US senate unanimously approves $58bn package for airlines March 26, 2020 Late last night the US senate voted unanimously in favour of a $58bn (£49bn) rescue package for its struggling aviation industry, which has been decimated by the plunge in travel demand caused by coronavirus. Almost half – $25bn of the total package – comes in the form of grants, which airlines will use to continue [...]
BoE and Treasury to resume coordinated response to prevent coronavirus slump March 26, 2020 The Bank of England (BoE) and Treasury will resume their coordinated drive to prevent the coronavirus-related economic shutdown from triggering a deep recession. The BoE, which has already made two emergency cuts to interest rates this month, is reportedly likely to hold off on further action when it makes a statement at noon after its [...]
Goodwill hunting: accountants in the spotlight March 26, 2020 Goodwill in accounting – an intangible asset that is recorded when a buyer acquires a business – has risen up the political agenda on both sides of the Atlantic. In the UK we have seen pressure applied to the London-headquartered International Accounting Standards Board (IASB) in the wake of high-profile failures such as Carillion, the [...]
Coronavirus crisis is putting the public good back at the heart of commerce March 26, 2020 Conservative chancellors are not usually known for their inspirational quotes. Rishi Sunak, however, channelled the mood of the nation when he unveiled his bold package to tackle the coronavirus crisis. Ending his speech on a stirring note, he set out how history would judge our response, highlighting the acts of kindness and decency that would [...]
Coronavirus: Pursue profit at all costs or stand by your staff? The world has its eye on business March 26, 2020 How times have changed. It is remarkable to think that it was just eight weeks ago that business and political leaders from around the world gathered in the Alpine town of Davos. The 50th World Economic Forum was dominated by discussion of the climate crisis, global trade and artificial intelligence. US President Donald Trump declared [...]
Cash-poor UK firms lobby for looser rules on stock offerings March 25, 2020 Advisers to cash-strapped British firms are lobbying regulators to loosen rules governing new stock offerings, in the hope it could make it easier for struggling companies to raise funds. An industry body representing investment banks is asking the Financial Conduct Authority (FCA) to increase the maximum allowed discount for equity sales on the London Stock [...]
Fitch offers UK firms free ratings to access Covid-19 funds March 25, 2020 Ratings agency Fitch is offering unrated UK firms free ratings so they can become eligible for help from the Bank of England (BoE). The agency is offering a range of products, some free of charge, to help access a BoE facility to support businesses throughout the coronavirus outbreak. “In the current unprecedented and volatile situation, [...]
Freshfields and Slaughter and May advise government on covid corporate finance facility March 25, 2020 The Treasury and the Bank of England have called up Magic Circle law firms Slaughter and May and Freshfields Bruckhaus Deringer to advise on the government’s emergency corporate covid financing facility (CCFF). The CCFF will purchase commercial paper, a debt instrument, from companies in order to boost their liquidity. It is available to UK companies [...]
How coronavirus is turning the spotlight on sustainable investing March 25, 2020 It is difficult to start any article without referring to the threat presented by the coronavirus sweeping across countries. The human impacts are clearly devastating for anyone affected, even if the overall impact is at present relatively small in the context of major pandemics through history. The economic and financial impacts are also proving significant. [...]
Coronavirus: City of London Corporation defers rent payments for tenants March 25, 2020 The City of London Corporation is deferring this quarter’s rental payments for commercial tenants worst affected by the coronavirus pandemic. The Corporation, a major landlord in the Square Mile and beyond, is deferring rent payments for the March quarter for all retail, hospitality, small office, and serviced office tenants. Supermarkets, banks, pharmacies and building societies [...]