Dividend recovery ‘could take six years’ after record-breaking fall July 20, 2020 Shareholder payouts could take up to six years to recover to pre-coronavirus pandemic levels, the latest research has shown, after companies were forced to slash dividends during the crisis. Dividends were down £22bn to £16.1bn in the second quarter of the year, a record fall of 57.2 per cent year on year. Underlying dividends, excluding [...]
Andrew Bailey says an uneven economic recovery has begun July 17, 2020 Bank of England governor Andrew Bailey has said the UK economy is starting to recover from April’s lockdown, although he stressed that the rebound had been uneven so far. Bailey said activity was resuming “quite strongly” in the housing and car markets. But he said the hospitality and entertainment sectors were still struggling. His comments [...]
The Friday Interview: Fortnum’s looks to the future July 17, 2020 It’s an iconic London brand, but like the rest of the capital, Fortnum & Mason was hit by the Covid-19 lockdown. We catch up with the store’s Retail & Hospitality Director Simon Thompson – who tells us that while it’s all a little different, loyal customers still have smiles on their faces. Fortnum & Mason [...]
BoE governor calls on people to return to the office July 16, 2020 The Bank of England governor has said deserted town and city centres will hold back economic recovery. Boris Johnson is preparing to tell the nation on Friday that it is time to return to the office after Andrew Bailey said people’s “fear” of commuting was “holding back the recovery”. The Prime Minister is expected to [...]
UK to borrow record £385bn in bond markets to fund Covid support July 16, 2020 UK government fundraising in the bond markets will hit a record £385bn between April and November after it announced plans to raise £110bn more from September. The unprecedented bond sales come as the government racks up the biggest peacetime budget deficit in hundreds of years. It has spent big to keep the economy on its [...]
What are the long-term prospects for healthcare investing post Covid-19? July 16, 2020 The pandemic has shone a spotlight on healthcare but what happens when a vaccine is found? We asked Schroders’ investment experts for their views on the sector’s long-term prospects. The Covid-19 crisis has hurt most economic sectors this year. As of 30 June, healthcare was one of only three sectors to post positive year-to-date returns [...]
Government must tackle £35bn corporate debt crisis, warn City bosses July 16, 2020 The government must take urgent action to prevent a wave of defaults on £35bn of corporate debt taken on during coronavirus wreaking havoc in the economy, a new report backed by some of the City’s biggest names has said. Policymakers should create a “UK Recovery Corporation” to turn risky debts into more manageable forms like [...]
Is the office an analogue product in a digital world? July 15, 2020 Reports of the death of the office are premature, but change is coming as Covid-19 means more of us will work from home in the future. The Covid-19 pandemic has acted as a catalyst, accelerating a number of global trends. One of the most significant of these is working from home, a trend which is [...]
‘Incomplete’ V-shaped economic recovery likely, says Bank policymaker July 15, 2020 The UK economy is likely to go through an “interrupted or incomplete” V-shaped recovery as unemployment and social distancing weigh on growth, a Bank of England rate-setter has said. BoE monetary policy committee (MPC) member Silvana Tenreyro said the UK economy’s recovery will depend on coronavirus cases being brought under control domestically and around the [...]
DEBATE: With the economy under such strain, should new fintech regulation be paused? July 15, 2020 With the economy under such strain, should new fintech regulation be paused? Elisabeth Kohlbach, co-founder and chief executive at Skwire, says YES. The UK’s fintech scene is one of the most vibrant and well-regulated in Europe. And in extraordinary times, this UK success story needs to be nurtured, not subject to more red tape. The [...]