As creditworthyness starts to fail, the banking system house of cards fails with it.
Banks are calling in loans as travel companies loose creditworthyness. Roll Royce has cashflow problems because 1/3 of their income comes from travel.
This is fast developing into a Last Man standing scenario. Most Large busineeses are entirely dependent upon credit. When Pirelli implemented SAP, they could not invoice for 30 days and had to be bailed out by the Government.
There are calls for Banks not to pay out £7.5 Billion in dividends over the comming week. What will they do with the money? It won’t be going into our pension funds. See below M&G’s flagship fund has lost 1/4 of its asset value. This will be happenning to your pension fund.
oming out the other side of this it will be the fast moving SME’s who will be making a difference, and creating employment. That’s us. Lets stick together as ever.
Most of All – Stay safe. 50% of ventillated patients are dying. You dont want to risk it. If you are filling your Car up with petrol, wear disposable gloves, and leave them in the bin at the garage. Don’t transfer the virus to your steering wheel then your home. Use your car key to hit the buttons at the cash point. Then Antibac the car key. Minimise contact with the outside world.
My thanks to Citywire New Model Advisor for these links
- The Times: Bank of England Governor Andrew Bailey came under fresh pressure last night to put a stop to £7.5 billion of dividends due to be paid out by British banks over the next few weeks.
- The Daily Telegraph: Global leaders and central bankers need to “urgently” step up efforts to rescue businesses from a sudden stop, the Bank for International Settlements has warned.
- Financial Times: US crude oil prices fell below $20 a barrel after a fall in demand due to virus created surplus that risked overwhelming storage capacity.
- Financial Times: The world’s highest-rated companies have raised hundreds of billions of dollars of debt despite higher borrowing costs to bolster their ability to weather the economic downturn.
- Financial Times: US state legislators and lawyers have threatened to force the payment of coronavirus-related insurance claims that the industry insists are excluded from its policies.
- Financial Times: Jefferies chief financial officer Peg Broadbent has become the first senior Wall Street figure known to have died from coronavirus complications.
- The Daily Telegraph: China’s failure to give “clear” information about the spread of the coronavirus has been blamed for worsening the spread of the disease.
Business and economics
- The Guardian: Lockdown to stop coronavirus pandemic from spreading is expected to lead to the demise of thousands of restaurants, pubs, shopping chains and other high street businesses.
- The Guardian: The coronavirus pandemic could cause UK economic output to plunge by an unprecedented 15% in the second quarter of the year, according to dire forecasts.
- The Daily Telegraph: Rolls-Royce is facing a cash flow crisis as the collapse in air travel caused by coronavirus sees half of its revenues evaporate.
- Financial Times: M&G’s flagship bond fund has lost nearly a quarter of its assets during the coronavirus-induced market sell-off.
- The Times: Easyjet and Cineworld have been among London’s most heavily shorted stocks during the market rout.
- The Guardian: Almost half of company bosses in 45 countries are speeding up plans to automate their businesses as workers are forced to stay at home during the coronavirus outbreak.
- The Daily Telegraph: The Government has stepped in to take control of the country’s trains in response to coronavirus, with taxpayers at risk to shoulder an £8 billion railway pensions black hole.
- The Times: Intu Properties has been criticised for seeking government support after it emerged that its deputy chairman’s property empire had received about £280 million in dividends in recent years.
- The Times: Loan defaults due to economic downturn are threatening the stability of the £110 billion motor finance sector.
- The Guardian: The motor industry has been accused by campaigners of trying to use the coronavirus crisis to avert stricter environmental regulation.
- The Times: A sudden shutdown of Indian processing and call centres and large numbers of staff off sick in Britain are making it difficult for banks to cope with a flood of customer inquiries.
- Daily Mail: The travel industry has accused Barclays of ‘strangling’ firms by demanding they hand over millions of pounds in case they collapse.
- The Times: The cost of transporting goods by air has soared because of cuts to passenger flights.