Bank of England to finance government borrowing during coronavirus crisis April 9, 2020 The Bank of England has agreed to temporarily finance government borrowing during the coronavirus crisis, a measure last used extensively during the financial crisis. The UK government normally borrows money via the issues of bonds to the market. The measure announced today gives the government more flexibility in raising cash quickly. “As a temporary measure, [...]
UK economy grew just 0.1 per cent before coronavirus lockdown April 9, 2020 The UK economy grew 0.1 per cent in the three months to February before the coronavirus lockdown hit businesses. The Office for National Statistics (ONS) data showed the increase was entirely down to the services sector. The tiny rise, which is measured on a three-month rolling basis, was a slight improvement on the three months [...]
Oil prices: Opec and Russia to discuss production cuts April 9, 2020 Opec and Russia will meet today to try to negotiate cuts to production cuts in a bid to address a drop in oil prices during the coronavirus crisis. Demand for fuel has plunged as much as 30 per cent after lockdowns and travel restrictions forced airlines to ground their plans and car usage slumped amid [...]
Coronavirus: German economy could shrink almost 10 per cent in second quarter April 8, 2020 The German economy is set to shrink at the fastest rate since at least 1970 in the second quarter as coronavirus containment measures cause a deep recession, some of the countries top think tanks have said. German GDP will fall by 9.8 per cent in the second quarter of the year, the biannual joint economic [...]
Robert Walters blames ‘savage’ coronavirus for UK profit hit April 8, 2020 Recruiter Robert Walters has bemoaned the “savage” economic impact of coronavirus as UK fee income slumped 29 per cent over the first quarter of 2020. The recruitment agency is seen as an economic bellwether and took a hit from Brexit uncertainty and the lead-up to December’s General Election in 2019. “It’s largely a hangover from [...]
Demand for UK bonds surges as government funds coronavirus spree April 7, 2020 Investor demand for UK government bonds was its highest for three years today as Britain sold £3.25bn worth of debt to help fund its unprecedented coronavirus support programmes. Buyers bid 3.05 times the £3.25bn available of the 0.125 per cent return three-year Gilt (UK government bond). It sold at an average yield of 0.204 per [...]
UK productivity shows weak growth before coronavirus hit April 7, 2020 UK productivity grew by 0.3 per cent year on year in the final quarter of 2019, official statistics have shown, marking relatively weak growth before coronavirus hit the economy. The figure was unchanged from the previous quarter but was an improvement from the previous four quarters of zero growth or contraction, the Office for National [...]
Coronavirus: Asian stocks rise as outbreak eases in Europe April 7, 2020 Asian stocks rose for a second day on signs that the coronavirus outbreak may be starting to recede in Europe and plateau in New York. Japan’s Nikkei rose 2.3 per cent, and this week has undone most of last week’s losses after prime minister Shinzo Abe promised a massive $991bn economic stimulus package due to [...]
Coronavirus and the economy: your questions answered April 6, 2020 | City Talk Chief Economist & Strategist Keith Wade chatted to us about coronavirus and its economic impact. Here are your nine questions answered. Q1: How do you think that the virus will affect the global economy? It is going to have a very significant impact. The virus could create a fall in GDP unlike anything that we [...]
UK construction sector has worst month since 2009 amid coronavirus lockdown April 6, 2020 UK construction sector output plunged at the fastest rate since the financial crisis in March as coronavirus containment measures shut down sites and caused new orders to slump, survey data has shown. The IHS Markit/Cips construction purchasing managers’ index (PMI) tumbled to 39.3 in March from 52.6 in February. This was the lowest since April [...]