Money Minute, Monday 9 March: the Budget, a possible interest-rate cut and news from Korea

This week chancellor Rishi Sunak issues his first Budget, the Bank of England and European Central Bank may consider rate cuts, and the latest data from South Korea could give us clues to the effects of the coronavirus on the global economy.

Good morning and welcome to Money Minute, your comprehensive preview of this week’s biggest financial stories.

Last week, fears about the economic impact of the coronavirus continued to wreak havoc on markets. Government bond yields in the US touched new record lows, as investors bet on the Federal Reserve being forced to cut interest rates even further to cushion the economy against recession. So what does this week hold on the data front?

The biggest event for UK investors next week is the Budget on Wednesday afternoon. The new chancellor, Rishi Sunak, already had a lot on his plate, having been parachuted into the role at the last minute. Now he not only has to lay out the Conservative government’s plans for economic policy for the next few years, but he also has to take into account the impact of the coronavirus, particularly on small and medium-sized businesses.

Following last week’s dramatic emergency rate cuts by both the Fed and the Canadian central bank, investors also expect the Bank of England to announce some sort of action in co-ordination with the government.

Over in the eurozone, a central bank meeting is scheduled for Thursday. Interest rates in the eurozone are already at rock bottom levels, but investors expect at least some sort of action to be taken, simply because the European Central Bank can’t be seen to be doing nothing while all around are cutting rates. New boss Christine Lagarde was probably hoping she’d have more time to ease into the job before crisis struck again – no such luck.

Elsewhere, all eyes will be on Asia for indications as to how the spread of the virus has impacted on activity over there. South Korea, where the rate of infection appears to be levelling out, releases trade data for the first 10 days of March on Tuesday. Imports and exports slid in February, due to China’s factory shutdowns.

The latest data is unlikely to show a dramatic improvement, and may also give an idea of just how big an impact the virus is having on global trade.

Recommended

Money Minute Thursday 9 January: EU withdrawal, plus eurozone and US jobs figures
Economy

Money Minute Thursday 9 January: EU withdrawal, plus eurozone and US jobs figures

Today's Money Minute looks ahead to the vote on the government's EU withdrawal bill and the latest employment figures for the eurozone and the US.
9 Jan 2020
Money Minute Wednesday 8 January: UK house prices and Chinese inflation
Economy

Money Minute Wednesday 8 January: UK house prices and Chinese inflation

In today's Money Minute we look ahead to the latest report on house prices from Halifax; plus inflation in China and European business confidence.
8 Jan 2020
Money Minute Tuesday 7 January: will US services fare better than manufacturing?
Economy

Money Minute Tuesday 7 January: will US services fare better than manufacturing?

Today's Money Minute looks ahead to the latest figures from America's services sector, plus the health of the eurozone's retail sector.
7 Jan 2020
Money Minute Monday 6 January: the week ahead
Economy

Money Minute Monday 6 January: the week ahead

In today's Money Minute, we take a look ahead to this week’s biggest financial stories, including UK house prices and American wages.
6 Jan 2020

Most Popular

The Bank of England should create a "Bitpound" digital currency and take the world by storm
Bitcoin

The Bank of England should create a "Bitpound" digital currency and take the world by storm

The Bank of England could win the race to create a respectable digital currency if it moves quickly, says Matthew Lynn.
18 Oct 2020
Don’t miss this bus: take a bet on National Express
Trading

Don’t miss this bus: take a bet on National Express

Bus operator National Express is cheap, robust and ideally placed to ride the recovery. Matthew Partridge explains how traders can play it.
19 Oct 2020
Three stocks that can cope with Covid-19
Share tips

Three stocks that can cope with Covid-19

Professional investor Zehrid Osmani of the Martin Currie Global Portfolio Trust, picks three stocks that he thinks should be able to weather the coron…
12 Oct 2020