Will Bank of England boss Andrew Bailey reprieve bank dividends?

It’s almost a year since Andrew Bailey was named as the new Governor of the Bank of England. 

His Covid baptism of fire has made it an arduous first year, and the man nicknamed the ‘Big Sexy Turtle’ by predecessor Mark Carney has a tough decision looming. 

Banks expect an update this week or perhaps next on whether they will be allowed to restart handing out dividends after the Old Lady of Threadneedle Street banned payouts in March. 

Provisions for bad loans were not as large as feared in the banks’ recent results, suggesting they should have the cash to make the payments – if allowed. 

Expect shares in Lloyds, NatWest and the rest to get a lift if the green light shines. 

But with a bleak winter of company failures and job losses ahead, will the sight of banks handing huge sums to investors be an image Bailey can risk?

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Keep an eye on shares in Ocado this week as it updates on trading for the three months to the end of November. 

Analysts are confident the online grocer will post another leap in sales, and any detail on how consumer habits changed in the second lockdown from the first will be intriguing. 

The early signs are that a tie-up to deliver Marks & Spencer food is progressing well, but Christmas will be the venture’s first big test.

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Expect another play in the chess match to buy outsourcer G4S this week in a drama with as many moves as the popular Netflix series The Queen’s Gambit. 

Canada’s GardaWorld upped its hostile bid by 45p a share to £2.35 last week, leaving US suitor Allied Universal until Wednesday to lodge a formal offer. 

Sources in the Allied camp expressed surprise at how much Garda is willing to shell out – and a fresh round of discussions with its lenders has ensued as it weighs up the price. 

One said: ‘Given how much Garda has offered, shareholders will be keen to accept an offer rather than stick with the status quo. No deal is effectively off the table.’ 

Not a phrase we’re used to hearing from politicians of late… 

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Forthright BT boss Philip Jansen telephones (appropriately enough) the MoS offices after a welcome share price rally. 

Last week’s boost came from a speech by Ofcom chief Melanie Dawes, who said the regulator would not bring in price controls on full-fibre broadband until at least 2031. 

BT is spending £12 billion upgrading homes and Jansen wanted a longer delay to potential price caps, as it will take two decades for BT to make money from the project. 

Following the Ofcom statement, he’s worried the Government is going cold on the big broadband push. 

He says: ‘We are in danger of snatching defeat from the jaws of victory. ‘There’s no better silver bullet post-Covid than digital infrastructure.