen and resume economic activity. In the absence of a vaccine or herd immunity, countries can come out of lockdown when the transmission potential of Covid-19 has fallen enough.
In a population where everyone is susceptible, R0 – the basic reproduction number – is the number to watch. This is the average number of secondary infections produced by a typical case of an infection. For example, an R0 of 2 means each infected person infects two more.
But once an epidemic starts spreading, some people in the population develop immunity. The key number then is R – the effective reproduction number. This accounts for the number of people infected when some people in the population have developed immunity.
This is the crucial number that matters for judging whether to relax lockdowns.
More from Schroders:
– How sustainable companies have performed during the Covid-19 crisis
– What’s happening to dividends and what next? 11 questions answered
– Covid-19 and European equities: a Q&A with our fund managers
How do various countries’ R numbers compare?
R estimates calculated by the Schroders Data Insights Unit based on deaths is shown below.
As China is now reporting no deaths from Covid-19, the R for China is effectively at zero.
At the other end of the spectrum, the R for Brazil, India, Russia and Canada (using Ontario data) are still above or at 1; suggesting exiting lockdown is premature. This is especially the case for Brazil and India as the R continues to rise. We hesitate to add Korea into this group as the number of daily deaths is so low (at one or two a day in the last week).
Meanwhile, estimates for most other developed markets including the eurozone, UK, Japan and the US (using New York data) are in the range of 0.6-0.8 and falling. This suggests that these countries can relax lockdown but are still susceptible to a second wave.
Though the R alone is informative, the state of lockdown provides useful context for investors thinking about the shape of the economic recovery. R vs lockdown (Chart 4) provides a rough snapshot of which “stage” economies are in dealing with the virus; stage 1 (high R, low lockdown), stage 2 (high R, high lockdown), stage 3 (low R, high lockdown) and finally stage 4 (low R, low lockdown).
Interestingly, Korea, Sweden and Japan have managed to reduce their R without implementing ultra-strict lockdown measures, “jumping” from stage 1 to 4.
If Sweden and Japan successfully escape a second wave, these economies could be the next to go back to “normal”. Currently in the stricter lockdown of stage 3, Europe and the US will likely continue to ease restrictions. Finally, Russia, India, Canada and Brazil are still in stage 2.
Brazil, with the highest R (and rising) and less restrictive measures than its emerging market peers, could potentially be the world’s laggard.
Who is at most risk of a second wave?
Technically a second wave captures when the number of deaths has already peaked and then rises again. But when thinking about a “W-shape recovery”, it is also important to include countries where deaths have not yet peaked and restrictions are being eased, since this introduces a risk of a second wave of restrictions.
Taking this into account, we disregard Brazil as a candidate for a second wave as fatalities have not peaked and restrictions are not being rolled back, though protests suggests there could be lockdown fatigue.
On the other hand, we include India and Russia despite fatalities yet to peak.
Ultimately, those countries with an R above or close to 1 that are easing restrictions are at the most risk of a second wave. In this respect, India, Russia, Canada and Korea are at the highest risk.
The number of deaths is also important to consider. For example, an R of 1 in Korea suggests that, with no other action, deaths will persist at current levels. However, you would argue that this is less concerning given the extremely low number of daily fatalities (at one to two per day).
Meanwhile, the US, Europe and Japan are at less risk of a second wave, though we caution the risk remains, particularly if they attempt to come out of lockdown too quickly.
Finally, though we excluded Brazil as a candidate for a second wave, anti-lockdown protests and friction between central and state governments suggest lockdown fatigue. If this were to result to measures being rolled back, this would be a major red flag for a second wave.
What do we conclude from our analysis?
At this stage, with an R above 1 and minimal exit strategy, Russia, Brazil and India are set to be the last out of lockdown. Investors should be particularly wary of India, Russia and Canada, who are at the highest risk of a second wave.
The risk is lower for the US and Europe but still remains, with R estimates around the 0.8 mark. These economies should be careful of exiting lockdown too quickly.
Finally, experiencing the highest reproduction rate of the virus, signs of a premature exit in Brazil would be a major red flag for a second wave.
In terms of what this means for the global economic recovery, we conclude that there is still a clear risk of a “W-shape” recovery, particularly if lockdowns are eased too quickly or lockdown fatigue sets in.
You can discover more content from Schroders on their insights page and if you follow Schroders on twitter.
Important Information: The views and opinions contained herein are of those named in the article and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The sectors and securities shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell. This communication is marketing material.
This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. The opinions in this document include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. Issued by Schroder Investment Management Limited, 1 London Wall Place, London, EC2Y 5AU. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.


cityam--2020-05-13--Rishi Sunak: UK set for 'significant recession'

Chancellor Rishi Sunak has said the UK will be plunged into a “ significant recession ” in the wake of figures showing the economy contracted in the first quarter .
It was the first time during the crisis that Sunak has admitted a recession is on its way , telling The Telegraph that “ we ’ re at a time of unprecedented economic uncertainty ” .
Read more : Coronavirus : UK economy shrinks two per cent in first quarter of 2020 The Office for National Statistics ( ONS ) released figures this morning showing that UK GDP shrunk by @ @ @ @ @ @ @ .
This was on the back of a 5.8 per cent drop in activity in March when the coronavirus lockdown was implemented .
With GDP certain to shrink again in the second quarter , this puts the UK on track for its first recession in almost a decade .
Sunak said the numbers were not a surprise .
“ We ’ re seeing the impact of coronavirus on our economy and that ’ s why we ’ ve taken the unprecedented actions we have to support businesses and indeed people in their jobs @ @ @ @ @ @ @ difficult time , ” he said .
“ I think we ’ re at a time of unprecedented economic uncertainty – that ’ s something that both the Office for Budget Responsibility and Bank of England have said .
“ There are a range of scenarios out there , but as I ’ ve said we are facing a period of significant disruption and we are now likely to see a significant recession.
” It comes as The Telegraph revealed leaked Treasury estimates last night , showing this year ’ s budget deficit @ @ @ @ @ @ @ ten-times more than expected on Budget day in March .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
The figures revealed that a “ U-shaped ” recovery would lead to a budget deficit of £337bn , which is being used as the control assumption .
The Treasury paper also discussed potential methods of cutting the deficit over the next five years .
Measures include potential income tax rises , a freeze on public sector pay , VAT rises and an @ @ @ @ @ @ @ Sunak said today that it was too early to speculate about future fiscal policy .
“ It ’ s completely premature to speculate about future public finances , budgets and the economy , ” he said .
“ What we do know is that the best way to have strong public finances and a strong economy in the future is to protect as many businesses and jobs today .
”

Rishi Sunak: UK set for ‘significant recession’
Chancellor of the exchequer Rishi Sunak has made some of the biggest government interventions in history to try to tackle the coronavirus fallout
Chancellor Rishi Sunak has said the UK will be plunged into a “significant recession” in the wake of figures showing the economy contracted in the first quarter.
It was the first time during the crisis that Sunak has admitted a recession is on its way, telling The Telegraph that “we’re at a time of unprecedented economic uncertainty”.
The Office for National Statistics (ONS) released figures this morning showing that UK GDP shrunk by 2 per cent in the first quarter.
This was on the back of a 5.8 per cent drop in activity in March when the coronavirus lockdown was implemented.
With GDP certain to shrink again in the second quarter, this puts the UK on track for its first recession in almost a decade.
Sunak said the numbers were not a surprise.
“We’re seeing the impact of coronavirus on our economy and that’s why we’ve taken the unprecedented actions we have to support businesses and indeed people in their jobs and incomes through what is a very difficult time,” he said.
“I think we’re at a time of unprecedented economic uncertainty – that’s something that both the Office for Budget Responsibility and Bank of England have said.
“There are a range of scenarios out there, but as I’ve said we are facing a period of significant disruption and we are now likely to see a significant recession.”
It comes as The Telegraph revealed leaked Treasury estimates last night, showing this year’s budget deficit could rise as high as £516bn – ten-times more than expected on Budget day in March.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The figures revealed that a “U-shaped” recovery would lead to a budget deficit of £337bn, which is being used as the control assumption.
The Treasury paper also discussed potential methods of cutting the deficit over the next five years.
Measures include potential income tax rises, a freeze on public sector pay, VAT rises and an end to the pensions triple lock.
Sunak said today that it was too early to speculate about future fiscal policy.
“It’s completely premature to speculate about future public finances, budgets and the economy,” he said.
“What we do know is that the best way to have strong public finances and a strong economy in the future is to protect as many businesses and jobs today.”


cityam--2020-05-13--Uber installing in-car partitions to help stop coronavirus spread

Uber said today it was piloting the installation of screens in 400 cars to help stop the spread of coronavirus .
Uber is working with AA to install the partitions in 400 cars in Newcastle , Sunderland and Durham .
It is also working with Unilever to distribute hygiene kits to Uber drivers in the UK .
Read more : Uber to spend $ 50m on safety kit as it tells drivers and passengers to wear masks Uber said it would distribute 2.2m masks to drivers and couriers in addition to the 1.1m that have already been sent .
Jamie @ @ @ @ @ @ @ manager for northern and eastern Europe , said : “ The safety of the riders and drivers who use the Uber app is our number one priority .
For weeks we ’ ve been urging people to stay home and make essential trips only .
“ As people start to think about moving again , we hope our pilot in the north east of England will help bring about a greater understanding of how to get people from A to B as safely as possible.
” Rival taxi operator Addison Lee said yesterday @ @ @ @ @ @ @ fleet from next week .
Read more : Addison Lee secures rescue deal as banks take over This comes on top of existing safety measures , which include providing drivers with protective equipment such as masks , gloves , hand sanitiser and disinfectant .
Addison Lee chief executive Liam Griffin said : “ The safety of our drivers and our passengers is our biggest priority .
We know there is significant demand from drivers , passengers , businesses and the general public for more to be done to make transport cleaner and safer @ @ @ @ @ @ @ including calls for the introduction of partition screens into private hire vehicles .
“ That ’ s why we have taken the decision to begin rolling out the installation of safety screens between drivers and passenger seats .
”

Uber installing in-car partitions to help stop coronavirus spread
Uber said today it was piloting the installation of screens in 400 cars to help stop the spread of coronavirus.
Uber is working with AA to install the partitions in 400 cars in Newcastle, Sunderland and Durham.
It is also working with Unilever to distribute hygiene kits to Uber drivers in the UK.
Uber said it would distribute 2.2m masks to drivers and couriers in addition to the 1.1m that have already been sent.
Jamie Heywood, Uber’s regional general manager for northern and eastern Europe, said: “The safety of the riders and drivers who use the Uber app is our number one priority. For weeks we’ve been urging people to stay home and make essential trips only.
“As people start to think about moving again, we hope our pilot in the north east of England will help bring about a greater understanding of how to get people from A to B as safely as possible.”
Rival taxi operator Addison Lee said yesterday it would install partition screens across its fleet from next week.
This comes on top of existing safety measures, which include providing drivers with protective equipment such as masks, gloves, hand sanitiser and disinfectant.
Addison Lee chief executive Liam Griffin said: “The safety of our drivers and our passengers is our biggest priority. We know there is significant demand from drivers, passengers, businesses and the general public for more to be done to make transport cleaner and safer as we go back to work – including calls for the introduction of partition screens into private hire vehicles.
“That’s why we have taken the decision to begin rolling out the installation of safety screens between drivers and passenger seats.”


cityam--2020-05-13--Government urged to help property market recover amid UK house price slump

The government has been urged to provide measures to help the property market to recover , after the latest research warned that UK house prices are set to plunge this year .
The Royal Institution of Chartered Surveyors ( Rics ) reiterated its call for a stamp duty holiday to encourage buyers , warning that UK house prices were set to plunge this year despite the recent easing of lockdown restrictions .
Read more : How badly will coronavirus hit UK house prices in 2020 ?
More than 40 per cent of respondents to the Rics survey said prices could @ @ @ @ @ @ @ , while 35 per cent said they will be four per cent lower .
In total a net balance of minus 21 per cent of respondents reported a decline in UK house prices in April as the market came to a standstill during the lockdown .
However , the government last night announced it would relax rules to allow estate agents reopen , and let potential buyers view properties .
Rics head of UK Government relations Hew Edgar said : “ Rics last month called on the UK Government to explore confidence-boosting measures @ @ @ @ @ @ @ , and the data suggests that our proposal for a stamp duty holiday would be a successful change that would boost transactional activity , helping people move home .
“ There are , of course , other options available to fovernment as they reopen the market , notwithstanding stamp duty options such as reducing or removing stamp duty for downsizers that would kickstart market fluidity , and we look forward to continuing conversations as the market starts to move again.
” In total 80 per cent of respondents to the survey said both @ @ @ @ @ @ @ transactions in April .
The agreed sales balance for the month plunged to minus 92 per cent , down from minus 68 per cent in March .
According to the research , 62 per cent of respondents believed a stamp duty holiday would help the market to recover after the pandemic by lifting sales and leaving prices relatively unchanged .
Read more : UK house prices dip in April as coronavirus lockdown brings market to standstill A net balance of minus 93 per cent of respondents reported a decline in buyer enquiries during @ @ @ @ @ @ @ cent the previous month .
New instructions also continued to fall , and 96 per cent of respondents reported a drop rather than a rise of new properties being listed for sale , the worst reading on record .

Government urged to help property market recover amid UK house price slump
The government has been urged to provide measures to help the property market to recover, after the latest research warned that UK house prices are set to plunge this year.
The Royal Institution of Chartered Surveyors (Rics) reiterated its call for a stamp duty holiday to encourage buyers , warning that UK house prices were set to plunge this year despite the recent easing of lockdown restrictions.
More than 40 per cent of respondents to the Rics survey said prices could fall by more than four per cent, while 35 per cent said they will be four per cent lower.
In total a net balance of minus 21 per cent of respondents reported a decline in UK house prices in April as the market came to a standstill during the lockdown.
However, the government last night announced it would relax rules to allow estate agents reopen, and let potential buyers view properties.
Rics head of UK Government relations Hew Edgar said: “Rics last month called on the UK Government to explore confidence-boosting measures for the residential market as it reopens, and the data suggests that our proposal for a stamp duty holiday would be a successful change that would boost transactional activity, helping people move home.
“There are, of course, other options available to fovernment as they reopen the market, notwithstanding stamp duty options such as reducing or removing stamp duty for downsizers that would kickstart market fluidity, and we look forward to continuing conversations as the market starts to move again.”
In total 80 per cent of respondents to the survey said both buyers and sellers had pulled out of transactions in April. The agreed sales balance for the month plunged to minus 92 per cent, down from minus 68 per cent in March.
According to the research, 62 per cent of respondents believed a stamp duty holiday would help the market to recover after the pandemic by lifting sales and leaving prices relatively unchanged.
A net balance of minus 93 per cent of respondents reported a decline in buyer enquiries during April, dropping from minus 76 per cent the previous month.
New instructions also continued to fall, and 96 per cent of respondents reported a drop rather than a rise of new properties being listed for sale, the worst reading on record.
Jeremy Leaf, north London estate agent and former Rics residential chairman, said: ’’This data, though interesting, has largely been overshadowed by the re-opening of the property market yesterday so the next survey is likely to be quite different, bearing in mind the spike in enquiries which followed the announcement.
“Nevertheless, near-term expectations show that we shouldn’t get carried away by this sudden release of pent-up demand.
“Many bigger hurdles remain for homebuyers and sellers, not least in arranging visits safely and securely, as well as ensuring that previous as well as new lending arrangements are in place on the same or similar terms.”
Knight Frank head of London residential research Tom Bill said: “We expect UK house prices will continue to decline over the summer as the bad economic news racks up.
“However, the worst of the declines are likely to be behind us and there may be upwards pressure on prices in the final two quarters of the year if, as many expect, economic activity rebounds.”


cityam--2020-05-13--Commercial radio pulls in record audience ahead of Covid-19 lockdown

UK commercial radio stations attracted their largest ever audience in the first three months of the year as Brits tuned in ahead of the full coronavirus lockdown .
Roughly 36.3m people tuned in to commercial radio each week in the first quarter — the highest figure ever recorded .
Read more : Gambling firms pull TV and radio advertising during Covid-19 lockdown The sector ’ s average listening time was also up year on year to 13 hours per week , while share of listening hit 47.8 per cent , compared to 45.7 per cent in the first quarter last @ @ @ @ @ @ @ period before the full UK lockdown , which came into effect on 23 March .
However , radio listening was up even before Prime Minister Boris Johnson announced the lockdown as millions of Brits began to work from home .
“ Covering the beginning of the year , mostly pre-lockdown , these latest Rajar results for January to March show commercial radio hitting record numbers , ” said Siobhan Kenny , chief executive of industry body Radiocentre .
“ Audiences ’ high level of trust and increased availability during lockdown can only build @ @ @ @ @ @ @ which owns stations including Heart , Capital and Classic FM , retained its status as the largest commercial radio company after increasing its market share to 23 per cent .
The firm reported continued growth for LBC , which launched a 24-hour rolling news station in October last year , amid growing demand for news and current affairs coverage .
Rival media conglomerate Bauer , which runs stations such as Kiss , Magic and Absolute , secured a record reach of 20m listeners in the first quarter .
But while audiences are rising @ @ @ @ @ @ @ downturn in advertising revenue amid the Covid-19 crisis .
Radio and TV broadcasters were dealt a further blow last month when major UK gambling and betting firms said they would pull all ads for the remainder of the lockdown .
“ Commercial radio is proven to be an effective and efficient advertising platform , but will be suffering from an exodus of advertisers , particularly in key client sectors such as car sales , ” said Justine O ’ Neill , director at Analytic Partners .
“ There will be a double hit @ @ @ @ @ @ @ the BBC for both news and local community action.
” She added : “ The challenge for commercial radio will be in attracting the revenue to make the most of their captive listenership.
” Overall , digital formats continue to grow their share of the market and now account for 61.6 per cent of total listening , driven by listening online , through apps and over smart speakers .
Read more : UK radio stations get coronavirus boost as housebound Brits tune in “ Not surprisingly , results for this first quarter show @ @ @ @ @ @ @ for digital radio , ” said Christian Polman , chief strategy officer at Ebiquity .
“ With fewer people commuting , podcast listening has been down but the abundance of platforms available to the public is keeping radio channels in tune with the shifting listening habits of consumers .
Listening via smart devices has also likely helped make radio more resilient .
”

Commercial radio pulls in record audience ahead of Covid-19 lockdown
UK commercial radio stations attracted their largest ever audience in the first three months of the year as Brits tuned in ahead of the full coronavirus lockdown.
Roughly 36.3m people tuned in to commercial radio each week in the first quarter — the highest figure ever recorded.
The sector’s average listening time was also up year on year to 13 hours per week, while share of listening hit 47.8 per cent, compared to 45.7 per cent in the first quarter last year.
The figures primarily cover the period before the full UK lockdown, which came into effect on 23 March.
However, radio listening was up even before Prime Minister Boris Johnson announced the lockdown as millions of Brits began to work from home.
“Covering the beginning of the year, mostly pre-lockdown, these latest Rajar results for January to March show commercial radio hitting record numbers,” said Siobhan Kenny, chief executive of industry body Radiocentre.
“Audiences’ high level of trust and increased availability during lockdown can only build on that.”
Media group Global, which owns stations including Heart, Capital and Classic FM, retained its status as the largest commercial radio company after increasing its market share to 23 per cent.
The firm reported continued growth for LBC, which launched a 24-hour rolling news station in October last year, amid growing demand for news and current affairs coverage.
Rival media conglomerate Bauer, which runs stations such as Kiss, Magic and Absolute, secured a record reach of 20m listeners in the first quarter.
But while audiences are rising, commercial radio stations are battling a downturn in advertising revenue amid the Covid-19 crisis.
Radio and TV broadcasters were dealt a further blow last month when major UK gambling and betting firms said they would pull all ads for the remainder of the lockdown.
“Commercial radio is proven to be an effective and efficient advertising platform, but will be suffering from an exodus of advertisers, particularly in key client sectors such as car sales,” said Justine O’Neill, director at Analytic Partners.
“There will be a double hit as many listeners will have switched to the BBC for both news and local community action.”
She added: “The challenge for commercial radio will be in attracting the revenue to make the most of their captive listenership.”
Overall, digital formats continue to grow their share of the market and now account for 61.6 per cent of total listening, driven by listening online, through apps and over smart speakers.
“Not surprisingly, results for this first quarter show us that this year will be significant for digital radio,” said Christian Polman, chief strategy officer at Ebiquity.
“With fewer people commuting, podcast listening has been down but the abundance of platforms available to the public is keeping radio channels in tune with the shifting listening habits of consumers. Listening via smart devices has also likely helped make radio more resilient.”
Main image credit: Radiocentre


cityam--2020-05-13--Uber to spend $50m on safety kit as it tells drivers and passengers to wear masks

Uber has set aside $ 50m ( £41m ) to buy personal protective equipment for drivers as it introduces new rules requiring all users to wear face masks .
Chief executive Dara Khosrowshahi today told reporters that the ride-hailing app will roll out a string of new safety measures as it looks to address concerns about the Covid-19 pandemic .
Read more : Uber to cut 3,700 employees as ride-hailing demand slumps due to coronavirus From next week Uber will require passengers in most countries to wear face masks , while front seating will no longer be allowed .
Drivers @ @ @ @ @ @ @ coverings , and the firm will introduce new selfie technology to verify their use of a mask before beginning a journey .
The San Francisco-based firm today said it would spend $ 50m on masks , hand sanitiser and vehicle disinfectants to help protect its drivers .
So far the ride-hailing app has acquired more than 20m masks and has distributed 5m of these to drivers .
Both riders and drivers will be able to cancel a trip if the other is not wearing a face mask .
The safety push comes as @ @ @ @ @ @ @ for its services during the coronavirus lockdown .
Last week the company said it will cut almost 4,000 jobs as it looks to save cash .
Boss Khosrowshahi will also forgo his salary for the rest of the year .
The firm has instead turned its attention to its food delivery service Uber Eats , which has enjoyed increased demand during the pandemic .
Yesterday it emerged Uber had entered into negotiations with rival food delivery firm Grubhub over a potential acquisition .
Uber has made an all-stock offer for the company but @ @ @ @ @ @ @ the price tag , Reuters reported , citing sources .

Uber to spend $50m on safety kit as it tells drivers and passengers to wear masks
Uber has set aside $50m (£41m) to buy personal protective equipment for drivers as it introduces new rules requiring all users to wear face masks.
Chief executive Dara Khosrowshahi today told reporters that the ride-hailing app will roll out a string of new safety measures as it looks to address concerns about the Covid-19 pandemic.
From next week Uber will require passengers in most countries to wear face masks, while front seating will no longer be allowed.
Drivers will also be required to wear face coverings, and the firm will introduce new selfie technology to verify their use of a mask before beginning a journey.
The San Francisco-based firm today said it would spend $50m on masks, hand sanitiser and vehicle disinfectants to help protect its drivers.
So far the ride-hailing app has acquired more than 20m masks and has distributed 5m of these to drivers.
Both riders and drivers will be able to cancel a trip if the other is not wearing a face mask.
The safety push comes as Uber battles a sharp downturn in demand for its services during the coronavirus lockdown.
Last week the company said it will cut almost 4,000 jobs as it looks to save cash. Boss Khosrowshahi will also forgo his salary for the rest of the year.
The firm has instead turned its attention to its food delivery service Uber Eats, which has enjoyed increased demand during the pandemic.
Yesterday it emerged Uber had entered into negotiations with rival food delivery firm Grubhub over a potential acquisition.
Uber has made an all-stock offer for the company but the two sides remain at odds over the price tag, Reuters reported, citing sources.


cityam--2020-05-13--France to force tech giants to remove harmful content within the hour

Social media companies will be forced to remove the most harmful content from their platforms within an hour or face hefty fines under new French laws passed today .
Firms such as Facebook , Google and Twitter could be fined up to four per cent of their global revenue if they fail to comply with the new legislation , which will apple to paedophile and terrorism-related content .
For other “ manifestly illicit ” material the sites will be given 24 hours to remove it .
The law will also establish a specialised digital prosecutor at the courts and a @ @ @ @ @ @ @ online .
Justice minister Nicole Belloubet told parliament the move would help authorities to crack down on hate speech posted on online platforms .
“ People will think twice before crossing the red line if they know that there is a high likelihood that they will be held to account , ” she said .
The new law marks a major step forward in global efforts to clamp down on so-called harmful material posted to online forums .
The UK has set out plans for new regulation that will place a legal duty @ @ @ @ @ @ @ their users .
The government has said it is minded to appoint a beefed-up Ofcom as the country ’ s first ever internet regulator , with powers to issue fines or take legal action if firms fall foul of the law .
But the tightening of regulation has sparked a backlash amid concerns about freedom of speech .
Read more : Online harms laws will not harm free speech , vows Ofcom boss Marine le Pen , president of France ’ s far-right National Rally party , described the new legislation as a @ @ @ @ @ @ @ expression ” .
Ofcom has previously said that concerns about censorship and a limiting of free speech were “ unfounded ” .

France to force tech giants to remove harmful content within the hour
Social media companies will be forced to remove the most harmful content from their platforms within an hour or face hefty fines under new French laws passed today.
Firms such as Facebook, Google and Twitter could be fined up to four per cent of their global revenue if they fail to comply with the new legislation, which will apple to paedophile and terrorism-related content.
For other “manifestly illicit” material the sites will be given 24 hours to remove it.
The law will also establish a specialised digital prosecutor at the courts and a new government unit to monitor hate speech online.
Justice minister Nicole Belloubet told parliament the move would help authorities to crack down on hate speech posted on online platforms.
“People will think twice before crossing the red line if they know that there is a high likelihood that they will be held to account,” she said.
The new law marks a major step forward in global efforts to clamp down on so-called harmful material posted to online forums.
The UK has set out plans for new regulation that will place a legal duty of care on tech firms to protect their users.
The government has said it is minded to appoint a beefed-up Ofcom as the country’s first ever internet regulator, with powers to issue fines or take legal action if firms fall foul of the law.
But the tightening of regulation has sparked a backlash amid concerns about freedom of speech.
Marine le Pen, president of France’s far-right National Rally party, described the new legislation as a “serious violation of the freedom of expression”.
Ofcom has previously said that concerns about censorship and a limiting of free speech were “unfounded”.


cityam--2020-05-13--Airbus could cut 10,000 jobs amid coronavirus travel slump

European aerospace titan Airbus could cut up to 10,000 jobs in the coming days as it struggles with the fallout from the coronavirus pandemic .
The Telegraph reported that executives are set to finalise plans for cuts to the company ’ s 134,000 staff next week .
One source quoted in the report said cuts will be “ imminent and savage ” , adding : “ Boeing cut 10 per cent of its workforce and something along the same lines is expected ” .
The report said Airbus management held talks with employee representatives in Europe last week in which @ @ @ @ @ @ @ for the company .
A spokesperson for Airbus said : “ Over the last few weeks , Airbus has implemented a number of financial , operational and social measures in order to adapt to the severe health and economic impacts of the covid-19 crisis .
“ The company will continue to take all necessary measures to ensure the future of Airbus in cooperation with its social partners .
Last month Airbus chief executive Guillaume Faury wrote to all of the planemaker ’ s employees to warn of pain to come .
Faury , @ @ @ @ @ @ @ survival was at stake , said Airbus was “ bleeding cash at an unprecedented speed ” .
Faury said the recent drop in production of a third was not the worst case scenario .
Faury added that although the company had begun to put around 3,000 staff on to French government furlough schemes , “ we may now need to plan for more far-reaching measures ” .
“ The survival of Airbus is in question if we don ’ t act now , ” he added .
Last month Boeing boss Dave Calhoun @ @ @ @ @ @ @ of its workforce by about 10 per cent .
“ We have begun taking action to lower our number of employees by roughly 10 per cent through a combination of voluntary layoffs , natural turnover and involuntary layoffs as necessary , ” Calhoun said in an email seen by Reuters .
Read more : Airbus ‘ bleeding cash at an unprecedented speed ’ due to coronavirus Boeing will need to make “ even deeper reductions in areas that are most exposed to the condition of our commercial customers — more than 15 per @ @ @ @ @ @ @ businesses , as well as our corporate functions , ” he said

Airbus could cut 10,000 jobs amid coronavirus travel slump
European aerospace titan Airbus could cut up to 10,000 jobs in the coming days as it struggles with the fallout from the coronavirus pandemic.
The Telegraph reported that executives are set to finalise plans for cuts to the company’s 134,000 staff next week.
One source quoted in the report said cuts will be “imminent and savage”, adding: “Boeing cut 10 per cent of its workforce and something along the same lines is expected”.
The report said Airbus management held talks with employee representatives in Europe last week in which they set out the bleak imminent future for the company.
A spokesperson for Airbus said: “Over the last few weeks, Airbus has implemented a number of financial, operational and social measures in order to adapt to the severe health and economic impacts of the covid-19 crisis.
“The company will continue to take all necessary measures to ensure the future of Airbus in cooperation with its social partners.
“Airbus doesn’t comment on speculation relating to internal meetings.”
Last month Airbus chief executive Guillaume Faury wrote to all of the planemaker’s employees to warn of pain to come.
Faury, who warned that the company’s survival was at stake, said Airbus was “bleeding cash at an unprecedented speed”.
Faury said the recent drop in production of a third was not the worst case scenario.
Faury added that although the company had begun to put around 3,000 staff on to French government furlough schemes, “we may now need to plan for more far-reaching measures”.
“The survival of Airbus is in question if we don’t act now,” he added.
Last month Boeing boss Dave Calhoun told employees it is reducing the size of its workforce by about 10 per cent.
“We have begun taking action to lower our number of employees by roughly 10 per cent through a combination of voluntary layoffs, natural turnover and involuntary layoffs as necessary,” Calhoun said in an email seen by Reuters.
Boeing will need to make “even deeper reductions in areas that are most exposed to the condition of our commercial customers — more than 15 per cent across our commercial airplanes and services businesses, as well as our corporate functions,” he said