Connect with us

Hi, what are you looking for?

Investing

Pound slides over fears of a double-dip recession

empty shopping mall

The economic support being offered by the government to businesses is “simply not enough” to save thousands from collapse this Christmas in the face of tough new Covid-19 restrictions and disruption at ports, industry leaders have warned.

Sterling endured its steepest daily fall in more than three months yesterday and the FTSE 100 fell 1.73 per cent as dozens of nations shut their borders to Britain after it revealed a mutated strain of Covid-19. Economists warned that the country faces a double-dip recession because of new lockdowns and deadlocked Brexit talks.

In a letter to the prime minister last night, Baroness McGregor-Smith, the president of the British Chambers of Commerce, cautioned that many businesses were “on their knees” and criticised the “constantly shifting goalposts” they are having to navigate as the government changes Covid-19 rules.

She called on Downing Street to offer greater cash grants to businesses hit by restrictions, expand business rates relief across the retail, hospitality and leisure sectors, extend VAT referrals and fill a “huge hole” in support which has left owner-directors, freelancers and others without financial support.

“Failure to act now will lead to many more businesses shutting up shop for good and will be a waste of the investment government has already made to keep firms afloat,” she wrote.

“We need businesses to survive and to be ready to power the recovery when the time comes. In short, supporting them now, will pay dividends in the future.”

The FTSE 100 fell by 112.86 points to 6,416.32 yesterday, its steepest daily drop since October. Airlines and oil stocks were hit hardest as oil prices fell. Brent crude slipped 4 per cent, or $2.23, to $50.03 per barrel.

At one point the pound traded down 2.4 per cent against the dollar, at less than $1.32. The currency pulled back as Paris suggested a European-wide protocol to end its blanket ban on inbound lorries, and last night was down 1.3 per cent at $1.334, its largest drop since September 10. Against the euro it fell 0.9 per cent to €1.092.

The yield on two-year UK government bonds hit a record low as Covid-19 curbs and the absence of a Brexit breakthrough heightened economic unease. Two-year gilts fell as low as -0.161 per cent yesterday morning.

Details of the new Covid-19 strain, which prompted Boris Johnson to impose tighter restrictions on London and much of southeast and eastern England, rattled market confidence.

Apprehension was raised by the French decision to ban all accompanied freight from the UK, causing widespread disruption on either side of the Channel. Dozens of other countries have imposed less strict travel curbs, such as banning passenger arrivals.

Ruth Gregory, senior UK economist at Capital Economics, said Covid-19 restrictions, akin to previous lockdowns, would increase the prospect of a double-dip recession in the new year.

Read more:
Pound slides over fears of a double-dip recession

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Chelsey Keith P. Ignacio Education can open the doors to abundant opportunities, from achieving one’s dream, helping the family, or even contributing to...

Economy

Sustainability has transcended trends and has become somewhat of an art form in itself. In business, it has now been refined to qualify as...

Economy

Intellicare believes that the way forward for healthcare is balancing high-touch and high-tech care. The disruption brought about by the global pandemic proved to...

Economy

The honest truth: No one came out of the COVID-19 pandemic in quite the same way. The pandemic was an isolating period of self-discovery,...

Economy

Ayala Museum and Globe bring a new cultural learning experience with the Globe Digital Gallery Ayala Museum, under the management of Ayala Foundation, Inc....

Economy

By Diego Gabriel C. Robles THE Philippine economy expanded by 7.4% in the second quarter — slower than expected — as rising inflation weighed...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

Instagram still holds the top spot for social media in terms of building brand reputation and expanding business potential. Every day, more and more...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.