Britain warns of ‘significant’ impact to economy as it unveils £30 billion coronavirus strategy, while U.S. mulls measures - MarketWatch | Canada News Media
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Britain warns of ‘significant’ impact to economy as it unveils £30 billion coronavirus strategy, while U.S. mulls measures – MarketWatch

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5 years ago

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Britain faces a “significant but temporary impact” to its economy due to the escalating global effect of coronavirus, Chancellor Rishi Sunak warned on Wednesday.

The former Goldman Sachs banker, who took the position as head of the U.K.’s finances just four weeks ago, used his first budget announcement to unveil a £30 billion ($39 billion) spending boost to tackle the impact of coronavirus and support the economy.

Measures include:

• A £5 billion emergency fund to help the National Health Service bolster its resources

• A loan scheme for banks to support small businesses to the tune of £1.2 billion

• Support for workers in the gig economy with sick pay available to everyone self-isolating

• Relaxation or delays to paying some taxes including business rates, a levy based on property.

This is the first budget of a new government lead by Prime Minister Boris Johnson, the first of a new decade, and the first since the UK’s departure from the European Union earlier this year.

Read:In the U.K., you’re either a Leaver or Remainer. Bridging that Brexit divide isn’t easy.

Sunak said: “I want to set out our economic response. So that we bring stability and security. The British people may be worried but they are not daunted. Our economy is robust, our public finances our sound, our public services are well prepared.

“The challenge is that there is likely to be a temporary disruption to our economy on the supply side. Up to a fifth of the working age population could need to be off work at any one time, and business supply chains are being disrupted around the globe.

“This combination of people being unable to work and businesses being unable to access goods will mean that for a period our productive capacity will shrink.”

Sunak said the Office for Budget Responsibility, which provides independent analysis of public finances, had “slightly” reduced its forecast for GDP growth to 1.1% in 2020 from a forecast of 1.4% the same time last year.

The government has teamed up with the Bank of England in a coordinated attack on coronavirus. The central bank cut interest rates on Wednesday by 50 basis points to 0.25% in a surprise move.

Read: Pet dog in Hong Kong found to have ‘low level’ of coronavirus

The U.S. may follow the U.K’s lead – but Treasury Secretary Steven Mnuchin said on Wednesday a robust stimulus bill would have to wait as it won’t be able to pass Congress quickly. Instead he supported a smaller measure to help small businesses and workers tackle the virus.

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Economy

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

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2 days ago

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September 13, 2024

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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)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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3 days ago

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September 13, 2024

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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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Economy

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

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3 days ago

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September 12, 2024

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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)

The Canadian Press. All rights reserved.

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