Three lessons law firms can learn from rivals’ collapses amid coronavirus April 30, 2020 Law firm collapses are a lot like bank runs. Confidence in the institution crumbles, causing partners to rush for the exits – taking their capital and clients with them. Partner departures reduce the firm’s revenue, profit and capital, leading to further partner exits in a destructive feedback loop. Once firms enter this death spiral it [...]
Coronavirus business loans: Liberal Democrats leader calls for ‘loan marketplace’ April 27, 2020 The Treasury should create a “loan marketplace” to better facilitate the coronavirus business loan scheme, according to Liberal Democrat leader Ed Davey. Davey today called for the government to create a website for businesses to browse a wide range of emergency loan options from different banks, similar to websites such as Compare the Market does [...]
Coronavirus: Government must be more imaginative to save small businesses April 27, 2020 The Coronavirus Business Interruption Loan Scheme (CBILs) was launched to much fanfare, with people lining up to praise the far-sighted, generous nature of the programme and proclaim how much it would do for small business. A staggering £330 billion was set aside for interest-free loans, with the Government willing to sit behind 80 per cent [...]
Mike Ashley’s Frasers Group misses out on coronavirus loan, settles Belgian tax bill April 24, 2020 Mike Ashley’s Frasers Group’s application for a coronavirus loan has been rejected, it admitted today, as it finally settled a €674m (£588m) Belgian tax bill. Frasers Group (formerly Sports Direct) saw it application for a government bridging loan denied, sending shares down 2.4 per cent. The Covid Corporate Financing Facility (CCFF) scheme is open to [...]
Coronavirus: If we get it right, there are grounds for optimism for SMEs April 10, 2020 The Government have acted promptly and in scale to address the unprecedented crisis we face. In addition to the schemes to protect jobs and certain hard-hit sectors, such as hospitality, some of the schemes are intended for distribution through the banks. These include: Coronavirus Commercial Financing Facility (CCFF) where the Bank of England buys debt [...]
Coronavirus: Eurozone economy suffers record hit in March April 3, 2020 The Eurozone economy suffered the biggest blow on record in March, survey data has shown, as coronavirus containment efforts all but stopped activity. The IHS Markit purchasing managers’ index (PMI) – a closely watched gauge of the health of the euro area economy – crashed to 29.7 in March from 51.6 in February. A score [...]
AA suspends dividend to brace for possible coronavirus blow March 31, 2020 Repair firm the AA today cancelled its 2019 dividend as it sought to protect itself from the coronavirus outbreak. The company said it has not yet seen any impact from coronavirus, but suspended its final dividend at it outlined multiple future risks. Investors will still receive an interim dividend payment of 0.6p per share. The [...]
Lloyd’s of London boss expects claims spike as market enacts coronavirus response plan March 26, 2020 The chief executive of insurance market Lloyd’s of London said today he expected a spike in claims as a result of the coraonvirus pandemic. Speaking to City A.M., John Neal said “I think we will have heightened claims activity,” but said it was not yet possible to predict the full impact. Neal said Lloyd’s has [...]
DEBATE: Is now the time for the UK to trial a temporary Universal Basic Income? March 18, 2020 Is now the time for the UK to trial a temporary Universal Basic Income? YES, says Julian Jessop, an economics fellow at the Institute of Economic Affairs. In normal times, cash payments regardless of individual need would be too expensive, poorly targeted, and distortionary. It is therefore right to use existing means-tested benefits (notably universal [...]
Saga suspends cruises in £15m coronavirus blow March 13, 2020 British travel group Saga today suspended cruises until the start of May over the escalating coronavirus outbreak, at a cost of between £10m and £15m to the company. Saga’s move follows rival Carnival’s decision to suspend all Princess cruise ship voyages for two months. One of its ocean liners, the Diamond Princess, was an early [...]