Merkel’s coalition secures €130bn coronavirus stimulus package June 4, 2020 Chancellor Angela Merkel’s coalition government last night agreed a bumper €130bn (£116bn) stimulus package to boost Germany’s economic recovery from coronavirus. Speaking to reporters after marathon talks, Merkel said the wide-ranging package would include lower value-added tax (VAT) to boost consumption. “The size of the package will amount to €130bn for the years 2020/2021, €120bn [...]
UK government announces £10bn trade credit insurance scheme June 4, 2020 The UK government has said it will guarantee up to £10bn of trade credit insurance transactions as it seeks to relieve some pressure on British manufacturers and construction firms amid the coronavirus pandemic. The new scheme will be temporary, backdated to 1 April and run until 31 December this year, the Department for Business, Energy [...]
Green shoots: Four charts that suggest the worst is over for the UK economy June 4, 2020 The UK economy suffered its worst month in living memory in April, but there are tentative signs that things began improving in May as coronavirus restrictions were gradually lifted. “The government’s plans for a progressive opening up of non-essential stores in June suggest that the low point for the economy is behind us,” said Ruth [...]
Boris Johnson tells UK to brace for mass unemployment June 3, 2020 Boris Johnson has warned of “many, many job losses” after the coronavirus crisis and has pledged to invest in retraining the UK’s young people. The Prime Minister said high levels of unemployment, as a result of the crisis, was “inevitable” and that his government would be “activist and interventionist” in dealing with job losses. The [...]
Decline eases in US services sector but economy stays in rut June 3, 2020 The decline in the US services sector eased somewhat in May, survey data has shown, but the dominant part of the economy remained stuck in a downturn. The closely watched purchasing managers’ index (PMI) gauge from the Institute for Supply Management (ISM) came in at 45.4 in May. That compared to the sharp plunge to [...]
BoE’s Andrew Bailey tells UK banks to up preparations for no-deal Brexit June 3, 2020 Bank of England governor Andrew Bailey has reportedly told UK banks to ramp up their preparations for a no-deal Brexit as the UK sticks to its target to strike a deal before the end of the year. Bailey told British lenders to accelerate their planning for a no-deal Brexit scenario in a call yesterday, according [...]
Eurozone unemployment creeps up in April amid Covid-19 lockdown June 3, 2020 Eurozone unemployment hit 7.3 per cent in April as the coronavirus crisis took its toll on economies across the bloc. The figure was an increase on the 7.1 per cent unemployment rate recorded in March but was below forecasts of 8.2 per cent. The EU unemployment rate was 6.6 per cent in April, up from [...]
UK services sector gauge picks up but economic gloom continues June 3, 2020 A closely watched gauge of the UK services sector picked up in May, although the dominant section of the economy remained severely depressed as coronavirus restrictions were largely held in place. The IHS Markit/Cips services purchasing managers’ index (PMI) came in at 29 in May, up from the record low of 13.4 in April. Today’s [...]
Eurozone’s economic crash eases in May but area remains depressed June 3, 2020 The Eurozone’s private sector showed some tentative signs of recovery but still remained mired in a deep downturn in May, survey data has shown. The IHS Markit composite purchasing managers’ index (PMI), a closely watched guide to the economy’s health, rose to 31.9 in May from a record low of 13.6 in April. May’s reading [...]
UK coronavirus loans top £31bn but just half of CBILs approved June 2, 2020 UK businesses have borrowed £31bn from banks through the government’s coronavirus loan scheme, but the approval rate on its flagship CBILs programme is still languishing at around 50 per cent. Figures released today showed that the three main coronavirus loan schemes have helped firms access £31.3bn. The bulk has been through the “bounce-back” loan scheme, [...]