cityam--2020-05-14--UK government kick starts £2bn transport spending spree

The government has begun a £2bn spending spree on the UK ’ s transport infrastructure , according to transport secretary Grant Shapps .
Shapps said at today ’ s press briefing that the government had begun a slew of road and rail projects , which were first announced in the Conservatives ’ 2019 election manifesto .
Read more : Sadiq Khan warns TfL will run out of cash today without government bailout Shapps said the government was in the process of repairing bridges , improving roads , installing electric vehicle charging stations on motorways and filling in millions of potholes @ @ @ @ @ @ @ the funding , £1.7bn , is going toward road upgrades .
Shapps said : “ To make sure Britain is ready to bounce back from coronavirus , today I can announce nearly £2bn to upgrade our roads , and our railways .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
“ By filling millions of dangerous potholes , we can make our roads safer and encourage more people to cycle or even take part in the upcoming e-scooter trials .
@ @ @ @ @ @ @ caused by the winter flooding…and fund numerous road improvement schemes.
” Shapps added that the new spending would give an economic boost to lower socio-economic areas as a part of the government ’ s “ levelling up ” agenda .
“ By combining fast home internet access and with vastly updated transport connections , we can help revive many of our small and medium sized towns which over the decades have been left behind , ” he said .
It comes on the same day mayor of London Sadiq Khan told the government @ @ @ @ @ @ @ needed a bailout today or else it would effectively run out of cash .
He said TfL was about to fall below the £1.2bn threshold it ’ s require to have by government law and that he would cut services if a bailout wasn ’ t granted today .
Read more : Sadiq Khan unveils plans to transform roads for walkers and cyclists post lockdown It is understood City Hall is after £2bn .
Downing Street said today that talks were in an advanced stage .

UK government kick starts £2bn transport spending spree
The government has begun a £2bn spending spree on the UK’s transport infrastructure, according to transport secretary Grant Shapps.
Shapps said at today’s press briefing that the government had begun a slew of road and rail projects, which were first announced in the Conservatives’ 2019 election manifesto.
Shapps said the government was in the process of repairing bridges, improving roads, installing electric vehicle charging stations on motorways and filling in millions of potholes.
The lion’s share of the funding, £1.7bn, is going toward road upgrades.
Shapps said: “To make sure Britain is ready to bounce back from coronavirus, today I can announce nearly £2bn to upgrade our roads, and our railways.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
“By filling millions of dangerous potholes, we can make our roads safer and encourage more people to cycle or even take part in the upcoming e-scooter trials.
“This investment will help fix damage caused by the winter flooding…and fund numerous road improvement schemes.”
Shapps added that the new spending would give an economic boost to lower socio-economic areas as a part of the government’s “levelling up” agenda.
“By combining fast home internet access and with vastly updated transport connections, we can help revive many of our small and medium sized towns which over the decades have been left behind,” he said.
It comes on the same day mayor of London Sadiq Khan told the government that Transport for London (TfL) needed a bailout today or else it would effectively run out of cash.
He said TfL was about to fall below the £1.2bn threshold it’s require to have by government law and that he would cut services if a bailout wasn’t granted today.
It is understood City Hall is after £2bn.
Downing Street said today that talks were in an advanced stage.


cityam--2020-05-14--Bank of England 'not contemplating' negative interest rates, says governor Andrew Bailey

Bank of England governor Andrew Bailey has said Threadneedle Street is not considering cutting interest rates to below zero .
The governor said that it would be unwise to rule anything out , “ particularly in these circumstances , ” in an online question and answer session with the Financial Times .
Read more : Bank of England : UK economy could suffer biggest crash in 300 years Yet he said : “ It is not something we are currently planning for or contemplating.
” His comments come after deputy governor Ben Broadbent said the Bank was open-minded about its @ @ @ @ @ @ @ interest rates : “ These are the balanced questions the committee has to think about.
” Although once unimaginable , negative interest rates have been put in place in various central banks around the world over the last decade .
The European Central Bank ( ECB ) , for example , charges banks to hold money with it in an effort to force them to lend .
Negative rates come with pros and cons .
They help spur lending by penalising banks for sitting on money .
But they also limit the profits @ @ @ @ @ @ @ interest on savers ’ deposits .
The Bank of England slashed its main interest rate to 0.1 per cent , its lowest ever level , in March .
Bailey said that one of the main obstacles to cutting interest rates into negative territory would be the optics of the complex move .
“ I think from a communications point of view , and therefore from a reaction and expectations point of view , it is a very big step.
” He said it must be realised that negative interest rates cause banks problems @ @ @ @ @ @ @ have long complained that the policy hurts their profits .
Read more : UK economy : Is the Bank of England ’ s 2021 rebound scenario too optimistic ?
Should the Bank decide to unleash more stimulus , most analysts think it will ramp up its £645 billion quantitative easing ( QE ) programme .
Under QE , the Bank creates digital money and uses it to buy bonds – mainly government Gilts – in the secondary market .
The BoE stopped short of launching more bond-buying at its last meeting but could @ @ @ @ @

Bank of England ‘not contemplating’ negative interest rates, says governor Andrew Bailey
Bank of England governor Andrew Bailey has had a torrid time since he took over in March
Bank of England governor Andrew Bailey has said Threadneedle Street is not considering cutting interest rates to below zero.
The governor said that it would be unwise to rule anything out, “particularly in these circumstances,” in an online question and answer session with the Financial Times.
Yet he said: “It is not something we are currently planning for or contemplating.”
His comments come after deputy governor Ben Broadbent said the Bank was open-minded about its next steps. He said of negative interest rates: “These are the balanced questions the committee has to think about.”
Although once unimaginable, negative interest rates have been put in place in various central banks around the world over the last decade. The European Central Bank (ECB), for example, charges banks to hold money with it in an effort to force them to lend.
Negative rates come with pros and cons. They help spur lending by penalising banks for sitting on money. But they also limit the profits banks can make through lending and the interest on savers’ deposits.
The Bank of England slashed its main interest rate to 0.1 per cent, its lowest ever level, in March.
Bailey said that one of the main obstacles to cutting interest rates into negative territory would be the optics of the complex move.
“I think from a communications point of view, and therefore from a reaction and expectations point of view, it is a very big step.”
He said it must be realised that negative interest rates cause banks problems. The Eurozone’s biggest banks have long complained that the policy hurts their profits.
Should the Bank decide to unleash more stimulus, most analysts think it will ramp up its £645 billion quantitative easing (QE) programme. Under QE, the Bank creates digital money and uses it to buy bonds – mainly government Gilts – in the secondary market.
The BoE stopped short of launching more bond-buying at its last meeting but could do so in June.


cityam--2020-05-14--Trump says Chinese companies could be forced to follow US accounting standards

The US government is thinking about imposing stricter requirements on Chinese companies listing on the US stock exchange as President Donald Trump ramps up the pressure on China amid the coronavirus pandemic .
Chinese companies do not have to follow US accounting standards , which has led to incidences of fraud and caused investor losses .
Trump told Fox Business today that the US is looking “ very strongly ” at making Chinese companies follow US accounting standards .
Read more : Tory MPs call for trade bill overhaul amid fears over UK ’ s reliance on China He said @ @ @ @ @ @ @ Chinese companies might say “ ’ OK , we ’ ll move to London or we ’ ll go to Hong Kong.
’ ” This week the US ordered government retirement fun , the Federal Retirement Thrift Investment Board , to divest $ 4bn of equity stakes in Chinese companies .
The US and China signed a trade deal in January after months of tension .
The spread of coronavirus , which originated in Wuhan in China , has cast a pall over the bilateral relationship between the two economic powers .
“ @ @ @ @ @ @ @ .
So I make a great trade deal and now I say this doesn ’ t feel the same to me .
The ink was barely dry and the plague came over .
And it doesn ’ t feel the same to me , ” he said .
Read more : Wuhan to test entire 11m population after fresh coronavirus outbreak Trump ’ s disquiet extended to Chinese President Xi Jinping , with whom , Trump says repeatedly , he has a good relationship .
“ But I just – right now I @ @ @ @ @ @ @ him .
I don ’ t want to speak to him , ” Trump said .
Under the deal signed in January , Beijing pledged to buy at least $ 200bn in additional US goods and services over two years while Washington agreed to roll back tariffs on Chinese goods in stages .
A Chinese state-run newspaper has reported that some government advisers in Beijing were urging fresh talks and possibly invalidating the agreement .
Trump said again he was not interested in renegotiating .
While US intelligence agencies said the virus did @ @ @ @ @ @ @ modified , US Secretary of State Mike Pompeo said early in May there is “ a significant amount of evidence ” it came from a laboratory in Wuhan .
Pompeo ’ s comments followed Trump ’ s assertion on 30 April that he was confident the virus may have originated in a Chinese virology laboratory .
In April , the World Health Organization said all available evidence suggested the virus originated in bats and was not manipulated or constructed in a lab .
In the Fox interview , which was taped on Wednesday @ @ @ @ @ @ @ s response to the outbreak than on its origin .
“ We have a lot of information , and it ’ s not good .
Whether it came from the lab or came from the bats , it all came from China , and they should have stopped it .
They could have stopped it , at the source , ” he said .

Trump says Chinese companies could be forced to follow US accounting standards
The US government is thinking about imposing stricter requirements on Chinese companies listing on the US stock exchange as President Donald Trump ramps up the pressure on China amid the coronavirus pandemic.
Chinese companies do not have to follow US accounting standards, which has led to incidences of fraud and caused investor losses.
Trump told Fox Business today that the US is looking “very strongly” at making Chinese companies follow US accounting standards.
He said if those rules were brought in, Chinese companies might say “’OK, we’ll move to London or we’ll go to Hong Kong.’”
This week the US ordered government retirement fun, the Federal Retirement Thrift Investment Board, to divest $4bn of equity stakes in Chinese companies.
The US and China signed a trade deal in January after months of tension. The spread of coronavirus, which originated in Wuhan in China, has cast a pall over the bilateral relationship between the two economic powers.
“I’m very disappointed in China,” Trump told Fox.
“They should have never let this happen. So I make a great trade deal and now I say this doesn’t feel the same to me. The ink was barely dry and the plague came over. And it doesn’t feel the same to me,” he said.
Trump’s disquiet extended to Chinese President Xi Jinping, with whom, Trump says repeatedly, he has a good relationship. “But I just – right now I don’t want to speak to him. I don’t want to speak to him,” Trump said.
Under the deal signed in January, Beijing pledged to buy at least $200bn in additional US goods and services over two years while Washington agreed to roll back tariffs on Chinese goods in stages.
A Chinese state-run newspaper has reported that some government advisers in Beijing were urging fresh talks and possibly invalidating the agreement.
Trump said again he was not interested in renegotiating.
While US intelligence agencies said the virus did not appear to be man-made or genetically modified, US Secretary of State Mike Pompeo said early in May there is “a significant amount of evidence” it came from a laboratory in Wuhan.
Pompeo’s comments followed Trump’s assertion on 30 April that he was confident the virus may have originated in a Chinese virology laboratory. In April, the World Health Organization said all available evidence suggested the virus originated in bats and was not manipulated or constructed in a lab.
In the Fox interview, which was taped on Wednesday, Trump focused more on China’s response to the outbreak than on its origin.
“We have a lot of information, and it’s not good. Whether it came from the lab or came from the bats, it all came from China, and they should have stopped it. They could have stopped it, at the source,” he said.


cityam--2020-05-14--UK criticises EU for 'lack of movement' on key issues in Brexit trade talks

The UK government has again slammed Brussels negotiators for their failure to compromise on key issues , signalling little progress in the post-Brexit trade negotiations as the third round of talks near a close .
The UK ’ s chief Brexit negotiator David Frost attended cabinet today , telling members that the EU has not budged on some of the most contested areas of talks , such as EU fishing access to UK waters .
Read more : Exclusive : EU accused of ‘ politicising ’ City of London in Brexit trade talks The Prime Minister ’ s Official Spokesman @ @ @ @ @ @ @ far more from the UK than they have for other foreign countries where they have reached free trade agreements ” .
The UK and EU are having the third round of negotiations this week in a bid to ratify a post-Brexit free trade deal by 31 December .
There is just one more weeklong negotiating round on 1 June until a break in talks will allow both sides to assess progress .
Frost ’ s team have said that if there is no movement on from the EU on some of the most @ @ @ @ @ @ @ regulations – then Britain will stop negotiating and prepare to leave the transition period without a deal .
Brussels is demanding to maintain the same fishing access to British waters for its member states as when the UK was in the EU .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
The EU is also demanding the UK signs up to a so-called “ level playing field ” of regulations to ensure British businesses do not have a long-term competitive @ @ @ @ @ @ @ would be able to trade with the EU on a zero-tariff basis .
However , Frost has said repeatedly the position of the EU on these two areas is not tenable .
The EU also want the deal to be a part of a single overarching agreement that can be regulated by the European Court of Justice , which the UK has said is unacceptable .
Speaking to a group of journalists , the Prime Minister ’ s spokesman today said : “ [ The EU ] are still asking for the same @ @ @ @ @ @ @ to automatically follow EU decisions like on workers rights , even though we have much higher standards than EU .
“ Cabinet agreed we will not give up our rights to European states , especially when they ’ ve shown in cases like Canada like that these controls are not necessary.
” EU chief negotiator Michel Barnier said after the second round of talks that that there could be no progress on fishing policy in until the UK outlines its own new proposal .
“ The EU will not agree to any future @ @ @ @ @ @ @ balanced , sustainable and long-term solution on fisheries , ” he said .
“ That should be crystal clear to the UK.
” It comes as the Downing Street admitted today that there would be checks on some goods between Great Britain and Northern Ireland once the UK leaves the transition period with the EU .
Read more : Brexit trade deal ‘ won ’ t happen ’ unless EU changes fisheries stance by June Under the withdrawal agreement , Northern Ireland will remain in a customs union with the EU to allow @ @ @ @ @ @ @ Ireland as per the 1998 Good Friday peace agreement .
Downing Street said today that it meant there would need to be checks on agrifood and live animals when they are moved between Northern Ireland and the rest of the UK .

UK criticises EU for ‘lack of movement’ on key issues in Brexit trade talks
European Union chief Brexit negotiator Michel Barnier (R) and the British Prime Minister’s Europe adviser David Frost
The UK government has again slammed Brussels negotiators for their failure to compromise on key issues, signalling little progress in the post-Brexit trade negotiations as the third round of talks near a close.
The UK’s chief Brexit negotiator David Frost attended cabinet today, telling members that the EU has not budged on some of the most contested areas of talks, such as EU fishing access to UK waters.
The Prime Minister’s Official Spokesman today said the EU “has asked far more from the UK than they have for other foreign countries where they have reached free trade agreements”.
The UK and EU are having the third round of negotiations this week in a bid to ratify a post-Brexit free trade deal by 31 December.
There is just one more weeklong negotiating round on 1 June until a break in talks will allow both sides to assess progress.
Frost’s team have said that if there is no movement on from the EU on some of the most contested areas – fishing policy and competition regulations – then Britain will stop negotiating and prepare to leave the transition period without a deal.
Brussels is demanding to maintain the same fishing access to British waters for its member states as when the UK was in the EU.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The EU is also demanding the UK signs up to a so-called “level playing field” of regulations to ensure British businesses do not have a long-term competitive advantage.
In return, the UK would be able to trade with the EU on a zero-tariff basis.
However, Frost has said repeatedly the position of the EU on these two areas is not tenable.
The EU also want the deal to be a part of a single overarching agreement that can be regulated by the European Court of Justice, which the UK has said is unacceptable.
Speaking to a group of journalists, the Prime Minister’s spokesman today said: “[The EU] are still asking for the same access to our waters…and for the UK to automatically follow EU decisions like on workers rights ,even though we have much higher standards than EU.
“Cabinet agreed we will not give up our rights to European states, especially when they’ve shown in cases like Canada like that these controls are not necessary.”
EU chief negotiator Michel Barnier said after the second round of talks that that there could be no progress on fishing policy in until the UK outlines its own new proposal.
“The EU will not agree to any future economic partnership that does not include a balanced, sustainable and long-term solution on fisheries,” he said.
“That should be crystal clear to the UK.”
It comes as the Downing Street admitted today that there would be checks on some goods between Great Britain and Northern Ireland once the UK leaves the transition period with the EU.
Under the withdrawal agreement, Northern Ireland will remain in a customs union with the EU to allow an open border on the island of Ireland as per the 1998 Good Friday peace agreement.
Downing Street said today that it meant there would need to be checks on agrifood and live animals when they are moved between Northern Ireland and the rest of the UK.


cityam--2020-05-14--Ei Group reveals multi-million pound tenant support package amid mounting pressure

Ei Group has granted a rent holiday for some of its bigger pubs amid mounting pressure for pub companies to announce more support for tenants .
A cross-party group of 60 MPs wrote to Ei Group last week urging it to cancel rents for tenants during the coronavirus crisis .
Read more : Stonegate takeover of pub chain Ei Group ‘ may raise prices ’ at local boozers The letter said it was “ unfair ” for tenants to shoulder the financial burden of the coronavirus lockdown , which has forced all pubs to close .
The pub company , @ @ @ @ @ @ @ owner Stonegate in March , has today announced it will offer tenants that are not eligible for government grants a rent credit for the three months to June .
Pubs with a rateable value of less than £51,000 are not eligible for the government ’ s coronavirus grant scheme .
The rent credit will effectively wipe out the rent due for April , May and June .
Meanwhile tenants that are entitled to grants of between £10,000 and £25,000 will receive trade credits of either 75 per cent or 50 per cent of @ @ @ @ @ @ @ This is designed to help pubs cover the cost of buying stock to prepare to reopen .
The government announced this week that some pubs and other hospitality venues could reopen in July at the earliest .

Ei Group reveals multi-million pound tenant support package amid mounting pressure
Ei Group has granted a rent holiday for some of its bigger pubs amid mounting pressure for pub companies to announce more support for tenants.
A cross-party group of 60 MPs wrote to Ei Group last week urging it to cancel rents for tenants during the coronavirus crisis.
The letter said it was “unfair” for tenants to shoulder the financial burden of the coronavirus lockdown, which has forced all pubs to close.
The pub company, which was bought by Slug and Lettuce owner Stonegate in March, has today announced it will offer tenants that are not eligible for government grants a rent credit for the three months to June.
Pubs with a rateable value of less than £51,000 are not eligible for the government’s coronavirus grant scheme. The rent credit will effectively wipe out the rent due for April, May and June.
Meanwhile tenants that are entitled to grants of between £10,000 and £25,000 will receive trade credits of either 75 per cent or 50 per cent of the value of three months rent.
This is designed to help pubs cover the cost of buying stock to prepare to reopen.
Ei Group said the support scheme represented a multi-million pound investment.
The government announced this week that some pubs and other hospitality venues could reopen in July at the earliest.


cityam--2020-05-14--Exclusive: Brits think lockdown measures will hinder economic recovery

Britons think the UK economy will be unable to recover quickly if the coronavirus lockdown measures continue , according to an exclusive poll for City A.M .
The poll , conducted by Redfield and Wilton Strategies , found that 56 per cent of Britons believe that if the lockdown measures continue , the UK economy will reach a point at which it will no longer be able to recover within six months .
The UK ’ s lockdown has been partially eased this week , after the Prime Minister laid out a “ roadmap ” for the reopening of the @ @ @ @ @ @ @ from 1 June , and there are tentative signs the hospitality industry could get back to work from July .
However , the conditional plan does little to quell the nerves of business owners who are facing collapse if economic activity remains frozen .
A report by City Hall found 23 per cent of London ’ s businesses won ’ t last two months of the lockdown .
Nearly a third of those polled by Redfield and Wilton – 31 per cent – think the sooner the lockdown restrictions end the better the @ @ @ @ @ @ @ of Brits are more bullish and think the economy will recover however long lockdown lasts .
Chancellor Rishi Sunak has already warned that the UK will be plunged into a “ significant recession ” .
Figures from the Office for National Statistics ( ONS ) released yesterday show UK GDP shrunk two per cent in the first quarter .
It marked a record 5.8 per cent drop in March , almost entirely due to just over a week of lockdown measures which were implemented on the 23rd .
GDP is certain to shrink @ @ @ @ @ @ @ on course for its first recession in nearly a decade .
However , 69 per cent of Brits believe once the threat of coronavirus is reduced , the better the economy can recover .
There are some glimmers of hope after the first batch of antibody tests from Swiss manufacturer Roche were approved .
Boris Johnson has described them as a “ game changer ” and an important tool in helping people get back to work .
Listen to our daily City View podcast as we chart the economic fallout and business impact @ @ @ @ @ @ @ looming question is how and when Brits will return to work .
The government launched its workplace guidance earlier this week but is still encouraging people to work from home where possible .
Of those who have been able to work from home , 57 per cent expect to be back at work in July , while 14 per cent expect a return after August .
The UK arms of banks and professional services firms are already drawing up plans to send staff back to the office after lockdown .
In an email @ @ @ @ @ @ @ boss Jamie Dimon said the bank would reopen offices in phases with staff returning to work in “ waves over a period of time.
” Read more : Coronavirus public transport advice : What do lockdown rules say ?
Sixty one per cent of the Brits surveyed said they never or almost never worked from home before the pandemic .
Since the lockdown was announced at the end of March , 57 per cent have been able to work from home .
However , the eight weeks of lockdown may have shifted some @ @ @ @ @ @ @ , and a fifth of Brits anticipate working from home indefinitely .
Get the news as it happens by following City A.M. on Twitter .

Exclusive: Brits think lockdown measures will hinder economic recovery
Britons think the UK economy will be unable to recover quickly if the coronavirus lockdown measures continue, according to an exclusive poll for City A.M.
The poll, conducted by Redfield and Wilton Strategies, found that 56 per cent of Britons believe that if the lockdown measures continue, the UK economy will reach a point at which it will no longer be able to recover within six months.
The UK’s lockdown has been partially eased this week, after the Prime Minister laid out a “roadmap” for the reopening of the economy.
Non-essential shops could be opened from 1 June, and there are tentative signs the hospitality industry could get back to work from July. However, the conditional plan does little to quell the nerves of business owners who are facing collapse if economic activity remains frozen. A report by City Hall found 23 per cent of London’s businesses won’t last two months of the lockdown.
Nearly a third of those polled by Redfield and Wilton – 31 per cent – think the sooner the lockdown restrictions end the better the UK economy can recover. A fifth of Brits are more bullish and think the economy will recover however long lockdown lasts.
Chancellor Rishi Sunak has already warned that the UK will be plunged into a “significant recession”. Figures from the Office for National Statistics (ONS) released yesterday show UK GDP shrunk two per cent in the first quarter. It marked a record 5.8 per cent drop in March, almost entirely due to just over a week of lockdown measures which were implemented on the 23rd.
GDP is certain to shrink again this quarter, putting the UK on course for its first recession in nearly a decade.
However, 69 per cent of Brits believe once the threat of coronavirus is reduced, the better the economy can recover.
There are some glimmers of hope after the first batch of antibody tests from Swiss manufacturer Roche were approved. Boris Johnson has described them as a “game changer” and an important tool in helping people get back to work.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Brits anticipate return to work by summer
But the looming question is how and when Brits will return to work. The government launched its workplace guidance earlier this week but is still encouraging people to work from home where possible.
Of those who have been able to work from home, 57 per cent expect to be back at work in July, while 14 per cent expect a return after August.
The UK arms of banks and professional services firms are already drawing up plans to send staff back to the office after lockdown. In an email seen by City A.M., JP Morgan boss Jamie Dimon said the bank would reopen offices in phases with staff returning to work in “waves over a period of time.”
Sixty one per cent of the Brits surveyed said they never or almost never worked from home before the pandemic. Since the lockdown was announced at the end of March, 57 per cent have been able to work from home.
However, the eight weeks of lockdown may have shifted some companies to adopt a more flexible approach, and a fifth of Brits anticipate working from home indefinitely.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-05-15--Monzo faces steep valuation drop in coronavirus funding round

UK challenger bank Monzo is reportedly raising a fresh round of cash from investors at a 40 per cent discount to its previous fundraising .
The fintech is close to sealing a deal that will value it at around £1.25bn , compared to a valuation of more than £2bn at its previous funding round in June , according to the Financial Times .
The drop in its valuation comes in the context of the coronavirus pandemic and the ensuing economic chaos as growth slows and venture capital firms become increasingly cautious about investing in loss-making businesses .
Read more : @ @ @ @ @ @ @ on record The report said Monzo was planning to raise between £70m and £80m in the current round .
It is understood that the money raised is being sourced from both new and existing investors .
The FT reported that the deal is expected to close within the next month .
Monzo declined to comment .
Monzo was already seeking to raise cash before the coronavirus pandemic hit the UK .
Key backers of Monzo include US venture capital groups Y Combinator Continuity , Accel and Goodwater Capital , along with UK-based Passion @ @ @ @ @ @ @ in the wake of the coronavirus lockdown and in March chief executive Tom Blomfield said he would forgo his salary for 12 months .
Read more : Monzo applies for US banking licence in bid to tap giant market However , it still has its sights set on growth and last month applied for a US banking licence as it looks to expand across the Atlantic .
It could take Monzo between 18 months and two years to have its application approved .
The process , run by the US Office of the @ @ @ @ @ @ @ stringent than other countries ’ such as the UK .
Becoming a fully licensed bank would let Monzo provide a wide range of lending products and fully insured deposit accounts .
Read more : Coronavirus : Monzo boss won ’ t take salary for year as staff offered furlough

Monzo faces steep valuation drop in coronavirus funding round
Digital challenger
UK challenger bank Monzo is reportedly raising a fresh round of cash from investors at a 40 per cent discount to its previous fundraising.
The fintech is close to sealing a deal that will value it at around £1.25bn, compared to a valuation of more than £2bn at its previous funding round in June, according to the Financial Times.
The drop in its valuation comes in the context of the coronavirus pandemic and the ensuing economic chaos as growth slows and venture capital firms become increasingly cautious about investing in loss-making businesses.
The report said Monzo was planning to raise between £70m and £80m in the current round.
It is understood that the money raised is being sourced from both new and existing investors.
The FT reported that the deal is expected to close within the next month. Monzo declined to comment.
Monzo was already seeking to raise cash before the coronavirus pandemic hit the UK.
Key backers of Monzo include US venture capital groups Y Combinator Continuity, Accel and Goodwater Capital, along with UK-based Passion Capital.
Monzo has furloughed some staff in the wake of the coronavirus lockdown and in March chief executive Tom Blomfield said he would forgo his salary for 12 months.
However, it still has its sights set on growth and last month applied for a US banking licence as it looks to expand across the Atlantic.
It could take Monzo between 18 months and two years to have its application approved. The process, run by the US Office of the Comptroller of the Currency, is more stringent than other countries’ such as the UK.
Becoming a fully licensed bank would let Monzo provide a wide range of lending products and fully insured deposit accounts.


cityam--2020-05-15--Big-name UK firms at risk of having credit ratings downgraded

Some of the UK ’ s biggest companies are at risk of having their credit ratings downgraded and becoming “ fallen angels ” , ratings agency S & P has said , raising the possibility of a sharp rise in borrowing costs in the midst of the worst downturn since the 1930s .
Big names such as Next , British Airways and ITV are in danger of having their bond ratings downgraded from “ investment grade ” to “ junk ” .
Read more : When will the UK economy recover from coronavirus ?
Some of the world ’ s @ @ @ @ @ @ @ – as a way to raise money for investment .
Credit ratings agencies give these bonds a rating to tell investors how safe the securities are .
Many investors are required to hold “ investment grade ” assets and so could be forced to sell the bonds of companies that lose that label .
This raises the prospect that some firms might become unable to meet their obligations , as well as a general increase in strain on corporate bond markets .
S & P Global Ratings today said that a record number @ @ @ @ @ @ @ danger of having their credit ratings cut to junk as coronavirus hammers firms .
S & P said 111 companies are , in bond-market parlance , at risk of becoming fallen angels .
It said 24 firms have so far taken the plunge .
It comes as many of the world ’ s biggest companies feel the strain from the biggest downturn since at least the 1930s .
British Airways , for example , is cutting up to 12,000 jobs .
“ Potential fallen angels are significant , ” said Sudeep Kesh , @ @ @ @ @ @ @ research .
He said they could lead to firms facing higher capital costs and the need to revise contracts with bondholders , “ or worse , could lead to the sale of the bonds in favor of more creditworthy companies ” .
UK firms Ashtead , British Airways , FCE Bank , GKN Holdings , ITV , Kingfisher , Next and Virgin Money are at risk of being downgraded , S & P said .
So far during the Covid-19 crisis , only Marks & Spencer has had its credit rating downgraded to @ @ @ @ @ @ @ market has grown massively in recent years , becoming vital to many firms ’ operations .
It has come under severe strain , however , as coronavirus has all brought normal economic life to a halt .
Retail firms such as Next and media groups like ITV are no longer looking like good investments .
Central banks around the world have stepped in to buy companies ’ debt .
The US Federal Reserve has been the most active , but the Bank of England has offered UK firms a helping hand .
Read @ @ @ @ @ @ @ cash with bond funds the worst hit Kesh said : “ The financial sector led the additions to the potential fallen angels list , highlighting the challenges the sector is facing.
” “ However , we see the highest downgrade potential in the lodging and leisure and auto sectors .
”

British Airways, Next and ITV at risk of credit rating downgrades
British Airways is one of the UK firms S
Some of the UK’s biggest companies are at risk of having their credit ratings downgraded and becoming “fallen angels”, ratings agency S&P has said, raising the possibility of a sharp rise in borrowing costs in the midst of the worst downturn since the 1930s.
Big names such as Next, British Airways and ITV are in danger of having their bond ratings downgraded from “investment grade” to “junk”.
Some of the world’s biggest companies issue bonds – effectively IOUs – as a way to raise money for investment. Credit ratings agencies give these bonds a rating to tell investors how safe the securities are.
Many investors are required to hold “investment grade” assets and so could be forced to sell the bonds of companies that lose that label. This raises the prospect that some firms might become unable to meet their obligations, as well as a general increase in strain on corporate bond markets.
S&P Global Ratings today said that a record number of companies around the world are in danger of having their credit ratings cut to junk as coronavirus hammers firms.
S&P said 111 companies are, in bond-market parlance, at risk of becoming fallen angels. It said 24 firms have so far taken the plunge.
It comes as many of the world’s biggest companies feel the strain from the biggest downturn since at least the 1930s. British Airways, for example, is cutting up to 12,000 jobs.
“Potential fallen angels are significant,” said Sudeep Kesh, head of S&P Global credit research. He said they could lead to firms facing higher capital costs and the need to revise contracts with bondholders, “or worse, could lead to the sale of the bonds in favor of more creditworthy companies”.
UK firms could face a jump in borrowing costs
UK firms Ashtead, British Airways, FCE Bank, GKN Holdings, ITV, Kingfisher, Next and Virgin Money are at risk of being downgraded, S&P said.
So far during the Covid-19 crisis, only Marks & Spencer has had its credit rating downgraded to “junk”.
The corporate bond market has grown massively in recent years, becoming vital to many firms’ operations.
It has come under severe strain, however, as coronavirus has all brought normal economic life to a halt. Retail firms such as Next and media groups like ITV are no longer looking like good investments.
Central banks around the world have stepped in to buy companies’ debt. The US Federal Reserve has been the most active, but the Bank of England has offered UK firms a helping hand.
Kesh said: “The financial sector led the additions to the potential fallen angels list, highlighting the challenges the sector is facing.”
“However, we see the highest downgrade potential in the lodging and leisure and auto sectors.”


cityam--2020-05-15--Sadiq Khan: London transport fares will increase after £1.6bn TfL bailout

London mayor Sadiq Khan has said that he will be forced to increase fares on the capital ’ s bus and rail services after agreeing a £1.6bn bailout for network operator Transport for London .
In a statement , the mayor said that he had “ no choice ” but to accept the offer , which was the “ only deal the government put on the table ” , in order to keep services running .
In March , Khan had admitted that if he was re-elected mayor he would have to end the four-year freeze on tube fares due @ @ @ @ @ @ @ However , he had pledged to continue with the freeze on bus fares .
Describing the deal this morning , which consists of a £1.1bn grant and a £505m loan , as a “ sticking plaster ” , he warned that the cost would be felt be Londoners : “ The government is , in effect , making ordinary Londoners pay the cost for doing the right thing on Covid-19.
” “ They want fares to go up next January – ending the four years fares freeze I delivered after the last election @ @ @ @ @ @ @ travel is temporarily suspended for Freedom Pass and 60-plus card holders at peak times ” , he added .
Read more : Sadiq Khan : There will be no swift return to normality for TfL From January , fares will increase on all modes of transport in line with the RPI inflation rate , plus one per cent .
This is in line with the assumptions made in TfL ’ s business plan for the coming year .
Conservative mayoral candidate Shaun Bailey said that blaming the government for the increase was a @ @ @ @ @ @ @ ’ s taking Londoners for fools .
To believe Londoners can be hoodwinked this easily is disgraceful ” .
Keith Prince , Conservative transport spokesman at the London Assembly , said that Khan had “ some nerve ” to blame the government for the fare hike .
He said : “ Khan had already announced that the fare freeze would end before the country went into lockdown .
“ After four years of Khan ’ s incompetent handling of TfL ’ s finances , the Mayor is trying to escape the consequences and @ @ @ @ @ @ @ terms ” .
Service levels to increase to 100 per cent Under the conditions of the deal , Khan has committed to ramping up service levels to 100 per cent over the coming weeks : “ As staff are returning to work we are increasing services as fast as possible to get back to 100 per cent .
“ From Monday we aim to run around 85 per cent of buses , 75 per cent of Tubes , restore the Circle line and re-open some of the 37 closed stations ” , he @ @ @ @ @ @ @ View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Other conditions include a review of TfL ’ s finances and government officials taking seats on the board that oversees the transport operator .
Under plans released this morning , the government said that two special representatives will sit on TfL ’ s board , its finance committee and its programmes and investment committee .
In addition to the suspension of the Freedom pass , the deal will also temporarily suspend free travel for under 18s .
@ @ @ @ @ @ @ children eligible under national legislation can still travel to school for free .
The deal came together after the mayor had warned on LBC radio that he would be forced to cut services unless an agreement was reached yesterday .
The public body was on the brink of issuing a Section 114 notice , a statutory acknowledgement that its finances had breached a certain level .
According to the provider , revenue has dropped 90 per cent during the coronavirus pandemic as people have remained at home , meaning the operator was burning @ @ @ @ @ @ @ financial year , TfL is forecasting a loss of £4bn , with a £3.2bn funding gap which has now been partially plugged by the government .
Opponents said drastic measures now needed to be taken to ensure the long term viability of TfL : Read more : Sadiq Khan warns TfL will run out of cash today without government bailout Lib Dem mayoral candidate Siobhan Benita said : “ This bailout was essential but it has come with expensive conditions .
TfL ’ s finances were in a mess before this pandemic and @ @ @ @ @ @ @ ’ s hand in negotiations with the Government .
“ We now need to radical action to secure the long-term financial sustainability of TfL , including scrapping the £1billion polluting Silvertown Tunnel project and spreading the revenue-raising burden from public transport passengers to drivers , by introducing smart road pricing in the capital .
”

Sadiq Khan: London transport fares will increase after £1.6bn TfL bailout
London mayor Sadiq Khan has said that he will be forced to increase fares on the capital’s bus and rail services after agreeing a £1.6bn bailout for network operator Transport for London.
In a statement, the mayor said that he had “no choice” but to accept the offer, which was the “only deal the government put on the table”, in order to keep services running.
In March, Khan had admitted that if he was re-elected mayor he would have to end the four-year freeze on tube fares due to TfL’s financial situation.
However, he had pledged to continue with the freeze on bus fares.
Describing the deal this morning, which consists of a £1.1bn grant and a £505m loan, as a “sticking plaster”, he warned that the cost would be felt be Londoners:
“The government is, in effect, making ordinary Londoners pay the cost for doing the right thing on Covid-19.”
“They want fares to go up next January – ending the four years fares freeze I delivered after the last election.
“They have insisted that free travel is temporarily suspended for Freedom Pass and 60-plus card holders at peak times”, he added.
From January, fares will increase on all modes of transport in line with the RPI inflation rate, plus one per cent.
This is in line with the assumptions made in TfL’s business plan for the coming year.
Conservative mayoral candidate Shaun Bailey said that blaming the government for the increase was a “complete lie”:
“He’s taking Londoners for fools. To believe Londoners can be hoodwinked this easily is disgraceful”.
Keith Prince, Conservative transport spokesman at the London Assembly, said that Khan had “some nerve” to blame the government for the fare hike.
He said: “Khan had already announced that the fare freeze would end before the country went into lockdown.
“After four years of Khan’s incompetent handling of TfL’s finances, the Mayor is trying to escape the consequences and hide behind the government’s bailout terms”.
Service levels to increase to 100 per cent
Under the conditions of the deal, Khan has committed to ramping up service levels to 100 per cent over the coming weeks:
“As staff are returning to work we are increasing services as fast as possible to get back to 100 per cent.
“From Monday we aim to run around 85 per cent of buses, 75 per cent of Tubes, restore the Circle line and re-open some of the 37 closed stations”, he said.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Other conditions include a review of TfL’s finances and government officials taking seats on the board that oversees the transport operator.
Under plans released this morning, the government said that two special representatives will sit on TfL’s board, its finance committee and its programmes and investment committee.
In addition to the suspension of the Freedom pass, the deal will also temporarily suspend free travel for under 18s.
Special arrangements will be made to ensure children eligible under national legislation can still travel to school for free.
TfL staring down barrel of £4bn loss
The deal came together after the mayor had warned on LBC radio that he would be forced to cut services unless an agreement was reached yesterday.
The public body was on the brink of issuing a Section 114 notice, a statutory acknowledgement that its finances had breached a certain level.
According to the provider, revenue has dropped 90 per cent during the coronavirus pandemic as people have remained at home, meaning the operator was burning £600m a month.
Across the whole financial year, TfL is forecasting a loss of £4bn, with a £3.2bn funding gap which has now been partially plugged by the government.
Opponents said drastic measures now needed to be taken to ensure the long term viability of TfL:
Lib Dem mayoral candidate Siobhan Benita said: “This bailout was essential but it has come with expensive conditions. TfL’s finances were in a mess before this pandemic and that seems to have weakened the Mayor’s hand in negotiations with the Government.
“We now need to radical action to secure the long-term financial sustainability of TfL, including scrapping the £1billion polluting Silvertown Tunnel project and spreading the revenue-raising burden from public transport passengers to drivers, by introducing smart road pricing in the capital.”


cityam--2020-05-15--Congestion charge set to rise 30 per cent after TfL bailout

London ’ s congestion charge is set to rise to £15 a day from 22 June , it was revealed today , as a consequence of the government ’ s bailout of Transport for London .
From next month , a 30 per cent increase would see the daily charge rise from £11.50 to £15 .
Read more : Sadiq Khan : London transport fares will increase after £1.6bn TfL bailout The scheme ’ s operating hours will also extend to include the weekend , as opposed to just weekdays .
During the coronavirus lockdown , the charge had been @ @ @ @ @ @ @ home or were travelling for essential reasons .
From Monday , the charge will be reinstated , before the hike next month , as will the ULEZ zone .
A review of the congestion charge was a condition of the government ’ s £1.6bn bailout of the network , which was agreed last night .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
City Hall said that the £15 increase was a temporary measure in order to support the transformation @ @ @ @ @ @ @ the world ’ s largest car-free zone .
The reintroduction of the charge is designed to prevent London ’ s roads becoming full of traffic as people slowly return to work amid easing lockdown measures .
With commuters being urged to avoid using public transport , a rise in driver numbers seems inevitable for those people who can not walk or cycle to work .
It is estimated that increasing the charge will lower the number of journeys made by car by a third .
City Hall said : “ This would significantly @ @ @ @ @ @ @ to pre-Covid levels and help tackle the climate emergency ” .

Congestion charge set to rise 30 per cent after TfL bailout
London’s congestion charge is set to rise to £15 a day from 22 June, it was revealed today, as a consequence of the government’s bailout of Transport for London.
From next month, a 30 per cent increase would see the daily charge rise from £11.50 to £15.
The scheme’s operating hours will also extend to include the weekend, as opposed to just weekdays.
During the coronavirus lockdown, the charge had been suspended as most people were working from home or were travelling for essential reasons.
From Monday, the charge will be reinstated, before the hike next month, as will the ULEZ zone.
A review of the congestion charge was a condition of the government’s £1.6bn bailout of the network, which was agreed last night.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
City Hall said that the £15 increase was a temporary measure in order to support the transformation of the capital’s streets into the world’s largest car-free zone.
The reintroduction of the charge is designed to prevent London’s roads becoming full of traffic as people slowly return to work amid easing lockdown measures.
With commuters being urged to avoid using public transport, a rise in driver numbers seems inevitable for those people who cannot walk or cycle to work.
It is estimated that increasing the charge will lower the number of journeys made by car by a third.
City Hall said: “This would significantly reduce air pollution in central London compared to pre-Covid levels and help tackle the climate emergency”.
More to follow.


cityam--2020-05-15--FTSE 100 rebounds after steep fall as investor sentiment improves

The UK ’ s FTSE 100 has risen in the wake of better-than-expected Chinese factory data , after a week of choppy trading that has seen investors second-guess the recent stock market rally .
The blue-chip index climbed 0.8 per cent in morning trading to 5,785 points .
It tumbled 2.8 per cent yesterday , however , as global sentiment darkened amid warnings over the global economy .
Read more : Coronavirus sends Eurozone economy to worst quarter on record European markets also rose despite terrible Eurozone economic data .
The continent-wide Stoxx 600 was up 0.8 per cent .
@ @ @ @ @ @ @ cent higher and France ’ s Cac was up 0.4 per cent .
Asian markets were mixed overnight .
They did not follow the lead of Wall Street , where indices staged a late rally as oil prices rose .
Japan ’ s Nikkei 225 finished 0.6 per cent higher .
But China ’ s Shanghai composite and Hong Kong ’ s Hang Seng both dropped 0.1 per cent .
Data showed that Chinese factory output rose for the first time this year .
Industrial output increased 3.9 per cent , better than @ @ @ @ @ @ @ been expecting .
This lifted the commodity-heavy FTSE 100 , with investors buoyed by the news of rising demand .
Miners including Anglo American , Glencore and BHP Group all climbed more than five per cent .
“ However , a full recovery is not in sight yet , ” said Hao Zhou , an analyst at Commerzbank .
“ The road ahead will be rocky due to a weak job market , high leverage and policy execution difficulties.
” Listen to our daily City View podcast as we chart the economic fallout @ @ @ @ @ @ @ .
Investors were not dissuaded from buying equities by data that showed the Eurozone economy shrank by 3.8 per cent in the first quarter , its worst three months on record .
Markets have largely looked past GDP data because they have already “ priced in ” large drops in output .
European stocks catching up with US rally US stocks rallied last night after oil prices rose sharply .
The jump was spurred by the International Energy Agency increasing its estimate for global oil demand .
Traders brushed off another terrible jobs @ @ @ @ @ @ @ now made a new jobless claim since the coronavirus pandemic began .
Jim Reid of Deutsche Bank said : “ Since the first historic spike of initial jobs claims on 19 March , seven out of the nine Thursdays have seen the S & P rally in the face of massive unemployment numbers.
” Jasper Lawler , head of research at London Capital Group , said : “ Shares in Europe are playing catch up with a late turnaround on Wall Street that happened yesterday after the European close .
However , US @ @ @ @ @ @ @ later.
” Oil was higher this morning .
Brent crude was up 1.4 per cent at $ 31.60 per barrel .
WTI crude , the US benchmark , was 1.6 per cent higher at $ 30 .
Despite the FTSE 100 and European rally , gold hit a one-month high as investors hedged their bets on an economic recovery .
“ Extra dollars being printed and the rising possibility that the US Federal Reserve eventually gives in to negative rates are positives for non-interest bearing assets , ” said Lawler .
US and @ @ @ @ @ @ @ residual investor unease .
The pound was down 0.2 per cent against the dollar at $ 1.22 as the FTSE 100 rose .

FTSE 100 rises but US stocks stall after dire retail sales data
The City of London is tentatively preparing to reopen as the government eases the coronavirus lockdown
US stocks have fallen in the wake of dire retail sales data, even as the FTSE 100 has risen on the final day of a choppy week of trading that has seen investors second-guess the recent stock market rally.
The UK’s FTSE 100 index was up 1.5 per cent this afternoon at 5,785 points in the wake of better-than-expected Chinese factory data. It tumbled 2.8 per cent yesterday, however, as global sentiment darkened amid warnings over the economy.
Read more: Coronavirus sends Eurozone economy to worst quarter on record
Wall Street initially fell sharply, but US stocks recovered some ground as economic signals pulled investors in different directions.
The Dow Jones was down 0.2 per cent in early trading while the S&P 500 was 0.3 per cent lower.
European markets rose despite terrible Eurozone economic data. The continent-wide Stoxx 600 was up 1.1 per cent and Germany’s Dax was 1.7 per cent higher.
Jasper Lawler, head of research at London Capital Group, said: “Shares in Europe are playing catch up with a late turnaround on Wall Street that happened yesterday after the European close.”
Chinese data helps FTSE 100’s miners
Data this morning showed that Chinese factory output rose for the first time this year. Industrial output increased 3.9 per cent, better than the 1.5 per cent increase economists had been expecting.
This lifted the commodity-heavy FTSE 100, with investors buoyed by the news of rising demand. Miners including Anglo American, Glencore and BHP Group all climbed more than five per cent.
“However, a full recovery is not in sight yet,” said Hao Zhou, an analyst at Commerzbank. “The road ahead will be rocky due to a weak job market, high leverage and policy execution difficulties.”
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Investors were not dissuaded from buying equities by data that showed the Eurozone economy shrank by 3.8 per cent in the first quarter, its worst three months on record.
Markets have largely looked past GDP data because they have already “priced in” large drops in output.
US stocks brush off retail sale plunge
US stocks opened sharply lower after data showed that retail sales dropped by 16.4 per cent in April. That was the sharpest fall on record for the second month in a row.
However, stocks recovered some ground so they were only marginally lower an hour into trading. Rising oil prices helped US stocks, providing investors with an encouraging signal about future demand.
Brent crude was up 2.5 per cent at $31.90 per barrel. WTI crude, the US benchmark, was five per cent higher at $29. US oil giants Exxonmobil and Chevron both climbed.
Despite the FTSE 100 and European rally, gold hit a one-month high as investors hedged their bets on an economic recovery.
“Extra dollars being printed and the rising possibility that the US Federal Reserve eventually gives in to negative rates are positives for non-interest bearing assets,” said Lawler of London Capital Group.
US and UK government bonds both fell as investor confidence sent European stocks higher.
The pound was down 0.7 per cent against the dollar at $1.214 as the latest round of Brexit talks ended with little progress.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: “The clock is ticking louder to the critical 2 June deadline and the chances of seeing a deal remain slim.”


cityam--2020-05-15--William Hill share price jumps on hope Bundesliga betting turns around its fortunes

Bookmaker William Hill ’ s shares rose this morning on hopes that the return of Bundesliga football in Germany and horse racing will help it emerge from the crisis .
William Hill said total net revenue plunged 57 per cent in the weeks following the start of coronavirus lockdowns in Europe and North America .
The bookmaker has warned that it would suffer an impact of £100-£110m on core earnings if its high street shops had to close for a month and most sports events remained suspended until August .
Today , it said it was performing ahead of this @ @ @ @ @ @ @ shop closures .
“ It is also becoming clear that the situation has not been anywhere near as bad as first feared with the government furlough helping , while the restarting of sporting events in the coming months could also offer some respite , ” CMC Markets analyst Michael Hewson said .
William Hill shares rose more than eight per cent to 115p this morning .
The bookmaker said it expects each additional month of shop closures to impact core earnings by up to £15m , about half of its initial estimate , @ @ @ @ @ @ @ furloughed workers .
Read more : Germany to reopen shops and restart football in lockdown easing plan The company also said its creditors had waived revolving credit facility covenants for 2020 and that it had reduced its cash burn to around £15m per month by cutting marketing spending , cancelling salary hikes and furloughing employees .
William Hill said it was encouraged by the return of live football – which accounts for approximately half of its online UK sports book , and horse racing – which contributes nearly a third .
The Bundesliga @ @ @ @ @ @ @ this weekend , while horseracing has begun in France and is expected to resume behind closed doors in June in the UK .

William Hill share price jumps on hope Bundesliga betting turns around its fortunes
Bookmaker William Hill’s shares rose this morning on hopes that the return of Bundesliga football in Germany and horse racing will help it emerge from the crisis.
William Hill said total net revenue plunged 57 per cent in the weeks following the start of coronavirus lockdowns in Europe and North America.
The bookmaker has warned that it would suffer an impact of £100-£110m on core earnings if its high street shops had to close for a month and most sports events remained suspended until August.
Today, it said it was performing ahead of this scenario which now incorporates three months of shop closures.
“It is also becoming clear that the situation has not been anywhere near as bad as first feared with the government furlough helping, while the restarting of sporting events in the coming months could also offer some respite,” CMC Markets analyst Michael Hewson said.
William Hill shares rose more than eight per cent to 115p this morning.
The bookmaker said it expects each additional month of shop closures to impact core earnings by up to £15m, about half of its initial estimate, assuming the continuation of government support for furloughed workers.
The company also said its creditors had waived revolving credit facility covenants for 2020 and that it had reduced its cash burn to around £15m per month by cutting marketing spending, cancelling salary hikes and furloughing employees.
William Hill said it was encouraged by the return of live football – which accounts for approximately half of its online UK sports book, and horse racing – which contributes nearly a third.
The Bundesliga is expected to return behind closed doors this weekend, while horseracing has begun in France and is expected to resume behind closed doors in June in the UK.


cityam--2020-05-15--Coronavirus sends Eurozone economy to worst quarter on record

The Eurozone economy shrank at the fastest pace on record in the first three months of the year , official figures have shown , as coronavirus brought normal life to a halt .
Euro area GDP plunged 3.8 per cent quarter on quarter in the first three months of the year , according to EU statistics body Eurostat .
That is the worst performance since before the euro was created in the late 1990s .
Read more : German economy shrinks at fastest pace since financial crisis The dire reading followed on from a weak final quarter of 2019 , @ @ @ @ @ @ @ by just 0.1 per cent .
Analysts say second-quarter GDP figures will be far worse , however .
The first quarter contained just a few weeks of coronavirus lockdown in March .
But in April non-essential activities effectively ground to a halt for the whole month .
France ’ s economy was the hardest-hit in the first quarter , shrinking by 5.8 per cent .
Italy – where a severe pandemic broke out early in March – saw its economy contract by 4.7 per cent .
The European Commission has predicted that the @ @ @ @ @ @ @ per cent this year .
The official Eurozone GDP data comes as the area ’ s economies gradually reopen after lengthy lockdowns .
However , markets have been jittery this week over fears of a second wave of infections .
Germany reported a rise in new cases as it reopened some shops and other businesses .
In the first quarter , employment fell by 0.2 per cent in the Eurozone , Eurostat said .
That is the first decline since the Eurozone crisis in 2013 .
Read more : When will the UK @ @ @ @ @ @ @ , senior Europe economist at Capital Economics , said : “ The first-quarter GDP data confirm that virus containment measures have caused much bigger declines in activity in some euro-zone countries than in others.
” For example , UK GDP dropped two per cent .
“ Over the rest of the year , we think that there will be much greater variation in economic performance across the region than official forecasts suggest .
”

Coronavirus sends Eurozone economy to worst quarter on record
Coronavirus has affected all the countries in Europe, with the Eurozone economy particularly hard-hit
The Eurozone economy shrank at the fastest pace on record in the first three months of the year, official figures have shown, as coronavirus brought normal life to a halt.
Euro area GDP plunged 3.8 per cent quarter on quarter in the first three months of the year, according to EU statistics body Eurostat. That is the worst performance since before the euro was created in the late 1990s.
The dire reading followed on from a weak final quarter of 2019, when the zone’s economy grew by just 0.1 per cent.
Analysts say second-quarter GDP figures will be far worse, however. The first quarter contained just a few weeks of coronavirus lockdown in March. But in April non-essential activities effectively ground to a halt for the whole month.
France’s economy was the hardest-hit in the first quarter, shrinking by 5.8 per cent. Italy – where a severe pandemic broke out early in March – saw its economy contract by 4.7 per cent.
Europe’s biggest economy Germany contracted by 2.2 per cent, figures showed today.
The European Commission has predicted that the 19-member Eurozone economy will shrink by 7.7 per cent this year.
The official Eurozone GDP data comes as the area’s economies gradually reopen after lengthy lockdowns.
However, markets have been jittery this week over fears of a second wave of infections. Germany reported a rise in new cases as it reopened some shops and other businesses.
In the first quarter, employment fell by 0.2 per cent in the Eurozone, Eurostat said. That is the first decline since the Eurozone crisis in 2013.
Jack Allen-Reynolds, senior Europe economist at Capital Economics, said: “The first-quarter GDP data confirm that virus containment measures have caused much bigger declines in activity in some euro-zone countries than in others.” For example, UK GDP dropped two per cent.
“Over the rest of the year, we think that there will be much greater variation in economic performance across the region than official forecasts suggest.”


cityam--2020-05-15--When will the UK economy recover from coronavirus?

The UK economy is set for its worst contraction since at least the Great Depression this year as the coronavirus lockdown brings activity to a halt .
There ’ s little doubt about that .
There is doubt about what comes next , however .
Economists have made huge numbers of predictions , using an array of letters to describe the recovery .
Some say it will be ‘ V-shaped ’ , with a steep decline followed by a sharp rebound .
Read more : Bank of England : UK economy could suffer biggest crash in 300 years Others say @ @ @ @ @ @ @ , with the damage from unemployment and company failures lasting longer .
Some warn it will be ‘ W-shaped ’ , featuring a rebound followed by another recession as coronavirus and the lockdown returns .
Others yet describe a dreaded ‘ L-shaped ’ recovery where unemployment low growth drags down the economy ’ s prospects .
Economists are very careful to caveat their predictions heavily .
“ These are numbers that we ’ ve never , never dealt with before in our professional lives , ” says Andrew Goodwin , chief UK economist @ @ @ @ @ @ @ are becoming more educated as the government clarifies its lockdown plans and more economic data emerges .
So , what are some of the most clued-up people saying about the future of the UK economy ?
Read more : How badly will coronavirus hit UK house prices in 2020 ?
The Bank of England last week produced a detailed report on the UK economy .
Its main “ scenario ” says GDP would this year shrink by 14 per cent – the worst crash in 300 years .
The UK economy shrank by @ @ @ @ @ @ @ amid the financial crisis .
But crucially the Bank says the economy will pick up quickly at the end of the year and grow 15 per cent in 2021 .
It would then regain its pre-coronavirus size in the second half of next year .
On a graph , that looks like a pronounced ‘ V-shaped ’ recovery .
The government ’ s unprecedented support packages such as the job retention scheme ( as well as the huge injections of stimulus from the Bank itself ) are central to its prediction of a @ @ @ @ @ @ @ support schemes will be unwound without a surge in unemployment or company defaults .
Doing so is likely “ to help prevent much longer-lasting damage ” .
Economists agree that the recovery from this largely government-enforced slowdown will be quicker than after the financial crisis .
But many say the BoE ’ s assumptions are overly optimistic .
In particular , they say that a surge in unemployment and a wave of company failures are likely to cause more damage than the Bank expects .
Analysts agree that government support schemes have staved @ @ @ @ @ @ @ aid the recovery .
Chancellor Rishi Sunak this week extended the job retention scheme .
This scheme sees the government pay 80 per cent of “ furloughed ” workers ’ wages , until October .
But many economists say that no matter when it ends , unemployment is likely to rise .
Capital Economics : UK economy will fall 12 per cent in 2020 , no recovery until 2022 Ruth Gregory , senior UK economist at consultancy Capital Economics , says workers may well “ find they don ’ t have jobs to @ @ @ @ @ @ @ firms find they can not balance the books ” .
The BoE predicts unemployment will dip below four per cent by 2023 .
But Gregory says it is likely to stay higher for longer .
This is a worry for many reasons .
Unemployment holds down household incomes and so reduces consumer spending .
This would stunt the recovery in the UK ’ s dominant services sector .
“ The big concern , ” says Goodwin , “ is that you have a big increase in unemployment .
Those people lose their skills @ @ @ @ @ @ @ supply and it ’ s hard to get them back in.
” Capital Economics predicts GDP will fall 12 per cent in 2020 before rebounding 10 per cent in 2021 .
Gregory says the “ scarring ” means the economy will not reach its pre-coronavirus size until late 2022 .
That ’ s more than a year later than the Bank of England expects .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Goldman Sachs : Economy to shrink 8.5 @ @ @ @ @ @ @ per cent in 2021 Adrian Paul , European economist at Goldman Sachs , says “ packets of corporate insolvency ” are likely to combine with persistent unemployment to cause “ deep-seated scars ” .
For Goldman , the UK economy will shrink 8.5 per cent in 2020 before growing seven per cent in 2021 .
Yael Selfin , chief UK economist at professional services giant KPMG , argues that coronavirus itself will weigh on the British economy until a vaccine or treatment is found .
New cases have emerged this week in China @ @ @ @ @ @ @ A new wave of infections raises the prospect of a second lockdown .
Therefore , any recovery is “ going to probably be more of a ‘ U ’ or a ‘ W ’ , depending on whether we have another lockdown , ” Selfin says .
KPMG : UK GDP to shrink 7.8 per cent in 2020 , rebound 8.4 per cent in 2021 KPMG ’ s last prediction from the end of April says the UK economy will shrink by 7.8 per cent in 2020 and be held back by a @ @ @ @ @ @ @ a vaccine will be developed in 2021 and growth will rebound by 8.4 per cent that year .
Prime Minister Boris Johnson at the weekend laid out a “ roadmap ” for gradually lifting the coronavirus lockdown .
The government has encouraged some employees to return to work this week and hospitality businesses could open after 1 July .
But many economists say the psychological effects of coronavirus are likely to weigh on the UK public , even as restrictions are eased .
Selfin says that social distancing is here to stay , @ @ @ @ @ @ @ “ means that almost no one will be able to operate back to normal , ” she says .
“ It means that certain industries like the hospitality industry , international travel are going to be particularly badly impacted.
” One thing economists can agree on is that huge levels of uncertainty make any predictions hostage to fortune .
The UK economy will be heavily influenced by the length of the coronavirus restrictions .
Data out this week showed that GDP in March fell by a record 5.8 per cent because of just @ @ @ @ @ @ @ : Coronavirus : UK economy shrinks two per cent in first quarter of 2020 And should the number of new coronavirus cases keep falling , the government still faces a tough task to reassure people that it is safe to go out and spend .
So will the UK economy rebound sharply from the coronavirus crash ?
The frustrating answer is that it is far too early to tell .
Even the most important financial institution in the UK has little clue .
The Bank of England ’ s report into the economy @ @ @ @ @ @ @ times .

When will the UK economy recover from coronavirus?
When will the UK economy recover from the fallout of coronavirus lockdown measures? Economists don’t agree.
The UK economy is set for its worst contraction since at least the Great Depression this year as the coronavirus lockdown brings activity to a halt. There’s little doubt about that.
There is doubt about what comes next, however. Economists have made huge numbers of predictions, using an array of letters to describe the recovery. Some say it will be ‘V-shaped’, with a steep decline followed by a sharp rebound.
Others say the recovery will be ‘U-shaped’, with the damage from unemployment and company failures lasting longer. Some warn it will be ‘W-shaped’, featuring a rebound followed by another recession as coronavirus and the lockdown returns.
Economists are very careful to caveat their predictions heavily. “These are numbers that we’ve never, never dealt with before in our professional lives,” says Andrew Goodwin, chief UK economist at consultancy Oxford Economics.
But guesses are becoming more educated as the government clarifies its lockdown plans and more economic data emerges. So, what are some of the most clued-up people saying about the future of the UK economy?
Bank of England predicts ‘V-shaped’ recovery
The Bank of England last week produced a detailed report on the UK economy. Its main “scenario” says GDP would this year shrink by 14 per cent – the worst crash in 300 years. The UK economy shrank by just over four per cent in 2009 amid the financial crisis.
But crucially the Bank says the economy will pick up quickly at the end of the year and grow 15 per cent in 2021. It would then regain its pre-coronavirus size in the second half of next year. On a graph, that looks like a pronounced ‘V-shaped’ recovery.
The government’s unprecedented support packages such as the job retention scheme (as well as the huge injections of stimulus from the Bank itself) are central to its prediction of a sharp rebound.
The Bank assumes government support schemes will be unwound without a surge in unemployment or company defaults. Doing so is likely “to help prevent much longer-lasting damage”.
Economists agree that the recovery from this largely government-enforced slowdown will be quicker than after the financial crisis. But many say the BoE’s assumptions are overly optimistic.
Economists fear spike in unemployment
UK unemployment could surge if measures to protect jobs during the coronavirus lockdown end suddenly
In particular, they say that a surge in unemployment and a wave of company failures are likely to cause more damage than the Bank expects.
Analysts agree that government support schemes have staved off an even worse collapse and will aid the recovery. This scheme sees the government pay 80 per cent of “furloughed” workers’ wages, until October. But many economists say that no matter when it ends, unemployment is likely to rise.
Ruth Gregory, senior UK economist at consultancy Capital Economics, says workers may well “find they don’t have jobs to go back to [and] more firms find they cannot balance the books”.
The BoE predicts unemployment will dip below four per cent by 2023. But Gregory says it is likely to stay higher for longer.
This would stunt the recovery in the UK’s dominant services sector. “The big concern,” says Goodwin, “is that you have a big increase in unemployment. Those people lose their skills, they drift out of the labour supply and it’s hard to get them back in.”
Capital Economics predicts GDP will fall 12 per cent in 2020 before rebounding 10 per cent in 2021. Gregory says the “scarring” means the economy will not reach its pre-coronavirus size until late 2022. That’s more than a year later than the Bank of England expects.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Adrian Paul, European economist at Goldman Sachs, says “packets of corporate insolvency” are likely to combine with persistent unemployment to cause “deep-seated scars”.
For Goldman, the UK economy will shrink 8.5 per cent in 2020 before growing seven per cent in 2021.
Second wave of infections threatens UK economy
A deserted Westminster Bridge illustrates the impact of the UK coronavirus lockdown on commuting and the economy
Yael Selfin, chief UK economist at professional services giant KPMG, argues that coronavirus itself will weigh on the British economy until a vaccine or treatment is found. New cases have emerged this week in China, South Korea and Hong Kong.
A new wave of infections raises the prospect of a second lockdown. Therefore, any recovery is “going to probably be more of a ‘U’ or a ‘W’, depending on whether we have another lockdown,” Selfin says.
KPMG’s last prediction from the end of April says the UK economy will shrink by 7.8 per cent in 2020 and be held back by a second lockdown. Nonetheless, it assumes a vaccine will be developed in 2021 and growth will rebound by 8.4 per cent that year.
Prime Minister Boris Johnson at the weekend laid out a “roadmap” for gradually lifting the coronavirus lockdown. The government has encouraged some employees to return to work this week and hospitality businesses could open after 1 July.
But many economists say the psychological effects of coronavirus are likely to weigh on the UK public, even as restrictions are eased. Selfin says that social distancing is here to stay, whether government enforced or not.
This “means that almost no one will be able to operate back to normal,” she says. “It means that certain industries like the hospitality industry, international travel are going to be particularly badly impacted.”
UK economy faced with radical uncertainty
One thing economists can agree on is that huge levels of uncertainty make any predictions hostage to fortune.
The UK economy will be heavily influenced by the length of the coronavirus restrictions. Data out this week showed that GDP in March fell by a record 5.8 per cent because of just one week of lockdown.
And should the number of new coronavirus cases keep falling, the government still faces a tough task to reassure people that it is safe to go out and spend.
So will the UK economy rebound sharply from the coronavirus crash? The frustrating answer is that it is far too early to tell. Even the most important financial institution in the UK has little clue. The Bank of England’s report into the economy features the word “uncertain” 67 times.


cityam--2020-05-15--Woodford protege Mark Barnett leaves Invesco after 24 years

Woodford protege Mark Barnett is leaving Invesco after 24 years , after a disappointing few months .
Invesco confirmed the departure after Sky News reported Barnett would be leaving the firm after a difficult few months for the fund manager .
Read more : Invesco and Woodford protege Mark Barnett sacked by Perpetual Income and Growth It comes just weeks after he was sacked by Perpetual Income and Growth Trust after more than two decades .
The trust ’ s board said it was concerned with Invesco ’ s “ poor performance.
” It was a further blow to Barnett @ @ @ @ @ @ @ Investment Trust at the end of last year .
Last month Barnett was forced to apologise to investors over his performance after his £5.1bn high income and £2.7bn income funds were downgraded by Morningstar .
It had cited concerns over the funds ’ exposure to smaller and illiquid companies .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
The performance of Barnett ’ s funds has been hit by a drop in the value of a number of listed companies @ @ @ @ @ @ @ AA , BT and Kier .
The fund manager ’ s responsibilities will be taken on by two members of the firm ’ s UK equities team , James Goldstone and Ciaran Mallon .
Barnett ’ s departure was agreed following a review by chief investment officer Stephanie Butcher .
Read more : Goldman Sachs in talks to buy Invesco holdings Ryan Hughes , head of active portfolios at AJ Bell , said : “ “ News that Mark Barnett has left Invesco will perhaps come as little surprise after the last couple @ @ @ @ @ @ @ asked over the positions taken in the portfolios , particularly around illiquid small caps and unquoted companies.
” “ While Invesco would have been hoping that the steps taken to improve performance in recent months would have been sufficient , it is clear that making a clean break has been decided as the better course of action for both parties .
With a review of the UK range also having taken place , Invesco clearly want to try and get their UK franchise back on the front foot , however it will take @ @ @ @ @ @ @ to turn around performance.
” Get the news as it happens by following City A.M. on Twitter .

Woodford protege Mark Barnett leaves Invesco after 24 years
Woodford protege Mark Barnett is leaving Invesco after 24 years, after a disappointing few months.
Invesco confirmed the departure after Sky News reported Barnett would be leaving the firm after a difficult few months for the fund manager.
It comes just weeks after he was sacked by Perpetual Income and Growth Trust after more than two decades. The trust’s board said it was concerned with Invesco’s “poor performance.” It was a further blow to Barnett, who was also sacked by Edinburgh Investment Trust at the end of last year.
Last month Barnett was forced to apologise to investors over his performance after his £5.1bn high income and £2.7bn income funds were downgraded by Morningstar. It had cited concerns over the funds’ exposure to smaller and illiquid companies.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The performance of Barnett’s funds has been hit by a drop in the value of a number of listed companies he had large stakes in, including AA, BT and Kier.
The fund manager’s responsibilities will be taken on by two members of the firm’s UK equities team, James Goldstone and Ciaran Mallon. Barnett’s departure was agreed following a review by chief investment officer Stephanie Butcher.
Ryan Hughes, head of active portfolios at AJ Bell, said: ““News that Mark Barnett has left Invesco will perhaps come as little surprise after the last couple years with performance suffering and questions being asked over the positions taken in the portfolios, particularly around illiquid small caps and unquoted companies.”
“While Invesco would have been hoping that the steps taken to improve performance in recent months would have been sufficient, it is clear that making a clean break has been decided as the better course of action for both parties. With a review of the UK range also having taken place, Invesco clearly want to try and get their UK franchise back on the front foot, however it will take a long time for the new managers to turn around performance.”
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-05-15--Coronavirus could cost global economy $8.8 trillion

The global economy could haemorrhage between $ 5.8 trillion and $ 8.8 trillion ( £4.7 trillion-£7.1trillion ) this year depending on how long coronavirus containment measures last , the Asian Development Bank has said .
In the worst-case scenario , that would be equivalent to almost 10 per cent of the world ’ s output .
Economists say the world is going through its worst economic shock since the Great Depression .
Read more : German economy shrinks at fastest pace since financial crisis The estimate comes as data showed Germany ’ s economy shrank by 2.2 per cent in @ @ @ @ @ @ @ since the financial crisis .
Yesterday , US jobless claims figures showed that 36m Americans have claimed for unemployment benefits since the beginning of the coronavirus pandemic .
The Asian Development Bank ( ADB ) ’ s latest estimate of the cost of Covid-19 was far higher than a guess it made in early April .
It said on 3 April that the hit would range from $ 2.0 trillion to $ 4.1 trillion .
The ADB focuses on supporting growth in Asia .
It estimated that economic losses in Asia and the @ @ @ @ @ @ @ trillion if lockdowns continue for three months to $ 2.5 trillion if they last six months .
China could suffer losses between $ 1.1 trillion and $ 1.6 trillion , it said .
“ This new analysis presents a broad picture of the very significant potential economic impact of COVID-19 , ” said ADB Chief Economist Yasuyuki Sawada .
“ It also highlights the important role policy interventions can play to help mitigate damage to economies.
” The ADB praised central banks and governments around the world for unleashing unprecedented firepower to tackle @ @ @ @ @ @ @ US jobless claims : Nearly 3m more Americans file for unemployment benefits as lockdown slams economy It said that measures such as fiscal and monetary easing , increased health spending , and direct support for incomes and revenues could soften Covid‑19 ’ s economic impact by as much as 30 per cent to 40 per cent .
As with all forecasts in the Covid-19 era , however , the Bank said things were highly uncertain .

Coronavirus could cost global economy $8.8 trillion
People have returned to work in Hubei province in China, where coronavirus emerged
The global economy could haemorrhage between $5.8 trillion and $8.8 trillion (£4.7 trillion-£7.1trillion) this year depending on how long coronavirus containment measures last, the Asian Development Bank has said.
In the worst-case scenario, that would be equivalent to almost 10 per cent of the world’s output. Economists say the world is going through its worst economic shock since the Great Depression.
The estimate comes as data showed Germany’s economy shrank by 2.2 per cent in the first quarter in its biggest fall since the financial crisis.
Yesterday, US jobless claims figures showed that 36m Americans have claimed for unemployment benefits since the beginning of the coronavirus pandemic.
The Asian Development Bank (ADB)’s latest estimate of the cost of Covid-19 was far higher than a guess it made in early April. It said on 3 April that the hit would range from $2.0 trillion to $4.1 trillion.
The ADB focuses on supporting growth in Asia. It estimated that economic losses in Asia and the Pacific region could range from $1.7 trillion if lockdowns continue for three months to $2.5 trillion if they last six months. China could suffer losses between $1.1 trillion and $1.6 trillion, it said.
“This new analysis presents a broad picture of the very significant potential economic impact of COVID-19,” said ADB Chief Economist Yasuyuki Sawada.
“It also highlights the important role policy interventions can play to help mitigate damage to economies.”
The ADB praised central banks and governments around the world for unleashing unprecedented firepower to tackle the economic downturn.
It said that measures such as fiscal and monetary easing, increased health spending, and direct support for incomes and revenues could soften Covid‑19’s economic impact by as much as 30 per cent to 40 per cent.
As with all forecasts in the Covid-19 era, however, the Bank said things were highly uncertain.


cityam--2020-05-15--All care homes residents and staff to be tested for coronavirus by early June, health secretary says

Health secretary Matt Hancock told the government ’ s daily coronavirus briefing today that all care home patients and staff would be tested for covid-19 by early June .
The government has been critcised for the measures taken to protect care home residents from covid-19 which is still a serious problem in the care system .
Read more : Coronavirus ‘ R ’ rate as high as one , says SAGE Hancock said there has been a “ huge need to protect people in care homes ” and said the government has worked to do this “ right from the @ @ @ @ @ @ @ £600m has been made available to care homes this week to help fight the virus .
This is in addition to the £172m available to devolved governments , Hancock said .
Hancock today said the government is requiring councils to regularly review the situation in local care homes .
The health secretary said two thirds of care homes in England have had no coronavirus outbreaks .
Read more : Coronavirus : 384 more deaths recorded in the UK Hancock said the number of care homes reporting an outbreak has fallen and the number @ @ @ @ @ @ @ .
However , he said there is “ so much more to do ” .
“ We ’ ll do everything humanly possible to protect them as long as they are threatened by this virus , ” he said of care home residents .
The number of coronavirus deaths in the UK has risen by 384 to 33,998 , the Department of Health said earlier .

All care homes residents and staff to be tested for coronavirus by early June, health secretary says
Health secretary Matt Hancock told the government’s daily coronavirus briefing today that all care home patients and staff would be tested for covid-19 by early June.
The government has been critcised for the measures taken to protect care home residents from covid-19 which is still a serious problem in the care system.
Hancock said there has been a “huge need to protect people in care homes” and said the government has worked to do this “right from the start”.
The health secretary said £600m has been made available to care homes this week to help fight the virus. This is in addition to the £172m available to devolved governments, Hancock said.
Hancock today said the government is requiring councils to regularly review the situation in local care homes.
The health secretary said two thirds of care homes in England have had no coronavirus outbreaks.
Hancock said the number of care homes reporting an outbreak has fallen and the number of deaths in care homes has halved.
However, he said there is “so much more to do”.
“We’ll do everything humanly possible to protect them as long as they are threatened by this virus,” he said of care home residents.
The number of coronavirus deaths in the UK has risen by 384 to 33,998, the Department of Health said earlier.