British officials are looking at a model of state support used by the Thatcher government 40 years ago to support prominent UK businesses thrown into crisis by the coronavirus lockdown.
As Jaguar Land Rover Group (JLG) became the latest company to confirm it was in talks with officials over a rescue plan, consideration was being given to a new bailout vehicle that would offer convertible loans or take preferred equity in troubled national firms.
The approach was used during the economic downturn of the 1970s and 1980s and led to the wave of privatisation that cemented former prime minister Margaret Thatcher's reputation as a champion of capitalism.
Troubles at JLG are partly long-term and structural. Despite the successful launch of new electric models, the carmaker remains dependent on diesel engine vehicles for the bulk of its sales.
The company employs 38,000 staff in Britain and has used state support to furlough 18,000 members of its workforce.
Jim O'Neill, a former Goldman Sachs Asset Management chairman and government minister, told the Financial Times that £25 billion (Dh111bn) could be set aside for a new body to invest in inherently stable businesses.
"You convert into preferred equity on the assumption that some of these companies have a good future and then flog them – à la Margaret Thatcher," he said.
Philip Booth, an economist with the Institute of Economic Affairs, said the government would face the loss of all its investment if the business ended up going bust. However equity states would give the state much more control over parts of the economy, allowing bureaucrats to direct economic activity.
Other businesses in the industrial base that may need to tap support, include the airline engine-maker Rolls-Royce, aerospace firms and steel manufacturers. Airlines including Virgin Atlantic could be included in the scheme, which has been called Project Birch.
JLG rival Aston Martin has reacted to a collapse in sales with a management shake-up. Chief executive Andy Palmer, who led the launch of the DBX, a $189,000 (Dh700,000) SUV, is reportedly set to be replaced by Tobias Moers, the head of Daimler's Mercedes-AMG performance division. Mr Moers has an industry background in electric vehicles.
Preliminary figures from the industry group TheCityUK estimated earlier this month that unsustainable debt among British businesses was as high as £105bn before the crisis. It said the need for extra funding would grow through the shutdown.
"Faced with falling revenue and additional debt, business will require full-scale recapitalisation to alleviate the hit to employment and to sustain the investment required to put the economy back on its feet," the group said in a note to the Bank of England.
BoE governor Andrew Bailey has indicated the bank needs to go much further to embrace unorthodox policies to pull out of the Covid-19 slump. This could also include negative interest rates, for which he said he had changed his position "quite a bit".
Mr O'Neill, who is now chairman of the think tank Chatham House, has called for radical thinking, including the relief of student-incurred debt to refloat the economy after the downturn.
With both the government and the central bank talking up interventionist measures, the pound has come under pressure on foreign exchanges. Sterling was trading down, below 1.22 against the US dollar on Monday.
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Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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PAST 10 BRITISH GRAND PRIX WINNERS
2016 - Lewis Hamilton (Mercedes-GP)
2015 - Lewis Hamilton (Mercedes-GP)
2014 - Lewis Hamilton (Mercedes-GP)
2013 - Nico Rosberg (Mercedes-GP)
2012 - Mark Webber (Red Bull Racing)
2011 - Fernando Alonso (Ferrari)
2010 - Mark Webber (Red Bull Racing)
2009 - Sebastian Vettel (Red Bull Racing)
2008 - Lewis Hamilton (McLaren)
2007 - Kimi Raikkonen (Ferrari)
THE SPECS
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed dual clutch
Power: 710bhp
Torque: 770Nm
Speed: 0-100km/h 2.9 seconds
Top Speed: 340km/h
Price: Dh1,000,885
On sale: now
Results
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Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
Europe wide
Some of French groups are threatening Friday to continue their journey to Brussels, the capital of Belgium and the European Union, and to meet up with drivers from other countries on Monday.
Belgian authorities joined French police in banning the threatened blockade. A similar lorry cavalcade was planned for Friday in Vienna but cancelled after authorities prohibited it.
UAE currency: the story behind the money in your pockets
Know your cyber adversaries
Cryptojacking: Compromises a device or network to mine cryptocurrencies without an organisation's knowledge.
Distributed denial-of-service: Floods systems, servers or networks with information, effectively blocking them.
Man-in-the-middle attack: Intercepts two-way communication to obtain information, spy on participants or alter the outcome.
Malware: Installs itself in a network when a user clicks on a compromised link or email attachment.
Phishing: Aims to secure personal information, such as passwords and credit card numbers.
Ransomware: Encrypts user data, denying access and demands a payment to decrypt it.
Spyware: Collects information without the user's knowledge, which is then passed on to bad actors.
Trojans: Create a backdoor into systems, which becomes a point of entry for an attack.
Viruses: Infect applications in a system and replicate themselves as they go, just like their biological counterparts.
Worms: Send copies of themselves to other users or contacts. They don't attack the system, but they overload it.
Zero-day exploit: Exploits a vulnerability in software before a fix is found.
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Killing of Qassem Suleimani
Poland Statement
All people fleeing from Ukraine before the armed conflict are allowed to enter Poland. Our country shelters every person whose life is in danger - regardless of their nationality.
The dominant group of refugees in Poland are citizens of Ukraine, but among the people checked by the Border Guard are also citizens of the USA, Nigeria, India, Georgia and other countries.
All persons admitted to Poland are verified by the Border Guard. In relation to those who are in doubt, e.g. do not have documents, Border Guard officers apply appropriate checking procedures.
No person who has received refuge in Poland will be sent back to a country torn by war.
About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
The team
Videographer: Jear Velasquez
Photography: Romeo Perez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Models: Meti and Clinton at MMG
Video assistant: Zanong Maget
Social media: Fatima Al Mahmoud
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Company Profile
Founders: Tamara Hachem and Yazid Erman
Based: Dubai
Launched: September 2019
Sector: health technology
Stage: seed
Investors: Oman Technology Fund, angel investor and grants from Sharjah's Sheraa and Ma'an Abu Dhabi
'Munich: The Edge of War'
Director: Christian Schwochow
Starring: George MacKay, Jannis Niewohner, Jeremy Irons
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- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
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Mohammed bin Zayed Majlis
