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.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
The specs
Engine: 2x201bhp AC Permanent-magnetic electric
Transmission: n/a
Power: 402bhp
Torque: 659Nm
Price estimate: Dh200,000
On sale: Q3 2022
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
More coverage from the Future Forum
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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Who has been sanctioned?
Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
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'Moonshot'
Director: Chris Winterbauer
Stars: Lana Condor and Cole Sprouse
Rating: 3/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
