Chancellor Rishi Sunak to announce wage bailout plan March 20, 2020 Chancellor Rishi Sunak is set to announce a massive wage bailout package today to battle the UK coronavirus outbreak. Business groups yesterday pressed the government to step in to help pay workers’ wages. They want protection for millions of jobs as the number of UK coronavirus cases spiked again. Britain’s death toll from coronavirus reached [...]
Bank of England cancels stress tests over coronavirus March 20, 2020 The Bank of England has cancelled this year’s stress test of major banks in Britain, saying it could be hard to implement new global capital rules while lenders are focused on supporting customer lending amid the coronavirus pandemic. The central bank’s decision to scrap the test of the UK’s eight top banks comes after the [...]
Coronavirus to spark “severe” global recession March 20, 2020 | City Talk The coronavirus is having a severe effect on global economic activity and amidst considerable uncertainty we have attempted to gauge the impact and updated our forecasts. We now expect to see the world economy contract this year by 3.1%, before rebounding by 7.2% in 2021. The forecast incorporates a severe recession in the first half [...]
Bank of England slashes rates to historic low amid coronavirus pandemic March 19, 2020 The Bank of England has slashed interest rates to a new record low and will pump £200bn into the economy through its quantitative easing (QE) bond-buying programme as it seeks to curb the effects of the coronavirus pandemic. The Bank today held an emergency meeting and cut its main rate by 15 basis (0.15 percentage [...]
Britons least optimistic about economy since 2008 financial crash March 19, 2020 Britons are the least optimistic they have been about the economy since 2008’s financial crash, a new survey by pollster Ipsos Mori has found. The new poll, which was conducted between 13 and 16 March, shows that 69 per cent of people think that the economy will get worse in the next 12 months. In [...]
Tory MPs attack Treasury’s coronavirus response and call for ‘radical’ measures March 19, 2020 Tory MPs have told the government to start paying British workers’ wages directly and to ramp up benefits payments “today”. Conservatives from across the party said the chancellor’s response to the economic fallout from coronavirus had not gone far enough and would not prevent mass unemployment. Former business secretary Greg Clark said in the House [...]
Economists: Germany must act as it ‘speeds’ towards coronavirus recession March 19, 2020 Germany, the European Union and the European Central Bank (ECB) must work together to take “massive and targeted” measures to prevent an economic collapse in the face of coronavirus, one of the country’s top think tanks has said. The Ifo Institute warned the German economy could shrink by a massive six per cent in 2020 [...]
Huge ECB stimulus programme pushes down Eurozone bond yields March 19, 2020 Bond yields have fallen across the Eurozone as investors and governments breathe a sigh of relief following the European Central Bank’s (ECB) decision to buy €750bn (£709bn) of assets in a huge programme to counter the economic effects of coronavirus. The yield is the amount the investor receives from a bond – government debt – [...]
How are the banks battling coronavirus? March 18, 2020 | City Talk As countries ramp up efforts to control the pandemic, the economic impact of Covid-19 is having an impact on currency values by creating a significant amount of market volatility. Typically when businesses are faced with large-scale uncertainty, the pound is volatile and the current situation with Covid-19 is adding pressure to currencies, including sterling. The [...]
DEBATE: Is now the time for the UK to trial a temporary Universal Basic Income? March 18, 2020 Is now the time for the UK to trial a temporary Universal Basic Income? YES, says Julian Jessop, an economics fellow at the Institute of Economic Affairs. In normal times, cash payments regardless of individual need would be too expensive, poorly targeted, and distortionary. It is therefore right to use existing means-tested benefits (notably universal [...]