cityam--2020-06-29--Why Fintech investing will become more attractive post COVID-19

With the global economy predicted to fall , valuations in Fintech companies will be hit hard , too .
This will provide investors unique opportunities to invest into those Fintech firms at attractive valuations , which will shape the future of financial services .
Fintech investments so far this year : The impact of COVID-19 and the speed of its disruption in financial services is unprecedented .
I expect this to be worse than the Global Financial Crisis eleven years ago , as we have seen a global physical disruption to our lives almost simultaneously globally .
As a result @ @ @ @ @ @ @ Fintech investments in Q1 2020 severely decreased globally .
The CB Insights State of Fintech Report showed that “ Q1 ’ 20 was one of the worst quarters in two years for VC ( venture capital ) backed Fintech : The economic shocks stemming from the outbreak of the coronavirus have decreased investor appetite for Fintech .
“ Q1 ’ 20 VC-backed Fintech activity dropped to the worst Q1 since 2016 for Fintech deals and the worst Q1 for funding since 2017.
” No doubt that the investment figures for Q2 2020 will @ @ @ @ @ @ @ stopped investing in new deals and instead have focussed on helping their existing portfolio companies survive the expected depression .
There will be a decline in Fintech valuations across all stages .
Exit strategies will change .
Investors will look to accept down rounds to agree new investments in portfolio companies or to consider how portfolio companies could be merged to save costs and strengthen the business long-term .
We are moving into an environment where cash is king and the investors who can deploy it over the near future will be able @ @ @ @ @ @ @ should remind ourselves that some of the best tech companies such as Dropbox ( 2007 ) , WhatsApp ( 2009 ) , UBER ( 2009 ) , Square ( 2009 ) and Instagram ( 2010 ) have been founded during the last financial crisis and I have no doubt that we will see many future “ unicorns ” ( companies which will be valued at $ 1 billion or more ) be founded over the next one to three years .
What is innovation and why is it so important ?
We defined @ @ @ @ @ @ @ and business challenges in novel ways to increase the value delivered to both.
” When we talk about addressing customer needs , we are not just talking about functionality .
We are talking about emotional and social needs , such as feeling confident a new solution will work , keeping up with peers or feeling valued as a customer .
Financial service organisations can enhance the effectiveness of innovation using the following steps : • Create a standard framework for innovation across their organisation .
• Consider collaboration models to encourage closer partnerships @ @ @ @ @ @ @ constantly question what you need to prove to justify continuing to invest .
In summary , the financial services sector requires innovation to survive .
As lots of innovation is provided by Fintech companies to large financial institutions , the destiny of both is inter-connected .
The financial services sector can not modernise quickly enough without the Fintech ’ s sector technology and business model advantage .
Therefore , investors in Fintech have got the key privilege to further fund these B2B Fintech companies , which will help financial institutions to remain competitive @ @ @ @ @ @ @ , which will ultimately compete against existing financial players .
This article originally appeared in Business and Industry ’ s 2020 Fintech campaign .
Susanne Chishti , CEO AT FINTECH Circle , Fintech Investor & Bestselling Co-Editor of The Fintech Book Series Published by Wiley Twitter/Instagram : @ SusanneChishti

Sponsored Ad Feature is produced by an advertiser with the specific intent to promote a product and is not produced by the City A.M. team.
Why Fintech investing will become more attractive post COVID-19
With the global economy predicted to fall, valuations in Fintech companies will be hit hard, too. This will provide investors unique opportunities to invest into those Fintech firms at attractive valuations, which will shape the future of financial services.
Fintech investments so far this year:
The impact of COVID-19 and the speed of its disruption in financial services is unprecedented.
I expect this to be worse than the Global Financial Crisis eleven years ago, as we have seen a global physical disruption to our lives almost simultaneously globally.
As a result, it is not a surprise that Fintech investments in Q1 2020 severely decreased globally.
The CB Insights State of Fintech Report showed that “Q1’20 was one of the worst quarters in two years for VC (venture capital) backed Fintech: The economic shocks stemming from the outbreak of the coronavirus have decreased investor appetite for Fintech.
“Q1’20 VC-backed Fintech activity dropped to the worst Q1 since 2016 for Fintech deals and the worst Q1 for funding since 2017.”
No doubt that the investment figures for Q2 2020 will be even worse.
How investing strategies have changed:
Most investors have stopped investing in new deals and instead have focussed on helping their existing portfolio companies survive the expected depression. There will be a decline in Fintech valuations across all stages.
Exit strategies will change. Investors will look to accept down rounds to agree new investments in portfolio companies or to consider how portfolio companies could be merged to save costs and strengthen the business long-term.
We are moving into an environment where cash is king and the investors who can deploy it over the near future will be able to find very attractive deals.
We should remind ourselves that some of the best tech companies such as Dropbox (2007), WhatsApp (2009), UBER (2009), Square (2009) and Instagram (2010) have been founded during the last financial crisis and I have no doubt that we will see many future “unicorns” (companies which will be valued at $1 billion or more) be founded over the next one to three years.
What is innovation and why is it so important?
We defined innovation as “addressing specific customer needs and business challenges in novel ways to increase the value delivered to both.”
When we talk about addressing customer needs, we are not just talking about functionality. We are talking about emotional and social needs, such as feeling confident a new solution will work, keeping up with peers or feeling valued as a customer.
Financial service organisations can enhance the effectiveness of innovation using the following steps:
• Create a standard framework for innovation across their organisation.
• Consider collaboration models to encourage closer partnerships with third parties.
• Experiment: constantly question what you need to prove to justify continuing to invest.
In summary, the financial services sector requires innovation to survive. As lots of innovation is provided by Fintech companies to large financial institutions, the destiny of both is inter-connected.
The financial services sector cannot modernise quickly enough without the Fintech’s sector technology and business model advantage.
Therefore, investors in Fintech have got the key privilege to further fund these B2B Fintech companies, which will help financial institutions to remain competitive long-term and invest in those B2C unicorns, which will ultimately compete against existing financial players.
This article originally appeared in Business and Industry’s 2020 Fintech campaign.
Susanne Chishti, CEO AT FINTECH Circle, Fintech Investor & Bestselling Co-Editor of The Fintech Book Series Published by Wiley
Twitter/Instagram: @SusanneChishti


cityam--2020-06-29--AI is here and compliance needs to respond

Automation and artificial intelligence ( AI ) are set to pose a unique challenge to the future workplace , including the compliance profession .
How should compliance respond to such innovation ?
Handwringing over technology and automation replacing human beings in the workplace has a long history and is far from being unique to our times .
When unveiling his automated assembly line , Henry Ford , instead of praise , was met with distain from workers fearful of losing their jobs .
Contemporary concerns on how AI and automation will affect financial services are no different .
New technology @ @ @ @ @ @ @ job losses .
Such reactions are understandable , if often unwarranted .
The challenge AI and automation represents is not one of making employees surplus to requirements , but in ensuring that staff are trained in using these technologies appropriately and efficiently .
A survey by IBM estimated that , in the next three years , 120 million workers worldwide will need to be reskilled due to the impact of AI .
Similarly , in a 2018 report , PwC claimed employees in financial services may be ‘ relatively vulnerable to automation in @ @ @ @ @ @ @ in part , to workers currently spending a large amount of time doing ‘ simple computational tasks ’ .
Other sectors have successfully adopted AI .
The UK Serious Fraud Office ( SFO ) has employed AI to automate document analysis , and , as part of its 2018 case against Rolls-Royce , used a ‘ robo-lawyer ’ to scan documents for legal professional privilege content , which was 2,000 times faster than human lawyers .
AI is already here , and spreading .
In September 2019 , HSBC announced a new transaction @ @ @ @ @ @ @ and automated contextual monitoring in its trade finance division .
The bank also rolled out a financial crime transaction monitoring tool to identify commercial opportunities .
The tool was designed to highlight ‘ red flags ’ of potentially unusual activity and ‘ green flags ’ for new business .
In fact , AI has long infiltrated the most commonplace areas of our lives , from Netflix recommendations to Gmail email filtering .
In these simple instances , little justification for AI ’ s decisions is needed .
But , as AI is employed @ @ @ @ @ @ @ , the rationale behind its decisions must be understood .
Financial services staff should , for instance , be able to justify a loan request rejection by AI to a customer .
The UK ’ s Financial Conduct Authority ( FCA ) recommend ‘ sufficient ’ explain-ability for AI ’ s outcomes as the target .
Compliance professionals will need to upskill The financial crisis of 2007–08 and the increased focus ( and enforcement ) from regulators on financial crime risk saw a bump in resources in compliance teams around the world .
@ @ @ @ @ @ @ will likely look to optimise resources ; this could include using new technology to automate manual processes .
Compliance professionals will need to adapt and upskill .
People will continue to be needed , but the types of jobs they perform will evolve .
As a necessity , then , compliance staff must remain in-step with developing tech .
In its 2018 report on automation , PwC outlined that employees without a higher-education are those most at risk to automation and AI , demonstrating the need for life-long learning from compliance professionals .
@ @ @ @ @ @ @ skillset highly sought after and one that , crucially , AI can not replicate .
Compliance professionals need to be open minded about the use of new technology and the potential for it to benefit both the control framework and the wider business .
The future compliance professional must be commercially savvy and collaborate with colleagues and even robots , to meet business goals .
This requires being open to innovation and adapting to change .
AI will not replace the compliance function but its impact at the manual level will be significant @ @ @ @ @ @ @ respond to this shift so that they are best equipped to use AI to benefit of the compliance function and their business .
This article originally appeared in Business and Industry ’ s 2020 Fintech Campaign .

Sponsored Ad Feature is produced by an advertiser with the specific intent to promote a product and is not produced by the City A.M. team.
AI is here and compliance needs to respond
Automation and artificial intelligence (AI) are set to pose a unique challenge to the future workplace, including the compliance profession. How should compliance respond to such innovation?
Handwringing over technology and automation replacing human beings in the workplace has a long history and is far from being unique to our times.
When unveiling his automated assembly line, Henry Ford, instead of praise, was met with distain from workers fearful of losing their jobs. Contemporary concerns on how AI and automation will affect financial services are no different.
Encouraging AI uptake requires staff training
New technology has always generated agitation and speculation on job losses. Such reactions are understandable, if often unwarranted.
The challenge AI and automation represents is not one of making employees surplus to requirements, but in ensuring that staff are trained in using these technologies appropriately and efficiently.
A survey by IBM estimated that, in the next three years, 120 million workers worldwide will need to be reskilled due to the impact of AI.
Similarly, in a 2018 report, PwC claimed employees in financial services may be ‘relatively vulnerable to automation in the shorter term’, due, in part, to workers currently spending a large amount of time doing ‘simple computational tasks’.
Other sectors have successfully adopted AI. The UK Serious Fraud Office (SFO) has employed AI to automate document analysis, and, as part of its 2018 case against Rolls-Royce, used a ‘robo-lawyer’ to scan documents for legal professional privilege content, which was 2,000 times faster than human lawyers.
AI within financial services
AI is already here, and spreading. In September 2019, HSBC announced a new transaction monitoring tool, which used network intelligence and automated contextual monitoring in its trade finance division. The bank also rolled out a financial crime transaction monitoring tool to identify commercial opportunities. The tool was designed to highlight ‘red flags’ of potentially unusual activity and ‘green flags’ for new business.
In fact, AI has long infiltrated the most commonplace areas of our lives, from Netflix recommendations to Gmail email filtering. In these simple instances, little justification for AI’s decisions is needed.
But, as AI is employed in more complex processes in financial services, the rationale behind its decisions must be understood.
Financial services staff should, for instance, be able to justify a loan request rejection by AI to a customer. The UK’s Financial Conduct Authority (FCA) recommend ‘sufficient’ explain-ability for AI’s outcomes as the target.
Compliance professionals will need to upskill
The financial crisis of 2007–08 and the increased focus (and enforcement) from regulators on financial crime risk saw a bump in resources in compliance teams around the world.
Given the impact of COVID-19, firms will likely look to optimise resources; this could include using new technology to automate manual processes.
Compliance professionals will need to adapt and upskill. People will continue to be needed, but the types of jobs they perform will evolve. As a necessity, then, compliance staff must remain in-step with developing tech.
In its 2018 report on automation, PwC outlined that employees without a higher-education are those most at risk to automation and AI, demonstrating the need for life-long learning from compliance professionals.
These should include soft skills – a skillset highly sought after and one that, crucially, AI cannot replicate.
Compliance professionals need to be open minded about the use of new technology and the potential for it to benefit both the control framework and the wider business.
The future compliance professional must be commercially savvy and collaborate with colleagues and even robots, to meet business goals. This requires being open to innovation and adapting to change.
AI will not replace the compliance function but its impact at the manual level will be significant. It’s important compliance professionals respond to this shift so that they are best equipped to use AI to benefit of the compliance function and their business.
This article originally appeared in Business and Industry’s 2020 Fintech Campaign.
Jake Plenderleith, Editorial Manager, ICA


cityam--2020-06-29--What makes London a tech hub?

What makes London a tech hub?

Why the key to London ’ s future success is in its past – and what the UK must capitalise on to top the US as the world ’ s leading tech hub .
2019 was a bumper year for the UK tech sector .
London overtook Beijing to become the third biggest tech hub globally and UK tech investment topped ten billion GBP for the first time .
Domestically , the UK tech sector grew six times faster than any other industry .
Meanwhile , tech investment in the US and China fell 20 % and 65 % respectively @ @ @ @ @ @ @ ahead of European counterparts .
How did London do it ?
The emergence of London as a technology and global financial services hub is no coincidence .
Over the past decade , a virtuous cycleemerged , whereby a surge of venture investing in London has attracted international tech talent , creating the innovation that encouraged further investment .
And so , the cycle continued .
What ’ s more , from an international perspective , you can ’ t go wrong in a city where English is the main language , has a @ @ @ @ @ @ @ the world , boasts six international airports , 40 universities , maintains a solid legal system , and is the co-working capital of the world .
Remember your roots – the UK ’ s conservative approach has balanced an MVP approach In tech , you are likely to have many failures before you win .
The post-2008 sink or swim world forced the UK away from a conservative business practice and closer to the US in terms of ‘ failing fast ’ to reach success .
But , at the same time , @ @ @ @ @ @ @ served the UK well when using tech in the real world and upholding a greater degree of diligence in assessing the actual value of tech firms , both economically and socially .
These two factors are critical to the UK ’ s future success and position as world leader in the responsible and ethical development of technology .
Making it happen – and testing thoroughly before roll-out When it comes to applied innovation , Finetch is a great example of how UK regulators were quick to act , providing the regulatory and legal @ @ @ @ @ @ @ Initiatives like the Financial Conduct Authority ’ s regulatory sandbox are a case-in-point .
The sandbox allows Finetch firms to test their innovations in a protected market environment , providing a dry run that offers Finetchs vital market and regulatory credibility to make innovation happen .
Time of great change can bring about significant opportunities for innovation .
Unicorns such as Uber and Slack were born in the 2008 financial crisis .
Others will emerge in the coming months and years .
Whatever happens because of COVID-19 , the UK tech sector was @ @ @ @ @ @ @ decade .
Now , the UK must nurture the virtuous cycle of investment , talent and innovation , and capitalise on what makes the UK if it is to consolidate and strengthen its position as a global tech hub .
This article originally appeared in Business and Industry ’ s 2020 Fintech campaign .

Sponsored Ad Feature is produced by an advertiser with the specific intent to promote a product and is not produced by the City A.M. team.
What makes London a tech hub?
Why the key to London’s future success is in its past – and what the UK must capitalise on to top the US as the world’s leading tech hub.
2019 was a bumper year for the UK tech sector. London overtook Beijing to become the third biggest tech hub globally and UK tech investment topped ten billion GBP for the first time.
Domestically, the UK tech sector grew six times faster than any other industry. Meanwhile, tech investment in the US and China fell 20% and 65% respectively, and the UK continued to pull ahead of European counterparts.
How did London do it?
The emergence of London as a technology and global financial services hub is no coincidence.
Over the past decade, a virtuous cycleemerged, whereby a surge of venture investing in London has attracted international tech talent, creating the innovation that encouraged further investment. And so, the cycle continued.
What’s more, from an international perspective, you can’t go wrong in a city where English is the main language, has a time zone favourable to every part of the world, boasts six international airports, 40 universities, maintains a solid legal system, and is the co-working capital of the world.
Remember your roots – the UK’s conservative approach has balanced an MVP approach
In tech, you are likely to have many failures before you win. The post-2008 sink or swim world forced the UK away from a conservative business practice and closer to the US in terms of ‘failing fast’ to reach success.
But, at the same time, that dose of conservatism stuck, and served the UK well when using tech in the real world and upholding a greater degree of diligence in assessing the actual value of tech firms, both economically and socially.
These two factors are critical to the UK’s future success and position as world leader in the responsible and ethical development of technology.
Making it happen – and testing thoroughly before roll-out
When it comes to applied innovation, Finetch is a great example of how UK regulators were quick to act, providing the regulatory and legal framework to enable innovation to flourish.
Initiatives like the Financial Conduct Authority’s regulatory sandbox are a case-in-point. The sandbox allows Finetch firms to test their innovations in a protected market environment, providing a dry run that offers Finetchs vital market and regulatory credibility to make innovation happen.
Crises can bring about opportunity
Time of great change can bring about significant opportunities for innovation. Unicorns such as Uber and Slack were born in the 2008 financial crisis.
Others will emerge in the coming months and years. Whatever happens because of COVID-19, the UK tech sector was in excellent shape going into the new decade.
Now, the UK must nurture the virtuous cycle of investment, talent and innovation, and capitalise on what makes the UK if it is to consolidate and strengthen its position as a global tech hub.
This article originally appeared in Business and Industry’s 2020 Fintech campaign.
Elliot Wellsteed-Crook Head of Partnerships and pr, London Tech Week


cityam--2020-06-29--Can Fintech and big data transform a post COVID-19 landscape?

COVID-19 has transformed the world in a short space of time , possibly forever .
With this change brings opportunity , and Fintech has the potential to be part of a brighter future .
The SARS-CoV-2 virus epidemic has generated widespread strife and conflict in economies across the globe .
Virtually overnight , consumers shifted their activities online .
There is an evolution underway in the Fintech industry , with the potential to transform financial services forever .
Machines with infinite cloud-based memories together with Artificial Intelligence ( AI ) capabilities have entered a brave new world .
Fund managers @ @ @ @ @ @ @ with this new technology .
Is COVID-19 a perfect storm , heralding the dawn of a new tech era in wealth management , or another disaster-in-waiting ?
Evidence shows that few investment professionals have been exploiting Fintech for competitive advantage .
As with the game-changing industrial revolution of the 1760s and the coming of the steam engine : humans were not replaced .
In this fourth industrial revolution , our expected use of AI in Fintech will not replace humans either .
Big data is not knowledge , but AI can help to @ @ @ @ @ @ @ amounts of data and information that is buried in time .
AI algorithms and data management provide this information in an ordered format for us to make intelligent , efficient and timely decisions .
Wealth managers will be able to achieve profitable investments by creating and managing even more smarter investment portfolios .
Artificial Intelligence ( AI ) , Blockchain ( B ) , Cloud Computing ( C ) and Data ( D ) , ABCD form the building blocks of an evolving financial ecosystem .
B & C form the backbone of @ @ @ @ @ @ @ the A & D elements that spark our imaginations to create smart investment portfolios .
The challenge in education is to understand and develop novel applications of AI .
Experts use predictive analytics and complex algorithms to extract valuable financial insights from a variety of big data sources .
This data , sized in terms of petabytes and exabytes , exists in a variety of forms , namely : alternative , unstructured and structured .
It is gathered from multiple devices ( voice , text , image ) and processed systematically to be @ @ @ @ @ @ @ offers great potential , only 10 % of fund managers are adopters .
The allure of exceptional returns from investments is offset by the additional cost , complexity of data management and expertise of applying Fintech .
Data and financial analysts are in high demand .
Those who develop effective machine learning algorithms , to discern patterns and signals from the big data reap the benefits .
Hedge funds have used ML since the early 2010s to examine securities traded daily .
To ensure that trades are cost effective , the models can @ @ @ @ @ @ @ the best brokers and exchanges .
In asset allocation applications , predictive analytics tools are used to gauge opportunities from the buy and sell signals across markets and securities .
They are effectively used in Debt markets to process and generate credit alerts on issuers as well as signals for stock picking .
Clearly , COVID-19 is a perfect storm bringing in a new tech era in financial services .
Click here to learn more from the University of Westminster .
This article originally appeared in Business and Industry ’ s 2020 Fintech @ @

Sponsored Ad Feature is produced by an advertiser with the specific intent to promote a product and is not produced by the City A.M. team.
Can Fintech and big data transform a post COVID-19 landscape?
COVID-19 has transformed the world in a short space of time, possibly forever. With this change brings opportunity, and Fintech has the potential to be part of a brighter future.
The SARS-CoV-2 virus epidemic has generated widespread strife and conflict in economies across the globe. Virtually overnight, consumers shifted their activities online. There is an evolution underway in the Fintech industry, with the potential to transform financial services forever. Machines with infinite cloud-based memories together with Artificial Intelligence (AI) capabilities have entered a brave new world. Fund managers face an enticing prospect to generate money with this new technology. Is COVID-19 a perfect storm, heralding the dawn of a new tech era in wealth management, or another disaster-in-waiting?
A time of great change
Evidence shows that few investment professionals have been exploiting Fintech for competitive advantage. As with the game-changing industrial revolution of the 1760s and the coming of the steam engine: humans were not replaced. In this fourth industrial revolution, our expected use of AI in Fintech will not replace humans either. Big data is not knowledge, but AI can help to automate routine processes and efficiently retrieve vast amounts of data and information that is buried in time. AI algorithms and data management provide this information in an ordered format for us to make intelligent, efficient and timely decisions. Wealth managers will be able to achieve profitable investments by creating and managing even more smarter investment portfolios.
The building blocks of success
Artificial Intelligence (AI), Blockchain (B), Cloud Computing (C) and Data (D), ABCD form the building blocks of an evolving financial ecosystem. B & C form the backbone of this technology infrastructure. More interesting are the A & D elements that spark our imaginations to create smart investment portfolios.
The challenge in education is to understand and develop novel applications of AI. Experts use predictive analytics and complex algorithms to extract valuable financial insights from a variety of big data sources. This data, sized in terms of petabytes and exabytes, exists in a variety of forms, namely: alternative, unstructured and structured. It is gathered from multiple devices (voice, text, image) and processed systematically to be available as business insights.
Invest, develop and enjoy the rewards
Although Fintech offers great potential, only 10% of fund managers are adopters. The allure of exceptional returns from investments is offset by the additional cost, complexity of data management and expertise of applying Fintech. Data and financial analysts are in high demand. Those who develop effective machine learning algorithms, to discern patterns and signals from the big data reap the benefits.
Hedge funds have used ML since the early 2010s to examine securities traded daily. To ensure that trades are cost effective, the models can find cheap sources for executing trades via the best brokers and exchanges. In asset allocation applications, predictive analytics tools are used to gauge opportunities from the buy and sell signals across markets and securities. They are effectively used in Debt markets to process and generate credit alerts on issuers as well as signals for stock picking.
Clearly, COVID-19 is a perfect storm bringing in a new tech era in financial services.
Click here to learn more from the University of Westminster.
This article originally appeared in Business and Industry’s 2020 Fintech Campaign.
Ann Thapar, Course Leader, University of Westminster


cityam--2020-07-01--UK coronavirus death toll rises by 176 ahead of lockdown lifting in England

A further 176 people have died from coronavirus in the UK , bringing the total death toll to 43,906 .
The Department of Health said 226,398 had been carried out in the past day .
As of this morning , 9,662,051 tests have been carried out but the reporting on the number of people has been paused to “ ensure consistent reporting ” .
Yesterday , data from the Office for National Statistics ( ONS ) , which includes suspected cases , showed the UK ’ s coronavirus death toll nearing 55,000 .
The total number of deaths – 54,872 @ @ @ @ @ @ @ world ’ s worst affected geographies .
In England and Wales , there have been 49,371 recorded deaths from the start of the pandemic to 19 June .
It comes as England plans to lift lockdown restrictions on pubs , restaurants , cinemas , galleries and hairdressers on Saturday .
Labour leader Sir Keir Starmer questioned Boris Johnson on the level of coronavirus testing data at Prime Minister ’ s Questions .
He raised concerns from Leicester ’ s local authority that it had only known about 80 cases in a two-week period @ @ @ @ @ @ @ cases .
On Monday the health secretary Matt Hancock announced the first local lockdown in Leicester after the area was hit with an outbreak of cases .
It means plans for reopening will not go ahead , and all non-essential shops have closed .
Officials confirmed Leicester had accounted for 10 per cent of all new coronavirus cases in the last week , with nearly 1,000 cases confirmed in the last fortnight .
The UK government is also reportedly considering more local lockdowns in areas where coronavirus cases are rising .
According to @ @ @ @ @ @ @ and the Department of Health are “ working collaboratively ” to focus on at-risk areas .
Figures obtained by the broadcaster show Leicester has the highest rate of cases in the week between 15 and 21 June , followed by Bradford and Barnsley .

UK coronavirus death toll rises by 176 ahead of lockdown lifting in England
A further 176 people have died from coronavirus in the UK, bringing the total death toll to 43,906.
The Department of Health said 226,398 had been carried out in the past day. As of this morning, 9,662,051 tests have been carried out but the reporting on the number of people has been paused to “ensure consistent reporting”.
Yesterday, data from the Office for National Statistics (ONS), which includes suspected cases, showed the UK’s coronavirus death toll nearing 55,000.
The total number of deaths – 54,872 – makes the UK one of the world’s worst affected geographies. In England and Wales, there have been 49,371 recorded deaths from the start of the pandemic to 19 June.
It comes as England plans to lift lockdown restrictions on pubs, restaurants, cinemas, galleries and hairdressers on Saturday.
Labour leader Sir Keir Starmer questioned Boris Johnson on the level of coronavirus testing data at Prime Minister’s Questions. He raised concerns from Leicester’s local authority that it had only known about 80 cases in a two-week period when the real figure had been 944 cases.
On Monday the health secretary Matt Hancock announced the first local lockdown in Leicester after the area was hit with an outbreak of cases. It means plans for reopening will not go ahead, and all non-essential shops have closed.
Officials confirmed Leicester had accounted for 10 per cent of all new coronavirus cases in the last week, with nearly 1,000 cases confirmed in the last fortnight.
The UK government is also reportedly considering more local lockdowns in areas where coronavirus cases are rising.
According to Sky News reports, Public Health England and the Department of Health are “working collaboratively” to focus on at-risk areas. Figures obtained by the broadcaster show Leicester has the highest rate of cases in the week between 15 and 21 June, followed by Bradford and Barnsley.


cityam--2020-07-01--FTSE 100 and US stocks subdued amid fears of surging virus cases

The FTSE 100 extended its fall today as surging coronavirus cases in the US helped take the shine off some better-than-expected economic data .
The blue-chip index swung between the red and the green in morning trading , but had climbed 0.23 per cent to 6,184 points by 3pm .
The FTSE ’ s European peers slipped into the red in afternoon trading , while Wall Street opened the session in positive territory .
Wall Street opened higher despite a warning from US infectious diseases chief Dr Antony Faucci that the country could see coronavirus cases soar to 100,000 a @ @ @ @ @ @ @ that some states may not be able to contain current outbreaks , with the US recording its biggest single-day spike in cases since the pandemic began with 47,000 new infections yesterday .
Nevertheless all three major US indices made gains in early trading today , as rising hopes of a Covid-19 vaccine overshadowed concerns of another round of possible lockdowns .
Pfizer and German biotech firm Biontech said a coronavirus vaccine they had developed had shown potential and was found to be well tolerated in early-stage human trials .
The benchmark S & @ @ @ @ @ @ @ the first hour of trading , while the Dow and Nasdaq added over 0.43 per cent apiece .
The FTSE 250 climbed 0.85 per cent in morning trading as investors clung to hopes of more stimulus and a pickup in economic activity in the second half of the year .
Upper Crust owner SSP was among the midcap index ’ s biggest fallers , dropping 1.32 per cent after saying it could slash 5,000 jobs as the coronavirus pandemic knocks the UK ’ s travel sector .
Analysts said the FTSE 100 and @ @ @ @ @ @ @ of coronavirus infections derailing the world ’ s economic recovery .
“ For the same reason that markets didn ’ t take much notice of backward-looking apocalyptic economic data in the spring , more positive data seen recently is also being put to one side , ” AJ Bell investment director Russ Mould said .
Fresh tensions in Hong Kong , which has passed a new law handing China unprecedented power over the city , are also a cause for concern .
Today police have already made dozens of arrests under the national @ @ @ @ @ @ @ today slammed HSBC over its support for the new law , warning the lender and its peers not to “ sacrifice ” the people of Hong Kong “ on the altar of bankers ’ bonuses ” Mould said a warning the US faces hitting 100,000 daily coronavirus cases has led to “ considerable nervousness ” on the FTSE 100 .
“ Notably traditional safe haven gold continues to shine with futures prices late yesterday having reached their highest levels since 2011 , ” he added .
Gold stood just above the $ 1,800 @ @ @ @ @ @ @ a senior market analyst at online trading platform IG , added that improved manufacturing data for June has failed to lift the FTSE 100 .
He said fears over the rising number of US coronavirus cases has dampened optimism among traders .
The key dilemma stock markets face is an “ ongoing tug-of-war between those optimistic of the benefits that come with lockdown easing , playing off against fears of further restrictive measures if cases pick up in response ” , he said .
“ The US remains the key hotspot for investors @ @ @ @ @ @ @ first of many states that will require another a second bout of restrictions if the virus is to be brought under control .
But he added that the EU ’ s more effective battle against coronavirus is likely to bolster European stocks in the coming weeks .
“ We are now likely to see European markets outperform as a united front on financial support bolsters the impressive virus response seen over recent months.
” European stocks also fell after a technical glitch affected several of the continent ’ s exchanges .
France ’ @ @ @ @ @ @ @ but was virtually flat by 3pm UK time .
Trading on Germany ’ s DAX was halted for almost three hours due to the technical issue , and the index was trading flat by mid-afternoon .
Read more : Trading in Germany ’ s DAX and other European exchanges resumes after technical glitch Asian markets struggled to make headway on Wednesday .
MSCI ’ s broadest index of Asia-Pacific shares outside Japan inched 0.2 per cent higher , with the Shanghai Composite gaining 1.34 per cent .
In Japan the Nikkei shed 0.75 @ @ @ @ @ @ @ in Hong Kong to mark the anniversary of the former British colony ’ s return to China in 1997 .
Sentiment had been boosted by signs that China ’ s factories are slowly gathering steam as the world ’ s second biggest economy begins to recover , with the Caixin/Markit manufacturing PMI rising to 51.2 , compared with expectations for 50.5 .
Read more : UK house prices fall for first time since 2012 amid coronavirus However the positive Chinese data was accompanied by a surge in US virus cases and fears of @ @ @ @ @ @ @ s crackdown in Hong Kong .
Police in the city said they arrested a man holding a pro-independence flag late on Tuesday , in the first apparent use of new security laws that were imposed by China .

FTSE 100 closes lower as new virus cases unnerve markets
Twenty per cent of FTSE 100 CEOs left their roles during the pandemic.
The FTSE 100 closed in the red today as coronavirus cases in the US helped take the shine off some better-than-expected economic data.
The blue-chip index swung between the red and the green in morning trading, but finished down 0.2 per cent at 6,1568 points.
Read more: FCA extends credit card payment freeze until October
The FTSE 100’s European peers also fell in afternoon trading and were set to close lower. Wall Street rose in its morning session, however.
US stocks make modest gains on vaccine hopes
US stocks rose despite a warning from US infectious diseases chief Dr Antony Fauci that the country could see coronavirus cases soar to 100,000 a day.
The US yesterday recorded its biggest single-day spike in cases since the pandemic began with 47,000 new infections.
Nevertheless all three major US indices made gains in early trading today, as rising hopes of a Covid-19 vaccine overshadowed concerns of another round of possible lockdowns.
Pfizer and German biotech firm Biontech said a coronavirus vaccine they had developed had shown potential and was found to be well tolerated in early-stage human trials.
The benchmark S&P 500 climbed 0.56 per cent in the first hour of trading, while the Dow and Nasdaq added over 0.43 per cent apiece.
Virus fears and Hong Kong tensions hold back UK equities
In the UK, mid-cap companies performed better than blue-chip firms. The FTSE 250 closed 0.4 per cent higher as investors clung to hopes of more stimulus and a pickup in economic activity in the second half of the year.
Yet analysts said the FTSE 100 and European stocks are fearing a second wave of coronavirus infections derailing the world’s economic recovery.
“For the same reason that markets didn’t take much notice of backward-looking apocalyptic economic data in the spring, more positive data seen recently is also being put to one side,” AJ Bell investment director Russ Mould said.
Fresh tensions in Hong Kong, which has passed a new law handing China unprecedented power over the city, are also a cause for concern. Today police have already made dozens of arrests under the national security law.
Mould said a warning the US faces hitting 100,000 daily coronavirus cases has led to “considerable nervousness” on the FTSE 100.
“Notably traditional safe haven gold continues to shine with futures prices late yesterday having reached their highest levels since 2011,” he added. Gold stood at around $1,750 per ounce.
Improved PMI fails to guard FTSE stocks
Joshua Mahony, a senior market analyst at online trading platform IG, added that improved manufacturing data for June has failed to lift the FTSE 100.
He said fears over the rising number of US coronavirus cases has dampened optimism among traders.
The key dilemma stock markets face is an “ongoing tug-of-war between those optimistic of the benefits that come with lockdown easing, playing off against fears of further restrictive measures if cases pick up in response”, he said.
Read more: UK house prices fall for first time since 2012 amid coronavirus
“The US remains the key hotspot for investors, with Florida and Texas potentially the first of many states that will require another a second bout of restrictions if the virus is to be brought under control.
But he added that the EU’s more effective battle against coronavirus is likely to bolster European stocks in the coming weeks. “We are now likely to see European markets outperform as a united front on financial support bolsters the impressive virus response seen over recent months.”
European stocks dip after glitch
European stocks also fell after a technical glitch affected several of the continent’s exchanges.
Trading on Germany’s DAX was halted for almost three hours due to the technical issue. The index was down 0.4 per cent as it headed towards the close. France’s CAC 40 was down by 0.2 per cent.
Read more: Trading in Germany’s DAX and other European exchanges resumes after technical glitch
Asian markets struggled to make headway on Wednesday. MSCI’s broadest index of Asia-Pacific shares outside Japan inched 0.2 per cent higher, with the Shanghai Composite gaining 1.34 per cent.
Sentiment had been boosted by signs that China’s factories are slowly gathering steam as the world’s second biggest economy begins to recover, with the Caixin/Markit manufacturing PMI rising to 51.2, compared with expectations for 50.5.


cityam--2020-07-01--US manufacturing sector rebounds as states lift lockdowns

The US manufacturing sector rebounded sharply in June , survey data showed today , fuelling hopes that the world ’ s biggest economy is on its way back to normality as coronavirus restrictions are lifted .
The manufacturing purchasing managers ’ index from the Institute for Supply Management ( ISM ) jumped to 52.6 in June from 43.1 in May .
A score of above 50 indicates a return to growth in the sector .
Read more : Fears over looming coronavirus job losses in UK manufacturing sector However , many economists have said PMI readings are currently highly uncertain @ @ @ @ @ @ @ grew in May after April ’ s crash .
“ June signifies manufacturing entering an expected expansion cycle after the disruption caused by the coronavirus pandemic , ” said ISM chair Timothy Fiore .
“ Comments from the panel were positive… reversing the cautious trend which began in March.
” New orders picked up dramatically , with the gauge hitting 56.4 percent in June , an increase of 24.6 percentage points from the May reading of 31.8 .
The employment gauge also rose markedly , climbing to 42.1 from May ’ s score @ @ @ @ @ @ @ ’ s economic recovery could yet be derailed by the coronavirus crisis .
The number of Covid cases has risen sharply over the last two weeks .
The surge in new cases has prompted Texas and Florida – two of the worst-hit states – to pause many of their plans to reopen .
Stock markets have been jittery , with investors worrying that another round of lockdowns could tank the economy .
A separate PMI gauge produced by data firm IHS Markit rebounded at its fastest pace on record in June , the @ @ @ @ @ @ @ to 49.8 in June from 39.8 in May .
On the IHS Markit gauge , a score below 50 indicates the sector is still contracting .
However , economists have warned that economic data is highly uncertain at the moment and that PMIs should not be taken too literally .
Chris Williamson , chief business economist at IHS Markit , said : “ US manufacturers have reported a marked turnaround in business conditions through the second quarter.
” He said that “ collapsing production and demand in April at the height of the @ @ @ @ @ @ @ to stabilisation by June ” .
Read more : Eurozone manufacturing downturn eased in June as lockdowns loosened Yet he warned that the recovery would come under threat unless the US got on top of its coronavirus outbreak .
Williamson said : “ Concerns have risen that momentum could be lost if rising numbers of virus infections lead to renewed restrictions and cause demand to weaken again .
”

US manufacturing sector rebounds as states lift lockdowns
The US manufacturing sector rebounded sharply in June, survey data showed today, fuelling hopes that the world’s biggest economy is on its way back to normality as coronavirus restrictions are lifted.
The manufacturing purchasing managers’ index from the Institute for Supply Management (ISM) jumped to 52.6 in June from 43.1 in May. A score of above 50 indicates a return to growth in the sector.
However, many economists have said PMI readings are currently highly uncertain and that it is possible the sector grew in May after April’s crash.
“June signifies manufacturing entering an expected expansion cycle after the disruption caused by the coronavirus pandemic,” said ISM chair Timothy Fiore.
“Comments from the panel were positive… reversing the cautious trend which began in March.”
New orders picked up dramatically, with the gauge hitting 56.4 percent in June, an increase of 24.6 percentage points from the May reading of 31.8. The employment gauge also rose markedly, climbing to 42.1 from May’s score of 32.1.
New coronavirus cases could damage recovery
However, the US’s economic recovery could yet be derailed by the coronavirus crisis. The number of Covid cases has risen sharply over the last two weeks.
The surge in new cases has prompted Texas and Florida – two of the worst-hit states – to pause many of their plans to reopen. Stock markets have been jittery, with investors worrying that another round of lockdowns could tank the economy.
A separate PMI gauge produced by data firm IHS Markit rebounded at its fastest pace on record in June, the company said today. It shot up to 49.8 in June from 39.8 in May.
On the IHS Markit gauge, a score below 50 indicates the sector is still contracting. However, economists have warned that economic data is highly uncertain at the moment and that PMIs should not be taken too literally.
Chris Williamson, chief business economist at IHS Markit, said: “US manufacturers have reported a marked turnaround in business conditions through the second quarter.”
He said that “collapsing production and demand in April at the height of the Covid-19 lockdown” had turned “rapidly to stabilisation by June”.
Yet he warned that the recovery would come under threat unless the US got on top of its coronavirus outbreak.
Williamson said: “Concerns have risen that momentum could be lost if rising numbers of virus infections lead to renewed restrictions and cause demand to weaken again.”


cityam--2020-07-01--OECD insists US remains part of global talks on digital tax

The OECD has said the US is still taking part in discussions around a global digital tax solution , despite statements to the contrary from Washington .
US treasury secretary Steven Mnuchin said earlier this month the US would leave the talks if several European countries did not halt their plans for independent digital taxes , including the UK .
US trade representative Robert Lighthizer later added that the US was “ no longer involved in the negotiations ” .
“ To be clear , contrary to some earlier media reports , the US has not pulled out of the @ @ @ @ @ @ @ Gurria told delegates meeting for the latest round of talks among nearly 140 countries .
Read more : France and UK offer concessions on digital tax after US tariff threat Letters have gone back and forth between the US and the finance ministers of the UK , France , Italy and Spain , all of which have varying plans to implement independent levies on technology companies .
In the UK , a levy will come into effect next year that takes a percentage of sales from companies operating search engines , social media @ @ @ @ @ @ @ £500m .
It is intended to be temporary until a global solution is found .
The four countries are said to have offered to take a “ phased approach ” to their individual taxes , in a bid to appease Washington into coming back to the table .
Gurria continued : “ Indeed , the presence of the US delegation here today , notwithstanding the US request for a delay on pillar one , confirms their ongoing engagement in this important work.
” Pillar one refers to plans to update international tax rules @ @ @ @ @ @ @ ability of big companies such as Facebook and Alphabet ’ s Google to legally book profits in low-tax countries regardless of where their end-clients are .
Read more : UK says it still wants deal on global digital tax after US quits talks The US has argued that such proposals unfairly target American companies .
A second pillar of negotiations , which are running simultaneously and have reached a more advanced stage , are ongoing to agree a global minimum level of corporate taxation .
“ Pillar two will ensure that a minimum @ @ @ @ @ @ @ no matter how much clever tax planning is undertaken by multinationals , ” Gurria said .
“ This is why we need to reach an international agreement , whether partly in October and then later in 2021 , or any other possible combination driven by the political agenda , ” he added .

OECD insists US remains part of global talks on digital tax
The OECD has said the US is still taking part in discussions around a global digital tax solution, despite statements to the contrary from Washington.
US treasury secretary Steven Mnuchin said earlier this month the US would leave the talks if several European countries did not halt their plans for independent digital taxes, including the UK.
US trade representative Robert Lighthizer later added that the US was “no longer involved in the negotiations”.
“To be clear, contrary to some earlier media reports, the US has not pulled out of the negotiations,” OECD general secretary Angel Gurria told delegates meeting for the latest round of talks among nearly 140 countries.
Letters have gone back and forth between the US and the finance ministers of the UK, France, Italy and Spain, all of which have varying plans to implement independent levies on technology companies.
In the UK, a levy will come into effect next year that takes a percentage of sales from companies operating search engines, social media websites and online marketplaces with revenues above £500m. It is intended to be temporary until a global solution is found.
The four countries are said to have offered to take a “phased approach” to their individual taxes, in a bid to appease Washington into coming back to the table.
Gurria continued: “Indeed, the presence of the US delegation here today, notwithstanding the US request for a delay on pillar one, confirms their ongoing engagement in this important work.”
Pillar one refers to plans to update international tax rules, which would aim to limit the ability of big companies such as Facebook and Alphabet’s Google to legally book profits in low-tax countries regardless of where their end-clients are.
The US has argued that such proposals unfairly target American companies.
A second pillar of negotiations, which are running simultaneously and have reached a more advanced stage, are ongoing to agree a global minimum level of corporate taxation.
“Pillar two will ensure that a minimum level of tax will be paid, no matter how much clever tax planning is undertaken by multinationals,” Gurria said.
“This is why we need to reach an international agreement, whether partly in October and then later in 2021, or any other possible combination driven by the political agenda,” he added.


cityam--2020-07-01--Don't sacrifice Hong Kong for bankers’ bonuses, Raab tells HSBC

Foreign secretary Dominic Raab today criticised HSBC and other British banks for supporting China ’ s controversial new security law @ @ @ @ @ the rights of its citizens should not be sacrificed for bankers ’ bonuses .
HSBC @ @ @ @ @ Chartered have come under fire from politicians in the UK and US after the banks @ @ @ @ @ security law for the financial hub , which was introduced this week .
“ On @ @ @ @ @ ’ ve been very clear in relation with HSBC and… all of the banks : @ @ @ @ @ and our responsibilities in this country to the people of Hong Kong should not be @ @ @ @ @ bankers ’ bonuses , ” Raab told parliament .
HSBC has been contacted for comment @

Don’t sacrifice Hong Kong for bankers’ bonuses, Raab tells HSBC
Foreign secretary Dominic Raab criticised HSBC and other British banks for backing the controversial new law
Foreign secretary Dominic Raab today criticised HSBC and other British banks for supporting China’s controversial new security law in Hong Kong, saying the rights of its citizens should not be sacrificed for bankers’ bonuses.
HSBC and fellow Asia-focused lender Standard Chartered have come under fire from politicians in the UK and US after the banks backed China’s new security law for the financial hub, which was introduced this week.
“On HSBC and banks, I’ve been very clear in relation with HSBC and… all of the banks: the rights and the freedoms and our responsibilities in this country to the people of Hong Kong should not be sacrificed on the altar of bankers’ bonuses,” Raab told parliament.
A spokesperson for HSBC declined to respond to Raab’s comments.
Before the Open newsletter: Start your day with the City View podcast and key market data
Earlier this month, the bank released a statement saying: “We respect and support laws and regulations that will enable Hong Kong to recover and rebuild the economy and, at the same time, maintain the principle of ‘one country two systems’.”
Beijing unveiled the details of the much-anticipated law late on Tuesday after weeks of uncertainty, pushing China’s freest city and one of the world’s largest financial hubs on to a more authoritarian path.
Police in Hong Kong arrested more than 300 protestors on Wednesday as demonstrators took to the streets in defiance of the sweeping new security legislation.
As thousands of protesters gathered for an annual rally marking the anniversary of the former British colony’s handover to China in 1997, riot police used pepper spray and fired pellets as they made arrests after crowds spilled into the streets chanting “resist till the end” and “Hong Kong independence”.
The UK today confirmed that it would offer visas to 2.9m Hong Kong residents with a route to citizenship following the introduction of the new legislation.
Hong Kong residents with British National Overseas status and their dependents will be able to access five-year work or study visas to the UK, with a chance to apply for settled status at the end of this period.


cityam--2020-07-01--Virgin Atlantic secures £200m from Virgin in bid for £1bn rescue deal

Virgin Atlantic has secured £200m in additional funding from parent company Virgin as the embattled carrier seeks a total of £1bn in the coming weeks in order to stay afloat .
The airline , which has seen its planes grounded for three months due to the coronavirus pandemic , has had its finances decimated by the virus and is set to cut a third of its workforce to survive the crisis .
Read more : Virgin Atlantic seeks up to £900m in rescue bid after coronavirus turbulence The FT first reported that Virgin would provide an initial £200m , with @ @ @ @ @ @ @ to be committed through deferrals and waivers .
The transatlantic flier , which was founded by Sir Richard Branson in 1984 , is 51 per cent owned by the Virgin Group and 49 per cent owned by US airline Delta .
Industry sources confirmed that the deal would be structured so that the airline ’ s ownership structure would not be changed .
The funding is not the first time Branson has reached into his pockets to protect the carrier , after last month selling $ 500m in Virgin Galactic shares to prop @ @ @ @ @ @ @ .
In addition , a group of private investors are due to stump up £250m more to prop up the carrier , which is due to return to flying in July .
Hedge funds Davidson Kempner Capital Management and Elliott , as well as Centrebridge Partners , are involved in talks , the FT reported .
Before the Open newsletter : Start your day with the City View podcast and key market data Up to £250m will be provided by credit card firms and lessors , who are currently witholding fees .
Virgin @ @ @ @ @ @ @ July for a potential funding agreement .
Over the weekend a spokesperson told City A.M. the airline was “ looking to wrap things up next week ” .
The new financing arrangements do not involve any input from the government , with which Virgin Atlantic has been in frequent negotiations throughout the coronavirus period .
Virgin Atlantic ’ s proposal for a £500m package of commercial loans was rejected by the Treasury in April after failing to impress the government .
The airline is also yet to follow its rivals in the sector @ @ @ @ @ @ @ s financing schemes to draw down extra funding .
Read more : Bain Capital strikes deal to buy Virgin Australia out of administration A Virgin Atlantic spokesperson said : “ Virgin Atlantic has been working on a comprehensive , solvent recapitalisation of the airline to ensure that we can continue to provide essential connectivity and competition to consumers and businesses in Britain and beyond .
“ We greatly appreciate the support of our shareholders , creditors and private investors and by working together , we will ensure that Virgin Atlantic can emerge from @ @ @ @ @ @ @ with a healthy balance sheet .
”

Virgin Atlantic secures £200m from Virgin in bid for £1bn rescue deal
Virgin Atlantic has secured £200m in additional funding from parent company Virgin as the embattled carrier seeks a total of £1bn in the coming weeks in order to stay afloat.
The airline, which has seen its planes grounded for three months due to the coronavirus pandemic, has had its finances decimated by the virus and is set to cut a third of its workforce to survive the crisis.
The FT first reported that Virgin would provide an initial £200m, with an additional £400m in shareholder support due to be committed through deferrals and waivers.
The transatlantic flier, which was founded by Sir Richard Branson in 1984, is 51 per cent owned by the Virgin Group and 49 per cent owned by US airline Delta.
Industry sources confirmed that the deal would be structured so that the airline’s ownership structure would not be changed.
The funding is not the first time Branson has reached into his pockets to protect the carrier, after last month selling $500m in Virgin Galactic shares to prop up various wings of the Virgin empire.
In addition, a group of private investors are due to stump up £250m more to prop up the carrier, which is due to return to flying in July.
Hedge funds Davidson Kempner Capital Management and Elliott, as well as Centrebridge Partners, are involved in talks, the FT reported.
Before the Open newsletter: Start your day with the City View podcast and key market data
Up to £250m will be provided by credit card firms and lessors, who are currently witholding fees.
Virgin has set an informal deadline of early July for a potential funding agreement. Over the weekend a spokesperson told City A.M. the airline was “looking to wrap things up next week”.
The new financing arrangements do not involve any input from the government, with which Virgin Atlantic has been in frequent negotiations throughout the coronavirus period.
Virgin Atlantic’s proposal for a £500m package of commercial loans was rejected by the Treasury in April after failing to impress the government.
The airline is also yet to follow its rivals in the sector by using the Bank of England’s financing schemes to draw down extra funding.
A Virgin Atlantic spokesperson said: “Virgin Atlantic has been working on a comprehensive, solvent recapitalisation of the airline to ensure that we can continue to provide essential connectivity and competition to consumers and businesses in Britain and beyond.
“We greatly appreciate the support of our shareholders, creditors and private investors and by working together, we will ensure that Virgin Atlantic can emerge from the crisis a sustainably profitable airline, with a healthy balance sheet.”


cityam--2020-07-01--Saatchi & Saatchi appoints new chief executive

London advertising agency Saatchi & Saatchi has appointed Sam Hawkey as its new chief executive , as the firm ’ s headquarters prepare to reopen after months of lockdown .
Hawkey has served as Saatchi & Saatchi ’ s chief operating officer since 2018 , after being promoted from managing director several years earlier .
Since joining the firm in 2012 , Hawkey ’ s clients have included BT , EE , Betway , Guinness and Visa .
Read more : Cobham chief to take top job at Babcock He started his career in website development and flash game design @ @ @ @ @ @ @ London where he spent three years working across News Group , Bacardi , and Aviva .
In his new role , Hawkey will report into his predecessor , Magnus Djaba , who has been chief executive of Saatchi & Saatchi London for eight years , Hawkey said : “ The thing I ’ ve loved about Saatchi & Saatchi is always being given the freedom to fundamentally challenge and change what has gone before .
Nothing is off limits .
“ The idea of being the person to take on that mantle and @ @ @ @ @ @ @ makes me immensely proud.
” The ad agency , which counts Sir Martin Sorrell and Robert Louis-Dreyfus as alumni , was founded in 1970 by siblings Charles and Maurice Saatchi .
The duo were ousted in 1995 and went on to form a separate advertising agency , M & C Saatchi .
Saatchi & Saatchi was acquired by French-based agency Publicis Group in 2000 , and went on to win high-profile clients including the Labour party .
Djaba said : “ In two months , this iconic agency celebrates its 50th birthday .
@ @ @ @ @ @ @ Saatchi & Saatchi and our ‘ nothing is impossible ’ mantra , and make sure we have the same breed of entrepreneurial audacious leadership now as we did 50 years ago .
Read more : Adverts in adversity : Johnny Hornby on the case for advertising through Covid-19 “ When I became chief executive eight years ago , [ Hawkey ] was my first hire .
There are two things that have remained constants during my time as CEO — one is the agency mantra that ‘ nothing is impossible ’ and the @ @ @ @ @ @ @ ] was born to lead this agency.
” Hawkey takes up his role today as the agency opens the doors of its Chancery Lane headquarters for the first time since the start of lockdown .
The office will re-open for a limited number of employees , with a booking system and social distancing measures in place .
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Saatchi & Saatchi appoints new chief executive
Photo: Matt Crossick
London advertising agency Saatchi & Saatchi has appointed Sam Hawkey as its new chief executive, as the firm’s headquarters prepare to reopen after months of lockdown.
Hawkey has served as Saatchi & Saatchi’s chief operating officer since 2018, after being promoted from managing director several years earlier. Since joining the firm in 2012, Hawkey’s clients have included BT, EE, Betway, Guinness and Visa.
He started his career in website development and flash game design before moving over to digital specialist Glue London where he spent three years working across News Group, Bacardi, and Aviva.
In his new role, Hawkey will report into his predecessor, Magnus Djaba, who has been chief executive of Saatchi & Saatchi London for eight years,
Hawkey said: “The thing I’ve loved about Saatchi & Saatchi is always being given the freedom to fundamentally challenge and change what has gone before. Nothing is off limits.
“The idea of being the person to take on that mantle and become its guardian in our 50th year makes me immensely proud.”
The ad agency, which counts Sir Martin Sorrell and Robert Louis-Dreyfus as alumni, was founded in 1970 by siblings Charles and Maurice Saatchi. The duo were ousted in 1995 and went on to form a separate advertising agency, M&C Saatchi.
Saatchi & Saatchi was acquired by French-based agency Publicis Group in 2000, and went on to win high-profile clients including the Labour party.
Djaba said: “In two months, this iconic agency celebrates its 50th birthday. We wanted to continue the legacy of Saatchi & Saatchi and our ‘nothing is impossible’ mantra, and make sure we have the same breed of entrepreneurial audacious leadership now as we did 50 years ago.
“When I became chief executive eight years ago, [Hawkey] was my first hire. There are two things that have remained constants during my time as CEO — one is the agency mantra that ‘nothing is impossible’ and the other is my belief that [Hawkey] was born to lead this agency.”
Hawkey takes up his role today as the agency opens the doors of its Chancery Lane headquarters for the first time since the start of lockdown. The office will re-open for a limited number of employees, with a booking system and social distancing measures in place.
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cityam--2020-07-01--Harrods slashes 700 jobs as pandemic weighs on high street

Luxury department chain Harrods has announced it is slashing 700 jobs , as the British high street continues to feel the weight of the coronavirus crisis .
In an email to staff , managing director Michael Ward said Harrods was slashing up to 14 per cent of its 4,800-strong workforce due to the “ ongoing impact ” of Covid-19 .
Read more : Footfall still 54 per cent down on 2019 levels after shops reopen for business Ward wrote : “ With a heavy heart , today I need to confirm that due to the ongoing impacts of this pandemic @ @ @ @ @ @ @ to make reductions to our workforce.
” He added it would take a “ drastic improvement in external conditions ” for Harrods to recover and return to growth , as strict social distancing measures continue to suffocate hopes of pre-Covid footfall for retailers .
“ The necessary social distancing requirements to protect employees and customers is having a huge impact on our ability to trade , while the devastation in international travel has meant we have lost key customers coming to our store and frontline operations , ” he added .
Jobs in @ @ @ @ @ @ @ — including beauty services and cafes — are expected to be among those to go .
It comes as the coronavirus crisis continues to weigh on retail businesses that heavily rely on footfall .
John Lewis today announced some of its 50 stores will remain permanently shuttered , which will likely result in job cuts .
Staff bonuses are set to be ditched next year for the first time since 1953 .
Last Friday , shopping centre giant Intu , which owns and operates 17 centres across the UK , announced it had @ @ @ @ @ @ @ the Lakeside-owner over the edge , after it had been struggling with a £4.5bn debt for more than a year .
Though footfall has risen slightly since non-essential shops were allowed to reopen earlier this month , it remained 54 per cent down last week compared to the same period in 2019 .
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Harrods slashes 700 jobs as pandemic weighs on high street
Luxury department chain Harrods has announced it is slashing 700 jobs, as the British high street continues to feel the weight of the coronavirus crisis.
In an email to staff, managing director Michael Ward said Harrods was slashing up to 14 per cent of its 4,800-strong workforce due to the “ongoing impact” of Covid-19.
Ward wrote: “With a heavy heart, today I need to confirm that due to the ongoing impacts of this pandemic, we as a business will need to make reductions to our workforce.”
He added it would take a “drastic improvement in external conditions” for Harrods to recover and return to growth, as strict social distancing measures continue to suffocate hopes of pre-Covid footfall for retailers.
“The necessary social distancing requirements to protect employees and customers is having a huge impact on our ability to trade, while the devastation in international travel has meant we have lost key customers coming to our store and frontline operations,” he added.
Jobs in parts of the store that remain closed — including beauty services and cafes — are expected to be among those to go.
It comes as the coronavirus crisis continues to weigh on retail businesses that heavily rely on footfall.
John Lewis today announced some of its 50 stores will remain permanently shuttered, which will likely result in job cuts. Staff bonuses are set to be ditched next year for the first time since 1953.
Last Friday, shopping centre giant Intu, which owns and operates 17 centres across the UK, announced it had entered into administration.
The pandemic pushed the Lakeside-owner over the edge, after it had been struggling with a £4.5bn debt for more than a year.
Though footfall has risen slightly since non-essential shops were allowed to reopen earlier this month, it remained 54 per cent down last week compared to the same period in 2019.
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cityam--2020-07-01--S&P: Brexit to hold back UK economy’s coronavirus recovery

Credit rating agency S & P has said prolonged social distancing and Brexit will hold the UK economy ’ s recovery from coronavirus , disagreeing with the Bank of England ’ s optimistic view about a sharp rebound .
S & P Global Ratings today said it expects the UK economy to shrink by an enormous 8.1 per cent this year .
And it said the economic rebound would take longer than expected , with growth next year of 6.5 per cent .
Read more : UK economic outlook less grim but ‘ considerable ’ risks remain , says BoE @ @ @ @ @ @ @ in contrast to the much rosier picture painted yesterday by Bank of England chief economist Andy Haldane .
In an online talk he said : “ Both the UK and the global economies are already well into the recovery phase .
The UK ’ s recovery is more than two months old.
” He said the UK ’ s recovery could well be ‘ V-shaped ’ – a rapid fall in GDP followed by a quick bounce back .
“ It is early days , but my reading of the evidence is so @ @ @ @ @ @ @ said .
However , S & P were clearly not convinced by Haldane ’ s argument .
In a report today , S & P senior economist Boris Glass said the company is “ now more pessimistic ” about “ the pace at which the economy , and society , will return to a semblance of normal ” .
In particular , S & P said Brexit would act as a drag on growth .
The ratings agency said it now thinks the UK will not extend the Brexit negotiations deadline past the @ @ @ @ @ @ @ the UK is now likely to switch to a limited free trade regime at the end of December , causing problems for the economy .
“ The switch to the new regime will come at an inopportune time , when the recovery is still fragile .
It will dampen the rebound in 2021 and also slow growth in the following years , ” S & P said .
S & P have long been wary of Brexit , handing the UK a double-notch credit rating downgrade after the referendum of 2016 .
Read @ @ @ @ @ @ @ s New Deal for ‘ failing to grasp ’ scale of economic crisis The report predicted the recovery will also take longer than initially expected because businesses and consumers must adjust to the “ new normal ” .
It said that some degree of social distancing may persist , even if it is not imposed .
“ We now forecast the economy will still be around three per cent smaller by 2023 than we had expected prior to the pandemic and under the assumption of an extension of the transition period , ” @ @ @

S&P: Brexit to hold back UK economy’s coronavirus recovery
S
Credit rating agency S&P has said prolonged social distancing and Brexit will hold the UK economy’s recovery from coronavirus, disagreeing with the Bank of England’s optimistic view about a sharp rebound.
S&P Global Ratings today said it expects the UK economy to shrink by an enormous 8.1 per cent this year. And it said the economic rebound would take longer than expected, with growth next year of 6.5 per cent.
This pessimistic view stands in contrast to the much rosier picture painted yesterday by Bank of England chief economist Andy Haldane. In an online talk he said: “Both the UK and the global economies are already well into the recovery phase. The UK’s recovery is more than two months old.”
He said the UK’s recovery could well be ‘V-shaped’ – a rapid fall in GDP followed by a quick bounce back. “It is early days, but my reading of the evidence is so far, so V,” Haldane said.
However, S&P were clearly not convinced by Haldane’s argument. In a report today, S&P senior economist Boris Glass said the company is “now more pessimistic” about “the pace at which the economy, and society, will return to a semblance of normal”.
Brexit comes at ‘inopportune’ time
In particular, S&P said Brexit would act as a drag on growth. The ratings agency said it now thinks the UK will not extend the Brexit negotiations deadline past the end of this year. It said the UK is now likely to switch to a limited free trade regime at the end of December, causing problems for the economy.
“The switch to the new regime will come at an inopportune time, when the recovery is still fragile. It will dampen the rebound in 2021 and also slow growth in the following years,” S&P said.
S&P have long been wary of Brexit, handing the UK a double-notch credit rating downgrade after the referendum of 2016.
The report predicted the recovery will also take longer than initially expected because businesses and consumers must adjust to the “new normal”. It said that some degree of social distancing may persist, even if it is not imposed.
“We now forecast the economy will still be around three per cent smaller by 2023 than we had expected prior to the pandemic and under the assumption of an extension of the transition period,” Glass said.


cityam--2020-07-01--John Lewis set to announce job cuts and store closures

Department store giant John Lewis is planning to slash jobs and close some of its stores as the coronavirus crisis continues to weigh on the retail sector .
John Lewis has so far reopened 22 of its 50 UK stores as the lockdown begins to ease , but said it is likely that some shops will remain permanently shuttered .
A spokesperson told City A.M. “ The reality is that we have too much store space for the way people want to shop now and we have shared this with our partners .
“ As difficult as it is , @ @ @ @ @ @ @ all our John Lewis stores .
However no decision has been made and any details would be shared with partners first by the middle of July.
” The retail giant ’ s plans were first shared with staff at the company , which is owned by its employees .
The number of stores and jobs has yet to be decided .
In a letter to 80,000 employees , chief executive Sharon White said John Lewis is unlikely to pay its workers a bonus next year as the company wrestles to improve profitability , @ @ @ @ @ @ @ : “ Regrettably , it is likely that there will be implications for some partners ’ jobs .
We are in active discussions with landlords about ending some leases and renegotiating others to make the terms more flexible.
” John Lewis is set to shutter its Partnership House office in London ’ s Victoria Street .
“ We are rethinking our head office space to cement more flexible working that has become a feature of the crisis , and will be relinquishing Partnership House in London , ” White said .
John Lewis @ @ @ @ @ @ @ further ten shops that have been shuttered since lockdown began in March , including stores in Edinburgh , Glasgow , Stratford and the Trafford Centre .
John Lewis ’ flagship Oxford Street store in London will reopen on 16 July .
The store closures come as a further blow for John Lewis , ahe company was in deep water before the outbreak of coronavirus .
In March , the company revealed that annual profits slumped 23 per cent to £123m .
The company subsequently slashed its annual bonus to two per cent of @ @ @ @ @ @ @ 1953 .
The retailer , which also owns supermarket giant Waitrose , launched a review of the business which it said would involve “ right sizing ” its stores across both brands .

John Lewis set to announce job cuts and store closures
Department store giant John Lewis is planning to slash jobs and close some of its stores as the coronavirus crisis continues to weigh on the retail sector.
John Lewis has so far reopened 22 of its 50 UK stores as the lockdown begins to ease, but said it is likely that some shops will remain permanently shuttered.
A spokesperson told City A.M. “The reality is that we have too much store space for the way people want to shop now and we have shared this with our partners.
“As difficult as it is, it is highly unlikely we will reopen all our John Lewis stores. However no decision has been made and any details would be shared with partners first by the middle of July.”
The retail giant’s plans were first shared with staff at the company, which is owned by its employees. The number of stores and jobs has yet to be decided.
In a letter to 80,000 employees, chief executive Sharon White said John Lewis is unlikely to pay its workers a bonus next year as the company wrestles to improve profitability, the Evening Standard reported.
White said: “Regrettably, it is likely that there will be implications for some partners’ jobs. We are in active discussions with landlords about ending some leases and renegotiating others to make the terms more flexible.”
John Lewis is set to shutter its Partnership House office in London’s Victoria Street.
“We are rethinking our head office space to cement more flexible working that has become a feature of the crisis, and will be relinquishing Partnership House in London,” White said.
John Lewis today said it plans to reopen a further ten shops that have been shuttered since lockdown began in March, including stores in Edinburgh, Glasgow, Stratford and the Trafford Centre. John Lewis’ flagship Oxford Street store in London will reopen on 16 July.
The store closures come as a further blow for John Lewis, ahe company was in deep water before the outbreak of coronavirus. In March, the company revealed that annual profits slumped 23 per cent to £123m. The company subsequently slashed its annual bonus to two per cent of employees’ salaries — the lowest since 1953.
The retailer, which also owns supermarket giant Waitrose, launched a review of the business which it said would involve “right sizing” its stores across both brands.


cityam--2020-07-01--Two-thirds of Brits think coronavirus bailouts should have strings attached

Almost two-thirds of Brits think large companies should only receive public bailout money if they agree to conditions such as protecting jobs and reducing carbon emissions , according to polling published today that adds to pressure on the Bank of England .
Financial campaign group Positive Money and pollster Yougov found that 63 per cent of the UK public thinks coronavirus bailouts should come with social and environmental strings attached .
Read more : Bank of England to review climate impact of corporate bond-buying after crisis Only five per cent of Brits think no conditions should be attached .
Meanwhile @ @ @ @ @ @ @ not be given any money under any circumstances .
It comes the day after criticism of the Bank of England ’ s coronavirus bailout scheme caused governor Andrew Bailey to commit to reviewing the impact of the BoE ’ s operations once the coronavirus crisis has passed .
Bailey said that now is not the time to impose conditions on struggling companies , however .
The Bank ’ s flagship bailout scheme , called the Covid corporate financing facility ( CCFF ) , has handed out more than £18bn to some of the @ @ @ @ @ @ @ Yet many of those firms are slashing jobs and are big polluters .
For example British Airways has borrowed £300m through the scheme but is planning to slash as many as 12,000 jobs .
The Bank of England has made much of its green credentials , but more than half of CCFF funds are going to firms in high-carbon sectors .
It has lent £1bn to German chemicals firm BASF , for example , and £600m to oilfield firm Baker Hughes .
“ It ’ s clear from the polling that the public @ @ @ @ @ @ @ bailed out with no strings attached , ” she said Danisha Kazi , senior economist at Positive Money , a left-wing group which campaigns for financial reform .
“ For most people it is simply common sense that corporations benefiting from public support should protect workers and play their part in fighting the climate emergency in return.
” Positive Money said companies should have to promise not to lay off workers while the bailout scheme is in place and produce credible net-zero carbon plans .
Read more : Bank of England tells lenders @ @ @ @ @ @ @ Bailey , who has been BoE governor since March , yesterday responded to criticism such as this from campaigners and members of the public .
He said the Bank had not imposed strict conditions because it has “ focused on the immediate priority of supporting the jobs and livelihoods of the people of this country ” .
Yet he said the Bank will look at imposing climate-based strings on the Bank ’ s corporate lending “ when the pressure on our resources abates ” .
Treasury says schemes are shielding the economy The @ @ @ @ @ @ @ firms receiving government bailout money .
Recipients of CCFF cash are not allowed to buy back their own shares and should “ show restraint ” on corporate pay and bonuses .
A spokesperson from the Treasury , which sets the parameters for the CCFF lending scheme , said the programme is “ directly protecting hundreds of thousands of jobs , supporting some of our biggest companies ’ cashflows and enabling them to support their suppliers ” .
“ Firms applying to our larger loan schemes are subject to various restrictions around dividends and @ @ @ @ @ @ @ under review.
” Read more : UK economic outlook less grim but ‘ considerable ’ risks remain , says BoE ’ s Haldane Nick King , head of business policy at the free-market Centre for Policy Studies think tank , said : “ There is no doubt these are extraordinary times – entire sectors are facing collapse which we know would disproportionately harm the economy.
” “ Any support offered must be on terms that protect the taxpayer – that should be the primary requirement of any bailout .
”

Two-thirds of Brits think coronavirus bailouts should have strings attached
British Airways has taken £300m from the Bank of England but plans to cut up to 12,000 jobs
Almost two-thirds of Brits think large companies should only receive public bailout money if they agree to conditions such as protecting jobs and reducing carbon emissions, according to polling published today that adds to pressure on the Bank of England.
Financial campaign group Positive Money and pollster Yougov found that 63 per cent of the UK public thinks coronavirus bailouts should come with social and environmental strings attached.
Only five per cent of Brits think no conditions should be attached. Meanwhile 15 per cent think big firms should not be given any money under any circumstances.
It comes the day after criticism of the Bank of England’s coronavirus bailout scheme caused governor Andrew Bailey to commit to reviewing the impact of the BoE’s operations once the coronavirus crisis has passed. Bailey said that now is not the time to impose conditions on struggling companies, however.
The Bank’s flagship bailout scheme, called the Covid corporate financing facility (CCFF), has handed out more than £18bn to some of the biggest companies operating in the UK.
Yet many of those firms are slashing jobs and are big polluters. For example British Airways has borrowed £300m through the scheme but is planning to slash as many as 12,000 jobs.
The Bank of England has made much of its green credentials, but more than half of CCFF funds are going to firms in high-carbon sectors. It has lent £1bn to German chemicals firm BASF, for example, and £600m to oilfield firm Baker Hughes.
Campaigners call for bailout conditions
“It’s clear from the polling that the public has had enough of big business getting bailed out with no strings attached,” she said Danisha Kazi, senior economist at Positive Money, a left-wing group which campaigns for financial reform.
“For most people it is simply common sense that corporations benefiting from public support should protect workers and play their part in fighting the climate emergency in return.”
Positive Money said companies should have to promise not to lay off workers while the bailout scheme is in place and produce credible net-zero carbon plans.
Bailey, who has been BoE governor since March, yesterday responded to criticism such as this from campaigners and members of the public. He said the Bank had not imposed strict conditions because it has “focused on the immediate priority of supporting the jobs and livelihoods of the people of this country”.
Yet he said the Bank will look at imposing climate-based strings on the Bank’s corporate lending “when the pressure on our resources abates”.
Treasury says schemes are shielding the economy
The Treasury has already imposed some conditions on firms receiving government bailout money. Recipients of CCFF cash are not allowed to buy back their own shares and should “show restraint” on corporate pay and bonuses.
A spokesperson from the Treasury, which sets the parameters for the CCFF lending scheme, said the programme is “directly protecting hundreds of thousands of jobs, supporting some of our biggest companies’ cashflows and enabling them to support their suppliers”.
“Firms applying to our larger loan schemes are subject to various restrictions around dividends and senior pay and we keep all schemes under review.”
Nick King, head of business policy at the free-market Centre for Policy Studies think tank, said: “There is no doubt these are extraordinary times – entire sectors are facing collapse which we know would disproportionately harm the economy.”
“Any support offered must be on terms that protect the taxpayer – that should be the primary requirement of any bailout.”


cityam--2020-07-01--Government: Pest control firm’s £108m PPE contract issued ‘in error’

The government has backtracked on official documents showing that it awarded a family-run pest control firm £108m to procure personal protective equipment ( PPE ) , saying it reported the sum “ in error ” .
The Department for Health last month published documents that showed it secured a deal worth £108m in April with Crisp Websites Ltd — a pest control firm trading under the name of Pestfix — which has 16 staff and net assets of just over £18,000 .
Read more : Treasury welcomes change in state aid rules for government-backed loans The government handed out more @ @ @ @ @ @ @ private companies in April , as the UK scrambled to find sufficient levels of protective equipment for the NHS .
The £108m figure meant the deal with Pestfix represented almost a third of the government ’ s total PPE procurement funding .
However , the government has now said the £108m figure was incorrect , following legal proceedings from non-profit organisation the Good Law Project .
The Good Law Project claimed the contract was awarded without a competitive tender process and to a company that had no prior expertise in producing PPE .
@ @ @ @ @ @ @ Project , the government said it reported the details of the contract “ in error ” , and that the Pestfix PPE contract was actually worth £32m .
“ It has come to light that the contract award notice published… on 18 May was issued in error , and a new notice with the correct details will be issued shortly ” , the letter read .
However , the government added that the £32m contract was one of “ a number ” of PPE contracts awarded to Pestfix — the details of which @ @ @ @ @ @ @ For completeness , we should add that a number of further contracts have also been agreed with the interested party , full details of which will be published in the coming weeks , ” the letter said .
Official government documents stated that the Pestfix contract would encompass the “ delivery and supply of urgently needed gloves , gowns and masks ” .
But the government has now said this is incorrect , and “ rather than a contract for gloves , masks and isolation suits for £108m as indicated , the contract @ @ @ @ @ @ @ … was in fact for isolation suits only , with a value of £32m instead.
” Pestfix currently offers 22 different PPE products on its website , including goggles , face shields and plastic gloves .
It also sells a Stay Alert Steri Kit , which includes hand sanitiser , surgical masks and sterilised wipes , for £83.99 .
Dan England , the co-founder of the business , told the Times that although the company had not previously sold PPE , he had “ very good connections in the supply chain ” in @ @ @ @ @ @ @ to help the NHS in their hour of need ” .
The government also disputed the Good Law Project ’ s suggestion that the contract had been awarded without being properly publicly advertised .
All central government procurement opportunities worth more than £10,000 must be published on the government ’ s Contract Finder page in a legal tender process .
A Treasury spokesman said that the government received “ around 16,000 offers from suppliers ” in response to a national call to arms for PPE on 18 May .
However , documents showed @ @ @ @ @ @ @ the government was made on 10 April — three days before the tender process for the contract was supposed to conclude on 13 April .
Jolyon Maugham , founder and director of the Good Law Project said : “ The government ’ s bizarre response to judicial review proceedings throws up more questions than answers.
” “ How many other contracts have been awarded to Pestfix ?
How much are those contracts worth ?
Why do they claim they advertised the original contract in question , after the contract was already awarded ?
@ @ @ @ @ @ @ can be absolutely clear about is that huge sums of public money have gone to a tiny company with no expertise in the area.
” Read more : Lords urge government to take immediate action against online misinformation “ It ’ s difficult to imagine how any of this would have come to light had we not sued .
We will keep pushing until we have all the answers.
” Pestfix did not respond to requests for comment .
The Department for Health and Social Care said : “ [ We ] can @ @ @ @ @ @ @ .
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Government: Firm’s £108m PPE contract issued ‘in error’
The government has backtracked on official documents showing that it awarded a family-run firm £108m to procure personal protective equipment (PPE), saying it reported the sum “in error”, City A.M. can reveal.
The Department for Health last month published documents that showed it secured a deal worth £108m in April with Crisp Websites Ltd — a pest control firm trading under the name of Pestfix — which has 16 staff and net assets of just over £18,000.
The government handed out more than £350m worth of PPE contracts to private companies in April, as the UK scrambled to find sufficient levels of protective equipment for the NHS. The £108m figure meant the deal with Pestfix represented almost a third of the government’s total PPE procurement funding.
However, the government has now said the £108m figure was incorrect, following legal proceedings from non-profit organisation the Good Law Project, City A.M. can reveal.
The Good Law Project claimed the contract was awarded without a competitive tender process and to a company that had no prior expertise in producing PPE.
In a letter to the Good Law Project seen by City A.M, the government said it reported the details of the contract “in error”, and that the Pestfix PPE contract was actually worth £32m.
“It has come to light that the contract award notice published… on 18 May was issued in error, and a new notice with the correct details will be issued shortly”, the letter read.
However, the government added that the £32m contract was one of “a number” of PPE contracts awarded to Pestfix — the details of which are yet to be disclosed.
“For completeness, we should add that a number of further contracts have also been agreed with the interested party, full details of which will be published in the coming weeks,” the letter said.
Official government documents stated that the Pestfix contract would encompass the “delivery and supply of urgently needed gloves, gowns and masks”.
But the government has now said this is incorrect, and “rather than a contract for gloves, masks and isolation suits for £108m as indicated, the contract that was concluded with [Pestfix]… was in fact for isolation suits only, with a value of £32m instead.”
Pestfix currently offers 22 different PPE products on its website, including goggles, face shields and plastic gloves. It also sells a Stay Alert Steri Kit, which includes hand sanitiser, surgical masks and sterilised wipes, for £83.99.
Dan England, the co-founder of the business, told the Times that although the company had not previously sold PPE, he had “very good connections in the supply chain” in the far East and had “tried to help the NHS in their hour of need”.
The government also disputed the Good Law Project’s suggestion that the contract had been awarded without being properly publicly advertised. All central government procurement opportunities worth more than £10,000 must be published on the government’s Contract Finder page in a legal tender process.
A Treasury spokesman said that the government received “around 16,000 offers from suppliers” in response to a national call to arms for PPE on 18 May.
However, documents showed that the £108m purchase order issued by the government was made on 10 April — three days before the tender process for the contract was supposed to conclude on 13 April.
Jolyon Maugham, founder and director of the Good Law Project said: “The government’s bizarre response to judicial review proceedings throws up more questions than answers.”
“How many other contracts have been awarded to Pestfix? How much are those contracts worth? Why do they claim they advertised the original contract in question, after the contract was already awarded?”
He added: “What we can be absolutely clear about is that huge sums of public money have gone to a tiny company with no expertise in the area.”
“It’s difficult to imagine how any of this would have come to light had we not sued. We will keep pushing until we have all the answers.”
The Department for Health and Social Care said: “[We] cannot comment on ongoing legal matters”.
A spokesperson for Pestfix said: “Pestfix is a public health supply SME that has been procuring and supplying PPE — among other items for use in pest control — for more
than a decade, to a range of sectors, including many NHS Foundation Trusts.”
“Our small, dedicated global team, spanning three continents, has worked
non-stop for the past three months to support efforts of
getting PPE to the frontline involving an ongoing and herculean
logistics operation.
“We are proud to say we have already delivered tens of tens of millions
of medical-grade PPE items to the NHS as part of this contract and are
well on track to complete the order on schedule.”
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