The costs of lockdown could far outweigh the benefits July 8, 2020 Radical leaders such as Jacinda Ardern in New Zealand and Nicola Sturgeon in Scotland have gained plaudits through their relentless focus on eliminating Covid-19. But this comes at an obvious economic cost. Tourism is some 15 per cent of New Zealand’s GDP, and major destinations such as Queenstown in the Southern Alps have been devastated. [...]
Rishi Sunak’s summer statement: What can we expect? July 8, 2020 Chancellor Rishi Sunak will today give a “summer statement”, a sort of mini-Budget in which he will announce schemes to support the economy as it recovers from its coronavirus-induced collapse. Last week, Prime Minister Boris Johnson announced £5bn of infrastructure spending. He invoked US President Franklin Roosevelt’s 1930s New Deal, saying the UK will “build, [...]
How systemic risk is shaking the market’s foundations July 8, 2020 Adversity, like necessity, is the mother of invention. Firms are seeking novel ways to adapt to the challenges of Covid-19 and the likely increase of remote working even after the pandemic subsides. Some problems are easier to solve than others. In the easier category, new solutions are needed to replicate the spontaneous interactions that arise [...]
Asian stocks falter as coronavirus cases surge July 8, 2020 Asian stocks dithered on Wednesday as an increase in new coronavirus cases in some parts of the world cast doubts over the economic recovery while oil prices eased on oversupply fears. MSCI’s broadest index of Asia-Pacific shares outside Japan were a tad lower after hitting a 4-1/2 month high just on Tuesday. Chinese shares flickered [...]
Rishi Sunak reveals £2bn unemployment scheme to create hundreds of thousands of jobs July 7, 2020 The government will subsidise hundreds of thousands of new jobs for unemployed young Britons as a part of a new £2bn coronavirus support package. Chancellor Rishi Sunak will announce the launch of the Kickstart Scheme in his summer economic statement tomorrow, which will see the government subsidise jobs for 16 to 24-year-olds receiving Universal Credit [...]
Economic recovery will be determined by public policy, says BoE’s Haldane July 7, 2020 The UK’s path to economic recovery will be determined by the course of public policy, the Bank of England’s chief economist Andy Haldane said today. “Our economic destiny lies not in the stars but to a significant extent in ourselves, in what policy course we choose,” Haldane said in an online webinar. “What is done [...]
Sterling rises to three-week highs on news of Brexit negotiations dinner July 7, 2020 Sterling rose to three-week highs following news that the UK’s chief Brexit negotiator would meet with Michel Barnier ahead of the next round of trade talks. A Downing Street spokesperson today said David Frost will tonight have dinner with Barnier at Number 10 this evening to discuss some of the trickier parts of negotiations. These [...]
FTSE 100 and US stocks drop on economy warnings July 7, 2020 The FTSE 100 and US stocks have fallen as investors weigh persistent worries about the economy against countries’ moves to reopen after lengthy coronavirus lockdowns. London’s blue-chip index was 1.6 per cent lower this afternoon, at 6,187 points. It rose more than two per cent yesterday after Chinese shares rallied more than five per cent. [...]
UK unemployment rate could hit 15 per cent with second Covid wave, says OECD July 7, 2020 The UK unemployment rate could soar to 15 per cent if there is a second wave of coronavirus infections, the OECD has said. Even without a second wave, the global economic organisation reckons unemployment could hit 11.7 per cent, a level not seen since the 1980s. It comes as the UK gradually reopens its economies [...]
Rishi Sunak to unveil £3bn green stimulus package July 7, 2020 Chancellor Rishi Sunak will tomorrow announce a £3bn green investment package to create jobs and upgrade buildings as he tries to kick-start the UK’s economic recovery from the coronavirus lockdown. The Treasury said £1bn of the package will be spent on improving the energy efficiency of public buildings such as schools and hospitals. Sunak is [...]