cityam--2020-12-01--Astrazeneca sells cholesterol drug to German firm for $320m

Astrazeneca has announced that it will sell the rights to its blockbuster cholesterol drug to German firm Gruenenthal GmbH for $ 320m ( £240m ) .
The drug , which is called Crestor , used to be one of the pharma giant ’ s bestselling medicines , bringing in $ 5bn in revenue in 2015 .
However , with the marketplace now crowded with alternative treatments , the FTSE blue-chip has decided to focus instead on its cancer drug portfolio .
The deal will give Gruenenthal rights to sell Crestor and associated medicines in more than 30 countries in Europe @ @ @ @ @ @ @ Astrazeneca said .
Before the Open newsletter : Start your day with the City View podcast and key market data But the firm will continue to sell the drug , which at one point made up a fifth of its revenue , in international markets such as the US and Japan .
The deal is expected to close in the first quarter of 2021 , Astrazeneca said , adding that Grünenthal could make additional milestone payments of up to $ 30m .
The FTSE 100 firm said that the divestment would not affect @ @ @ @ @ @ @ Shares were up 1.4 per cent by mid-morning .
Read more : Government urges regulator to approve Astrazeneca-Oxford vaccine for emergency supply Andrew Duncan , analyst at Killik & Co , said : “ This divestment is part of AstraZeneca ’ s continuing strategy to position itself towards its newer , higher growth portfolio and away from older drugs that are in decline .
”

Astrazeneca sells cholesterol drug to German firm for $320m
Astrazeneca has announced that it will sell the rights to its blockbuster cholesterol drug to German firm Gruenenthal GmbH for $320m (£240m).
The drug, which is called Crestor, used to be one of the pharma giant’s bestselling medicines, bringing in $5bn in revenue in 2015.
However, with the marketplace now crowded with alternative treatments, the FTSE blue-chip has decided to focus instead on its cancer drug portfolio.
The deal will give Gruenenthal rights to sell Crestor and associated medicines in more than 30 countries in Europe, except the UK and Spain, Astrazeneca said.
Before the Open newsletter: Start your day with the City View podcast and key market data
But the firm will continue to sell the drug, which at one point made up a fifth of its revenue, in international markets such as the US and Japan.
The deal is expected to close in the first quarter of 2021, Astrazeneca said, adding that Grünenthal could make additional milestone payments of up to $30m.
The FTSE 100 firm said that the divestment would not affect its financial guidance for the year. Shares were up 1.4 per cent by mid-morning.
Andrew Duncan, analyst at Killik & Co, said: “This divestment is part of AstraZeneca’s continuing strategy to position itself towards its newer, higher growth portfolio and away from older drugs that are in decline.”


cityam--2020-12-01--OECD downgrades UK economic outlook ahead of Brexit deadline

The OECD has downgraded its outlook for the UK economy amid surging coronavirus cases and has warned of a hit from a no-deal Brexit .
In its latest economic outlook , the global economic organisation said it expected UK GDP to contract by 11.2 per cent this year compared to the 10.1 per cent forecasted in September .
This is in large part due to a contraction in the fourth quarter amid renewed lockdown restrictions .
Read more : OECD : UK should focus on unemployed until recovery established It also sharply downgraded its forecasts for growth next year to @ @ @ @ @ @ @ in September .
The OECD warned of a short-term impact on the economy if the UK fails to reach a trade agreement with the EU .
“ It would entail physical and financial disruptions of different magnitudes across sectors , with exports falling by more than 30 per cent in a few manufacturing sectors ( notably the motor vehicle and transport , meat and textile sectors ) and by almost 20 per cent in the financial and insurance sector , ” it added .
It echoes the organisation ’ s warning just three @ @ @ @ @ @ @ no-deal Brexit means Britain faces “ major downside risks ” .
It was more optimistic about the global recovery , predicting GDP will return to pre-pandemic levels by the end of 2021 .
After a sharp decline this year , global GDP is projected to rise by 4.2 per cent in 2021 , and a further 3.75 per cent in 2022 .
Unsurprisingly the OECD predicts the recovery will be uneven across countries which could lead to lasting changes in the world economy .
Countries that have produced efficient vaccination campaigns and test @ @ @ @ @ @ @ back quicker .
“ The recovery would be stronger if vaccines are rolled out fast , boosting confidence and lowering uncertainty , ” the OECD said .
China will be the only country covered by the OECD to see any growth at all this year , at 1.8 per cent , unchanged from its September forecast .
Read more : OECD : Global economy faring better than thought but UK lags behind The organisation has called on governments to continue their financial support , urging “ exceptional ” spending to “ continue until @ @ @ @ @ @ @ comes after the Chancellor used his spending review last month to impose a pay freeze on public sector workers outside the NHS and slash the overseas aid budget to tackle the record amount of borrowing this year .

OECD downgrades UK economic outlook ahead of Brexit deadline
The OECD has downgraded its outlook for the UK economy amid surging coronavirus cases and has warned of a hit from a no-deal Brexit.
In its latest economic outlook, the global economic organisation said it expected UK GDP to contract by 11.2 per cent this year compared to the 10.1 per cent forecasted in September. This is in large part due to a contraction in the fourth quarter amid renewed lockdown restrictions.
It also sharply downgraded its forecasts for growth next year to 4.2 per cent from 7.6 per cent in September.
The OECD warned of a short-term impact on the economy if the UK fails to reach a trade agreement with the EU.
“It would entail physical and financial disruptions of different magnitudes across sectors, with exports falling by more than 30 per cent in a few manufacturing sectors (notably the motor vehicle and transport, meat and textile sectors) and by almost 20 per cent in the financial and insurance sector,” it added.
It echoes the organisation’s warning just three months ago that the possibility of a no-deal Brexit means Britain faces “major downside risks”.
It was more optimistic about the global recovery, predicting GDP will return to pre-pandemic levels by the end of 2021.
After a sharp decline this year, global GDP is projected to rise by 4.2 per cent in 2021, and a further 3.75 per cent in 2022.
Unsurprisingly the OECD predicts the recovery will be uneven across countries which could lead to lasting changes in the world economy. Countries that have produced efficient vaccination campaigns and test and trace systems are likely to bounce back quicker.
“The recovery would be stronger if vaccines are rolled out fast, boosting confidence and lowering uncertainty,” the OECD said.
China will be the only country covered by the OECD to see any growth at all this year, at 1.8 per cent, unchanged from its September forecast.
The organisation has called on governments to continue their financial support, urging “exceptional” spending to “continue until the recovery gains momentum”.
It comes after the Chancellor used his spending review last month to impose a pay freeze on public sector workers outside the NHS and slash the overseas aid budget to tackle the record amount of borrowing this year.


cityam--2020-12-01--Boris Johnson faces Tory rebellion in today's Covid restrictions vote

Up to 100 Tory backbenchers could vote against the government ’ s new Covid restrictions regime in what may be the largest party revolt against Boris Johnson ’ s government so far .
Dozens of Tory MPs have said they will today vote against the new regionalised Covid restrictions , after the government ’ s analysis of the new system , released yesterday , was widely panned .
Read more : Tier system may cause increase in chronic illness , government review finds Scores of Conservative MPs said the release provided no new information on how the three-tiered regional restrictions @ @ @ @ @ @ @ beyond what the Office for Budget Responsiblity ( OBR ) said last week .
The OBR predicts GDP will contract by 11.3 per cent this year – the largest contraction for 300 years .
The proposed tier system will put the vast majority of the country into the top two tiers , meaning that the hospitality industry will still be severely restricted in most places .
Labour leader Sir Keir Starmer announced last night that his party would abstain from today ’ s vote , meaning there would need to be around 150 @ @ @ @ @ @ @ new measures .
This is considered to be highly unlikely .
Before the Open newsletter : Start your day with the City View podcast and key market data The House of Commons is set to vote on the measures late this afternoon , with the Prime Minister opening the debate at 12.45pm .
Mark Harper , one of the rebel ringleaders , said the government ’ s Covid analysis “ seems to be collapsing under the glare of scrutiny ” .
“ Before the current lockdown , incorrect death and hospital capacity was @ @ @ @ @ @ @ it , ” he said .
“ We have asked repeatedly for the information that vindicates these hospital projections and it has not been forthcoming.
” The Times reported today that the government was not being transparent and in fact has detailed economic analysis for each industry , but has not released it .
A government spokesperson said the information came from publicly available information .
Conservative chair of the Treasury Select Committee Mel Stride yesterday criticised the lack of transparency from the government on the economic impacts of Covid .
Stride is @ @ @ @ @ @ @ “ On a number of occasions , I ’ ve requested from the chancellor and Treasury officials that they publish an analysis of the economic impacts of the three tiers , ” he said .
“ With little over 24 hours until MPs vote on the new tiered system , this rehashed document offers very little further in economic terms other than that which the OBR published last week.
” London will be in Tier 2 in the new system , which will allow retail and hospitality to open under strict conditions .
@ @ @ @ @ @ @ How many Covid-19 infections are there in your local borough ?
Pubs and restaurants can only serve patrons if they order a “ substantial meal ” and household mixing will not be allowed indoors .
Environment secretary George Eustice said yesterday that a scotch egg would count as a substantial meal , opening the door to an animated discussion in the media on what else would count under the new rules .

Boris Johnson faces Tory rebellion in today’s Covid restrictions vote
Prime Minister Boris Johnson poses for a photograph with a vial of the AstraZeneca/Oxford University COVID-19 candidate vaccine
Up to 100 Tory backbenchers could vote against the government’s new Covid restrictions regime in what may be the largest party revolt against Boris Johnson’s government so far.
Dozens of Tory MPs have said they will today vote against the new regionalised Covid restrictions, after the government’s analysis of the new system, released yesterday, was widely panned.
Scores of Conservative MPs said the release provided no new information on how the three-tiered regional restrictions could affect the UK’s economy beyond what the Office for Budget Responsiblity (OBR) said last week.
The OBR predicts GDP will contract by 11.3 per cent this year – the largest contraction for 300 years.
The proposed tier system will put the vast majority of the country into the top two tiers, meaning that the hospitality industry will still be severely restricted in most places.
Labour leader Sir Keir Starmer announced last night that his party would abstain from today’s vote, meaning there would need to be around 150 rebel Tory MPs to vote down the new measures.
This is considered to be highly unlikely.
Before the Open newsletter: Start your day with the City View podcast and key market data
The House of Commons is set to vote on the measures late this afternoon, with the Prime Minister opening the debate at 12.45pm.
Mark Harper, one of the rebel ringleaders, said the government’s Covid analysis “seems to be collapsing under the glare of scrutiny”.
“Before the current lockdown, incorrect death and hospital capacity was leaked into the public domain to justify it,” he said.
“We have asked repeatedly for the information that vindicates these hospital projections and it has not been forthcoming.”
The Times reported today that the government was not being transparent and in fact has detailed economic analysis for each industry, but has not released it.
A government spokesperson said the information came from publicly available information.
Conservative chair of the Treasury Select Committee Mel Stride yesterday criticised the lack of transparency from the government on the economic impacts of Covid.
Stride is still voting with the government today.
“On a number of occasions, I’ve requested from the chancellor and Treasury officials that they publish an analysis of the economic impacts of the three tiers,” he said.
“With little over 24 hours until MPs vote on the new tiered system, this rehashed document offers very little further in economic terms other than that which the OBR published last week.”
London will be in Tier 2 in the new system, which will allow retail and hospitality to open under strict conditions.
Pubs and restaurants can only serve patrons if they order a “substantial meal” and household mixing will not be allowed indoors.
Environment secretary George Eustice said yesterday that a scotch egg would count as a substantial meal, opening the door to an animated discussion in the media on what else would count under the new rules.


cityam--2020-12-01--Green bonds: ESG, sustainable or impact investments?

In this article , we provide an updated estimate for the green bond premium ( “ greenium ” ) in the Euro ( EUR ) market .
We validate the common hypothesis that green bonds tend to trade a tighter spread ( lower yield ) than comparable “ brown ” bonds , and we offer some conclusions on green bond investors .
The first green bond was issued in 2008 by the World Bank : a far-sighted initiative , which initially gathered a limited number of followers .
In recent years , however , issuance has exploded reaching $ 257bn @ @ @ @ @ @ @ 2018 ) .
Europe is the largest market and last year accounted for 45 % of total issuance .
The green bond universe includes a variety of different standards and flavours : in most cases , however , the issuer will include in the prospectus a pledge restricting the use of borrowed capital .
This money will be generally earmarked to fund specific projects or business lines .
For example , an issuer in the power generation sector may use proceeds from green bonds to improve its energy mix ( for instance , @ @ @ @ @ @ @ .
A real estate company or a bank may use its green issuance to fund house developments with green ( energy-efficient ) buildings .
In a few exceptional cases such as Enel and Chanel , the borrower commits to a financial penalty if green objectives are not met – e.g .
paying a higher coupon , or a higher capital reimbursement .
In general , however , green bonds returns exactly mirror their brown counterparties : their cashflows rank at the same rate of existing , non-green securities .
They do not provide @ @ @ @ @ @ @ investors .
From an ESG perspective , it should be noted that green bonds are not a synonym of good ESG rating : there are many examples of companies with poor ESG credential accessing the green bond market .
Granting green funding to “ brown ” companies incentivises their sustainable approach , but may also cross-subsidise more controversial business areas .
Using Bloomberg database , we identified a universe of bond issues classified as “ green ” and “ corporate ” ( including some government-owned entities ) .
As of September 2020 , @ @ @ @ @ @ @ EUR , with a benchmark size , i.e .
an outstanding amount above 500 million .
To estimate the “ greenium ” , we opted for a straightforward procedure : each green bond was compared with one or more non-green bonds issued by the same issuer , with similar characteristics : • Similar maturity ( or similar call schedule ) , with a maximum difference of one year Pairing green bonds with brown bonds are not always possible , and we had to drop more than half of our sample .
In some @ @ @ @ @ @ @ any bond close enough to justify a comparison with its green bonds .
In other cases , the issuer has been systematically switching its issuance strategy towards green bonds and no longer issued brown bonds .
Our final sample shrank to 130 bonds , a much smaller but statistically respectable number of data points .
The estimation process was straightforward .
For each green bond , the premium ( in basis points ) was defined as the difference between : Such a simple procedure does not require any curve fitting ( which can @ @ @ @ @ @ @ number of outstanding bonds ) .
Moreover , the use of the asset swap spread ( instead of simple spread to mid-yield ) takes into account different coupon levels .
Our estimation covers the period between January and September 2020 .
It was performed on secondary prices while avoiding primary issuance estimates .
While new issue premium is certainly a key variable for borrowers and investors , estimation is somewhat more complicated .
It requires additional parameters to separate green premium from new issue concession .
Results not as green as expected Our @ @ @ @ @ @ @ on average , over the course of 2020 , green bonds have offered spreads 3 basis point ( 0.03 % ) lower than “ brown bonds ” .
While this might look insignificant , it represents a 6 % “ haircut ” to the average credit spread offered by any given borrower .
The “ greenium ” curve is relatively well behaved : premium tends to increase with lower ratings , in line with higher credit spreads .
In terms of dynamics , the “ greenium ” for our sample was relatively low @ @ @ @ @ @ @ around 1 bps , or 5 % of the spread ) .
However , the spread moved wider and wider of the course of the year and was larger than 4 bps ( or 10 % of total spread ) at the end of September .
What does it mean for the green bond market ?
The green bond market is expanding at a very healthy pace , and it is becoming the issuing market of choice for several borrowers .
The existence of a negative premium for green bonds offers an exciting @ @ @ @ @ @ @ market segmentation in the buy-side : demand for green bonds tends to outstrip supply .
It is relatively inelastic to price/spread .
Why are green bonds investors systematically buying lower-yielding bonds and systematically accepting a certain degree of underperformance versus non-green investments ?
We believe that green bond investors can be characterised by one of the following approaches : • thematic investing , where the portfolio manager has specific constraints and is incentivised to select green investments ( despite their lower expected return ) • impact investing , where investors are ready to @ @ @ @ @ @ @ impact on social or environmental issues The existence of a “ greenium ” is a challenge for this asset class , as a persistent underperformance is challenging to justify , especially in an environment of ultra-low interest rates .
In this respect , we note that the current level of “ greenium ” is somewhat manageable and still makes green bonds attractive to investors that are happy to sacrifice some basis points to take exposure to sustainable investments .
On a longer-term perspective , the asset class would undoubtedly benefit from some form @ @ @ @ @ @ @ treatment , for instance , may develop a virtuous circle , where investors are happy to accept lower returns while receiving a tax rebate and supporting a greener economy .
By Francesco Castelli , Head of Fixed Income at Banor Capital and manager of the Banor SICAV Euro Bond and Aristea SICAV Enhanced Cash funds .
All posts are the opinion of the author .
As such , they should not be construed as investment advice , nor do the opinions expressed necessarily reflect the views of CFA Institute or the author ’ @ @ @

What is City Talk? City Talk allows marketers to connect directly with our audience by publishing content on cityam.com
Green bonds: ESG, sustainable or impact investments?
In this article, we provide an updated estimate for the green bond premium (“greenium”) in the Euro (EUR) market. We validate the common hypothesis that green bonds tend to trade a tighter spread (lower yield) than comparable “brown” bonds, and we offer some conclusions on green bond investors.
The first green bond was issued in 2008 by the World Bank: a far-sighted initiative, which initially gathered a limited number of followers. In recent years, however, issuance has exploded reaching $257bn in 2019 (up 51% vs 2018). Europe is the largest market and last year accounted for 45% of total issuance.
The green bond universe includes a variety of different standards and flavours: in most cases, however, the issuer will include in the prospectus a pledge restricting the use of borrowed capital. This money will be generally earmarked to fund specific projects or business lines.
For example, an issuer in the power generation sector may use proceeds from green bonds to improve its energy mix (for instance, purchasing wind turbines or solar panels). A real estate company or a bank may use its green issuance to fund house developments with green (energy-efficient) buildings.
In a few exceptional cases such as Enel and Chanel, the borrower commits to a financial penalty if green objectives are not met – e.g. paying a higher coupon, or a higher capital reimbursement. In general, however, green bonds returns exactly mirror their brown counterparties: their cashflows rank at the same rate of existing, non-green securities. They do not provide any meaningful extra return to green bond investors.
From an ESG perspective, it should be noted that green bonds are not a synonym of good ESG rating: there are many examples of companies with poor ESG credential accessing the green bond market. Granting green funding to “brown” companies incentivises their sustainable approach, but may also cross-subsidise more controversial business areas.
Estimating “greenium”
Using Bloomberg database, we identified a universe of bond issues classified as “green” and “corporate” (including some government-owned entities). As of September 2020, there were 305 green bonds issued in EUR, with a benchmark size, i.e. an outstanding amount above 500 million.
To estimate the “greenium”, we opted for a straightforward procedure: each green bond was compared with one or more non-green bonds issued by the same issuer, with similar characteristics:
Same seniority
Similar maturity (or similar call schedule), with a maximum difference of one year
Similar liquidity (restricting the analysis to benchmark bonds).
Same currency
Pairing green bonds with brown bonds are not always possible, and we had to drop more than half of our sample. In some cases, the issuers did not offer any bond close enough to justify a comparison with its green bonds.
In other cases, the issuer has been systematically switching its issuance strategy towards green bonds and no longer issued brown bonds. Our final sample shrank to 130 bonds, a much smaller but statistically respectable number of data points. The estimation process was straightforward. For each green bond, the premium (in basis points) was defined as the difference between:
asset swap spread (ask) for green bond
asset swap spread (ask) for comparable non-green bond
Such a simple procedure does not require any curve fitting (which can be tricky for corporates with a limited number of outstanding bonds). Moreover, the use of the asset swap spread (instead of simple spread to mid-yield) takes into account different coupon levels.
Our estimation covers the period between January and September 2020. It was performed on secondary prices while avoiding primary issuance estimates. While new issue premium is certainly a key variable for borrowers and investors, estimation is somewhat more complicated. It requires additional parameters to separate green premium from new issue concession.
Results not as green as expected
Our results show a persistent negative premium: on average, over the course of 2020, green bonds have offered spreads 3 basis point (0.03%) lower than “brown bonds”. While this might look insignificant, it represents a 6% “haircut” to the average credit spread offered by any given borrower.
The “greenium” curve is relatively well behaved: premium tends to increase with lower ratings, in line with higher credit spreads.
In terms of dynamics, the “greenium” for our sample was relatively low at the beginning of the year (around 1 bps, or 5% of the spread). However, the spread moved wider and wider of the course of the year and was larger than 4 bps (or 10% of total spread) at the end of September.
What does it mean for the green bond market?
The green bond market is expanding at a very healthy pace, and it is becoming the issuing market of choice for several borrowers. The existence of a negative premium for green bonds offers an exciting funding opportunity but suggests some degree of market segmentation in the buy-side: demand for green bonds tends to outstrip supply.
It is relatively inelastic to price/spread. Why are green bonds investors systematically buying lower-yielding bonds and systematically accepting a certain degree of underperformance versus non-green investments?
We believe that green bond investors can be characterised by one of the following approaches:
thematic investing, where the portfolio manager has specific constraints and is incentivised to select green investments (despite their lower expected return)
impact investing, where investors are ready to sacrifice their returns to generate a meaningful impact on social or environmental issues
The existence of a “greenium” is a challenge for this asset class, as a persistent underperformance is challenging to justify, especially in an environment of ultra-low interest rates. In this respect, we note that the current level of “greenium” is somewhat manageable and still makes green bonds attractive to investors that are happy to sacrifice some basis points to take exposure to sustainable investments.
On a longer-term perspective, the asset class would undoubtedly benefit from some form of incentive such as a favorable tax treatment, for instance, may develop a virtuous circle, where investors are happy to accept lower returns while receiving a tax rebate and supporting a greener economy.
Originally published at the CFA Society United Kingdom Professional Investor blog.
By Francesco Castelli, Head of Fixed Income at Banor Capital and manager of the Banor SICAV Euro Bond and Aristea SICAV Enhanced Cash funds.
All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.
Image credit: ©Getty Images /mrPliskin


cityam--2020-12-01--Don’t let the doom-mongers stand in the way of our robot-driven future

Are the robots coming for our jobs ?
That has been a perennial worry ever since the initial technological advances of the first industrial revolution .
But there are concerns that this time is different — and that artificial intelligence ( AI ) requires government intervention .
Some estimates suggest that 40 per cent of jobs are at high risk of being automated over the next decade .
With unemployment already on the rise in the midst of the Covid-19 pandemic , there is a mounting risk of popular backlash against technology .
Read more : Biden urged to take @ @ @ @ @ @ @ ’ s especially important in these challenging times that we do not succumb to such pressures .
Artificial intelligence is a key pillar in the fourth industrial revolution .
Past revolutions transformed the way we live .
From new agricultural methods to steam power and the adoption of manufacturing , these advances helped raise our society from the default state of humanity — lives that , for the vast majority , were poor , nasty , brutish , and short .
Of course , it ’ s always possible that this latest technologic @ @ @ @ @ @ @ that came before .
But I doubt it .
In a new report for the Adam Smith Institute , entitled These are the droids you ’ re looking for , I review the evidence — and emerge with optimistic conclusions .
The first trap AI interventionists fall into is failing to learn the lessons of the past .
Some experts fall foul of the age-old Luddite fallacy : they focus only on the losses and mistakenly assume that the economy is static , rather than growing to develop new opportunities .
But historically @ @ @ @ @ @ @ prosperity for the masses — eventually .
While some jobs are lost initially , new fields and industries emerge meaning that new jobs are created elsewhere .
These are typically better , more fulfilling , higher paid , and provide more leisure time to workers .
The technologies we invent have enabled us to stop tedious practices and replace jobs that would be considered shameful these days , like child chimney sweeps .
No one would realistically try to argue now that such jobs should be protected .
More measured doom-mongers generally concede @ @ @ @ @ @ @ the past , but argue that AI is unique .
They worry that computers will imminently be so much better than us at literally everything that even the new jobs will not go to humans .
This fear is not borne out by current AI capabilities and overstates our ability to implement complex technology .
Sceptics are too pessimistic about the speed of human ingenuity and too optimistic about AI .
So while we should of course monitor AI ’ s progress and track the impact , there is no cause for immediate @ @ @ @ @ @ @ new technology , we should focus our attention on those who are displaced by AI , helping them to get back into work quickly , so that they too can benefit fully from a more prosperous society .
We have plenty of time to prepare for the worst-case scenarios , bolstering our welfare and taxation systems to protect the most vulnerable .
Indeed , the report recommends that the government experiments with policies to tackle sustained joblessness , like conducting trials of a “ negative income tax ” and investing in lifelong learning @ @ @ @ @ @ @ robots are going to take some of our jobs , they will do so in the same way as electric light took jobs from candle makers : overall , our lives will be infinitely better for it .
Rather than heavy-handed intervention , we should create an environment in which AI can flourish , living standards improve , and the vulnerable are protected — all while boosting the post-pandemic economic recovery .
Let ’ s not let the doom-mongers keep us all in the dark .
Read more : Without an eye on @ @ @ @ @ @ @ global fintech race

Don’t let the doom-mongers stand in the way of our robot-driven future
Historically, technological advancements always have delivered greater prosperity for the masses
Are the robots coming for our jobs?
That has been a perennial worry ever since the initial technological advances of the first industrial revolution. But there are concerns that this time is different — and that artificial intelligence (AI) requires government intervention.
Some estimates suggest that 40 per cent of jobs are at high risk of being automated over the next decade. With unemployment already on the rise in the midst of the Covid-19 pandemic, there is a mounting risk of popular backlash against technology.
It’s especially important in these challenging times that we do not succumb to such pressures.
Artificial intelligence is a key pillar in the fourth industrial revolution. Past revolutions transformed the way we live. From new agricultural methods to steam power and the adoption of manufacturing, these advances helped raise our society from the default state of humanity — lives that, for the vast majority, were poor, nasty, brutish, and short.
Of course, it’s always possible that this latest technologic shift could be radically different to those that came before. But I doubt it.
In a new report for the Adam Smith Institute, entitled These are the droids you’re looking for, I review the evidence — and emerge with optimistic conclusions.
The first trap AI interventionists fall into is failing to learn the lessons of the past.
Some experts fall foul of the age-old Luddite fallacy: they focus only on the losses and mistakenly assume that the economy is static, rather than growing to develop new opportunities.
But historically, technological advancements always have delivered greater prosperity for the masses — eventually. While some jobs are lost initially, new fields and industries emerge meaning that new jobs are created elsewhere. These are typically better, more fulfilling, higher paid, and provide more leisure time to workers.
The technologies we invent have enabled us to stop tedious practices and replace jobs that would be considered shameful these days, like child chimney sweeps. No one would realistically try to argue now that such jobs should be protected.
More measured doom-mongers generally concede that technology change has been beneficial in the past, but argue that AI is unique. They worry that computers will imminently be so much better than us at literally everything that even the new jobs will not go to humans.
This fear is not borne out by current AI capabilities and overstates our ability to implement complex technology. Sceptics are too pessimistic about the speed of human ingenuity and too optimistic about AI.
So while we should of course monitor AI’s progress and track the impact, there is no cause for immediate alarm. Instead of trying to limit new technology, we should focus our attention on those who are displaced by AI, helping them to get back into work quickly, so that they too can benefit fully from a more prosperous society.
We have plenty of time to prepare for the worst-case scenarios, bolstering our welfare and taxation systems to protect the most vulnerable. Indeed, the report recommends that the government experiments with policies to tackle sustained joblessness, like conducting trials of a “negative income tax” and investing in lifelong learning vouchers to help people reskill.
If robots are going to take some of our jobs, they will do so in the same way as electric light took jobs from candle makers: overall, our lives will be infinitely better for it. Rather than heavy-handed intervention, we should create an environment in which AI can flourish, living standards improve, and the vulnerable are protected — all while boosting the post-pandemic economic recovery.
Let’s not let the doom-mongers keep us all in the dark.
Main image credit: Getty


cityam--2020-12-01--Ince Group: '‘Rightsizing’ our office is an idea with legs'

The Ince Group is mulling “ rightsizing ” its office in wake of changes to working patterns brought about by the coronavirus pandemic , CEO Adrian Biles told City A.M .
In today ’ s half year results the listed law firm recorded a revenue increase of six per cent to £48.2m , despite challenges posed by the Covid-19 pandemic .
Read more : Ince Group sees revenue jump 87 per cent but just misses £100m target Biles said he did not see life in the city going back to pre-Covid days , especially now the business had shown it @ @ @ @ @ @ @ working remotely .
As a result , he CEO said he was “ pretty sure we have too much office space ” .
“ I don ’ t buy into the idea everyone is going to jump on cramped commuter trains and come back into the city , which has an effect on our office footprint , ” he said .
“ We don ’ t know how that ’ ll shake out , but we ’ re pretty sure we have too much office space… ‘ Rightsizing ’ is probably [ an @ @ @ @ @ @ @ legs.
” Read more : Legal giant Gordon Dadds to rebrand as The Ince Group The Ince Group currently occupies space in Aldgate Tower , just moments from Aldgate East tube station .
The change could spell an exit from the City of London for the law firm .
Biles said employees would want a mixture of meeting rooms and operational space still , but he added : “ It ’ s not necessary to be in expensive locations ” .
The group made an adjusted profit before tax of £2.52m in the @ @ @ @ @ @ @ and established a new office in Cyprus .
Biles continued : “ In the context of the global disruptions of the pandemic , these are exceptional results.
” The CEO was also optimistic about the next six months , adding : “ What we ’ ve said is that historically our second half is better than our first , but Covid-driven market conditions are kind of the master of that , rather than ourselves .
”

Ince Group: ‘‘Rightsizing’ our office is an idea with legs’
The Ince Group is mulling “rightsizing” its office in wake of changes to working patterns brought about by the coronavirus pandemic, CEO Adrian Biles told City A.M.
In today’s half year results the listed law firm recorded a revenue increase of six per cent to £48.2m, despite challenges posed by the Covid-19 pandemic.
Biles said he did not see life in the city going back to pre-Covid days, especially now the business had shown it can “deliver strong results” while working remotely. As a result, he CEO said he was “pretty sure we have too much office space”.
“I don’t buy into the idea everyone is going to jump on cramped commuter trains and come back into the city, which has an effect on our office footprint,” he said.
“We don’t know how that’ll shake out, but we’re pretty sure we have too much office space… ‘Rightsizing’ is probably [an idea] that’s got some legs.”
The Ince Group currently occupies space in Aldgate Tower, just moments from Aldgate East tube station.
The change could spell an exit from the City of London for the law firm. Biles said employees would want a mixture of meeting rooms and operational space still, but he added: “It’s not necessary to be in expensive locations”.
The group made an adjusted profit before tax of £2.52m in the six months up to 30 September, and established a new office in Cyprus.
Biles continued: “In the context of the global disruptions of the pandemic, these are exceptional results.”
The CEO was also optimistic about the next six months, adding: “What we’ve said is that historically our second half is better than our first, but Covid-driven market conditions are kind of the master of that, rather than ourselves.”


cityam--2020-12-02--Challenger lender Koto launches in the UK for left-behind consumers

A challenger lender focused on providing credit to freelancers and self-employed has today launched in the UK following an investment round .
Koto , authorised by the Financial Conduct Authority , has closed a £1.3m funding round which it says it will use to expand and acquire its first 50,000 users .
Read more : Guarantor lender Amigo flags going concern uncertainty as Covid-19 bites Kotto hopes to cater to “ near prime ” borrowers who are typically excluded by the big banks because of inconsistent income .
They are usually freelancers and the self employed , are new to @ @ @ @ @ @ @ a mark against their credit history .
PwC research shows there are between 10m and 14m people in the UK that struggle to access credit from mainstream sources .
Koto ’ s launch comes at a critical time for “ near prime ” borrowers left in a precarious position due to the pandemic .
And while the government has extended support for the self-employed , critics say that because the eligibility criteria is unchanged it means as many as 2.9m freelancers , contractors and self-employed people will remain excluded .
The idea for @ @ @ @ @ @ @ already running a successful firm in Ukraine , was unable to access credit from high street banks .
“ I didn ’ t have a UK credit history the banks could base a decision on , ” Rogalskiy said .
He hopes to build on the success of his Ukraine-based mobile-only bank Monobank , which boasts more than 2.9m customers .
Following in the footsteps of the digital banks , Koto customers can apply for credit exclusively through the app without relying on paper forms .
The lender claims to have customers up @ @ @ @ @ @ @ less than 10 minutes and have access to credit in under five .
Read more : Taxpayers to bear brunt as lenders hike interest rates on emergency loans Its Extra offering provides up to £400m of credit for a fixed fee of 20 pence per day while its Spread facility offers up to £1,000 with a fixed cost of £10 a month .
Shoring up its challenger credentials , Koto is the only near-prime credit product that can be added to Apple Pay and Google Pay , as well as offering a spending @ @ @ @

Challenger lender Koto launches in the UK for left-behind consumers
A challenger lender focused on providing credit to freelancers and self-employed has today launched in the UK following an investment round.
Koto, authorised by the Financial Conduct Authority, has closed a £1.3m funding round which it says it will use to expand and acquire its first 50,000 users.
Kotto hopes to cater to “near prime” borrowers who are typically excluded by the big banks because of inconsistent income. They are usually freelancers and the self employed, are new to credit or the UK, or have a mark against their credit history.
PwC research shows there are between 10m and 14m people in the UK that struggle to access credit from mainstream sources.
Koto’s launch comes at a critical time for “near prime” borrowers left in a precarious position due to the pandemic.
Koto team (L-R): Rob Escott, CEO; Misha Rogalskiy, co-founder and chairman; Simon Harris, COO
And while the government has extended support for the self-employed, critics say that because the eligibility criteria is unchanged it means as many as 2.9m freelancers, contractors and self-employed people will remain excluded.
The idea for Koto came when founder Misha Rogalskiy, already running a successful firm in Ukraine, was unable to access credit from high street banks.
“I didn’t have a UK credit history the banks could base a decision on,” Rogalskiy said. He hopes to build on the success of his Ukraine-based mobile-only bank Monobank, which boasts more than 2.9m customers.
Following in the footsteps of the digital banks, Koto customers can apply for credit exclusively through the app without relying on paper forms. The lender claims to have customers up and running with its virtual card in less than 10 minutes and have access to credit in under five.
Its Extra offering provides up to £400m of credit for a fixed fee of 20 pence per day while its Spread facility offers up to £1,000 with a fixed cost of £10 a month.
Shoring up its challenger credentials, Koto is the only near-prime credit product that can be added to Apple Pay and Google Pay, as well as offering a spending tracker with alerts.


cityam--2020-12-02--Cath Kidston returns to the high street with flagship Piccadilly store

Cath Kidston has this morning opened a flagship store in Piccadilly , which will be its only physical branch after the retro-inspired retailer fell into administration earlier this year .
The retailer closed all of its 60 UK stores in April , resulting in the loss of 900 jobs , after its Hong Kong private equity owner Baring appointed administrators following a failure to find a buyer .
Read more : Cath Kidston closes all stores as part of rescue deal Cath Kidston continued to trade online , with e-commerce now accounting for 85 per cent of its sales .
@ @ @ @ @ @ @ sq ft central London store will be “ experiential ” and has been designed to complement its digital-first strategy by showcasing a selection of products .
The announcement that Cath Kidston will reopen on the first day after lockdown has lifted follows a week of grim high street updates , which has seen Topshop-owner Arcadia fall into administration and Debenhams reveal it preparing to close all of its stores .
Read more : Topshop collapse : What went wrong for Sir Philip Green ’ s Arcadia retail empire ?
More than 25,000 retail @ @ @ @ @ @ @ of the two major high street brands .
The store – which the company has dubbed the “ Home of Cath Kidston – will focus on beauty and wellness , home entertaining , a haberdashery and a Christmas gift emporium .
“ Cath Kidston chief executive Melinda Paraie said : “ London is at the heart of our brand and we are thrilled to introduce the newly reimagined 180 Piccadilly to our customers , just in time for Christmas .
“ We are confident that our customers will recognise and love the quality @ @ @ @ @ @ @ highly curated environment , relatable to today ’ s lifestyle.
” Read more : Cath Kidston to review UK store locations in bid for higher footfall “ The Cath Kidston ethos is rooted in creating beautiful , functional pieces curated to bring everyday moments of joy , and that ’ s exactly what we ’ ve brought to life in 180 Piccadilly , ” said Holly Marler , the retailer ’ s creative director , added .
“ My team and I are delighted to welcome our loyal customers to this home from @ @ @ @ @ @ @ things Cath Kidston and is a cornerstone of our future plans for the brand .
”

Cath Kidston returns to the high street with flagship Piccadilly store
Cath Kidston could be bought by Next
Cath Kidston has this morning opened a flagship store in Piccadilly, which will be its only physical branch after the retro-inspired retailer fell into administration earlier this year.
The retailer closed all of its 60 UK stores in April, resulting in the loss of 900 jobs, after its Hong Kong private equity owner Baring appointed administrators following a failure to find a buyer.
Cath Kidston continued to trade online, with e-commerce now accounting for 85 per cent of its sales.
It said this morning that the 7,040 sq ft central London store will be “experiential” and has been designed to complement its digital-first strategy by showcasing a selection of products.
The announcement that Cath Kidston will reopen on the first day after lockdown has lifted follows a week of grim high street updates, which has seen Topshop-owner Arcadia fall into administration and Debenhams reveal it preparing to close all of its stores.
More than 25,000 retail jobs are at risk following the collapse of the two major high street brands.
The store – which the company has dubbed the “Home of Cath Kidston – will focus on beauty and wellness, home entertaining, a haberdashery and a Christmas gift emporium.
“Cath Kidston chief executive Melinda Paraie said: “London is at the heart of our brand and we are thrilled to introduce the newly reimagined 180 Piccadilly to our customers, just in time for Christmas.
“We are confident that our customers will recognise and love the quality and craft of the products in a highly curated environment, relatable to today’s lifestyle.”
“The Cath Kidston ethos is rooted in creating beautiful, functional pieces curated to bring everyday moments of joy, and that’s exactly what we’ve brought to life in 180 Piccadilly,” said Holly Marler, the retailer’s creative director, added.
“My team and I are delighted to welcome our loyal customers to this home from home – a store that celebrates all things Cath Kidston and is a cornerstone of our future plans for the brand.”


cityam--2020-12-02--Covid-19 brings Arcadia into administration, but Topshop’s brand has struggled for years

Retail group Arcadia , owner of British high street giants Topshop and Dorothy Perkins , hired administrators this week after the coronavirus pandemic “ severely impacted ” sales .
The retail empire , which is owned by controversial businessman Sir Philip Green , failed to secure extra funding to pay its debts despite the Black Friday sales period .
While the pandemic created an unforeseen set of circumstances , new YouGov BrandIndex data suggests that Arcadia ’ s ‘ jewel in the crown ’ brand , Topshop , had been struggling for a while .
In the lead up to @ @ @ @ @ @ @ the retail calendar and a time when brands should perform their best , Consideration scores ( whether someone would consider purchasing from the brand in future ) for both Topshop fell 6.6 points respectively .
Topshop ’ s Index score ( an average of Impression , Value , Quality , Reputation , Satisfaction and Recommend scores for the brand , and a good measure of brand health ) has been stagnant over the past eight years , at a time when rivals Next , Zara , H & M and Primark have seen @ @ @ @ @ @ @ ’ s scores increased from 10.0 to 16.0 , Zara ’ s scores improved from 11.9 to 13.1 , while Next ’ s scores increased from 24.2 to 29.2 .
Primark ’ s brand health increased from -10 to +2.7 over the period , despite having no online offering and stores being in various stages of closure since March .
One former boss of Topshop attributed the brand ’ s stagnation to Sir Philip Green ’ s refusal to acknowledge the rise of online shopping .
YouGov Profiles shows that , of those @ @ @ @ @ @ @ in the last three months , more than half make most or all of their purchase online ( 55 per cent ) and two thirds say they usually browse and purchase entirely online ( 63 per cent ) .
With rumours that online-only brand Boohoo is looking to buy Topshop , transferring Topshop ’ s internet-savvy customer base should be a welcome and relatively seamless move considering a third of Topshop customers have also bought clothing from Boohoo recently ( 34 per cent ) .

Covid-19 brings Arcadia into administration, but Topshop’s brand has struggled for years
Topshop has struggled with its public perception for some time
Retail group Arcadia, owner of British high street giants Topshop and Dorothy Perkins, hired administrators this week after the coronavirus pandemic “severely impacted” sales. The retail empire, which is owned by controversial businessman Sir Philip Green, failed to secure extra funding to pay its debts despite the Black Friday sales period.
While the pandemic created an unforeseen set of circumstances, new YouGov BrandIndex data suggests that Arcadia’s ‘jewel in the crown’ brand, Topshop, had been struggling for a while.
In the lead up to Black Friday, the biggest event in the retail calendar and a time when brands should perform their best, Consideration scores (whether someone would consider purchasing from the brand in future) for both Topshop fell 6.6 points respectively.
Topshop’s Index score (an average of Impression, Value, Quality, Reputation, Satisfaction and Recommend scores for the brand, and a good measure of brand health) has been stagnant over the past eight years, at a time when rivals Next, Zara, H&M and Primark have seen their scores improve.
H&M’s scores increased from 10.0 to 16.0, Zara’s scores improved from 11.9 to 13.1, while Next’s scores increased from 24.2 to 29.2. Primark’s brand health increased from -10 to +2.7 over the period, despite having no online offering and stores being in various stages of closure since March.
One former boss of Topshop attributed the brand’s stagnation to Sir Philip Green’s refusal to acknowledge the rise of online shopping. YouGov Profiles shows that, of those who’ve bought clothes from Topshop in the last three months, more than half make most or all of their purchase online (55 per cent) and two thirds say they usually browse and purchase entirely online (63 per cent).
With rumours that online-only brand Boohoo is looking to buy Topshop, transferring Topshop’s internet-savvy customer base should be a welcome and relatively seamless move considering a third of Topshop customers have also bought clothing from Boohoo recently (34 per cent).


cityam--2020-12-01--Government slammed for relying ‘too much’ on management consultants in Brexit preparations

The government relies “ too much ” on management consultants for work on Brexit preparations “ that could be better done by civil servants ” , the select committee on government spending has warned .
In a wide-ranging report published today , the Public Accounts Committee slammed the government ’ s negligence of civil servants in preparing for Brexit , amid warnings that ministers are “ taking limited responsibility ” for the UK ’ s exit from the EU .
Read more : Gove ‘ doesn ’ t know ’ how many customs agents UK has ready for Brexit , @ @ @ @ @ @ @ government continues to spend too much on consultants to undertake work that could be better done by civil servants , and does not do enough to utilise or develop skills and experience in-house , ” the report said .
“ Four and a half years after the Brexit vote , with preparations for EU exit costing £4.4bn so far and involving 22,000 civil servants — and many more paid consultants — the UK still faces the risk of serious disruption and delay at the short Channel crossings .
It comes after documents released @ @ @ @ @ @ @ been awarded more than £180m to deliver Brexit , as the government faces mounting criticism for handing out taxpayer cash to private firms during the pandemic .
The government has so far signed six Brexit contracts each worth £30m with KPMG , McKinsey , Bain , Deloitte , Accenture and PwC .
Ministers said the £180m sum was to “ support the successful delivery of the UK ’ s economic and political independence , including relationships with the EU and the rest of the world.
” “ There are still significant risks to @ @ @ @ @ @ @ of the transition period on 31 December 2020 , but the government still only seems to be taking limited responsibility for that readiness , ” the PAC report said .
The select committee noted that it has raised concerns about Britain ’ s preparedness for Brexit in 12 separate reports since the 2016 referendum , “ and yet , with a few weeks to go , border systems remain in development and plans for managing disruption or prioritisation of key goods are unclear ” , it said .
The cross-party group of MPs @ @ @ @ @ @ @ risk of serious disruption and delay at the short Channel crossings ” post-Brexit .
According to the government ’ s latest “ reasonable worst-case planning assumptions ” , between 40 and 70 per cent of lorries travelling between the EU and the UK may still not be ready for new border controls .
The PAC report warned that a failure to prepare UK borders for Brexit would have a “ serious ” impact on Britain ’ s food imports and exports .
“ After 12 PAC reports full of warnings since the Brexit @ @ @ @ @ @ @ 1 January we face serious disruption and delay at the short Channel crossings that deliver a majority of our fresh food supplies , ” said PAC chair Meg Hillier .
“ The lack of definite next steps and inability to secure a deal adds to the challenge .
A year after the oven ready deal , we have more of a cold turkey and businesses and consumers do not know what to be prepared for , ” she said .
The report also slammed the government ’ s various media blitzes telling businesses @ @ @ @ @ @ @ their effect on companies ’ readiness for the UK leaving the bloc remained “ unclear ” .
The government last year launched a £46m Get Ready for Brexit campaign , which it abandoned several months later after the EU granted an extension to trade deal negotiations .
In July , the Cabinet Office launched a separate Let ’ s Get Going media crusade with the aim of informing businesses and the public about what actions they need to take to be ready for the end of the transition period .
However , government @ @ @ @ @ @ @ third of SMEs still believe the transition period will be extended , while the Cabinet Office does not know whether the remaining 64 per cent have taken action to be ready .
Read more : Alok Sharma slammed for swerving parliamentary scrutiny on Brexit The select committee urged ministers to “ maximise all remaining opportunities for getting businesses and individuals to act in the time remaining to January 2021 ” .
“ Pretending that things you don ’ t want to happen are not going to happen is not a recipe for government @ @ @ @ @ @ @ , ” said Hillier .
“ We ’ re paying for that approach in the UK ’ s response to the Covid-19 pandemic and can only hope that we are not now facing another catastrophe , at the border in four weeks ’ time.
” It comes as the UK remains locked in talks with EU chief negotiator Michel Barnier as the two sides attempt to hash out a last-minute trade deal .
Time is running thin for a trade deal with the bloc , with the European Commission warning that any agreement @ @ @ @ @ @ @ to be ratified through parliament on both sides .
Barnier and UK envoy David Frost have so far not been able to reach agreements on the key stumbling blocks of fisheries , the so-called level playing field , and settling future disputes between Britain and the EU .
EU chief Ursula von Der Leyen last week said the bloc is now prepared for a no-deal Brexit .
“ With very little time ahead of us , we will do all in our power to reach an agreement .
We are ready to be @ @ @ @ @ @

Government slammed for relying ‘too much’ on management consultants in Brexit preparations
The government has so far handed out contracts worth more than £180m to management consultants to prepare the UK for Brexit
The government relies “too much” on management consultants for work on Brexit preparations “that could be better done by civil servants”, the select committee on government spending has warned.
In a wide-ranging report published today, the Public Accounts Committee slammed the government’s negligence of civil servants in preparing for Brexit, amid warnings that ministers are “taking limited responsibility” for the UK’s exit from the EU.
“[The] government continues to spend too much on consultants to undertake work that could be better done by civil servants, and does not do enough to utilise or develop skills and experience in-house,” the report said.
“Four and a half years after the Brexit vote, with preparations for EU exit costing £4.4bn so far and involving 22,000 civil servants — and many more paid consultants — the UK still faces the risk of serious disruption and delay at the short Channel crossings.
It comes after documents released in October showed that management consultancies have been awarded more than £180m to deliver Brexit, as the government faces mounting criticism for handing out taxpayer cash to private firms during the pandemic.
The government has so far signed six Brexit contracts each worth £30m with KPMG, McKinsey, Bain, Deloitte, Accenture and PwC.
Ministers said the £180m sum was to “support the successful delivery of the UK’s economic and political independence, including relationships with the EU and the rest of the world.”
Commenting on the PAC report, Tamzen Isacsson, chief executive of the Management Consultancies Association, said: “Brexit has created an unprecedented workload for the UK government with the need to set up and plan new systems to cover border control, trade, agricultural policy and immigration as well as many other complex policy areas.
“The consultancy sector has supported the UK in these efforts, providing vital skills, extra capacity and insight and experience from all economic sectors as well as innovative ways of working.”
Oven ready
The select committee noted that it has raised concerns about Britain’s preparedness for Brexit in 12 separate reports since the 2016 referendum, “and yet, with a few weeks to go, border systems remain in development and plans for managing disruption or prioritisation of key goods are unclear”, it said.
“The government still only seems to be taking limited responsibility for that readiness”.
The cross-party group of MPs noted their “extreme concern about the risk of serious disruption and delay at the short Channel crossings” post-Brexit.
According to the government’s latest “reasonable worst-case planning assumptions”, between 40 and 70 per cent of lorries travelling between the EU and the UK may still not be ready for new border controls.
The PAC report warned that a failure to prepare UK borders for Brexit would have a “serious” impact on Britain’s food imports and exports.
“After 12 PAC reports full of warnings since the Brexit vote, the evidence suggests that come 1 January we face serious disruption and delay at the short Channel crossings that deliver a majority of our fresh food supplies,” said PAC chair Meg Hillier.
“The lack of definite next steps and inability to secure a deal adds to the challenge. A year after the oven ready deal, we have more of a cold turkey and businesses and consumers do not know what to be prepared for,” she said.
Get Brexit Done
The report also slammed the government’s various media blitzes telling businesses to prepare for Brexit, warning that their effect on companies’ readiness for the UK leaving the bloc remained “unclear”.
The government last year launched a £46m Get Ready for Brexit campaign, which it abandoned several months later after the EU granted an extension to trade deal negotiations.
In July, the Cabinet Office launched a separate Let’s Get Going media crusade with the aim of informing businesses and the public about what actions they need to take to be ready for the end of the transition period.
However, government survey data found that more than a third of SMEs still believe the transition period will be extended, while the Cabinet Office does not know whether the remaining 64 per cent have taken action to be ready.
The select committee urged ministers to “maximise all remaining opportunities for getting businesses and individuals to act in the time remaining to January 2021”.
“Pretending that things you don’t want to happen are not going to happen is not a recipe for government, it is a recipe for disaster,” said Hillier.
“We’re paying for that approach in the UK’s response to the Covid-19 pandemic and can only hope that we are not now facing another catastrophe, at the border in four weeks’ time.”
It comes as the UK remains locked in talks with EU chief negotiator Michel Barnier as the two sides attempt to hash out a last-minute trade deal.
Time is running thin for a trade deal with the bloc, with the European Commission warning that any agreement will need a “significant” period to be ratified through parliament on both sides.
Barnier and UK envoy David Frost have so far not been able to reach agreements on the key stumbling blocks of fisheries, the so-called level playing field, and settling future disputes between Britain and the EU.
EU chief Ursula von Der Leyen last week said the bloc is now prepared for a no-deal Brexit.
“With very little time ahead of us, we will do all in our power to reach an agreement. We are ready to be creative”, she said.


cityam--2020-12-01--Salesforce buys workplace messaging app Slack in $28bn deal

Salesforce has agreed to buy workplace messaging app Slack in a deal worth $ 27.7bn , the company confirmed tonight .
The mixed stock and share agreement will see Slack shareholders receive $ 26.79 in cash and 0.0776 shares of Salesforce stock for each Slack share .
Salesforce said the deal , which is set to complete in the second quarter of its 2022 fiscal year , would be “ transformative ” for the industry .
“ This is a match made in heaven , ” said Marc Benioff , chair and chief executive of Salesforce .
“ Together , @ @ @ @ @ @ @ of enterprise software and transform the way everyone works in the all-digital , work-from-anywhere world .
I ’ m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.
” The San Francisco-based group said it will integrate Slack into its core customer relationship management platform , acting as a new interface to help draw customers into its software services .
Shares in Salesforce were down just over three per cent in after-hours trading , while Slack ticked up marginally .
The two tech firms have had differing fortunes this year @ @ @ @ @ @ @ In August Salesforce raised its annual revenue forecast after cashing in on booming demand for cloud services .
By contrast , Slack has struggled to fully capitalise on the shift to home working amid fierce competition from other workplace apps such as Microsoft Teams .
Slack chief executive and co-founder Stewart Butterfield said : “ Salesforce started the cloud revolution , and two decades later , we are still tapping into all the possibilities it offers to transform the way we work .
The opportunity we see together is massive .
”

Salesforce buys workplace messaging app Slack in $28bn deal
Salesforce is buying Slack in a combined cash and share deal
Salesforce has agreed to buy workplace messaging app Slack in a deal worth $27.7bn, the company confirmed tonight.
The mixed stock and share agreement will see Slack shareholders receive $26.79 in cash and 0.0776 shares of Salesforce stock for each Slack share.
Salesforce said the deal, which is set to complete in the second quarter of its 2022 fiscal year, would be “transformative” for the industry.
“This is a match made in heaven,” said Marc Benioff, chair and chief executive of Salesforce.
“Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.”
The San Francisco-based group said it will integrate Slack into its core customer relationship management platform, acting as a new interface to help draw customers into its software services.
Shares in Salesforce were down just over three per cent in after-hours trading, while Slack ticked up marginally.
The two tech firms have had differing fortunes this year as a result of the pandemic.
In August Salesforce raised its annual revenue forecast after cashing in on booming demand for cloud services.
By contrast, Slack has struggled to fully capitalise on the shift to home working amid fierce competition from other workplace apps such as Microsoft Teams.
Slack chief executive and co-founder Stewart Butterfield said: “Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. The opportunity we see together is massive.”


cityam--2020-12-01--Business bodies warn that three-quarters of pubs, bars and casinos could go bust under new tier syst

The UK ’ s leading business bodies have slammed MPs ’ decision to vote the new tier system in place from midnight tonight as the “ nail in the coffin ” for many businesses , warning that it will cause three-quarters of night-time venues to shut forever .
The Prime Minister this evening fought off the largest Tory backbench rebellion in his premiership after MPs agreed to implement new tiered Covid restrictions from tomorrow .
Read more : What counts as a substantial meal under new Tier 2 rules for pubs ?
The vote means London will enter Tier 2 @ @ @ @ @ @ @ joins 99 per cent of England ’ s population in the top two levels of coronavirus restrictions , Under the fresh lockdown measures , London ’ s pubs and restaurants will only be allowed to serve patrons if they order a “ substantial meal ” while household mixing will not be allowed indoors .
Casinos , cinemas and theatres must adhere to the new 11pm curfew , while clubs will not be allowed to reopen under any tiers .
The Night Time Industries Association ( NTIA ) , which represents more than 1,200 @ @ @ @ @ @ @ venues across the country , said the new tier system demolished chances of a Christmas recovery for the night time sector , which “ has suffered horrendously since the start of the pandemic ” .
“ Today ’ s parliamentary vote on the new Covid restrictions will be the final nail in the coffin for thousands of businesses in Tier Two or Three areas , ” said NTIA chief Michael Kill .
“ Without the required financial support , 75.6 per cent of night-time economy businesses now face the reality of permanent closure @ @ @ @ @ @ @ businesses that are part of the very fabric of town and city centres and of our social lives.
” The night time economy is the UK ’ s fifth-biggest industry , accounting for at least eight per cent of the UK ’ s employment and annual revenues of £66bn , according to data from the NTIA .
And London ’ s night time economy directly supports 723,000 jobs — one in eight in the capital , according to the Office for National Statistics .
In a survey of more than 400 entertainment and @ @ @ @ @ @ @ found that almost three-quarters of businesses have made employees redundant since the start of the pandemic , with more than 60 per cent having let go of at least half of their staff .
“ These new restrictions , overtly targeting the hospitality sector , have no real grounding in scientific fact and leave little or no confidence in the Government making science-based policy decisions , ” said Kill .
“ It is now abundantly clear that the night-time economy is being sacrificed so that other sectors may trade through the festive period @ @ @ @ @ @ @ sector from operating sustainably then it must also proportionately compensate the sector for lost revenue , pre and post the festive period.
” Prime Minister Boris Johnson today announced a £1,000 grant for wet-led pubs forced to shutter under the new tier system , which will last until at least 2 February .
Announcing the measures in the Commons , Johnson said : “ Our pubs , hotels and restaurants are at the heart of our community and a part of our identity as a country .
The hospitality industry has borne a @ @ @ @ @ @ @ crisis.
” But business leaders were quick to slam the PM for handing cash to some sectors while leaving others to support themselves .
“ The £1,000 contribution for wet lead pubs as a top up grant is an insult , What about nightclubs ?
One business type that has escaped the narrative of financial support since March , ” said Kill .
Meanwhile the British Beer & Pub Association ( BBPA ) , the leading trade association representing brewers and pubs , criticised the support package as “ not nearly enough ” @ @ @ @ @ @ @ further cash for businesses forced to hibernate over the winter .
“ £1,000 on its own is a meagre amount for pubs to cover nine weeks of costs let alone compensate them for the huge loss of business over the festive period , ” said BBPA chief executive Emma McClarkin .
“ It is quite frankly an insult to thousands of pubs across the UK that are on their knees .
It barely touches the sides of what pubs up and down the country require to cover their costs and ensure they survive @ @ @ @ @ @ @ does it recognise the inherent danger they are in heading into the next year without more support should the tighter tier system remain unchanged.
” Read more : ‘ Vaccine passports ’ will not be required for the pub , says Michael Gove Recent research by the BBPA showed that the average pub will lose £47,000 in revenue under the new tier system , while the government will spend an estimated extra £6.2bn each month to prop up furloughed employees .
“ A £1,000 payment is not even a sticking plaster , ” @ @ @ @ @ @ @ more long-term support to ensure its survival , else more than 30,000 pubs – 80 per cent of those in England — are at risk of closing for good if this is all the government is going to offer .
”

Business bodies warn that three-quarters of pubs, bars and casinos could go bust under new tier system
The UK’s leading business bodies have slammed MPs’ decision to vote the new tier system in place from midnight tonight as the “nail in the coffin” for many businesses, warning that it will cause three-quarters of night-time venues to shut forever.
The Prime Minister this evening fought off the largest Tory backbench rebellion in his premiership after MPs agreed to implement new tiered Covid restrictions from tomorrow.
The vote means London will enter Tier 2 from midnight tonight, as the capital joins 99 per cent of England’s population in the top two levels of coronavirus restrictions,
Under the fresh lockdown measures, London’s pubs and restaurants will only be allowed to serve patrons if they order a “substantial meal” while household mixing will not be allowed indoors.
Casinos, cinemas and theatres must adhere to the new 11pm curfew, while clubs will not be allowed to reopen under any tiers.
The Night Time Industries Association (NTIA), which represents more than 1,200 bars, clubs, casinos and music venues across the country, said the new tier system demolished chances of a Christmas recovery for the night time sector, which “has suffered horrendously since the start of the pandemic”.
“Today’s parliamentary vote on the new Covid restrictions will be the final nail in the coffin for thousands of businesses in Tier Two or Three areas,” said NTIA chief Michael Kill.
“Without the required financial support, 75.6 per cent of night-time economy businesses now face the reality of permanent closure. Many of these are the smaller businesses that are part of the very fabric of town and city centres and of our social lives.”
The night time economy is the UK’s fifth-biggest industry, accounting for at least eight per cent of the UK’s employment and annual revenues of £66bn, according to data from the NTIA.
And London’s night time economy directly supports 723,000 jobs — one in eight in the capital, according to the Office for National Statistics.
In a survey of more than 400 entertainment and hospitality businesses last week, the NTIA found that almost three-quarters of businesses have made employees redundant since the start of the pandemic, with more than 60 per cent having let go of at least half of their staff.
“These new restrictions, overtly targeting the hospitality sector, have no real grounding in scientific fact and leave little or no confidence in the Government making science-based policy decisions,” said Kill.
“It is now abundantly clear that the night-time economy is being sacrificed so that other sectors may trade through the festive period. If the government will prevent our sector from operating sustainably then it must also proportionately compensate the sector for lost revenue, pre and post the festive period.”
Prime Minister Boris Johnson today announced a £1,000 grant for wet-led pubs forced to shutter under the new tier system, which will last until at least 2 February.
Announcing the measures in the Commons, Johnson said: “Our pubs, hotels and restaurants are at the heart of our community and a part of our identity as a country. The hospitality industry has borne a disproportionate share of the burden in this crisis.”
But business leaders were quick to slam the PM for handing cash to some sectors while leaving others to support themselves.
“The £1,000 contribution for wet lead pubs as a top up grant is an insult, What about nightclubs? One business type that has escaped the narrative of financial support since March,” said Kill.
Meanwhile the British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, criticised the support package as “not nearly enough”, and urged ministers to draw up further cash for businesses forced to hibernate over the winter.
“£1,000 on its own is a meagre amount for pubs to cover nine weeks of costs let alone compensate them for the huge loss of business over the festive period,” said BBPA chief executive Emma McClarkin.
“It is quite frankly an insult to thousands of pubs across the UK that are on their knees. It barely touches the sides of what pubs up and down the country require to cover their costs and ensure they survive,” she added.
“Nor does it recognise the inherent danger they are in heading into the next year without more support should the tighter tier system remain unchanged.”
Recent research by the BBPA showed that the average pub will lose £47,000 in revenue under the new tier system, while the government will spend an estimated extra £6.2bn each month to prop up furloughed employees.
“A £1,000 payment is not even a sticking plaster,” said McClarkin. “Our sector needs more long-term support to ensure its survival, else more than 30,000 pubs – 80 per cent of those in England — are at risk of closing for good if this is all the government is going to offer.”


cityam--2020-12-01--Prime Minister’s brother tapped to launch new City advisory firm

Prime Minister Boris Johnson ’ s half-brother has reportedly been tapped to help launch the London branch of a global financial advisory firm .
Max Johnson has been made a partner at ABG International , where he will advise corporate clients , Sky News reported .
The venture is being launched as a new London offshoot of ABG Advisory , a global investment firm based in New York .
ABG is led by Jackson Eisenpresser , an American banker who served for three years at the advisory firm founded by former prime minister Tony Blair .
Johnson has spent much @ @ @ @ @ @ @ in China , including four years as an investment banker at Goldman Sachs in Hong Kong .
In June he joined the board or Reviv Global , a private healthcare provider specialising in IV therapies that now offers Covid-19 testing services .
“ As the past year has demonstrated , there has never been a more important time to enhance connectivity and strengthen ties around the world , ” Johnson told Sky News .
“ While politicians are focused on their domestic agenda , business must forge the path building stronger cross-border bridges @ @ @ @ @ @ @ and seize the opportunities that are out there.
” Read more : Flutter hires former Labour deputy leader Tom Watson as an adviser ABG will join a growing number of so-called boutique finance firms offering advisory services to global corporate clients .
ABG could not be reached for comment .

Prime Minister’s brother tapped to launch new City advisory firm
Prime Minister Boris Johnson’s half-brother has reportedly been tapped to help launch the London branch of a global financial advisory firm.
Max Johnson has been made a partner at ABG International, where he will advise corporate clients, Sky News reported.
The venture is being launched as a new London offshoot of ABG Advisory, a global investment firm based in New York.
ABG is led by Jackson Eisenpresser, an American banker who served for three years at the advisory firm founded by former prime minister Tony Blair.
Johnson has spent much of his career over the last decade in China, including four years as an investment banker at Goldman Sachs in Hong Kong.
In June he joined the board or Reviv Global, a private healthcare provider specialising in IV therapies that now offers Covid-19 testing services.
“As the past year has demonstrated, there has never been a more important time to enhance connectivity and strengthen ties around the world,” Johnson told Sky News.
“While politicians are focused on their domestic agenda, business must forge the path building stronger cross-border bridges. We want to help companies navigate and seize the opportunities that are out there.”
ABG will join a growing number of so-called boutique finance firms offering advisory services to global corporate clients.
ABG could not be reached for comment.


cityam--2020-12-01--New Covid restrictions pass in parliament despite large Tory rebellion

MPs have agreed to implement new tiered Covid restrictions from tomorrow , however Boris Johnson was rocked by the largest Tory backbench rebellion he has faced .
Seventy-eight MPs , including 55 Tory MPs , voted against the government and against the three-tier Covid restrictions .
The largest previous rebellion against Johnson was when 44 Conservative MPs voted against bringing in a 10pm hospitality curfew in England .
Labour leader Sir Keir Starmer instructed his MPs to abstain from the vote .
The vote means London will tomorrow be put into Tier 2 , meaning the hospitality and retail sectors @ @ @ @ @ @ @ the 1922 committee of Tory backbenchers Graham Brady voted against the new restrictions and argued that the government had not provided enough evidence for its approach .
“ If government is to take away fundamental liberties of the people whom we represent , they must demonstrate beyond question that they are acting in a way that is both proporaitonate and absolutely necessary , ” he said .
“ I believe the government has failed to make that compelling case.
” Health secretary Matt Hancock told the House of Commons that “ we can @ @ @ @ @ @ @ Covid ] ” as some MPs have suggested .
“ The measures we take in this county , and the measures in these regulations , are similar in kind and seek to strike the same balance as measures in similar countries the world over , ” he said .
From tomorrow , London ’ s pubs and restaurants can only serve patrons if they order a “ substantial meal ” and household mixing will not be allowed indoors .
Environment secretary George Eustice said yesterday that a scotch egg would count as a @ @ @ @ @ @ @ an animated discussion in the media on what else would count under the new rules .
Read more : London pandemic update : How many Covid-19 infections are there in your local borough ?
Johnson announced today that all pubs in Tier 2 that can not open under the new restrictions will be given a £1,000 grant .
The government will review the status of each region on 16 December .

New Covid restrictions pass in parliament despite large Tory rebellion
Boris Johnson speaking in the House of Commons before the vote today (Image: UK Parliament/Jessica Taylor)
MPs have agreed to implement new tiered Covid restrictions from tomorrow, however Boris Johnson was rocked by the largest Tory backbench rebellion he has faced.
Seventy-eight MPs, including 55 Tory MPs, voted against the government and against the three-tier Covid restrictions.
The largest previous rebellion against Johnson was when 44 Conservative MPs voted against bringing in a 10pm hospitality curfew in England.
Labour leader Sir Keir Starmer instructed his MPs to abstain from the vote.
The vote means London will tomorrow be put into Tier 2, meaning the hospitality and retail sectors can open their doors.
Chair of the 1922 committee of Tory backbenchers Graham Brady voted against the new restrictions and argued that the government had not provided enough evidence for its approach.
“If government is to take away fundamental liberties of the people whom we represent, they must demonstrate beyond question that they are acting in a way that is both proporaitonate and absolutely necessary,” he said.
“I believe the government has failed to make that compelling case.”
Health secretary Matt Hancock told the House of Commons that “we can’t learn to live with [Covid]” as some MPs have suggested.
“The measures we take in this county, and the measures in these regulations, are similar in kind and seek to strike the same balance as measures in similar countries the world over,” he said.
From tomorrow, London’s pubs and restaurants can only serve patrons if they order a “substantial meal” and household mixing will not be allowed indoors.
Environment secretary George Eustice said yesterday that a scotch egg would count as a substantial meal, opening the door to an animated discussion in the media on what else would count under the new rules.
Johnson announced today that all pubs in Tier 2 that cannot open under the new restrictions will be given a £1,000 grant.
The government will review the status of each region on 16 December.


cityam--2020-12-02--Italian restaurant chain Prezzo bought by private equity firm Cain International

Italian restaurant chain Prezzo has been bought by private equity firm Cain International , the companies announced this afternoon .
Cain International , which also holds stakes in Competitive Socialising – the owner of Swingers crazy golf – and women ’ s private members club The Allbright , said Prezzo has outperformed the struggling casual dining sector over the last 12 months .
It said the high street restaurant chain traded robustly in the lead up to lockdown in March , and in the intervening period between the first and second lockdowns .
The deal , which is expected to @ @ @ @ @ @ @ vote in confidence in the UK ’ s casual dining sector , which has been battered by the coronavirus pandemic and lockdown restrictions .
Cain International said it will support Prezzo ’ s ambition to become the “ UK ’ s favourite Italian ” and help reinvigorate high streets as they begin to recover from the Covid-19 crisis .
Prezzo ’ s management team , led by executive chair Karen Jones , who co-founded Cafe Rouge , co-invested in the deal .
Jonathan Goldstein , chief executive of Cain International , said : @ @ @ @ @ @ @ and leisure brands with disciplined leadership will thrive in a post-Covid landscape .
Read more : Restaurants and clubs that survive Covid may see a boom like never before “ Prezzo has a clear vision for how to best serve its customers and communities and I am confident that the combination of Cain ’ s operational and financial expertise , the exceptional management team led by Karen , and the commitment of Prezzo ’ s entire workforce will enable the business to realise its full potential .
“ We are extremely excited about @ @ @ @ @ @ @ on a path toward renewed growth .
”

Italian restaurant chain Prezzo bought by private equity firm Cain International
FRP advised Italian restaurant chain Prezzo on its sale to Cain International
Italian restaurant chain Prezzo has been bought by private equity firm Cain International, the companies announced this afternoon.
Cain International, which also holds stakes in Competitive Socialising – the owner of Swingers crazy golf – and women’s private members club The Allbright, said Prezzo has outperformed the struggling casual dining sector over the last 12 months.
It said the high street restaurant chain traded robustly in the lead up to lockdown in March, and in the intervening period between the first and second lockdowns.
The deal, which is expected to complete later this month, signifies a vote in confidence in the UK’s casual dining sector, which has been battered by the coronavirus pandemic and lockdown restrictions.
Cain International said it will support Prezzo’s ambition to become the “UK’s favourite Italian” and help reinvigorate high streets as they begin to recover from the Covid-19 crisis.
Prezzo’s management team, led by executive chair Karen Jones, who co-founded Cafe Rouge, co-invested in the deal.
Jonathan Goldstein, chief executive of Cain International, said: “We firmly believe that strong hospitality and leisure brands with disciplined leadership will thrive in a post-Covid landscape.
“Prezzo has a clear vision for how to best serve its customers and communities and I am confident that the combination of Cain’s operational and financial expertise, the exceptional management team led by Karen, and the commitment of Prezzo’s entire workforce will enable the business to realise its full potential.
“We are extremely excited about joining the Prezzo family and putting it on a path toward renewed growth.”


cityam--2020-12-02--Countrywide rejects £82m takeover bid by rival estate agent firm Connells

Estate agent chain Countrywide has rejected an £82m offer from rival firm Connells , and announced it has received an improved proposal from private equity investor Alchemy Partners .
The company said today that it had considered the 250p per share cash offer from Connells – a subsidiary of Skipton Building Society – but has unanimously rejected the bid .
In response Connells said it will consider its options and urged Countrywide shareholders to take no action in relation to the updated Alchemy proposal .
Alchemy Partners has revised its equity raising proposal after Countrywide shareholders rejected an initial £90m @ @ @ @ @ @ @ the resignation of executive chairman Peter Long .
The new proposal would give current shareholders the opportunity to sell their shares at 250p per share and a recapitalisation of the company of around £70m , underwritten by Alchemy .
Under the revised offer , shareholders can sell their shares to Alchemy Partners , retain their stake or invest further capital .
Countrywide said it would examine all potential options , including the Alchemy proposal and a capital raise from existing shareholders .
The latest proposals come after rival group LSL abandoned a potential @ @ @ @ @ @ @ terminating a deal that would have created the UK ’ s biggest estate agent , amid market uncertainty due to the coronavirus pandemic .

Countrywide rejects £82m takeover bid by rival estate agent firm Connells
Alchemy Partners has revised its offer to Countrywide
Estate agent chain Countrywide has rejected an £82m offer from rival firm Connells, and announced it has received an improved proposal from private equity investor Alchemy Partners.
The company said today that it had considered the 250p per share cash offer from Connells – a subsidiary of Skipton Building Society – but has unanimously rejected the bid.
In response Connells said it will consider its options and urged Countrywide shareholders to take no action in relation to the updated Alchemy proposal.
Alchemy Partners has revised its equity raising proposal after Countrywide shareholders rejected an initial £90m lifeline plan, which last week prompted the resignation of executive chairman Peter Long.
The new proposal would give current shareholders the opportunity to sell their shares at 250p per share and a recapitalisation of the company of around £70m, underwritten by Alchemy.
Under the revised offer, shareholders can sell their shares to Alchemy Partners, retain their stake or invest further capital.
Countrywide said it would examine all potential options, including the Alchemy proposal and a capital raise from existing shareholders.
The latest proposals come after rival group LSL abandoned a potential £500m merger with Countrywide in March, terminating a deal that would have created the UK’s biggest estate agent, amid market uncertainty due to the coronavirus pandemic.


cityam--2020-12-02--FTSE inches higher after Pfizer vaccine approval

The FTSE 100 inched higher this morning as the UK became the first country in the world to approve the Pfizer/Biontech coronavirus vaccine for use .
Having opened in the red , London ’ s premier index was up 0.2 per cent at midday , with the FTSE 250 of mid-cap firms down 0.3 per cent .
Read more : Pfizer/BioNTech vaccine approved for use in the UK Analysts said that mixed sentiment in Asia had pushed European markets down , despite another record day on Wall Street yesterday .
In addition , investors are awaiting the outcome of this @ @ @ @ @ @ @ with less than a month before the transition period is set to end .
Ministers have warned that with gaps between the two sides in fishing and governance still in evidence , a no deal is still a real possibility .
The FTSE 250 , in particular , is considered an effective gauge of Brexit-related sentiment .
The slow open came after the FTSE climbed two per cent yesterday , suggesting that the momentum from November ’ s record rally showed no sign of slowing down .
This morning ’ s announcement comes @ @ @ @ @ @ @ Pfizer/Biontech vaccine was 95 per cent effective .
Health secretary Matt Hancock said that the rollout of the vaccine would begin as early as next week .
Before the Open newsletter : Start your day with the City View podcast and key market data CMC Markets ’ Michael Hewson said : “ The lack of market reaction suggests that this decision was probably widely expected at some point , and perhaps the real challenge now lies in the production , as well as the speed of any rollout of the two jab treatment @ @ @ @ @ @ @ program was to start this month , the fact that two jabs are required means that it ’ s likely to be several months before we start to see a possible economic benefit in terms of an easing of restrictions.
” Despite the drop , the FTSE was still trading ahead of its European counterparts , with the DAX down 0.4 and the CAC down 0.2 per cent respectively .
Last night , America ’ s main markets hit new record highs after it emerged that talks over a new stimulus package were @ @ @ @ @ @ @ first time since November ’ s election , US Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi met for talks .
In addition , a bipartisan group of senators and House members proposed $ 908bn worth of coronavirus relief measures .
Read more : FTSE 100 and Wall Street chase record highs as vaccine hopes boost markets But markets eased back in pre-open trading this morning as investors awaited the latest round of US jobs data .
The latest private payroll figures , which will give an indication as to @ @ @ @ @ @ @ recovery , are expected in the early afternoon .
Pfizer shares were up 4.3 per cent in pre-trading , however , as markets responded to the UK ’ s decision to authorise its vaccine for use .
The EU is expected to follow suit soon .

FTSE inches higher after Pfizer vaccine approval but Wall Street slips
London Tech to see big changes in 2023
The FTSE 100 inched higher today as the UK became the first country in the world to approve the Pfizer/Biontech coronavirus vaccine for use.
Having opened in the red, London’s premier index was up 0.5 per cent in the early afternoon, with the FTSE 250 of mid-cap firms down 0.3 per cent.
Analysts said that mixed sentiment in Asia had pushed European markets down, despite another record day on Wall Street yesterday.
In addition, investors are awaiting the outcome of this week’s crunch Brexit talks, with less than a month before the transition period is set to end.
Ministers have warned that with gaps between the two sides in fishing and governance still in evidence, a no deal is still a real possibility.
The FTSE 250, in particular, is considered an effective gauge of Brexit-related sentiment.
The slow open came after the FTSE climbed two per cent yesterday, suggesting that the momentum from November’s record rally showed no sign of slowing down.
Miners Rio Tinto and BHP led the rise, picking up 4.2 and 4 per cent respectively.
This morning’s announcement comes just weeks after scientists revealed that the Pfizer/Biontech vaccine was 95 per cent effective.
Health secretary Matt Hancock said that the rollout of the vaccine would begin as early as next week.
Before the Open newsletter: Start your day with the City View podcast and key market data
CMC Markets’ Michael Hewson said: “The lack of market reaction suggests that this decision was probably widely expected at some point, and perhaps the real challenge now lies in the production, as well as the speed of any rollout of the two jab treatment.
“Ultimately even if a vaccination program was to start this month, the fact that two jabs are required means that it’s likely to be several months before we start to see a possible economic benefit in terms of an easing of restrictions.”
Despite the drop, the FTSE was still trading ahead of its European counterparts, with the DAX down 0.4 and the CAC down 0.2 per cent respectively.
Wall Street eases back after record highs
Last night, America’s main markets hit new record highs after it emerged that talks over a new stimulus package were back on the table.
For the first time since November’s election, US Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi met for talks.
In addition, a bipartisan group of senators and House members proposed $908bn worth of coronavirus relief measures.
But markets slipped today as weaker than hoped payroll data saw traders take the temperature.
The Dow Jones Industrial Average fell 128.83 points, or 0.43 per cent, at the open to 29,695.09.
The S&P 500 opened lower by 8.67 points, or 0.24 per cent, at 3,653.78, while the Nasdaq Composite dropped 69.36 points, or 0.56 per cent, to 12,285.75 at the opening bell.
The latest private payroll figures showed that 307,000 jobs were added in November, way below analyst expectation of a rise of 410,000.
In October, 404,000 new jobs were added to private payrolls, so today’s figures are a worrying indication that the US’ economic recovery is stalling.
Pfizer bucked the downward trend enjoyed the benefits of this morning’s announcement, with share up 3.4 per cent as markets opened.