Barnier Makes an Overture that Could Oil Progress in Trade Negotiations

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 Eurozone outlook darkened in October according to respondents in the latest Lebnitz Centre for European Economic Research (ZEW) survey, who flagged the coronavirus and uncertainty about the outcomes of Brexit trade talks and the U.S. election for more downbeat views on Europe's prospects. 

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. 

Britain's labour market showed signs of life in September but not enough to reverse the damage done by earlier coronavirus containment efforst and with the economy now slowing again as more virus-related restrictions come into effect, some economists are warning of a perfect winter storm ahead.

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 economy grew slower than was expected in August even after being boosted by Chancellor Rishi Sunak’s innovative Eat Out to Help Out scheme, Office for National Statistics (ONS) data showed Friday, leading economists to warn of a bleak winter period ahead in which the recovery risks going into reverse.