Ifo: German industry predicts summer-long production slump June 8, 2020 German factories’ coronavirus slump is set to continue throughout summer, though the drop in production will not be as steep, according to a key Ifo survey out today. The Ifo index of production survey showed Germany’s manufacturers believe their severe coronavirus downturn will continue until at least September. They predict a hit of minus 20.4 [...]
World shares rise as shock US jobs increase spurs recovery hopes June 8, 2020 World share prices edged higher on Monday after a surprise recovery in US employment provided optimism that economies could quickly recover after lockdown. Oil prices erased earlier gains to stand almost flat after OPEC and its allies, including Russia, agreed to extend record oil production cuts until the end of July. U.S. S&P 500 futures [...]
Coronavirus is a ‘devastating blow’ to the economy, says World Bank chief June 7, 2020 Coronavirus is a ‘devastating blow’ for the global economy, according to the president of the World Bank. David Malpass, an economist who has run the bank since last year, also said the fallout from the pandemic could last for a decade. Last month he warned that the coronavirus crisis could push 60m people into “extreme [...]
‘Mind-blowing’: US economy adds 2.5m jobs as states reopen June 5, 2020 The US unemployment rate has fallen significantly even as coronavirus ravages the economy, shocking economists who were expecting it to surge. The unemployment rate dropped to 13.3 per cent – still extremely high by historical standards – in May from 14.7 per cent in April. This confounded analysts who had predicted it would surge to [...]
BoE governor Andrew Bailey: Fiscal stimulus should keep climate change in mind June 5, 2020 Bank of England governor Andrew Bailey has said stimulus packages from governments to tackle the coronavirus fallout should improve sustainability so as to help tackle climate change. In an opinion article with former governor Mark Carney and other central bankers, Bailey said countries should “build back better” after coronavirus, with green goals in mind. Yet [...]
Chancellor picks Richard Hughes as next head of budget watchdog OBR June 5, 2020 Chancellor Rishi Sunak has nominated an International Monetary Fund (IMF) adviser and former government as the next head of the UK’s budget watchdog. Richard Hughes, who currently also works as a research associate at the Resolution Foundation think tank, said he was “honoured” to be picked as the next chair of the Office for Budget [...]
German factory orders plunge as global demand dries up June 5, 2020 German factory orders plunged in April at a much faster rate than expected as coronavirus hit the global economy and caused demand to dry up. Factory orders dropped 25.8 per cent in April compared to a month earlier, when they fell by 15 per cent. The figure was far below the 19.7 per cent contraction [...]
A pro-growth vision for the UK economy June 5, 2020 The UK needs a pro-growth economic policy. That is one of the key lessons likely to arise from this crisis. It is also the central message of a new report that I have co-authored for the think tank Policy Exchange. The pro-growth strategy should be based on three arrows: credible fiscal activism, monetary and financial [...]
Consumer confidence hovers near record low during coronavirus crisis June 5, 2020 Consumer confidence continued to teeter on the brink of hitting record lows during the ongoing coronavirus crisis. Consumer confidence dipped two points to minus 36, just three points above the record low of minus 39 reported in July 2018, as house prices fell and unemployment rose. However, GfK’s major purchase index rose six points, showing [...]
Scrap BoE’s two per cent inflation target, says think tank June 4, 2020 The Bank of England’s (BoE) two per cent inflation target should be scrapped and replaced with a four per cent nominal GDP target, a think tank has said. A Policy Exchange paper published tomorrow urges the government to consider temporary tax cuts to boost the economy after the pandemic. Some of the measures proposed include [...]