Coronavirus

The UK government looks set to secure parliament's support for a new one-month lockdown in England, due to start on November 05.

The British Pound is said to face a challenging November amidst fears that a second lockdown in England could trigger an economic slump that will see many businesses close permanently and result in a swathe of job losses, potentially overshadowing any positive developments concerning Brexit.

The U.S. economy surpassed expectations last quarter as the consumer powered a record rebound out of the coronavirus crater, potentially leaving lawmakers on the hook in more ways than one for any upset in the final quarter of the year. 

Germany and Europe's economies are on course for a fresh contraction due to new coronavirus containment measures announced this week, according to Deutsche Bank and Morgan Stanley forecast, although the anticipated damage could grow quickly if the new restrictions are either enhanced or prolonged. 

The U.S. Dollar, Yen, Franc and other 'safe haven' assets found demand in mid-week trade as a risk aversion swept through the global investor community, with a rapidly spiralling covid-19 infection rate in the northern hemisphere as well as nerves ahead of next week's vote being cited as the cause.

A survey of the UK economy in October points to a rapid slowdown in activity in the wake of fresh regional lockdowns.

More of the UK is set to enter harsh 'tier 3' lockdowns and even full lockdowns over coming days and weeks according to local news organisations at the start of the new week, confirmation that pressure on the UK's economy is set to intensify.

The coronavirus-contaminated United Kingdom is among the least able to afford the economic carnage that would surely come with another national shutdown, new research showed this week, as parts of the country including London were walloped with fresh restrictions on Thursday. 

The UK recovery has been placed on ice already by fresh government restrictions on activity, according to Capital Economics, although the risk is that further measures are implemented in the coming weeks and send the economy into reverse during the final quarter. 

The UK hospitality sector could see revenues fall by nearly three quarters in areas that are subjected to any new Alert Level 3 restrictions or so-called circuit breaker 'lockdown' in the coming months, new research from Deutsche Bank suggests, which would likely further constrain the UK's economic recovery. 

The Dollar fell alongside U.S. stock futures and government bond yields Friday after President Donald Trump said in a Twitter post that he and his wife have tested positive for the coronavirus, opening a Pandora’s box of uncertainty barely more than a month out from the November 03 election

Chancellor Rishi Sunak's Winter Plan for the economy hasn't done enough to prevent a wave of Job losses over coming months say Economists, and is being branded a tax on employers by one economist who has crunched the numbers.

The government borrowed £35.9BN from financial markets in August as it continues to count the cost of staving off an economic meltdown due to the lockdown and restrictions it has introduced to try and stem the spread of covid-19.

The UK Treasury has today unveiled further fiscal stimulus and support initiatives aimed at cushioning the negative impact on businesses caused by the Government lockdowns and restrictions aimed at suppressing the covid-19 virus.

"We struggle to see how the economy can grow in 4Q," says a research note from Bank of America Merrill Lynch, citing "escalating lockdown measures, fading stimulus and Brexit risks".

HM Treasury’s innovative Eat Out to Help Out scheme likely provided a meaningful boost to the economy in August, according to Deutsche Bank, although its expiry and statistical base effects could mean that it bites September’s GDP numbers ahead of a possibly bleak winter.

The UK has preordered enough vaccines to provide five doses per citizen, courtesy of committing orders with six of the leading vaccine developers as the government attempts to hedge its bets.

The latest official economic data from the ONS shows the UK economy grew 6.6% in July, meaning by at this point half the economic output lost during the lockdown had been recovered, and the third quarter would likely see a record reading for GDP growth.

The UK economy is estimated to have grown 7% in July by economists at Deutsche Bank, which means the economy will have recovered about 88% of its pre-lockdown size.

The UK economy is underperforming that of the Eurozone and the U.S. courtesy of poor policy decisions, says a new briefing from Berenberg Bank.