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Boris Johnson Gambles on Lifting Lockdown to Save U.K.’s Economy – BNN

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(Bloomberg) — Boris Johnson has launched the biggest gamble of his premiership, announcing that July will see a dramatic lifting of the lockdown measures imposed in England in March. The goal is to save the economy. The risk is that it causes a second spike in coronavirus infections.

At a news conference on Tuesday evening — the final such daily event, Johnson said, in a signal that he wants Britons to stop feeling that they’re living through a crisis — the prime minister was clear that he took full responsibility for the decision. The scientists flanking him were were clear about the dangers, and warned that the virus will be with the U.K. into 2021.

The problem faced by Johnson is balancing the potential harm of increased virus spread with the damage being done to Britain’s economy every day of the lockdown. Earlier Tuesday, government figures showed that the two main work-support programs had so far cost more than 30 billion pounds ($38 billion). Ministers worry about how many of the 9.2 million jobs being supported will disappear once the programs end.

Johnson’s message to the public was clear: Get out of your homes and get spending. “It’s great to see people out shopping again,” he said. “I can’t wait to go to a pub or a restaurant. People need to enjoy themselves.”

Johnson Re-Opens England’s Pubs But Scientists Warn of Long Haul

At the end of his answer, he inserted a crucial caveat: “I also want to see everybody being careful and following the guidance.” And he repeated that if the virus began to spread again, he would reimpose restrictions.

But his emphasis was clear. Pubs, restaurants and hotels can reopen from July 4. To give their businesses a chance of working, the advice to people to keep a 2 meter distance from others has been changed: The distance is now 1 meter, so long as other mitigating measures are in place.

Scotland, Wales and Northern Ireland will make their own decisions about how and when to ease the lockdown.

This means that for all Johnson’s drive to get life back to normal, it will still feel very different in July. Pubs will have to introduce table service and ordered queues, to replace the usual crowd at the bar trying to catch the landlord’s eye. Churches can open, but without singing. Weddings can go ahead, but with a maximum of 30 guests.

In early March, the scientists advising the government warned that to lock down too early would risk a frustrated public starting to simply ignore it. Now the fear is in the opposite direction, that consumers will be too nervous to come out and spend.

A poll from YouGov in mid-June found only 26% of people saying they’d be comfortable visiting a pub — though twice that said they’d be happy to sit in the garden of one. In an effort to boost confidence, ministers spent Tuesday tweeting about their enthusiasm to get into a pub again — even Chancellor of the Exchequer Rishi Sunak, who doesn’t drink.

Cautions, Calculations

But if the politicians were sending one signal, the scientists were sending a quite different one. Chief Medical Officer Chris Whitty, standing alongside Johnson, warned: “If people hear a distorted version of what’s been said that says ‘this is all fine now, it’s gone away’ and start to behave in ways that they normally would have before the virus, then we will get an uptick, for sure.”

Johnson’s calculation is that the U.K. is better-placed than it was in March to face such a rise. Its testing capacity is greatly expanded, it has many more ventilators, and the treatment of Covid-19 is better understood.

But despite Johnson’s attempt to argue that the country was proceeding on the course to ease the lockdown that he set out in May, things have not been going entirely to plan. In the last seven days, an average 121 people died from the disease a day, and the average number of infections detected was 1,147. The mobile phone app that was supposed to sit at the heart of the contact-tracing program is nowhere in sight.

And also on Tuesday, the Office for National Statistics reported that between Jan. 1 and June 12, there were 54,402 more deaths in England and Wales than average, another sign that the U.K. has been the hardest-hit country in Europe.

While Johnson was trying to get the country to move on from the virus, there was a reminder that elsewhere too, politics can be difficult. Despite having a parliamentary majority of 80, the prime minister suffered his first defeat, on a vote about disciplinary procedures for members of the House of Commons, after 45 Conservatives voted against the party whip, including his predecessor Theresa May and Treasury Minister Penny Mordaunt. And on Wednesday, the opposition Labour Party is calling a debate on Housing Secretary Robert Jenrick’s handling of a planning application made by a Tory donor.

©2020 Bloomberg L.P.

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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