UK services sector ‘close to stalling’ as coronavirus cases surge November 4, 2020 The recovery in the UK services sector slowed sharply in October as a surge in coronavirus cases and new restrictions knocked the economy, a survey has shown. The IHS Markit/Cips services purchasing managers’ index (PMI) – a closely followed measure of the sector’s health – fell to 51.4 in October, down heavily from 56.1 a [...]
Four things to watch as the Bank of England sets interest rates November 4, 2020 The Bank of England’s group of interest rate-setters will announce their latest monetary policy decision tomorrow, albeit virtually. Since the last meeting in September, the government has announced a new month-long lockdown for England amid soaring coronavirus cases. Most analysts expect the Bank to launch more stimulus to support the economy during the winter. Here [...]
Lockdown 2.0: A creative destruction revolution, or the death knell of innovation? November 4, 2020 So Boris Johnson has failed to follow his own government’s guidelines on cost-benefit appraisal. Study after study by economists show that the costs of lockdown far exceed the benefits. The NHS — the “envy of the world” — has conspicuously failed to develop sufficient capacity to deal with a second wave, despite having had months [...]
FTSE 100 and US stocks jump ahead of presidential election November 3, 2020 The FTSE 100 jumped and US stocks rose sharply, as investors hoped that today’s US election would lead to a big stimulus package. Traders and investors around the world are preparing themselves for the culmination of a chaotic US election campaign. Polls have Democrat challenger Joe Biden well ahead, but memories of President Donald Trump’s [...]
Frankfurt boosts euro clearing incentives for banks, escalating battle with London November 3, 2020 Deutsche Boerse is increasing the incentives for banks to shift clearing of euro-denominated derivatives from London to Frankfurt, escalating a battle between the financial hubs sparked by Brexit. The exchange will strengthen Eurex Clearing’s incentive programme, designed to encourage banks to move swaps from The London Stock Exchange’s LCH unit to Frankfurt, and extend the [...]
IP-Off? Shanghai Stock Exchange suspends Ant Group’s listing November 3, 2020 The Shanghai stock exchange has suspended Ant Group’s public listing, which was set for Thursday. The Chinese fintech firm was set to raise $34.4bn in both Shanghai and Hong Kong through the mammoth dual listing. Ant Group set the price tag for the Shanghai leg of the float at 68.8 yuan (£7.88) per share, while [...]
‘Layers of uncertainty’: The City braces for a US election unlike any other November 3, 2020 It’s been a long year for markets, but today’s US presidential election could be the longest day yet – not least because the results may not be clear for days or even weeks. Democrat challenger Joe Biden is well ahead in the polls. Yet memories of 2016, when Donald Trump came from behind to take [...]
Oil slip: Aramco profit halves as Covid batters oil demand November 3, 2020 Oil behemoth Saudi Aramco’s profit shrank 44.6 per cent in the third quarter due to the collapse in oil demand caused by the coronavirus pandemic. The state-owned firm said profit fell from 79.8 billion riyals (£16.5bn) last year to 44.21 billion riyals this year. The pandemic has devastated the global oil market, with lower prices [...]
UK jobs market weak ahead of lockdown despite rise in vacancies November 3, 2020 The number of firms looking to add to their workforces grew in the third quarter after a historic contraction in the spring, but the UK jobs market remained weak ahead of the recently announced second lockdown, a survey has shown. In the third quarter, 37 per cent of firms attempted to recruit, according to the [...]
Boris Johnson doubles support for self-employed during new lockdown November 2, 2020 Prime Minister Boris Johnson has announced a doubling of support for the self-employed during England’s new coronavirus lockdown and an extension of the deadline for government-backed business loans. Johnson addressed the House of Commons this afternoon after announcing a month-long lockdown on Saturday. MPs will vote on the new measures on Wednesday, with both Labour [...]