Connect with us

Business

Bailout bill tops £100bn but struggling firms beg for more

Published

on

bailout bill tops 100bn but struggling firms beg for more

Businesses are demanding more taxpayer cash to help them survive new lockdown restrictions, as the Treasury revealed the bill for propping up struggling firms has topped £100billion so far.

Six trade associations have written to Chancellor Rishi Sunak urging him to extend the emergency loan schemes due to end this month.

Sunak has also come under mounting pressure to prolong the furlough scheme to avoid a wave of job losses.

Six trade associations have written to Chancellor Rishi Sunak (pictured) urging him to extend the emergency loan schemes due to end this month

Six trade associations have written to Chancellor Rishi Sunak (pictured) urging him to extend the emergency loan schemes due to end this month

Business leaders are calling for an extension for firms which will be hardest hit by new lockdown measures, which include 10pm curfews for pubs and restaurants in England and an instruction to work from home if you can.

This has raised fears of mass redundancies in the hospitality sector and among High Street retailers, which rely heavily on office workers.

As Premier Inn owner Whitbread announced plans to cut up to 6000 jobs, Nick Mackenzie, Greene King’s chief executive, said: ‘Pubs are just starting to get back on their feet after lockdown and these new restrictions are a significant setback.

‘We urgently need the Government to extend the furlough scheme for hospitality venues and confirm what additional support it will provide to protect jobs and the future of pubs.’

Yesterday, Bank of England Governor Andrew Bailey, who recently backed Sunak’s decision to end the Job Retention Scheme on October 31, urged the Government to ‘stop and rethink the approach’.

In a webinar hosted by the British Chambers of Commerce, he said that future schemes should be targeted at the sectors most in need.

His intervention came as the Chancellor received a joint letter from a group of trade bodies including the Finance & Leasing Association, and the Consumer Credit Association, calling for extensions to emergency loan schemes. They said: ‘Now is not the time for the British Business Bank to curtail its support schemes.’

The Chancellor is already expected to extend the loans schemes, which were due to expire at the start of November, to the end of November.

But the plea for more support came as official figures revealed that more than £105billion has been dished out in emergency loans and wage subsidies for furloughed workers so far.

Banks have handed out £15.5billion to 66,585 firms under the Coronavirus Business Interruption Loan Scheme.

These loans are 80 per cent backed by the Government – meaning if firms become unable to pay, the taxpayer is on the hook.

And almost 1.3m Bounce Back loans, worth £38billion and which carry a 100 per cent Government guarantee, have been handed to smaller companies.

A total of £39.3billion has so far been claimed by 1.2m employers under the Coronavirus Jobs Retention Scheme, which has supported 9.6m jobs at some stage during the crisis.

Powered by: Daily Mail

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Tesla on track to deliver 500,000 cars despite Covid

Published

on

By

tesla on track to deliver 500000 cars despite covid

Tesla smashed through Wall Street’s expectations as it released its thirdquarter results last night.

The electric car maker said revenue rose to a record £6.7billion from £4.8billion a year earlier — well ahead of the £6.4billion analysts had pencilled in.

And its profit hit £534million for the three month period, higher than estimates of £404million. 

Electric car maker Tesla, led by Elon Musk (pictured) said revenue rose to a record £6.7bn from £4.8bn a year earlier - well ahead of the £6.4bn analysts had pencilled in

Electric car maker Tesla, led by Elon Musk (pictured) said revenue rose to a record £6.7bn from £4.8bn a year earlier - well ahead of the £6.4bn analysts had pencilled in

Electric car maker Tesla, led by Elon Musk (pictured) said revenue rose to a record £6.7bn from £4.8bn a year earlier – well ahead of the £6.4bn analysts had pencilled in

Tesla, led by maverick entrepreneur Elon Musk, had already reported that it delivered 139,300 vehicles during the quarter — a record.

But if it is to meet its goal of delivering half a million cars in 2020 — a target it has stuck to despite Covid — it must send out more than 181,600 vehicles in the last three months of the year.

Tesla said last night that it would still meet the target, but that it was becoming increasingly difficult. 

But shares still jumped more than 2 per cent in afterhours trading as investors who were worried about Tesla’s ability to hit targets had their concerns eased.

Adam Vettese, an analyst at investment platform eToro, said: ‘Tesla’s skyhigh valuation will be causing some investors to worry. 

34681090 0 image a 12 1603314780135

34681090 0 image a 12 1603314780135

Paying a premium for a stock isn’t necessarily an issue but it does mean that the electric car giant will need to keep shifting through the gears if it is to avoid a share sell-off.’

The Tesla figures came after an update from Netflix disappointed investors. 

The streaming giant added 2.2m paid subscribers around the world in the three months to the end of September. 

That was the weakest growth rate in four years and compared with the 15.8m paying customers it gained between January and March as the Covid-19 pandemic forced people to stay home.

Netflix shares almost 7 per cent – wiping £12.3billion off the value of the company. However, it was still worth more than £160billion having seen its shares rise more than 50 per cent this year.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on dailymail.co.uk

Continue Reading

Business

Steelworkers cheer £2bn pension deal: 30,000 set for retirement boost 

Published

on

By

steelworkers cheer 2bn pension deal 30000 set for retirement boost

Thousands of steelworkers will be hoping to receive a boost to their pension pots following a £2billion deal.

Specialist insurance provider Pension Insurance Corporation (PIC) has agreed to buy out the Old British Steel Pension Scheme and take responsibility for more than 30,000 workers’ retirement funds.

The scheme was dumped into the Government’s pensions lifeboat, the Pension Protection Fund (PPF), after former owner Tata Steel restructured its business in 2017.

Pensions rescue: Specialist insurance provider Pension Insurance Corporation has agreed to buy out the Old British Steel Pension Scheme

Pensions rescue: Specialist insurance provider Pension Insurance Corporation has agreed to buy out the Old British Steel Pension Scheme

Pensions rescue: Specialist insurance provider Pension Insurance Corporation has agreed to buy out the Old British Steel Pension Scheme

The PPF spent more than two years analysing it and in the spring concluded its funding was more robust than expected. 

This meant the scheme did not need to stay in the fund and could be taken over by an insurance firm.

What members can receive by being in the PPF can differ depending on a variety of factors. 

PIC says that under the deal every pension will now be ‘at or above’ the levels that would have been received in the protection fund.

Many will take home more because the extra funding available will be distributed into their pension pots.

The arrangement has been praised by the industry and unions.

A spokesman for steelworkers’ union Community said: ‘This is welcome news as it means many scheme members should be better off than they would otherwise have been.

‘The buy-in supports what the trade unions have always said, that the British Steel Pension Scheme was a well funded scheme that could not be allowed to collapse into the PPF.’

An industry source said the deal would be ‘like Christmas’ for those who had been expecting to receive the PPF’s terms.

But PIC has not revealed any details. It has not said who will get more than they would have done had the scheme remained in the protection fund, or how much any uplift might be.

Those in the scheme will not find out what they are owed until the deal completes at the end of next year. About half of the 30,000 members receive a pension.

PIC has around £48billion in assets and manages pension schemes for the likes of BHS, Cadbury and the London Stock Exchange Group. 

It is tightly regulated but if it runs into difficulties, its shareholders, which include the Abu Dhabi Investment Authority and South Africa’s wealthy Rupert family, will be forced to pay up and cover the costs of the pensions. 

If PIC were to collapse, then all members’ pensions would be covered fully by the Financial Services Compensation Scheme.

Jonathan Hazlett, managing director of Open Trustees, which is running the scheme, said: ‘Whilst the PPF provides a valuable safety net and a significant level of protection, many members will now receive higher benefits than they might otherwise have expected had the scheme entered the protection fund.’

The British Steel pension scheme is not related to British Steel, the company that operates steelworks in Scunthorpe and bought out of liquidation by Chinese group Jingye.

The pension scheme dates back to 1967 when it covered employees at the former British Steel, which then became Corus in the 1990s before being sold to India’s Tata Steel in 2007.

Tata, which operates the sprawling Port Talbot plant in South Wales, wanted to sell its UK business in 2016 but agreed to keep it on following an outcry from ministers and unions.

The retirement scheme had been a millstone around Tata’s neck and it eventually struck an agreement to hold on to its UK arm in return for a major restructuring of its pensions liabilities.

Under the deal, Tata agreed to shut the final salary pension scheme and replace it with a less generous alternative. 

Tata also injected a £550million lump sum into the fund and gave the PPF a 33 per cent stake in its UK business.

Most of the British Steel Pension Scheme’s 120,000 or so members chose to transfer into a new fund in 2018.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on dailymail.co.uk

Continue Reading

Business

£12bn wiped off Netflix with fewer customers joining over the summer

Published

on

By

12bn wiped off netflix with fewer customers joining over the summer

More than £12billion was wiped off the value of Netflix last night after fewer customers joined the streaming service over the summer.

The company added 2.2m paid subscribers around the world in the three months to the end of September as it released Enola Holmes, The Devil All the Time and Emily in Paris.

That was the weakest growth rate in four years and compared with the 15.8m paying customers it gained between January and March as the Covid-19 pandemic forced people to stay home. 

34678608 0 image a 12 1603310173946

34678608 0 image a 12 1603310173946

French connection: Emily in Paris is the streaming giant’s latest hit show. But it was not enough to reverse the downturn in the number of new subscribers

Netflix shares fell almost 7 per cent – wiping £12.3billion off the value of the company.

However, it was still worth more than £160billion having seen its shares rise more than 50 per cent this year.

Elsewhere on Wall Street, Snap shares surged more than a third higher after the Snapchat messaging app owner posted better-than-expected figures as more people signed up to chat with friends and family during the pandemic.

The results boosted shares in Facebook and image sharing company Pinterest. Netflix ended the third quarter with 195.2m global streaming customers. 

34676286 8865149 image a 3 1603305382021

34676286 8865149 image a 3 1603305382021

‘Next time we get together, we should be over 200m members,’ co-chief executive Reed Hastings told analysts. 

Netflix forecast in the fourth quarter it would bring in 6m new subscribers around the globe, short of the 6.51m that analysts expected.

It is trying to win customers and fend off competition as viewers embrace online entertainment. 

Netflix acknowledged that competition was increasing as studios across Hollywood from Walt Disney to AT&T’s WarnerMedia have restructured to compete more directly for video subscribers.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: ‘Subscriber growth was always going to stall this quarter, but it’s stuttered more than expected.’

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on dailymail.co.uk

Continue Reading

Trending

Copyright © 2020 DiazHub.