Office for Budget Responsibility forecasts UK’s biggest peacetime deficit in 300 years and permanent ‘economic scars’Coronavirus – latest updatesSee all our coronavirus coverageHopes for a rapid economic rebound from Covid-19 have been dealt a severe blow after official figures revealed a lacklustre return to growth in May with the government put on notice about persistently higher levels of unemployment.Sounding the alarm over the growth outlook as job losses across the country rapidly mount, the Office for Budget Responsibility (OBR) – the Treasury’s independent forecaster – warned unemploym[...]
Investors pump in funds, loans and deferrals alongside Branson’s £200m injectionCoronavirus – latest updatesSee all our coronavirus coverageVirgin Atlantic has announced a £1.2bn rescue deal to allow Sir Richard Branson’s grounded passenger airline to survive another 18 months of turmoil and aim to return to profit in 2022, after four months without scheduled flights.The privately funded recapitalisation package, a combination of cash injections, loans, and deferrals, was finally confirmed on Tuesday after weeks of talks with potential investors, after Virgin’s attempts to garner state support[...]
Rishi Sunak said tax would fall from 20% to 5% until 12 January 2021 but many firms plan to pocket differenceCoronavirus – latest updatesSee all our coronavirus coverageShoppers and tourists expecting to see a cut in prices on Wednesday following the chancellor’s decision to slash VAT on hospitality could be in for disappointment as some organisations pocket the saving rather than pass it on to consumers.Last week Rishi Sunak announced that the tax, which is charged on most goods and services, would be cut from 20% to 5% from 15 July until 12 January 2021 for entrance to restaurants, cafes, ho[...]
Proposal outlines $2tn for clean energy infrastructure and climate solutions, to be spent as quickly as possible in next four yearsJoe Biden has unveiled a new, more aggressive climate and jobs plan which advisers say he would take to Congress “immediately”, if elected president.The new proposal outlines $2tn for clean energy infrastructure and other climate solutions, to be spent as quickly as possible in the next four years, what would be the Democrat’s first term in office. Last year, he proposed $1.7tn in spending over 10 years. Continue reading...
Experts say small towns and rural areas will be hardest hit by UK ditching Chinese firmSmall towns and rural areas across the UK will be hardest hit by delays of up to three years in the rollout of 5G mobile technology, experts have said after ministers announced that Huawei will be stripped from networks by 2027.The total cost to the economy could exceed £7bn, according to research analysing the potential cost of eliminating the Chinese equipment supplier in response to US sanctions and pressure from about 60 rebel Tory MPs. Continue reading...
Police chiefs warn new Covid-19 law will be impossible to apply if public fail to comply Coronavirus – latest updatesSee all our coronavirus coveragePolice chiefs and retailers have warned mandatory face coverings will be difficult to enforce if there is mass public resistance to masks, suggesting shop staff are likely to bear the brunt of the burden.Speaking in the Commons on Tuesday, Matt Hancock warned that failure to comply would not only lead to police enforcement but would risk the lives of shopkeepers, who have been up to 75% more likely to die from Covid-19 than the general population.[...]
Swedish brand taps growing market for milk alternatives as sale of 10% stake values firm at $2bnOatly has sold a minority $200m (£157m) stake to a group of high-profile investors that includes Oprah Winfrey and Jay-Z in a deal that values the fashionable Swedish alt-milk brand at $2bn.Malmö-based Oatly is riding high as demand for plant-based milk alternatives soars, with more people switching to vegan or vegetarian diets. Continue reading...
Horse Island, a 64-hectare retreat in Roaringwater Bay, is part of a bucolic Atlantic regionIt is a bold example of online shopping during lockdown: buy a private island off the coast of Ireland for €5.5m (£4.9m) without setting foot on it.The wealthy, unnamed European who made such a purchase relied on video footage to view Horse Island, a 64-hectare (157-acre) retreat in Roaringwater Bay, part of a bucolic Atlantic region in west Cork. Continue reading...
Roger Jenkins made comments during 2008 crisis negotiations with investors, court toldA former Barclays executive has apologised in court for calling financier Amanda Staveley a “tart” and a “dolly bird” during negotiations over an emergency cash call during the 2008 financial crisis.Roger Jenkins, Barclays’ investment banking chief during the crisis, on Tuesday told the judge in high court that he apologised, during questions in a £1.5bn legal action against Barclays. Continue reading...
Multimillion-pound collection features work by Bridget Riley, Damien Hirst and Marc QuinnBritish Airways is selling its multimillion-pound art collection, including work by Bridget Riley and Damien Hirst, as it attempts to raise funds while the Covid-19 crisis continues to devastate the aviation sector.The Sotheby’s sale will include several artworks that could fetch six-figure sums and have previously decorated BA’s executive lounges and company headquarters. Continue reading...
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Boris Johnson’s government says existing kit must also be stripped from 5G networks by 2027
Government concluded that company’s products posed threat to security of UK infrastructure
The government must ensure its China relations remain constructive
Earlier-than-expected exit coincides with UK move to ban Chinese company equipment
Exile for the Chinese group will confirm the ascendancy of rival equipment suppliers
Chief says it would be ‘impossible’ to remove all Chinese group’s kit within 10 years
Chinese group says profit margin improved as consumer business outpaced carrier unit
Washington cautions that London needs to first take a harsher stance on the Chinese group
Ban to take effect within months after pressure from Conservative party rebels and Washington
Google’s Loon project in Kenya is a test of whether the balloon-based service can be profitable
© Copyright The Financial Times Ltd 2020. "FT" and "Financial Times" are trademarks of the Financial Times. See http://www.ft.com/servicestools/help/terms#legal1 for the terms and conditions of reuse.
Mike Mackenzie’s daily analysis of what’s moving global markets
Government concluded that company’s products posed threat to security of UK infrastructure
SoftBank ready to deal, losing patience with Palantir, Dyson’s humidifying fan
Call for companies to protect app data from ‘unlawful foreign exploitation’ comes as TikTok finds itself in political crosshairs
One Israeli company has spotted a niche in helping banks make sure their systems are not being used by criminals
Today’s games give players the chance to see the world from the perspective of other species
Poll finds fund managers anxious about level of bets placed on sector
Given Masayoshi Son’s investment record, he will be selling assets into a wary market
Tiger Global has cashed out most of its shareholding in data analytics company
A ban on Chinese apps is being closely watched by entrepreneurs and investors
© Copyright The Financial Times Ltd 2020. "FT" and "Financial Times" are trademarks of the Financial Times. See http://www.ft.com/servicestools/help/terms#legal1 for the terms and conditions of reuse.