Coronavirus: UK economy slumped by a fifth in second quarter September 30, 2020 The UK economy suffered a record-breaking collapse in the second quarter, slumping 19.8 per cent as the coronavirus pandemic hammered demand and left swathes of the economy unable to operate. Gross domestic product shrank by 19.8 per cent in between April and June, the Office for National Statistics said, slightly less than the initial 20.4 [...]
UK mortgage approvals hit 13-year high in August as post-lockdown surge continues September 29, 2020 UK mortgage approvals hit a 13-year high in August as pent-up demand post-lockdown continued to boost the housing market, but consumers became more cautious about day-to-day borrowing. Mortgage approvals for the month were 84,700, according to new data from the Bank of England — the highest rate of approvals since October 2007, just before the [...]
Evidence on negative rates ‘encouraging’, says Bank of England policymaker September 27, 2020 The Bank of England has seen “encouraging” evidence that negative interest rates could help the British economy during the downturn triggered by the coronavirus, a policymaker has said. Silvana Tenreyro, who sits on the Bank’s monetary policy committee (MPC), said the committee has been discussing what options it has in its toolkit, including “how effective [...]
How mid-market businesses can keep on top of their evolving VAT obligations September 24, 2020 | City Talk In this article, I ask my VAT colleague, Mitchell Piper, for his views on how businesses can keep up to date with VAT changes. Value Added Tax (VAT), like all taxes, evolves over time to adapt to changes in society, technology and business practices. Good examples of this are the recent VAT rate reductions in [...]
US jobless claims rise as economic recovery stalls September 24, 2020 The number of Americans making new claims for unemployment benefits rose slightly last week amid worrying signs that the economic recovery was stalling. There were 870,000 jobless claims last week, up from 866,000 for the week ending 12 September, according to figures from the US Labor Department. The rise came as a shock to economists, [...]
UK manufacturing orders stall for first time since April September 22, 2020 The UK’s manufacturing firms saw orders stagnate in September for the first time since April as companies faced “headwinds from a resurgence of the virus”, a new survey has shown. However, manufacturing output volumes fell at a slower pace than in August, the latest CBI industrial trends survey said. Anna Leach, CBI deputy chief economist, [...]
Bank and government support to UK firms tops £100bn September 22, 2020 Struggling UK companies have now received more than £100bn worth of support from banks and the government through various coronavirus stimulus schemes, official figures have shown. UK banks have lent out more than £58bn to hard-hit companies through the government-backed coronavirus loan schemes, according to Treasury figures out today. HMRC figures showed that companies have [...]
Republicans or Democrats: who is better for the economy? September 22, 2020 | City Talk We’re in the midst of another US presidential election. And as we do every four years, we’ll hear talk about the presidential cycle and why Republicans, because of their more business-friendly policies, are better for the economy and stock markets than Democrats. But as with so much common knowledge, the evidence for this is much [...]
Bank of England to do ‘everything it can’ during Covid surge September 22, 2020 Bank of England governor Andrew Bailey has said the BoE “is going to do everything we can” to help the UK economy as it faces the prospect of a second lockdown. Speaking at a British Chambers of Commerce webinar, Bailey said the recent rise in coronavirus cases and new government restrictions were “extremely difficult news [...]
Government to extend coronavirus loan schemes as cases jump September 21, 2020 Chancellor Rishi Sunak is set to extend the government’s coronavirus loans schemes in an effort to protect the UK economy during a possible second wave of Covid infections. The four business loans schemes will be extended for applications until the end of November, the Financial Times reported. Banks will be allowed to process the loans [...]
