cityam--2020-06-03--Total acquires 51 per cent stake in Scotland's largest wind farm

French oil giant Total has taken a 51 per cent stake in SSE Renewables ’ £3bn Seagreen 1 wind farm , which was today greenlit for construction .
The 1 gigawatt wind farm , which will be located in the Firth of Forth , will be Scotland ’ s largest renewable energy project .
Read more : Largest solar park in the UK given planning approval Once completed , it will provide enough electricity to power 1m homes and will offset 1.6m tonnes of carbon dioxide emissions .
Total will make an upfront payment fo £70m for the stake , @ @ @ @ @ @ @ 70 per cent financing for the project .
The wind farm , which is estimated to be operational by 2023 at the latest , is expected to generate more than £1bn for the Scottish economy and will provide hundreds of jobs while under construction .
Kwasi Kwarteng , government minister for energy , said : “ Seagreen 1 will create hundreds of jobs while powering millions of homes and helping to cut carbon dioxide emissions , highlighting the key role offshore wind will play in our journey to a net-zero carbon emissions UK @ @ @ @ @ @ @ more in offshore wind than any other country , is home to the world ’ s largest wind farms , and already supplies 10 per cent of UK electricity demand – a figure we expect to double by the middle of the decade ” .
Before the Open : Get the jump on the markets with our early morning newsletter The decision to go ahead with the project comes less than 24 hours after business secretary Alok Sharma blocked Vattenfall ’ s application to build an offshore wind farm at Thanet in Kent @ @ @ @ @ @ @ UK has committed to supplying 40 gigawatts of power through offshore wind by 2030 , which would be greater than the country ’ s current total electricity demand .
SSE Renewables also confirmed it has completed and signed a contract with MHI Vestas Offshore Wind to provide the 10 megawatt turbines for the development .
Oil services firm Petrofac will design and install the subsea stations .
SSE Renewables ’ managing director Jim Smith said : “ Following the agreement with Total we are looking forward to delivering the Seagreen offshore wind farm @ @ @ @ @ @ @ , more resilient economy.
” Read more : Global renewable energy growth to fall for first time in two decades “ Total builds up a strong position in the world ’ s largest offshore wind market , as it becomes a majority stakeholder in the Seagreen 1 project , one of the largest offshore wind farms in the UK North Sea .
This move represents a major change of scale for Total ’ s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity , ” @ @ @ @ @ @ @ chief executive .

Total acquires 51 per cent stake in Scotland’s largest wind farm
French oil giant Total has taken a 51 per cent stake in SSE Renewables’ £3bn Seagreen 1 wind farm, which was today greenlit for construction.
The 1 gigawatt wind farm, which will be located in the Firth of Forth, will be Scotland’s largest renewable energy project.
Once completed, it will provide enough electricity to power 1m homes and will offset 1.6m tonnes of carbon dioxide emissions.
Total will make an upfront payment fo £70m for the stake, and said it had secured close to 70 per cent financing for the project.
The wind farm, which is estimated to be operational by 2023 at the latest, is expected to generate more than £1bn for the Scottish economy and will provide hundreds of jobs while under construction.
Kwasi Kwarteng, government minister for energy, said: “Seagreen 1 will create hundreds of jobs while powering millions of homes and helping to cut carbon dioxide emissions, highlighting the key role offshore wind will play in our journey to a net-zero carbon emissions UK economy.
“The UK has invested more in offshore wind than any other country, is home to the world’s largest wind farms, and already supplies 10 per cent of UK electricity demand – a figure we expect to double by the middle of the decade”.
Before the Open: Get the jump on the markets with our early morning newsletter
The decision to go ahead with the project comes less than 24 hours after business secretary Alok Sharma blocked Vattenfall’s application to build an offshore wind farm at Thanet in Kent, citing risk to shipping.
The UK has committed to supplying 40 gigawatts of power through offshore wind by 2030, which would be greater than the country’s current total electricity demand.
SSE Renewables also confirmed it has completed and signed a contract with MHI Vestas Offshore Wind to provide the 10 megawatt turbines for the development.
Oil services firm Petrofac will design and install the subsea stations.
SSE Renewables’ managing director Jim Smith said: “Following the agreement with Total we are looking forward to delivering the Seagreen offshore wind farm which will contribute towards building a cleaner, more resilient economy.”
“Total builds up a strong position in the world’s largest offshore wind market, as it becomes a majority stakeholder in the Seagreen 1 project, one of the largest offshore wind farms in the UK North Sea.
This move represents a major change of scale for Total’s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity,” said Patrick Pouyanne, Total’s chief executive.


cityam--2020-06-03--Coronavirus loans: George Osborne calls for future government 'debt forgiveness' programme

The government should implement a future “ debt forgiveness ” programme for companies borrowing through its coroanvirus loan schemes , according to former chancellor George Osborne .
Osborne said small and micro businesses “ who are engines of growth ” should have their debts written off in several years ’ time if they are still carrying debt burdens from the government ’ s emergency schemes .
Read more : UK coronavirus loans top £31bn but just half of CBILs approved Figures released yesterday showed that £31.3bn had been loaned out to UK businesses through its coronavirus business interruption loan scheme @ @ @ @ @ @ @ scheme .
About two-thirds of the total value of loans came through the bounce back loan scheme , which sees the government guarantee 100 per cent of loans of up to £50,000 .
The government is guaranteeing 80 per cent of each loan for CBILS loans , which has translated into more stringent loan checks and a slower loan approval process for this type of lending .
Osborne , speaking to Westminster ’ s Treasury Select Committee today , said writing off some debts would be “ for the overall good of the @ @ @ @ @ @ @ Even if in a couple years ’ time when the corporate sector owes a lot of money – particularly the micro businesses , small businesses who are engines of growth and can be completely held back by large credit burden – I think then the government should look at some sort of debt forgiveness , ” he said .
Before the Open newsletter : Start your day with the City View podcast and key market data “ At some point in the next couple of years you either write them off or , @ @ @ @ @ @ @ every six months or year the chancellor at the time announces that the lending terms are pushed out , the rates are kept very low and so on .
“ But it would be better as a big act of debt forgiveness.
” Osborne was joined at the select committee meeting by fellow former chancellors Lord Alastair Darling and Philip Hammond .
The trio discussed potential ways to handle the government ’ s bulging deficit and increased level of public debt that will result from the coronavirus crisis .
A leaked document last @ @ @ @ @ @ @ deficit to reach at least £300bn this year , which is 12-times more than predicted before the crisis hit .
Darling said the government should aim to carry over public debt over a long period of time , like after World War II , and warned against another round of public spending cuts like under David Cameron and Osborne .
“ What I ’ d be very concerned about is if we got ourself into a situation in the recovery stage where you started clamping down on things prematurely and you stop the @ @ @ @ @ @ @ into a recession , ” he said .
Osborne , meanwhile , indicated that austerity in some form had to happen eventually to cut future deficits .
Read more : UK services sector gauge picks up but economic gloom continues He said : “ If we ’ re in recovery…and we are running a 15 per cent budget deficit , which we might well be , then how comfortable are we taking that debt forward over the coming years ?
“ You don ’ t have to call it austerity , you don @ @ @ @ @ @ @ you ’ re doing it and try to get away with it as a government and pretend you ’ re not doing it , but the truth is you are going to have to make judgements about the levels of spending .
”

Coronavirus loans: George Osborne calls for future government ‘debt forgiveness’ programme
The government should implement a future “debt forgiveness” programme for companies borrowing through its coroanvirus loan schemes, according to former chancellor George Osborne.
Osborne said small and micro businesses “who are engines of growth” should have their debts written off in several years’ time if they are still carrying debt burdens from the government’s emergency schemes.
Figures released yesterday showed that £31.3bn had been loaned out to UK businesses through its coronavirus business interruption loan scheme (CBILS) and bounce bank loan scheme.
About two-thirds of the total value of loans came through the bounce back loan scheme, which sees the government guarantee 100 per cent of loans of up to £50,000.
The government is guaranteeing 80 per cent of each loan for CBILS loans, which has translated into more stringent loan checks and a slower loan approval process for this type of lending.
Osborne, speaking to Westminster’s Treasury Select Committee today, said writing off some debts would be “for the overall good of the country” in the long-term.
“Even if in a couple years’ time when the corporate sector owes a lot of money – particularly the micro businesses, small businesses who are engines of growth and can be completely held back by large credit burden – I think then the government should look at some sort of debt forgiveness,” he said.
Before the Open newsletter: Start your day with the City View podcast and key market data
“At some point in the next couple of years you either write them off or, what I expect will happen, is every six months or year the chancellor at the time announces that the lending terms are pushed out, the rates are kept very low and so on.
“But it would be better as a big act of debt forgiveness.”
Osborne was joined at the select committee meeting by fellow former chancellors Lord Alastair Darling and Philip Hammond.
The trio discussed potential ways to handle the government’s bulging deficit and increased level of public debt that will result from the coronavirus crisis.
A leaked document last month showed the Treasury was expecting the deficit to reach at least £300bn this year, which is 12-times more than predicted before the crisis hit.
Darling said the government should aim to carry over public debt over a long period of time, like after World War II, and warned against another round of public spending cuts like under David Cameron and Osborne.
“What I’d be very concerned about is if we got ourself into a situation in the recovery stage where you started clamping down on things prematurely and you stop the growth and you drive the country back into a recession,” he said.
Osborne, meanwhile, indicated that austerity in some form had to happen eventually to cut future deficits.
He said: “If we’re in recovery…and we are running a 15 per cent budget deficit, which we might well be, then how comfortable are we taking that debt forward over the coming years?
“You don’t have to call it austerity, you don’t have to tell the public you’re doing it and try to get away with it as a government and pretend you’re not doing it, but the truth is you are going to have to make judgements about the levels of spending.”


cityam--2020-06-03--How badly will coronavirus hit UK house prices in 2020?

UK house prices could fall by as much as 10 per cent this year due to the impact of coronavirus , experts predict .
UK house prices had started to recover from uncertainty caused by Brexit at the end of 2019 .
And the so-called Boris bounce from the Tories ’ election victory in December set the market up for a strong start to 2020 .
But then coronavirus came along , sending the UK into lockdown – meaning buyers couldn ’ t visit houses , a fairly crucial step when moving house .
The dramatic economic hit has also @ @ @ @ @ @ @ purchases right now .
While the impact of the coronavirus outbreak on UK house prices is not yet fully understood , analysts believe they will dip in the second and third quarters of 2020 .
The latest data from Nationwide confirmed that UK house prices were hit hard by the coronavirus lockdown .
UK house prices dropped at the fastest rate since the financial crisis in February 2009 , falling 1.7 per cent in May compared to growth of 0.9 per cent a month earlier , the bank said .
Rightmove research showed @ @ @ @ @ @ @ market in April dipped 0.2 per cent to £311,950 .
By contrast , in April last year UK house prices increased 2.1 per cent .
The property platform said at the time that there is not a “ functioning [ housing ] market ” due to the coronavirus lockdown and that new sales were “ almost impossible ” .
Meanwhile , UK inflation fell back to 1.1 per cent in February after climbing to an eight-month high of 1.5 per cent in January .
What will happen to house prices in 2020 ?
@ @ @ @ @ @ @ on UK house prices vary due to the uncertainty surrounding the lockdown exit plan and the wider economic impact .
Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic .
Knight Frank : Prices to sink seven per cent Knight Frank had previously predicted that average UK house prices will dip three per cent this year .
It also estimated property values in London would fall two per cent .
However , that analysis was based on the prediction that the UK @ @ @ @ @ @ @ of May .
Following the government ’ s announcement this week that the lockdown will be eased in stages through to at least July , the estate agent is now forecasting that UK house prices will fall seven per cent .
Prime London house prices will drop five per cent this year , Knight Frank said .
“ Since Sunday night it ’ s become clearer that some lockdown measures will remain in place into July and that social distancing rules governing day-to-day life , including property transactions , may remain in place @ @ @ @ @ @ @ Knight Frank added UK house prices and London house prices shouldn ’ t drop lower than this .
“ It is increasingly clear that prime London ’ s five-year decline doesn ’ t means it is immune from price falls , ” it said .
“ However , it would be wrong to assume a continuation of the decline we have seen over recent weeks .
The key question is will vendors accept discounts of more than five per cent ?
There is growing evidence… that many simply won ’ t .
“ @ @ @ @ @ @ @ that we have low new-build rates coming through in 2020 , low inventory and low interest rates , it becomes less likely we will see significant further falls from here.
” UK house prices are expected to fall by more than four per cent , according to 40 per cent of respondents to the latest Rics survey .
Meanwhile , 35 per cent of those surveyed said they expected UK house prices to drop by up to four per cent this year .
The Rics headline house price balance also fell into negative @ @ @ @ @ @ @ months , with a net balance of minus 21 per cent of respondents reporting a fall in house prices in April .
“ History tells us that house prices tend to fall when the economy shrinks as a result of falling output , ” says Richard Donnell , research director at property platform Zoopla .
“ [ This ] has a knock on impact for unemployment or higher borrowing costs – all things that can result in more ‘ forced sellers ’ .
” “ Thus the scale of the impact on house @ @ @ @ @ @ @ economic impact from Covid-19.
” Savills : House price fall of up to 10 per cent Estate agent Savills estimated that average UK house prices will fall between five per cent and 10 per cent in the short-term while the low transaction market caused by the coronavirus lockdown continues .
EY : House prices could fall five per cent Howard Archer , chief economist at EY Item Club , forecast that UK house prices could drop by up to five per cent over the next few months .
“ Relief for the housing @ @ @ @ @ @ @ restrictions on 13 May , ” he said .
“ While the easing of restrictions should allow housing market activity to progressively pick up , it looks unlikely to return to the levels seen at the start of 2020 for some time to come .
“ Activity is likely to be limited , in the near term at least , by the impact of Covid-19 on the economy , and the fact that consumer fundamentals appear to have taken a downturn.
” Chesterton ’ s : House price drop of two per cent @ @ @ @ @ @ @ estimated that house prices in the capital will fall two per cent in 2020 due to coronavirus .
Lloyds : House prices to fall five per cent Lloyds has predicted that it is likely that house prices will fall five per cent this year , before beginning to recover in 2021 .
In the most positive scenario , the bank modelled that house prices could dip 2.2 per cent this year before bouncing back next year .
However , in its worst case scenario house prices would plummet ten per cent , with @ @ @ @ @ @ @ by 2022 .
Capital Economics : House prices will decline by around five per cent Capital Economics said it expects house price declines of about 5 per cent on average , rather than deep crashes .
In a research note it said : “ Unlike in previous downturns , residential property has not been the root cause this time .
“ Even so , house prices will not escape this recession unscathed .
If policy support proves effective , if lockdowns hamper property sales , and if demand rebounds later this year , @ @ @ @ @ @ @ will UK house prices bounce back from coronavirus ?
Despite the gloomy outlook for house prices this year , most analysts believe the housing market could make a strong recovery by 2021 .
CBRE said that pent up demand in the period after the coronavirus crisis is likely to cause a “ spike in activity ” in the housing market .
Knight Frank : London house prices to jump six per cent in 2021 Knight Frank forecast that London house prices will jump six per cent in 2021 .
Chestertons said it expected @ @ @ @ @ @ @ per cent in central London next year .
Despite forecasting a steep decline in UK house prices this year , Savills was more optimistic about the years ahead .
The estate agent ’ s analysts say mid-term price growth will be an average of 15 per cent over the next five years , with prime central London leading the recovery .
EY : House price recovery of two per cent in 2021 However , EY Item Club ’ s Archer was more cautious , saying UK house prices could grow by two per @ @ @ @ @ @ @ ITEM Club expects house prices to stabilise towards the end of the year and then start recovering gradually as the UK ’ s economic recovery gains traction , the labour market starts to recover and consumer confidence improves , ” he said .
“ Very low borrowing costs should also help matters with the Bank of England unlikely to lift interest rates from 0.1 per cent until well into 2021 .
Even so , we expect house price gains to be no more than two to three per cent in 2021.
” In @ @ @ @ @ @ @ growth will be two per cent in 2021 , rising to 2.5 per cent in 2022 .
This would be a jump of 0.7 per cent between 2020 and 2022 .
The bank modelled several different scenarios , depending on how badly the wider economy is impacted by the pandemic .
The most optimistic outlook would see house prices rebound to grow by 6.8 per cent in both 2021 and 2022 .
Lloyds ’ severe downside modelling showed that house prices could plunge 10.9 per cent in 2021 and a further 12.9 per @ @ @ @ @ @ @ predicted that the economic measures put in place by the government during the coronavirus pandemic could help UK house prices rebound sharply after the crisis has passed .
The bank said the medium-term outlook is “ highly uncertain ” .
But a sharp recovery is possible when the coronavirus lockdown is lifted .
“ Much will depend on the performance of the wider economy , ” Robert Gardner , chief economist at Nationwide , said .
However he said measures such as £330bn in business support and the government ’ s job retention @ @ @ @ @ @ @ UK house prices to bounce back .
“ The raft of policies.. should set the stage for a rebound once the shock passes , ” he said .
The latest figures showed that UK house prices grew 3.7 per cent on an annual basis in April – the strongest rate of growth in 26 months .
This shows that UK house prices were recovering from Brexit uncertainty .
And month to month UK house prices grew 0.7 per cent , as the average UK home jumped in value from £219,583 in March to @ @ @ @ @ @ @ residential market survey for April suggested that sales levels will rebound to their previous levels within nine months .
Sign up to City A.M. ’ s Midday Update newsletter , delivered to your inbox every lunchtime However , the research found that UK house prices could be slower to recover .
Respondents to the Rics survey said prices will take 11 months to reach levels recorded before the coronavirus outbreak .

How badly will coronavirus hit UK house prices in 2020?
Property experts hope a stamp duty holiday and relaxed lockdown restrictions will protect UK house prices from a sharp coronavirus fall this year.
At the height of lockdown, experts predicted that UK house prices could fall by as much as 10 per cent this year due to the impact of coronavirus.
However, chancellor Rishi Sunak attempted to breathe new life into the property market by raising the stamp duty threshold from £125,000 to £500,000 until the end of March 2021.
According to the latest research by Rightmove, enquiries to agents for homes priced between £400,000 to £500,000 have surged 49 per cent since the stamp duty holiday announcement.
Only in April Rightmove had warned there was “not a functioning housing market” after buyers could not visit houses during lockdown.
And the dramatic economic hit has also made people more wary of making big purchases.
The coronavirus blow came just as UK house prices began to recover from uncertainty caused by Brexit at the end of 2019.
And property prices posted an annual fall for the first time since 2012 in June. They slipped 0.1 per cent year on year following a 1.8 per cent climb in May.
Nationwide data also showed values dropped 1.4 per cent month to month, with an average price of £216,406. Data published by Halifax showed that UK house prices fell for the fourth month in a row in June.
What will happen to UK house prices in 2020?
So can the stamp duty holiday protect UK house prices from coronavirus?
Here’s what economists predict will happen in 2020:
RICS: Fewer surveyors expect drop
A June survey by the Royal Institution of Chartered Surveyors (RICS) found a net balance of minus 12 per cent of respondents expected prices to fall in the coming three months. That compared to minus 43 per cent when respondents were asked in May.
The survey also found that buyers started to return to the market in June.
A net balance of 61 per cent of RICS members reported a rise in new buyer enquiries in June following a result of minus 94 per cent the previous month.
Halifax: Further falls ‘likely’
UK bank Halifax welcomed the government’s stamp duty cut.
However, most recently it announced that prices fell at their sharpest quarterly rate since 2009. And the property market’s value sank for four consecutive months for the first time since 2010.
Halifax house prices data shows the UK property market has been in decline since March (Credit: Halifax)
The bank expects further UK house price falls in the second half of the year.
“It’s hard to look past the downward risks to prices over the medium-term,” IHS Markit economics director Paul Smith said.
“On balance further price falls seem most likely in the second half of the year.”
EY: UK house prices face -3% fall
EY Item Club predicts UK house prices could fall around three per cent by the end of the year. That’s an improvement to its previous forecast of a five per cent drop.
Chief economist Howard Archer said Sunak’s decision to increase the stamp duty threshold would provide some “near-term support to housing market activity”.
“However, the EY ITEM Club suspects the upside for the housing market will be limited due to challenging fundamentals for consumers,” he added.
UK house prices’ fall could become more pronounced in the final months of the year, Archer predicts. That is when the UK could approach a cliff-edge end to its Brexit negotiations.
“There is likely to be a rise in unemployment,” Archer added. “[This] will not only adversely affect the fundamentals for house buyers, but also lead to caution when people are thinking about buying a house.”
Savills: London could fall -2%
Estate agent Savills predicts prime central London house prices will fall two per cent this year before returning to growth from 2021.
“It is clear that many overseas buyers are yet to return to the market,” Lucian Cook, Savills head of residential research, said.
“The pandemic has chipped away at the wealth of those who buy in these rarified markets and, given the impact on the global economy, weakened the prospects of global wealth generation,” he added.
“So, while we expect London to continue to attract safe haven investment as the market reopens fully, the rate of price growth will be slower than in previous upturns.”
Santander: House prices to fall -6%
Rishi Sunak sought to boost the property market by raising stamp duty to £500,000 in his mini-Budget over summer
Santander’s base case scenario predicts a six per cent drop in UK house prices this year.
The base case scenario would be a “short sharp recession” in the first half of the year. Then the bank predicts a slower recovery over the rest of the year and into 2021.
Brexit negotiations could lead to further uncertainty and dampening growth, the bank warned.
An upside scenario, which would involve a more comprehensive Brexit trade deal being negotiated, an extension to the negotiation process, or a Covid-19 vaccine, house prices would drop by 0.1 per cent.
Knight Frank: Prices to slump -7%
Knight Frank predicts UK house prices will fall seven per cent this year. They will then recover to grow three per cent next year.
It forecast prime central London property prices to drop by five per cent. But they could bounce back in 2021 with growth of eight per cent.
House prices in prime outer London locations are also expected to drop five per cent in 2020. A more modest two per cent growth rate is forecast for 2021, the estate agent said.
Barclays: House prices to rise 0.06%
Barclays’ baseline scenario is house price growth of 0.6 per cent this year, recovering to two per cent growth in 2020.
The bank’s expected worst point is a house price drop of 1.5 per cent, it said in its half-year financial results.


cityam--2020-06-03--Hipgnosis shares jump as lockdown streaming boosts music catalogue

Shares in Hipgnosis rose sharply today after the music royalties investment firm said the continued growth of streaming had pushed up the value of its song portfolio .
The London-listed company reported better-than-expected revenue of £64.7m in the year to the end of March , while net asset value grew 17.7 per cent .
Shares in Hipgnosis jumped 7.5 per cent following the trading update .
The firm , which generates revenue through licensing deals for its catalogue of hit songs , spent £560m on new songwriter catalogues over the year , taking its total portfolio to 54 catalogues .
@ @ @ @ @ @ @ the majority of the publishing catalogue of prolific songwriter and producer Mark Ronson .
Other recent deals include the complete catalogue of Bon Jovi lead guitarist and songwriter Richie Sambora .
Hipgnosis said its portfolio had been independently valued at £757m , marking an 11.4 per cent increase on its aggregate purchase price of £679m .
The songs fund said it had been boosted by a rise in music streaming during the Covid-19 crisis .
In particular the firm benefitted from increased demand for older hits , as new releases have been put @ @ @ @ @ @ @ , feel-good tracks .
Hipgnosis said it had not suffered any downturn in demand for song placements , despite a collapse in the advertising market and the halting of film releases .
“ We are very excited about these results and we are particularly proud that everything we have promised our investors over the last two years has either come to fruition or been exceeded , ” said Hipgnosis founder Merck Mercuriadis .
“ We have bought amongst the finest songs of all time against a backdrop of dramatic streaming growth and we @ @ @ @ @ @ @ these great songs and bringing efficiencies to collection.
” Hipgnosis said it was in active discussions on a pipeline of new catalogue acquisitions worth more than £1bn .

Hipgnosis shares jump as lockdown streaming boosts music catalogue
Shares in Hipgnosis rose sharply today after the music royalties investment firm said the continued growth of streaming had pushed up the value of its song portfolio.
The London-listed company reported better-than-expected revenue of £64.7m in the year to the end of March, while net asset value grew 17.7 per cent.
Shares in Hipgnosis jumped 7.5 per cent following the trading update.
The firm, which generates revenue through licensing deals for its catalogue of hit songs, spent £560m on new songwriter catalogues over the year, taking its total portfolio to 54 catalogues.
In April Hipgnosis said it had acquired the majority of the publishing catalogue of prolific songwriter and producer Mark Ronson. Other recent deals include the complete catalogue of Bon Jovi lead guitarist and songwriter Richie Sambora.
Hipgnosis said its portfolio had been independently valued at £757m, marking an 11.4 per cent increase on its aggregate purchase price of £679m.
The songs fund said it had been boosted by a rise in music streaming during the Covid-19 crisis. In particular the firm benefitted from increased demand for older hits, as new releases have been put on hold and listeners turned into nostalgic, feel-good tracks.
Hipgnosis said it had not suffered any downturn in demand for song placements, despite a collapse in the advertising market and the halting of film releases.
“We are very excited about these results and we are particularly proud that everything we have promised our investors over the last two years has either come to fruition or been exceeded,” said Hipgnosis founder Merck Mercuriadis.
“We have bought amongst the finest songs of all time against a backdrop of dramatic streaming growth and we are adding significant value by actively managing these great songs and bringing efficiencies to collection.”
Hipgnosis said it was in active discussions on a pipeline of new catalogue acquisitions worth more than £1bn.


cityam--2020-06-03--FCA tells insurers to assess products in light of coronavirus pandemic

The Financial Conduct Authority ( FCA ) today provided insurers with guidance on what they need to do to assess the value of their products in the light of the coronavirus pandemic .
The FCA said firms should review products where benefits can not be provided – such as boiler services due to lockdown measures – or where there has been a “ fundamental change in risk ” and products are now providing little or no use to customers – such as public liability insurance for closed businesses .
Read more : FCA gears up for business interruption insurance court @ @ @ @ @ @ @ their products and decided on any actions within six months .
Examples of changes given by the FCA include changing how benefits are delivered , refunding some premiums or suspending monthly payments for a certain period of time .
Sheldon Mills , interim executive director of strategy and competition at the FCA , said : “ Customers should expect value from the insurance products that they buy , but the exceptional circumstances of coronavirus may have materially reduced the value they are getting .
“ Today ’ s guidance is designed to protect @ @ @ @ @ @ @ the products they offer to ensure they provide appropriate value and take action where there has been a fundamental change in risk or where certain benefits can no longer be provided .
Read more : Insurance brokers slammed for conflicts of interests amid coronavirus business interruption claim disputes “ Firms may choose to go further than this guidance , and we recognise that some firms have already taken steps to support customers , which we welcome.
” Simon Morris a financial services partner at law firm CMS said : “ This guidance shows @ @ @ @ @ @ @ in action and emphasises the FCA ’ s evolving role as a product value policeman .
“ While termed ‘ guidance ’ , this document goes a great deal further than a helpful steer .
Read alongside the FCA ’ s other current material , it is clear that firms which fail to react positively will be subject to supervisory scrutiny , with a particular focus on the senior managers with responsibility for product design and distribution.
” Mark Turner , managing director at financial consultancy Duff & Phelps , said : “ @ @ @ @ @ @ @ inappropriate cover themselves .
The FCA gives the example of comprehensive car insurance for a car that can not currently be used .
But also , there may be cases where customers are underinsured , such as those with homes that might be vacant for long periods of time .
“ For the insurance sector , consumers face potential harm from payment terms on policies , as well as the long-term risk of becoming uninsured and suffering losses as a result of not being able to keep up with their policy premiums .
@ @ @ @ @ @ @ a customer ’ s risk of financial distress in a dynamic way – customers that were not even on the radar of vulnerability two months ago may now be exposed to serious financial difficulty .
”

FCA tells insurers to assess products in light of coronavirus pandemic
The Financial Conduct Authority (FCA) today provided insurers with guidance on what they need to do to assess the value of their products in the light of the coronavirus pandemic.
The FCA said firms should review products where benefits cannot be provided – such as boiler services due to lockdown measures – or where there has been a “fundamental change in risk” and products are now providing little or no use to customers – such as public liability insurance for closed businesses.
The regulator said firms should review their products and decided on any actions within six months.
Examples of changes given by the FCA include changing how benefits are delivered, refunding some premiums or suspending monthly payments for a certain period of time.
Sheldon Mills, interim executive director of strategy and competition at the FCA, said: “Customers should expect value from the insurance products that they buy, but the exceptional circumstances of coronavirus may have materially reduced the value they are getting.
“Today’s guidance is designed to protect consumers by directing insurance firms to review the products they offer to ensure they provide appropriate value and take action where there has been a fundamental change in risk or where certain benefits can no longer be provided.
“Firms may choose to go further than this guidance, and we recognise that some firms have already taken steps to support customers, which we welcome.”
Simon Morris a financial services partner at law firm CMS said: “This guidance shows the FCA’s product governance policy in action and emphasises the FCA’s evolving role as a product value policeman.
“While termed ‘guidance’, this document goes a great deal further than a helpful steer. Read alongside the FCA’s other current material, it is clear that firms which fail to react positively will be subject to supervisory scrutiny, with a particular focus on the senior managers with responsibility for product design and distribution.”
Mark Turner, managing director at financial consultancy Duff & Phelps, said: “Firms cannot rely on customers identifying inappropriate cover themselves. The FCA gives the example of comprehensive car insurance for a car that cannot currently be used. But also, there may be cases where customers are underinsured, such as those with homes that might be vacant for long periods of time.
“For the insurance sector, consumers face potential harm from payment terms on policies, as well as the long-term risk of becoming uninsured and suffering losses as a result of not being able to keep up with their policy premiums. It’s critical that firms assess a customer’s risk of financial distress in a dynamic way – customers that were not even on the radar of vulnerability two months ago may now be exposed to serious financial difficulty.”


cityam--2020-06-03--Business groups hit back at 14-day quarantine plan

Home secretary Priti Patel earlier this afternoon laid out the government ’ s plans to quarantine all international arrivals in England for 14 days .
However , the confirmation of the much-discussed plans , which will come into effect from 8 June , met with dismay from business groups from across the economy .
Read more : Priti Patel lays out details of 14-day quarantine plan Catherine McGuiness , policy chair at the City of London Corporation , said the proposals would have “ a major impact on a range of sectors , including the City ’ s financial and @ @ @ @ @ @ @ cultural institutions ” .
She added that rules which seem “ arbitrary rather than consistent undermine confidence and will hold us back ” , and that the government should adopt an “ internationally coordinated approach ” to get passengers flying as soon as possible .
She pointed to “ air bridges ” to countries with a lower rate of infection as a possibility .
So too did Richard Burge , the chief executive of the London Chamber of Commerce , who said the measures send out “ the message that the UK is @ @ @ @ @ @ @ when we are beginning to restart our economy ” .
In a letter sent to members of the government including Patel earlier today , Burge said : “ This blanket aviation proposal doesn ’ t appear to be risk-based .
“ If it was , it would recognise that arrivals from some countries with much lower transmission levels than the UK and low incidence of the disease would not increase our risk , provided they adopted our social distancing protocols on arrival ” .
Before the Open : Get the jump on the @ @ @ @ @ @ @ Chambers of Commerce chief executive Adam Marshall echoed Burge ’ s words , saying that “ the safe re-establishment of connections to key markets and trade partners must now be a top priority for the government .
“ Air bridges must be put in place swiftly for the sake of the many industries and livelihoods that depend on the UK ’ s connectivity across the world .
Any review process should consult widely with affected business communities all across the UK ” , he added .
Airlines have been among the most consistent @ @ @ @ @ @ @ bosses of prominent carriers such as Easyjet , Tui , and Virgin having already written to Boris Johnson laying out their concerns over the scheme .
In an open letter co-ordinated by Airlines UK , they wrote : “ An open-ended quarantine , with no set end date , will make an already critical situation for UK aviation , and all the businesses we support , even worse ” .
Ryanair chief executive Michael O ’ Leary , who has been one of the quarantine plans ’ fiercest critics , said it was @ @ @ @ @ @ @ Speaking in parliament today , MPs from both sides of the chamber have also voiced their concerns over the plan .
Former prime minister Theresa May , who called for the UK to take a lead in establishing a global aviation health screening standard said it would “ close Britain off from the rest of the world ” .
She added that without global air travel , “ there is no global Britain ” .
Former cabinet minister Theresa Villiers also called on Patel to scrap the “ blanket quarantine ” and bring @ @ @ @ @ @ @ jobs .

Business groups hit back at 14-day quarantine plan
Home secretary Priti Patel earlier this afternoon laid out the government’s plans to quarantine all international arrivals in England for 14 days.
However, the confirmation of the much-discussed plans, which will come into effect from 8 June, met with dismay from business groups from across the economy.
Catherine McGuiness, policy chair at the City of London Corporation, said the proposals would have “a major impact on a range of sectors, including the City’s financial and professional services firms as well as our cultural institutions”.
She added that rules which seem “arbitrary rather than consistent undermine confidence and will hold us back”, and that the government should adopt an “internationally coordinated approach” to get passengers flying as soon as possible.
She pointed to “air bridges” to countries with a lower rate of infection as a possibility.
So too did Richard Burge, the chief executive of the London Chamber of Commerce, who said the measures send out “the message that the UK is closed for business, at a time when we are beginning to restart our economy”.
In a letter sent to members of the government including Patel earlier today, Burge said: “This blanket aviation proposal doesn’t appear to be risk-based.
“If it was, it would recognise that arrivals from some countries with much lower transmission levels than the UK and low incidence of the disease would not increase our risk, provided they adopted our social distancing protocols on arrival”.
Before the Open: Get the jump on the markets with our early morning newsletter
British Chambers of Commerce chief executive Adam Marshall echoed Burge’s words, saying that “the safe re-establishment of connections to key markets and trade partners must now be a top priority for the government.
“Air bridges must be put in place swiftly for the sake of the many industries and livelihoods that depend on the UK’s connectivity across the world. Any review process should consult widely with affected business communities all across the UK”, he added.
Airlines have been among the most consistent opponents of the quarantine plan, with bosses of prominent carriers such as Easyjet, Tui, and Virgin having already written to Boris Johnson laying out their concerns over the scheme.
In an open letter co-ordinated by Airlines UK, they wrote: “An open-ended quarantine, with no set end date, will make an already critical situation for UK aviation, and all the businesses we support, even worse”.
Ryanair chief executive Michael O’Leary, who has been one of the quarantine plans’ fiercest critics, said it was “ineffective and completely useless”.
Speaking in parliament today, MPs from both sides of the chamber have also voiced their concerns over the plan.
Former prime minister Theresa May, who called for the UK to take a lead in establishing a global aviation health screening standard said it would “close Britain off from the rest of the world”.
She added that without global air travel, “there is no global Britain”.
Former cabinet minister Theresa Villiers also called on Patel to scrap the “blanket quarantine” and bring in “air bridges” to save jobs.


cityam--2020-06-04--US jobless claims: 1.8m new filings take total above 42m

US jobless claims rose by another 1.9m last week as the economy battled coronavirus , taking the total number of @ @ @ @ @ to above 42m .
It was the first sub-2m number since Covid-19 began to ravage @ @ @ @ @ , with some analysts predicting the worst is over for growth .
The Department of @ @ @ @ @ advance seasonally adjusted insured unemployment rate was 14.8 per cent for the week ending May @ @ @ @ @ 0.5 percentage point from the previous week ’ s revised rate .
”

US new jobless claims: 1.9m filings take total above 42m
Another 1.9m Americans made new jobless claims last week as the economy battled coronavirus, taking the total number of claims since the pandemic began to above 42m.
It was the first sub-2m number since Covid-19 began to ravage the US economy, however, with some analysts predicting the worst is over for growth. A week earlier, 2.1m Americans made new jobless claims.
The Department of Labor said the insured employment rate – the percentage of working age people receiving jobless benefits – was 14.8 per cent for the week ending May 23.
Today’s new jobless claims figures came ahead of a nervously awaited official unemployment reading for May tomorrow. Unemployment hit 14.7 per cent in April, by far the worst number seen since the Great Depression.
“This week’s initial jobless claims have continued their downward trend, but all eyes will be on tomorrow’s unemployment data for May,” said Richard Flynn, UK managing director at Charles Schwab.
He said they will “likely show another round of staggering job losses and a sharp rise in unemployment since April’s reading”.
New jobless claims have been steadily falling since late March. In the week to 28 March, claims peaked at 6.9m. Graphs have had to be redrawn to account for the unprecedented surge in unemployment.
In the depths of the financial crisis, 800,000 jobs were lost in the worst month. The scale of unemployment suggests the US economy could face longer-term scarring after the pandemic passes.
The US Federal Reserve has slashed interest rates to a record low of between zero and 0.25 per cent. It has ramped up its quantitative easing bond-buying and lent billions of dollars to main street.
The Trump administration and Congress have also legislated to pump trillions of dollars into the economy. The Democrats and Republicans have struggled to agree on the latest round of stimulus efforts, however.


cityam--2020-06-04--Boris Johnson and Rishi Sunak could have to self-isolate if minister tests positive for Covid-19

Rishi Sunak and Boris Johnson could be told to self-isolate for 14 days after the pair had a meeting with Alok Sharma before he fell ill , Downing Street has confirmed .
A spokesperson for Johnson said Sharma had a meeting with the Prime Minister and chancellor for 45 minutes on the economy , but that they all kept a two-metre distance at all times .
Sharma has been tested for Covid-19 and is currently self-isolating , after he was seen to be visibly unwell in the House of Commons yesterday .
Downing Street said that Sharma would go through @ @ @ @ @ @ @ he tests positive , which would see anyone who had been in close contact with the business secretary forced to self-isolate for 14 days .
Close contact is considered to be made if someone has been within two metres of someone else without protective equipment for at least 15 minutes .
Downing Street said the meeting between Sharma , Sunak and Johnson was socially distanced , but that the Prime Minister and chancellor would have to follow the advice of contact tracers if they told them to self-isolate .
“ We would follow @ @ @ @ @ @ @ the medical experts , ” a spokesperson said .
Sharma ’ s illness immediately caused concern from some MPs who were already unhappy about the government ’ s scrapping of virtual parliament this week .
Kilometre-long queues were seen this week when MPs were forced to vote in person while socially distancing .
A group of Tory backbenchers , led by Karen Bradley , complained the new plans put MPs with pre-existing conditions at risk .
Speaking to the BBC today , Northern Ireland secretary Brandon Lewis said Sharma could just have “ @ @ @ @ @ @ @ : Boris Johnson says ‘ shielded ’ MPs will be able to vote by proxy in parliament “ I don ’ t want to be premature because Alok , who I wish well and hope he recovers quickly , may well have had severe hayfever , we ’ re not sure yet , ” Lewis said .
“ He has had a test , he is self-isolating as you say , to take the correct precaution .
”

Boris Johnson and Rishi Sunak could have to self-isolate if minister tests positive for Covid-19
Rishi Sunak and Alok Sharma (pictured) had a face-to-face meeting with Boris Johnson, before Sharma fell ill yesterday
Rishi Sunak and Boris Johnson could be told to self-isolate for 14 days after the pair had a meeting with Alok Sharma before he fell ill, Downing Street has confirmed.
A spokesperson for Johnson said Sharma had a meeting with the Prime Minister and chancellor for 45 minutes on the economy, but that they all kept a two-metre distance at all times.
Sharma has been tested for Covid-19 and is currently self-isolating, after he was seen to be visibly unwell in the House of Commons yesterday.
Downing Street said that Sharma would go through the NHS track and trace programme if he tests positive, which would see anyone who had been in close contact with the business secretary forced to self-isolate for 14 days.
Close contact is considered to be made if someone has been within two metres of someone else without protective equipment for at least 15 minutes.
Downing Street said the meeting between Sharma, Sunak and Johnson was socially distanced, but that the Prime Minister and chancellor would have to follow the advice of contact tracers if they told them to self-isolate.
“We would follow the advice which is being given by the medical experts,” a spokesperson said.
Sharma’s illness immediately caused concern from some MPs who were already unhappy about the government’s scrapping of virtual parliament this week.
Kilometre-long queues were seen this week when MPs were forced to vote in person while socially distancing.
A group of Tory backbenchers, led by Karen Bradley, complained the new plans put MPs with pre-existing conditions at risk.
Speaking to the BBC today, Northern Ireland secretary Brandon Lewis said Sharma could just have “severe hay fever”.
“I don’t want to be premature because Alok, who I wish well and hope he recovers quickly, may well have had severe hayfever, we’re not sure yet,” Lewis said.
“He has had a test, he is self-isolating as you say, to take the correct precaution.”


cityam--2020-06-04--Virgin Atlantic to restart passenger flights in July

Embattled airline Virgin Atlantic has today announced that it will restart some passenger flights from July .
The carrier said that from 20 and 21 July , it would resume services from London Heathrow to Orlando , Hong Kong , Shanghai , New York JFK and Los Angeles .
Read more : Virgin Atlantic launches desperate plea for government support as buyout firms circle It added that more routes would be announced in the next two weeks for the month of August .
In a statement , Virgin said that it would increase passenger flying throughout the second half of @ @ @ @ @ @ @ recovery through 2021 in line with customer demand .
In April the carrier suspended all of its services as the coronavirus crisis hammered demand , forcing airlines around the world to ground planes .
Last month it had been reported that Virgin would not be able to begin flying again until August if the UK government went ahead with its quarantine plan , which was confirmed yesterday .
Before the Open : Get the jump on the markets with our early morning newsletter Virgin ’ s chief commercial officer Juha Jarvinen said that @ @ @ @ @ @ @ conditions extremely closely , in particular the travel restrictions many countries have in place including the 14 day quarantine policy for travellers entering the UK ” .
The airline has been one of the hardest hit by the coronavirus crisis , with border closures severely impacting the lucrative transatlantic market in which it specialises .
Virgin has been in long-running talks with the government over potential support , and last month announced it would cut a third of its workforce and quit its Gatwick base due to the virus ’ impact .
Read @ @ @ @ @ @ @ 75 per cent of routes in August Over the past few days several members of the aviation sector have announced comeback plans , with London City Airport set to reopen by the end of June .
Low-budget carrier Easyjet announced it would operate 50 per cent of its routes from July , a figure that will rise to 75 per cent in August .

Virgin Atlantic to restart passenger flights in July
Embattled airline Virgin Atlantic has today announced that it will restart some passenger flights from July.
The carrier said that from 20 and 21 July, it would resume services from London Heathrow to Orlando, Hong Kong, Shanghai, New York JFK and Los Angeles.
It added that more routes would be announced in the next two weeks for the month of August.
In a statement, Virgin said that it would increase passenger flying throughout the second half of 2020, with a further, gradual recovery through 2021 in line with customer demand.
In April the carrier suspended all of its services as the coronavirus crisis hammered demand, forcing airlines around the world to ground planes.
Last month it had been reported that Virgin would not be able to begin flying again until August if the UK government went ahead with its quarantine plan, which was confirmed yesterday.
Before the Open: Get the jump on the markets with our early morning newsletter
Virgin’s chief commercial officer Juha Jarvinen said that the airline would be “monitoring external conditions extremely closely, in particular the travel restrictions many countries have in place including the 14 day quarantine policy for travellers entering the UK”.
The airline has been one of the hardest hit by the coronavirus crisis, with border closures severely impacting the lucrative transatlantic market in which it specialises.
Virgin has been in long-running talks with the government over potential support, and last month announced it would cut a third of its workforce and quit its Gatwick base due to the virus’ impact.
Over the past few days several members of the aviation sector have announced comeback plans, with London City Airport set to reopen by the end of June.
Low-budget carrier Easyjet announced it would operate 50 per cent of its routes from July, a figure that will rise to 75 per cent in August.
More to follow.


cityam--2020-06-04--Softbank launches $100m minorities startup fund in the wake of George Floyd protests

Softbank has launched a new startup fund to invest in companies led by “ people of colour ” in the wake of protests over the death of George Floyd .
The Japanese technology giant announced the $ 100m ( £80m ) Opportunity Growth Fund as other executives of firms speak out over racial inequality .
Chief executive Masayoshi Son wrote on Twitter “ Racism is a lamentable thing ” , ending his post with “ # BlackLivesMatter ” .
In a letter to employees , Softbank ’ s chief operating officer Marcelo Claure said the fund , which he will @ @ @ @ @ @ @ “ from communities that face systemic disadvantages in building and scaling their businesses.
” Before the Open : Get the jump on the markets with our early morning newsletter Softbank also runs the $ 100bn Vision Fund which invests in startups across the world .
It has been mired with issues as it warned of further losses on its investments in part because of Son ’ s bet on the struggling WeWork .
The announcement of the fund comes after the death of the unarmed black man , George Floyd , by police @ @ @ @ @ @ @ across the US and has led to some business leaders come out in support of the Black Lives Matters movement .
Read more : Alibaba ’ s Jack Ma steps down from Softbank board Twitter ’ s Jack Dorsey tweeted that he was making a $ 3m donation to former NFL player Colin Kaepernick ’ s Know Your Rights Camp to “ advance the liberation and wellbeing ” of minority communities .
Earlier this week the Bank of America said it would donate $ 1bn over four years to community programmes and small @ @ @ @ @ @ @ Get the news as it happens by following City A.M. on Twitter .

Softbank launches $100m minorities startup fund in the wake of George Floyd protests
A number of executives have left Softbank’s $100bn Vision Fund.
Softbank has launched a new startup fund to invest in companies led by “people of colour” in the wake of protests over the death of George Floyd.
The Japanese technology giant announced the $100m (£80m) Opportunity Growth Fund as other executives of firms speak out over racial inequality.
Chief executive Masayoshi Son wrote on Twitter “Racism is a lamentable thing”, ending his post with “#BlackLivesMatter”.
In a letter to employees, Softbank’s chief operating officer Marcelo Claure said the fund, which he will lead, aims to invest in entrepreneurs “from communities that face systemic disadvantages in building and scaling their businesses.”
Before the Open: Get the jump on the markets with our early morning newsletter
Softbank also runs the $100bn Vision Fund which invests in startups across the world. It has been mired with issues as it warned of further losses on its investments in part because of Son’s bet on the struggling WeWork.
The announcement of the fund comes after the death of the unarmed black man, George Floyd, by police officers in Minneapolis. It sparked protests across the US and has led to some business leaders come out in support of the Black Lives Matters movement.
Twitter’s Jack Dorsey tweeted that he was making a $3m donation to former NFL player Colin Kaepernick’s Know Your Rights Camp to “advance the liberation and wellbeing” of minority communities.
Earlier this week the Bank of America said it would donate $1bn over four years to community programmes and small businesses to help address racial inequality.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-06-04--Night Tube to be suspended until March 2021

Transport for London are expected to announce that the Night Tube will be suspended until March 2021 as soon as today .
Tube union RMT have been told the overnight service will not run until the new year .
Read more : TfL bailout conditions published as rescue row rolls on Night time services were suspended with immediate effect on 18 March in an attempt to limit the spread of coronavirus .
Commenting on the expected announcement , Conservative mayoral candidate Shaun Bailey said it would “ hammer key workers and hinder the recovery of the night time economy ” @ @ @ @ @ @ @ said the decision was a reminder that TfL would continue to require government support as it seeks to rebuild after the crisis .
The network has already received a £1.6bn bailout from the state to help patch the gaping hole in its finances caused by the epidemic .
Fare revenues , on which TfL relies for the majority of its revenue , have dropped 90 per cent since the government imposed lockdown measures in March .
Cash said : “ The confirmation that there will be no night tube until March next year @ @ @ @ @ @ @ situation is across London ’ s transport services as we slowly emerge from the Covid-19 lockdown .
Before the Open : Get the jump on the markets with our early morning newsletter “ RMT has made it clear that we will take whatever action is required to protect the jobs and conditions of the staff who have kept essential workers moving throughout this crisis .
There must be no return to cuts and austerity.
” Bailey added : “ Key workers such as nurses need the Night Tube to get to their shifts @ @ @ @ @ @ @ journeys will be longer and more arduous – hardly fair .
“ The night time economy has been decimated by the coronavirus and it will need the Mayor ’ s assistance to recover as lockdown is eased .
“ Suspending it will actively harm the recovery of one of our most important hospitality sectors ” .
As a condition of the bailout , TfL announced today that free travel for freedom pass holders would be suspended during morning peak hours from 15 June .
Read more : Sadiq Khan : London transport fares @ @ @ @ @ @ @ move , which is temporary , will these cards are automatically set to be not valid during the morning peak period .
They will remain valid at all other times .

Night Tube to be suspended until March 2021
Transport for London have confirmed there are no plans to bring back the Night Tube in the immediate future, with transport unions saying it will not be before March 2021.
Tube union RMT have been told the overnight service will not run until the new year.
A TfL spokesperson said: “With the current lockdown regulations in place normal demand for the Night Tube doesn’t exist.
“This is expected to build back up over time, but before reintroducing the Night Tube we will need to be confident that we can continue to provide extensive services for the higher demand times of day.
“Consequently we don’t plan to restart the service in the immediate future, but we keep everything under review”.
Night time services were suspended with immediate effect on 18 March in an attempt to limit the spread of coronavirus.
Commenting on the announcement, Conservative mayoral candidate Shaun Bailey said it would “hammer key workers and hinder the recovery of the night time economy”.
But a mayoral spokesperson said that funding for the night time service was not prioritised as a condition of the government’s recent bailout of TfL.
RMT union general secretary Mick Cash said the decision was a reminder that TfL would continue to require government support as it seeks to rebuild after the crisis.
The network has already received a £1.6bn bailout from the state to help patch the gaping hole in its finances caused by the epidemic.
Fare revenues, on which TfL relies for the majority of its revenue, have dropped 90 per cent since the government imposed lockdown measures in March.
Cash said: “The confirmation that there will be no night tube until March next year is a reminder of how fragile the situation is across London’s transport services as we slowly emerge from the Covid-19 lockdown.
Before the Open: Get the jump on the markets with our early morning newsletter
“RMT has made it clear that we will take whatever action is required to protect the jobs and conditions of the staff who have kept essential workers moving throughout this crisis. There must be no return to cuts and austerity.”
As another condition of the bailout, TfL has agreed to ramp up services to 100 per cent of pre-crisis levels by the end of the month.
In order to do so, a spokesperson said that it had had to move Night Tube drivers to the daytime service in order to increase the frequency of trains.
Bailey added: “Key workers such as nurses need the Night Tube to get to their shifts.
“Without the night tube those journeys will be longer and more arduous – hardly fair.
“The night time economy has been decimated by the coronavirus and it will need the Mayor’s assistance to recover as lockdown is eased.
“Suspending it will actively harm the recovery of one of our most important hospitality sectors”.
UK Hospitality chief executive Katie Nicholls said: Our hope is that as the capital’s late night businesses reopen, it is in tandem with the night tube restarting.
“The importance of strong trading around the clock cannot be understated as we emerge from lockdown – day time and night time licensed venues support each other and the surrounding businesses as well.”
As a condition of the bailout, TfL announced today that free travel for freedom pass holders would be suspended during morning peak hours from 15 June.
The move, which is temporary, will these cards are automatically set to be not valid during the morning peak period.
They will remain valid at all other times.


cityam--2020-06-04--ECB beefs up bond-buying to €1.35 trillion to boost Eurozone economy

The European Central Bank ( ECB ) has dramatically increased its bond-buying programme in a bid to stimulate the moribund Eurozone economy , which has been battered by coronavirus .
The ECB added €600bn ( £540bn ) to its €750bn pandemic emergency purchase programme ( PEPP ) , which it launched in March .
It kept its main deposit interest rate on hold at minus 0.5 per cent .
It also extended purchases under the PEPP until at least the end of June 2021 .
The governing council said in a statement that , in any case , it “ @ @ @ @ @ @ @ PEPP until it judges that the coronavirus crisis phase is over ” .
Under the PEPP , the Eurozone ’ s central bank buys mainly government bonds from banks and firms .
This holds down interest rates across the economy and floods firms with cash in an effort to increase borrowing and spending .
The move came as the Eurozone economy remains mired in a deep and unequal downturn .
Highly indebted countries like Italy and Greece are set to suffer the most .
The ECB ’ s bond-buying will benefit them by @ @ @ @ @ @ @ of government borrowing .
Before the Open : Get the jump on the markets with our early morning newsletter The ECB governing council ’ s statement said : “ In response to the pandemic-related downward revision to inflation over the projection horizon , the PEPP expansion will further ease the general monetary policy stance.
” It said it would support borrowing “ in the real economy , especially for businesses and households ” .
The EU remains locked in debates about a recovery fund for the continent .
Leaders are set to meet @ @ @ @ @ @ @ of a plan .
Last month , Commission president Ursula von der Leyen proposed a €750bn fund , to be distributed mainly in grants .
Yet the plan faces opposition from the so-called frugal four states , the Netherlands , Austria , Sweden and Denmark .
Figures released on Tuesday showed that the ECB ’ s purchases have been weighted towards Italy .
It also snapped up Greek bonds for the first time since 2012 .
Read more : German finance minister : €500bn Recovery fund will help Europe exit crisis The ECB @ @ @ @ @ @ @ showed that the bank was unfazed by a German constitutional court decision that demanded it justify its massive purchases of government bonds from 2015 or lose the Bundesbank ’ s involvement .
ECB president Christine Lagarde said last month that she was “ undeterred ” by the decision .
“ We are an independent institution , accountable to the European Parliament , driven by mandate , ” she said .

ECB beefs up bond-buying to €1.35 trillion to boost Eurozone economy
ECB president Christine Lagarde
The European Central Bank (ECB) has dramatically increased its bond-buying programme in a bid to stimulate the moribund Eurozone economy, which has been battered by coronavirus.
The ECB added €600bn (£540bn) to its €750bn pandemic emergency purchase programme (PEPP), which it launched in March. It kept its main deposit interest rate on hold at minus 0.5 per cent.
It also extended purchases under the PEPP until at least the end of June 2021. The governing council said in a statement that, in any case, it “will conduct net asset purchases under the PEPP until it judges that the coronavirus crisis phase is over”.
Under the PEPP, the Eurozone’s central bank buys mainly government bonds from banks and firms. This holds down interest rates across the economy and floods firms with cash in an effort to increase borrowing and spending.
The move came as the Eurozone economy remains mired in a deep and unequal downturn. Highly indebted countries like Italy and Greece are set to suffer the most. The ECB’s bond-buying will benefit them by bringing down bond yields – the cost of government borrowing.
Before the Open: Get the jump on the markets with our early morning newsletter
The ECB governing council’s statement said: “In response to the pandemic-related downward revision to inflation over the projection horizon, the PEPP expansion will further ease the general monetary policy stance.”
It said it would support borrowing “in the real economy, especially for businesses and households”.
ECB part of fierce economic debates
The EU remains locked in debates about a recovery fund for the continent. Leaders are set to meet this month to thrash out the details of a plan.
Last month, Commission president Ursula von der Leyen proposed a €750bn fund, to be distributed mainly in grants. Yet the plan faces opposition from the so-called frugal four states, the Netherlands, Austria, Sweden and Denmark.
Figures released on Tuesday showed that the ECB’s purchases have been weighted towards Italy. It also snapped up Greek bonds for the first time since 2012.
The ECB’s decision to ramp up bond-buying showed that the bank was unfazed by a German constitutional court decision that demanded it justify its massive purchases of government bonds from 2015 or lose the Bundesbank’s involvement.
ECB president Christine Lagarde said last month that she was “undeterred” by the decision. “We are an independent institution, accountable to the European Parliament, driven by mandate,” she said.


cityam--2020-06-04--IAG haemorrhaging cash at £178m a week, says BA boss Cruz

British Airways boss Alex Cruz has said that parent company IAG was burning through £178m a week due to the coronavirus crisis , raising fears it might not survive .
In an internal note seen by Reuters , Cruz said that IAG ’ s dire financial situation meant its 12,000 job cuts were necessary .
Read more : MPs slam British Airways ’ use of furlough amid 12,000 job cuts The airline came under heavy criticism in parliament yesterday over its treatment of its workforce , especially in its use of the government ’ s furlough scheme .
In April @ @ @ @ @ @ @ to change terms and conditions for its staff , just weeks after it had placed 30,000 of its staff on the job retention scheme .
Transport select committee chairman Huw Merriman said that BA was “ effectively sacking ” its entire workforce and replacing it with 30,000 staff on inferior contracts .
On behalf of the government , aviation minister Kelly Tolhurst said : “ The scheme was not designed for taxpayers to fund the wages of employees only for those companies to put the same staff on notice of redundancy during the @ @ @ @ @ @ @ Get the jump on the markets with our early morning newsletter In his letter , Cruz wrote that BA did not have “ an absolute right to exist ” and that in the future the carrier would have to compete with other airlines for customers .
He urged unions Unite and GMB to engage with the airline over the redundancies , adding that it was “ working constructively ” with pilots union Balpa .
Alongside the existing damage done to the aviation industry by the coronavirus crisis , BA now faces another threat @ @ @ @ @ @ @ s decision to impose a 14-day quarantine on all incoming travellers to England .
IAG ’ s boss Willie Walsh has already criticised the measure , which Cruz called “ another blow to our industry ” .
In a session with the transport committee last month , Walsh had said the airline will have to revise its plan to ramp up services from July as a result of the decision .
The government faced a revolt from Tory MPs over the decision , with many backbenchers hitting out at the plans after home @ @ @ @ @ @ @ .
Read more : British Airways to review July restart plans after quarantine plans revealed Former prime minister Theresa May said that without the aviation industry “ there is no global Britain ” .
Former cabinet minister Theresa Villiers also called on Patel to scrap the “ blanket quarantine ” and bring in “ air bridges ” to save jobs .

IAG haemorrhaging cash at £178m a week, says BA boss Cruz
British Airways boss Alex Cruz has said that parent company IAG was burning through £178m a week due to the coronavirus crisis, raising fears it might not survive.
In an internal note seen by Reuters, Cruz said that IAG’s dire financial situation meant its 12,000 job cuts were necessary.
The airline came under heavy criticism in parliament yesterday over its treatment of its workforce, especially in its use of the government’s furlough scheme.
In April BA announced the job cuts and moves to change terms and conditions for its staff, just weeks after it had placed 30,000 of its staff on the job retention scheme.
Transport select committee chairman Huw Merriman said that BA was “effectively sacking” its entire workforce and replacing it with 30,000 staff on inferior contracts.
On behalf of the government, aviation minister Kelly Tolhurst said: “The scheme was not designed for taxpayers to fund the wages of employees only for those companies to put the same staff on notice of redundancy during the furlough period.”
Before the Open: Get the jump on the markets with our early morning newsletter
In his letter, Cruz wrote that BA did not have “an absolute right to exist” and that in the future the carrier would have to compete with other airlines for customers.
He urged unions Unite and GMB to engage with the airline over the redundancies, adding that it was “working constructively” with pilots union Balpa.
Alongside the existing damage done to the aviation industry by the coronavirus crisis, BA now faces another threat to its recovery in the government’s decision to impose a 14-day quarantine on all incoming travellers to England.
IAG’s boss Willie Walsh has already criticised the measure, which Cruz called “another blow to our industry”.
In a session with the transport committee last month, Walsh had said the airline will have to revise its plan to ramp up services from July as a result of the decision.
The government faced a revolt from Tory MPs over the decision, with many backbenchers hitting out at the plans after home secretary Priti Patel unveiled the details yesterday.
Former prime minister Theresa May said that without the aviation industry “there is no global Britain”.
Former cabinet minister Theresa Villiers also called on Patel to scrap the “blanket quarantine” and bring in “air bridges” to save jobs.


cityam--2020-06-04--FTSE 100 quarterly review highlights the economy’s winners and losers

Home-repairs company Homeserve , cybersecurity firm Avast , DIY group Kingfisher and gambling giant GVC were the four companies announced yesterday as being promoted to the FTSE 100 – the index of the 100 biggest UK companies .
Cruise giant Carnival , airline easyJet , aerospace components firm Meggitt and British Gas-owner Centrica are all making way .
The FTSE reshuffles its pack every quarter and yesterday ’ s review is the first since coronavirus caused the country ’ s lockdown on 23 March .
Avast , for example , has benefited from the increase in working from home .
@ @ @ @ @ @ @ , has seen a rise in online casino business .
International travel has been among the industries hardest hit by coronavirus , which largely explains the departures .
Promotion and regulation every three months The quarterly review of the FTSE 100 ’ s membership sees the best-performing FTSE 250 businesses promoted and the worst-performing top-tier companies fall through the trapdoor .
The process is rather like football ’ s Premier League and Championship deciding promotion and relegation four times a year , instead of once .
In this latest review , Kingfisher ( @ @ @ @ @ @ @ & Q ) is a rapid re-entry , while easyJet had only recently piloted a course back into the top division .
It seems that some companies are rather like the West Bromwich Albion of Corporate Britain , bouncing between the top flight and the second tier ( the FTSE 100 has been home to 19 continuous members since its creation 36 years ago ) .
It ’ s not a clinical cut : to prevent stocks from constantly dipping in and out , a company is relegated only if it sits in @ @ @ @ @ @ @ given to FTSE 250 companies that rise to 90th position or above .
Also , the ins-and-outs are actually only implemented after a pause of more than a fortnight ( for yesterday ’ s announcement , this means the changes actually take effect from 22 June ) .
This allows investment managers time to adjust passive portfolios and other investments .
More broadly , investors are assessing how well companies are positioned to bounce back as coronavirus begins to recede ( and their potential ability to succeed in the new world beyond ) @ @ @ @ @ @ @ this week and has largely been the focus since lockdown began ( the overall market briefly dipped below 5,000 points in March ) .
Just yesterday City AM reported that the FTSE 100 rose 1.5 per cent to 6,310 points , close to a three-month high – ironically , easyJet shares actually rose six per cent yesterday ( perhaps the equivalent , in football , would be winning on the season ’ s final day with relegation already sadly inevitable ) .
The FTSE 100 is naturally the headline-grabbing share index , but @ @ @ @ @ @ @ 350 , the FTSE All-Share and the FTSE4Good Global Index , which focuses on corporate responsibility , as well as the Alternative Investment Market ( AIM ) – also reflect the health of the overall economy .
More than 70 per cent of the FTSE 100 ’ s revenues come from beyond UK shores and the ‘ next 250 ’ are frequently more domestically-oriented than those on the FTSE 100 .
“ The FTSE 250 is , in some ways , a better indicator of overall UK economic performance and consumer confidence than @ @ @ @ @ @ @ a greater share of its revenue derives from the UK , ” says Simon Nayyar , who runs corporate and financial communications agency Acuitas Communications .
Kate Heseltine is head of policy and communications at the Investor Relations Society , which promotes best practice in investor relations for its members across the FTSE and AIM .
“ Many smaller companies aspire to be promoted into the ‘ blue-chip ’ league , which is often seen as a bellwether for the health of the UK economy , ” she says .
But although the @ @ @ @ @ @ @ terms of market value , Heseltine also highlights the significance of the other indices : “ Although FTSE 100 constituents tend to have greater access to capital and can be influential in the development of new policies and regulation , we also see many examples across our membership base of companies outside of the FTSE 100 leading the way in investor communications and on high-agenda items such as environmental , social and governance ( ESG ) issues.
” Naturally , however , scrutiny and attention is highest on fortunes of Britain ’ s @ @ @ @ @ @ @ .
“ FTSE 100 membership screams ‘ I ’ ve made it ’ more powerfully than almost anything else can , ” says Nayyar .
“ It grants access to a wider base of top tier institutional investors and greater liquidity .
In marketing and business development terms , membership broadens and deepens networks worldwide while building the company ’ s equity story , and accelerating growth and enterprise value .
That ’ s why there ’ s as much comment about quarterly relegations from the FTSE 100 as about those debuting.
” @ @ @ @ @ @ @ of ins and outs will be revealed in September , with the headlines again likely to be dominated by the corporate winners and losers in the new coronavirus economy .

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FTSE 100 quarterly review highlights the economy’s winners and losers
Getty images
Home-repairs company Homeserve, cybersecurity firm Avast, DIY group Kingfisher and gambling giant GVC were the four companies announced yesterday as being promoted to the FTSE 100 – the index of the 100 biggest UK companies.
Cruise giant Carnival, airline easyJet, aerospace components firm Meggitt and British Gas-owner Centrica are all making way.
The FTSE reshuffles its pack every quarter and yesterday’s review is the first since coronavirus caused the country’s lockdown on 23 March. Avast, for example, has benefited from the increase in working from home. GVC, which owns Ladbrokes and Bwin, has seen a rise in online casino business. International travel has been among the industries hardest hit by coronavirus, which largely explains the departures.
Promotion and regulation every three months
The quarterly review of the FTSE 100’s membership sees the best-performing FTSE 250 businesses promoted and the worst-performing top-tier companies fall through the trapdoor.
The process is rather like football’s Premier League and Championship deciding promotion and relegation four times a year, instead of once. In this latest review, Kingfisher (which owns DIY chains Screwfix and B&Q) is a rapid re-entry, while easyJet had only recently piloted a course back into the top division. It seems that some companies are rather like the West Bromwich Albion of Corporate Britain, bouncing between the top flight and the second tier (the FTSE 100 has been home to 19 continuous members since its creation 36 years ago).
It’s not a clinical cut: to prevent stocks from constantly dipping in and out, a company is relegated only if it sits in 111th place or below. Promotion is given to FTSE 250 companies that rise to 90th position or above. Also, the ins-and-outs are actually only implemented after a pause of more than a fortnight (for yesterday’s announcement, this means the changes actually take effect from 22 June). This allows investment managers time to adjust passive portfolios and other investments.
More broadly, investors are assessing how well companies are positioned to bounce back as coronavirus begins to recede (and their potential ability to succeed in the new world beyond). This was reflected in headlines earlier this week and has largely been the focus since lockdown began (the overall market briefly dipped below 5,000 points in March).
Just yesterday City AM reported that the FTSE 100 rose 1.5 per cent to 6,310 points, close to a three-month high – ironically, easyJet shares actually rose six per cent yesterday (perhaps the equivalent, in football, would be winning on the season’s final day with relegation already sadly inevitable).
Companies’ UK focus increases below top tier
The FTSE 100 is naturally the headline-grabbing share index, but further indices – which include the FTSE 350, the FTSE All-Share and the FTSE4Good Global Index, which focuses on corporate responsibility, as well as the Alternative Investment Market (AIM) – also reflect the health of the overall economy.
More than 70 per cent of the FTSE 100’s revenues come from beyond UK shores and the ‘next 250’ are frequently more domestically-oriented than those on the FTSE 100.
“The FTSE 250 is, in some ways, a better indicator of overall UK economic performance and consumer confidence than the FTSE 100 because, proportionately, a greater share of its revenue derives from the UK,” says Simon Nayyar, who runs corporate and financial communications agency Acuitas Communications.
Kate Heseltine is head of policy and communications at the Investor Relations Society, which promotes best practice in investor relations for its members across the FTSE and AIM. “Many smaller companies aspire to be promoted into the ‘blue-chip’ league, which is often seen as a bellwether for the health of the UK economy,” she says.
But although the top 100 firms lead the way in terms of market value, Heseltine also highlights the significance of the other indices: “Although FTSE 100 constituents tend to have greater access to capital and can be influential in the development of new policies and regulation, we also see many examples across our membership base of companies outside of the FTSE 100 leading the way in investor communications and on high-agenda items such as environmental, social and governance (ESG) issues.”
FTSE 100 membership means marketing cachet
Naturally, however, scrutiny and attention is highest on fortunes of Britain’s corporate premier league: the FTSE 100.
“FTSE 100 membership screams ‘I’ve made it’ more powerfully than almost anything else can,” says Nayyar. “It grants access to a wider base of top tier institutional investors and greater liquidity. In marketing and business development terms, membership broadens and deepens networks worldwide while building the company’s equity story, and accelerating growth and enterprise value. That’s why there’s as much comment about quarterly relegations from the FTSE 100 as about those debuting.”
The FTSE 100’s next set of ins and outs will be revealed in September, with the headlines again likely to be dominated by the corporate winners and losers in the new coronavirus economy.


cityam--2020-06-04--Bafta Awards: Sky production push pays off as Chernobyl leads nominations

Hit Sky series Chernobyl has picked up 14 nominations at the Bafta Television Awards 2020 as the media giant reaps the rewards of its production push .
The critically-acclaimed miniseries , which is based on the 1986 disaster at the Chernobyl nuclear power plant , led the field at this year ’ s awards .
Read more : Sky donates £500,000 to emergency coronavirus film and TV fund It is now one of the most-nominated shows in the ceremony ’ s history — tied with the BBC ’ s Killing Eve last year .
Netflix ’ s royal romp The @ @ @ @ @ @ @ streaming service also picked up six nominations for Japanese gangster thriller Giri/Haji .
BBC Three hit Fleabag , written by and starring Phoebe Waller-Bridge , also scooped six nominations .
Chernobyl ’ s success helped drive Sky to a record year , with a total of 25 Bafta nominations .
Other shortlisted original and acquired shows included Succession and Catherine the Great .
The critical success will come as a boost to Sky executives after the company announced plans to double its production budget to £1bn over the next five years .
The @ @ @ @ @ @ @ a 32-acre studio hub in Elstree as it shifts its focus to original programming in a bid to take on streaming rivals such as Netflix .
“ We ’ re delighted with Sky ’ s record number of nominations for this year ’ s Bafta TV awards , including an incredible 14 nominations for our original series Chernobyl , ” said Zai Bennett , managing director of content at Sky .
“ This recognition is a true reflection of the success of our increased investment in original content and the brilliant work of @ @ @ @ @ @ @ Read more : Party crasher : BBC launches new co-watching feature to rival Netflix Other Bafta nominations in entertainment categories include Jodie Comer for her role as Villanelle the BBC ’ s Killing Eve , Netflix series Sex Education and the Gavin and Stacey Christmas special .
News nominations include Prince Andrew ’ s disastrous Newsnight interview with Emily Maitlis and Sky News ’ coverage of Hong Kong protests .

Bafta Awards: Sky production push pays off as Chernobyl leads nominations
The growth was driven by the success of blockbuster British dramas such as Chernobyl (Image: Sky)
Hit Sky series Chernobyl has picked up 14 nominations at the Bafta Television Awards 2020 as the media giant reaps the rewards of its production push.
The critically-acclaimed miniseries, which is based on the 1986 disaster at the Chernobyl nuclear power plant, led the field at this year’s awards.
It is now one of the most-nominated shows in the ceremony’s history — tied with the BBC’s Killing Eve last year.
Netflix’s royal romp The Crown bagged seven nominations, while the streaming service also picked up six nominations for Japanese gangster thriller Giri/Haji.
BBC Three hit Fleabag, written by and starring Phoebe Waller-Bridge, also scooped six nominations.
Chernobyl’s success helped drive Sky to a record year, with a total of 25 Bafta nominations. Other shortlisted original and acquired shows included Succession and Catherine the Great.
The critical success will come as a boost to Sky executives after the company announced plans to double its production budget to £1bn over the next five years.
The Comcast-owned firm has also unveiled plans for a 32-acre studio hub in Elstree as it shifts its focus to original programming in a bid to take on streaming rivals such as Netflix.
“We’re delighted with Sky’s record number of nominations for this year’s Bafta TV awards, including an incredible 14 nominations for our original series Chernobyl,” said Zai Bennett, managing director of content at Sky.
“This recognition is a true reflection of the success of our increased investment in original content and the brilliant work of everyone involved in the nominated shows.”
Other Bafta nominations in entertainment categories include Jodie Comer for her role as Villanelle the BBC’s Killing Eve, Netflix series Sex Education and the Gavin and Stacey Christmas special.
News nominations include Prince Andrew’s disastrous Newsnight interview with Emily Maitlis and Sky News’ coverage of Hong Kong protests.
Main image credit: Sky


cityam--2020-06-04--We risk entrenching racial inequalities unless we change our economic response to Covid-19

Like many , I have been deeply worried by the growing evidence about the disproportionate impact of Covid-19 on our black and ethnic minority ( BAME ) communities .
Public Health England ’ s latest research , released this week , shows that BAME communities are at far higher risk of catching Covid-19 and are at greater risk of dying from the disease too .
The fact that they are more likely to be living in poorer communities and in high-risk , low-paid occupations points to a strong correlation .
The Public Health England research demonstrates how social and economic @ @ @ @ @ @ @ to this pandemic .
Unfortunately , the government ’ s economic response risks entrenching the very inequalities that have already weakened us .
Get City A.M. columnists ’ views delivered straight to your inbox in our daily Midday Update newsletter .
If we are to recover in any meaningful sense , structural inequalities must be addressed urgently , starting with safeguarding economic and social opportunities that benefit BAME people .
Some 20 per cent of the UK ’ s social enterprises — businesses which trade to deliver their social or environmental mission — @ @ @ @ @ @ @ .
One in eight are led by BAME chief executives and directors , compared to one in 20 SMEs .
Yet these businesses , which are on the frontline of tackling inequality , are falling through the gaps , unable to get access to grants or finance that meet their needs .
This is putting up to a million jobs at risk in some of our poorest areas .
These communities face a double whammy , where Covid-19 takes away family and friends , and the economic impact of the pandemic takes their @ @ @ @ @ @ @ ’ s election victory was based on a repudiation of the previous economic strategy .
He recognised then , as we all do , that we have to do things differently .
We need to target support at those places that have been left behind .
We need to reduce inequalities which undermine our resilience and deprive us of talents that can power our economy forward .
There are three quick things that the government can do to push us towards a better economic model .
First , we need to back businesses @ @ @ @ @ @ @ vulnerable people .
Let ’ s target any tax cuts and support at those that most deserve it , rather than a single approach to business tax across the board .
The truth is that some businesses are making a bigger contribution to the nation than others , while a few are actually exacerbating inequality through poverty wages and poor working conditions .
They should not be rewarded .
Second , we need to reform our public services .
This means breaking down silos between public bodies and using different models of delivery @ @ @ @ @ @ @ , which have a track record of success .
Finally , we need to reinvest in our civil society .
Social and cultural capital is critical to boosting economic performance and reducing inequalities .
Our richest areas do not have more charities and voluntary associations because they are rich , they are rich because they have access to the social and cultural capital that these organisations provide .
The fact that nine out of 10 BAME voluntary organisations are at risk of running out of cash is deeply worrying , and evidence of @ @ @ @ @ @ @ worse .
Investing in our social infrastructure over the coming weeks is as important as investing in physical infrastructure .
An inclusive economic agenda must not be lost in the midst of crisis .
Falling back on tried and failed methods will only lead to the same poor results .
If we get our immediate economic response wrong , we risk entrenching inequalities that will cost us down the line .
The government must adapt its plans based on the growing evidence presented to it .
Closing the gap between our communities is @ @ @ @ @ @ @ but a medical and social necessity .

We risk entrenching racial inequalities unless we change our economic response to Covid-19
An inclusive economic agenda must not be lost in the midst of crisis
Like many, I have been deeply worried by the growing evidence about the disproportionate impact of Covid-19 on our black and ethnic minority (BAME) communities.
Public Health England’s latest research, released this week, shows that BAME communities are at far higher risk of catching Covid-19 and are at greater risk of dying from the disease too. The fact that they are more likely to be living in poorer communities and in high-risk, low-paid occupations points to a strong correlation.
The Public Health England research demonstrates how social and economic inequalities have made our country particularly vulnerable to this pandemic. Unfortunately, the government’s economic response risks entrenching the very inequalities that have already weakened us.
Get City A.M. columnists’ views delivered straight to your inbox in our daily Midday Update newsletter.
If we are to recover in any meaningful sense, structural inequalities must be addressed urgently, starting with safeguarding economic and social opportunities that benefit BAME people.
Some 20 per cent of the UK’s social enterprises — businesses which trade to deliver their social or environmental mission — are based in our most deprived areas. One in eight are led by BAME chief executives and directors, compared to one in 20 SMEs.
Yet these businesses, which are on the frontline of tackling inequality, are falling through the gaps, unable to get access to grants or finance that meet their needs. This is putting up to a million jobs at risk in some of our poorest areas.
These communities face a double whammy, where Covid-19 takes away family and friends, and the economic impact of the pandemic takes their jobs and livelihoods.
The Prime Minister’s election victory was based on a repudiation of the previous economic strategy. He recognised then, as we all do, that we have to do things differently. We need to target support at those places that have been left behind. We need to reduce inequalities which undermine our resilience and deprive us of talents that can power our economy forward.
There are three quick things that the government can do to push us towards a better economic model.
First, we need to back businesses working in our poorest communities and with vulnerable people. Let’s target any tax cuts and support at those that most deserve it, rather than a single approach to business tax across the board. The truth is that some businesses are making a bigger contribution to the nation than others, while a few are actually exacerbating inequality through poverty wages and poor working conditions. They should not be rewarded.
Second, we need to reform our public services. This means breaking down silos between public bodies and using different models of delivery, such as social enterprises and charities, which have a track record of success.
Finally, we need to reinvest in our civil society. Social and cultural capital is critical to boosting economic performance and reducing inequalities. Our richest areas do not have more charities and voluntary associations because they are rich, they are rich because they have access to the social and cultural capital that these organisations provide.
The fact that nine out of 10 BAME voluntary organisations are at risk of running out of cash is deeply worrying, and evidence of how inaction could make our current inequalities worse. Investing in our social infrastructure over the coming weeks is as important as investing in physical infrastructure.
An inclusive economic agenda must not be lost in the midst of crisis. Falling back on tried and failed methods will only lead to the same poor results.
If we get our immediate economic response wrong, we risk entrenching inequalities that will cost us down the line. The government must adapt its plans based on the growing evidence presented to it.
Closing the gap between our communities is now not just a moral good, but a medical and social necessity.
Main image credit: Getty