Gertjan Vlieghe says the surge in Covid cases means the Bank will need a range of measures
Negative interest rates in the UK edged closer on Monday after a Bank of England policymaker warned the central bank would need extra firepower to boost the economy following the surge in Covid-19 cases.
In a gloomy assessment of the next few months, Gertjan Vlieghe, who sits on the monetary policy committee, the bank’s interest rate setting body, said the second wave of Covid-19 was holding back consumer spending and suppressing business investment, which would push unemployment higher.
Disney’s executive chairman sees ‘enormous potential’ in group tapping into animal-free food trend
Industrial metal is trading at its highest level in more than 2 years
Brazilian president’s stance on deforestation remains stumbling block for South America agreement
Brussels is in talks with Brazil’s far-right nationalist president, Jair Bolsonaro, over commitments on the future of the Amazon as it seeks to persuade Emmanuel Macron and other EU leaders and parliaments to ratify the trade deal the bloc has negotiated with South America.
The ratification of the draft trade agreement between the EU and the “Mercosur” or Southern Common Market free-trade zone – which spans Brazil, Uruguay, Paraguay and Argentina – has been in doubt almost since it was announced last June.
Transactions that could violate Beijing-imposed law should be treated the same as if financing terrorism, says guidance
Hong Kong-based banks have been told to report any transactions that they believe may violate the national security law, in new advice from the financial regulator.
The Hong Kong Monetary Authority updated its advice to companies last month, in an amended document of frequently asked questions, to say transactions suspected to be linked to the law should be treated the same as transactions suspected to be money laundering or financing terrorism.
Manchester United lose £70m in the period to 30 June 2020 as a direct result of the coronavirus pandemic.
Members of billionaire Sackler family that own company to pay $225m in related civil settlement
The firm claims it is “one of the biggest changes to the delivery since the launch of the post box”.
There are not enough EU workers to process the meat due to quarantine rules, says British Poultry Council.
The US president, who sparked a trade war with Beijing, is critical of US firms doing business in China.
Rolling coverage of the latest economic and financial news
- Latest: BoE deputy governor warns of labour market scarring
- Ramsden: joblessness could rise faster than thought
- UK on course to borrow £1bn a day
- Intro: UK borrowed £36.1bn last month – a September record
- Analyst: No problem financing Covid-19 deficit
- Inflation rises as Eat Out to Help Out ends, but still low
No Bank of England speech is complete without a reference to negative interest rates — the latest weapon in the BoE’s armory.
Sir Dave Ramsden doesn’t sound eager to pull the trigger, though.
While there might be an appropriate time to use negative rates, that time is not right now, when the economy and the financial system are already grappling with the effects of an unprecedented crisis, as well as the myriad uncertainties the crisis has created.
Just in: Bank of England deputy governor Sir Dave Ramsden has warned that unemployment could rise more sharply than forecast, and that wage growth could also falter as the pandemic continues.
In a speech just released, Ramsden warns that younger workers, and those at the start of their careers, could be particularly impacted by Covid-19.
As flagged in the MPC’s September minutes, there is a real risk of a more persistent period of higher unemployment, and the recent strength of income growth might not be sustained.
I remain particularly concerned that we could also see structural headwinds to recovery in the labour market, with particular impacts on younger workers and those joining the workforce.
Renouncing Donald Trump is not enough to equip the party for the future
The supermarkets are dropping prices in time for Christmas as many shoppers count their pennies.
The justice department brought antitrust charges against the company, but experts say that’s just a start
For decades, companies like Google have enjoyed exponential growth and an almost unobstructed rise to power. But the tide appears to be turning, as US lawmakers crack down on alleged monopolistic practices and public sentiment sours on the former wunderkinder of Silicon Valley.
Antitrust charges brought against Google on Tuesday by the US justice department mark the latest – and most significant – legal challenge yet for big tech.