Coronavirus: Bank of England holds rates but paints gloomy economic picture March 26, 2020 The Bank of England has kept interest rates on hold at the record low level of 0.1 per cent but signalled it is prepared to take further action to tackle the effects of coronavirus. The Bank’s monetary policy committee (MPC) today said it “stands ready to respond further as necessary to guard against an unwarranted [...]
US unemployment skyrockets as coronavirus crashes economy March 26, 2020 The number of Americans claiming unemployment benefits skyrocketed at the fastest pace on record last week as coronavirus laid waste to the US economy, data showed today. Jobless claims soared to 3.3 million in the week to 21 March from 282,000 a week earlier, according to the US Department of Labor (DoL). “This marks the [...]
Coronavirus: Moody’s downgrades outlook for Europe’s biggest banking systems March 26, 2020 Ratings agency Moody’s has downgraded the outlook for six of Europe’s biggest banking systems to “negative” as coronavirus threatens lenders’ profitability and asset quality. Moody’s said the banking systems of France, Italy, Spain, Denmark, the Netherlands and Belgium face a very difficult year and can therefore no longer keep their “stable” rating. The ratings agency [...]
Coronavirus: New York and London slip up in financial centres ranking March 26, 2020 The world’s leading financial centres saw their ratings tumble in an annual survey today as the global coronavirus pandemic saw investors flee for the relative stability of western Europe. New York and London kept their top two positions in the Global Financial Centres Index list, which measures the competitiveness of the world’s financial centres. But [...]
ECB ditches rules limiting €750bn coronavirus bond purchases March 26, 2020 The European Central Bank (ECB) has scrapped nearly all limits to its bond-buying programme, significantly widening the scope of the €750bn (£700bn) of asset purchases it announced last week. The Eurozone’s central bank has previously followed self-imposed rules that say it cannot buy more than a third of a country’s sovereign debt. The Bank was [...]
Coronavirus: FTSE 100 falls ahead of US unemployment figures March 26, 2020 The FTSE 100 has fallen in early trading after two consecutive days of gains as investors await what is set to be dire US jobs data and an interest rate decision by the Bank of England. Britain’s main stock index was down 2.8 per cent at 5,530 points. It had climbed five per cent yesterday [...]
BoE and Treasury to resume coordinated response to prevent coronavirus slump March 26, 2020 The Bank of England (BoE) and Treasury will resume their coordinated drive to prevent the coronavirus-related economic shutdown from triggering a deep recession. The BoE, which has already made two emergency cuts to interest rates this month, is reportedly likely to hold off on further action when it makes a statement at noon after its [...]
UK retail sales miss expectations before March’s coronavirus hit March 26, 2020 UK retail sales slumped 0.3 per cent in February to miss expectations of a small rise of 0.2 per cent. And core UK retail sales dropped 0.5 per cent on a monthly basis, deeper than expected in February, despite few businesses seeing the coronavirus-led slowdown that has wrought havoc in March. Excluding fuel, UK retail [...]
Coronavirus crisis is putting the public good back at the heart of commerce March 26, 2020 Conservative chancellors are not usually known for their inspirational quotes. Rishi Sunak, however, channelled the mood of the nation when he unveiled his bold package to tackle the coronavirus crisis. Ending his speech on a stirring note, he set out how history would judge our response, highlighting the acts of kindness and decency that would [...]
US investor Bill Ackman unwinds hedges and bets on stock market March 25, 2020 US hedge fund manager Bill Ackman said today that he has cashed in $2.6bn in credit market hedges and reinvested the money in the stock market after turning “increasingly positive” on equity markets. Ackman’s Pershing Square Capital Management took out the hedges – credit protection on investment grade and high yield credit indices – at [...]