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- Today's business and finance round up 14th May 2021
Today's business and finance round up 14th May 2021
Today's issue - Profits down but broadband investment up at BT 📞
14th May 2021
Good morning Happy Friday! What's the best way to get more people to take the Covid-19 vaccine? Show them the data on its effectiveness? Tell them they won't be able to socialise or travel unless they do? Well the US state of Ohio is incentivising people to get the jab by entering those that do into a lottery to win $1m.
Today's stories
Profits down but broadband investment up at BT
Blackrock prepares to enter China
Yesterday's market moves
FTSE 100 -0.6% 6,963 FTSE 250 -0.2% 22,069
It’s been a volatile week in the global stock markets with fears over the possibility of persistent inflation being the main talking point. US consumer prices shot up 4.2% in April that’s the biggest one-month jump since 2008. This was mainly due to supply chain issues and higher commodity prices. The Fed, the US central bank, have brushed it off as they believe it’s temporary. However the jury is still out amongst investors as to whether this is the case.The FTSE 100 had been as much as 2% down but recovered slightly to close down 0.6%, while the FTSE 250 was 0.2% lower.
Profits down but broadband investment up at BT
What’s going on
Like many companies 2020 was a tough year for BT, the UK’s biggest broadband and mobile provider. The company reported a 23% fall in profit to £1.8 billion with sales down 7% as a result of the pandemic. For example BT Sport revenue fell when sport was cancelled during the first lockdown, but couldn't really recover without pubs reopening.
Profits were also hit by a bonus for frontline staff and the continuing investment in the fibre network. BT says it is speeding up its rollout of full-fibre broadband to 5 million more households than previously planned in a move it says could create up to 7,000 jobs.
Why is this important
Tax changes mean that BT has more funds to build the next generation of digital infrastructure. By the end of 2026, it aims to have delivered full-fibre broadband connections to 25 million UK homes.
In welcome news to shareholders the company said that it will resume its dividend payment after suspending it last year.
BT also said it’s holding talks "to explore ways to generate investment" in BT Sport, which may mean a sale is on the cards.
Takeaway
During lockdown millions of us relied on the internet for work and entertainment creating a need for speedier connections. Fast internet is quickly becoming a modern necessity so BT’s announcement that it will accelerate the full-fibre broadband is definitely good news. But the UK is
.
Blackrock prepares to enter China
Blackrock, the world’s largest wealth manager, has been approved by regulators to enter the Chinese market. It will be operated via a joint venture with China Construction Bank and Singapore’s Temasek.
A few stats that show why Blackrock wants to do business in China:
China’s wealth management market grew 10% last year and is worth $18.9 trillion
There are 100 billionaires living in Beijing - more than any other city in the world
Private plane use is also soaring in China. Chartered jet trips there nearly doubled in the first quarter of 2021 compared to the same period in 2019.
Blackrock is the latest company to move into mainland China and take advantage of the growing savings and maturing markets as the financial system is deregulated.
China opened up its huge financial sector last April as part of an interim Sino-US trade deal.
Since then JP Morgan Chase and France’s Amundi have already waded into the nation’s huge economy.
Covid-19 Vaccine Update
In the past 24 hours 184k UK adults have had their first dose and 452k have had the second dose.
This means 68.2% of UK adults have had at least one dose of a vaccine, 35.9% of adults have had two doses.
Other stories to keep you in the loop
Burberry’s sales dented by Covid travel restrictions
Amazon to add 75,000 jobs for logistics in North America
28 year old Social Chain founder becomes youngest ever Dragon in Den
Barclays, Goldman Sachs and Morgan Stanley move senior bankers to the EU
Stat of the day
A study found that employees who have no friends at work are 45% less productive than those that do