Consumers on default tariffs paying by direct debit will, on average, see an increase of £693 from £1,277 to £1,971 per year. Consumers who use prepayment meters, meanwhile, can expect to see an increase of £708 from £1,309 to £2,017, on average.
The increase is set to impact around 22 million households in the UK that are on a default standard variable tariff, over which the price cap sets a limit. The new price cap, which comes into effect on April 1 and will remain in place for six months, is the highest since the cap on energy bills was introduced.
Meanwhile, across the channel, the French government is set to force state energy giant EDF to take an €8.4 billion hit to protect households from soaring energy costs by limiting bill increases to 4% this year.
On Friday, the EDF lost a fifth of its market value after the French government laid out its plan to cap rising energy bills. The government’s measures include forcing the energy giant to sell electricity generated by its fleet of nuclear reactors to rival home energy suppliers at prices significantly below the current record-high market prices.
There are no healthy people on a polluted planet. In particular, deforestation, the proximity between urban zones and wilderness, and the scarcity of certain animal species, are determining factors in the development of diseases that can be transmitted from animals to humans. As such, at a time of a pandemic requiring the confinement of half of humanity, it is appropriate to analyse this crisis through the lens of the 17 sustainable development goals of the United-Nations, which guide international efforts for a better and sustainable future for all.
Faced with the challenge of protecting the planet, and the effects of climate change in particular, it is essential to develop projects to restore and protect natural ecosystems. The goal is to rethink activities in the logic of a circular economy, to limit their negative impact on nature and to create sustainable wealth. The emergence of sustainable finance is vital for the transformation of the economy towards a low-carbon and inclusive model. Finance must become a tool for health, economic and social development. But how? Finance Monthly hears from Catherine Karyotis, Professor of Finance at France's NEOMA Business School and Anne-Claire Roux, Managing Director of Finance for Tomorrow.
Financial actors must re-invent their activity to support the projects and sectors of the ecological transition, serve the real economy, and preserve biodiversity for a sustainable planet. They must apply best practices to both anticipate transition risks and protect the value of assets, face new risks linked to the physical impacts of climate change, and adapt to regulatory changes. Ultimately, they must enable the transition of the economy to a low-carbon and inclusive model.
The ethics of an investor, a banker, a fund manager, or an insurer go beyond compliance: they have to know how to place their mission of in the present and future contexts, taking into account all economic, financial and ecological dimensions. They can take the opportunity to create wealth, or rather value. To this end, they must identify new sustainable opportunities and put a long-term perspective at the heart of their financing and investment strategies.
Financial actors must re-invent their activity to support the projects and sectors of the ecological transition, serve the real economy, and preserve biodiversity for a sustainable planet.
Already, the entire sector is developing its offers, practices and trade products. Actors are mobilising, initiatives are multiplying, and new professions specialised in sustainable finance are emerging within organizations. However, this paradigm shift will not be possible without expertise and new skills.
A financial analyst must master the accounting and extra-accounting instruments and documents to carry out a joint financial and extra-financial analysis, connecting one to the other and enabling financial policy decisions to be taken in the long term.
A risk manager must know how to assess financial risks in all their dimensions, ranging from credit risk to climate risk to health risk, to then cover them by using derivative markets for this objective, not aiming for speculative short-term gains.
As an asset manager must know how to "price" a bond. Why not do so for bonds labeled "green" or "sustainable"? Likewise, beyond socially responsible investing, how can ESG criteria be introduced into passive management, and how can we revise models by developing a green beta? If we talk about alternative investments, we can also integrate “green” or “adaptation” labels, as well as "green value" into wealth management and into particular real estate investments.
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France is at the forefront of green and sustainable finance. French financial players - whether private or public issuers, arrangers, or even extra-financial rating agencies - are the greatest specialists in "green bonds". They are pioneers in carbon accounting and the financing of natural capital. Collectively, the French financial sector constitutes a driving force for the development of sustainable finance internationally, through initiatives such as ‘Finance for Tomorrow’ and the ‘Climate Finance Day’, the ‘One Planet Summit’, or the ‘Network of Central Banks and Supervisors for Greening the Financial System’ (NGFS).
To strengthen this expertise and pass it on to the next generation of financial professionals, it is necessary to reinforce skills in sustainable finance. From an educational perspective, it is up to teachers and professionals in activity, to transmit to students the tools, which will allow them to reinvent the financial system for a secure, sustainable future.
In the aftermath of the COVID-19 pandemic more than ever, sustainable finance must become a tool for recovery and our students must become the future decision makers of a finance serving the real economy, society and the planet.
In the US, all 50 states have declared emergencies with governments at the local, state and federal level taking action to ease the financial burden on Americans. Trump’s administration and Congress agreed on a $2 trillion stimulus package, which includes income support of $1,200 per adult and $500 per child and starts phasing out for individuals who earn $75,000 per annum or $150,000 for couples. Loans worth $367 billion have been offered to small businesses struggling with the immediate drop in revenue due to the pandemic. The government will not expect the businesses to pay the money back if they manage to retain most of their employees over the next six months.
In the form of loans, loan guarantees and purchases of companies’ corporate debt, the legislation provides a total of $454 billion which will help large and medium-sized business access capital during the crisis. $58 billion have been set aside to help American airlines through loans and grants and $17 billion will be provided to help companies that are critical to maintaining national security.
In March, UK Chancellor Rishi Sunak announced a £350 billion emergency package for the economy[1] which consists of state loan guarantees worth £330 billion along with a further £20 billion of handouts for struggling businesses. He also promised £12 billion in emergency support in the budget, a one-year abolition of property taxes for all companies in affected sectors and suspended business rates for many firms.
The Chancellor also added a generous £9 billion scheme to support up to 3.8 million self-employed workers hit by the impact of the pandemic. 95% of the country’s self-employed people are able to access a grant of 80% of their recent average profit (capped at £2,500).
The government also announced a job retention scheme which offers compensation in full for employment costs of up to 80% of salary bills for workers that companies can’t provide work for, but are kept on payroll.
The German finance and economic ministers have vowed to make unlimited financing available to individuals and businesses as part of the country’s efforts to immunise Europe’s largest economy from the COVID-19 impact. The government promised that there will be no upper limit on the aid that will be offered to companies that are affected by the crisis.
The government has set aside a “supplementary” €156 billion budget for 2020[2], which includes a €50 billion plan to provide direct grants to small businesses and self-employed people who can’t access bank credit. Businesses with up to five employees are eligible for a one-off grant of €9,000 for three months, whilst those with up to ten employees will receive €15,000.
The government has also set up a €500 billion bailout fund to recapitalise big companies with more than 250 employees that face struggles due to the crisis. Landlords are also not allowed to evict tenants who fail to pay their rent due to the pandemic.
The country’s also expanding its programme of export credits and other additional guarantees to help struggling companies and has committed to deterring “billions of euros” in tax payments. Germany is also compensating individuals who are sent home by their employers due to the lack of work for them. The government anticipates that the scheme will cost the Federal Labour Office €10.05 billion.
Like many of his colleagues from across the globe, French President Emmanuel Macron has guaranteed that the French Government will offer unlimited support for individuals and companies that have been affected by the global pandemic, which will cost the country €45 billion. He’s also committed to offering grants to workers who have found themselves in unemployment due to the pandemic crisis. France’s Minister of the Economy and Finance has also promised €300 billion of French state guarantees for bank loans to companies, as well as €1 trillion of such guarantees from European institutions.
The government has also suggested the possible rescue of companies such as Air France, which have state shareholdings, and has deferred company tax and social security payments. It’s also offered sick leave payments to parents who have to stay at home to take care of their children due to school closures.
Economists have warned that the damage from the coronavirus crisis could be similar to that from the 2008 recession.
Italy has begun distributing funds from the fiscal rescue package, totalling up to €25 billion, promising that “nobody will be left alone”. €1.15 billion of this has been distributed to their health system and €1.5 billion has been offered to the civil protection agency, which has been working on Italy’s coronavirus response.
Additionally, self-employed people have been promised one-off payments of €500 per person, companies that pay redundancy payments to their employees have been offered support, there’s been a freeze on any worker lay-offs, and people who are still working during this time have been offered bonuses.
Businesses hit by the pandemic have been promised loan guarantees and a moratorium on loan and mortgage payments is expected to be put in place. Financial support will be offered to families with children, as well as taxi drivers and postal workers who have to continue working during lockdown. The government also announced plans to financially support Italian airline Alitalia.
Spanish Prime Minister Pedro Sánchez has described the government’s coronavirus rescue package as the “biggest mobilisation of resources in Spain’s democratic history”. It includes €100 billion of state loan guarantees for companies aimed at ensuring liquidity, specifically for small and medium-sized companies. The whole package will amount to €200 billion.
Mr Sánchez has also announced a moratorium on mortgage payments for people who have been hit hard by the pandemic and a similar moratorium for utility bills. He’s also suspended some social security payments and has set aside €600 million to help people who depend on social services.
[1] https://news.sky.com/story/coronavirus-330bn-of-government-backed-loans-for-businesses-11959156
[2] https://www.ft.com/content/26af5520-6793-11ea-800d-da70cff6e4d3
Famous worldwide as a leading destination for wine tourism, Colmar offers more than just wine! With its cobblestone streets, markets, festivals, scrumptious food and picturesque buildings, Colmar promises to quickly become one of your favourite French towns!
Where to stay?
For a true taste of Colmar, stay at La Maison des Têtes. Housed in a lavish 17th-century mansion, it offers chic rooms, creatively prepared food and unmatched luxury.
What to do?
Visit Unterlinden Museum, La Petite Venise, the numerous amazing châteaus in the area (don’t miss Château du Hohlandsbourg which dates back to the 13th century), and obviously - drink all the wine.
Although it’s the capital of Greece, Athens is not necessarily the first destination that springs to mind when thinking about a holiday to the land of quaint island villages of squashed-together white houses, olive trees and endless sunshine. However, with its vibrant streets, ancient wonders, booming art scene and electrifying nightlife, Athens is definitely a city worth adding to your travel bucket list.
Where to stay?
Located in close proximity to the Acropolis and Plaka (the Old Town), AthensWas Hotel is a boutique hotel offering amazing views, modern decor and five-star luxury.
What to do?
Visit the Acropolis, the Pantheon, wander the streets of Plaka and Monastiraki and indulge in all the feta cheese and dips Greece is famous for.
Named European Capital of Culture for 2020, Rijeka is Croatia’s third biggest city and is the perfect answer to those who don’t want to have to choose between a beach holiday or a city break. Combining history, pretty beaches and trendy restaurants, Rijeka is the ideal destination for travellers who have toured all major European cities and are looking to experience something different.
Where to stay?
Hotel Bonavia Plava Laguna benefits from a super central location and offers everything you could desire!
What to do?
Visit Trsat for breathtaking views of the city and Kvarner Bay, go to The Peek and Poke Museum, go shopping on Korzo and don’t forget to check what exhibitions, shows and concerts are on this year before your visit.
The second biggest city in Bulgaria and the oldest continuously inhabited town in Europe, Plovdiv is an ancient city built around 7 hills, which offers a lot to history and art lovers! With its history, architecture, funky bars and restaurants and delicious Bulgarian cuisine, Plovdiv will be sure to exceed your expectations.
Where to stay?
Residence City Garden Hotel is a stunning five-star hotel close to central Plovdiv, which guarantees elegant decors, fine dining and utmost luxury.
What to do?
Visit the Ancient Theater of Philippopolis, the Regional Ethnographic Museum and the Old Town. The vibrant Kapana District is the best place for a drink and a meal after a day of exploring Plovdiv’s colourful streets.
England might not have made it to the final, which saw France and Croatia square up and France victorious, but the real winner of the 2018 FIFA World Cup has been Russia. The nation has seen a major boost in tourism interest, from the UK in particular, during the monumental tournament, reports CheapOair.co.uk.
During the first week of the football tournament, CheapOair.co.uk saw a major uplift in its flight searches to the host nation as figures came in 232% higher than the average weekly search volume. This momentum continued the following week, 17-23 June 2018, as the average weekly number of searches Brits made had peaked at 227%.
Similarly, throughout the pre-event build-up the flight search windows between 11-17 March and 18-24 March 2018 saw a significant increase, as potential bookers were searching 182% and 160% higher than the average weekly search volume.
This goes to show that the football fixtures were not only a cause for celebration amongst football fans but also for the Russian economy, as businesses in its numerous host cities for the games have benefited from an influx in British tourists.
(Source: CheapOair)
In light of Donald Trump’s dramatic withdrawal from the Iran Nuclear Deal, Katina Hristova examines how the pullout can affect the global economy.
As with anything that he isn’t fond of, US President Donald Trump hasn’t been hiding his feelings towards the Joint Comprehensive Plan of Action between Iran and the five permanent members of The United Nations Security Council plus Germany. Pulling the US out of the agreement on the nuclear programme of Iran, which was signed during Obama's time in office, is something that Trump has been threatening to do since his 2016 election campaign. And he’s only gone and done it. Earlier this month, he announced America’s immediate withdrawal, saying that the US will reimpose sweeping sanctions on Iran’s oil sector and that “Any nation that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States”. And as if this isn’t alarming enough, President Trump has also said that the US will require companies to ‘wind down’ existing contracts with Iran, which currently ranks second in the world in natural gas reserves and fourth in proven crude oil reserve, in either 90 days or 180 days. This would hinder new contracts with Iran, as well as any business operations in the country.
Since Washington’s announcement, signatories of the Iran Nuclear Deal, still committed to the agreement, have embarked on a diplomatic marathon to keep the deal alive. On 25 May, Iran, France, Britain, Germany, China and Russia met in Vienna in a bid to save the agreement.
So how will this hurt the global economy?
Deals worth billions of dollars signed by international companies with Iran are currently hanging by a thread. The main concern on a global scale is that the US’ decision threatens to cut off a proportion of the world’s crude oil supply, which has already resulted in an increase in oil prices, with crude topping $70 a barrel for the first time in four years.
Additionally, European companies like Airbus, Total, Renault and Siemens could face fines if they continue doing business with Iran. Royal Dutch Shell, who is investing in the Iranian energy sector, is potentially one of the biggest companies to be affected by Trump’s withdrawal which could put billions of dollars’ worth of trade in jeopardy. As The Guardian points out: “In December 2016, Royal Dutch Shell signed a provisional agreement to develop the Iranian oil and gas fields in South Azadegan, Yadavaran and Kish. While drilling is still a long way off, sanctions are likely to put any preparations already being made on ice.”
French company Total, who’s involved in developing the South Pars field, the world’s largest gas field in Iran, is in a similar situation.
Airbus and Boeing, two of the key players in the international aviation industry, have signed contracts worth $39 billion to sell aircraft to Iran. As The Guardian reports, the most significant deal is an agreement by IranAir to buy 100 aircraft from Airbus.
A spokesman from Airbus said that jobs would not be affected. “Our [order] backlog stands at more than 7,100 aircraft, this translates into some nine years of production at current rates. We’re carefully analysing the announcement and will be evaluating next steps consistent with our internal policies and in full compliance with sanctions and export control regulations. This will take some time”. Rolls Royce is also expected to be indirectly affected if Airbus loses its IranAir order, as the company is the key engines provider to many of those aircraft models.
Another European company that will be hurt by the sanctions announcement is French Renault and PSA, who owns Peugeot, Citroën and Vauxhall. When sanctions were lifted back in 2016, Renault signed a joint venture agreement with the Industrial Development & Renovation Organization of Iran (IDRO) and local vehicle importer Parto Negin Naseh, worth $778 million, to make up to 150,000 cars in Iran every year. This is one of the largest non-oil deals in Iran since sanctions on the country were lifted. Last year, local firm Iran Khodro also signed a deal with the trucks division of Mercedes-Benz, with car production scheduled for this year.
Iranian firm HiWEB has been working alongside Vodafone to modernise the country’s internet infrastructure, but it looks like the partnership will have to be reconsidered.
The consequences
The White House and President Trump appear aware of the danger that a rise in oil prices on an international level pose to the economic growth of the Trump era, however, they also seem ready to embrace the economic and geopolitical challenges that are to follow. Although the consequences of US’ Iran Deal pullout are not perfectly clear in the short term, they will undoubtedly become more visible as sanctions take effect. The deal has its flaws, however, completely withdrawing from it and threatening the US’ closest allies can only compound those issues and create new ones. It is hard to predict what will unfold from here and where Trump’s strategy will take us. The one thing that is certain though is that the world doesn’t need more hostility.
Investors should expect an increase in market volatility and ensure that they are properly diversified, warns the senior analyst at deVere Group.
The warning from Tom Elliott, International Investment Strategist at deVere Group, comes as US President Donald Trump announced Tuesday that the United States will exit the Iran nuclear deal and impose “powerful” sanctions.
Mr Elliott comments: “Investors should expect an increase in market volatility following Trump’s announcement that he is quitting the Iran nuclear deal.
“There will be global stock market sell-offs as the world adjusts to the news.”
He continues: “Due to the severity of the US President’s approach, in the shorter term at least it is likely gold and the US dollar may rally on growing fears of further conflicts in the Middle East breaking out; and risk assets, namely stocks and credit markets, may weaken. Oil may rally strongly.
“We will need to wait for the full Iranian response. However, I expect that they will try to continue to appear the reasonable partner and work with Russia and the Europeans, playing them off against the US If they take a more aggressive stance, oil, gold and the dollar will go considerably higher.”
Mr Elliott concludes: “Geopolitical events such as these underscore how essential it is for investors to always ensure that they are properly diversified - this includes across asset classes, sectors and geographical regions – to mitigate potential risks to their investment returns.”
Total, the French supermajor, has now acquired Maersk Oil, a Danish oil and gas firm, becoming the second biggest North Sea operator.
The $7.45 billion (£6 billion) deal is the biggest North sea deal in the last ten years, and stands out given most oil and gas firms are currently retreating from UK waters.
According to the Telegraph, Patrick Pouyanne, Total’s chief executive and chairman, described the takeover as an “exceptional opportunity” for Total to gain high quality assets that fit with the group’s core regions.
Rebecca O'Keeffe, Head of Investment at Interactive Investor comments for Finance Monthly: “The deal announced this morning between Total and Maersk Oil and completion of the Rosneft and Essar Oil deal confirm how Big Oil is having to look to consolidation to achieve access to additional capacity outside the US, having failed to invest in new production over the past few years.
"The collapse in oil prices from over $100 per barrel in May 2014 to under $30 in January 2016 forced oil companies to cut their spending to the bone and these decisions dramatically reduced future production. However, with a moderate recovery in oil prices and a significant improvement in cash flows, oil majors are on the prowl, looking to buy assets to improve production levels and deliver excess returns and profits.”
Business insurance firm Hiscox recently produced a resource that might be useful for businesses pre- and post-Brexit. It is a side-by-side comparison table of the UK, France and Germany and displays how easy it is to do business in each country.
It features all the main tax rates, employment laws, costs and incentives in each of the three biggest economies. The resource is designed for those businesses in the UK considering relocating to an EU country after Brexit.
You can view the full table in a pdf here.
(Source: Hiscox)
The Mayor of London, Sadiq Khan, and the Mayor of Paris, Anne Hidalgo, recently announced new business and tourism collaborations to attract international visitors to both cities and help companies based in London and Paris to expand into new international markets.
The agreement will, for the first time, jointly showcase London and Paris to overseas visitors, while a new initiative called the Paris-London Business Welcome Programme will encourage and facilitate the flow of trade and investment between the two cities.
The announcement comes just one day before the UK government triggers Article 50, beginning the formal process of withdrawing the UK from the European Union.
The cities of Paris and London have made a choice to focus on constructive alliance, rather than competition. Since the EU referendum the two cities have been working to facilitate the joint domiciliation of companies in London and Paris, to ensure that entrepreneurs are able to develop their business in both markets.
The Mayor of London, Sadiq Khan, said: "London and Paris are two of the greatest cities in the world and we have so much to gain from joining forces. Never underestimate the incredible benefits to be found when major cities do business together. Our great friends in Paris and across the continent are well aware that working closely together remains to our mutual benefit."
The Mayor of Paris, Anne Hidalgo, said: "Paris and London share common values and willpower. We want to be attractive to companies all over the world. Since the election of Sadiq, our two cities have been working better together. We are developing new exchanges and new projects. All these initiatives will create employment, activity and economic growth. It is a very positive dynamic that the Brexit will not change."
Developing tourist exchanges between the two cities
Visitors to London and Paris spend in excess of £30bn (34 billion Euros) per year and the tourism economy in both cities supports 1.2million jobs.
The tourism agreement, which will launch in 2018, will focus on key drivers for international visitors to both cities, such as culture and heritage, and combine the resources of VisitLondon.com and Parisinfo.com.
An ambitious partnership for start-up exchanges
The Paris-London Business Welcome will build on both cities' business strengths and follows a statement last year from both Mayors that Paris and London would work more closely together to make the London-Paris' 'win-win partnership' even stronger.
The Paris-London Business Welcome programme will include assistance with company set-up, access to co-working space, introduction to the local tech ecosystem and networking, and discounted accommodation. Eurostar will also provide entrepreneurs with preferential rates on their services.
A common economic dynamic
London receives more inward investment from Paris than any other global city, attracting £2.6bn and generating almost 10,000 jobs over the last ten years. Paris, in comparison, is the largest European destination for foreign direct investment from London. Since January 2006, over 160 London-based companies have set up in Paris, creating 7,500 jobs in the city.
As part of the Mayor's International Business Programme, Sadiq was accompanied by a trade delegation of 15 of London's fastest growing companies on his visit to Paris. The companies were given the opportunity to showcase their innovations, meet with leading investors and explore export opportunities in the city.
(Source: londonandpartners.com)
France cut its budget deficit target for 2015 and announced that this year’s economic growth could beat the government’s 1% forecast, as the country posted a smaller than expected fiscal gap for 2014.
Statistics office INSEE announced that the budget gap dropped to 4% of economic output in 2014 from 4.1% in 2013, signalling economic recovery is underway.
The data "paves the way for a revision of the 2015 public deficit to about 3.8% of GDP," Finance Minister Michel Sapin said in a statement.
The euro zone's second biggest economy, France’s economy grew by 0.4% in 2014, the same rate of growth as see in 2013. Sapin is predicting a 1% growth for 2014.
However, France needs to take further steps to bring its economy in line, with European Union finance ministers stating this month that they had given France two more years to cut the deficit to the 3% limit.
For most of the small- and large-scale businesses, choosing the best services and products is a challenging task which can be accomplished after a lot of hard work and concentration. However, in a call center landscape, things get a little easier. Because there are only a few of the software that can help increase productivity and maximize ROI.
Especially in case of outbound call centers, where agents are focused on sales and conversions rather than dealing with customer support only. To ease that process, the auto-dialer is the best software that can help generate maximum sales by dialing thousands of calls simultaneously and bypass busy or disconnected numbers.
But the problem is, people often feel confused between choosing the best auto dialer software for their business which is specifically customized according to latest features and solutions.
So, if you are in a process of searching the best auto dialer and want some reliable way to optimize and increase call rates immediately, then you need to develop an efficient understanding of auto dialers.
In order to choose the right auto dialer software for your call center, it’s important to have a complete understanding and knowledge of your customer base. For example, do you have a large or small customer base? Are your customers located in the same area? Or are they living across different countries? In case if you have a large customer base, then predictive dialer might be a good option for you. But if your customer base is small, then preview dialer is a right pick for you. Answering such types of questions help you make the right decision that suits according to your business needs.
To choose the best auto dialer, it’s better to decide on some useful features you need for your auto dialer software. So, when you make a complete list of all the features you need for your business, then you might be able to find the solution that is according to your call center needs. For example, if you are looking for an auto dialer solution which has capabilities of IVR, contact list management, campaign scheduling, voicemail detection, etc. then you can easily rely on the solution as these features may take your call center business to the next level.
It’s most important to choose an auto dialer which is user-friendly and have more easy features to learn & train. Being a call center owner, the last thing you would want is to waste your time money and time on training new agents about using complicated features of your auto dialer software.
If you have only 2, or 3 persons in your call center, then probably, you don’t need to use a predictive dialer or power dialer solution; if you do this, you would simply waste your time and money. Auto dialer works well in both situations, whether you have a small number of people or large. Calls can be dialed automatically and connect agents with live users.
A great service provider always helps you before and after the sale, and help you provide the right solution according to your requirements. In case if you think these are the factors that can help you select the best auto dialer, then consulting with the professionals of VT dialer can offer great assistance in cost-effective solutions.