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US Stock Futures Gain as Market Weighs Virus Cases, Economy – BNN

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(Bloomberg) — U.S. stock index futures rose in Asia on Monday as investors focused on the prospects for an expansion of economic stimulus to help counter the impact of the spreading global pandemic.

September contracts on the S&P 500 rose 0.9% as of 11:12 a.m. in Tokyo, after an advance of 4.1% last week. Futures on the Dow Jones Industrial Average rose 1% and those on the Nasdaq 100 Index added 1.2%. U.S. financial markets were closed on Friday before Independence Day on July 4.

“Asia markets look set for mixed moves going into the fresh week with concerns still centered on the continued Covid-19 spread, all weighed against the continued data optimism,” Jingyi Pan, a market strategist at IG Asia, wrote in a note. “With U.S. states continuing to post record cases into the July 4 weekend and the World Health Organization likewise having reported a one-day high in global infections over the weekend, the battle between the Covid-19 drag and improving economic conditions continues.”

Coronavirus cases in the U.S. increased by almost 56,000 on Sunday, a 2% rise that outpaced the 1.8% average daily increase over the past week, according to Johns Hopkins University.

June employment data came in stronger than forecast on Thursday. Goldman Sachs Group Inc. economists revised down their estimates for the U.S. economy this quarter, but predicted it will be back on track in September after some states imposed fresh restrictions to combat the coronavirus. Congress is set to resume talks on the next stimulus bill later this month.

©2020 Bloomberg L.P.

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City Council approves ideas meant to stimulate the local economy – EverythingGP

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Photo by Curtis Galbraith

By Curtis Galbraith

City Hall

Aug 12, 2020 5:30 AM

City Council has decided how it wants to allocate some of the money in an economic recovery fund set up in response to the pandemic.

The biggest share, $450,000, will go into the Beautification & Patio Grant for businesses across the city. The grants would cover half the cost, up to $15,000, of adding a patio or improving signage, facades, or landscaping.

Mayor Bill Given says the city wants to stimulate the economy by having owners re-invest in their businesses.

“This new program is essentially modelled after our very successful Downtown Incentive Program. (It) led to the redevelopment of a lot of the facades on downtown businesses was also a matching grant program and for every $1 the city invested in that program; we saw about $4 in actual economic activity happen. So, we saw this as a really great opportunity for those property owners who are interested and willing to partner with the city in upgrading their businesses and improving the general appearance of the community and that is something that puts tradespeople to work immediately.”

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UK crashes into deepest recession of any major economy – CNN

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This crash in GDP in the April-June period is the worst since quarterly records began in 1955 and follows a 2.2% contraction in the first quarter. Industries most exposed to government lockdown measures to contain the coronavirus pandemic — services, production and construction — saw record drops.
Boris Johnson's dream of a 'Global Britain' is turning into a nightmare
“Today’s figures confirm that hard times are here,” UK finance minister Rishi Sunak said in a statement. “Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will. But while there are difficult choices to be made ahead, we will get through this, and I can assure people that nobody will be left without hope or opportunity.”
Compared with the end of 2019, UK economic output fell by a cumulative 22.1% in the first six months of 2020, a worse outcome than Germany, France and Italy, and double the 10.6% fall recorded in the United States, the Office for National Statistics said.
“The larger contraction primarily reflects how lockdown measures have been in place for a larger part of this period in the UK,” the ONS added.
Britain imposed a strict lockdown two weeks later than Italy, 10 days after Spain and a week after France, despite swelling coronavirus cases. That meant it took longer to get the spread of the virus under control, which prolonged the need for restrictions that kept many businesses closed.
For example, Italy allowed restaurants, cafes and hairdressers to reopen in the middle of May, whereas the United Kingdom waited until July 4 to do the same.
Could the United Kingdom become an emerging market?Could the United Kingdom become an emerging market?
An easing of some lockdown restrictions in June, including the reopening of nonessential shops, delivered an immediate boost to the economy, with GDP increasing 8.7% on the previous month, according to the ONS.
The UK economy is heavily reliant on services and household spending, both of which posted record declines in the second quarter, as consumers who were holed up at home spent less money and saved more. In addition, millions of workers were furloughed and many have now been laid off.
The UK economy has shed 730,000 jobs since the coronavirus pandemic shuttered businesses in March, with the young, the old and the self-employed bearing the brunt of the unemployment crisis.
Kallum Pickering, a senior economist at Berenberg, said the GDP figures do not bode well for the rest of the year.
“Typically, recession data are subject to heavy revisions,” he said in a research note. “Nevertheless, taken at face value, the bigger-than-expected contraction suggests some downside risk to our call of a 9.5% contraction in full year 2020.”

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U.K. economy officially in recession after 20.4 per cent Q2 slump – CTV News

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LONDON —
The U.K. economy has officially fallen into a recession after official figures showed it contracting by a record 20.4 per cent in the second quarter as a result of lockdown measures put in place to counter the coronavirus pandemic.

The slump recorded by the Office for National Statistics follows a 2.2 per cent quarterly contraction in the first three months of the year. As such, the U.K. economy is in a recession — commonly defined as two quarters of negative growth.

Unlike other countries, Britain’s statistics agency provides monthly figures to accompany the quarterly numbers and these show some hope that the economy is healing in the wake of the easing of some lockdown restrictions. In June, when shops selling non-essential goods were allowed to reopen, the British economy grew by a monthly rate of 8.7 per cent.

“The economy began to bounce back in June with shops reopening, factories beginning to ramp up production and house-building continuing to recover,” said statistician Jonathan Athow.

Despite this, he said the economy remains a sixth below its level in February, before the virus started to impact.

The British government hopes that the further easing of the economy over recent months, such as the reopening of the hospitality sector in July, will allow the economy to claw back further ground.

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