News in brief - 30 March 2020

THE UK MAY NOT RETURN TO NORMAL LIFE FOR SIX MONTHS

England's deputy chief medical officer Dr Jenny Harries has warned that it could be six months before life in the UK returns to normal and that the current national lockdown could be extended (BBC News). Meanwhile, the Centre for Economics and Business Research (CEBR) predicts that the pandemic will cause the UK economy to shrink by 15 per cent between April and June, the steepest contraction on record (Daily Mail, p2). The CEBR has said it expects the government to introduce measures to kick start consumer spending, such as a temporary VAT cut once the population returns to work (City A.M., online only).

The FT (£, p1) reports that the pandemic could strain asset managers? revenues and cash flow, and cause revenues and profits to decline, with the exchange traded fund (ETF) sector unlikely to resume its previous growth trajectory that has lasted for 11 consecutive years.

Separately, UK Finance's chief executive Stephen Jones has written a letter in the FT today (£, p22) to highlight what the banking and finance industry is doing to support customers and the wider economy through the Covid-19 pandemic.

The Financial Conduct Authority (FCA) is being asked to relax the rules on credit card repayments as part of a measure to help customers affected by the pandemic (FT, £).

Officials from the FCA will meet with the Bank of England (BoE) today to discuss measures and further support for customers and businesses impacted by Covid-19 (City A.M., online only).

UK FINANCE ISSUES A SCAM ALERT ON COVID-19 RELATED ?SMISHING? SCAMS

UK Finance has today issued a scam alert, warning consumers to be on the lookout for 'smishing? text message scams from criminals exploiting the coronavirus outbreak. The scam texts often claim to be from government departments, banks or other trusted organisations, offering payments related to the coronavirus outbreak or claiming to be issuing fines. UK Finance is urging consumers to avoid clicking on any links contained within text messages, and to always log into their bank account to update their information or make any legitimate payments.

Katy Worobec, Managing Director of Economic Crime, UK Finance, said:

?Criminals are callously exploiting the coronavirus outbreak to commit fraud, including using scam text messages imitating government departments, banks and other trusted organisations.

?We are urging consumers to remain vigilant and avoid clicking on links in any unsolicited text messages in case it's a scam.

?It's always safer to log into your bank account directly or contact the organisation on a trusted number or email such as the one on their official website.

?Always follow the advice of the Take Five to Stop Fraud campaign and take a moment to stop and think before parting with your money or information. If you receive a suspicious text message, report it to your network provider by forwarding it to 7726.?

NEWS IN BRIEF

Agustín Carstens, head of the Bank for International Settlements (BIS), has called for a global freeze on dividends in the sector following the announcement on Friday from the European Central Bank (ECB) that it is ordering eurozone lenders to cancel all dividends until at least October (The Times, £, p37).

The Governors and Heads of Supervision (GHOS) has said that it will give banks more time to implement pending capital rules, in order for them to focus on dealing with the coronavirus crisis (Reuters).

US president Donald Trump has extended social distancing guidelines in the US until the 30 April (BBC News).

European Central Bank's vice-president Luis de Guindos has said today that common EU bonds are not the only or the most effective instrument in the fight against the coronavirus (Reuters).

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