Markets live: US stocks dip on stimulus fears after miners pull FTSE 100 lower August 6, 2020 The FTSE 100 sank sharply today as traders appeared to react negatively to the Bank of England’s relatively upbeat assessment of the UK economy, amid fears of a lack of fresh US stimulus. The UK index dropped 1.32 per cent to 6,024 points by 4pm, after the Bank said the economy would fall less sharply [...]
Meggitt shares sink over reports firm mulling equity raise August 6, 2020 Engineering firm Meggitt has said it is reviewing its options after reports that the FTSE 250 firm was considering raising new equity to help bolster its finances. Yesterday Bloomberg reported that the aerospace engineer was mulling a $600m (£455m) sale of new stock and was reviewing its debt with advisers. Shares fell 6.2 per cent [...]
BoE governor Andrew Bailey: Some parts of economy no longer ‘viable’ August 6, 2020 Bank of England governor Andrew Bailey has warned that “some parts of the economy” will not be “viable” after the coronavirus pandemic. He also backed the government’s move to end the furlough scheme in October. He said “we have to look forwards”. Bailey was speaking to broadcasters after the Bank kept interest rates on hold [...]
London hospitality firms call for free face masks at Tube stations August 6, 2020 London’s hospitality firms require urgent improvements to the “insufficient and inadequate” support provided for struggling businesses in the city centre, the leading industry body has said. In a letter to London mayor Sadiq Khan, UK Hospitality has set out a number of urgent measures that could encourage Londoners and domestic tourists to visit the centre [...]
Economists question Bank of England’s ‘optimistic’ forecast August 6, 2020 The Bank of England today kept interest rates on hold and said the UK economy would not shrink as much as initially thought this year, but it said the recovery would take longer. But some economists have questioned the assumptions, arguing that high unemployment will damage the economy. The Bank said the UK economy was [...]
Bank of England: Downturn better than feared but UK faces longer recovery August 6, 2020 The Bank of England has significantly improved its prediction for the path of the UK economy this year, but said the recovery will take longer than initially expected. The Bank’s projection, released today, said the UK economy was likely to shrink by 9.5 per cent this year and then grow by nine per cent in [...]
BoE puts negative interest rates in its ‘toolbox’ for the first time August 6, 2020 The Bank of England has put negative interest rates in its “toolbox” of possible monetary policy measures for the first time, governor Andrew Bailey said today. However, Bailey cautioned that the Bank does not currently “have a plan to use them”. Read more: Bank of England says UK economy’s recovery will take longer than expected [...]
UK construction sector slashes more jobs despite post-lockdown boom August 6, 2020 The rate of UK construction job cuts increased sharply in July despite the industry’s fastest rise in output since 2015, a closely followed survey showed today. Around one-third of employers in the UK construction sector reported a decline in employment for July, IHS Markit’s UK Construction Purchasing’ Managers’ Index (PMI) report found. That came despite [...]
Aviva vows to reduce focus on Asia and Europe as profit slumps August 6, 2020 Aviva today vowed to reduce its focus on Asia and Europe, after profit in the first six months of 2020 fell 30 per cent. The figures Profit before tax dropped 30 per cent year on year to £1.08bn in the six months to 30 June down from £1.52bn in the same period last year. Basic [...]
Will the Bank of England change its tune on the UK economy? August 5, 2020 The Bank of England will announce its latest monetary policy decision tomorrow, but investors and policymakers will be focused on whether Threadneedle Street has become more pessimistic about the UK economy. Two months ago, the BoE’s monetary policy committee (MPC) raised some eyebrows when it said the UK economy would suffer an unprecedented crash but [...]