Editor Brian Harrod Provides Comprehensive up-to-date news coverage, with aggregated news from sources all over the world from the Roundup Newswires Network
In total the coronavirus government support for UK workers has come to £21.8bn, if you add together the money paid for furloughed employees and income support for self-employed workers.
More than 10m British workers have been given some form of income support, if furlough numbers are added to those who have claimed self-employed support*.
More struggles for the British property sector:
British Land, which owns shopping centres including Sheffield’s Meadowhall and Drake Circus in Plymouth, has written down the value of its retail portfolio by more than a quarter due to the impact of the coronavirus.
Italy may need to call on the European Union to offer leeway on its budget targets as it struggles with the impact of the coronavirus outbreak, a senior official said.
Deputy economy minister, Laura Castelli, made the comments a day after prime minister Giuseppe Conte warned that the fallout from the outbreak, which has concentrated in the economic powerhouses of northern Italy, would be “very strong”.
If you want to share any thoughts or news tips with me about the coronavirus then please email: sarah.marsh@theguardian.com or tweet me @sloumarsh. My direct messages are open. Thanks
From a festival that helps artists trade work for healthcare to a regional micro-currency, Kingston is trying to build an inclusive and self-sufficient local ecosystem
Kingston, New York is a diverse city of 23,000, flanked to the east by Rondout Creek and the Hudson River and to the west by the Catskill mountains. It boasts a rustic industrial waterfront, a colorful historic district and Revolutionary War-era stone buildings. A stranger might call it bucolic. The streets of uptown are bustling with eateries and, of late, places to buy velvet halter dresses, vintage boleros, CBD tinctures, and LCD tea kettles with precision-pour spouts. But strolling by 10-year-old Half Moon Books, passersby might glimpse a different side of this city. The bookshop’s windows exclusively feature nonfiction on the end of the world as we know it. “I started out putting together a window of utopias,” says bookseller Jessica DuPont, “but somehow I ended up with the death throes of capitalism.”
I moved to Kingston from New York City just over a decade ago, on the heels of the 2008 recession. I was three years out of university, but my fledgling career in media stalled with the economic downturn. Friends of mine – two painters, one in her 30s, the other in his 40s – owned a building with an available apartment on the second floor where I could afford to live and work.
Eurozone growth came in unchanged on its third estimate: 0.2% growth in the second quarter of the year.
A minor beat on the headline year-on-year growth rate, remaining at 1.2% against 1.1% expectations, but otherwise no shocks.
Labour has confirmed that it will not vote for an election on Monday even if a bill intended to stop a no-deal Brexit passes before then.
If we vote to have a general election, then no matter what it is that Boris Johnson promises, it is up to him to advise the Queen when the general election should be. And given that he has shown himself to be a manifest liar, and someone who has said that he will die in a ditch rather than stop no deal, and indeed his adviser, [Dominic] Cummings, has been swearing and shouting at MPs saying they are leaving on 31 [October] no matter what, our first priority has to be that we must stop no deal and we must make sure that that is going to happen.
If President Xi would meet directly and personally with the protesters, there would be a happy and enlightened ending to the Hong Kong problem. I have no doubt! https://t.co/eFxMjgsG1K
A degree of calm has returned to world stock markets, after heavy selling earlier this week amid fears that the one-year trade war between the US and China was turning into a full-blown currency war. Washington branded Beijing a currency manipulator after the yuan fell sharply beyond the seven-to-one-dollar mark on Monday. This led to turmoil in financial markets – and US and UK stocks had their worst day this year.
The pound is declining again today and is trading close to two-year lows versus the dollar and the euro. It is down 0.21% against the dollar at $1.2145, not far from the 31-month low of $1.2080 reached last week. Against the euro, sterling is 0.12% lower at €1.0855, not far from the 23-month low hit yesterday.
The risk of a no-deal Brexit has increased markedly under Boris Johnson’s government. When he became prime minister a fortnight ago, he said he would take Britain out of the EU at the end of October “do or die”. Investors are also fretting about the possibility of a no-confidence vote in the new Conservative government after the summer recess, or an early general election.
There are many key dates ahead for sterling, but the passing of 5 September without a successful of no confidence in the government will in our view be a further important step along the road of a no-deal Brexit on 31 October.
The mood in financial markets is still fragile. Oil prices have hit a fresh seven-month low as traders worried about the impact of the US-China trade war on the global economy.
Brent crude, the global benchmark, fell nearly 2% to $58.57 a barrel earlier this morning and is now trading down 0.2% at $58.82 a barrel. Prices have tumbled more than 20% since hitting their 2019 peak in April.
Gold has hit a fresh six-year high, rising above $1,473 this morning, after Beijing hit back at Washington’s branding of the country as a currency manipulator.
Asian stock markets were painted red overnight but shares in Europe have stabilised, no doubt helped by the strong factory orders data from Germany this morning. Germany’s Dax has risen 0.46%, France’s CAC is up 0.67%, Spain’s Ibex has edged 0.09% higher and Italy’s FTSE MiB is 0.25% ahead.
UBS, the Swiss investment bank, has sent us its analysis of the impact of the 10% tariff on $300bn of US imports from China threatened by Donald Trump last Friday.
The direct impact of the new tariffs, if implemented, would reduce US GDP by 0.15%, and we estimate Chinese GDP growth in the next 12 months could fall by 0.25–0.5 percentage points as a result, which would push the country’s growth rate below 6% into 2020.
China’s response to recent trade escalations has been relatively measured and we expect a similar reaction this time, with retaliation involving a mix of more tariffs and non-tariff measures. Potential non-tariff measures include a managed depreciation of the yuan to mitigate the trade impact from higher tariffs, penalising select US companies operating in China, and imposing export restrictions on rare earth metals.
There is still time to find a compromise, trade talks between the US and China scheduled for September have not been called off, and investors should also consider potential offsetting factors such as rate cuts by central banks and stimulus in China. Our base case assumes a long, drawn-out negotiation process, during which tensions can occasionally flare up.
An environment of a) rising trade tensions and b) potential stimulus, including falling interest rates, is tricky for investors to navigate. While we ultimately believe that US–China tradetensions will be resolved through negotiations, we think equities may struggle to move markedly higher until there is greater certainty.
Trade war rhetoric ratchets up as Beijing responds to US claim of being ‘a currency manipulator’
China stepped up the trade war rhetoric on Tuesday, accusing the US of “deliberately destroying international order” with “unilateralism and protectionism”.
A day after Washington branded China a currency manipulator in a rapidly escalating trade dispute, China’s central bank said it “deeply regretted” the move by the US and said such behaviour “seriously undermined international rules” and damaged the global economy.
Artists ask to be paid in euros and dollars as pound continues to fall amid no-deal risk
Increasing numbers of artists are asking to be paid in dollars and euros instead of sterling because of Brexit uncertainty, the director of the Edinburgh international festival has said.
The three-week arts festival opened on Friday and includes 293 performances by 2,600 artists from 40 countries. Speaking during its opening weekend, Fergus Linehan, who has been its director since 2015, said many performers had refused to be paid in sterling.
Erdoğan’s costly move against currency speculators could prove to have major ripple effects
The battle waged by Turkey’s Recep Tayyip Erdoğan against currency speculators is a classic pyrrhic victory. The show of resolve by the self-styled strongman on Wednesday stopped investors from dumping the lira but at enormous cost in both the short and long term. That Turkey will be damaged is beyond question. All that’s in doubt is how severe that damage will be and whether the fallout will be felt elsewhere. Looking at the fragile state of the global economy, there’s every chance it will be.
The backdrop to the latest instalment of a long-running crisis is that Erdoğan is this week facing important local elections at a time when the Turkish economy is in recession. In an attempt to drum up support, Turkey’s president last week condemned Donald Trump’s decision to recognise Israeli control over the Golan heights, but this proved a spectacular own goal by convincing foreign investors that Ankara was on a collision course with Washington. The lira plunged.
Bond yields also continued to fall across the world with Australian 10-year treasury yields falling to a record low on Monday of 1.756% in what analysts see as a strong indicator of a downturn hitting the resource-rich country.
Coins expected to bring increased security to economies of British territories and dependencies
The UK’s 12-sided one pound coin is “going global”, the Treasury has announced – as overseas territories and crown dependencies will be able to design and mint their own versions of it.
The coin, which was introduced in 2017 and boasts features designed to thwart criminals trying to produce copies, has been described by the government as “the most secure of its kind in the world”.