cityam--2020-08-05--Will the Bank of England change its tune on the UK economy?

The Bank of England will announce its latest monetary policy decision tomorrow , but investors and policymakers will be focused on whether Threadneedle Street has become more pessimistic about the UK economy .
Two months ago , the BoE ’ s monetary policy committee ( MPC ) raised some eyebrows when it said the UK economy would suffer an unprecedented crash but would bounce back quickly in what has been dubbed a ‘ V-shaped ’ recovery .
Read more : BoA : Bank of England to cut interest rates to zero in November Since then , the economic data has @ @ @ @ @ @ @ than the Bank envisaged .
But a quick rebound has been called into question by mounting job losses and rising coronavirus cases .
Investors will also keep a keen eye on what the Bank says about monetary policy .
It is expected to leave rates on hold at 0.1 per cent and maintain its target of £745bn of bond-buying .
But it could say something about negative interest rates , which it is weighing up for the first time .
In May , the Bank did not release official forecasts but published a @ @ @ @ @ @ @ It said the UK economy would shrink by 14 per cent in 2020 in its worst year since the 1700s .
The Bank foresaw a 25 per cent contraction in the second quarter .
However , GDP data has since beaten the Bank ’ s expectations .
MPC member and chief economist Andy Haskel said an earlier easing of the lockdown was pointing to a less severe drop in the second quarter .
That could lead the MPC to improve its growth forecast for 2020 .
Yet the Bank said in May that @ @ @ @ @ @ @ an impressive 15 per cent in 2021 .
It said it would quickly regain its pre-coronavirus size .
Economists were sceptical at the time , and have become more so .
“ The better near-term outlook will be offset by a weaker medium-term picture , ” said Sanjay Raja , economist at Deutsche Bank .
Raja pointed to three problems facing the UK economy .
One is that “ second waves [ of coronavirus ] have already infected a number of key UK trade partners ” .
The second is that “ business @ @ @ @ @ @ @ from April ’ s economic collapse .
“ Overall sales in the economy have only gradually picked up , ” Raja said .
“ The number of businesses still trading remain low.
” Read more : How badly will the UK unemployment rate spike when furlough ends ?
The third – and arguably the most important – is that unemployment is set to climb and consumer confidence remain low as a result .
The job retention scheme that has supported more than 9m workers is set to end in October .
“ The @ @ @ @ @ @ @ another dampener to growth at the end of the year , ” Raja said .
Analysts expect the Bank to hold off from tinkering with monetary policy , which is currently ultra-loose .
The Bank rate is set to stay at its current record low of 0.1 per cent .
And planned asset purchases are expected to stay steady at £745bn .
Howard Archer , chief economic adviser to the EY Item Club said that it is “ likely that the MPC will sit tight for the time being before providing further stimulus @ @ @ @ @ @ @ is currently benefiting from the recent easing of lockdown measures and tens of billions of pounds of fiscal stimulus from the chancellor .
Yet analysts are broadly expecting the Bank to increase stimulus towards the end of the year .
Anna Titareva , European economist at UBS , said : “ An increase in job losses seems inevitable.
” She added : “ Voluntary social distancing… is also likely to weigh on consumption in sectors involving social interaction.
” Read more : ‘ Incomplete ’ V-shaped economic recovery likely , says Bank policymaker @ @ @ @ @ @ @ the terms of its ultra-cheap lending to banks more generous in the autumn or winter “ or increasing the pace or size of the asset purchases ” .
Archer said he expected the Bank to announce more asset purchases worth £100bn “ either at its September or – more likely – November meetings ” .
Bank of England governor Andrew Bailey in May said negative interest rates were under “ active review ” for the first time .
It is currently reviewing the “ effective lower bound ” ( ELB ) .
That @ @ @ @ @ @ @ rate cut is no longer beneficial to the economy .
Raja said : “ We think a decision on the ELB is near , and we should likely hear the outcome either at the August or September MPC meetings.
” Read more : What are negative interest rates and will the UK turn to them ?
“ When the decision comes , our view is the MPC will buy itself more policy space and lower the ELB marginally into negative territory.
” That does not necessarily mean the Bank would turn rates negative @ @ @ @ @ @ @ this issue .
Titareva said : “ We doubt that the MPC would choose to cut Bank Rate into negative territory before adopting other unconventional policies .
”

Will the Bank of England change its tune on the UK economy?
The Bank of England could revise its rough predictions for the UK economy
The Bank of England will announce its latest monetary policy decision tomorrow, but investors and policymakers will be focused on whether Threadneedle Street has become more pessimistic about the UK economy.
Two months ago, the BoE’s monetary policy committee (MPC) raised some eyebrows when it said the UK economy would suffer an unprecedented crash but would bounce back quickly in what has been dubbed a ‘V-shaped’ recovery.
Since then, the economic data has in fact been a bit more positive than the Bank envisaged. But a quick rebound has been called into question by mounting job losses and rising coronavirus cases.
Investors will also keep a keen eye on what the Bank says about monetary policy. It is expected to leave rates on hold at 0.1 per cent and maintain its target of £745bn of bond-buying. But it could say something about negative interest rates, which it is weighing up for the first time.
Bank of England could lower growth forecasts
In May, the Bank did not release official forecasts but published a “plausible illustrative economic scenario”.
It said the UK economy would shrink by 14 per cent in 2020 in its worst year since the 1700s. The Bank foresaw a 25 per cent contraction in the second quarter.
However, GDP data has since beaten the Bank’s expectations. MPC member and chief economist Andy Haskel said an earlier easing of the lockdown was pointing to a less severe drop in the second quarter. That could lead the MPC to improve its growth forecast for 2020.
Yet the Bank said in May that the UK economy could well grow by an impressive 15 per cent in 2021. It said it would quickly regain its pre-coronavirus size.
Economists were sceptical at the time, and have become more so. “The better near-term outlook will be offset by a weaker medium-term picture,” said Sanjay Raja, economist at Deutsche Bank.
Economists worry that unemployment and social distancing could hold back growth in the UK economy
Raja pointed to three problems facing the UK economy. One is that “second waves [of coronavirus] have already infected a number of key UK trade partners”.
The second is that “business activity remains weak” three months on from April’s economic collapse. “Overall sales in the economy have only gradually picked up,” Raja said. “The number of businesses still trading remain low.”
The third – and arguably the most important – is that unemployment is set to climb and consumer confidence remain low as a result.
The job retention scheme that has supported more than 9m workers is set to end in October. “The reversal in fiscal stimulus will act as another dampener to growth at the end of the year,” Raja said.
Monetary policy set to remain on hold
Analysts expect the Bank to hold off from tinkering with monetary policy, which is currently ultra-loose. The Bank rate is set to stay at its current record low of 0.1 per cent. And planned asset purchases are expected to stay steady at £745bn.
Howard Archer, chief economic adviser to the EY Item Club said that it is “likely that the MPC will sit tight for the time being before providing further stimulus action”. He said the economy is currently benefiting from the recent easing of lockdown measures and tens of billions of pounds of fiscal stimulus from the chancellor.
Yet analysts are broadly expecting the Bank to increase stimulus towards the end of the year.
Anna Titareva, European economist at UBS, said: “An increase in job losses seems inevitable.” She added: “Voluntary social distancing… is also likely to weigh on consumption in sectors involving social interaction.”
She said the MPC might consider making the terms of its ultra-cheap lending to banks more generous in the autumn or winter “or increasing the pace or size of the asset purchases”.
Archer said he expected the Bank to announce more asset purchases worth £100bn “either at its September or – more likely – November meetings”.
Negative interest rates
Bank of England governor Andrew Bailey in May said negative interest rates were under “active review” for the first time.
It is currently reviewing the “effective lower bound” (ELB). That is the point at which an interest rate cut is no longer beneficial to the economy.
Raja said: “We think a decision on the ELB is near, and we should likely hear the outcome either at the August or September MPC meetings.”
“When the decision comes, our view is the MPC will buy itself more policy space and lower the ELB marginally into negative territory.” That does not necessarily mean the Bank would turn rates negative, however.
Analysts are divided on this issue. Titareva said: “We doubt that the MPC would choose to cut Bank Rate into negative territory before adopting other unconventional policies.”


cityam--2020-08-05--Tiktok reveals new measures to fight misinformation for US 2020 election

Tiktok has unveiled a host of new measures it is undertaking to fight misinformation ahead of the US 2020 presidential election , as the app tries to appease threats of a total ban .
Tiktok , which is under fire for its alleged links to the Chinese government via parent firm Bytedance , said it was working with experts from the US Department of Homeland Security to “ protect against foreign influence ” on the app .
Tiktok will allow users to report election-related misinformation via a tool inside the app , and is expanding its third-party fact-checking partnerships .
@ @ @ @ @ @ @ rival Reels in the UK It comes as Bytedance continues to hold talks with Microsoft about a sale of its US operations in an effort to relieve pressure on the company .
US President Donald Trump has given the pair until 15 September to seal the deal , or he will ban the app citing national security concerns .
“ While Tiktok isn ’ t the go-to app to follow news or politics , we ’ re focused on supporting our users with education and authoritative information on important public issues , ” @ @ @ @ @ @ @ Vanessa Pappas .
“ We always strive to be more transparent about our policies and content moderation , and today we ’ re updating these guidelines to better reflect the scope of our existing policies.
” Tiktok said it would not be accepting paid political ads in the run-up to the US election , “ because the nature of paid political ads isn ’ t something we think fits with the experience our users expect on Tiktok ” .
The presence of paid political ads on social media platforms has been a matter @ @ @ @ @ @ @ would impinge on freedom of speech to ban them .
Separately , Tiktok ’ s US arm is said to have been valued by Microsoft during the talks at anywhere between $ 10bn and $ 30bn .
CNBC reported the talks could finish within the next three weeks , ahead of schedule .

Tiktok reveals new measures to fight misinformation for US 2020 election
TikTok is awash with gurus offering investment advice.
Tiktok has unveiled a host of new measures it is undertaking to fight misinformation ahead of the US 2020 presidential election, as the app tries to appease threats of a total ban.
Tiktok, which is under fire for its alleged links to the Chinese government via parent firm Bytedance, said it was working with experts from the US Department of Homeland Security to “protect against foreign influence” on the app.
Tiktok will allow users to report election-related misinformation via a tool inside the app, and is expanding its third-party fact-checking partnerships.
It comes as Bytedance continues to hold talks with Microsoft about a sale of its US operations in an effort to relieve pressure on the company.
US President Donald Trump has given the pair until 15 September to seal the deal, or he will ban the app citing national security concerns.
“While Tiktok isn’t the go-to app to follow news or politics, we’re focused on supporting our users with education and authoritative information on important public issues,” said Tiktok’s US general manager Vanessa Pappas.
“We always strive to be more transparent about our policies and content moderation, and today we’re updating these guidelines to better reflect the scope of our existing policies.”
Tiktok said it would not be accepting paid political ads in the run-up to the US election, “because the nature of paid political ads isn’t something we think fits with the experience our users expect on Tiktok”.
The presence of paid political ads on social media platforms has been a matter of debate, with Facebook saying it would impinge on freedom of speech to ban them.
Separately, Tiktok’s US arm is said to have been valued by Microsoft during the talks at anywhere between $10bn and $30bn.
CNBC reported the talks could finish within the next three weeks, ahead of schedule.


cityam--2020-08-05--Boohoo inquiry calls for former Leicester factory workers to give evidence

The inquiry into poor working conditions at factories used by Boohoo suppliers in Leicester has called for current and former employees to give evidence .
Alison Levitt QC , who is leading the inquiry , urged members of the public to give evidence on working conditions in factories in Leicester , what Boohoo knew about the conditions and suggestions for improvements in future .
Read more : Boohoo to open ‘ model garment factory ’ in Leicester The inquiry is keen to hear from current and former factory workers , Boohoo employees , and factory inspectors .
Local community groups @ @ @ @ @ @ @ relevant experience have also been asked to contribute .
A secure and confidential website has been set up to collect the information , with a deadline of 26 August .
The report on Boohoo will be published by 15 September .
The e-commerce retailer launched an independent review of its UK supply chain following allegations of poor conditions and underpayment of workers at the Jaswal Fashions factory in Leicester .
The Environmental Audit Committee ( EAC ) wrote to Boohoo last month accusing it of being aware of issues in Leicester clothing factories @ @ @ @ @ @ @ and then-chief executive Carol Kane appeared in front of the committee of MPs in 2018 over links Boohoo “ may have to illegally low pay in Leicester garment factories ” , the letter said .
Read more : The Boohoo scandal shouldn ’ t shock anyone — modern slavery is a pandemic EAC chairman Philip Dunne said : “ It is incredible that over a year since the committee highlighted illegal working practices in its supply chain , Boohoo has publicly denied any knowledge of what has been happening for years.
” “ @ @ @ @ @ @ @ pandemic and the ensuing outrage about working practices in their supply chain for Boohoo finally to be taken to task for turning a blind eye , ” Dunne added .

Boohoo inquiry calls for former Leicester factory workers to give evidence
Boohoo has bought failing brands before, turning them into online-only brands.
The inquiry into poor working conditions at factories used by Boohoo suppliers in Leicester has called for current and former employees to give evidence.
Alison Levitt QC, who is leading the inquiry, urged members of the public to give evidence on working conditions in factories in Leicester, what Boohoo knew about the conditions and suggestions for improvements in future.
The inquiry is keen to hear from current and former factory workers, Boohoo employees, and factory inspectors.
Local community groups, NGOs, politicians and journalists with relevant experience have also been asked to contribute.
A secure and confidential website has been set up to collect the information, with a deadline of 26 August. The report on Boohoo will be published by 15 September.
The e-commerce retailer launched an independent review of its UK supply chain following allegations of poor conditions and underpayment of workers at the Jaswal Fashions factory in Leicester.
The Environmental Audit Committee (EAC) wrote to Boohoo last month accusing it of being aware of issues in Leicester clothing factories at least two years ago.
Co-founder and then-chief executive Carol Kane appeared in front of the committee of MPs in 2018 over links Boohoo “may have to illegally low pay in Leicester garment factories”, the letter said.
EAC chairman Philip Dunne said: “It is incredible that over a year since the committee highlighted illegal working practices in its supply chain, Boohoo has publicly denied any knowledge of what has been happening for years.”
“It is shameful that it took a pandemic and the ensuing outrage about working practices in their supply chain for Boohoo finally to be taken to task for turning a blind eye,” Dunne added.


cityam--2020-08-06--Government wasted £150m on unusable face masks bought from banker

The government is facing calls to investigate its procurement of personal protective equipment ( PPE ) during the pandemic , after it emerged ministers spent at least £150m on unusable face masks from a family investment firm .
The face masks , which were part of a £252m government contract with investment firm Ayanda Capital signed in April , were deemed unsafe by the NHS and have not been used .
Read more : Government faces lawsuit over £108m PPE contract with pest control firm The contract included 50m high-strength FFP2 medical masks costing an estimated £150m to £180m , @ @ @ @ @ @ @ , the Times first reported .
Of these , the 44m Chinese-made masks delivered so far do not meet NHS safety standards because they have elastic ear loops instead of straps that tie around the back of the head , according to legal papers seen by City A.M .
Moreover , none of the cheaper IIR masks supplied by Ayanda have been released for use by the NHS .
London-based Ayanda Capital specialises in “ currency trading , offshore property , private equity and trade financing ” and has no history of PPE @ @ @ @ @ @ @ which is run by former investment banker Tim Horlick , is owned by the Horlick family via a holding company registered in a tax haven .
The £252m deal was brokered by Andrew Mills , an adviser to Ayanda ’ s board , who is also an adviser to Liz Truss and the Department for International Trade .
Ayanda has blamed the government for faults with the masks , saying that the investment firm had only ever discussed supplying masks with ear loops .
Ayanda insisted this had been approved by government officials @ @ @ @ @ @ @ revelations come after non-profit organisation the Good Law Project brought legal proceedings against the government over its awarding of PPE contracts during the pandemic .
Jolyon Maugham QC , who set up the Good Law Project , said he was “ staggered ” by the “ extraordinary waste [ and ] basic incompetence ” resulting from the deal .
“ We also do not understand how the government came to place — and this is the government ’ s own story — a £250m contract with a family-owned hedge fund at the direction @ @ @ @ @ @ @ by an advisor to and enthusiastic supporter of Liz Truss.
” Liberal Democrats leader Sir Ed Davey said : “ The government management of PPE in the early months of the crisis was an almost unmitigated disaster.
” The Good Law Project has also filed legal proceedings against the government for its £108m PPE contract with Pestfix , a pest control company worth just over £19,000 .
Last month City A.M. reported that the government backtracked on official documents citing the £108m deal with Pestfix , saying it reported the sum “ in @ @ @ @ @ @ @ the Good Law Project , the government said it reported the details of the contract “ in error ” , and that the Pestfix PPE contract was actually worth £32m .
“ It has come to light that the contract award notice published… on 18 May was issued in error , and a new notice with the correct details will be issued shortly ” , the letter read .
Isolation suits delivered under the Pestfix contract are currently awaiting testing , along with masks supplied by Ayanda and gowns produced by confectionary wholesaler @ @ @ @ @ @ @ : “ Throughout this global pandemic , we have been working tirelessly to deliver PPE to protect people on the frontline .
Read more : Compulsory face masks ‘ did not deter or encourage shoppers ’ in July “ Over 2.4bn items have been delivered , and more than 30 billion have been ordered from UK-based manufacturers and international partners to provide a continuous supply , which meets the needs of health and social care staff both now and in the future .
“ There is a robust process in place to ensure @ @ @ @ @ @ @ strict safety standards , with the necessary due diligence undertaken on all government contracts.
” Before the Open : Get the jump on the markets with our early morning newsletter

Government wasted £150m on unusable face masks bought from banker
The government is facing calls to investigate its procurement of personal protective equipment (PPE) during the pandemic, after it emerged ministers spent at least £150m on unusable face masks from a family investment firm.
The face masks, which were part of a £252m government contract with investment firm Ayanda Capital signed in April, were deemed unsafe by the NHS and have not been used.
The contract included 50m high-strength FFP2 medical masks costing an estimated £150m to £180m, as well as 150m cheaper IIR masks, the Times first reported.
Of these, the 44m Chinese-made masks delivered so far do not meet NHS safety standards because they have elastic ear loops instead of straps that tie around the back of the head, according to legal papers seen by City A.M.
Moreover, none of the cheaper IIR masks supplied by Ayanda have been released for use by the NHS.
London-based Ayanda Capital specialises in “currency trading, offshore property, private equity and trade financing” and has no history of PPE procurement or government contracts.
Ayanda, which is run by former investment banker Tim Horlick, is owned by the Horlick family via a holding company registered in a tax haven.
The £252m deal was brokered by Andrew Mills, an adviser to Ayanda’s board, who is also an adviser to Liz Truss and the Department for International Trade.
Ayanda has blamed the government for faults with the masks, saying that the investment firm had only ever discussed supplying masks with ear loops. Ayanda insisted this had been approved by government officials before the contract was signed.
The revelations come after non-profit organisation the Good Law Project brought legal proceedings against the government over its awarding of PPE contracts during the pandemic.
Jolyon Maugham QC, who set up the Good Law Project, said he was “staggered” by the “extraordinary waste [and] basic incompetence” resulting from the deal.
“We also do not understand how the government came to place — and this is the government’s own story — a £250m contract with a family-owned hedge fund at the direction of a box fresh £100 company owned by an advisor to and enthusiastic supporter of Liz Truss.”
Liberal Democrats leader Sir Ed Davey said: “The government management of PPE in the early months of the crisis was an almost unmitigated disaster.”
The Good Law Project has also filed legal proceedings against the government for its £108m PPE contract with Pestfix, a pest control company worth just over £19,000.
Last month City A.M. reported that the government backtracked on official documents citing the £108m deal with Pestfix, saying it reported the sum “in error”.
In a letter to the Good Law Project the government said the Pestfix PPE contract was actually worth £32m.
“It has come to light that the contract award notice published… on 18 May was issued in error, and a new notice with the correct details will be issued shortly”, the letter read.
Isolation suits delivered under the Pestfix contract are currently awaiting testing, along with masks supplied by Ayanda and gowns produced by confectionary wholesaler Clandeboye Agencies.
A government spokesman said: “Throughout this global pandemic, we have been working tirelessly to deliver PPE to protect people on the frontline.
“Over 2.4bn items have been delivered, and more than 30 billion have been ordered from UK-based manufacturers and international partners to provide a continuous supply, which meets the needs of health and social care staff both now and in the future.
“There is a robust process in place to ensure orders are of high quality and meet strict safety standards, with the necessary due diligence undertaken on all government contracts.”
Before the Open: Get the jump on the markets with our early morning newsletter


cityam--2020-08-06--Uber snaps up UK taxi tech firm Autocab

Uber snaps up UK taxi tech firm Autocab

Uber has acquired taxi tech firm Autocab , in a move that will allow it to operate in areas it has yet to launch in .
The Stockport-based company sells booking and dispatch software to private hire firms , and will allow Uber to link people who open its app in locations where it does not run with other providers .
Uber said the taxi technology will be launched in the UK at first , before expanding the service to other countries .
Autocab currently has operations in 20 countries .
Read more : Uber launches first commuter boat service @ @ @ @ @ @ @ successfully with taxi and private hire operators around the world for more than 30 years and Uber has a lot to learn from their experience , ” said Uber ’ s northern and eastern European boss Jamie Heywood .
Uber added it will also look into other ways to boost revenues linked to its platform for services , such as delivery .
The size of the acquisition and terms of the deal were not disclosed .
Uber revealed the top cities it thinks will benefit from the taxi deal , including Oxford , @ @ @ @ @ @ @ Read more : Uber to assist officials with coronavirus test and trace scheme Autocab is set to remain independent from Uber with its own board , and will continue to develop its software for use by other taxi and private hire companies .
Autocab chief Safa Alkatab said : “ Working with Uber we can scale up our ambitions , providing hundreds of thousands of additional trips for our customers , and help cement the place of licensed operators in their local community .
”

Uber snaps up UK taxi tech firm Autocab
Uber has acquired taxi tech firm Autocab, in a move that will allow it to operate in areas it has yet to launch in.
The Stockport-based company sells booking and dispatch software to private hire firms, and will allow Uber to link people who open its app in locations where it does not run with other providers.
Uber said the taxi technology will be launched in the UK at first, before expanding the service to other countries. Autocab currently has operations in 20 countries.
“Autocab has worked successfully with taxi and private hire operators around the world for more than 30 years and Uber has a lot to learn from their experience,” said Uber’s northern and eastern European boss Jamie Heywood.
Uber added it will also look into other ways to boost revenues linked to its platform for services, such as delivery.
The size of the acquisition and terms of the deal were not disclosed.
Uber revealed the top cities it thinks will benefit from the taxi deal, including Oxford, Tunbridge Wells, Colchester and Ipswich.
Autocab is set to remain independent from Uber with its own board, and will continue to develop its software for use by other taxi and private hire companies.
Autocab chief Safa Alkatab said: “Working with Uber we can scale up our ambitions, providing hundreds of thousands of additional trips for our customers, and help cement the place of licensed operators in their local community.”


cityam--2020-08-06--Economists question Bank of England’s ‘optimistic’ forecast

The Bank of England today kept interest rates on hold and said the UK economy would not shrink as much as initially thought this year , but it said the recovery would take longer .
But some economists have questioned the assumptions , arguing that high unemployment will damage the economy .
Read more : Bank of England says UK economy ’ s recovery will take longer than expected The Bank said the UK economy was likely to shrink by 9.5 per cent this year .
It predicted it would grow nine per cent in 2021 .
In May , @ @ @ @ @ @ @ per cent this year and grow by 15 per cent in 2021 .
The Bank unanimously left interest rates on hold at their record low levels .
It also added negative interest rates to its ‘ toolbox ’ of possible measures for the first time .
Here ’ s what economists made of the Bank ’ s pronouncements .
“ Some of [ the bank ’ s ] assumptions around the return of furloughed employees to work in the fourth quarter seem optimistic , ” said Yael Selfin , chief economist at KPMG @ @ @ @ @ @ @ 7.5 per cent this year , then drop to six per cent at the end of 2021 .
That would mean unemployment staying below the levels seen in the financial crisis .
Selfin said : “ The cloud of a second wave and further localised lockdowns is likely to keep many businesses in sectors such as hospitality operating at reduced capacity at best.
” She said they will be “ unable to bring back a large share of their workers ” .
Jacqui Douglas , chief european macro strategist at TD Securities , @ @ @ @ @ @ @ some of the most optimistic macro forecasts on the street.
” The Bank said the UK economy will recover its pre-coronavirus size by the end of next year .
But Douglas said it is “ far out on a limb ” in looking for such a “ swift economic recovery ” .
“ We ’ re likely in for a round of further growth downgrades [ in ] November.
” She also predicted “ upgrades to the unemployment rate ” as “ it becomes increasingly clear how many furloughed employees end up outright @ @ @ @ @ @ @ : UK economy could take four years to recover , says EY Ruth Gregory , senior UK economist at consultancy Capital Economics , noted that the Bank ’ s minutes stressed that the risks to the forecasts are “ skewed to the downside ” .
“ So the MPC [ monetary policy committee ] still doesn ’ t seem to have much faith in its own forecasts , ” she said .
BoE set to inject more stimulus later on , analysts say The Bank remained in wait-and-see mode today .
It kept @ @ @ @ @ @ @ scheme at its current target of £745bn .
But economists expect it to have to do more later on in the year .
Gregory said : “ The MPC thinks that it has done enough for now.
” But she added : “ We have not changed our view the MPC will expand QE further , perhaps by £100bn in November and by £150bn in total in 2021.
” Rain Newton-Smith , CBI chief economist , said : “ Further monetary stimulus may be necessary if we see additional disruptions to demand or @ @ @ @ @ @ @ happen in the event of more local lockdowns or stalled progress on Brexit negotiations ” .
“ The government must do the heavy lifting on both of these near-term threats.
” Read more : BoA : Bank of England to cut interest rates to zero in November Victoria Clarke , economist at Investec , said : “ We judge that the most likely course of action is that the BoE opts to top up its asset purchase total.
” “ We expect that this will be something the MPC will consider in November.
@ @ @ @ @ @ @ interest rates have been added to the ‘ toolbox ’ of possible measures for the first time after a review of the policy .
Negative interest rates would mean banks were penalised for keeping their spare cash at the Bank .
This is supposed to encourage them to lend .
Richard Pearson , director at investment platform EQI , said : “ Negative interest rates really are a last resort , so the smart money was against the Bank of England actually bringing them in this morning .
But that doesn ’ t @ @ @ @ @ @ @ the line.
” Read more : What are negative interest rates and will the UK turn to them ?
“ Rates are still at record lows and future moves to negative territory are yet to be ruled out by the governor .
For those stuck on low savings rates it is yet another signal that the stock market could be a better alternative for their money.
” Clarke said : “ A material deterioration in the economic backdrop… brings with it the risk that the MPC could be arm twisted into lowering bank @ @ @ @ @ @ @ next year.
” But she said the Bank would likely try other policies first .

Economists question Bank of England’s ‘optimistic’ forecast
Economists said the Bank of England was taking an upbeat view of the state of the UK economy
The Bank of England today kept interest rates on hold and said the UK economy would not shrink as much as initially thought this year, but it said the recovery would take longer.
But some economists have questioned the assumptions, arguing that high unemployment will damage the economy.
The Bank said the UK economy was likely to shrink by 9.5 per cent this year. It predicted it would grow nine per cent in 2021. In May, it said GDP could shrink by 14 per cent this year and grow by 15 per cent in 2021.
The Bank unanimously left interest rates on hold at their record low levels. It also added negative interest rates to its ‘toolbox’ of possible measures for the first time.
Here’s what economists made of the Bank’s pronouncements.
Bank ‘out on a limb’ with upbeat forecast
“Some of [the bank’s] assumptions around the return of furloughed employees to work in the fourth quarter seem optimistic,” said Yael Selfin, chief economist at KPMG.
The Bank said unemployment would hit 7.5 per cent this year, then drop to six per cent at the end of 2021. That would mean unemployment staying below the levels seen in the financial crisis.
Selfin said: “The cloud of a second wave and further localised lockdowns is likely to keep many businesses in sectors such as hospitality operating at reduced capacity at best.”
She said they will be “unable to bring back a large share of their workers”.
Jacqui Douglas, chief european macro strategist at TD Securities, said: “The BoE still has some of the most optimistic macro forecasts on the street.”
The Bank said the UK economy will recover its pre-coronavirus size by the end of next year. But Douglas said it is “far out on a limb” in looking for such a “swift economic recovery”.
“We’re likely in for a round of further growth downgrades [in] November.” She also predicted “upgrades to the unemployment rate” as “it becomes increasingly clear how many furloughed employees end up outright losing their jobs”.
Ruth Gregory, senior UK economist at consultancy Capital Economics, noted that the Bank’s minutes stressed that the risks to the forecasts are “skewed to the downside”.
“So the MPC [monetary policy committee] still doesn’t seem to have much faith in its own forecasts,” she said.
BoE set to inject more stimulus later on, analysts say
The Bank remained in wait-and-see mode today. It kept its quantitative easing (QE) bond-buying scheme at its current target of £745bn. But economists expect it to have to do more later on in the year.
Gregory said: “The MPC thinks that it has done enough for now.” But she added: “We have not changed our view the MPC will expand QE further, perhaps by £100bn in November and by £150bn in total in 2021.”
Rain Newton-Smith, CBI chief economist, said: “Further monetary stimulus may be necessary if we see additional disruptions to demand or supply.” She said this “could happen in the event of more local lockdowns or stalled progress on Brexit negotiations”.
“The government must do the heavy lifting on both of these near-term threats.”
Victoria Clarke, economist at Investec, said: “We judge that the most likely course of action is that the BoE opts to top up its asset purchase total.”
“We expect that this will be something the MPC will consider in November.”
Negative interest rates in ‘toolbox’
The Bank today said that negative interest rates have been added to the ‘toolbox’ of possible measures for the first time after a review of the policy.
Negative interest rates would mean banks were penalised for keeping their spare cash at the Bank. This is supposed to encourage them to lend.
Richard Pearson, director at investment platform EQI, said: “Negative interest rates really are a last resort, so the smart money was against the Bank of England actually bringing them in this morning. But that doesn’t mean it won’t happen down the line.”
“Rates are still at record lows and future moves to negative territory are yet to be ruled out by the governor. For those stuck on low savings rates it is yet another signal that the stock market could be a better alternative for their money.”
Clarke said: “A material deterioration in the economic backdrop… brings with it the risk that the MPC could be arm twisted into lowering bank rate into negative territory at some point next year.” But she said the Bank would likely try other policies first.


cityam--2020-08-06--Ministers set to impose quarantine restrictions on Belgium

The government is preparing to hit travellers from Belgium with mandatory quarantine restrictions after a spike in coronavirus cases in the country .
The Daily Mail reported that ministers would sign off on the decision to impose 14-day self-isolation measures on all those travelling from Belgium to the UK at a meeting this evening .
Read more : Government imposes quarantine on travellers from Luxembourg It added that the restrictions would either come into effect at midnight tonight or tomorrow .
If the decision is signed off , Belgium will be the third country to be taken off the list @ @ @ @ @ @ @ following Spain and Luxembourg .
The Department for Transport declined to comment on the report .
According to the European Centre for Disease Prevention and Control ( EDDC ) , over the last 14 days the number of cases per 100,000 in Belgium as risen to 49.6 .
This is one of the highest rates in Europe , behind only Luxembourg ( 194.2 ) , Romania ( 83.0 ) and Spain ( 78.0 ) .
Before the Open newsletter : Start your day with the City View podcast and key market data By @ @ @ @ @ @ @ currently stands at 14.1 per 100,000 .
In total , there have been over 71,000 confirmed infections in Belgium , with 9,852 people having died from the virus so far .
Due to the the size of Belgium ’ s population , that means that the country has one of the highest per capita death rates from the disease in the world .
The decision to implement the restrictions will cause havoc for the thousands of people who travel between London and Belgium on week on flights and on the Eurostar .
A @ @ @ @ @ @ @ it would adapt its schedule according to demand if such measures are introduced .
Ministers have warned that people should expect more restrictions in the coming days as they fight to prevent a second wave of infections in the UK .
A series of local lockdowns have already been implemented , while officials are also reportedly considering putting in place restrictions on travellers from a host of new countries .
Read more : Airlines push for regional approach after ‘ foolish ’ Spain quarantine These include favoured destinations such as France and Germany @ @ @ @ @ @ @ such as Croatia and Romania .
The Department for Transport has said that the list of exempt countries will be kept under constant review .

Ministers set to impose quarantine restrictions on Belgium
The government is preparing to hit travellers from Belgium with mandatory quarantine restrictions after a spike in coronavirus cases in the country.
The Daily Mail reported that ministers would sign off on the decision to impose 14-day self-isolation measures on all those travelling from Belgium to the UK at a meeting this evening.
It added that the restrictions would either come into effect at midnight tonight or tomorrow.
However, the Guardian reported that the restrictions would not be put in place until the weekend.
If the decision is signed off, Belgium will be the third country to be taken off the list of countries exempt from quarantine restrictions, following Spain and Luxembourg.
The Department for Transport declined to comment on the report.
According to the European Centre for Disease Prevention and Control (EDDC), over the last 14 days the number of cases per 100,000 in Belgium as risen to 49.6.
This is one of the highest rates in Europe, behind only Luxembourg (194.2), Romania (83.0) and Spain (78.0).
Before the Open newsletter: Start your day with the City View podcast and key market data
By contrast, the rate in the UK currently stands at 14.1 per 100,000.
In total, there have been over 71,000 confirmed infections in Belgium, with 9,852 people having died from the virus so far.
Due to the the size of Belgium’s population, that means that the country has one of the highest per capita death rates from the disease in the world.
The decision to implement the restrictions will cause havoc for the thousands of people who travel between London and Belgium on week on flights and on the Eurostar.
A spokesman for the rail link said that it would adapt its schedule according to demand if such measures are introduced.
Ministers have warned that people should expect more restrictions in the coming days as they fight to prevent a second wave of infections in the UK.
A series of local lockdowns have already been implemented, while officials are also reportedly considering putting in place restrictions on travellers from a host of new countries.
These include favoured destinations such as France and Germany, as well as other European countries such as Croatia and Romania.
The Department for Transport has said that the list of exempt countries will be kept under constant review.


cityam--2020-08-06--Ryanair increases services to 60 per cent of pre-Covid levels in August

Budget carrier Ryanair today said that it had successfully increased its flight schedule to over 60 per cent of pre-Covid levels as passenger numbers continue to grow after lockdown .
Having restarted its services in June , the Irish airline said that it would fly 11,000 flights a week throughout the month , over 1,600 routes .
Read more : Lufthansa posts worst loss in history amid warnings of prolonged air travel slump In September , it is targeting raising service levels again to 70 per cent of its normal schedule .
Ryanair ’ s current service levels compare favourably @ @ @ @ @ @ @ Easyjet now looking to fly just 40 per cent of services through the third quarter .
However , fellow low-cost flier Wizz Air flew at 74 per cent capacity in July , although it is considerably smaller than the other two carriers .
Before the Open newsletter : Start your day with the City View podcast and key market data In July , Ryanair flew 4.4m customers in total , despite the government reimposing quarantine restrictions on Spain , one of the UK ’ s most popular holiday destinations .
Along with Easyjet @ @ @ @ @ @ @ continue to fly to Spain regardless of the restrictions , though said booking for the coming weeks had fallen due to fears of a surge in infections .
Read more : Easyjet chief : We will keep flying to quarantined countries if there is demand Ministers panicked , he said , and implemented a blanket quarantine rather than restricting travel to regions where there has been a prominent surge in new cases .
Subsequently , the restrictions have been extended to Luxembourg , with Belgium broadly expected to follow suit imminently .

Ryanair increases services to 60 per cent of pre-Covid levels in August
Ryanair is among the low-cost carriers who lambasted Lufthansa’s ghost flight comment.
Budget carrier Ryanair today said that it had successfully increased its flight schedule to over 60 per cent of pre-Covid levels as passenger numbers continue to grow after lockdown.
Having restarted its services in June, the Irish airline said that it would fly 11,000 flights a week throughout the month, over 1,600 routes.
In September, it is targeting raising service levels again to 70 per cent of its normal schedule.
Ryanair’s current service levels compare favourably with its competitors, with main rival Easyjet now looking to fly just 40 per cent of services through the third quarter.
However, fellow low-cost flier Wizz Air flew at 74 per cent capacity in July, although it is considerably smaller than the other two carriers.
Before the Open newsletter: Start your day with the City View podcast and key market data
In July, Ryanair flew 4.4m customers in total, despite the government reimposing quarantine restrictions on Spain, one of the UK’s most popular holiday destinations.
Along with Easyjet, the carrier said that it would continue to fly to Spain regardless of the restrictions, though said booking for the coming weeks had fallen due to fears of a surge in infections.
Chief executive Michael O’Leary called the government’s decision a “badly managed overreaction”.
Ministers panicked, he said, and implemented a blanket quarantine rather than restricting travel to regions where there has been a prominent surge in new cases.
Subsequently, the restrictions have been extended to Luxembourg, with Belgium broadly expected to follow suit imminently.


cityam--2020-08-06--Animal Crossing powers five-fold profit jump for Nintendo

Nintendo posted a more than five-fold jump in quarterly profit today , as the success of its Switch console and standout game Animal Crossing supported the games maker during the pandemic .
People stuck at home around the world flocked to titles like Animal Crossing , which allows users to create life on an idyllic island , which sold 10.6m units in Nintendo ’ s first fiscal quarter alone .
Animal Crossing ’ s total sales have now reached 22.4m since it launched in March , making it second only to Mario Kart 8 Deluxe .
More than half of @ @ @ @ @ @ @ quarter were first used to play the title .
Read more : Nintendo shares level up to 12-year high Operating profit for the three months to the end of June was ¥144.7bn , more than double the average analyst estimate of ¥71bn .
Nintendo sold 5.7m Switch units in the first quarter , with 3m of those units being its classic hybrid home/portable Switch console .
Nintendo sold 2.6m units of the portable-only Switch Lite , which was supported by the sheer demand for Animal Crossing while production was low .
“ The @ @ @ @ @ @ @ consider that throughout the entire quarter , the Switch was hard to get in all major markets , ” said Serkan Toto , founder of game industry consultancy Kantan Games .
Nintendo was plagued by production woes during the pandemic , as it could not produce enough consoles to meet the unprecedented demand .
However it said these problems were easing as manufacturing got back on track .
It maintained its sales forecast of 19m Switch units in the current financial year .
Read more : A further 140,000 people affected in Nintendo @ @ @ @ @ @ @ tripled , with 56 per cent of sales made via digital download in the first quarter compared to 38 per cent a year earlier , helping Nintendo ’ s products reach users and boosting profit margins .
However the pandemic pushed back plans to open a Nintendo theme park this year , leaving the electronics firm heavily dependent on the Switch .
Nintendo said it plans to release an enhanced version of its popular Pikmin franchise for Switch later this year , which was last made for the Wii U console .

Animal Crossing powers five-fold profit jump for Nintendo
Nintendo posted a more than five-fold jump in quarterly profit today, as the success of its Switch console and standout game Animal Crossing supported the games maker during the pandemic.
People stuck at home around the world flocked to titles like Animal Crossing, which allows users to create life on an idyllic island, which sold 10.6m units in Nintendo’s first fiscal quarter alone.
Animal Crossing’s total sales have now reached 22.4m since it launched in March, making it second only to Mario Kart 8 Deluxe. More than half of the new Switch devices sold in the quarter were first used to play the title.
Operating profit for the three months to the end of June was ¥144.7bn, more than double the average analyst estimate of ¥71bn.
Nintendo sold 5.7m Switch units in the first quarter, with 3m of those units being its classic hybrid home/portable Switch console.
Nintendo sold 2.6m units of the portable-only Switch Lite, which was supported by the sheer demand for Animal Crossing while production was low.
“The numbers are even more impressive when you consider that throughout the entire quarter, the Switch was hard to get in all major markets,” said Serkan Toto, founder of game industry consultancy Kantan Games.
Nintendo was plagued by production woes during the pandemic, as it could not produce enough consoles to meet the unprecedented demand. However it said these problems were easing as manufacturing got back on track.
It maintained its sales forecast of 19m Switch units in the current financial year.
Digital games sales more than tripled, with 56 per cent of sales made via digital download in the first quarter compared to 38 per cent a year earlier, helping Nintendo’s products reach users and boosting profit margins.
However the pandemic pushed back plans to open a Nintendo theme park this year, leaving the electronics firm heavily dependent on the Switch.
Nintendo said it plans to release an enhanced version of its popular Pikmin franchise for Switch later this year, which was last made for the Wii U console.


cityam--2020-08-06--YouGov: Xbox marks the spot with well-received launch

On July 23 , Microsoft hosted a digital games showcase to promote the Xbox Series X ahead of the console ’ s official launch later this year .
Expectations were high following Sony ’ s well-received PlayStation 5 reveal in June , but data from YouGov BrandIndex indicates that the event had a different reception .
Buzz scores ( which measure whether people have recently heard anything positive or negative about a brand ) for the event increased from 3.2 to 7.3 in the week leading up to the event and rose further immediately after from 7.3 to 9.8 .
@ @ @ @ @ @ @ from 9.2 to 16.3 ( July 16 – July 20 ) , and to 15.8 immediately after the event .
In the days after PlayStation ’ s similar showcase , consideration jumped by ten percentage points and buzz scores tripled .
But Microsoft may not be too worried about the comparison .
Where the PlayStation event focused on impressing customers with new hardware and exclusive games such as Spider-Man , Xbox has adopted a more platform-neutral approach .
The showcase heavily emphasised the Game Pass subscription service , which allows customers to play @ @ @ @ @ @ @ compatible platform of their choosing – whether it ’ s Xbox One , Series X , or PC – for a flat monthly fee .
Focusing on player value rather than raw power may have dulled the event ’ s impact across some metrics , but our data shows it could have positively influenced others .
Reputation scores rose from 16.1 to 25.4 within a few days ( July 23 – 28 ) of the event , while recommendations increased from 8.9 to 17.0 over the same period .
Over just three days @ @ @ @ @ @ @ also nearly doubled , climbing from 14.5 to 28.9 .
As a console showcase , Sony ’ s event may have done more to generate excitement for the PlayStation 5 than Microsoft ’ s showcase did for the Xbox Series X .
But Microsoft are increasingly uninterested in going head to head with Sony ; as long as they generate subscription revenue , it does not necessarily matter to them where consumers are playing their games .
On those terms , the event could well be considered a success .

YouGov: Xbox marks the spot with well-received launch
MIAMI, FLORIDA – JANUARY 28: Travis Kelce and Richard Sherman join the annual Xbox Sessions: Game Before the Game at M3 Studios on January 28, 2020 in Miami, Florida. (Photo by Dimitrios Kambouris/Getty Images for Xbox)
On July 23, Microsoft hosted a digital games showcase to promote the Xbox Series X ahead of the console’s official launch later this year.
Expectations were high following Sony’s well-received PlayStation 5 reveal in June, but data from YouGov BrandIndex indicates that the event had a different reception.
Buzz scores (which measure whether people have recently heard anything positive or negative about a brand) for the event increased from 3.2 to 7.3 in the week leading up to the event and rose further immediately after from 7.3 to 9.8. Consideration also rose ahead of the showcase from 9.2 to 16.3 (July 16 – July 20), and to 15.8 immediately after the event. In the days after PlayStation’s similar showcase, consideration jumped by ten percentage points and buzz scores tripled.
But Microsoft may not be too worried about the comparison. Where the PlayStation event focused on impressing customers with new hardware and exclusive games such as Spider-Man, Xbox has adopted a more platform-neutral approach.
The showcase heavily emphasised the Game Pass subscription service, which allows customers to play a library of digital titles on a compatible platform of their choosing – whether it’s Xbox One, Series X, or PC – for a flat monthly fee.
Focusing on player value rather than raw power may have dulled the event’s impact across some metrics, but our data shows it could have positively influenced others.
Reputation scores rose from 16.1 to 25.4 within a few days (July 23 – 28) of the event, while recommendations increased from 8.9 to 17.0 over the same period. Over just three days (July 23 – 26) impressions also nearly doubled, climbing from 14.5 to 28.9.
As a console showcase, Sony’s event may have done more to generate excitement for the PlayStation 5 than Microsoft’s showcase did for the Xbox Series X.
But Microsoft are increasingly uninterested in going head to head with Sony; as long as they generate subscription revenue, it does not necessarily matter to them where consumers are playing their games. On those terms, the event could well be considered a success.


cityam--2020-08-06--Bank of England says UK economy’s recovery will take longer than expected

The Bank of England has significantly improved its prediction for the path of the UK economy this year , but now thinks the recovery will take longer than initially expected .
The Bank ’ s projection , released today , said the UK economy was likely to shrink by 9.5 per cent this year and then grow by nine per cent in 2021 .
Read more : BoA : Bank of England to cut interest rates to zero in November It is still more optimistic than many forecasts , but predicts a slower rebound that the Bank expected in May @ @ @ @ @ @ @ shrink by 14 per cent this year and grow by 15 per cent in 2021 .
Threadneedle Street ’ s latest monetary policy report predicted UK GDP would not recover its pre-coronavirus size until the end of 2021 .
It had previously expected it to recover by “ the second half of 2021 ” .
It came as the Bank left interest rates on hold at their record low level of 0.1 per cent .
And it left its bond-buying target at £745bn , both in 9-0 votes among the monetary policy committee @ @ @ @ @ @ @ that rates could stay lower for longer , however .
It changed its guidance to say it “ does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the two per cent inflation target sustainably ” .
The pound jumped in the wake of the decision .
It was last up 0.4 per cent at $ 1.317 .
Bank of England : 2020 better than expected but 2021 worse Bank of England governor Andrew Bailey told journalists : “ @ @ @ @ @ @ @ the last few months.
” “ The pace of recovery in the data that we ’ ve had since May puts the economy ahead of where we thought it would be in May.
” This was largely due to the lockdown being eased earlier than expected , the Bank said .
It predicted that unemployment is likely to touch 7.5 per cent this year and then drop to six per cent in the fourth quarter of 2021 .
That would put 2.5m people out of work but is an improvement on May ’ @ @ @ @ @ @ @ unemployment on average in 2020 and seven per cent in 2021 .
It means unemployment would stay lower than during the financial crisis .
But unemployment is set to stay higher for longer , at 4.5 per cent by the end of 2022 compared to May ’ s expectation of a fall to four per cent for the year on average .
The Bank warned that much of the economy was still suffering .
“ Household spending that involves high levels of interactions with others fell the furthest and has recovered only partially @ @ @ @ @ @ @ the recent rebound in growth is not “ necessarily a good guide to the immediate future ” .
He said elevated concerns about coronavirus are likely to constrain spending .
And heightened business uncertainty would likely weigh on investment .
Read more : Bank of England ’ s Andrew Bailey says he ’ s ‘ very worried about jobs ’ Some analysts said the Bank was being too optimistic about the UK economy .
Yael Selfin , chief economist at KPMG , said that “ the cloud of a second wave and further @ @ @ @ @ @ @ the Bank ’ s forecasts .
Negative interest rates in ‘ toolbox ’ for the first time The Bank today said that negative interest rates have been added to the ‘ toolbox ’ of possible measures for the first time .
But Bailey said : “ We ’ re not planning to use them at the moment.
” Negative interest rates mean banks who hold their spare money in the Bank ’ s virtual vaults would have to pay money to do so .
The idea is that this forces them to lend @ @ @ @ @ @ @ of the economy .
“ I would say that this is , I think , the first time the Bank of England has said definitively , yes they ’ re in the toolbox , ” Bailey said .
“ We don ’ t have a plan to use them at the moment but they are in the toolbox.
” Bailey said the Bank had concluded that they could be useful in some scenarios .
It came to a different conclusion in the financial crisis , but Bailey said : “ 10 years is @ @ @ @ @ @ @ That was a different crisis.
” However , as negative interest rates squeeze banks ’ profits , the Bank could face opposition from lenders over the move .
Analysts had expected the MPC to leave monetary policy on hold .
Rain Newton-Smith , CBI chief economist , said : “ It ’ s unsurprising that the monetary policy committee kept its powder dry this time around.
” She said there were “ early signs of a recovery gathering pace ” .
But she added : “ Downside risks to the outlook are still @ @ @ @ @ @ @ and see ’ approach seems like the right one at present.
” Read more : What are negative interest rates and will the UK turn to them ?
Samuel Tombs , chief UK economist at consultancy Pantheon Macroeconomics , said it was a “ missed opportunity ” to support the economy .
“ The recovery in consumers ’ spending could have been reinforced today by targeted action to get borrowing costs down , ” he said .
Banks strong enough to take Covid hit Britain ’ s lenders are strong enough to keep @ @ @ @ @ @ @ hit from during coronavirus , the Bank of England said in a new financial stability report that was also published today .
It said banks are likely to lose £80bn through bad loans .
But it said they “ have buffers of capital more than sufficient to absorb the losses ” .
Since the financial crisis exposed banks ’ weak balance sheets , central banks such as the BoE have forced them to keep more cash at hand .
The Bank ’ s financial policy committee ( FPC ) said UK lenders would @ @ @ @ @ @ @ losses to deplete their capital .
And that would take a GDP hit much bigger than the Bank expects .
Capital buffers have helped banks keep lending to companies during the coronavirus pandemic .
The FPC said companies could well face a “ cash-flow deficit ” of up to around £200bn .
That is more than double its normal size , than Bank said .
So far , banks have lent about £70bn to cash-strapped firms , the BoE said .
Deputy government Jon Cunliffe said it was in banks ’ own interests @ @ @ @ @ @ @ firms .
“ The financial sector needs to continue to support the economy , ” he said .

Bank of England: Downturn better than feared but UK faces longer recovery
The Bank of England has significantly improved its prediction for the path of the UK economy this year, but said the recovery will take longer than initially expected.
The Bank’s projection, released today, said the UK economy was likely to shrink by 9.5 per cent this year and then grow by nine per cent in 2021.
Read more: BoA: Bank of England to cut interest rates to zero in November
It is still more optimistic than many forecasts, but predicts a slower rebound that the Bank expected in May. Then, it said GDP would shrink by 14 per cent this year and grow by 15 per cent in 2021.
Threadneedle Street’s latest monetary policy report predicted UK GDP would not recover its pre-coronavirus size until the end of 2021. It had previously expected it to recover by “the second half of 2021”.
It came as the Bank left interest rates on hold at their record low level of 0.1 per cent. And it left its bond-buying target at £745bn, both in 9-0 votes among the monetary policy committee (MPC).
The MPC flagged that rates could stay lower for longer, however. It changed its guidance to say it “does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the two per cent inflation target sustainably”.
The pound jumped in the wake of the decision. It was last up 0.4 per cent at $1.317.
Bank of England: 2020 better than expected but 2021 worse
Bank of England governor Andrew Bailey told journalists: “We have had a strong recovery in the last few months.”
“The pace of recovery in the data that we’ve had since May puts the economy ahead of where we thought it would be in May.” This was largely due to the lockdown being eased earlier than expected, the Bank said.
It predicted that unemployment is likely to touch 7.5 per cent this year and then drop to six per cent in the fourth quarter of 2021.
That would put 2.5m people out of work but is an improvement on May’s rough estimate of eight per cent unemployment on average in 2020 and seven per cent in 2021. It means unemployment would stay lower than during the financial crisis.
But unemployment is set to stay higher for longer, at 4.5 per cent by the end of 2022 compared to May’s expectation of a fall to four per cent for the year on average.
The Bank warned that much of the economy was still suffering. “Household spending that involves high levels of interactions with others fell the furthest and has recovered only partially,” it said.
Bailey said the recent rebound in growth is not “necessarily a good guide to the immediate future”. He said elevated concerns about coronavirus are likely to constrain spending. And heightened business uncertainty would likely weigh on investment.
Read more: Bank of England’s Andrew Bailey says he’s ‘very worried about jobs’
Some analysts said the Bank was being too optimistic about the UK economy. Yael Selfin, chief economist at KPMG, said that “the cloud of a second wave and further localised lockdowns” pose a threat to the Bank’s forecasts.
Negative interest rates in ‘toolbox’ for the first time
The Bank today said that negative interest rates have been added to the ‘toolbox’ of possible measures for the first time. But Bailey said: “We’re not planning to use them at the moment.”
Negative interest rates mean banks who hold their spare money in the Bank’s virtual vaults would have to pay money to do so. The idea is that this forces them to lend their extra cash out to the benefit of the economy.
“I would say that this is, I think, the first time the Bank of England has said definitively, yes they’re in the toolbox,” Bailey said. “We don’t have a plan to use them at the moment but they are in the toolbox.”
Bailey said the Bank had concluded that they could be useful in some scenarios. It came to a different conclusion in the financial crisis, but Bailey said: “10 years is a long time in monetary policy. That was a different crisis.”
However, as negative interest rates squeeze banks’ profits, the Bank could face opposition from lenders over the move.
Analysts had expected the MPC to leave monetary policy on hold. Rain Newton-Smith, CBI chief economist, said: “It’s unsurprising that the monetary policy committee kept its powder dry this time around.”
She said there were “early signs of a recovery gathering pace”. But she added: “Downside risks to the outlook are still looming large, so a ‘wait and see’ approach seems like the right one at present.”
Samuel Tombs, chief UK economist at consultancy Pantheon Macroeconomics, said it was a “missed opportunity” to support the economy.
“The recovery in consumers’ spending could have been reinforced today by targeted action to get borrowing costs down,” he said.
Banks strong enough to take Covid hit
Britain’s lenders are strong enough to keep giving out loans and take a big hit from during coronavirus, the Bank of England said in a new financial stability report that was also published today.
It said banks are likely to lose £80bn through bad loans. But it said they “have buffers of capital more than sufficient to absorb the losses”.
Since the financial crisis exposed banks’ weak balance sheets, central banks such as the BoE have forced them to keep more cash at hand.
The Bank’s financial policy committee (FPC) said UK lenders would need to take around £120bn of credit losses to deplete their capital. And that would take a GDP hit much bigger than the Bank expects.
Capital buffers have helped banks keep lending to companies during the coronavirus pandemic.
Read more: Government must tackle £35bn corporate debt crisis, warn City bosses
The FPC said companies could well face a “cash-flow deficit” of up to around £200bn. That is more than double its normal size, than Bank said.
So far, banks have lent about £70bn to cash-strapped firms, the BoE said. Deputy government Jon Cunliffe said it was in banks’ own interests to continue to support lend to hard-hit firms.
“The financial sector needs to continue to support the economy,” he said.


cityam--2020-08-06--Twitter hack bail hearing ‘Zoombombed’ with porn

A virtual bail hearing for the American teenager accused of hacking Twitter in a high-profile bitcoin scam last month was interrupted by participants “ Zoombombing ” the court with pornography .
Graham Ivan Clark , the 17-year-old from Florida who is accused of masterminding the biggest Twitter hack in history , appeared in court via Zoom yesterday to appeal his bail charge of $ 750,000 ( £570,000 ) .
Read more : Twitter bans Donald Trump ’ s presidential campaign over coronavirus fake news But the court hearing was abruptly halted when Zoom users repeatedly intercepted the video stream to @ @ @ @ @ @ @ known as “ Zoombombing ” .
At first , pranksters cut into the testimony with loud music , and began bombarding the accompanying Zoom chat with racist language .
But moments later , an unidentified user shared their screen to broadcast graphic pornography .
While prosecutors made the case for Clark to remain in jail , Judge Christopher C Nash did not get a chance to rule on the bail request after he was forced to cancel the court hearing .
Jake Moore , cybersecurity specialist at internet security firm ESET , said @ @ @ @ @ @ @ after the torrent of Zoombombing we saw at the start of the pandemic , people still haven ’ t learnt how to keep their virtual meetings safe from attacks like this .
“ There are plenty of ways to reduce the chance of embarrassment – such as banning screen takeovers , setting up a unique password to enter a meeting , or using a unique room ID without sharing it publicly… But if users choose to bypass these protection tactics , especially in a very public trial , then unauthorised takeovers become highly @ @ @ @ @ @ @ of engineering last month ’ s bitcoin scam , in which involved Twitter employees handed over credentials to hijack the accounts of celebrities and politicians .
On 15 July , hundreds of blue tick accounts , including those of Elon Musk , Bill Gates and Kim Kardashian , were hijacked to post tweets convincing followers to hand over money to a bitcoin wallet .
The hackers received $ 120,000 from the scam in just a few hours , as Twitter scrambled to remove the posts and regain control of the accounts .
The @ @ @ @ @ @ @ of the hacked accounts had private messages infiltrated , including those of far-right Dutch political Geert Wilders .
The US Department of Justice has charged Clark with 30 counts of fraud for his alleged role , which he denies .
British teen Mason Sheppard , a 19-year-old from Bognor Regis , is accused of assisting Clark and finding buyers for another hacker offering illegal access to Twitter accounts .
Read more : Twitter faces $ 250m fine after US data probe Sheppard has been charged with intentional access of a protected computer , @ @ @ @ @ @ @ conspiracy to commit money laundering .

Twitter hack bail hearing ‘Zoombombed’ with porn
A virtual bail hearing for the American teenager accused of hacking Twitter in a high-profile bitcoin scam last month was interrupted by participants “Zoombombing” the court with pornography.
Graham Ivan Clark, the 17-year-old from Florida who is accused of masterminding the biggest Twitter hack in history, appeared in court via Zoom yesterday to appeal his bail charge of $750,000 (£570,000).
But the court hearing was abruptly halted when Zoom users repeatedly intercepted the video stream to play pornography out loud in a phenomenon known as “Zoombombing”.
At first, pranksters cut into the testimony with loud music, and began bombarding the accompanying Zoom chat with racist language. But moments later, an unidentified user shared their screen to broadcast graphic pornography.
While prosecutors made the case for Clark to remain in jail, Judge Christopher C Nash did not get a chance to rule on the bail request after he was forced to cancel the court hearing.
Jake Moore, cybersecurity specialist at internet security firm ESET, said: “This clearly shows that even after the torrent of Zoombombing we saw at the start of the pandemic, people still haven’t learnt how to keep their virtual meetings safe from attacks like this.
“There are plenty of ways to reduce the chance of embarrassment – such as banning screen takeovers, setting up a unique password to enter a meeting, or using a unique room ID without sharing it publicly… But if users choose to bypass these protection tactics, especially in a very public trial, then unauthorised takeovers become highly likely to occur.”
Clark is accused of engineering last month’s bitcoin scam, in which involved Twitter employees handed over credentials to hijack the accounts of celebrities and politicians.
On 15 July, hundreds of blue tick accounts, including those of Elon Musk, Bill Gates and Kim Kardashian, were hijacked to post tweets convincing followers to hand over money to a bitcoin wallet.
The hackers received $120,000 from the scam in just a few hours, as Twitter scrambled to remove the posts and regain control of the accounts.
The social media platform said at least 36 of the hacked accounts had private messages infiltrated, including those of far-right Dutch political Geert Wilders.
The US Department of Justice has charged Clark with 30 counts of fraud for his alleged role, which he denies.
British teen Mason Sheppard, a 19-year-old from Bognor Regis, is accused of assisting Clark and finding buyers for another hacker offering illegal access to Twitter accounts.
Sheppard has been charged with intentional access of a protected computer, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
He faces a potential jail sentence of 45 years.


cityam--2020-08-06--Convenience store chain McColl's swings to loss despite coronavirus spike in demand

Convenience store chain McColl ’ s swung to a loss in the first half of the year despite a surge in demand during the coronavirus lockdown .
McColl ’ s reported a loss before tax of £1.3m in the 26 weeks ended 24 May , down from profit of £200,000 last year .
McColl ’ s total revenue fell one per cent to £604.8m , down from £611.1m last year , reflecting store closures and lower services revenue due to the temporary withdrawal of scratch cards .
The drop was partially offset by a spike in demand since the coronavirus @ @ @ @ @ @ @ sales grew 8.3 per cent , compared to one per cent growth last year , with sales accelerating in the second quarter at the height of the coronavirus lockdown .
McColl ’ s reported a gross margin of 24.9 , down from 25.4 per cent , as consumers moved away from impulse purchases to lower margin products , multi-buys and value items .
McColl ’ s implemented social distancing measures , reduced trading hours and removed non-essential items , such as scratch cards , from sale , which impacted revenue during the period @ @ @ @ @ @ @ restrictions on freedom of movement had encouraged shoppers to buy locally .
A drop in the frequency of visits was offset by an increase in basket sizes .
McColl ’ s said it is in a good position to “ retain the additional customers drawn to our stores during such difficult circumstances ” .
McColl ’ s chief executive Jonathan Miller said : “ I have never been prouder of McColl ’ s and all our colleagues who have been working incredibly hard in such a challenging environment following the Covid-19 outbreak .
@ @ @ @ @ @ @ keep the neighbourhood communities we serve supplied with the food , goods and services they need .
“ We have seen an extraordinary change since the onset of the crisis .
Strong demand , reaching double digit like-for-like sales in recent months , has been accompanied by a significant shift in the pattern of trade .
“ Food grocery and alcohol sales have been particularly strong , in line with our longer-term strategy to grow these categories as part of our total sales mix .
Meanwhile , customers have been spending less on @ @ @ @ @ @ @ “ The safety of customers and colleagues remains paramount , and we acted quickly to deploy personal protective equipment ( PPE ) and the necessary social distancing measures , the costs of which have been partially offset by the business rates saving .
”

Convenience store chain McColl’s swings to loss despite coronavirus spike in demand
McColl’s said alcohol, tobacco and fresh food had driven the increase in sales
Convenience store chain McColl’s swung to a loss in the first half of the year despite a surge in demand during the coronavirus lockdown.
The figures
McColl’s reported a loss before tax of £1.3m in the 26 weeks ended 24 May, down from profit of £200,000 last year.
McColl’s total revenue fell one per cent to £604.8m, down from £611.1m last year, reflecting store closures and lower services revenue due to the temporary withdrawal of scratch cards.
The drop was partially offset by a spike in demand since the coronavirus outbreak in the UK.
Total like-for-like sales grew 8.3 per cent, compared to one per cent growth last year, with sales accelerating in the second quarter at the height of the coronavirus lockdown.
McColl’s reported a gross margin of 24.9, down from 25.4 per cent, as consumers moved away from impulse purchases to lower margin products, multi-buys and value items.
Why it’s interesting
McColl’s implemented social distancing measures, reduced trading hours and removed non-essential items, such as scratch cards, from sale, which impacted revenue during the period.
However the convenience store chain said restrictions on freedom of movement had encouraged shoppers to buy locally. A drop in the frequency of visits was offset by an increase in basket sizes.
McColl’s said it is in a good position to “retain the additional customers drawn to our stores during such difficult circumstances”.
What McColl’s said


cityam--2020-08-07--Can a new Scots Tory leader regain the party’s mojo?

The Scottish Tories have got themselves a new leader .
This might not move share prices or the relative values of sterling , and gossipers in the markets will now be asking “ who is Douglas Ross ?
” But the same could have been said of Ruth Davidson back in 2011 when she became leader , shortly before her phenomenal success in detoxifying the party enough for the Tories to replace Scottish Labour as the SNP ’ s main opposition .
Read more : Don ’ t believe the Scottish independence hype — I ’ d bet on Johnson @ @ @ @ @ @ @ s hare When Davidson decided to not come back from her maternity leave ( one of the few times a politician was being honest when committing to “ spend more time with the family ” ) , her replacement Jackson Carlaw dissipated much of the support she had built up .
That the Conservatives were not totally wiped out in Scotland at last December ’ s General Election was seen as a triumph , but they were reduced by more than half from 13 seats to only six .
The loss barely registered @ @ @ @ @ @ @ Red Wall in England and winning the best Conservative majority in 32 years since Margaret Thatcher romped home with a majority of 102 in 1987 , but north of the border the result was far from heartening .
The reason for the relatively poor Scottish performance was that both Davidson and Carlaw had previously set out their stalls as being vehemently against Brexit , and prone to criticising Johnson in particular .
This only served to strengthen the hand of the SNP , who could ask voters quite reasonably “ why vote for @ @ @ @ @ @ @ itself ?
” when campaigning on the doorsteps .
It also helped confirm doubts about the benefits of Brexit and Johnson ’ s competency .
Still , at the beginning of the year the SNP was in trouble .
Johnson ’ s win and his commitment to refuse another Scottish independence referendum during the full parliamentary term lifted spirits .
Likewise , the divisions opening in the SNP about how to respond to Westminster facing down of their referendum demands , along with the trial and eventual acquittal of former leader Alex Salmond @ @ @ @ @ @ @ look less than certain .
Then came the Covid-19 pandemic .
Since the lockdown was implemented in March , Sturgeon has used her daily broadcasts as a means to develop a new persona that has seen her popularity ratings rise while Johnson ’ s , after initially being strong , have collapsed .
A myth has been encouraged in Scotland — and has proven especially popular with Johnson haters — that thanks to Sturgeon , Scotland has managed the pandemic successfully .
This is far from the case .
While England ’ s @ @ @ @ @ @ @ in the developed world , Scotland ’ s figures are poor enough to place it third — and when population density is taken into account , they are 10 times worse than England ’ s .
Care home deaths , many of them avoidable , compose nearly 60 per cent of those deaths , and Scottish NHS testing has been diabolical .
The Scottish government was failing in myriad ways , but Carlaw wasn ’ t succeeding in bringing these blunders to the public ’ s attention — and support for independence had @ @ @ @ @ @ @ polls .
Then the launch of George Galloway ’ s Alliance4Unity party saw disenchanted Tories , Labour and Lib Dem supporters bury their differences to back the once political pariah and coalesce around the goal of saving the Union .
Something had to give , and in a clinical operation last Thursday , the notorious Tory men in grey kilts struck .
Carlaw was replaced by Douglas Ross , MP for Moray ( think Baxter ’ s Soup , RAF bases and fishing ) , with Ruth Davidson committing to handling Holyrood until @ @ @ @ @ @ @ next year ’ s elections .
Already , Ross is making a difference , moving the focus onto the SNP ’ s domestic shortfalls — such as the exam results shambles — and calling for an end to US whisky tariffs ( which , as it happened , were American retaliation for the EU ’ s illegal state aid to Airbus in the form of soft loans ) .
The latter issue is marking a crucial change in approach , for it begs the question : will the Scottish Conservatives at last recognise @ @ @ @ @ @ @ and Boris was feeding the nationalist dragon and demoralising their own supporters ?
Ross showed in his brief time as a Scotland Office minister ( before he resigned over the Dominic Cummings affair ) that he can be a tenacious and aggressive combatant .
This is what his party needs — the Tories must recover their mojo and burst Sturgeon ’ s bubble .
Unfortunately , he is currently in the wrong place ( Westminster rather than Holyrood ) so will have to use guile and cunning , arranging set pieces in the @ @ @ @ @ @ @ be videoed and distributed via social media to raise his profile .
He also has to find some policies ( for the Tories have none ) , and consider how to handle Galloway ’ s new alliance .
Still , he brings energy and innovation to the Scottish Tories ’ cause .
The Union ’ s fortunes have at last taken a turn for the better .
Read more : Time for the UK to recognise the prospect of an independent Scotland

Can a new Scots Tory leader regain the party’s mojo?
Scottish Conservatives have a new leader to take on the SNP
The Scottish Tories have got themselves a new leader.
This might not move share prices or the relative values of sterling, and gossipers in the markets will now be asking “who is Douglas Ross?”
But the same could have been said of Ruth Davidson back in 2011 when she became leader, shortly before her phenomenal success in detoxifying the party enough for the Tories to replace Scottish Labour as the SNP’s main opposition.
When Davidson decided to not come back from her maternity leave (one of the few times a politician was being honest when committing to “spend more time with the family”), her replacement Jackson Carlaw dissipated much of the support she had built up.
That the Conservatives were not totally wiped out in Scotland at last December’s General Election was seen as a triumph, but they were reduced by more than half from 13 seats to only six. The loss barely registered thanks to Boris Johnson crashing through the Red Wall in England and winning the best Conservative majority in 32 years since Margaret Thatcher romped home with a majority of 102 in 1987, but north of the border the result was far from heartening.
The reason for the relatively poor Scottish performance was that both Davidson and Carlaw had previously set out their stalls as being vehemently against Brexit, and prone to criticising Johnson in particular. This only served to strengthen the hand of the SNP, who could ask voters quite reasonably “why vote for a party that does not believe in itself?” when campaigning on the doorsteps. It also helped confirm doubts about the benefits of Brexit and Johnson’s competency.
Still, at the beginning of the year the SNP was in trouble. Johnson’s win and his commitment to refuse another Scottish independence referendum during the full parliamentary term lifted spirits. Likewise, the divisions opening in the SNP about how to respond to Westminster facing down of their referendum demands, along with the trial and eventual acquittal of former leader Alex Salmond, made Nicola Sturgeon’s future look less than certain.
Then came the Covid-19 pandemic.
Since the lockdown was implemented in March, Sturgeon has used her daily broadcasts as a means to develop a new persona that has seen her popularity ratings rise while Johnson’s, after initially being strong, have collapsed. A myth has been encouraged in Scotland — and has proven especially popular with Johnson haters — that thanks to Sturgeon, Scotland has managed the pandemic successfully.
This is far from the case. While England’s deaths per million are possibly the worst in the developed world, Scotland’s figures are poor enough to place it third — and when population density is taken into account, they are 10 times worse than England’s. Care home deaths, many of them avoidable, compose nearly 60 per cent of those deaths, and Scottish NHS testing has been diabolical.
The Scottish government was failing in myriad ways, but Carlaw wasn’t succeeding in bringing these blunders to the public’s attention — and support for independence had started to maintain a lead in the polls.
Then the launch of George Galloway’s Alliance4Unity party saw disenchanted Tories, Labour and Lib Dem supporters bury their differences to back the once political pariah and coalesce around the goal of saving the Union. Something had to give, and in a clinical operation last Thursday, the notorious Tory men in grey kilts struck.
Carlaw was replaced by Douglas Ross, MP for Moray (think Baxter’s Soup, RAF bases and fishing), with Ruth Davidson committing to handling Holyrood until he could get back in there at next year’s elections.
Already, Ross is making a difference, moving the focus onto the SNP’s domestic shortfalls — such as the exam results shambles — and calling for an end to US whisky tariffs (which, as it happened, were American retaliation for the EU’s illegal state aid to Airbus in the form of soft loans). The latter issue is marking a crucial change in approach, for it begs the question: will the Scottish Conservatives at last recognise that siding with those who opposed Brexit and Boris was feeding the nationalist dragon and demoralising their own supporters?
Ross showed in his brief time as a Scotland Office minister (before he resigned over the Dominic Cummings affair) that he can be a tenacious and aggressive combatant. This is what his party needs — the Tories must recover their mojo and burst Sturgeon’s bubble.
Unfortunately, he is currently in the wrong place (Westminster rather than Holyrood) so will have to use guile and cunning, arranging set pieces in the Commons and on the stump that can be videoed and distributed via social media to raise his profile. He also has to find some policies (for the Tories have none), and consider how to handle Galloway’s new alliance.
Still, he brings energy and innovation to the Scottish Tories’ cause. The Union’s fortunes have at last taken a turn for the better.
Main image credit: Getty


cityam--2020-08-06--UK retail footfall continues slow recovery in July

UK retail footfall continued to improve in July as shoppers tentatively returned to the high street following the coronavirus lockdown .
Footfall was down 42 per cent in July , an improvement on the 62.6 per cent decline recorded in the previous month .
Read more : WH Smith to cut 1,500 jobs as high street and travel footfall plummets High street footfall decreased 47.5 per cent , also up on the 64.5 per cent tumble recorded in June .
However the British Retail Consortium ( BRC ) said the reopening of pubs and restaurants on 4 July did not @ @ @ @ @ @ @ retail footfall during the month .
Retail parks continued to be the best performing destination , as the higher proportion of supermarkets and large stores sheltered them from a steep decline .
Visitor numbers were down 22.4 per cent year on year , compared to a 33.8 per cent drop in June .
Shopping centres , where UK retail footfall fell by 48.1 per cent , were the worst affected location as enclosed spaces made social distancing more of a challenge .
BRC chief executive Helen Dickinson said : “ With retail footfall @ @ @ @ @ @ @ countries , much will depend how fast consumer demand returns .
“ Retailers have put in place a variety of measures to keep shoppers and staff safe , from regular cleaning and hand sanitiser , to one-way systems and perspex screens at tills .
Read more : Retail footfall dips as face coverings become mandatory in English stores “ We now need government to play their part by providing clear plans for schools , transport , and office working , all of which impact the way we shop .
“ The safety of @ @ @ @ @ @ @ we believe clear communication will help build public confidence and help bolster local high streets and shopping centres during the summer months .
”

UK retail footfall continues slow recovery in July
UK retail footfall continued to improve in July as shoppers tentatively returned to the high street following the coronavirus lockdown.
Footfall was down 42 per cent in July, an improvement on the 62.6 per cent decline recorded in the previous month.
High street footfall decreased 47.5 per cent, also up on the 64.5 per cent tumble recorded in June.
However the British Retail Consortium (BRC) said the reopening of pubs and restaurants on 4 July did not have a “significant impact” on retail footfall during the month.
Retail parks continued to be the best performing destination, as the higher proportion of supermarkets and large stores sheltered them from a steep decline.
Visitor numbers were down 22.4 per cent year on year, compared to a 33.8 per cent drop in June.
Shopping centres, where UK retail footfall fell by 48.1 per cent, were the worst affected location as enclosed spaces made social distancing more of a challenge.
BRC chief executive Helen Dickinson said: “With retail footfall recovering slower than in many other European countries, much will depend how fast consumer demand returns.
“Retailers have put in place a variety of measures to keep shoppers and staff safe, from regular cleaning and hand sanitiser, to one-way systems and perspex screens at tills.
“We now need government to play their part by providing clear plans for schools, transport, and office working, all of which impact the way we shop.
“The safety of the public is a top priority and we believe clear communication will help build public confidence and help bolster local high streets and shopping centres during the summer months.”


cityam--2020-08-06--The City View: Rachel Cunliffe on why working from home isn't great for everyone

In this episode Christian is joined by City A.M. ’ s comment and features editor , Rachel Cunliffe , who talks about her recent column on why working from home doesn ’ t suit everyone .
Rachel talks about young people in houseshares in particular , as well as those who don ’ t have the luxury of a separate work space at home .
Also under discussion : House of Lords reform and why the new Tory leader in Scotland can ’ t let the SNP get away with bending the truth .
Also in this episode , Christian @ @ @ @ @ @ @ the Bank of England ; more calls to support London ’ s city-centre restaurants and bars ; and Edward Bramson ’ s renewed campaign against Barclays .
Read more : The City View : The Publishers Association CEO on culture wars , discovering talent and industry challenges ETX Capital is one of the UK ’ s leading spread betting and CFD trading providers , offering services to retail , institutional , professional and high net worth customers via an award-winning trading platform .
With over 50 years of experience in the financial markets @ @ @ @ @ @ @ first at ETX , and the company prides itself in offering a tailor-made trading experience to every customer .
The multi-device TraderPro platform delivers a fully customisable , award-winning trading technology with customisable charts , instant execution and over 5,000 markets to trade .
Disclaimer : Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage .
76 % of retail investor accounts lose money when spread betting or trading CFDs with ETX .
You should consider whether you understand how spread bets @ @ @ @ @ @ @ afford to take the high risk of losing your money .
Authorised and regulated by the Financial Conduct Authority with Financial Services register number 124721 .
ETX Capital provides an execution-only service and therefore any market analysis , opinion , commentary or other information provided during this webinar is for educational purposes only and is not intended to be a personal recommendation or construed as advice .
ETX Capital and the presenter are not financial or investment advisors and do not recommend any instrument of any kind .
Any instruments that are mentioned @ @ @ @ @ @ @ educational purposes .

The City View: Rachel Cunliffe on why working from home isn’t great for everyone
Subscribe to The City View Podcast: Apple / Google / Spotify / RSS
In this episode Christian is joined by City A.M.’s comment and features editor, Rachel Cunliffe, who talks about her recent column on why working from home doesn’t suit everyone. Rachel talks about young people in houseshares in particular, as well as those who don’t have the luxury of a separate work space at home. Also under discussion: House of Lords reform and why the new Tory leader in Scotland can’t let the SNP get away with bending the truth.
Also in this episode, Christian looks at the latest economic analysis from the Bank of England; more calls to support London’s city-centre restaurants and bars; and Edward Bramson’s renewed campaign against Barclays.
In association with ETX Capital
ETX Capital is one of the UK’s leading spread betting and CFD trading providers, offering services to retail, institutional, professional and high net worth customers via an award-winning trading platform. With over 50 years of experience in the financial markets, customers and service are always put first at ETX, and the company prides itself in offering a tailor-made trading experience to every customer. The multi-device TraderPro platform delivers a fully customisable, award-winning trading technology with customisable charts, instant execution and over 5,000 markets to trade.
Disclaimer: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money. Authorised and regulated by the Financial Conduct Authority with Financial Services register number 124721. ETX Capital provides an execution-only service and therefore any market analysis, opinion, commentary or other information provided during this webinar is for educational purposes only and is not intended to be a personal recommendation or construed as advice. ETX Capital and the presenter are not financial or investment advisors and do not recommend any instrument of any kind. Any instruments that are mentioned throughout are cited only for illustrative and educational purposes.


cityam--2020-08-06--July retail sales dampen hopes of quick high street recovery

Retail sales continued to fall in July despite the reopening of non-essential stores , dampening hopes of a quick bounce back on the high street .
Like-for-like sales in bricks and mortar stores fell 39.4 per cent in July compared to growth of 0.1 per cent in the same month last year .
Read more : UK retail sales bounce back as shops reopen from lockdown Last month was also the six consecutive month of negative total like-for-like sales , which dipped 4.6 per cent , including both physical stores and online sales .
July was the first full month @ @ @ @ @ @ @ since February .
In-store like-for-like sales for lifestyle fell 35.4 per cent this month from an already poor base of minus 3 per cent last year .
After posting negative results in each week of the month , July recorded the sixth straight month of negative like-for-like sales for in-store lifestyle .
Fashion sank by 50 per cent in July , marking the fifth month of negative like-for-like sales for the sector .
However homeware sales rebounded as Brits settled in to spending more time at home , with like-for-like sales increasing 5.4 @ @ @ @ @ @ @ , increasing by 81.2 per cent in July from a good base of 20.5 per cent last year as consumer preference for online shopping continued .
BDO head of retail and wholesale Sophie Michael said : “ July has marked yet another difficult month for struggling retailers .
“ Despite initial optimism that the reopening of stores would see the high street bounce back , the July results tell a more difficult story .
“ The reality is that footfall remains dismal , and some retailers opted for a more gradual approach to @ @ @ @ @ @ @ distancing measures also continued to restrict capacity in-store.
” She added : “ The high street is crying out for a confidence boost but with the full impact of coronavirus on the UK economy yet to be realised , uncertainty will prevail for the foreseeable future .
”

July retail sales dampen hopes of quick high street recovery
Retail sales continued to fall in July despite the reopening of non-essential stores, dampening hopes of a quick bounce back on the high street.
Like-for-like sales in bricks and mortar stores fell 39.4 per cent in July compared to growth of 0.1 per cent in the same month last year.
Last month was also the six consecutive month of negative total like-for-like sales, which dipped 4.6 per cent, including both physical stores and online sales.
July was the first full month that non-essential stores were allowed to trade since February.
In-store like-for-like sales for lifestyle fell 35.4 per cent this month from an already poor base of minus 3 per cent last year.
After posting negative results in each week of the month, July recorded the sixth straight month of negative like-for-like sales for in-store lifestyle.
Fashion sank by 50 per cent in July, marking the fifth month of negative like-for-like sales for the sector.
However homeware sales rebounded as Brits settled in to spending more time at home, with like-for-like sales increasing 5.4 per cent.
Non-store sales remained high, increasing by 81.2 per cent in July from a good base of 20.5 per cent last year as consumer preference for online shopping continued.
BDO head of retail and wholesale Sophie Michael said: “July has marked yet another difficult month for struggling retailers.
“Despite initial optimism that the reopening of stores would see the high street bounce back, the July results tell a more difficult story.
“The reality is that footfall remains dismal, and some retailers opted for a more gradual approach to opening their estates last month while social distancing measures also continued to restrict capacity in-store.”
She added: “The high street is crying out for a confidence boost but with the full impact of coronavirus on the UK economy yet to be realised, uncertainty will prevail for the foreseeable future.”