S&P: Brexit to hold back UK economy’s coronavirus recovery July 1, 2020 Credit rating agency S&P has said prolonged social distancing and Brexit will hold the UK economy’s recovery from coronavirus, disagreeing with the Bank of England’s optimistic view about a sharp rebound. S&P Global Ratings today said it expects the UK economy to shrink by an enormous 8.1 per cent this year. And it said the [...]
Signs of rising unemployment already apparent, says BoE’s Haskel July 1, 2020 Bank of England interest rate-setter Jonathan Haskel said that indicators of rising unemployment in the UK caused by the coronavirus crisis “are already revealing themselves.” In a speech given today, Haskel said there was a risk that Britain’s economy would be harder hit by the pandemic than the central bank has predicted. “I believe the [...]
Europe pushes back against London bid to trim market trading hours July 1, 2020 A coalition of European bourses has said plans for shorter trading hours by London bodies would not be beneficial for investors or markets. The Federation of European Securities Exchanges (FESE) said shorter hours would be a move in the wrong direction. It instead advocated for adopting other measures to improve workplace culture, such as increasing [...]
Eurozone manufacturing downturn eased in June as lockdowns loosened July 1, 2020 The downturn in eurozone manufacturing was not as bad as initially thought in June after many countries in the bloc eased lockdown restrictions. IHS Markit’s final manufacturing purchasing managers’ index (PMI) reading for the bloc moved closer to the 50-mark separating growth from contraction last month, coming in at 47.4. The reading marks a significant [...]
UK manufacturing activity steadies in June following historic slide July 1, 2020 Activity in the UK’s manufacturing sector grew narrowly in June as lockdown measures were eased, with companies reporting a small increase in output following the historic collapse triggered by coronavirus. June’s final reading for the IHS Markit/Cips manufacturing purchasing managers’ index (PMI) came in at 50.1, compared to May’s 40.7. Any reading above 50 on [...]
FTSE 100 falters, taking shine off best quarter since 2010 June 30, 2020 The FTSE 100 retreated today as fears over a second coronavirus lockdown dampened the end of the strongest quarter for UK stocks since 2010. The blue-chip index ended the session XX per cent down after news of the UK’s first local lockdown and poor GDP figures helped dampen investor enthusiasm. Nevertheless, the FTSE 100 recorded [...]
UK economic outlook less grim but ‘considerable’ risks remain, says BoE’s Haldane June 30, 2020 The UK’s economic outlook has improved slightly since May but the risk of high and persistent unemployment remains, the Bank of England’s chief economist Andy Haldane said today. “Looking ahead, risks to the economy remain considerable and two-sided,” Haldane said in a speech delivered online. “Although these risks are in my view slightly more evenly [...]
Eurozone inflation defies expectations with rise as economies re-open June 30, 2020 Eurozone inflation rose in June after hitting a four-year low in May as economies across the bloc began to re-open following lockdowns. Consumer prices in the bloc rose 0.3 per cent in June month-on-month, defying economists’ expectations that they would remain flat as the negative impact of low energy prices decreased. The European Union’s statistics [...]
Pace of furloughing slows as cost of job support measures tops £33bn June 30, 2020 The number of furloughed workers in the UK rose to 9.3m last week, while the cost of the government’s job support measures topped £33bn, new figures showed. Some 100,000 additional workers were furloughed in the week to 28 June, according to data from HMRC. Read more: UK businesses borrow over £43bn to survive coronavirus This [...]
UK GDP suffers largest fall since 1979 in first quarter of 2020 June 30, 2020 UK GDP slumped by 2.2 per cent in a coronavirus-ravaged first quarter of 2020, its worst slump since 1979, data confirmed today. The figure was slightly higher than the Office for National Statistics’ (ONS) initial estimate of the pandemic hit. It initially measured a two per cent fall. The drop revealed today is the worst [...]