Chancellor Rachel Reeves delivered Labour’s first Budget in 14 years, announcing £40bn of tax rises, Central London Alliance comments
New US jobless claims flatline as recovery slows October 8, 2020 The number of new US jobless claims stayed roughly flat last week in the latest sign that the country’s economic recovery is slowing as it heads into the autumn. Department of Labor (DoL) data showed that 840,000 Americans filed new jobless claims in the week ending 3 October, down just 9,000 from the week before. [...]
BoE gives banks all-clear but warns them to keep up support October 8, 2020 The Bank of England has warned lenders that reducing their support to households and businesses “would be costly” for the economy and for banks themselves. It came as the Bank’s Financial Policy Committee (FPC) said the UK’s lenders were strong enough to weather the rest of the coronavirus storm – even if unemployment soared to [...]
UK businesses plan to cut jobs and investment, survey shows October 8, 2020 UK businesses expect to cut staff levels and investment over the next year, according to a new survey, with the outlook “stuck in the doldrums”. The Institute of Directors’ (IoD) survey showed that bosses’ optimism about the economy plateaued in September, having risen since the coronavirus-induced lockdowns of the spring. The UK economy shrunk by [...]
New OBR chief says public debt sensitive to rate moves October 7, 2020 The new head of the UK’s budget watchdog has said the country’s public finances have become more sensitive to changes in interest rates because of a change in borrowing terms. However, Office for Budget Responsibility (OBR) board member Sir Charlie Bean said people should not think there is “great urgency” in closing the government’s budget [...]
FTSE 100 flat after Donald Trump ends US stimulus talks October 7, 2020 The FTSE 100 flatlined after US President Donald Trump abruptly ended talks between Republicans and Democrats over the next round of fiscal stimulus. London’s blue-chip index was just 0.06 per cent higher at 5,953.6 points as it approached midday. The FTSE 250 was up 0.17 per cent. Read more: US stocks fall after President Trump [...]
UK house prices jump again in September as market defies gravity October 7, 2020 UK house prices rose at the fastest pace in four years in September despite the raging coronavirus pandemic as people working from home sought more space, according to the Halifax house price index. Yet the lender said it is “unlikely” that the British housing market will “remain immune” to the historic economic slowdown. House prices [...]
Fall in German factory output a temporary setback, economists say October 7, 2020 German factory output unexpectedly fell in August, raising alarm bells about the health of Europe’s biggest economy. But economists have backed the sector to resume its mixed recovery in September. Industrial output fell 0.2 per cent in August after rising 1.4 per cent in July, the Federal Statistics Office said today. The August figure was [...]
Fed’s Jay Powell: Too much stimulus is better than too little October 6, 2020 It is better for US policymakers to do too much to try to help the economy than to do too little, US Federal Reserve chair Jay Powell said in some of his most pointed comments about stimulus to date. Powell told the National Association for Business Economics that the recovery from the coronavirus lockdowns of [...]
Finance ministers give EU recovery fund the green light October 6, 2020 European Union finance ministers gave the green light to the €750bn (£682bn) coronavirus recovery fund that was first outlined by the bloc’s leaders in July. It means the European Council – the heads of EU states and the bloc’s top brass – can now negotiate the details of the fund with the European Parliament. Following [...]
IMF and WTO: Economy brighter than expected but big risks remain October 6, 2020 The hit to global growth and trade from the coronavirus pandemic will not be as bad as previously feared, although the recovery remains highly fragile, the International Monetary Fund (IMF) and World Trade Organization (WTO) have said. IMF chief Kristalina Georgieva said the international organisation would make a “small” upgrade to its prediction that the [...]
