Coronavirus could cost global economy $8.8 trillion May 15, 2020 The global economy could haemorrhage between $5.8 trillion and $8.8 trillion (£4.7 trillion-£7.1trillion) this year depending on how long coronavirus containment measures last, the Asian Development Bank has said. In the worst-case scenario, that would be equivalent to almost 10 per cent of the world’s output. Economists say the world is going through its worst [...]
German economy shrinks at fastest pace since financial crisis May 15, 2020 The German economy shrank at its fastest pace since the financial crisis in the first quarter of the year, as the powerhouse of Europe was battered by the coronavirus pandemic. German GDP dropped 2.2 per cent in the first quarter compared to the final three months of 2019. It was the second largest drop since [...]
FTSE 100 rises but US stocks stall after dire retail sales data May 15, 2020 US stocks have fallen in the wake of dire retail sales data, even as the FTSE 100 has risen on the final day of a choppy week of trading that has seen investors second-guess the recent stock market rally. The UK’s FTSE 100 index was up 1.5 per cent this afternoon at 5,785 points in [...]
FTSE 100 tumbles as investors doubt coronavirus recovery May 14, 2020 The FTSE 100 has fallen dramatically and US stocks have turned lower as doubts about the economic recovery set in following a gloomy speech by the governor of the US Federal Reserve. Britain’s FTSE 100 index dropped 2.8 per cent to finish at 5,741 points. That wiped out all of May’s gains. The mid-cap FTSE [...]
Bank of England ‘not contemplating’ negative interest rates, says governor Andrew Bailey May 14, 2020 Bank of England governor Andrew Bailey has said Threadneedle Street is not considering cutting interest rates to below zero. The governor said that it would be unwise to rule anything out, “particularly in these circumstances,” in an online question and answer session with the Financial Times. Yet he said: “It is not something we are [...]
Trump says Chinese companies could be forced to follow US accounting standards May 14, 2020 The US government is thinking about imposing stricter requirements on Chinese companies listing on the US stock exchange as President Donald Trump ramps up the pressure on China amid the coronavirus pandemic. Chinese companies do not have to follow US accounting standards, which has led to incidences of fraud and caused investor losses. Trump told [...]
Exclusive: Brits think lockdown measures will hinder economic recovery May 14, 2020 Britons think the UK economy will be unable to recover quickly if the coronavirus lockdown measures continue, according to an exclusive poll for City A.M. The poll, conducted by Redfield and Wilton Strategies, found that 56 per cent of Britons believe that if the lockdown measures continue, the UK economy will reach a point at [...]
US jobless claims: Nearly 3m more Americans file for unemployment benefits as lockdown slams economy May 14, 2020 Another 2.981m Americans filed for unemployment benefits in the week ending 9 May, according to jobless claims data released today by the US Labor Department. The previous week’s figure was revised higher to 3.18m from 3.17m jobless claims. Since the coronavirus pandemic hit the US two months ago, more than 36m Americans have filed unemployment [...]
Job retention scheme could cost £84bn, says UK budget watchdog May 14, 2020 The UK’s budget watchdog has said the coronavirus job retention scheme could cost £84bn this year, which would push up government borrowing to well north of £300bn. It comes after chancellor Rishi Sunak extended the furlough scheme on Tuesday. Under the programme, the government pays 80 per cent of “furloughed” workers’ wages up to £2,500 [...]
Three quarters of UK businesses apply for furlough scheme May 14, 2020 More than three quarters of UK businesses have applied for the government’s job retention scheme, according to an official survey that laid bare the extent to which the furlough programme is supporting the economy. The Office for National Statistics (ONS) said 76 per cent of UK firms had applied for the scheme, up from 66 [...]