Bank of Japan strengthens stimulus as coronavirus threatens to cause recession March 13, 2020 The Bank of Japan has said today it would buy 200bn yen (£1.49bn) of Japanese government bonds with five to ten years maturity. It is an unscheduled move that has come about after the local debt market capitulated as investors rushed for liquidity. Japan’s central bank also said it would inject an extra 1.5 trillion [...]
Italy and Spain ban short selling after record stock sell-off March 13, 2020 Italian and Spanish securities regulators have today implemented a ban on the short selling of more than 100 stocks following record losses yesterday. As a result, the Financial Conduct Authority (FCA) has had to temporarily place a ban on short selling of those stocks on the FTSE. In Spain, the ban affects 69 stocks, including [...]
Coronavirus: Asian stocks volatile as outbreak fears spread March 13, 2020 Asian stocks plunged overnight following the biggest US and London stock market drops in decades as global panic over the spread of coronavirus increased. Japan’s Nikkei is down 6.08 per cent this morning, after dropping as much as 10 per cent overnight. Hong Kong’s Hang Seng is down 2.82 per cent, after earlier suffering its [...]
Spending like a drunken sailor does not create a thriving entrepreneurial economy March 13, 2020 “If I announced that Budget, the Tories would be jumping up and down,” shadow chancellor John McDonnell said with a smirk yesterday morning. Indeed, Wednesday’s Budget is the biggest giveaway of taxpayer money since 1992. Borrowing will increase by £125bn. Debt will reach a record high at £2 trillion. There was some good news for [...]
ECB stimulus measures underwhelms investors disappointed by lack of rate cut March 12, 2020 The European Central Bank has unveiled a fresh stimulus package to help fight the economic impact of the coronavirus pandemic , but markets were left dismayed as the ECB unexpectedly stopped short of an interest rate cut. With millions of European citizens under lockdown and equities across the continent in freefall, the ECB had come [...]
Coronavirus: Sterling plunges as investors flock to dollar safe haven March 12, 2020 Sterling has plunged to its lowest level against the US dollar (GBP/USD) since October last year on the back of global coronavirus-related uncertainty. The pound crashed as low as 2.36 per cent against the dollar today to fall to just $1.2517, as traders flocked to the greenback. By 5.35pm it stood 1.63 per cent down [...]
2020 Budget: ‘Borrowing to skyrocket’ despite £7bn tax bill March 12, 2020 Chancellor Rishi Sunak is unlikely to be able to deliver the huge spending growth he promised in his 2020 Budget given that his pledges were not supported by tax increases, Britain’s top fiscal think tank has said. Sunak yesterday unveiled the biggest Budget since 1992 as he seeks to tackle the fallout from coronavirus and [...]
Bank of England weighs pros and cons of central bank digital currencies March 12, 2020 The Bank of England has asked for people’s views on the creation of a central bank digital currency (CBDC) as it weighs the pros and cons of launching its own. Governor Mark Carney said in a discussion paper published today that although “the creation of a CBDC poses a number of opportunities, it could raise [...]
Budget 2020: Growth forecasts ‘incredibly grim and far too optimistic’ March 12, 2020 The forecasts produced yesterday by the UK’s Budget watchdog managed to be both “incredibly grim and far too optimistic,” according to a leading think tank. The Resolution Foundation warned that the Office for Budget Responsibility’s (OBR) growth writedown – which did not even factor in the full effect of coronavirus – would make households in [...]
Coronavirus: Trump’s EU travel ban rattles Asian and US stocks March 12, 2020 Donald Trump last night issued a ban on travel from Europe to the US in a bid to halt the spread of coronavirus, rattling US and Asian stocks. Trump suspended all travel from Europe, excluding the UK, to the US for 30 days starting tomorrow to fight the outbreak. The president also announced other moves [...]
