Good morning and welcome to Money Minute, your comprehensive preview of this week’s biggest financial stories. Last week was yet another historic week for markets – we seem to be having a lot of those lately.
The European Central Bank also boosted its own bond-buying programme, and in the US, the Federal Reserve slashed interest rates to 0%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Perhaps more importantly, around the world, governments laid out plans to do “whatever it takes” to keep economies ticking over while the coronavirus shuts down activity across the world. Will these moves be enough?
We are starting to see the damage that the shutdown has already done. US weekly jobless claims rocketed last week and this is only the beginning. We can expect far more layoffs in the weeks and months to come.
The key to avoiding a depression rather than a deep recession arguably lies with preventing job losses where possible, providing a generous cushion for people who do lose their jobs, and making sure that the layoffs are temporary.
That’s a far more complicated and politically fraught task than propping the banks up was in 2008. So expect to see a lot of policy twists and turns in the coming weeks.
As for economic data – the UK will see the latest house price and inflation data, but those figures are likely to be of limited value this week. Of more interest will be German consumer sentiment, which will register the full impact of coronavirus fears.
And of course, keep an eye on coronavirus infection data – markets have already priced in a drastic recession but even as Britain goes into hibernation, concerns about the potential for a second wave are likely to creep up the radar.
-
Norfolk or Norway? Holidays you can afford with different-sized pension potsMany people look forward to taking more holidays when they retire. But what sort of trips could your pension buy you? We look at the holidays to match different retirement incomes
-
Q&A: Issac Thong – new lead manager of Aberdeen Asian Income Fund
-
UK wages grow at a record paceThe latest UK wages data will add pressure on the BoE to push interest rates even higher.
-
Trapped in a time of zombie governmentIt’s not just companies that are eking out an existence, says Max King. The state is in the twilight zone too.
-
America is in deep denial over debtThe downgrade in America’s credit rating was much criticised by the US government, says Alex Rankine. But was it a long time coming?
-
UK economy avoids stagnation with surprise growthGross domestic product increased by 0.2% in the second quarter and by 0.5% in June
-
Bank of England raises interest rates to 5.25%The Bank has hiked rates from 5% to 5.25%, marking the 14th increase in a row. We explain what it means for savers and homeowners - and whether more rate rises are on the horizon
-
UK inflation remains at 8.7% ‒ what it means for your moneyInflation was unmoved at 8.7% in the 12 months to May. What does this ‘sticky’ rate of inflation mean for your money?
-
VICE bankruptcy: how did it happen?Was the VICE bankruptcy inevitable? We look into how the once multibillion-dollar came crashing down.
-
Would a food price cap actually work?Analysis The government is discussing plans to cap the prices of essentials. But could this intervention do more harm than good?
