Coronavirus to spark “severe” global recession March 20, 2020 The coronavirus is having a severe effect on global economic activity and amidst considerable uncertainty we have attempted to gauge the impact and updated our forecasts. We now expect to see the world economy contract this year by 3.1%, before rebounding by 7.2% in 2021. The forecast incorporates a severe recession in the first half [...]
Coronavirus: Wetherspoon scraps dividend and warns on profit March 20, 2020 Wetherspoon boss Tim Martin has scrapped the pub chain’s dividend and issued a profit warning after Boris Johnson urged Brits not to visit pubs and restaurants amid the UK coronavirus outbreak. A rapid escalation in UK coronavirus cases has already seen a 4.5 per cent decline in Wetherspoon pub sales in the week to 15 [...]
Bank of England slashes rates to historic low amid coronavirus pandemic March 19, 2020 The Bank of England has slashed interest rates to a new record low and will pump £200bn into the economy through its quantitative easing (QE) bond-buying programme as it seeks to curb the effects of the coronavirus pandemic. The Bank today held an emergency meeting and cut its main rate by 15 basis (0.15 percentage [...]
FTSE 100 shoots back up after Bank of England slashes rates over coronavirus March 19, 2020 The UK’s FTSE 100 managed to climb this afternoon after the Bank of England announced £200bn of quantitative easing and slashed interest rates close to zero. European stocks also turned green, having been mired in the red despite the European Central Bank (ECB) announcing a €750bn (£700bn) asset purchase programme to deal with the coronavirus [...]
City of London Corporation offers rent relief for tenants March 19, 2020 The City of London Corporation has adjusted rent conditions for some of its commercial tenants to provide financial relief during the coronavirus outbreak. The local authority, a major commercial landlord, is changing rental payments for March to June to monthly billing for directly managed premises instead of quarterly billing. In a statement, the Corporation said [...]
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, [...]
Huge ECB stimulus programme pushes down Eurozone bond yields March 19, 2020 Bond yields have fallen across the Eurozone as investors and governments breathe a sigh of relief following the European Central Bank’s (ECB) decision to buy €750bn (£709bn) of assets in a huge programme to counter the economic effects of coronavirus. The yield is the amount the investor receives from a bond – government debt – [...]
DEBATE: Is there a case for the UK government bailing out airlines in the midst of the coronavirus crisis? March 19, 2020 Is there a case for the UK government bailing out airlines in the midst of the coronavirus crisis? YES, says Rob Burgess, editor of headforpoints.com, the UK’s biggest frequent flyer website. There are many reasons not to bail out companies — it is wrong to reward stupidity, bad management, corruption, or those who failed to [...]
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 [...]
Pizza Express agrees £70m loan facility March 18, 2020 Pizza Express has agreed a £70m loan with HPS Investment Partners amid a difficult time for casual dining chains as customers were advised to avoid eating out to stop the spread of coronavirus. The new super senior facility agreement will be used to repay in full and cancel its £20m existing revolving credit facility and [...]