cityam--2020-04-22--Analysis: Why oil prices turned negative, and might do again

On Monday night oil prices turned negative for the first time in history , as traders started paying to have barrels of oil taken off their hands due to the total collapse in demand caused by coronavirus .
The unprecedented scenes were a result of a number of coalescing factors which created a situation in which buying oil storage was more expensive than oil itself .
Read more : FTSE 100 falls after US oil price turns negative for first time With storage getting ever closer to capacity , a similar situation could occur again further down the line as @ @ @ @ @ @ @ again .
The collapse has also led to concerns that a similar sell-off might be in the offing for Brent crude , the global benchmark .
The fundamental reason why prices turned negative is a straightforward one , as Rachel Winter , associate investment director at Killik & Co , says : “ Nobody wants to take delivery of oil next month because there ’ s nowhere to store it ” .
However , as James Trafford of Fidelity International says , “ Yesterday ’ s price action is best understood as a @ @ @ @ @ @ @ one that has been made much more extreme by the current situation ” .
Oil futures are contracts to actually deliver the commodity in question to a specific location for a specific date .
Monday ’ s price action came about because the WTI May contract expired yesterday , meaning that anyone in possession of a contract would have to take delivery of the commodity at the main WTI storage facility at Cushing in Oklahoma on the set day in May .
Normally , if traders do not want to take delivery , @ @ @ @ @ @ @ roll it over to the next month .
However , because of the enormous supply glut and rapidly growing shortage of storage space , no one wanted to buy up the contracts – leading to a situation where traders were being paid up to $ 37 to take them on .
Read more : US oil price turns negative for first time ever Neil Wilson , senior markets analyst at markets.com , said : “ What we got was a severe dislocation as paper traders found they had to offload positions without any @ @ @ @ @ @ @ “ A unique event , but one that reflects how financial markets can become very dysfunctional very quickly when things go bad ” .
Now that the May contract has expired , the new “ front month ” – the month of delivery – is now June .
Having been trading at around $ 20 per barrel , June prices plunged to $ 10 amid the growing realisation that storage space has all but run out .
With no uptick in demand expected , a sell-off on the same scale could be in @ @ @ @ @ @ @ supply glut is found .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Charalambos Pissourous of JFD Bank said : “ With the restrictive measures still intact around the globe , we can not rule out another round of selling as demand remains subdued and storage space continues to diminish .
“ Even if some nations decide to start loosening their lockdown restrictions , this may be a very slow procedure , and thus , demand is very unlikely to @ @ @ @ @ @ @ .
Read more : Analysis : Can oil prices recover from the coronavirus crash ?
According to Morningstar , capacity at Cushing will reach its limits in mid-May , which will only exacerbate the problem when the June contract expires next month .
Could Brent crude also go negative ?
After the WTI collapse , attention naturally turned to worldwide benchmark Brent crude to see if it would follow suit .
Although it has not yet collapsed to the same degree , Brent futures for May and June are trading at $ 13 @ @ @ @ @ @ @ further fall is very much a possibility .
Rystad Energy analyst Louise Dickson said : “ Brent is not immune to a negative price possibility .
What happened to WTI can happen to any traded commodity , if the forces behind the short are aligned .
“ This explains the negative sentiment around Brent today , which is also falling by a wide margin .
Traders have realized the danger and thus the sell-off that is observed today ” .
However , she went on to say , Brent crude “ should be @ @ @ @ @ @ @ made up of multiple crude grades and has natural egress to seaborne markets , and thus can chase global demand in a way that WTI can not .
“ There are also fewer players with a vested interest in seeing Brent collapse – Saudi and Russian crudes are both unofficially pegged to Brent , for example ” .
Earlier this month oil cartel Opec struck a deal with Russia to reduce oil output by 9.7m barrels a day , nearly 10 per cent of global production , in a bid to prop up @ @ @ @ @ @ @ deal ( the previous largest cuts Opec had agreed , during the 2008 financial crisis , were a mere 2.2m barrels ) has proved ineffective for two reasons .
First , the collapse in demand for oil has fallen as much as 30m barrels a day in April , according to the International Energy Agency ( IEA ) .
It will fall by roughly 26m barrels in May , leaving an enormous output overhang despite the cuts .
In addition , the cuts do not actually come into effect until 9 May – @ @ @ @ @ @ @ were first agreed .
According to the Economist Intelligence Unit , gasoline stocks in the US have already passed 262m barrels , their highest ever levels .
In the meantime , tanks have continued to fill around the world .
Paola Rodriquez-Masiu of consultancy Rystad Energy said it was important to remember that supply capacity is not even around the world .
Big producers , which export the majority of their oil , tend to have far less storage space than importers .
Read more : US oil prices plummet to 21-year low @ @ @ @ @ @ @ a rush among petrostates to lease extra capacity on tankers to cope with the glut .
According to Rystad Energy , a production shutdown of 5m to 7m barrels a day will be required if storage is not to surpass its limits .

Analysis: Why oil prices turned negative, and might do again
On Monday night oil prices turned negative for the first time in history, as traders started paying to have barrels of oil taken off their hands due to the total collapse in demand caused by coronavirus.
The unprecedented scenes were a result of a number of coalescing factors which created a situation in which buying oil storage was more expensive than oil itself.
With storage getting ever closer to capacity, a similar situation could occur again further down the line as traders become desperate to offload the commodity again.
The collapse has also led to concerns that a similar sell-off might be in the offing for Brent crude, the global benchmark.
Why did oil prices turn negative?
There are around 9,000 domestic oil producers in the US, who are currently being hammered by the price collapse.
The fundamental reason why prices turned negative is a straightforward one, as Rachel Winter, associate investment director at Killik & Co, says:
“Nobody wants to take delivery of oil next month because there’s nowhere to store it”.
However, as James Trafford of Fidelity International says, “Yesterday’s price action is best understood as a quirk or peculiarity of futures trading – one that has been made much more extreme by the current situation”.
Oil futures are contracts to actually deliver the commodity in question to a specific location for a specific date.
Monday’s price action came about because the WTI May contract expired yesterday, meaning that anyone in possession of a contract would have to take delivery of the commodity at the main WTI storage facility at Cushing in Oklahoma on the set day in May.
Normally, if traders do not want to take delivery, they can simply sell the contract or roll it over to the next month.
However, because of the enormous supply glut and rapidly growing shortage of storage space, no one wanted to buy up the contracts – leading to a situation where traders were being paid up to $37 to take them on.
Neil Wilson, senior markets analyst at markets.com, said: “What we got was a severe dislocation as paper traders found they had to offload positions without any liquidity or bid in the market.
“A unique event, but one that reflects how financial markets can become very dysfunctional very quickly when things go bad”.
Will prices collapse again?
Prices turned negative for the first time in history last night as traders were desperate to get rid of oil delivery contracts due to record demand lows and limited storage space.
Now that the May contract has expired, the new “front month” – the month of delivery – is now June.
Having been trading at around $20 per barrel, June prices plunged to $10 amid the growing realisation that storage space has all but run out.
With no uptick in demand expected, a sell-off on the same scale could be in order, unless a solution to the supply glut is found.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
Charalambos Pissourous of JFD Bank said: “With the restrictive measures still intact around the globe, we cannot rule out another round of selling as demand remains subdued and storage space continues to diminish.
“Even if some nations decide to start loosening their lockdown restrictions, this may be a very slow procedure, and thus, demand is very unlikely to return to its pre-virus levels soon”.
According to Morningstar, capacity at Cushing will reach its limits in mid-May, which will only exacerbate the problem when the June contract expires next month.
Could Brent crude also go negative?
After the WTI collapse, attention naturally turned to worldwide benchmark Brent crude to see if it would follow suit.
Although it has not yet collapsed to the same degree, Brent futures for May and June are trading at $13 and $17 respectively, and a further fall is very much a possibility.
Rystad Energy analyst Louise Dickson said: “Brent is not immune to a negative price possibility. What happened to WTI can happen to any traded commodity, if the forces behind the short are aligned.
“This explains the negative sentiment around Brent today, which is also falling by a wide margin. Traders have realized the danger and thus the sell-off that is observed today”.
However, she went on to say, Brent crude “should be more resilient”:
“Brent is made up of multiple crude grades and has natural egress to seaborne markets, and thus can chase global demand in a way that WTI cannot.
“There are also fewer players with a vested interest in seeing Brent collapse – Saudi and Russian crudes are both unofficially pegged to Brent, for example”.
Wasn’t the Opec deal meant to protect prices?
Opec’s price protection deal to cut output by record levels has not gone far enough to prop up the struggling market.
Earlier this month oil cartel Opec struck a deal with Russia to reduce oil output by 9.7m barrels a day, nearly 10 per cent of global production, in a bid to prop up the market.
However, the record deal (the previous largest cuts Opec had agreed, during the 2008 financial crisis, were a mere 2.2m barrels) has proved ineffective for two reasons.
First, the collapse in demand for oil has fallen as much as 30m barrels a day in April, according to the International Energy Agency (IEA).
It will fall by roughly 26m barrels in May, leaving an enormous output overhang despite the cuts.
In addition, the cuts do not actually come into effect until 9 May – a full month of production after they were first agreed.
According to the Economist Intelligence Unit, gasoline stocks in the US have already passed 262m barrels, their highest ever levels.
In the meantime, tanks have continued to fill around the world. Paola Rodriquez-Masiu of consultancy Rystad Energy said it was important to remember that supply capacity is not even around the world.
Big producers, which export the majority of their oil, tend to have far less storage space than importers.
There has been a rush among petrostates to lease extra capacity on tankers to cope with the glut.
According to Rystad Energy, a production shutdown of 5m to 7m barrels a day will be required if storage is not to surpass its limits.


cityam--2020-04-22--FTSE 100 rises as investors look past tumbling oil prices

The FTSE 100 has risen as investors look past the chaos in oil markets to signs that the coronavirus outbreak could be peaking and some surprisingly positive company results .
Britain ’ s FTSE 100 stock index was up 1.4 per cent at 5,721 points in by midday .
It had fallen around three per cent yesterday .
Read more : June oil futures crash as market grapples with unprecedented glut European stocks were also higher .
The pan-European Stoxx 600 was up one per cent .
Germany ’ s Dax was 0.8 per cent higher while France ’ s @ @ @ @ @ @ @ .
All had fallen considerably yesterday .
Stability showed no signs of returning to the oil markets , however .
Brent crude oil , the international benchmark , fell as much as 13 per cent before rebounding to $ 19.21 per barrel , putting it one per cent down .
WTI crude , the US benchmark , was also down one per cent at $ 11.43 per barrel .
It traded at $ 60 per barrel in January .
The price for the May WTI crude contract on Monday tumbled into negative territory @ @ @ @ @ @ @ combination of market quirks and the coronavirus-driven slump in demand .
“ After big slides yesterday caused by the turmoil in oil markets , things look a little brighter on Wednesday , ” said Jasper Lawler , head of research at London Capital Group .
Lawler said that markets were not too worried about plunging oil prices because they believe its long-term value is higher than prices currently indicate .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
However , @ @ @ @ @ @ @ UBS Global Wealth Management , said he expected plunging oil prices to “ contribute to volatility in equity , fixed income , and foreign exchange markets ” .
Yet he also said that “ the recent period of extreme dislocation in the oil US market should pass in the second half of the year ” .
In a sign that investors were feeling more confident this morning , the pound rose against the dollar 0.5 per cent to $ 1.236 .
The dollar was down on an index roughly 0.3 per cent , @ @ @ @ @ @ @ the safe-haven asset to put their money elsewhere .
Asian stocks were mixed overnight .
Hong Kong ’ s Hang Seng was last up 0.4 per cent and China ’ s Shanghai composite was 0.6 per cent higher .
But Japan ’ s Nikkei slipped 0.7 per cent .
US stocks are set to open higher after two days of falls , according to futures prices .
Read more : Pound tumbles as oil chaos drives investors towards dollar The FTSE 100 was supported today after scientists suggested the UK ’ s coronavirus @ @ @ @ @ @ @ Medical professors from Cambridge and Oxford universities told the BBC that they thought cases had peaked , although they warned it could be a long time before they dropped meaningfully .
FTSE 100 investors were also boosted by some better-than-expected corporate results .
Irish building group led the charge with a 6.6 per cent share jump .
It said stimulus measures would likely support business and pledged to pay its 2019 dividend .
Industrial stocks such as equipment rental firm Ashtead and mining groups Polymetal International and Fresnillo benefitted from signs that the @ @ @ @ @ @ @ $ 480bn ( £390bn ) fiscal stimulus package in the US to support businesses also cheered investors .
Joshua Mahony , senior market analyst at IG , said the package is “ unlikely to be the last ” .
He said President Donald Trump has “ shown his willingness to ramp up debt in the name of economic growth ” .

FTSE 100 rises as investors look past tumbling oil prices
London’s financial district has been all but deserted due to coronavirus, which has caused unprecedented market chaos in the last two months
The FTSE 100 has risen as investors look past the chaos in oil markets to signs that the coronavirus outbreak could be peaking and some surprisingly positive company results.
Britain’s FTSE 100 stock index closed up 2.3 per cent this afternoon, at 5770.63. It had fallen around three per cent yesterday.
European stocks were also higher. The pan-European Stoxx 600 was up 1.8 per cent. Germany’s Dax was 1.61 per cent higher while France’s CAC 40 was up 1.25 per cent. All had fallen considerably yesterday.
Stability showed no signs of returning to the oil markets, however. Brent crude oil, the international benchmark, fell as much as 13 per cent before rebounding to $20.61 per barrel, putting it more than six per cent up.
WTI crude, the US benchmark, was also up at $14.41 per barrel. It traded at $60 per barrel in January.
The price for the May WTI crude contract on Monday tumbled into negative territory for the first time due to a combination of market quirks and the coronavirus-driven slump in demand.
“After big slides yesterday caused by the turmoil in oil markets, things look a little brighter on Wednesday,” said Jasper Lawler, head of research at London Capital Group.
Lawler said that markets were not too worried about plunging oil prices because they believe its long-term value is higher than prices currently indicate.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
However, Mark Haefele, chief investment officer at UBS Global Wealth Management, said he expected plunging oil prices to “contribute to volatility in equity, fixed income, and foreign exchange markets”.
Yet he also said that “the recent period of extreme dislocation in the oil US market should pass in the second half of the year”.
Investors move out of dollar
In a sign that investors were feeling more confident this morning, the pound rose against the dollar 0.5 per cent to $1.236.
The dollar was down on an index roughly 0.3 per cent, showing that people are moving out of the safe-haven asset to put their money elsewhere.
Asian stocks were mixed overnight. Hong Kong’s Hang Seng was last up 0.4 per cent and China’s Shanghai composite was 0.6 per cent higher. But Japan’s Nikkei slipped 0.7 per cent.
US stocks are set to open higher after two days of falls, according to futures prices.
The FTSE 100 was supported today after scientists suggested the UK’s coronavirus outbreak could be passing its peak.
Medical professors from Cambridge and Oxford universities told the BBC that they thought cases had peaked, although they warned it could be a long time before they dropped meaningfully.
Company results boost FTSE 100
FTSE 100 investors were also boosted by some better-than-expected corporate results. Irish building group led the charge with a 6.6 per cent share jump. It said stimulus measures would likely support business and pledged to pay its 2019 dividend.
Industrial stocks such as equipment rental firm Ashtead and mining groups Polymetal International and Fresnillo benefitted from signs that the virus could be peaking.
A new $480bn (£390bn) fiscal stimulus package in the US to support businesses also cheered investors. Joshua Mahony, senior market analyst at IG, said the package is “unlikely to be the last”.
He said President Donald Trump has “shown his willingness to ramp up debt in the name of economic growth”.


cityam--2020-04-22--David Buik: Tories could lose next election over coronavirus loans delays

A top City commentator has warned the slow payment of coronavirus loans to businesses could mean the Tories lose the next election .
David Buik , a veteran financial pundit in the City of London , has urged chancellor Rishi Sunak to “ rethink ” the government ’ s stance on loans to businesses hit by coronavirus , with UK lending far outstripped by other countries .
Read more : Exclusive : Businesses call for bank-by-bank breakdown of coronavirus lending Earlier this week Sunak said he was “ not persuaded ” the government should underwrite 100 per cent of coronavirus @ @ @ @ @ @ @ have faced criticism for slow lending rates , are taking on 20 per cent of the risk .
Read more : The City View podcast from City A.M. , with David Buik Speaking to City A.M. editor Christian May on City A.M. ’ s daily City View podcast today , Buik said : “ [ Banks ] are under a lot of duress and they ’ re not playing ball , they ’ re saying we don ’ t think you can repay the money on this so we ’ re not going @ @ @ @ @ @ @ [ Sunak is ] going to have to have a rethink , because this money ’ s not going to get through and we ’ re going to have a big problem .
“ This loans scheme that Sunak put forward – which I thought in principle was a good thing – that could be an election loser.
” Banks are coming under pressure to publish data on coronavirus loans they have made .
Sunak has said 12,000 applications have been approved , amounting to lending past £2bn .
But most banks have @ @ @ @ @ @ @ made .
Read more : The City View from City A.M. with Dame Helena Morrissey Royal Bank of Scotland – now known as Natwest – has lent out £937m to 5,600 businesses , City A.M. understands .
That amounts to around half of all coronavirus loans so far .
Veteran City analyst Buik criticised the pace of lending so far .
SMEs will fail without coronavirus loans soon The UK is far behind Switzerland , whose banks lent out $ 15bn within a week of announcing the loans .
Meanwhile , the US @ @ @ @ @ @ @ a $ 350bn ( £284bn ) rescue fund for small businesses .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
“ When you consider the US lent out $ 325bn to the doorsteps of everybody because they had regional banks in every single one of the 51 states so they could get the thing done [ quickly ] , we don ’ t have that , ” he said .
Read more : Rishi Sunak ‘ not persuaded ’ to @ @ @ @ @ @ @ “ People are at breaking point , ” Buik warned .
“ For SMEs , if they don ’ t get this done certainly this week or the end of April , they ’ re going to go down .
They ’ re going to be beyond redemption and I think that is deeply unfair.
” He called for a simpler method using digital technology to speed up approval of coronavirus loans .
“ It ’ s got to happen .
In fairness to Sunak , he said ‘ I have some great @ @ @ @ @ @ @ logistics .
We had a crisis 12 years ago surely we should have learned something from it .
”

David Buik: Tories could lose next election over coronavirus loans delays
Tories ‘could lose next election’ over coronavirus loans delays, says City commentator David Buik. Chancellor Rishi Sunak (pictured) must find a way to speed up lending to SMEs
Top City commentator David Buik has warned the slow payment of coronavirus loans to businesses could mean the Tories lose the next election.
The City of London’s veteran financial pundit has urged chancellor Rishi Sunak to “rethink” the government’s stance on loans to businesses hit by coronavirus, with UK lending far outstripped by other countries.
Earlier this week Sunak said he was “not persuaded” the government should underwrite 100 per cent of coronavirus loans.
That means banks, which have faced criticism for slow lending rates, are taking on 20 per cent of the risk.
Speaking to City A.M. editor Christian May on City A.M.’s daily City View podcast today, Buik said: “[Banks] are under a lot of duress and they’re not playing ball, they’re saying we don’t think you can repay the money on this so we’re not going to give it to you.
“[Sunak is] going to have to have a rethink, because this money’s not going to get through and we’re going to have a big problem.
“This loans scheme that Sunak put forward – which I thought in principle was a good thing – that could be an election loser.”
Banks are coming under pressure to publish data on coronavirus loans they have made. Sunak has said 12,000 applications have been approved, amounting to lending past £2bn. But most banks have not revealed how many loans they have made.
Royal Bank of Scotland – now known as Natwest – has lent out £937m to 5,600 businesses, City A.M. understands. That amounts to around half of all coronavirus loans so far.
Veteran City analyst Buik criticised the pace of lending so far.
SMEs will fail without coronavirus loans soon
The UK is far behind Switzerland, whose banks lent out $15bn within a week of announcing the loans. Meanwhile, the US has already lent out the entirety of a $350bn (£284bn) rescue fund for small businesses.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
“When you consider the US lent out $325bn to the doorsteps of everybody because they had regional banks in every single one of the 51 states so they could get the thing done [quickly], we don’t have that,” he said.
“People are at breaking point,” Buik warned. “For SMEs, if they don’t get this done certainly this week or the end of April, they’re going to go down. They’re going to be beyond redemption and I think that is deeply unfair.”
He called for a simpler method using digital technology to speed up approval of coronavirus loans.
“It’s got to happen. In fairness to Sunak, he said ‘I have some great ideas’, but the problem is logistics. We had a crisis 12 years ago surely we should have learned something from it.”


cityam--2020-04-22--BeIN Sports urges Premier League to block Saudi bid for Newcastle

Broadcasting giant BeIN Media has urged the Premier League to block a proposed £300m Saudi takeover of Newcastle United amid concerns about “ industrial scale ” piracy .
Newcastle owner Mike Ashley is said to be on the brink of accepting a takeover offer from a consortium backed by Saudi Arabia ’ s sovereign wealth fund .
Read more : Why piracy means the sports broadcasting rights bubble is ‘ about to burst ’ However , the chief executive of Qatari media network beIN Yousef al-Obaidly has written to top-flight clubs urging them to block the deal due to the @ @ @ @ @ @ @ TV network .
BeIN is locked in a bitter dispute with illegal Saudi-backed broadcaster BeoutQ , which it has accused of pirating its coverage of Premier League fixtures .
“ In light of the Saudi Arabia government ’ s facilitation of the near three-year theft of the Premier League ’ s commercial rights — and in turn your club ’ s commercial revenues — through its backing of the huge scale BeoutQ pirate service , I would strongly suggest that you fully interrogate this deal , and ask the Premier League to do @ @ @ @ @ @ @ urgency , ” al-Obaidly wrote .
“ It is no exaggeration to say that the future economic model of football is at stake , ” he added .
The Qatari media boss has reportedly also written to Premier League chief executive Richard Masters .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
BeIN has been forced to lay off hundreds of employees as a result of the audacious piracy campaign , which it has warned could lead to a collapse @ @ @ @ @ @ @ .
Its three-year broadcasting deal with the Premier League — worth roughly £400m — is one of the competition ’ s largest international contracts .
An investigation last year by Fifa , Uefa and the Premier League concluded “ without doubt ” that Saudi satellite operator Arabsat had enabled BeoutQ ’ s piracy .
Arabsat has always denied the allegations and attempts to take legal action against the company have failed .
The intervention comes after billionaire tycoon Ashley , who also owns Sports Direct , reached a deal to sell Newcastle United @ @ @ @ @ @ @ Saudi Arabia ’ s Public Investment Fund is said to be closing in on an 80 per cent stake in the Magpies , while the remaining equity will be shared by financier Amanda Staveley and property moguls David and Simon Reuben .
But the takeover has also sparked criticism from Amnesty International , which has urged the Premier League to consider Saudi Arabia ’ s human rights record before approving the deal .

BeIN Sports urges Premier League to block Saudi bid for Newcastle
Broadcasting giant BeIN Media has urged the Premier League to block a proposed £300m Saudi takeover of Newcastle United amid concerns about “industrial scale” piracy.
Newcastle owner Mike Ashley is said to be on the brink of accepting a takeover offer from a consortium backed by Saudi Arabia’s sovereign wealth fund.
However, the chief executive of Qatari media network beIN Yousef al-Obaidly has written to top-flight clubs urging them to block the deal due to the state’s involvement in a pirate TV network.
BeIN is locked in a bitter dispute with illegal Saudi-backed broadcaster BeoutQ, which it has accused of pirating its coverage of Premier League fixtures.
“In light of the Saudi Arabia government’s facilitation of the near three-year theft of the Premier League’s commercial rights — and in turn your club’s commercial revenues — through its backing of the huge scale BeoutQ pirate service, I would strongly suggest that you fully interrogate this deal, and ask the Premier League to do the same, as a matter of urgency,” al-Obaidly wrote.
“It is no exaggeration to say that the future economic model of football is at stake,” he added.
The Qatari media boss has reportedly also written to Premier League chief executive Richard Masters.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
BeIN has been forced to lay off hundreds of employees as a result of the audacious piracy campaign, which it has warned could lead to a collapse of the value of sports broadcasting rights.
Its three-year broadcasting deal with the Premier League — worth roughly £400m — is one of the competition’s largest international contracts.
An investigation last year by Fifa, Uefa and the Premier League concluded “without doubt” that Saudi satellite operator Arabsat had enabled BeoutQ’s piracy.
Arabsat has always denied the allegations and attempts to take legal action against the company have failed.
The intervention comes after billionaire tycoon Ashley, who also owns Sports Direct, reached a deal to sell Newcastle United, which he acquired in 2007.
Saudi Arabia’s Public Investment Fund is said to be closing in on an 80 per cent stake in the Magpies, while the remaining equity will be shared by financier Amanda Staveley and property moguls David and Simon Reuben.
But the takeover has also sparked criticism from Amnesty International, which has urged the Premier League to consider Saudi Arabia’s human rights record before approving the deal.


cityam--2020-04-22--Transport for London 'in line for Tube bailout'

Urban transport operators including Tube operator Transport for London are in line for government bailout as the complete collapse in passenger numbers due to coronavirus raised questions over their survival .
The Financial Times reported that Whitehall officials said that emergency funding could be released by the end of the week following negotiations .
Read more : Bank governor Andrew Bailey warns against lifting coronavirus measures too quickly Passenger numbers have all but flatlined as a result of the government ’ s lockdown policy , which has limited travel for all but essential workers .
Tube operator TfL said that @ @ @ @ @ @ @ per cent due to the policy .
It said that passenger numbers on the Tube had fallen 95 per cent , and by 85 per cent on the capital ’ s bus network .
Speaking to the BBC , London mayor Sadiq Khan said he was seeking state financial aid or else TfL would run out of money with which to pay staff .
He said : “ We ’ re struggling .
We are eating into our reserves .
We are in conversation with the government with regards to supporting us through @ @ @ @ @ @ @ City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
TfL described the current situation as the most serious financial crisis it had ever faced .
Local transport systems were not covered by the protections the government has already implemented to guard the UK ’ s transport operators .
Bus firms were given a £167m aid package , whilst rail franchise agreements were suspended for a six-month period .
The situation is similar around the country , with Greater Manchester mayor Andy Burnham warning that he @ @ @ @ @ @ @ network imminently as it was hemorrhaging £1m a week .
Speaking to the media , Burnham said : “ If there is no deal from the government in the way they have bailed out the bus and the rail sectors , we are going to face the very difficult decision soon of whether or not we have to mothball the Metrolink system.
” Read more : Coronavirus : Decision to cut Tube services caused overcrowding , say transport watchdogs Authorities in Edinburgh , Sheffield , Liverpool and on Tyneside have all joined in @ @ @ @ @ @ @ Department for Transport spokesperson said : “ We are aware of the challenges faced by light rail operators , and continue to work closely with the sector and local authorities on the best solution for passengers ” .

Transport for London ‘in line for Tube bailout’
Urban transport operators including Tube operator Transport for London are in line for government bailout as the complete collapse in passenger numbers due to coronavirus raised questions over their survival.
The Financial Times reported that Whitehall officials said that emergency funding could be released by the end of the week following negotiations.
Passenger numbers have all but flatlined as a result of the government’s lockdown policy, which has limited travel for all but essential workers.
Tube operator TfL said that total revenue had dropped by over 90 per cent due to the policy.
It said that passenger numbers on the Tube had fallen 95 per cent, and by 85 per cent on the capital’s bus network.
Speaking to the BBC, London mayor Sadiq Khan said he was seeking state financial aid or else TfL would run out of money with which to pay staff.
He said: “We’re struggling. We are eating into our reserves. We are in conversation with the government with regards to supporting us through a grant.”
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
TfL described the current situation as the most serious financial crisis it had ever faced.
Local transport systems were not covered by the protections the government has already implemented to guard the UK’s transport operators.
Bus firms were given a £167m aid package, whilst rail franchise agreements were suspended for a six-month period.
The situation is similar around the country, with Greater Manchester mayor Andy Burnham warning that he could shutdown the city’s tram network imminently as it was hemorrhaging £1m a week.
Speaking to the media, Burnham said: “If there is no deal from the government in the way they have bailed out the bus and the rail sectors, we are going to face the very difficult decision soon of whether or not we have to mothball the Metrolink system.”
Authorities in Edinburgh, Sheffield, Liverpool and on Tyneside have all joined in with calls for government aid.
A Department for Transport spokesperson said: “We are aware of the challenges faced by light rail operators, and continue to work closely with the sector and local authorities on the best solution for passengers”.


cityam--2020-04-22--Mass coronavirus testing study launched to determine immunity levels

Around 20,000 households in England will take part in the first stage of a coronavirus testing study to determine the spread of Covid-19 and the level of immunity in the general population , the government has announced .
The study , which will test up to 300,000 people overall over 12 months , will include antibody testing of around 1,000 adults to help understand immunity levels .
The aim is to understand the current rate of infection and how many people could have developed antibodies to the virus as the government seeks a way forward from the UK ’ s @ @ @ @ @ @ @ to be available early next month and will inform the response to the virus .
The government ’ s current lockdown extension runs until around 7 May .
Health secretary Matt Hancock said : “ This survey will help to track the current extent of transmission and infection in the UK , while also answering crucial questions about immunity as we continue to build up our understanding of this new virus .
“ Together , these results will help us better understand the spread of the virus to date , predict the future @ @ @ @ @ @ @ , including crucially the development of ground-breaking new tests and treatments.
” Participants in the study will provide samples taken from self-administered nose and throat swabs , which will show whether they have the virus , and answer some questions during a home visit by a health worker .
They will be asked to take further tests every week for the first five weeks , then every month for 12 months .
Read more : UK needs coronavirus testing and tracing ‘ command centre ’ to beat virus In total , 25,000 people @ @ @ @ @ @ @ of the survey , and the government plans to extend it to up to around 300,000 over the next 12 months .
Adults from around 1,000 households will also provide a blood sample taken by a health worker , which will help determine what proportion of the population has developed antibodies to Covid-19 .

Mass coronavirus testing study launched to determine immunity levels
Around 20,000 households in England will take part in the first stage of a coronavirus testing study to determine the spread of Covid-19 and the level of immunity in the general population, the government has announced.
The study, which will test up to 300,000 people overall over 12 months, will include antibody testing of around 1,000 adults to help understand immunity levels.
The aim is to understand the current rate of infection and how many people could have developed antibodies to the virus as the government seeks a way forward from the UK’s coronavirus lockdown.
Initial findings are expected to be available early next month and will inform the response to the virus. The government’s current lockdown extension runs until around 7 May.
Health secretary Matt Hancock said: “This survey will help to track the current extent of transmission and infection in the UK, while also answering crucial questions about immunity as we continue to build up our understanding of this new virus.
“Together, these results will help us better understand the spread of the virus to date, predict the future trajectory and inform future action we take, including crucially the development of ground-breaking new tests and treatments.”
Participants in the study will provide samples taken from self-administered nose and throat swabs, which will show whether they have the virus, and answer some questions during a home visit by a health worker.
They will be asked to take further tests every week for the first five weeks, then every month for 12 months.
In total, 25,000 people will take part in the pilot phase of the survey, and the government plans to extend it to up to around 300,000 over the next 12 months.
Adults from around 1,000 households will also provide a blood sample taken by a health worker, which will help determine what proportion of the population has developed antibodies to Covid-19.


cityam--2020-04-22--Ryanair will not resume flights if middle seat must be left empty, says Michael O'Leary

Ryanair will not resume flights if it is forced to leave the middle seats empty in order to comply with social distancing rules , the budget airline ’ s chief executive Michael O ’ Leary said .
O ’ Leary reportedly said he believed the company will about 40 per cent of its flights at a capacity of 50 to 60 per cent if air travel restrictions are lifted in July .
Read more : Coronavirus : Ryanair ‘ does not expect to operate flights in April and May ’ The airline ’ s flight schedule could be running at @ @ @ @ @ @ @ O ’ Leary said .
However , he said Ryanair will not resume flying “ at all ” if middle seats are required to be kept empty .
He branded the potential measure as “ entirely ineffective ” and said the company had told the Irish government that “ either the government pays for the middle seat or we won ’ t fly ” .
In an interview with the Financial Times he said : “ We can ’ t make money on 66 per cent load factors .
Even if you do @ @ @ @ @ @ @ t deliver any social distancing , so it ’ s kind of an idiotic idea that doesn ’ t achieve anything anyway.
” Read more : Coronavirus : All Ryanair staff to take a 50 per cent pay cut , says Michael O ’ Leary Johan Lundgren , the chief executive of budget airline rival Easyjet , said that it was likely that airlines will operate with the middle seat empty when they are allowed to resume flying due to social distancing rules .
He also said the airline would stay cash positive @ @ @ @ @ @ @ forced to stay grounded for nine months , and should the grounding last longer , it would be able to seek additional funding .

Ryanair will not resume flights if middle seat must be left empty, says Michael O’Leary
Ryanair will not resume flights if it is forced to leave the middle seats empty in order to comply with social distancing rules, the budget airline’s chief executive Michael O’Leary said.
O’Leary reportedly said he believed the company will about 40 per cent of its flights at a capacity of 50 to 60 per cent if air travel restrictions are lifted in July.
The airline’s flight schedule could be running at 80 per cent capacity by September, O’Leary said. However, he said Ryanair will not resume flying “at all” if middle seats are required to be kept empty.
He branded the potential measure as “entirely ineffective” and said the company had told the Irish government that “either the government pays for the middle seat or we won’t fly”.
In an interview with the Financial Times he said: “We can’t make money on 66 per cent load factors. Even if you do that, the middle seat doesn’t deliver any social distancing, so it’s kind of an idiotic idea that doesn’t achieve anything anyway.”
Johan Lundgren, the chief executive of budget airline rival Easyjet, said that it was likely that airlines will operate with the middle seat empty when they are allowed to resume flying due to social distancing rules.
He also said the airline would stay cash positive in the event that its fleet was forced to stay grounded for nine months, and should the grounding last longer, it would be able to seek additional funding.


cityam--2020-04-22--Hiscox faces legal action over coronavirus business interruption claims

The Night Time Industries Association , which represents bars and clubs across the UK , has launched legal action against Hiscox , alleging the insurer has refused to pay out for claims during the coronavirus pandemic .
The organisation is arranging class action against the insurer , which it said has denied liability under its business interruption policy .
All night time venues including pubs and restaurants have been forced to close under the UK ’ s coronavirus lockdown .
The NTIA , which said it has already heard from more than 100 claimants , has appointed Philip Kolvin QC @ @ @ @ @ @ @ executive Michael Kill said : “ Night time economy businesses are being denied legitimate insurance claims , many claims are being disputed by insurers based on contrived arguments to avoid sharing the financial burden during the Covid-19 crisis.
” “ Philip Kolvin QC has advised that claimants who were insured by Hiscox against closure by public authorities and who had to close their premises under the regulations have a good case against Hiscox , ” he added .
“ The clue is in the name ‘ insurance ’ , ” Kolvin said .
@ @ @ @ @ @ @ business for .
They should not be running for cover .
They will never be forgiven for doing so.
” Hiscox yesterday said it anticipated paying out up to $ 175m ( £142m ) in coronavirus insurance claims arising from restrictions on travel and mass gatherings , but said its business interruption exposure is “ limited ” in Europe .
It said its “ core small commercial package policies ” do not cover business interruption as a result of the government ’ s pandemic response .
Read more : Insurance : Hiscox , @ @ @ @ @ @ @ dividends following Bank of England pressure Its exposure to coronavirus is limited to event cancellations and abandonment due to the outbreak .
It is also settling claims in media and entertainment and the travel sector .
“ We understand these are incredibly difficult times for businesses and we are paying claims that are covered by the policies we issue fairly and quickly , ” Hiscox said .
“ We review every case individually , and if any customer has concerns about the application of their policy , we encourage them to get in @ @ @ @ @

Hiscox faces legal action over coronavirus business interruption claims
Some venues are set to see their energy bills triple, industry bodies have warned
The Night Time Industries Association, which represents bars and clubs across the UK, has launched legal action against Hiscox, alleging the insurer has refused to pay out for claims during the coronavirus pandemic.
The organisation is arranging class action against the insurer, which it said has denied liability under its business interruption policy. All night time venues including pubs and restaurants have been forced to close under the UK’s coronavirus lockdown.
The NTIA, which said it has already heard from more than 100 claimants, has appointed Philip Kolvin QC to advise its members.
NTIA chief executive Michael Kill said: “Night time economy businesses are being denied legitimate insurance claims, many claims are being disputed by insurers based on contrived arguments to avoid sharing the financial burden during the Covid-19 crisis.”
“Philip Kolvin QC has advised that claimants who were insured by Hiscox against closure by public authorities and who had to close their premises under the regulations have a good case against Hiscox,” he added.
“The clue is in the name ‘insurance’,” Kolvin said. “It is what they are in business for. They should not be running for cover. They will never be forgiven for doing so.”
Hiscox yesterday said it anticipated paying out up to $175m (£142m) in coronavirus insurance claims arising from restrictions on travel and mass gatherings, but said its business interruption exposure is “limited” in Europe.
It said its “core small commercial package policies” do not cover business interruption as a result of the government’s pandemic response.
Its exposure to coronavirus is limited to event cancellations and abandonment due to the outbreak. It is also settling claims in media and entertainment and the travel sector.
“We understand these are incredibly difficult times for businesses and we are paying claims that are covered by the policies we issue fairly and quickly,” Hiscox said.
“We review every case individually, and if any customer has concerns about the application of their policy, we encourage them to get in touch with us directly”


cityam--2020-04-22--Coronavirus: Our digital shift has implications for blockchain

Of the many lessons being learned during the current Covid-19 pandemic , an important one is that many industries are capable of going digital in an emergency .
The rapid digital transition has been more agile where blockchain was already in place .
Blockchain ’ s lasting legacy will be its role in the continuation of positive digital change post-crisis .
The sudden and dramatic pace of change can be seen across the world .
As of today , countries are accepting “ alternative arrangements ” for original paper export certificates , New York is allowing notary services by video @ @ @ @ @ @ @ original ” documents and acceptances by email .
It wasn ’ t clear to most people how fundamental the flow of paper was , until it stopped .
Read more : Fleet of foot fintech has a role to play in recovery Industries now face two major challenges : how to go digital immediately , and how to allocate resources properly .
Blockchain ’ s evolution in trade over the past few years can teach us some important lessons .
The key to rapid response is twofold .
First is scaling up existing @ @ @ @ @ @ @ the continuation of existing transactions .
A trickier problem is the second part of the response : implementing digital workarounds where no solutions are in place .
Finance is a big part of the problem .
Every business with a line of credit at a bank is drawing it down .
But , how do you present ( or even create ) original documents if you don ’ t have a printer at home , couriers won ’ t pick up and bank employees are working remotely in their home offices ?
Shipment @ @ @ @ @ @ @ window .
But without a Force Majeure declaration , the liability is on you .
The challenge of achieving continuation of existing transactions is attenuated where blockchain-based flows are in place .
The root of the problem is the demand for original documents with wet signatures .
While in some instances this is the result of legal requirements , more often it is behavioral , or built into the business flow .
In other words , it has been considered normal practice for so long that it is ingrained in the culture .
@ @ @ @ @ @ @ finance app on a purpose-built enterprise blockchain platform can overcome , primarily by building the structures that banks need to inject finance into the deeper tiers of the supply chain .
The important consideration for a blockchain solution in this instance is to recognize where local regulations limit the ability to transact .
A second problem in the current crisis is the efficient allocation of goods .
Much of this is a physical problem .
For example , some countries have implemented export restrictions on medical products .
Over the past year , @ @ @ @ @ @ @ efficient ways to connect existing networks together without reverting to paper .
What does that mean in terms of the current coronavirus pandemic ?
There are three implications .
The first is the allocation of resources on a global scale .
Ventilators are not in short supply globally , rather , they are not being allocated where they are needed .
Normally this is a supply and demand issue .
However in a global crisis , multiple networks need to be able to report real-time information about supply and demand .
Blockchain ’ @ @ @ @ @ @ @ can overcome this .
The second is inventory management .
Blockchain , together with artificial intelligence , allows for demand forecasting and more flexible inventory control .
Today , the ship with your cargo may not be able to deliver to your closest port due to staffing shortages .
The 2020 pandemic is different because it is global .
Exceptions processing on a global scale requires different resources .
A third implication of the pandemic on the adoption of blockchain is that it will overcome the reluctance to implement new solutions .
There @ @ @ @ @ @ @ , but inertia lingers due to the cost of implementation .
If you remember former US President Barack Obama ’ s 2009 stimulus package , you will remember he focused on what he called “ shovel-ready ” infrastructure projects .
Similarly , the solution to the current crisis will not be a newly-conceptualized digital solution .
That ’ s not how technology achieves success .
It needs to be tested , linked into existing systems , deployed , and patched .
In 2020 , the world is looking for shovel-ready digital solutions .
@ @ @ @ @ @ @ – electronic issuance and transfer , regulatory approval , trade-ready – are on blockchain .
And most critically , blockchain scales quickly .
Perhaps the most critical message for anyone implementing new technology in 2020 is this : the most durable digital solutions are those that are able to scale up and facilitate the infrastructure for subsequent solutions .

Coronavirus: Our digital shift has implications for blockchain
Of the many lessons being learned during the current Covid-19 pandemic, an important one is that many industries are capable of going digital in an emergency. The rapid digital transition has been more agile where blockchain was already in place. Blockchain’s lasting legacy will be its role in the continuation of positive digital change post-crisis.
The sudden and dramatic pace of change can be seen across the world. As of today, countries are accepting “alternative arrangements” for original paper export certificates, New York is allowing notary services by video, and global banks are accepting “original” documents and acceptances by email.
It wasn’t clear to most people how fundamental the flow of paper was, until it stopped.
Read more: Fleet of foot fintech has a role to play in recovery
Industries now face two major challenges: how to go digital immediately, and how to allocate resources properly. Blockchain’s evolution in trade over the past few years can teach us some important lessons.
Rapid response – keeping trade flowing
The key to rapid response is twofold. First is scaling up existing digital solutions. This is aimed at the continuation of existing transactions.
A trickier problem is the second part of the response: implementing digital workarounds where no solutions are in place.
Finance is a big part of the problem. Every business with a line of credit at a bank is drawing it down. But, how do you present (or even create) original documents if you don’t have a printer at home, couriers won’t pick up and bank employees are working remotely in their home offices? Shipment delays mean you may miss your delivery window. But without a Force Majeure declaration, the liability is on you.
The challenge of achieving continuation of existing transactions is attenuated where blockchain-based flows are in place. The root of the problem is the demand for original documents with wet signatures. While in some instances this is the result of legal requirements, more often it is behavioral, or built into the business flow. In other words, it has been considered normal practice for so long that it is ingrained in the culture.
This is the problem that a trade finance app on a purpose-built enterprise blockchain platform can overcome, primarily by building the structures that banks need to inject finance into the deeper tiers of the supply chain. The important consideration for a blockchain solution in this instance is to recognize where local regulations limit the ability to transact.
Efficient allocation of goods
A second problem in the current crisis is the efficient allocation of goods. Much of this is a physical problem. For example, some countries have implemented export restrictions on medical products.
Over the past year, blockchain in supply chain has introduced more efficient ways to connect existing networks together without reverting to paper. What does that mean in terms of the current coronavirus pandemic? There are three implications.
The first is the allocation of resources on a global scale. Ventilators are not in short supply globally, rather, they are not being allocated where they are needed. Normally this is a supply and demand issue. However in a global crisis, multiple networks need to be able to report real-time information about supply and demand. Blockchain’s ability to connect disparate networks instantaneously can overcome this.
The second is inventory management. Blockchain, together with artificial intelligence, allows for demand forecasting and more flexible inventory control. Today, the ship with your cargo may not be able to deliver to your closest port due to staffing shortages. The 2020 pandemic is different because it is global. Exceptions processing on a global scale requires different resources.
A third implication of the pandemic on the adoption of blockchain is that it will overcome the reluctance to implement new solutions. There are already better ways of doing things, but inertia lingers due to the cost of implementation.
Shovel-ready blockchain
If you remember former US President Barack Obama’s 2009 stimulus package, you will remember he focused on what he called “shovel-ready” infrastructure projects. Similarly, the solution to the current crisis will not be a newly-conceptualized digital solution. That’s not how technology achieves success. It needs to be tested, linked into existing systems, deployed, and patched.
In 2020, the world is looking for shovel-ready digital solutions. And the solutions that fit the criteria – electronic issuance and transfer, regulatory approval, trade-ready – are on blockchain.
And most critically, blockchain scales quickly. Perhaps the most critical message for anyone implementing new technology in 2020 is this: the most durable digital solutions are those that are able to scale up and facilitate the infrastructure for subsequent solutions.


cityam--2020-04-22--Gordon Brothers buys Laura Ashley brand and archives

Gordon Brothers has bought the Laura Ashley brand out of administration , however the future of its 147 high street stores is still undecided .
The clothing and home retailer ’ s archives and intellectual property were also included in the deal , the US advisory firm announced today .
Gordon Brothers said it will partner with the existing management team to work on “ several go-to-market ” strategies , which “ could include retaining a streamlined portfolio of retail stores ” in UK and Ireland locations .
All of Laura Ashley ’ s high street stores are currently closed @ @ @ @ @ @ @ to the coronavirus lockdown .
Administrator PwC said it had “ engaged with interested parties during this time with the aim of securing a buyer.
” The firm said it will build the retailer ’ s e-commerce offering , develop more strategic relationships and expand its portfolio of licensees and franchisees globally .
Ramez Toubassy , president of brands for Gordon Brothers , said : “ Laura Ashley is a true giant among British lifestyle brands , possessing a unique ability to span geographies , product categories , and price points .
“ @ @ @ @ @ @ @ responsibility to reignite Mrs. Ashley ’ s original vision while delivering unique and contemporary products to both long-time followers and new customers from around the world.
” PwC is still trading the company ’ s online business and is preparing the stores to reopen when the government relaxes lockdown restrictions as it continues to seek a buyer for the UK operations .
Rob Lewis , joint administrator and PwC partner , said : “ We are extremely pleased to have secured a sale of the brand , which is a testament to the @ @ @ @ @ @ @ Laura Ashley name .
“ We are continuing to support employees and work with the management team and interested parties to secure a future for the UK operations .
”

Gordon Brothers buys Laura Ashley brand and archives
Gordon Brothers has bought the Laura Ashley brand out of administration, however the future of its 147 high street stores is still undecided.
The clothing and home retailer’s archives and intellectual property were also included in the deal, the US advisory firm announced today.
Gordon Brothers said it will partner with the existing management team to work on “several go-to-market” strategies, which “could include retaining a streamlined portfolio of retail stores” in UK and Ireland locations.
All of Laura Ashley’s high street stores are currently closed and 1,700 staff have been furloughed due to the coronavirus lockdown. Administrator PwC said it had “engaged with interested parties during this time with the aim of securing a buyer.”
The firm said it will build the retailer’s e-commerce offering, develop more strategic relationships and expand its portfolio of licensees and franchisees globally.
Ramez Toubassy, president of brands for Gordon Brothers, said: “Laura Ashley is a true giant among British lifestyle brands,possessing a unique ability to span geographies, product categories, and price points.
“We feel humbled and inspired by the responsibility to reignite Mrs. Ashley’s original vision while delivering unique and contemporary products to both long-time followers and new customers from around the world.”
PwC is still trading the company’s online business and is preparing the stores to reopen when the government relaxes lockdown restrictions as it continues to seek a buyer for the UK operations.
Rob Lewis, joint administrator and PwC partner, said: “We are extremely pleased to have secured a sale of the brand, which is a testament to the strength and world wide recognition of the Laura Ashley name.
“We are continuing to support employees and work with the management team and interested parties to secure a future for the UK operations.”


cityam--2020-04-22--Chris Whitty: Social distancing measures likely in place until next year

There is only an “ incredibly small probability ” of a coronavirus vaccine being available for public use or a full lifting of social distancing restrictions in the next calendar year , according to the UK ’ s chief medical officer .
Professor Chris Whitty said at today ’ s Covid-19 press conference that Britons should be prepared for some form of social distancing measures to be in place for the foreseeable future .
He said this would only change with a vaccine or “ highly effective drugs ” available .
Whitty said he was hopeful we will have “ @ @ @ @ @ @ @ earlier than a year ” , but that it will take some time for any vaccine to be produced en masse and distributed .
It comes just a day after health secretary Matt Hancock announced that an Oxford University vaccine development will start human trials tomorrow , after the team received £20m in funding .
“ The exit from this is going to be one of two things – a highly effective vaccine…or highly effective drugs , so people stop dying of this disease even if they catch it , ” Whitty said @ @ @ @ @ @ @ probability of having those any time in the next calendar year are incredibly small – we ’ re going to have to rely on other social measures which are of course are very socially disruptive .
Read more : Consumers ‘ uncomfortable ’ returning to pubs and restaurants after coronavirus lockdown “ If people are hoping that we are going to suddenly be moving from lockdown to ‘ everything is gone ’ , that is a wholly unrealistic expectation .
We are going to have to do a lot of things for really @ @ @ @ @ @ @

Chris Whitty: Social distancing measures likely in place until next year
Britain’s Chief Medical Officer for England Chris Whitty leaves from 10 Downing Street
There is only an “incredibly small probability” of a coronavirus vaccine being available for public use or a full lifting of social distancing restrictions in the next calendar year, according to the UK’s chief medical officer.
Professor Chris Whitty said at today’s Covid-19 press conference that Britons should be prepared for some form of social distancing measures to be in place for the foreseeable future.
He said this would only change with a vaccine or “highly effective drugs” available.
Whitty said he was hopeful we will have “vaccines that have proof of concept much earlier than a year”, but that it will take some time for any vaccine to be produced en masse and distributed.
It comes just a day after health secretary Matt Hancock announced that an Oxford University vaccine development will start human trials tomorrow, after the team received £20m in funding.
“The exit from this is going to be one of two things – a highly effective vaccine…or highly effective drugs, so people stop dying of this disease even if they catch it,” Whitty said.
“Until that point – the probability of having those any time in the next calendar year are incredibly small – we’re going to have to rely on other social measures which are of course are very socially disruptive.
“If people are hoping that we are going to suddenly be moving from lockdown to ‘everything is gone’, that is a wholly unrealistic expectation. We are going to have to do a lot of things for really a long period of time.”


cityam--2020-04-22--UK banks slammed by Tory backbencher for not acting in national interest

The UK ’ s banking sector has been criticised for not working in the national interest as some banks move to rapidly raise overdraft interest fees .
Tory backbencher Peter Bone slammed the nation ’ s banks at today ’ s Prime Minister ’ s Questions ( PMQs ) for hiking interest rates on overdrafts while many struggle during the coronavirus crisis .
Read more : David Buik : Tories could lose next election over coronavirus loans delays Some banks have increased overdraft interest fees to up to 49.9 per cent in the past month .
These changes were planned @ @ @ @ @ @ @ are charging 20 per cent interest per year which they ’ re going to increase to 40 per cent in July , ” Bone said .
“ At the same time they ’ re offering savers pathetic interest rates of 0.1 per cent .
“ These are the same banks that were saved with billions and billions of pounds of taxpayers money .
“ What on earth is going on ?
When are the banks going to act in the national interest ?
” First secretary Dominic Raab , filling in for Boris @ @ @ @ @ @ @ during the coronavirus crisis .
“ The major banks and building societies have provided relief to those impacted by coronavirus , including deferring mortgage and other loan repayments , ” he said .
“ In this national effort…we certainlty expect the banks to do their bit.
” Read more : Exclusive : Businesses call for bank-by-bank breakdown of coronavirus lending There has also been much concern about banks not lending out enough money as a part of the government ’ s business loan schemes .
There has been just 12,000 loan approvals through @ @ @ @ @ @ @ opening .

UK banks slammed by Tory backbencher for not acting in national interest
Peter Bone MP outside Parliament on August 28, 2019 in London, United Kingdom.
The UK’s banking sector has been criticised for not working in the national interest as some banks move to rapidly raise overdraft interest fees.
Tory backbencher Peter Bone slammed the nation’s banks at today’s Prime Minister’s Questions (PMQs) for hiking interest rates on overdrafts while many struggle during the coronavirus crisis.
Some banks have increased overdraft interest fees to up to 49.9 per cent in the past month.
These changes were planned before the coronavirus outbreak.
“Banks are charging 20 per cent interest per year which they’re going to increase to 40 per cent in July,” Bone said.
“At the same time they’re offering savers pathetic interest rates of 0.1 per cent.
“These are the same banks that were saved with billions and billions of pounds of taxpayers money.
“What on earth is going on? When are the banks going to act in the national interest?”
First secretary Dominic Raab, filling in for Boris Johnson, defended the banks’ efforts during the coronavirus crisis.
“The major banks and building societies have provided relief to those impacted by coronavirus, including deferring mortgage and other loan repayments,” he said.
“In this national effort…we certainlty expect the banks to do their bit.”
There has also been much concern about banks not lending out enough money as a part of the government’s business loan schemes.
There has been just 12,000 loan approvals through the scheme, almost one month after opening.


cityam--2020-04-22--Coronavirus: Moss Bros shares dive as bidder looks for exit

Shares in Moss Bros plunged more than 20 per cent today after the menswear firm said Brigadier Acquisition Company was seeking to pull out of a £22m deal to take it private due to coronavirus .
The suit retailer said this morning that it had been informed by Brigadier , which owns Crew Clothing , that it is seeking a ruling from the Takeover Panel to cancel its offer .
Brigadier is unable to pull out of the deal , which was announced last month , unless it can prove that coronavirus has been of “ material significance…in the context @ @ @ @ @ @ @ opposes Brigadier ’ s attempt to retract its offer , the company said .
“ The board confirms that it will take all necessary action to make its case that those requirements have not been met and that the offer should not therefore be permitted to lapse , ” the high street retailer , said in a statement this morning .
Nick Burchett , fund manager at Cavendish Asset Management , which owns a six per cent stake in Moss Bros said it was too late for Brigadier to back out of the @ @ @ @ @ @ @ timing of the deal was opportunistic but unwise in March with the crisis looming on the horizon , you can ’ t back out of a deal at this stage , ” he said .
Concerns have also been raised that , if the Takeover Panel allows Brigadier to pull out , it could set a precedent for future deals .
Read more : Moss Bros to be taken private in £22.6m deal Burchett cited WPP ’ s takeover of Tempus in 2001 , which went ahead despite the 9/11 attacks , as @ @ @ @ @ @ @ also continue .
“ If the Moss Bros acquisition falls through it could start a worrying trend for future deals , ” he said .

Coronavirus: Moss Bros shares dive as bidder looks for exit
Moss Bros has been just one of many high street stores that struggled during the pandemic.
Shares in Moss Bros plunged more than 20 per cent today after the menswear firm said Brigadier Acquisition Company was seeking to pull out of a £22m deal to take it private due to coronavirus.
The suit retailer said this morning that it had been informed by Brigadier, which owns Crew Clothing, that it is seeking a ruling from the Takeover Panel to cancel its offer.
Brigadier is unable to pull out of the deal, which was announced last month, unless it can prove that coronavirus has been of “material significance…in the context of the offer”. Moss Bros opposes Brigadier’s attempt to retract its offer, the company said.
“The board confirms that it will take all necessary action to make its case that those requirements have not been met and that the offer should not therefore be permitted to lapse,” the high street retailer, said in a statement this morning.
Nick Burchett, fund manager at Cavendish Asset Management, which owns a six per cent stake in Moss Bros said it was too late for Brigadier to back out of the deal.
“While I thought the timing of the deal was opportunistic but unwise in March with the crisis looming on the horizon, you can’t back out of a deal at this stage,” he said.
Concerns have also been raised that, if the Takeover Panel allows Brigadier to pull out, it could set a precedent for future deals.
Burchett cited WPP’s takeover of Tempus in 2001, which went ahead despite the 9/11 attacks, as evidence that the Moss Bros takeover should also continue.
“If the Moss Bros acquisition falls through it could start a worrying trend for future deals,” he said.


cityam--2020-04-22--Exclusive: Growing divide in Boris Johnson's Brexit unit over trade deal extension

There is a growing divide in opinion within the government ’ s Brexit trade deal negotiating unit over whether to seek an extension to the 31 December deadline during the coronavirus crisis .
Civil servants are increasingly frustrated that the government refuses to countenance the idea of an extension , while political appointees are keen to press home the UK ’ s departure .
Read more : UK would ‘ say no ’ to EU request for extension of Brexit trade talks David Frost , a former diplomat and one-time ambassador to Denmark , is the UK ’ s chief @ @ @ @ @ @ @ a mix of politically appointed advisers and civil servants .
The unit began a week-long negotiating round on Monday , with a further two planned over the next five weeks .
Multiple sources told City A.M. there was concern among civil servants in the negotiating team about Downing Street ’ s hardline refusal to contemplate granting an extension to the trade deal ’ s 31 December deadline .
A different view is held by the so-called “ true believers ” in the unit , who are adamant there should be no extension to @ @ @ @ @ @ @ prospect of leaving the European Union with no trade deal if need be .
The core of Frost ’ s politically appointed team is made up of Vote Leave veterans and the former communications boss of free market think tank the Institute of Economic Affairs .
A source with knowledge of the situation said the civil servants “ are more or less the same group…that were there under the May years ” and that they “ have very different attitudes from David Frost and the people he ’ s brought in around him @ @ @ @ @ @ @ ’ t a huge fissure yet ” , but that it will likely be a “ live issue ” in a few months ’ time .
It is widely understood that Brussels would be prepared to discuss an extension , but the Prime Minister ’ s official spokesman last week said Downing Street would refuse any extension request from the EU .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
A source close to Frost said : “ There is @ @ @ @ @ @ @ continue to be clear that extending the transition period would prolong the negotiations and increase uncertainty , whilst also leaving us bound by EU legislation and obliged to make further payments into the EU budget .
“ The negotiating team – which works within a policy remit set by ministers – operates as one , with civil servants and political advisers collaborating extremely closely.
” It comes as a group of civil service grandees came out this morning to urge Number 10 to seek an extension .
Philip Rycroft , the former chief @ @ @ @ @ @ @ department , told Prospect that “ it is simple common sense to ask for an extension of the transition period ” .
“ More time could lead to a better outcome for both sides , ” he said .
“ Clearly there has been much less time for negotiation than could ever have been anticipated.
” There has been a litany of calls for an extension to the negotiating timetable in the wake of the coronavirus pandemic , including from International Monetary Fund ( IMF ) chief Kristalina Georgieva .
She said last @ @ @ @ @ @ @ to “ reduce uncertainty ” for the global economy .
The UK is currently in a transition period , where it is still operating under EU rules and regulations .
If no deal is struck by 31 December then new taxes and trade barriers will be implemented on World Trade Organisation ( WTO ) terms between the EU and UK .
Iain Anderson , founder of City communications firm Cicero Group , said Square Mile companies would likely be hoping for an extension to the 31 December deadline .
“ Broadly there is @ @ @ @ @ @ @ an extension I think that would be welcome , ” he said .
“ Firms will have enough to deal with trying to move their businesses forward already.
” Veteran City of London pundit David Buik said an extension was inevitable , but that the government ’ s negotiating team should not concede that yet .
Read more : IMF : UK must extend Brexit trade deal deadline during coronavirus “ Of course they will have an extension in the end , I don ’ t think it ’ s possible to do @ @ @ @ @ @ @ if the UK gives an inch now the EU will take miles , ” he said .
“ As far as I ’ m concerned they shouldn ’ t be let off the bridle until the very end.
” A Downing Street spokesperson said it was “ completely untrue ” that there was a split in the team and that “ the Prime Minister has made clear he has no intention of changing ” the 31 December deadline .

Exclusive: Growing divide in Boris Johnson’s Brexit unit over trade deal extension
British Prime Minister’s Europe adviser David Frost arrives for the start of the first round of post-Brexit trade deal talks between the EU and the United Kingdom, in Brussels on 2 March
There is a growing divide in opinion within the government’s Brexit trade deal negotiating unit over whether to seek an extension to the 31 December deadline during the coronavirus crisis.
Civil servants are increasingly frustrated that the government refuses to countenance the idea of an extension, while political appointees are keen to press home the UK’s departure.
David Frost, a former diplomat and one-time ambassador to Denmark, is the UK’s chief negotiator and his 40-strong team consists of a mix of politically appointed advisers and civil servants.
The unit began a week-long negotiating round on Monday, with a further two planned over the next five weeks.
Multiple sources told City A.M. there was concern among civil servants in the negotiating team about Downing Street’s hardline refusal to contemplate granting an extension to the trade deal’s 31 December deadline.
A different view is held by the so-called “true believers” in the unit, who are adamant there should be no extension to the deadline and are comfortable at the prospect of leaving the European Union with no trade deal if need be.
The core of Frost’s politically appointed team is made up of Vote Leave veterans and the former communications boss of free market think tank the Institute of Economic Affairs.
A source with knowledge of the situation said the civil servants “are more or less the same group…that were there under the May years” and that they “have very different attitudes from David Frost and the people he’s brought in around him”.
Another said it “wasn’t a huge fissure yet”, but that it will likely be a “live issue” in a few months’ time.
It is widely understood that Brussels would be prepared to discuss an extension, but the Prime Minister’s official spokesman last week said Downing Street would refuse any extension request from the EU.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
A source close to Frost said: “There is no debate about this issue and ministers continue to be clear that extending the transition period would prolong the negotiations and increase uncertainty, whilst also leaving us bound by EU legislation and obliged to make further payments into the EU budget.
“The negotiating team – which works within a policy remit set by ministers – operates as one, with civil servants and political advisers collaborating extremely closely.”
It comes as a group of civil service grandees came out this morning to urge Number 10 to seek an extension.
Philip Rycroft, the former chief civil servant in the now defunct Brexit department, told Prospect that “it is simple common sense to ask for an extension of the transition period”.
Former cabinet secretary Gus O’Donnell agreed with Rycroft’s assessment.
“More time could lead to a better outcome for both sides,” he said.
“Clearly there has been much less time for negotiation than could ever have been anticipated.”
There has been a litany of calls for an extension to the negotiating timetable in the wake of the coronavirus pandemic, including from International Monetary Fund (IMF) chief Kristalina Georgieva.
She said last week that the deadline should be extended to “reduce uncertainty” for the global economy.
The UK is currently in a transition period, where it is still operating under EU rules and regulations.
If no deal is struck by 31 December then new taxes and trade barriers will be implemented on World Trade Organisation (WTO) terms between the EU and UK.
Iain Anderson, founder of City communications firm Cicero Group, said Square Mile companies would likely be hoping for an extension to the 31 December deadline.
“Broadly there is a sense that if we could get an extension I think that would be welcome,” he said.
“Firms will have enough to deal with trying to move their businesses forward already.”
Veteran City of London pundit David Buik said an extension was inevitable, but that the government’s negotiating team should not concede that yet.
“Of course they will have an extension in the end, I don’t think it’s possible to do the deal in that time, but if the UK gives an inch now the EU will take miles,” he said.
“As far as I’m concerned they shouldn’t be let off the bridle until the very end.”
A Downing Street spokesperson said it was “completely untrue” that there was a split in the team and that “the Prime Minister has made clear he has no intention of changing” the 31 December deadline.


cityam--2020-04-22--US crude oil inventories near all-time highs as demand dries up

US crude oil inventories neared record levels today as producers continued to pump despite a near-total collapse in demand .
Crude inventories rose by 15m barrels in the week to April 17 to 518.6m barrels , putting them within striking distance of an all-time record of 535m barrels set in 2017 .
Read more : Brent crude tumbles overnight to lowest oil prices since millennium Rystad Energy analysts had predicted an increase of 23.6m barrels for the week ending 17 April , far higher than the previous record build of 19.3m barrels .
Although not quite as big an increase @ @ @ @ @ @ @ to grow , with no end to the demand collapse in sight .
Production fell by 100,000 barrels to 12.2m barrels a day last week , but the fall was nowhere near enough to offset the oil inventory glut .
Volumes at Cushing in Oklahoma , the US domestic market ’ s oil storage hub , are expected to hit 76 per cent capacity this week .
However , as traders found on Monday , the reality is that the majority of any remaining storage space has already been exclusively leased , meaning @ @ @ @ @ @ @ than it seems .
The increase in US inventories came on a day in which global prices seesawed wildly in market that analysts described as “ broken ” .
Brent crude initially fell 12 per cent to reach its lowest levels since the last century , before rebounding back to sit at over $ 21 .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
West Texas Intermediate June futures , which seemed yesterday to be following May contracts into the @ @ @ @ @ @ @ $ 14.8 .
Prices were boosted further by US president Donald Trump ’ s comments that the US Navy should “ shoot and destroy ” Iranian gunboats that harass tankers in the Straits of Hormuz .
Rystad Energy ’ s head of oil markets Bjorn Tonhaugen said that it was “ time to throw old perceptions of physical laws to the side and be prepared for more surprises in this broken oil market ” .
Despite today ’ s price whiplash , Tonhaugen said traders should expect further downward pressure unless dramatic action @ @ @ @ @ @ @ Unless there is a massive shock , like millions of bpd in new shut-ins or new production curbs that will handicap the oil supply tornado , or decisions by countries around the world to open up sooner and increase demand , don ’ t be surprised if a barrel of oil gets cheaper than a latte in a while ” .
The wild fluctuations in prices have underlined what many analysts had predicted : that Opec ’ s record productions cuts would prove ineffectual against the demand slump .
With demand running at @ @ @ @ @ @ @ , but cuts only reducing output by about 10 per cent , further action now looks inevitable to protect the fragile market .
Yesterday de facto Opec leader Saudi Arabia said it was ready to take further action , a stance reinforced by other producing nations like Iraq .
Read more : Analysis : Why oil prices turned negative , and might do again Opec member Nigeria said it could be compelled to make further reductions “ with or without Opec ” .
An Opec source told Reuters : “ We are in @ @ @ @ @ @ @ including the unbelievable ” .
The US ’ storage difficulties could be further heightened through imports , with satellite data showing 19 oil supertankers on their way from Saudi Arabia to the US .
The ships are estimated to be carrying 40m more barrels , which will put more pressure on oil inventories .
With nowhere to put them , Washington is reportedly considering blocking the delivery , government officials have said .
Read more : Oil : Where do we go from here ?
Senator Ted Cruz , writing on Twitter yesterday @ @ @ @ @ @ @ My message to the Saudi ’ s : TURN THE TANKERS THE HELL AROUND ” , he wrote .

US crude oil inventories near all-time highs as demand dries up
US crude oil inventories neared record levels today as producers continued to pump despite a near-total collapse in demand.
Crude inventories rose by 15m barrels in the week to April 17 to 518.6m barrels, putting them within striking distance of an all-time record of 535m barrels set in 2017.
Rystad Energy analysts had predicted an increase of 23.6m barrels for the week ending 17 April, far higher than the previous record build of 19.3m barrels.
Although not quite as big an increase as anticipated, the supply glut continued to grow, with no end to the demand collapse in sight.
Production fell by 100,000 barrels to 12.2m barrels a day last week, but the fall was nowhere near enough to offset the oil inventory glut.
Volumes at Cushing in Oklahoma, the US domestic market’s oil storage hub, are expected to hit 76 per cent capacity this week.
However, as traders found on Monday, the reality is that the majority of any remaining storage space has already been exclusively leased, meaning additional capacity is in even shorter supply than it seems.
Prices rebound in ‘broken’ market
The increase in US inventories came on a day in which global prices seesawed wildly in market that analysts described as “broken”.
Brent crude initially fell 12 per cent to reach its lowest levels since the last century, before rebounding back to sit at over $21.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
West Texas Intermediate June futures, which seemed yesterday to be following May contracts into the negative, rose 28 per cent to $14.8.
Prices were boosted further by US president Donald Trump’s comments that the US Navy should “shoot and destroy” Iranian gunboats that harass tankers in the Straits of Hormuz.
Rystad Energy’s head of oil markets Bjorn Tonhaugen said that it was “time to throw old perceptions of physical laws to the side and be prepared for more surprises in this broken oil market”.
Despite today’s price whiplash, Tonhaugen said traders should expect further downward pressure unless dramatic action to cut prices was taken:
“Unless there is a massive shock, like millions of bpd in new shut-ins or new production curbs that will handicap the oil supply tornado, or decisions by countries around the world to open up sooner and increase demand, don’t be surprised if a barrel of oil gets cheaper than a latte in a while”.
Opec in “unchartered territory”
The wild fluctuations in prices have underlined what many analysts had predicted: that Opec’s record productions cuts would prove ineffectual against the demand slump.
With demand running at almost 30 per cent lower than normal, but cuts only reducing output by about 10 per cent, further action now looks inevitable to protect the fragile market.
Yesterday de facto Opec leader Saudi Arabia said it was ready to take further action, a stance reinforced by other producing nations like Iraq.
Opec member Nigeria said it could be compelled to make further reductions “with or without Opec”.
An Opec source told Reuters: “We are in uncharted territory. Everything is possible, including the unbelievable”.
“Turn the tankers around”
The US’ storage difficulties could be further heightened through imports, with satellite data showing 19 oil supertankers on their way from Saudi Arabia to the US.
The ships are estimated to be carrying 40m more barrels, which will put more pressure on oil inventories.
With nowhere to put them, Washington is reportedly considering blocking the delivery, government officials have said.
Senator Ted Cruz, writing on Twitter yesterday, put it more prosaically:
“My message to the Saudi’s: TURN THE TANKERS THE HELL AROUND”, he wrote.


cityam--2020-04-23--US jobless claims hit 26m since coronavirus lockdown began

The number of Americans making jobless claims surged again last week , meaning roughly 26m people made unemployment claims in a five-week period that has seen coronavirus wipe out all of the jobs created since the financial crisis .
New jobless claims hit 4.4m last week , the US Labor Department said today .
This was a slight fall from last week ’ s figure of 5.2m but would have been unheard of before the coronavirus crisis .
The highest weekly jobless claims figure during the 2008-9 crash was around 800,000 .
The surge in new claims for unemployment benefits @ @ @ @ @ @ @ on the world ’ s biggest economy .
The International Monetary Fund ( IMF ) has said US GDP could shrink by six per cent in 2020 .
The US now has more than half a million cases of coronavirus .
Almost 28,000 people have died .
However , there have been some signs that the number of new cases is peaking .
Coronavirus will continue to wreak havoc on the economy , however .
JP Morgan analyst Daniel Silver said the US unemployment rate could hit 20 per cent .
He said @ @ @ @ @ @ @ had likely come in lower-wage industries such as transport , food services , entertainment and accommodation .
However , Silver said : “ We expect job losses to spread much more widely to white-collar occupations… as a broader recession reverberates through the economy.
” There have been a number of protests against coronavirus lockdown measures across the US in recent days , mostly in traditionally Republican areas .
US President Donald Trump has fanned some of the resentment over lockdowns and their economic effects .
However , with coronavirus still spreading , reopening @ @ @ @ @ @ @ puts the President in a difficult position in an election year .
The data today showed that Colorado and New York , the state most affected by coronavirus , suffered the biggest increase in jobless claims last week with more than 50,000 each .
The highest insured unemployment rates – the percentage of people receiving jobless benefits – were in Michigan ( 17.4 per cent ) , Rhode Island ( 15 per cent ) , and Nevada ( 13.7 per cent ) .
Stock markets took little notice of the surge in unemployment @ @ @ @ @ @ @ , however .
The lack of movement following economic data has been a trend during the coronavirus crisis , with investors choosing to focus on stimulus measures from governments and central banks .
Wall Street ’ s S & P 500 and Nasdaq indices were set to open higher .
The Dow Jones was scheduled for a small drop , according to futures prices .
Neil Birrell , chief investment officer at Premier Miton Investors , said : ‘ It is difficult to know just how bad an employment number , or any @ @ @ @ @ @ @ to hurt markets .
“ As bad as it sounds , another 4.42m initial jobless claims in the US is not it , whilst the government and the [ US Federal Reserve ] are standing firm .
Policy vs. reality , for now policy is winning .
”

US jobless claims hit 26m since coronavirus lockdown began
The number of people losing their jobs in the US has surged at an unprecedented rate amid the coronavirus outbreak
The number of Americans making jobless claims surged again last week, meaning roughly 26m people made unemployment claims in a five-week period that has seen coronavirus wipe out all of the jobs created since the financial crisis.
New jobless claims hit 4.4m last week, the US Labor Department said today. This was a slight fall from last week’s figure of 5.2m but would have been unheard of before the coronavirus crisis. The highest monthly jobless claims figure during the 2008-9 crash was around 800,000.
The surge in new claims for unemployment benefits highlights the huge impact coronavirus is having on the world’s biggest economy. The International Monetary Fund (IMF) has said US GDP could shrink by six per cent in 2020.
The US now has more than half a million cases of coronavirus. Almost 28,000 people have died. However, there have been some signs that the number of new cases is peaking.
Coronavirus will continue to wreak havoc on the economy, however. JP Morgan analyst Daniel Silver said the US unemployment rate could hit 20 per cent.
He said most of the job losses so far had likely come in lower-wage industries such as transport, food services, entertainment and accommodation.
However, Silver said: “We expect job losses to spread much more widely to white-collar occupations… as a broader recession reverberates through the economy.”
US faces lockdown dilemma
There have been a number of protests against coronavirus lockdown measures across the US in recent days, mostly in traditionally Republican areas.
US President Donald Trump has fanned some of the resentment over lockdowns and their economic effects. However, with coronavirus still spreading, reopening the economy could be highly dangerous and puts the President in a difficult position in an election year.
The data today showed that Colorado and New York, the state most affected by coronavirus, suffered the biggest increase in jobless claims last week with more than 50,000 each.
The highest insured unemployment rates – the percentage of people receiving jobless benefits – were in Michigan (17.4 per cent), Rhode Island (15 per cent), and Nevada (13.7 per cent).
Stock markets took little notice of the surge in unemployment in the world’s largest economy, however.
The lack of movement following economic data has been a trend during the coronavirus crisis, with investors choosing to focus on stimulus measures. Congress is today expected to pass a $480bn (£390bn) stimulus bill that will take its total cash injection to around $3 trillion.
Wall Street’s S&P 500 and Nasdaq indices were set to open higher. The Dow Jones was scheduled for a small drop, according to futures prices.
Neil Birrell, chief investment officer at Premier Miton Investors, said: ‘It is difficult to know just how bad an employment number, or any other economic data point needs to be to hurt markets.
“As bad as it sounds, another 4.42m initial jobless claims in the US is not it, whilst the government and the [US Federal Reserve] are standing firm. Policy vs. reality, for now policy is winning.”


cityam--2020-04-23--UK less than a quarter way to daily coronavirus tests target

The government has reached less than a quarter of its daily coronavirus tests target with just one week to go until the deadline .
There were 22,814 Covid-19 tests administered in the 24 hours to 9am yesterday , which is well short of health secretary Matt Hancock ’ s target of 100,000 tests a day by the end of April .
There was capacity in the 24 hours to 9am yesterday to administer 48,273 tests , showing that the amount of spare capacity is growing .
The Prime Minister ’ s official spokesman said that of the 22,814 tests , @ @ @ @ @ @ @ Public Health England and labs in devolved administrations and 2,700 through the government ’ s drive through testing centres .
A further 51 were administered through the “ surveillance programme ” .
Professor John Newton , who is co-ordinating the government ’ s testing programme , said last night he was “ very confident ” the 100,000 test target will be met by the end of the month .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
He told ITV @ @ @ @ @ @ @ capacity ” to reach the target .
Labour leader Sir Keir Starmer pressed the government on why it was so short of its testing target at yesterday ’ s Prime Minister ’ s Questions .
He said “ we ’ re way behind the curve ” and asked first secretary Dominic Raab why there was such a large gap between capacity and actual tests carried out .
Raab , who was filling in for Boris Johnson , said : “ Our capacity for tests is now 40,000 – that is an incredibly important @ @ @ @ @ @ @ big increase , but with a project like this it does require an exponential increase in final days and final week of the programme .
“ We are working with a range of commercial partners to boost the testing to get to that 100 , 000 tests a day .
Two or our super labs are now fully functional and a Glasgow [ lab ] will be open later this week .
”

UK less than a quarter of the way to 100,000 coronavirus tests target
(Photo by Andrew Milligan – WPA Pool/Getty Images)
The government has reached less than a quarter of target of 100,000 daily coronavirus tests target with just one week to go until the deadline.
There were 22,814 Covid-19 tests administered in the 24 hours to 9am yesterday, which is well short of health secretary Matt Hancock’s target of 100,000 tests a day by the end of April.
There was capacity in the 24 hours to 9am yesterday to administer 48,273 tests, showing that the amount of spare capacity is growing.
The Prime Minister’s official spokesman said that of the 22,814 tests, 20,063 were done through the NHS, Public Health England and labs in devolved administrations. And 2,700 occurred through the government’s drive-through testing centres. A further 51 were administered through the “surveillance programme”.
Professor John Newton, who is co-ordinating the government’s testing programme, said last night he was “very confident” the 100,000 test target will be met by the end of the month.
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic.
He told ITV that the UK “certainly has the capacity” to reach the target.
Labour leader Sir Keir Starmer pressed the government on why it was so short of its testing target at yesterday’s Prime Minister’s Questions.
He said “we’re way behind the curve” and asked first secretary Dominic Raab why there was such a large gap between capacity and actual tests carried out.
Raab, who was filling in for Boris Johnson, said: “Our capacity for tests is now 40,000 – that is an incredibly important milestone.
“That will require a big increase, but with a project like this it does require an exponential increase in final days and final week of the programme.
“We are working with a range of commercial partners to boost the testing to get to that 100, 000 tests a day. Two or our super labs are now fully functional and a Glasgow [lab] will be open later this week.”