cityam--2020-05-29--UK entrepreneurs rally behind the national response to COVID-19

Entrepreneurs are typically good at acting fast , spotting opportunities and responding to a dynamic market , so it comes as no surprise that many are responding to the ongoing COVID-19 situation by taking decisive action .
As they try to determine the impact of the crisis , they ’ ve had to react quickly to safeguard employees and the future viability of the business they ’ ve spent years building .
Entrepreneurs are a crucial part of the UK economy , and will be key to our economic recovery as we emerge from this crisis .
As they consider @ @ @ @ @ @ @ of challenging circumstances , we have seen inspiring examples among our UK EY Entrepreneur Of The Year™ alumni , across different sectors and regions , pivoting the focus of their business to adapt to the current climate .
Following the rapid shortage of hand sanitisers at the start of COVID-19 , a number of our entrepreneur alumni have shifted their production to meet this demand , showing innovation and flexibility .
The Isle of Harris Distillery founders , and James Watt of Brewdog are just a couple of examples of where entrepreneurs have @ @ @ @ @ @ @ meet a national need at a difficult time .
As the country rallies behind the NHS , some of our entrepreneurs have been finding ways to redirect their business to help support the national effort – from accommodation , scrubs , care packages and more .
Merilee Karr , founder of UnderTheDoormat and EY Entrepreneurial Winning Women alumni , has set up NHS Homes , a website which puts health staff in touch with landlords willing to offer properties for free or next to nothing .
Meanwhile many like Alan and Juliet Barratt @ @ @ @ @ @ @ out free care packages to front line NHS heroes .
There are a number of creative and positive steps businesses are taking to contribute to the COVID-19 collective response , showcasing the dynamism and social purpose which sits at the heart of our entrepreneurial businesses .
From a medical perspective , Dr Deborah O ’ Neil , CEO of NovaBiotics , the clinical stage antimicrobial drug discovery company , has been working to rapidly repurpose an experimental drug for COVID-19 trials , working closely with the NHS .
Critically our 2018 winner Gordon @ @ @ @ @ @ @ public health laboratories and researchers around the world to support the current COVID-19 pandemic .
This includes rapid sequencing of the novel coronavirus SARS-CoV-2 .
The team at Fuyang City CDC , who were the first to sequence 99.5 % of the # SARSCoV2 genome did so using Oxford Nanopore ’ s MinION Mk1C genome sequencing kit .
In a completely different vein , Simon and Kim Morrish from Ground Control , a commercial grounds maintenance contractor , have been raising funds for the creation of a ‘ Tranquillity Garden ’ at NHS @ @ @ @ @ @ @ space to get fresh air and recharge whilst on shift .
Meanwhile , the team at BBOXX are working with the World Health Organisation to train BBOXX call centre staff so they can provide accurate information on the virus to their customers .
The response from our Entrepreneur Of The Year alumni is inspiring , but not surprising .
While UK businesses may not have had to face a situation like this in living memory , the extent to which these businesses have been able to contribute to the national effort is a @ @ @ @ @ @ @ in business and society : a can do attitude and focus on action .
Of course , there are many more fantastic examples than those we ’ ve mentioned here , and no one should underestimate the financial and market pressures on all businesses at this time .
But I believe that , as we emerge from this time of crisis , the energy and drive of our entrepreneurs will be at the heart of the UK ’ s recovery .
Register now to join EY World Entrepreneur Of The Year™ 2020 awards @ @ @ @ @ @ @ //info.ey.com/weoy.html

What is City Talk? City Talk allows marketers to connect directly with our audience by publishing content on cityam.com
UK entrepreneurs rally behind the national response to COVID-19
UK EY Entrepreneur Of The Year™ alumni: Gordon Sanghera, Kim Morrish, Simon Morrish, Simon Erlanger, Anderson Bakewell, Ron MacEachran and Dr Deborah O’Neil
Entrepreneurs are typically good at acting fast, spotting opportunities and responding to a dynamic market, so it comes as no surprise that many are responding to the ongoing COVID-19 situation by taking decisive action. As they try to determine the impact of the crisis, they’ve had to react quickly to safeguard employees and the future viability of the business they’ve spent years building.
Entrepreneurs are a crucial part of the UK economy, and will be key to our economic recovery as we emerge from this crisis. As they consider business priorities and planning against a backdrop of challenging circumstances, we have seen inspiring examples among our UK EY Entrepreneur Of The Year™ alumni, across different sectors and regions, pivoting the focus of their business to adapt to the current climate.
Following the rapid shortage of hand sanitisers at the start of COVID-19, a number of our entrepreneur alumni have shifted their production to meet this demand, showing innovation and flexibility. The Isle of Harris Distillery founders, and James Watt of Brewdog are just a couple of examples of where entrepreneurs have adapted their production line, to help meet a national need at a difficult time.
As the country rallies behind the NHS, some of our entrepreneurs have been finding ways to redirect their business to help support the national effort – from accommodation, scrubs, care packages and more. Merilee Karr, founder of UnderTheDoormat and EY Entrepreneurial Winning Women alumni, has set up NHS Homes, a website which puts health staff in touch with landlords willing to offer properties for free or next to nothing. Meanwhile many like Alan and Juliet Barratt of sports nutrition brand Grenade are sending out free care packages to front line NHS heroes.
There are a number of creative and positive steps businesses are taking to contribute to the COVID-19 collective response, showcasing the dynamism and social purpose which sits at the heart of our entrepreneurial businesses.
From a medical perspective, Dr Deborah O’Neil, CEO of NovaBiotics, the clinical stage antimicrobial drug discovery company, has been working to rapidly repurpose an experimental drug for COVID-19 trials, working closely with the NHS. Critically our 2018 winner Gordon Sanghera of Oxford Nanopore is working with public health laboratories and researchers around the world to support the current COVID-19 pandemic. This includes rapid sequencing of the novel coronavirus SARS-CoV-2. The team at Fuyang City CDC, who were the first to sequence 99.5% of the #SARSCoV2 genome did so using Oxford Nanopore’s MinION Mk1C genome sequencing kit.
In a completely different vein, Simon and Kim Morrish from Ground Control, a commercial grounds maintenance contractor, have been raising funds for the creation of a ‘Tranquillity Garden’ at NHS Nightingale in London to give staff a space to get fresh air and recharge whilst on shift. Meanwhile, the team at BBOXX are working with the World Health Organisation to train BBOXX call centre staff so they can provide accurate information on the virus to their customers.
The response from our Entrepreneur Of The Year alumni is inspiring, but not surprising. While UK businesses may not have had to face a situation like this in living memory, the extent to which these businesses have been able to contribute to the national effort is a product of their regular approach to challenges in business and society: a can do attitude and focus on action. Of course, there are many more fantastic examples than those we’ve mentioned here, and no one should underestimate the financial and market pressures on all businesses at this time. But I believe that, as we emerge from this time of crisis, the energy and drive of our entrepreneurs will be at the heart of the UK’s recovery.
Register now to join EY World Entrepreneur Of The Year™ 2020 awards webcast on 5 June: https://info.ey.com/weoy.html


cityam--2020-05-29--Bella Italia owner in talks over sale that could save 6,000 jobs

The owner of high street restaurant chains Bella Italia and Cafe Rouge is in talks with multiple parties over a potential sale of the business , just days after it seemed to be on the brink of collapse .
The development , which was first reported by the Telegraph , comes after the Casual Dining Group , which also owns Las Iguanas , filed to appoint administrators at the beginning of last week , threatening up to 6,000 jobs .
Read more : Coronavirus : 6,000 jobs at risk as Cafe Rouge and Bella Italia owner faces collapse A spokesperson @ @ @ @ @ @ @ process was being explored , saying : “ While in the protective period following the filing of our NOI , Casual Dining Group has received strong expressions of interest from interested parties , both trade buyers and investors , regarding a potential sale of the business .
“ This is one of a number of options that we are considering as we formulate a plan for the company ” , they added .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic @ @ @ @ @ @ @ sale is among the options being considered for the sale .
Last week Casual Dining Group said that it was working with advisers at consultancy firm Alix Partners over a potential restructuring to shore up its finances .
The firm had previously attempted to mitigate wider difficulties in the sector by reducing its restaurant count from 300 to 250 and selling off Spanish tapas chain La Tasca .
Read more : All McDonald ’ s drive-thru restaurants to reopen next week But alongside other restaurants the company has been plunged into crisis after @ @ @ @ @ @ @ doors in March as part of the coronavirus lockdown .
Despite moves now being taken to reopen much of the economy , with non-essential retailers to be allowed to open from 15 June , much of the hospitality sector will not be permitted to restart until July at the earliest .

Bella Italia owner in talks over sale that could save 6,000 jobs
Energy crisis: Small firms are likely to suffer due to soaring energy bills
The owner of high street restaurant chains Bella Italia and Cafe Rouge is in talks with multiple parties over a potential sale of the business, just days after it seemed to be on the brink of collapse.
The development, which was first reported by the Telegraph, comes after the Casual Dining Group, which also owns Las Iguanas, filed to appoint administrators at the beginning of last week, threatening up to 6,000 jobs.
A spokesperson for the group confirmed that a sale process was being explored, saying:
“While in the protective period following the filing of our NOI, Casual Dining Group has received strong expressions of interest from interested parties, both trade buyers and investors, regarding a potential sale of the business.
“This is one of a number of options that we are considering as we formulate a plan for the company”, they added.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
It is understood that a pre-pack sale is among the options being considered for the sale.
Last week Casual Dining Group said that it was working with advisers at consultancy firm Alix Partners over a potential restructuring to shore up its finances.
The firm had previously attempted to mitigate wider difficulties in the sector by reducing its restaurant count from 300 to 250 and selling off Spanish tapas chain La Tasca.
But alongside other restaurants the company has been plunged into crisis after UK eateries were forced to close their doors in March as part of the coronavirus lockdown.
Despite moves now being taken to reopen much of the economy, with non-essential retailers to be allowed to open from 15 June, much of the hospitality sector will not be permitted to restart until July at the earliest.


cityam--2020-05-29--London business confidence rises but gloom remains as lockdown eased

London business confidence picked up slightly in May as the government lifted coronavirus restrictions , but firms grew gloomier across the country as a whole .
The business barometer from Lloyds showed that London business confidence rose eight points on its gauge to minus 20 .
This was nonetheless close to a record low after sentiment plunged in April .
Read more : Consumer confidence among millennials jumps during lockdown Worryingly for policymakers , business confidence in the country as a whole continued to fall in May .
The countrywide Lloyds gauge hit minus 33 in April , the lowest @ @ @ @ @ @ @ crisis in 2008 .
The government has already lifted some aspects of the coronavirus lockdown , with more to come in June and July .
Outdoor markets , car showrooms and dentists can reopen from Monday if they can follow safety guidelines , Prime Minister Boris Johnson said yesterday .
Non-essential retailers such as clothes shops will be allowed to open from 15 June if the coronavirus infection rate stays under control , the PM said .
Pubs , restaurants and cinemas are expected to be the last to reopen .
The government @ @ @ @ @ @ @ customers again in July .
Nonetheless , the Lloyds barometer showed that companies across the country remain deeply worried about the economic situation .
Optimism about the future among firms fell in May despite the plans to reopen .
It hit its lowest level since 2009 .
Hiring intentions also fell again .
Almost 40 per cent of firms said they did not expect to raise wages over the next year .
Yet confidence was above the national average in London , West Midlands and North of England .
In the capital , @ @ @ @ @ @ @ the prospects of their own businesses in May than in April .
Meanwhile , the number of firms in London operating at less than 50 per cent capacity decreased 15 percentage points to 37 per cent .
“ While it will clearly be some time before we return to something resembling normality , we must take encouragement from London firms increasing their operational capacity , ” said Paul Evans , regional director for London at Lloyds Bank .
Read more : Coronavirus : People in England can meet in groups of six outside @ @ @ @ @ @ @ at Lloyds , said : “ Despite the results partly capturing the period since the Government ’ s announcement of an initial easing of restrictions , trading conditions remain difficult for most firms .
“ Nevertheless , a further relaxation of constraints will enable more businesses to resume their activities .
”

London business confidence rises but gloom remains as lockdown eased
London’s businesses have suffered during the coronavirus lockdown, but sentiment improved slightly in May
London business confidence picked up slightly in May as the government lifted coronavirus restrictions, but firms grew gloomier across the country as a whole.
The business barometer from Lloyds showed that London business confidence rose eight points on its gauge to minus 20. This was nonetheless close to a record low after sentiment plunged in April.
Worryingly for policymakers, business confidence in the country as a whole continued to fall in May. The countrywide Lloyds gauge hit minus 33 in April, the lowest score since the depths of the financial crisis in 2008.
The government has already lifted some aspects of the coronavirus lockdown, with more to come in June and July.
Outdoor markets, car showrooms and dentists can reopen from Monday if they can follow safety guidelines, Prime Minister Boris Johnson said yesterday.
Non-essential retailers such as clothes shops will be allowed to open from 15 June if the coronavirus infection rate stays under control, the PM said.
Pubs, restaurants and cinemas are expected to be the last to reopen. The government’s roadmap suggests they could welcome customers again in July.
Nonetheless, the Lloyds barometer showed that companies across the country remain deeply worried about the economic situation.
Optimism about the future among firms fell in May despite the plans to reopen. It hit its lowest level since 2009.
Hiring intentions also fell again. Almost 40 per cent of firms said they did not expect to raise wages over the next year.
London businesses increase capacity
Yet confidence was above the national average in London, West Midlands and North of England.
In the capital, firms said they were more confident about the prospects of their own businesses in May than in April.
Meanwhile, the number of firms in London operating at less than 50 per cent capacity decreased 15 percentage points to 37 per cent.
“While it will clearly be some time before we return to something resembling normality, we must take encouragement from London firms increasing their operational capacity,” said Paul Evans, regional director for London at Lloyds Bank.
Hann-Ju Ho, senior economist at Lloyds, said: “Despite the results partly capturing the period since the Government’s announcement of an initial easing of restrictions, trading conditions remain difficult for most firms.
“Nevertheless, a further relaxation of constraints will enable more businesses to resume their activities.”


cityam--2020-05-29--Dividend bear markets: the grizzly facts

With companies around the world drastically cutting dividends , we ’ ve looked at 149 years of data to see what ’ s happened previously at such times and what investors might expect next .
Dividends are expected to be slashed by 25 % to 50 % across the globe this year compared with 2019 .
This will be an unwelcome ( if not entirely unexpected ) development for many stock market investors .
Our analysis of nearly 150 years of data on the S & P 500 index of US stocks shows that bear markets for dividends like this @ @ @ @ @ @ @ 20 % – are a rarity .
There has only been one other since the end of World War II .
This occurred during the Great Financial Crisis , when dividends fell by 24 % .
In the past 149 years there have been only six , compared with 16 bear markets for total returns .
We are truly living in exceptional times .
However , although dividend bear markets have been less frequent , the painful news for investors seeking attractive dividends is that they have historically lasted much longer than those @ @ @ @ @ @ @ ) : 4.8 years compared with 1.5 years , on average ( or 3.5 years compared with 1.3 years in the median case ) .
The September 2008-March 2010 dividend bear market was relatively short compared with others ( see the first infographic at the botom of the page ) .
This make sense .
Share prices react in advance of economic improvement , whereas dividends don ’ t pick up until after companies ’ financials improve .
In better times , bull markets in dividends – where dividends rise by at least @ @ @ @ @ @ @ also last much longer than in total returns – 17.2 years compared with 7.4 years .
This is heavily influenced by one exceptionally long bull market for dividends , which lasted almost 70 years from 1940 to 2008 .
However , even in the median case ( which is not distorted by this experience ) , dividend bull markets have lasted 9.0 years compared with 5.3 years for total returns .
This also makes sense .
Companies don ’ t like cutting dividends because of the negative signal it sends about their future @ @ @ @ @ @ @ & A : Will Covid-19 mark a permanent economic shift ?
– Slumping economy , surging stock market– what ’ s going on ?
– Infographic : A snapshot of the world economy in May 2020 These differences are accentuated once you take inflation into account ( see the second infographic at the bottom of the page ) .
The median bear market for real ( i.e .
inflation adjusted ) dividends has been nine years long , compared with only 1.8 years for real total returns .
The implication is that , @ @ @ @ @ @ @ cut , they continue to grow more slowly than inflation for an extended period .
This time is it different ?
It could well be , but that may not provide the relief that investors are hoping for .
Companies have acted quickly in response to the uncertainty brought on by Covid-19 .
Weaker companies need all available cash to fight for survival .
Those in receipt of government support may be prevented from paying dividends or find it politically unpalatable to do so .
Banks in some countries have been instructed not @ @ @ @ @ @ @ capital so that they can provide finance to companies that need it .
Even companies in otherwise strong shape have been forced to take a more conservative stance .
Dividend cuts have been fast , comprehensive , and relatively indiscriminate .
This has not been a drawn-out episode .
This offers hope that , although the severity of the dividend bear market may be harsh , its duration may be shorter than average .
It could be more like the 2008-10 experience than those of more distant years .
The question then turns @ @ @ @ @ @ @ economic activity could resume as soon as some of the stricter lockdown conditions are eased , we are unlikely to return to anything like ‘ business as usual ’ for some time .
This is likely to constrain the appetite and ability for dividends to rebound , at least in the near term .
Consistent with that , dividend futures contracts , financial instruments which allows investors to put on positions based on their views about the future path of dividends , are pricing in further declines in dividends in 2021 .
However @ @ @ @ @ @ @ beyond , one theme that is likely to emerge is greater discrimination among companies .
The widespread cuts that we are seeing this year are unlikely to be repeated – unless progress on a vaccine fizzles out and second waves of infection result in extended lockdowns through next year .
Companies that have adopted a more conservative dividend stance but where the underlying business is robust will be in good shape to restore and start to grow dividends once again , once economies start to open up .
In contrast , weaker companies @ @ @ @ @ @ @ balance sheets .
As a result , 2021 could well be characterised by material dispersion in pay-outs .
2022 looks more promising .
Futures contracts are pricing in almost 10 % dividend growth for the US market overall .
However , importantly , this would still leave them almost 20 % below their level in 2019 .
It is not until the end of 2027 that futures markets are pricing US dividends to get back to reach those heights again .
It is a similar , or worse , story in other markets @ @ @ @ @ @ @ for several years of lower dividend income .
However , that does not mean that income investors should abandon stocks .
Investors who are able to discriminate between companies with better prospects and the market overall will be in a much stronger position to deliver stronger and more sustainable growth in dividends over time .
In addition , with government and corporate bond yields also plummeting , yields on stocks are likely to retain appeal compared with alternatives .
The value of investments and the income from them may go down as well @ @ @ @ @ @ @ back the amounts originally invested .
This information is not an offer , solicitation or recommendation to adopt any investment strategy .
• You can discover more at Schroders insights and follow Schroders on twitter .
Important Information : This communication is marketing material .
The views and opinions contained herein are those of the author ( s ) on this page , and may not necessarily represent views expressed or reflected in other Schroders communications , strategies or funds .
This material is intended to be for information purposes only and is @ @ @ @ @ @ @ respect .
The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument .
It is not intended to provide and should not be relied on for accounting , legal or tax advice , or investment recommendations .
Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions .
Past performance is not a reliable indicator of future results .
The value of an investment can go down as well as up and is not @ @ @ @ @ @ @ the risk of possible loss of principal .
Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy .
Some information quoted was obtained from external sources we consider to be reliable .
No responsibility can be accepted for errors of fact obtained from third parties , and this data may change with market conditions .
This does not exclude any duty or liability that Schroders has to its customers under any regulatory system .
Regions/ sectors shown for illustrative purposes only and should not be viewed @ @ @ @ @ @ @ opinions in this material include some forecasted views .
We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know .
However , there is no guarantee than any forecasts or opinions will be realised .
These views and opinions may change .
To the extent that you are in North America , this content is issued by Schroder Investment Management North America Inc. , an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to @ @ @ @ @ @ @ For all other users , this content is issued by Schroder Investment Management Limited , 1 London Wall Place , London EC2Y 5AU .
Registered No .
1893220 England .
Authorised and regulated by the Financial Conduct Authority .

What is City Talk? City Talk allows marketers to connect directly with our audience by publishing content on cityam.com
Dividend bear markets: the grizzly facts
Getty Images
With companies around the world drastically cutting dividends, we’ve looked at 149 years of data to see what’s happened previously at such times and what investors might expect next.
Dividends are expected to be slashed by 25% to 50% across the globe this year compared with 2019. This will be an unwelcome (if not entirely unexpected) development for many stock market investors.
Our analysis of nearly 150 years of data on the S&P 500 index of US stocks shows that bear markets for dividends like this – where dividends fall by at least 20% – are a rarity. There has only been one other since the end of World War II. This occurred during the Great Financial Crisis, when dividends fell by 24%.
In the past 149 years there have been only six, compared with 16 bear markets for total returns. We are truly living in exceptional times.
However, although dividend bear markets have been less frequent, the painful news for investors seeking attractive dividends is that they have historically lasted much longer than those for total returns (growth and income): 4.8 years compared with 1.5 years, on average (or 3.5 years compared with 1.3 years in the median case). The September 2008-March 2010 dividend bear market was relatively short compared with others (see the first infographic at the botom of the page).
This make sense. Share prices react in advance of economic improvement, whereas dividends don’t pick up until after companies’ financials improve.
In better times, bull markets in dividends – where dividends rise by at least 20% from the previous trough – also last much longer than in total returns – 17.2 years compared with 7.4 years. This is heavily influenced by one exceptionally long bull market for dividends, which lasted almost 70 years from 1940 to 2008.
However, even in the median case (which is not distorted by this experience), dividend bull markets have lasted 9.0 years compared with 5.3 years for total returns. This also makes sense. Companies don’t like cutting dividends because of the negative signal it sends about their future prospects.
For more:
– Q&A: Will Covid-19 mark a permanent economic shift?
– Slumping economy, surging stock market– what’s going on?
– Infographic: A snapshot of the world economy in May 2020
These differences are accentuated once you take inflation into account (see the second infographic at the bottom of the page). The median bear market for real (i.e. inflation adjusted) dividends has been nine years long, compared with only 1.8 years for real total returns. The implication is that, although companies normally restore dividends after a cut, they continue to grow more slowly than inflation for an extended period.
This time is it different?
It could well be, but that may not provide the relief that investors are hoping for. Companies have acted quickly in response to the uncertainty brought on by Covid-19. Weaker companies need all available cash to fight for survival. Those in receipt of government support may be prevented from paying dividends or find it politically unpalatable to do so.
Banks in some countries have been instructed not to pay dividends in order to preserve capital so that they can provide finance to companies that need it. Even companies in otherwise strong shape have been forced to take a more conservative stance.
Dividend cuts have been fast, comprehensive, and relatively indiscriminate. This has not been a drawn-out episode. This offers hope that, although the severity of the dividend bear market may be harsh, its duration may be shorter than average. It could be more like the 2008-10 experience than those of more distant years.
What next?
The question then turns to what happens next? Although limited economic activity could resume as soon as some of the stricter lockdown conditions are eased, we are unlikely to return to anything like ‘business as usual’ for some time. This is likely to constrain the appetite and ability for dividends to rebound, at least in the near term.
Consistent with that, dividend futures contracts, financial instruments which allows investors to put on positions based on their views about the future path of dividends, are pricing in further declines in dividends in 2021.
However, as we look to 2021 and beyond, one theme that is likely to emerge is greater discrimination among companies. The widespread cuts that we are seeing this year are unlikely to be repeated – unless progress on a vaccine fizzles out and second waves of infection result in extended lockdowns through next year.
Companies that have adopted a more conservative dividend stance but where the underlying business is robust will be in good shape to restore and start to grow dividends once again, once economies start to open up. In contrast, weaker companies will need much longer to repair their balance sheets. As a result, 2021 could well be characterised by material dispersion in pay-outs.
2022 looks more promising. Futures contracts are pricing in almost 10% dividend growth for the US market overall. However, importantly, this would still leave them almost 20% below their level in 2019. It is not until the end of 2027 that futures markets are pricing US dividends to get back to reach those heights again. It is a similar, or worse, story in other markets. Investors need to reset their expectations for several years of lower dividend income.
However, that does not mean that income investors should abandon stocks. Investors who are able to discriminate between companies with better prospects and the market overall will be in a much stronger position to deliver stronger and more sustainable growth in dividends over time. In addition, with government and corporate bond yields also plummeting, yields on stocks are likely to retain appeal compared with alternatives.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
This information is not an offer, solicitation or recommendation to adopt any investment strategy.
You can discover more at Schroders insights and follow Schroders on twitter.
Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada. For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.


cityam--2020-05-29--Sunak set to tell employers to contribute to furlough scheme payments

Chancellor Rishi Sunak is expected to tell employers today that they will have to start contributing to the government ’ s massive furlough scheme which is paying the wages of millions of UK workers .
Sunak will say companies must pay between 20 per cent and 30 per cent of the costs of the programme – the centrepiece of his attempts to protect the economy from the coronavirus shutdown – according to media reports .
Read more : UK firms face ‘ difficult decisions ’ when furlough scheme winds down He is also expected to say when workers on the @ @ @ @ @ @ @ until the end of October , can return on a part-time basis , something many firms want as they build up operations gradually .
Around 8.4m workers , or about one in three private sector employees , are covered .
The cost to the public finances so far is £15bn .
Under the scheme employees are unable to work for their company and the government pays 80 per cent of their monthly wages up to £2,500 until the end of October .
Some employers worry that they will not afford to cover a @ @ @ @ @ @ @ still in the doldrums .
The Institute of Directors said this week that a quarter of its member firms using the scheme would struggle to pay a share of the costs , raising the risk of job losses .
Sunak has previously said the scheme is too expensive to continue indefinitely .
Britain ’ s borrowing in April alone of over £60bn was equivalent to almost all of the previous financial year .
About 2.3m claims totalling £6.8bn have been made for a similar programme for self-employed people .
That scheme is due @ @ @ @ @ @ @ have also spiked with 1.8m claims for Universal Credit claims between 16 March and the end of April .
Universal Credit is paid to people in work as well as those who have lost their jobs .

Sunak set to tell employers to contribute to furlough scheme payments
Chancellor Rishi Sunak is expected to tell employers today that they will have to start contributing to the government’s massive furlough scheme which is paying the wages of millions of UK workers.
Sunak will say companies must pay between 20 per cent and 30 per cent of the costs of the programme – the centrepiece of his attempts to protect the economy from the coronavirus shutdown – according to media reports.
He is also expected to say when workers on the scheme, which is due to run until the end of October, can return on a part-time basis, something many firms want as they build up operations gradually.
Around 8.4m workers, or about one in three private sector employees, are covered. The cost to the public finances so far is £15bn.
Under the scheme employees are unable to work for their company and the government pays 80 per cent of their monthly wages up to £2,500 until the end of October.
Some employers worry that they will not afford to cover a slice of staff wages with the economy still in the doldrums.
The Institute of Directors said this week that a quarter of its member firms using the scheme would struggle to pay a share of the costs, raising the risk of job losses.
Sunak has previously said the scheme is too expensive to continue indefinitely.
Britain’s borrowing in April alone of over £60bn was equivalent to almost all of the previous financial year.
About 2.3m claims totalling £6.8bn have been made for a similar programme for self-employed people. That scheme is due to close this weekend.
Benefit claims have also spiked with 1.8m claims for Universal Credit claims between 16 March and the end of April.
Universal Credit is paid to people in work as well as those who have lost their jobs.


cityam--2020-05-29--SIG confirms £150m raise plans as firm swings to loss

Building products supplier SIG this morning confirmed plans to raise £150m from a share issue after the firm swung to a loss in 2019 .
The company said that investment firm Clayton , Dubilier and Rice ( CDR ) had agreed to invest £85m into SIG , and would take two board seats as a result .
Read more : Renault to cut 15,000 jobs in Covid-19 restructuring plan The announcement initially prompted shares to jump , before falling back to sit 0.3 per cent up as of mid-morning .
SIG said it made a pre-tax loss of £112.7m in @ @ @ @ @ @ @ a profit of £10.3m in 2018 .
The firm said that a nine per cent fall in underlying revenue to £2.1bn , caused by a loss of market share in the UK and Germany , was responsible for the swing .
Earnings per share also fell back 90 per cent from 6.3p to 0.6p .
In an attached trading update on the impact of coronavirus on the firm , SIG reported that revenues in March and April had fallen 37 per cent – £138.9m – on the previous year .
The firm said @ @ @ @ @ @ @ , with net debt standing at £114.1m .
As a result of the challenging financial situation , SIG ’ s board has decided against paying out a dividend this year .
Acknowledging that the previous year ’ s results were a disappointment , the firm said it was now ready to strengthen its capital structure through a placing .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
The raising will be structured in two parts , with the initial £60m @ @ @ @ @ @ @ share .
The second £90m tranche would be offered to a broader range of investors and incorporate a pre-emptive offer , in which CDR would invest up to £25m .
CDR has guaranteed investment of £72.5m at the least , condition of a successful raise of at least £150m .
IKO , SIG ’ s largest shareholder , said that it was fully supportive of the strategy and equity raise .
Chief executive Steve Francis said : “ Since my appointment as CEO on 25 February , we have been developing a new @ @ @ @ @ @ @ people , growth and active industry leadership .
Read more : UK car industry flatlines as just 197 cars built in April “ After nearly a decade of contraction , which has included disposals , rationalisation , debt and cost reduction , it is now time to focus on how to grow SIG .
I firmly believe that our new strategy for growth will provide the basis , not only for the restoration of profit and cash conversion , but also serve as a foundation to play a leading role in our industry @ @ @ @ @ @

SIG confirms £150m raise plans as firm swings to loss
Building products supplier SIG this morning confirmed plans to raise £150m from a share issue after the firm swung to a loss in 2019.
The company said that investment firm Clayton, Dubilier and Rice (CDR) had agreed to invest £85m into SIG, and would take two board seats as a result.
The announcement initially prompted shares to jump, before falling back to sit 0.3 per cent up as of mid-morning.
The figures
SIG said it made a pre-tax loss of £112.7m in the last financial year, swinging from a profit of £10.3m in 2018.
The firm said that a nine per cent fall in underlying revenue to £2.1bn, caused by a loss of market share in the UK and Germany, was responsible for the swing.
Earnings per share also fell back 90 per cent from 6.3p to 0.6p.
In an attached trading update on the impact of coronavirus on the firm, SIG reported that revenues in March and April had fallen 37 per cent – £138.9m – on the previous year.
The firm said it had cash resources of around £135m, with net debt standing at £114.1m.
As a result of the challenging financial situation, SIG’s board has decided against paying out a dividend this year.
Why it’s interesting
Acknowledging that the previous year’s results were a disappointment, the firm said it was now ready to strengthen its capital structure through a placing.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The raising will be structured in two parts, with the initial £60m being placed to CDR at 25p per share.
The second £90m tranche would be offered to a broader range of investors and incorporate a pre-emptive offer, in which CDR would invest up to £25m.
CDR has guaranteed investment of £72.5m at the least, condition of a successful raise of at least £150m.
IKO, SIG’s largest shareholder, said that it was fully supportive of the strategy and equity raise.
What SIG said:
Chief executive Steve Francis said: “Since my appointment as CEO on 25 February, we have been developing a new strategy and organisational model which focuses on people, growth and active industry leadership.
“After nearly a decade of contraction, which has included disposals, rationalisation, debt and cost reduction, it is now time to focus on how to grow SIG.
I firmly believe that our new strategy for growth will provide the basis, not only for the restoration of profit and cash conversion, but also serve as a foundation to play a leading role in our industry in the years to come.


cityam--2020-05-29--Eurozone on brink of deflation as price growth slows to 0.1 per cent

Eurozone inflation dropped to a four-year low of just 0.1 per cent in May , data has shown , as the coronavirus pandemic put the single-currency bloc perilously close to deflationary territory .
In an early estimate , the European Union ’ s statistics body said Eurozone month-on-month inflation was just 0.1 per cent as energy prices plunged .
Read more : Italian and French economies crash in first quarter as coronavirus bites Core inflation , which strops out the volatile categories of energy , food , alcohol and tobacco , was 0.8 per cent in May , Eurostat said @ @ @ @ @ @ @ far below the European Central Bank ’ s ( ECB ) two per cent target .
It will add to expectations that the ECB will ramp up its massive bond-buying programme at its meeting next week .
A survey by Bloomberg found that analysts expect the central bank to increase its bond-buying by €500bn ( £450bn ) on Thursday .
That would take its quantitative easing ( QE ) programme to €1.6 trillion this year .
The Eurozone economy has been decimated by coronavirus .
Lockdowns have caused demand to dry up and @ @ @ @ @ @ @ today ’ s Eurostat figures showed that it was the plunge in energy prices that drove Eurozone inflation down to 0.1 per cent this month .
Energy prices fell by 12 per cent in May compared to a 9.7 per cent drop in April , Eurostat said .
Meanwhile , food , alcohol and tobacco prices grew 3.3 per cent and services prices rose 1.3 per cent .
Belgium , Ireland , Greece , Spain , Italy and Portugal all suffered deflation in May , Eurostat said .
In the more resilient economies @ @ @ @ @ @ @ , prices rose .
Yet Christoph Weil of Commerzbank cautioned that the data was more uncertain than usual .
He said that “ many prices could not be determined locally due to corona restrictions ” .
The ECB meets next week at a key moment in the Eurozone ’ s fight against the economic fallout from coronavirus .
It is likely to shrug off a recent ruling by the German constitutional court , which criticised its bond-buying programme from 2015 , and ramp up its bond purchases further to try to stimulate inflation @

Eurozone on brink of deflation as price growth slows to 0.1 per cent
Eurozone inflation dropped to a four-year low of just 0.1 per cent in May, data has shown, as the coronavirus pandemic put the single-currency bloc perilously close to deflationary territory.
In an early estimate, the European Union’s statistics body said Eurozone month-on-month inflation was just 0.1 per cent as energy prices plunged.
Core inflation, which strops out the volatile categories of energy, food, alcohol and tobacco, was 0.8 per cent in May, Eurostat said.
The 0.1 per cent reading is far below the European Central Bank’s (ECB) two per cent target. It will add to expectations that the ECB will ramp up its massive bond-buying programme at its meeting next week.
A survey by Bloomberg found that analysts expect the central bank to increase its bond-buying by €500bn (£450bn) on Thursday. That would take its quantitative easing (QE) programme to €1.6 trillion this year.
The Eurozone economy has been decimated by coronavirus. Lockdowns have caused demand to dry up and severely disrupted supply chains.
However, today’s Eurostat figures showed that it was the plunge in energy prices that drove Eurozone inflation down to 0.1 per cent this month.
Energy prices drag down Eurozone inflation
Energy prices fell by 12 per cent in May compared to a 9.7 per cent drop in April, Eurostat said. Meanwhile, food, alcohol and tobacco prices grew 3.3 per cent and services prices rose 1.3 per cent.
Belgium, Ireland, Greece, Spain, Italy and Portugal all suffered deflation in May, Eurostat said. In the more resilient economies of Germany, France and the Netherlands, prices rose.
Yet Christoph Weil of Commerzbank cautioned that the data was more uncertain than usual. He said that “many prices could not be determined locally due to corona restrictions”.
The ECB meets next week at a key moment in the Eurozone’s fight against the economic fallout from coronavirus.
It is likely to shrug off a recent ruling by the German constitutional court, which criticised its bond-buying programme from 2015, and ramp up its bond purchases further to try to stimulate inflation.


cityam--2020-05-29--Sunak: Employers to contribute to furlough scheme from August

Chancellor Rishi Sunak this afternoon announced that firms will have to begin contributing towards the government ’ s furlough scheme from August .
Speaking at today ’ s coronavirus press conference , Sunak laid out a raft of changes to the Treasury ’ s job retention programme , the cornerstone of the government ’ s economic response to the crisis .
Read more : Sunak set to tell employers to contribute to furlough scheme payments In August , firms will only be asked to pay pension and national insurance contributions , and then a “ modest ” but increasing proportion @ @ @ @ @ @ @ onwards .
Sunak stressed that workers will still be paid 80 per cent of their wages for as long as they are on the scheme .
He also announced that self-employed workers would be able to claim a second grant worth up to £6,570 .
Sunak said : “ We stood behind Britain ’ s businesses and workers as we came into this crisis and we stand behind them as we come through the other side .
“ Now , as we begin to re-open our country and kickstart our economy , these @ @ @ @ @ @ @ are able to work can do so , while remaining amongst the most generous in the world ” .
Under the new rules , firms will be able to bring back employees part-time from 1 July , and will be responsible for paying them for the hours they work .
The “ flexible furlough ” is being introduced a month earlier than expected , Sunak said .
In order to do so , firms will no longer be able to place employees on the scheme from 30 June .
Read more : UK @ @ @ @ @ @ @ furlough scheme winds down Any firm which still wishes to place staff on furlough must do so by 10 June so they fulfil the requisite three week period .
From August , he said the government will continue to pay 80 per cent of worker ’ s salaries up to £2,500 , but employees will have to pay national insurance and pension costs .
A month later , in September , the scheme will be tapered to cover 70 per cent of salaries up to £2,190 , with companies asked to pay the @ @ @ @ @ @ @ up to £2,500 .
In October , this will be extended further , with employers expected to pay 20 per cent of wages and the government covering 60 per cent – £1,875 – of the £2,500 package .
Any employees who believe they are not getting their 80 per cent share should contact HMRC ’ s fraud hotline , he added .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
He also confirmed that the scheme would end as previously @ @ @ @ @ @ @ , or about one in three private sector employees , are currently covered .
The cost to the public finances so far is £15bn .
The Institute for Fiscal Studies said the total cost of the two schemes could now surpass £100bn , but Sunak said it was hard to be sure due to the nature of the flexible furlough scheme .
It had been reported that companies would be expected to pay up to 30 per cent of wages .
The announcement met with enthusiasm from business groups , who said the @ @ @ @ @ @ @ they need to plan for the coming months ” .
Mike Cherry , chairman of the Federation of Small Businesses , said : “ The Chancellor has today given thousands of small business owners the certainty they need to plan for the coming months .
“ We ’ ve always said that extending the JRS and making it more flexible would be key to getting the economy back on its feet ” .
Edwin Morgan of the Institute of Directors said that he was “ delighted the Treasury has taken on board our @ @ @ @ @ @ @ furloughing as soon as possible , and to reduce the minimum furlough period ” .
Adam Marshall , director general of the British Chambers of Commerce , said Sunak had “ listened to firms and struck a careful balance ” which would enable them to bring employees back to work .
“ The gradual reduction in furlough contributions from the Treasury will give businesses additional time to rebuild their income streams and cash flows , and the decision to give businesses maximum flexibility to bring people back part-time will be appreciated ” , @ @ @ @ @ @ @ extension of the self-employment support scheme , which has already received 2.3m claims worth £6.8bn .
Read more : Recruitment boss warns of ‘ tsunami of job losses ’ once furlough scheme ends He said : “ The extension of support for the self-employed will come as welcome relief for those who have seen their livelihoods impacted by the virus .
“ It is right that this group continues to receive similar levels of support to those on PAYE .
”

Sunak: Employers to contribute to furlough scheme from August
Chancellor Rishi Sunak said in the March Budget that the scheme would be extended until 30 September of this year
Chancellor Rishi Sunak this afternoon announced that firms will have to begin contributing towards the government’s furlough scheme from August.
Speaking at today’s coronavirus press conference, Sunak laid out a raft of changes to the Treasury’s job retention programme, the cornerstone of the government’s economic response to the crisis.
In August, firms will only be asked to pay pension and national insurance contributions, and then a “modest” but increasing proportion of worker’s salaries from September onwards.
Sunak stressed that workers will still be paid 80 per cent of their wages for as long as they are on the scheme.
He also announced that self-employed workers would be able to claim a second grant worth up to £6,570.
Sunak said: “We stood behind Britain’s businesses and workers as we came into this crisis and we stand behind them as we come through the other side.
“Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world”.
Under the new rules, firms will be able to bring back employees part-time from 1 July, and will be responsible for paying them for the hours they work.
The “flexible furlough” is being introduced a month earlier than expected, Sunak said.
In order to do so, firms will no longer be able to place employees on the scheme from 30 June.
Any firm which still wishes to place staff on furlough must do so by 10 June so they fulfil the requisite three week period.
From August, he said the government will continue to pay 80 per cent of worker’s salaries up to £2,500, but employees will have to pay national insurance and pension costs.
A month later, in September, the scheme will be tapered to cover 70 per cent of salaries up to £2,190, with companies asked to pay the remaining 10 per cent to take it up to £2,500.
In October, this will be extended further, with employers expected to pay 20 per cent of wages and the government covering 60 per cent – £1,875 – of the £2,500 package.
Any employees who believe they are not getting their 80 per cent share should contact HMRC’s fraud hotline, he added.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
He also confirmed that the scheme would end as previously announced in October.
Around 8.4m workers, or about one in three private sector employees, are currently covered. The cost to the public finances so far is £15bn.
The Institute for Fiscal Studies said the total cost of the two schemes could now surpass £100bn, but Sunak said it was hard to be sure due to the nature of the flexible furlough scheme.
It had been reported that companies would be expected to pay up to 30 per cent of wages.
Business groups: Plan give firms “certainty they need”
The announcement met with enthusiasm from business groups, who said the measures would give companies “the certainty they need to plan for the coming months”.
Mike Cherry, chairman of the Federation of Small Businesses, said: “The Chancellor has today given thousands of small business owners the certainty they need to plan for the coming months.
“We’ve always said that extending the JRS and making it more flexible would be key to getting the economy back on its feet”.
Edwin Morgan of the Institute of Directors said that he was “delighted the Treasury has taken on board our members’ calls to bring in part-time furloughing as soon as possible, and to reduce the minimum furlough period”.
Adam Marshall, director general of the British Chambers of Commerce, said Sunak had “listened to firms and struck a careful balance” which would enable them to bring employees back to work.
“The gradual reduction in furlough contributions from the Treasury will give businesses additional time to rebuild their income streams and cash flows, and the decision to give businesses maximum flexibility to bring people back part-time will be appreciated”, he added.
Marshall also hailed the extension of the self-employment support scheme, which has already received 2.3m claims worth £6.8bn.
He said: “The extension of support for the self-employed will come as welcome relief for those who have seen their livelihoods impacted by the virus.
“It is right that this group continues to receive similar levels of support to those on PAYE.”


cityam--2020-05-29--Coronavirus deaths rise by 324 to reach 38,161

An additional 324 people have died from coronavirus in the UK , chancellor Rishi Sunak said this afternoon , taking the total death toll to 38,161 .
In total , 131,458 tests were carried out yesterday , and 2,095 people tested positive .
Read more : UK coronavirus death toll rises by 377 to 37,837 Yesterday 377 more deaths were reported , which was down from 412 the day before .
The figures represent a rise from the number of deaths recorded over the Bank Holiday weekend , which were among the lowest reported during the crisis .
Including deaths @ @ @ @ @ @ @ UK ’ s death toll from the disease is over 48,000 .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
The new figures come after Prime Minister Boris Johnson announced that people could meet in groups of up to six outside from Monday .
However , Johnson ’ s spokesman confirmed that despite the loosening of the measures , the alert level for the virus remained at four .
According to the government ’ s scale , that means the @ @ @ @ @ @ @ .
Read more : Coronavirus deaths jump to 412 after bank holiday weekend lag Johnson had been expected to lower the level from four to three yesterday , but did not mention it .
On Wednesday during the House of Commons Liaison Committee , before the lockdown-easing announcement , the prime minister instructed MPs : “ We ’ re coming down from level 4 to level 3 we hope , we ’ re taking a decision tomorrow .
”

Coronavirus deaths rise by 324 to reach 38,161
An additional 324 people have died from coronavirus in the UK, chancellor Rishi Sunak said this afternoon, taking the total death toll to 38,161.
In total, 131,458 tests were carried out yesterday, and 2,095 people tested positive.
Yesterday 377 more deaths were reported, which was down from 412 the day before.
The figures represent a rise from the number of deaths recorded over the Bank Holiday weekend, which were among the lowest reported during the crisis.
Including deaths from suspected cases of Covid-19, the UK’s death toll from the disease is over 48,000.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The new figures come after Prime Minister Boris Johnson announced that people could meet in groups of up to six outside from Monday.
However, Johnson’s spokesman confirmed that despite the loosening of the measures, the alert level for the virus remained at four.
According to the government’s scale, that means the likelihood of transmitting the virus remains high.
Johnson had been expected to lower the level from four to three yesterday, but did not mention it.
On Wednesday during the House of Commons Liaison Committee, before the lockdown-easing announcement, the prime minister instructed MPs: “We’re coming down from level 4 to level 3 we hope, we’re taking a decision tomorrow.”


cityam--2020-05-29--FTSE 100 tumbles as US-China tensions rise over Hong Kong

The FTSE 100 tumbled in afternoon trading to close 2.5 per cent lower lower as a spike in tensions between the US and China shook investors .
London ’ s main stock index closed at 6,061 points .
It nonetheless finished higher for the week , with many analysts saying investors were profit-taking today .
Read more : Italian and French economies crash in first quarter as coronavirus bites US stocks also fell , although their decline was less pronounced , having dropped on US-China tensions yesterday .
The S & P 500 index was 0.4 per cent lower in @ @ @ @ @ @ @ down 0.7 per cent .
Investors also sold shares on the continent , with the pan-European Stoxx 600 down 1.5 per cent .
Germany ’ s Dax was 1.6 per cent lower .
Investors were jittery after Trump announced he would hold a press conference about China later today .
It followed the decision by China ’ s parliament to approve the security law for Hong Kong which many fear that it could lead to the end of the autonomous city ’ s special status .
Trump could announce economic measures to try @ @ @ @ @ @ @ to derail the global economic recovery from coronavirus .
“ Animosity between the two governments has been growing lately as the US are not happy with the way the Beijing administration is treating minority communities , ” said David Madden , market analyst at trading platform CMC Markets .
Internationally focused firms dropped sharply on the FTSE 100 .
Rolls Royce ended 15 per cent lower after a bruising day .
Joshua Mahony , senior market analyst at trading platform IG , said : “ Rolls-Royce has come under significant selling pressure this @ @ @ @ @ @ @ the stock was “ hit by a double-whammy of a substantial hedge fund sale and S & P [ credit rating ] downgrade to ‘ junk ’ ” .
Airline operators Easyjet and IAG both shed more than six per cent of their value .
Investors appeared to second-guess the recent recovery in the industry ’ s stocks .
“ While the aviation sector may pick up amid a rise in holiday bookings , the possibility of new airplane orders appears to be a step too far for now , ” Mahony said @ @ @ @ @ @ @ at IG , said that Trump ’ s afternoon tweet , which just read “ CHINA !
” spooked markets .
Read more : Twitter flags Trump tweet for ‘ glorifying violence ’ as row escalates “ Market action this afternoon seems to have pivoted off a single-word tweet from the US president , ” he said .
“ Given the president ’ s record we can probably guess that it is not likely to be a particularly positive statement.
” In the US , investors were nervous ahead of Trump ’ s @ @ @ @ @ @ @ 100 , many of the hardest-hit Wall Street shares were industry-focused companies that could suffer from another freeze in relations with China .
On the Dow Jones , Boeing dropped more than three per cent .
Aerospace conglomerate Raytheon Technologies and Caterpillar were among the biggest fallers .
“ If Trump decides to proceed with mild action , like travel and/or financial sanctions on Chinese officials , we don ’ t expect equities to tumble much , ” said Charalambos Pissouros , senior market analyst at JFD Group .
“ In case the @ @ @ @ @ @ @ one , like scrapping the ‘ phase one ’ trade deal and/or imposing fresh tariffs , the slide in risk assets could be larger.
” Read more : Italian and French economies crash in first quarter as coronavirus bites Madden said : “ Some dealers are sitting on their hands as they are afraid the Donald might go on a tirade against the Chinese government.
” “ All things considered , the indices are holding up alright , but the absence of buying is notable , seeing as US markets were powering ahead @ @ @ @ @ @ @ lower , with the US benchmark price down 0.2 per cent to $ 33.60 per barrel .
Brent crude was 0.9 per cent lower at $ 35 .
Craig Erlam , market analyst at currency platform Oanda , said : “ The oil price recovery has well and truly stalled , with WTI and Brent off a few percent today.
” It came after data showed another large inventory build on Wednesday .
“ It ’ s been some recovery for crude prices so a period of profit taking can only be healthy @ @ @ @ @ @ @ economies gradually reopening , there ’ s plenty more time for upside , assuming it all goes to plan of course.
” Government bond prices rose , signalling that investors were buying up safe assets as they sold equities .
Read more : Profit nearly halves at Nationwide as it books expected coronavirus losses Despite today ’ s falls , stock markets will end the week higher than where they started .
Investors have been cheered by countries ’ moves to lift coronavirus lockdowns .
Mahony said that “ fears over the impending @ @ @ @ @ @ @ Kong [ are ] driving traders to bank their profits ahead of the weekend ” today .

FTSE 100 tumbles as US-China tensions rise over Hong Kong
Workers are starting to trickle back in to the City of London, but investors remain jittery
The FTSE 100 tumbled in afternoon trading to close 2.5 per cent lower lower as a spike in tensions between the US and China shook investors.
London’s main stock index closed at 6,061 points. It nonetheless finished higher for the week, with many analysts saying investors were profit-taking today.
US stocks also fell, although their decline was less pronounced, having dropped on US-China tensions yesterday. The S&P 500 index was 0.4 per cent lower in morning trading. The Dow Jones was down 0.7 per cent.
Investors also sold shares on the continent, with the pan-European Stoxx 600 down 1.5 per cent. Germany’s Dax was 1.6 per cent lower.
Investors were jittery after Trump announced he would hold a press conference about China later today.
It followed the decision by China’s parliament to approve the security law for Hong Kong which many fear that it could lead to the end of the autonomous city’s special status.
Trump could announce economic measures to try to punish China. That could threaten to derail the global economic recovery from coronavirus.
“Animosity between the two governments has been growing lately as the US are not happy with the way the Beijing administration is treating minority communities,” said David Madden, market analyst at trading platform CMC Markets.
Travel-linked firms drag down FTSE 100
Internationally focused firms dropped sharply on the FTSE 100. Rolls Royce ended 15 per cent lower after a bruising day. Joshua Mahony, senior market analyst at trading platform IG, said: “Rolls-Royce has come under significant selling pressure this morning.”
He said this was because the stock was “hit by a double-whammy of a substantial hedge fund sale and S&P [credit rating] downgrade to ‘junk’”.
Airline operators Easyjet and IAG both shed more than six per cent of their value. Investors appeared to second-guess the recent recovery in the industry’s stocks.
“While the aviation sector may pick up amid a rise in holiday bookings, the possibility of new airplane orders appears to be a step too far for now,” Mahony said.
Chris Beauchamp, senior market analyst at IG, said that Trump’s afternoon tweet, which just read “CHINA!” spooked markets.
“Market action this afternoon seems to have pivoted off a single-word tweet from the US president,” he said.
“Given the president’s record we can probably guess that it is not likely to be a particularly positive statement.”
Markets end strong week on a low
In the US, investors were nervous ahead of Trump’s press conference. As on the FTSE 100, many of the hardest-hit Wall Street shares were industry-focused companies that could suffer from another freeze in relations with China.
On the Dow Jones, Boeing dropped more than three per cent. Aerospace conglomerate Raytheon Technologies and Caterpillar were among the biggest fallers.
“If Trump decides to proceed with mild action, like travel and/or financial sanctions on Chinese officials, we don’t expect equities to tumble much,” said Charalambos Pissouros, senior market analyst at JFD Group.
“In case the US’s response is a bolder one, like scrapping the ‘phase one’ trade deal and/or imposing fresh tariffs, the slide in risk assets could be larger.”
Madden said: “Some dealers are sitting on their hands as they are afraid the Donald might go on a tirade against the Chinese government.”
“All things considered, the indices are holding up alright, but the absence of buying is notable, seeing as US markets were powering ahead earlier this week.”
Oil rally runs out of steam
Oil prices were lower, with the US benchmark price down 0.2 per cent to $33.60 per barrel. Brent crude was 0.9 per cent lower at $35.
Craig Erlam, market analyst at currency platform Oanda, said: “The oil price recovery has well and truly stalled, with WTI and Brent off a few percent today.” It came after data showed another large inventory build on Wednesday.
“It’s been some recovery for crude prices so a period of profit taking can only be healthy,” Erlam said. “With economies gradually reopening, there’s plenty more time for upside, assuming it all goes to plan of course.”
Government bond prices rose, signalling that investors were buying up safe assets as they sold equities.
Despite today’s falls, stock markets will end the week higher than where they started. Investors have been cheered by countries’ moves to lift coronavirus lockdowns.
Mahony said that “fears over the impending US reaction to Chinese actions in Hong Kong [are] driving traders to bank their profits ahead of the weekend” today.


cityam--2020-05-29--'The trouble with dreams is you wake up' - DWF hammered after CEO exit

The magnitude of the ousting of listed law firm DWF ’ s chief executive Andrew Leaitherland today for the future of the business can not be overstated .
Leaitherland was no technocratic leader or managerial gun for hire .
It was his vision and drive that took the firm from its humble northwestern roots to make history as the first law firm to list on the main market of the London Stock Exchange just 18 months ago .
Read more : Hell for Leaither : DWF boss on the firm ’ s post-float fortunes One managing partner of a top @ @ @ @ @ @ @ am massively surprised , he has been the driving force behind the whole of the DWF story , he has done a brilliant job without a lot of assets , he is a great salesman and brand ambassador and he rescued the firm from a massive pile of debt by getting that float away.
” However , despite the spectacular growth of DWF , there has always been a high degree of cynicism in the legal market about whether the firm ’ s trajectory was sustainable .
“ No surprise that the chickens @ @ @ @ @ @ @ ’ s always been a view that there has been a lot of smoke and mirrors behind that business , ” the managing partner adds .
“ It ’ s always been seen as the Andrew Leaitherland show , so without him it is hard to see what success looks like , ” they say .
Leaitherland has been replaced with immediate effect by DWF ’ s chair Sir Nigel Knowles – one of the best-known lawyers in the British corporate legal world .
Knowles built DLA Piper from a little-known Sheffield firm @ @ @ @ @ @ @ in the world before being appointed to chair DWF in 2017 .
Read more : Three lessons law firms can learn from rivals ’ collapses amid coronavirus “ Nigel Knowles is a very clever and able man with a much better track record of running a business than I have , ” the managing partner says , “ this time next year it may end up in a better place.
” However , the managing partner of another rival firm says : ” He ’ s not the answer either .
“ The @ @ @ @ @ @ @ their first initial and that ’ s where it ends .
DLA are an absolute international powerhouse , DWF are not.
” How did DWF reach this position ?
At the time of DWF ’ s float the received wisdom in the legal market was that the initial public offering ( IPO ) was a way to pay down some of its debt and keep its lenders onside – something that the firm consistently denied .
That the float got away was a testament to Leaitherland ’ s abilities , but it was @ @ @ @ @ @ @ s debt pile looked alarming and its scramble to arrange a further £15m revolving credit facility when the coronavirus crisis hit spooked investors and sent its share price tumbling from 140p to just under 80p this week .
Today ’ s news has further hammered the share price , wiping 18 per cent off the firm ’ s value and sending shares down to 66p .
DWF ’ s growth strategy looked optimistic , with a bet that speedy international expansion would translate into revenue and profit from its new overseas operations .
@ @ @ @ @ @ @ The firm said today that it has “ taken swift action to reduce some of the partner and new hire investment to ensure a focus on margin optimisation ” in its international business .
A DWF spokesperson said the firm ’ s current strategy was to “ focus on the significant opportunity to deliver attractive returns for our shareholders by consolidating the growth achieved to date and building an even stronger global platform centred around DWF ’ s Complex , Managed and Connected delivery model.
” DWF did not react to the coronavirus @ @ @ @ @ @ @ staff , cutting pay or making job cuts .
In contrast , most other large law firms were quick to implement a range of those measures to conserve cash in the business .
DWF today said the cost reduction measures it has put in place should lead to £10m of savings in 2021 and £13.5m of savings in 2022 .
However , it hinted at further actions in its statement , with its underperforming corporate group highlighted as one area of focus .
One market source suggested DWF may look at a rights @ @ @ @ @ @ @ that would further dilute the shareholdings of partners in the business .
A DWF spokesperson declined to comment on whether job or pay cuts or a rights issue were being considered .
One key to DWF ’ s future is keeping its partners onside and in the business .
Law firm floats involve partners giving up a share of the profits of the business to outside investors in return for shares which should provide capital growth and dividends .
However , with the share price in the gutter , that now looks like @ @ @ @ @ @ @ worry is probably the flight risk of the partners , ” the second managing partner says .
“ The partners will be really spooked by this.
” Partners ’ IPO shares are locked-in for five years , with the first tranche released when the firm publishes its full-year results and the remaining 80 per cent released over the following four years in equal tranches of 20 per cent .
A partner at a rival firm says partners may weigh up the potential rewards on offer elsewhere as shares that are plunging in value @ @ @ @ @ @ @ ’ t put their kids through school or get them the bigger house that they have aspirations for ” .
The dream is over Leaitherland ’ s vision of DWF as the world ’ s next international legal powerhouse is surely at an end .
The next challenge will be digging the business out of its current hole and keeping partners and lenders sweet .
One broker says Knowles may be able to offer solutions that Leaitherland was not prepared to as the business is not “ his baby ” .
“ It @ @ @ @ @ @ @ as mergers where DWF would not end up on top , ” they say .
Leaitherland rolled the dice on a float and that gamble has backfired spectacularly .
The second managing partner says : “ Andrew may say he was unlucky , caught out by a once in a hundred year event , but the debt is utterly unsustainable , the moment you get a blip you can ’ t satisfy the investors .
“ The trouble with dreams is you wake up .
”

‘The trouble with dreams is you wake up’ – DWF hammered after CEO exit
The magnitude of the ousting of listed law firm DWF’s chief executive Andrew Leaitherland today for the future of the business cannot be overstated.
Leaitherland was no technocratic leader or managerial gun for hire. It was his vision and drive that took the firm from its humble northwestern roots to make history as the first law firm to list on the main market of the London Stock Exchange just 18 months ago.
One managing partner of a top 20 law firm said: “I am massively surprised, he has been the driving force behind the whole of the DWF story, he has done a brilliant job without a lot of assets, he is a great salesman and brand ambassador and he rescued the firm from a massive pile of debt by getting that float away.”
However, despite the spectacular growth of DWF, there has always been a high degree of cynicism in the legal market about whether the firm’s trajectory was sustainable.
“No surprise that the chickens would come home to roost, there’s always been a view that there has been a lot of smoke and mirrors behind that business,” the managing partner adds.
“It’s always been seen as the Andrew Leaitherland show, so without him it is hard to see what success looks like,” they say.
Arise Sir Nigel Knowles
Leaitherland has been replaced with immediate effect by DWF’s chair Sir Nigel Knowles – one of the best-known lawyers in the British corporate legal world.
Knowles built DLA Piper from a little-known Sheffield firm to one of the largest legal businesses in the world before being appointed to chair DWF in 2017.
“Nigel Knowles is a very clever and able man with a much better track record of running a business than I have,” the managing partner says, “this time next year it may end up in a better place.”
However, the managing partner of another rival firm says: ”He’s not the answer either.
“The only similarity between DWF and DLA is their first initial and that’s where it ends. DLA are an absolute international powerhouse, DWF are not.”
How did DWF reach this position?
At the time of DWF’s float the received wisdom in the legal market was that the initial public offering (IPO) was a way to pay down some of its debt and keep its lenders onside – something that the firm consistently denied.
That the float got away was a testament to Leaitherland’s abilities, but it was always a gamble.
The firm’s debt pile looked alarming and its scramble to arrange a further £15m revolving credit facility when the coronavirus crisis hit spooked investors and sent its share price tumbling from 140p to just under 80p this week.
Today’s news has further hammered the share price, wiping 18 per cent off the firm’s value and sending shares down to 66p.
DWF’s growth strategy looked optimistic, with a bet that speedy international expansion would translate into revenue and profit from its new overseas operations.
That approach is now in tatters. The firm said today that it has “taken swift action to reduce some of the partner and new hire investment to ensure a focus on margin optimisation” in its international business.
A DWF spokesperson said the firm’s current strategy was to “focus on the significant opportunity to deliver attractive returns for our shareholders by consolidating the growth achieved to date and building an even stronger global platform centred around DWF’s Complex, Managed and Connected delivery model.”
What’s next for DWF?
DWF did not react to the coronavirus crisis by cutting partner drawings, furloughing staff, cutting pay or making job cuts.
In contrast, most other large law firms were quick to implement a range of those measures to conserve cash in the business.
DWF today said the cost reduction measures it has put in place should lead to £10m of savings in 2021 and £13.5m of savings in 2022.
However, it hinted at further actions in its statement, with its underperforming corporate group highlighted as one area of focus.
One market source suggested DWF may look at a rights issue to raise further cash, something that would further dilute the shareholdings of partners in the business.
A DWF spokesperson declined to comment on whether job or pay cuts or a rights issue were being considered.
Will partners stay onside?
One key to DWF’s future is keeping its partners onside and in the business.
Law firm floats involve partners giving up a share of the profits of the business to outside investors in return for shares which should provide capital growth and dividends.
However, with the share price in the gutter, that now looks like a bad deal.
“Their biggest worry is probably the flight risk of the partners,” the second managing partner says. “The partners will be really spooked by this.”
Partners’ IPO shares are locked-in for five years, with the first tranche released when the firm publishes its full-year results and the remaining 80 per cent released over the following four years in equal tranches of 20 per cent.
A partner at a rival firm says partners may weigh up the potential rewards on offer elsewhere as shares that are plunging in value and not paying a dividend “won’t put their kids through school or get them the bigger house that they have aspirations for”.
The dream is over
Leaitherland’s vision of DWF as the world’s next international legal powerhouse is surely at an end.
The next challenge will be digging the business out of its current hole and keeping partners and lenders sweet.
One broker says Knowles may be able to offer solutions that Leaitherland was not prepared to as the business is not “his baby”.
“It allows DWF to look at strategies such as mergers where DWF would not end up on top,” they say.
Leaitherland rolled the dice on a float and that gamble has backfired spectacularly.
The second managing partner says: “Andrew may say he was unlucky, caught out by a once in a hundred year event, but the debt is utterly unsustainable, the moment you get a blip you can’t satisfy the investors.
“The trouble with dreams is you wake up.”


cityam--2020-05-29--Cruise firm Carnival set for the drop in FTSE 100 reshuffle

Cruise operator Carnival is set to drop out of the FTSE 100 stock index next week when Britain ’ s league of the biggest companies is reshuffled , having been battered by the coronavirus crisis .
Analysts tip airline Easyjet to also drop out in the FTSE reshuffle .
British Gas-owner Centrica is also likely to be replaced as one of the UK ’ s 100 biggest firms by market capitalisation .
Read more : FTSE reshuffle : Kingfisher , NMC Health and Tui booted out of top City index Software security firm Avast and Ladbrokes owner GVC are tipped @ @ @ @ @ @ @ relatively well during the Covid crisis .
UK stocks have had one of their most turbulent periods in history since the last FTSE reshuffle three months ago .
The FTSE 100 index plunged around 25 per cent in late February and early March as it became clear to investors that coronavirus posed a near-catastrophic economic threat .
Despite the stock market rallying strongly since late March , many stocks have struggled to recover .
Among the worst-affected companies have been travel and energy firms , with the lockdown causing a drastic slump in @ @ @ @ @ @ @ analyst at online trading platform The Share Centre said Carnival , Easyjet , Centrica and aerospace engineering group Meggit are almost certain to go down in the FTSE 100 reshuffle .
It will take place on 3 June using the market capitalisations of 28 May .
FTSE Russell , a company owned by the London Stock Exchange , reassesses the FTSE 100 every quarter to ensure it includes the biggest firms by market cap .
In early March , retail group Kingfisher , NMC Health and shopping centre-owner Tui were all kicked out @ @ @ @ @ @ @ Equity Analyst at Hargreaves Lansdown : “ The world has changed since the last FTSE review.
” “ The UK stock market was some 13.5 per cent higher back then and Shell topped the list of the UK ’ s largest companies rather than Astrazeneca.
” “ It looks like easyJet and cruise operator Carnival are among the companies set to drop out of the FTSE 100 this time round .
Travel restrictions around the world mean revenues have sunk to practically zero.
” Read more : FTSE 100 drops sharply as US-China @ @ @ @ @ @ @ ITV and publisher Pearson could also drop out of the FTSE 100 along with Carnival , Easyjet and Centrica .
He said Avast , GVC , and home energy firm Homeserve are the most likely to be promoted .
The Share Centre also said Kingfisher , medical products firm Convatec and airline Wizzair could join the FTSE 100 .

Cruise firm Carnival set for the drop in FTSE 100 reshuffle
Cruise firm Carnival has been hit hard by global coronavirus lockdowns
Cruise operator Carnival is set to drop out of the FTSE 100 stock index next week when Britain’s league of the biggest companies is reshuffled, having been battered by the coronavirus crisis.
Analysts tip airline Easyjet to also drop out in the FTSE reshuffle. British Gas-owner Centrica is also likely to be replaced as one of the UK’s 100 biggest firms by market capitalisation.
Software security firm Avast and Ladbrokes owner GVC are tipped to enter the FTSE 100 after faring relatively well during the Covid crisis.
UK stocks have had one of their most turbulent periods in history since the last FTSE reshuffle three months ago.
The FTSE 100 index plunged around 25 per cent in late February and early March as it became clear to investors that coronavirus posed a near-catastrophic economic threat.
Despite the stock market rallying strongly since late March, many stocks have struggled to recover. Among the worst-affected companies have been travel and energy firms, with the lockdown causing a drastic slump in demand.
Helal Miah, investment research analyst at online trading platform The Share Centre said Carnival, Easyjet, Centrica and aerospace engineering group Meggit are almost certain to go down in the FTSE 100 reshuffle. It will take place on 3 June using the market capitalisations of 28 May.
FTSE Russell, a company owned by the London Stock Exchange, reassesses the FTSE 100 every quarter to ensure it includes the biggest firms by market cap.
In early March, retail group Kingfisher, NMC Health and shopping centre-owner Tui were all kicked out of the index.
Travel restrictions hurt FTSE 100 firms
Nicholas Hyett, Equity Analyst at Hargreaves Lansdown: “The world has changed since the last FTSE review.”
“The UK stock market was some 13.5 per cent higher back then and Shell topped the list of the UK’s largest companies rather than Astrazeneca.”
“It looks like easyJet and cruise operator Carnival are among the companies set to drop out of the FTSE 100 this time round. Travel restrictions around the world mean revenues have sunk to practically zero.”
Miah said ITV and publisher Pearson could also drop out of the FTSE 100 along with Carnival, Easyjet and Centrica.
He said Avast, GVC, and home energy firm Homeserve are the most likely to be promoted. The Share Centre also said Kingfisher, medical products firm Convatec and airline Wizzair could join the FTSE 100.


cityam--2020-05-29--Camden Market to operate one-way system as it prepares for June reopening

The owner of Camden Market today outlined plans for a phased reopening of the north London shopping hotspot from 1 June .
Landlord Labtech said the venue will reopen on Monday in line with the government ’ s plans to ease the coronavirus lockdowns for open-air markets and car dealerships .
Read more : Boris Johnson sets out plans for shops and markets to reopen The canal-hugging tourist trap will implement a one-way will enforce a strict one-way system across the market , while floor markets will indicate social distancing requirements .
Labtech said hand sanitiser stations will be positioned @ @ @ @ @ @ @ be required to comply with government guidelines such as only accepting card payments .
Camden Market , which will be among the first London landmarks to reopen following two months of lockdown , said it expected 80 per cent of its food and beverage stalls to be up and running again next week .
Retail outlets in the market will reopen from 15 June in line with government plans for non-essential retailers .
“ Our comprehensive range of measures has been devised to ensure we can achieve these objectives and we will continue @ @ @ @ @ @ @ unprecedented times as we move out of lockdown , ” said Labtech chief executive Yaron Shahar .
“ The market has thrived for 45 years and we are confident it will continue to be the heart of north London for many years to come.
” Read more : Camden takes tech crown as it leads UK for new business creation Camden Market will launch a series of free events for the public at a “ socially acceptable distance ” as part of its so-called socially distanced summer campaign .
Labtech said it will @ @ @ @ @ @ @ Buck Street Market site in the coming weeks .

Camden Market to operate one-way system as it prepares for June reopening
Camden residents saw their property rise 13.4 per cent to reach an average of £1,121,609, house prices in Kensington and Chelsea fell by 1.8 per cent; although west London enclave is still London’s most expensive place to buy with the average property valued at £1,672,224.
The owner of Camden Market today outlined plans for a phased reopening of the north London shopping hotspot from 1 June.
Landlord Labtech said the venue will reopen on Monday in line with the government’s plans to ease the coronavirus lockdowns for open-air markets and car dealerships.
The canal-hugging tourist trap will implement a one-way will enforce a strict one-way system across the market, while floor markets will indicate social distancing requirements.
Labtech said hand sanitiser stations will be positioned throughout the site, while traders will be required to comply with government guidelines such as only accepting card payments.
Camden Market, which will be among the first London landmarks to reopen following two months of lockdown, said it expected 80 per cent of its food and beverage stalls to be up and running again next week.
Retail outlets in the market will reopen from 15 June in line with government plans for non-essential retailers.
“Our comprehensive range of measures has been devised to ensure we can achieve these objectives and we will continue to support our local businesses through these unprecedented times as we move out of lockdown,” said Labtech chief executive Yaron Shahar.
“The market has thrived for 45 years and we are confident it will continue to be the heart of north London for many years to come.”
Camden Market will launch a series of free events for the public at a “socially acceptable distance” as part of its so-called socially distanced summer campaign.
Labtech said it will also start a phased reopening of its Buck Street Market site in the coming weeks.
Main image credit: Camden Market


cityam--2020-05-29--UK urges China to reconsider Hong Kong security law

The UK has urged Chinese authorities to reconsider the implementation of a new security law on the city of Hong Kong , Boris Johnson ’ s spokesman said today .
“ We have urged China to reconsider the implementation of this law and live up to its responsibilities as a leading member of the international community , ” Number 10 said .
Read more : Raab : UK will increase visa rights if China goes ahead with Hong Kong law “ We hope they will listen carefully to the arguments we have made in public and in private about the @ @ @ @ @ @ @ have on Hong Kong.
” The move comes after the UK yesterday issued a joint statement with the US , Australia and Canada saying that the new Chinese legislation would “ dramatically erode Hong Kong ’ s autonomy ” .
Earlier today a spokesman for the Chinese foreign ministry said that Beijing firmly opposed the statement and had lodged representations with the countries .
US president Donald Trump is expected to give a press conference on the issue later today .
On Wednesday secretary of state Mike Pompeo confirmed that Hong Kong could @ @ @ @ @ @ @ from the mainland , raising fears that the city-state ’ s privileged economic status could be under threat .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
The UK also laid out further details of its plans to extend visa rights to British nationals overseas ( BNOs ) living in Hong Kong should China follow through with the law .
Yesterday , Dominic Raab confirmed that the government would look at means to enable BNOs from Hong Kong to come @ @ @ @ @ @ @ year without needing a visa .
Raab said that the step would “ itself provide a path to citizenship ” for such people .
A statement from the Home Office this afternoon appeared to clarify that the new visa rights would apply to all BNOs in Hong Kong , not just those with passports .
There are currently 2.9m BNOs living in the former overseas territory , around 350,000 of which hold British passports .
The statement read : “ Today the UK Government announced that if China follows through with its new @ @ @ @ @ @ @ will explore options to allow BNOs to apply for leave to stay in the UK , if eligible , for an extendable period of 12 months ” .
Hong Kong BNOs currently have the right to enter the UK for six months .

UK urges China to reconsider Hong Kong security law
The UK has urged Chinese authorities to reconsider the implementation of a new security law on the city of Hong Kong, Boris Johnson’s spokesman said today.
“We have urged China to reconsider the implementation of this law and live up to its responsibilities as a leading member of the international community,” Number 10 said.
“We hope they will listen carefully to the arguments we have made in public and in private about the impact which Beijing’s proposal would have on Hong Kong.”
The move comes after the UK yesterday issued a joint statement with the US, Australia and Canada saying that the new Chinese legislation would “dramatically erode Hong Kong’s autonomy”.
Earlier today a spokesman for the Chinese foreign ministry said that Beijing firmly opposed the statement and had lodged representations with the countries.
US president Donald Trump is expected to give a press conference on the issue later today.
On Wednesday secretary of state Mike Pompeo confirmed that Hong Kong could no longer be considered “autonomous” from the mainland, raising fears that the city-state’s privileged economic status could be under threat.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
The UK also laid out further details of its plans to extend visa rights to British nationals overseas (BNOs) living in Hong Kong should China follow through with the law.
Yesterday, Dominic Raab confirmed that the government would look at means to enable BNOs from Hong Kong to come to the UK for up to a year without needing a visa.
Raab said that the step would “itself provide a path to citizenship” for such people.
A statement from the Home Office this afternoon appeared to clarify that the new visa rights would apply to all BNOs in Hong Kong, not just those with passports.
There are currently 2.9m BNOs living in the former overseas territory, around 350,000 of which hold British passports.
The statement read: “Today the UK Government announced that if China follows through with its new national security law, the UK government will explore options to allow BNOs to apply for leave to stay in the UK, if eligible, for an extendable period of 12 months”.
Hong Kong BNOs currently have the right to enter the UK for six months.


cityam--2020-05-29--Softbank Vision Fund boss doubles pay despite hefty loss

Softbank has more than doubled the pay of its Vision Fund boss Rajeev Misra even as the mammoth tech fund dragged the Japanese company to a record loss last year .
Misra pocketed 1.6bn yen ( £12m ) in total compensation for the year to March , more than twice as much as he earned in the previous 12 months .
Read more : Alibaba ’ s Jack Ma steps down from Softbank board The Vision Fund head ’ s pay was second only to that of Softbank ’ s chief operating officer Marcelo Claure , which rose 17 per @ @ @ @ @ @ @ group chief executive Masayoshi Son ’ s pay packet was reduced nine per cent to 209m yen .
The pay bump for Misra comes in spite of $ 18m losses at the Vision Fund last year , which helped push Softbank to a 1.4 trillion yen operating loss .
While the $ 100m tech fund initially enjoyed vast success , it has seen its bets in firms such as Wework and Uber sour over recent months .
Softbank has since taken control of Wework after the co-working firm almost ran out of cash @ @ @ @ @ @ @ .
Softbank vice chairman Ron Fisher , who played a key role in the disastrous Wework investment , had his pay slashed 80 per cent last year .
He had previously been the company ’ s highest paid executive .
The Softbank filing , posted today , also highlighted the company ’ s growing dependence on Japan ’ s big three banks .
Borrowing from Mizuho Financial Group , Mitsubishi UFJ Financial Group Inc and Sumitomo Mitsui Financial Group last year rose by more than 1 trillion yen to 2.5 trillion yen .

Softbank Vision Fund boss doubles pay despite hefty loss
A number of executives have left Softbank’s $100bn Vision Fund.
Softbank has more than doubled the pay of its Vision Fund boss Rajeev Misra even as the mammoth tech fund dragged the Japanese company to a record loss last year.
Misra pocketed 1.6bn yen (£12m) in total compensation for the year to March, more than twice as much as he earned in the previous 12 months.
The Vision Fund head’s pay was second only to that of Softbank’s chief operating officer Marcelo Claure, which rose 17 per cent to 2.1bn yen.
However, group chief executive Masayoshi Son’s pay packet was reduced nine per cent to 209m yen.
The pay bump for Misra comes in spite of $18m losses at the Vision Fund last year, which helped push Softbank to a 1.4 trillion yen operating loss.
While the $100m tech fund initially enjoyed vast success, it has seen its bets in firms such as Wework and Uber sour over recent months.
Softbank has since taken control of Wework after the co-working firm almost ran out of cash following its botched public listing last year.
Softbank vice chairman Ron Fisher, who played a key role in the disastrous Wework investment, had his pay slashed 80 per cent last year. He had previously been the company’s highest paid executive.
The Softbank filing, posted today, also highlighted the company’s growing dependence on Japan’s big three banks.
Borrowing from Mizuho Financial Group, Mitsubishi UFJ Financial Group Inc and Sumitomo Mitsui Financial Group last year rose by more than 1 trillion yen to 2.5 trillion yen.