The Wodge: can London’s tallest new skyscraper survive the Covid era?

Nicknamed The Wodge because of its girth, the capital’s tallest ever office has just muscled onto the skyline. But in the age of coronavirus, who wants to jostle for 60 lifts with 12,000 others?

With the City of London deserted once more, its streets only populated by the occasional Deliveroo driver or tumbleweed-seeking photographer, it seems a strange time to be completing the largest office building the capital has ever seen, not least because the very future of the workplace is now in question.

But, rising far above the Cheesegrater and the Walkie-Talkie, dwarfing the now fun-sized Gherkin and boasting the floor area of almost all three combined, 22 Bishopsgate stands as the mother of all office towers. It is the City’s menacing final boss, a glacial hulk that fills its plot to the very edges and rises directly up until it hits the flight path of passing jets. The building muscles into every panorama of London, its broad girth dominating the centre of the skyline and congealing the Square Mile’s distinctive individual silhouettes into one great, grey lump.

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Is ‘hysterical’ market speculation pushing us towards another crash?

Despite Covid, global stocks started 2021 on a high. But some analysts warn of an ‘epic’ bubble, amid fears that the flow of stimulus has created a monster

Insurrections are not usually seen by investors as buy signals. Yet even as rioters stormed the seat of US legislative government last week, stock market indices hit new highs in New York, adding another chapter to 12 months of apparent defiance of economic gravity.

Wall Street, measured by the benchmark S&P 500, was not alone in starting 2021 with a bang. London’s FTSE 100 jumped by more than 6% in the first week of the year as investors took in a heady cocktail of a President Joe Biden ready and able to spend money, cheap borrowing costs, and the hopes that vaccines will end the coronavirus lockdowns. Yet amid the exuberance a serious concern looms: are we on the cusp of another colossal crash?

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Ebullient analysts predict markets will weather the storm in 2021

Some forecasters, buoyed by the success of big tech and vaccines, are predicting 10‑15% gains

The new year is traditionally a time for looking forwards, for hopeful resolutions, for celebrating. But for economists and investors, the annual forecasts for 2021 might be something of a painful reminder of exactly how much they failed to foresee.

The pandemic quickly made a mockery of all projections. An entertaining analysis of US chief executives’ statements during 2020 by data company Sentieo for the New York Times showed a 70,000% year-on-year rise in the use of “unprecedented”, while “humbled” tripled – perhaps code for “it wasn’t my fault, so you should still pay me the same”. To be fair, though, in March it really did feel like nobody had a clue what to do – even governments, who are meant to have “pandemic” firmly on their risk radars.

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Sunak suggests EU access for financial services will exceed Brexit deal

Chancellor aims to firm up agreements that would allow institutions to trade as if still in EU

Rishi Sunak has offered financial services firms the prospect of closer access to EU markets than outlined in the Brexit trade deal, after Boris Johnson conceded that this aspect of the agreement fell short of UK hopes.

With MPs and experts still poring over the 1,246-page details of the agreement ahead of votes in the Commons and Lords on Wednesday, increasing focus has fallen on the relative lack of provision for the service sector, which makes up about 80% of the UK economy.

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Going for a song: why music legends are lining up to sell their rights

Stars follow Bob Dylan’s lead as streaming boom and Covid-19 upheaval fuels gold rush in song rights

Bob Dylan just made more than $300m (£227m) doing it, Dolly Parton says she might do the same, while the singer-songwriter David Crosby says he is being forced to do it. Musicians are queuing up for big paydays by selling the publishing rights to their songs, as the streaming boom and industry upheaval wrought by the Covid-19 pandemic redefines the economics of music.

Dylan’s surprise move this week to sell the publishing rights to his 600 songs, from Blowin’ in the Wind to Knockin’ on Heaven’s Door, was described by the buyer, Universal Music, as one of the most important deals of all time. 

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Failure to seal post-Brexit deal would more than halve UK growth, says KPMG

Accountancy firm warns of stalled economic recovery without EU trade agreement

Failure to strike a post-Brexit trade deal would cut the UK’s economic growth rate by more than half next year, delaying a full recovery from the coronavirus pandemic, according to a report.

The accountancy firm KPMG said the economy would suffer heavily should the UK fail to secure a trade deal with the EU before the end of the Brexit transition period at the end of December, just as the country attempts to escape the deepest recession since records began.

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Nearly 75% of City firms reviewing office space provision

Rise in home working during the pandemic means many companies are assessing their needs

Nearly three-quarters of City firms are reviewing how much office space they really need following a boom in home working during the pandemic, new research shows.

The latest CBI/PwC financial services survey found 74% of companies – particularly banks and insurance firms – have been taking stock of their office requirements in the hope of either using the space differently, or reducing it.

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Tale of two Cities: FTSE 100 rises despite economic collapse

Surge in shares contrasts with Covid-related downturn and growing unemployment

The economic collapse in Britain during the second quarter of 2020 was the most brutal on record. Unemployment is forecast by the Bank of England to soar to 2.5m by Christmas. The Brexit cliff edge approaches. Yet in the City, the FTSE 100 has been on the up.

Never has the disconnect between financial trading and economic fundamentals appeared so extreme. What explains surging asset prices (the FTSE jumped 2% on the same day it was revealed the economy had slumped by 20%) when the outlook for many workers is so grim?

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Stock markets boom as hopes rise for US economic stimulus and Covid-19 vaccine

S&P edges towards all-time record with oil prices and hospitality stocks rising as investor optimism rebounds

US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.

The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.

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Investors drop Brazil meat giant JBS

Top investment house delists world biggest meat producer over lack of commitment to sustainability issues

The investment arm of northern Europe’s largest financial services group has dropped JBS, the world’s biggest meat processer, from its portfolio. The Brazilian company is now excluded from assets sold by Nordea Asset Management, which controls a €230bn (£210bn) fund, according to Eric Pedersen, its head of responsible investments.

The decision was taken about a month ago, over the meat giant’s links to farms involved in Amazon deforestation, its response to the Covid-19 outbreak, past corruption scandals, and frustrations over engagement with the company on such issues. “The exclusion of JBS is quite dramatic for us because it is from all of our funds, not just the ones labelled ESG,” Pedersen said.

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Britain and Brussels turn on each other for prolonging City’s uncertainty

Deadline to agree regulatory equivalence for financial services and allow business after Brexit likely to be missed

Britain and Brussels have each accused the other of holding up a decision on the City of London’s ability to do business in EU markets from next year, prolonging the financial services’ state of uncertainty about the future.

Both parties had agreed to complete assessments of the other’s regulatory regimes for financial services by Tuesday 30 June, with the expectation that they would deemed “equivalent”, allowing business to continue in the new year.

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Global stock market rally is a gamble, IMF warns investors

Report identifies gap between market optimism and depressed state of economies

The global stock market rally represents a gamble by investors that central banks will ignore the risks of a buildup in debt and continue to provide support at the current record levels, the International Monetary Fund has warned.

In an update to its half-yearly global financial stability report, the IMF said central banks had been pivotal in the recovery of share prices from their Covid-19 trough but there was now a gap between the optimism of financial markets and the depressed state of economies.

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Amanda Staveley in tears as Barclays lawyer accuses her of ‘hustle’

Businesswoman is seeking £1.5bn from bank in high court action over £2bn Qatari loan

A businesswoman embroiled in a £1.5bn high court battle with Barclays broke down in tears after bank bosses accused her of engaging in a “hustle”.

Amanda Staveley has made complaints about bank bosses’ behaviour when negotiating investment deals during the 2008 financial crisis.

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Barclays, HSBC and Lloyds among UK banks that had links to slavery

Many bank directors received compensation after slavery was made illegal in 1833

The slave trade was abolished in the British Empire in 1807 but it was not until 1833 that the Slavery Abolition Act finally banned the ownership of other human beings. However, 46,000 slave owners continued to benefit financially as the subsequent Slave Compensation Act provided £20m in payments – a sum worth billions in 2020 terms. Despite the name of the act, the former slaves were not compensated.

University College London’s Legacies of British Slave Ownership project shows that 10% to 20% of Britain’s wealthy can be identified as having had significant links to slavery. The amount of money borrowed to pay off slave owners was so large that the government only repaid it fully in 2015. Companies with links to slavery in their past include:

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EY ordered to pay whistleblower $11m in Dubai gold audit case

Court rules accountancy firm breached code of ethics in its dealings with a refiner

A former partner at the accounting firm EY has been awarded $10.8m (£8.6m) in damages after being forced out of his job when he exposed professional misconduct during an audit of a Dubai gold refiner.

The high court in London ruled on Friday that EY had repeatedly breached the code of ethics for professional accountants in its dealings with one of its clients, Kaloti Jewellery International.

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Former London bankers convicted after Germany’s ‘greatest tax robbery’

First case of its kind sheds light on complex fraud known as cum-ex trading

Two former London bankers were handed suspended jail terms and one a €14m fine for tax fraud in a landmark trial that is likely to unleash dozens of similar cases across Germany.

The ruling is the first criminal conviction for what the judge, Roland Zickler, called “a collective case of thievery from state coffers”.

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Peacetime constraints ditched in the war for economic survival | Larry Elliott

The Covid-19 outbreak is forcing politicians and central bankers to set aside ideology and orthodoxy to prevent a global collapse

It is as if the lights have been switched off. The global economy has been plunged into darkness as countries hunker down in response to the Covid-19 pandemic.

Most recessions develop gradually over time. When the last one started in 2008 it took the Bank of England six months to spot it. This time it is different. Then it was a financial virus, this time it is the real thing. Commentators often say the economy is hitting the wall or is falling off a cliff on the weakest of evidence. Today the cliches are horrifyingly true.

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Tidjane Thiam: the man who traded politics for finance after military coup

Ousted Credit Suisse chief transformed Prudential before City regulator censured him

Tidjane Thiam is the scion of an influential family whose political connections and history spread across two West African countries: Ivory Coast and Senegal.

The 57-year-old came to prominence in the UK when he was named as the head of Prudential in 2009, making him the first black chief executive of a major British company.

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Heads could roll at PwC over Isabel dos Santos links, says chairman

Exclusive: Bob Moritz says he is ‘shocked and disappointed’ by Luanda Leaks disclosures

The global chairman of PwC has warned that heads could roll at the professional services firm over its links to Isabel dos Santos, Africa’s richest woman, who is battling allegations that she obtained her wealth through corruption and nepotism.

Bob Moritz, whose firm advised companies belonging to Dos Santos and her husband across multiple jurisdictions, told the Guardian he was “shocked and disappointed” by recent disclosures about the British-headquartered accounting firm’s work for the daughter of Angola’s former president.

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EU trade chief foresees ‘financial services for fishing’ Brexit bargain

Commissioner says Europe will seek fishery access and UK will want concessions for City

The EU’s trade commissioner has suggested there could be a last-minute trade-off with Brussels offering the City of London access to European markets in return for European fleets retaining their fishing rights in British waters.

The UK’s financial services sector will lose its automatic right to serve Europe-based clients at the end of the transition period and the EU will need to negotiate access to UK waters for its fishing boats.

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