There is a difference between helicopter money and quantitative easing April 28, 2020 Many investors have it wrong. This round of central bank alchemy starring Jay Powell is not Ben Bernanke the Redux… Yes, on both occasions central bankers rode in on their white horses and saved the day by slashing rates, buying fixed income securities, flattening volatility and offering bazooka style forward guidance, and for that they deserve [...]
Economies in free fall as hopes fade for a V-shaped recovery April 28, 2020 Amongst the arguments about a lack of protective clothing for health workers and whether governments were too slow to react to the spread of Covid-19, the latest figures show that the pandemic is gradually coming under control. The rate of growth in new infections and fatalities around the world is slowing and the curves are [...]
UBS profit jumps 40 per cent despite coronavirus disruption April 28, 2020 UBS reported a sharp rise in first-quarter net profit, helped by higher trading volumes as clients reacted to market volatility. Net profit rose 40 per cent year on year to £1.6bn. UBS had said earlier this month it expected a net profit for the period around $1.5bn. Market volatility helped UBS’s investment bank post a [...]
UK banks ease coronavirus business loan requirements April 27, 2020 The UK’s biggest banks have said they will ease their lending conditions to make it easier for small businesses to access cash through the coronavirus business loan schemes, after chancellor Rishi Sunak offered 100 per cent guarantees to the smallest businesses. The coronavirus business interruption loan scheme (CBILS) has been criticised by many firms who [...]
Easyjet board set for showdown with founder over Airbus contract April 27, 2020 Easyjet’s board has set the date for a showdown with founder Sir Stelios Haji-Ioannou, who has been calling for the airline to scrap a £4.5bn order with Airbus. On May 22, shareholders will vote on whether to back the board’s plan to go through with the deal, which has been modified in light of the [...]
Airlines call on government to extend furlough scheme beyond June April 27, 2020 The UK’s airlines have written to chancellor Rishi Sunak warning him that carriers could face a “renewed cash crisis” if the coronavirus job retention scheme is not extended beyond June. In a letter, Tim Alderslade, chief executive of sector body Airlines UK, said: “There is a danger that should the CJRS be withdrawn prematurely, carriers [...]
Car insurer Admiral suspends special dividend on regulatory pressure April 27, 2020 Car insurer Admiral said today it would suspend its special dividend after regulatory pressure from the Bank of England. Admiral said it would go ahead with its standard dividend payment of 56.3p per ordinary share on 1 June, but said it would not pay its previously recommended special dividend of 20.7p per ordinary share. The [...]
UK economy will take three years to recover from coronavirus, say analysts April 27, 2020 The UK economy could take three years to return to its 2019 size after the coronavirus pandemic has passed, a new report has warned, as consumer spending and business investment plunge. The report from economics forecaster EY Item Club said UK GDP would likely shrink 6.8 per cent in 2020 and unemployment would surge to [...]
BoE boss Andrew Bailey: Bank keeping ‘eyes open’ ahead of next meeting April 26, 2020 Bank of England governor Andrew Bailey has said Threadneedle Street is keeping its “eyes open” for risks to the economy or financial system ahead of its next scheduled interest rate decision on 7 May. Bailey also highlighted the huge amount of uncertainty the UK economy still faces. “No one can be sure exactly how the [...]
Coronavirus: Executives pessimistic about quick rebound for their firms April 24, 2020 The majority of executives think it will take longer than a year for their firms to bounce back from the coronavirus crash, a report has said. Bosses are also deeply pessimistic about the prospects of the global economy. They are slightly less pessimistic about their own companies and industries, however. The report, from the Economist [...]