Government measures will shore up British banks’ creditworthiness, says Moody’s March 19, 2020 Measures introduced by the Bank of England and Treasury to support the UK economy as it grapples with the coronavirus pandemic will support British banks’ creditworthiness, according to ratings agency Moody’s. On Tuesday, Chancellor Rishi Sunak announced a financial support package including up to £330m of loan guarantees, equivalent to 15 per cent of GDP, [...]
Coronavirus: Rishi Sunak leaves door open for ‘helicopter money’ strategies March 18, 2020 A wave of government cash handouts could be given to individuals and businesses if the scale of the economic downturn from coronavirus is worse than expected, according to Rishi Sunak. Sunak told the Treasury Select Committee he was “looking at every tool” to weather the economic storm and that “more macroeconomic, economy-wide solutions than targeted [...]
Pound crashes to 1980s lows amid coronavirus sell-off March 18, 2020 The British pound has suffered a historic plunge to its lowest level since 1985 as concerns mount about the economy amid the coronavirus outbreak and as investors flock towards the dollar. Sterling was last down four per cent against the dollar at $1.158, its lowest point since the economic turbulence of the 1980s and one [...]
How are the banks battling coronavirus? March 18, 2020 As countries ramp up efforts to control the pandemic, the economic impact of Covid-19 is having an impact on currency values by creating a significant amount of market volatility. Typically when businesses are faced with large-scale uncertainty, the pound is volatile and the current situation with Covid-19 is adding pressure to currencies, including sterling. The [...]
BoE governor Andrew Bailey: Don’t sack workers due to coronavirus slowdown March 18, 2020 The new Bank of England governor Andrew Bailey has said companies thinking about laying off workers should first consider the support the government and Threadneedle Street has made available to them during the coronavirus outbreak. Bailey also said he would not rule out any steps for the Bank of England at this stage, leaving the [...]
Johanna Kyrklund: Are opportunities beginning to emerge? March 18, 2020 After the dramatic market falls of the last few weeks, valuations are looking more appealing. But the risk of a prolonged recession means investors should remain cautious. Last week I said valuations are still not cheap enough to warrant taking more risk. After the large falls we’ve seen this week, is this starting to change? Part of [...]
Coronavirus panic wipes out FTSE 100 stimulus gains as European stocks sink March 18, 2020 Panicked investors this morning more than wiped out the gains the FTSE 100 made yesterday, as traders shrug off massive stimulus packages from governments and keep selling risk assets over fears of a coronavirus-induced recession. The FTSE 100 was last down 4.8 per cent, having shed 252 points to stand at 5,042 points. Read more: [...]
To pay for this crisis, the government must keep in mind Ricardian equivalence March 18, 2020 John Maynard Keynes could certainly craft a neat phrase. In the Second World War, he wrote in his pamphlet How to Pay for the War: “It is only in a free community that the task of government is complicated by the cause of social justice.” The impact of the coronavirus pandemic is similar to a [...]
City of London Corporation to scale down during coronavirus outbreak March 17, 2020 The City of London Corporation will move to postpone some of its set piece events and limit the number of face-to-face meetings during the Covid-19 outbreak. The local authority sent out a statement today, signalling it would postpone some of its major fixtures, such as the June Bankers and Merchants Dinner at Mansion House. The [...]
Britain’s biggest banks warn coronavirus pandemic will hit income March 17, 2020 Some of the largest banks in Britain have warned the coronavirus pandemic will hit their already under-pressure earnings, with a decline in economic activity eating into fee income. Lloyds will delay part of a £3bn technology investment programme in response to the coronavirus pandemic to maintain its capital levels, its chief executive said today, as [...]