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You can find the current article at its original source at https://www.theguardian.com/business/live/2020/may/21/markets-edgy-trump-china-uk-eurozone-recession-covid-coronavirus-economy-unemployment-business-live
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| Version 9 | Version 10 |
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| UK economy in 'unprecedented downturn' as activity keeps falling - business live | UK economy in 'unprecedented downturn' as activity keeps falling - business live |
| (32 minutes later) | |
| Rolling coverage of the latest economic and financial news | Rolling coverage of the latest economic and financial news |
| That late selloff came after China threatened to hit back against America if it imposes sanctions over the coronavirus pandemic. | |
| The spokesman for the country’s parliament, Zhang Yesui, told reporters that Beijing would retaliate if the US introduced legislation last week to give Donald Trump the power to sanction China. | |
| Zhang indicated that Trump was trying to cover up his own mistake over the pandemic saying: | |
| More details here. | |
| After a late stumble, Europe’s stock markets have ended the day lower than they started it. | After a late stumble, Europe’s stock markets have ended the day lower than they started it. |
| FTSE 100: down 51 points or 0.9% at 6,015 | FTSE 100: down 51 points or 0.9% at 6,015 |
| Germany’s DAX: down 157 points or 1.4% at 11,065 | Germany’s DAX: down 157 points or 1.4% at 11,065 |
| French CAC: down 51 points or 1.1% at 4,445 | French CAC: down 51 points or 1.1% at 4,445 |
| Italian FTSE MIB: down 126 points or 0.75% at 17,087 | Italian FTSE MIB: down 126 points or 0.75% at 17,087 |
| Back in the UK, shoe retailer Clarks has joined the ranks of firms cutting jobs due to the pandemic. | Back in the UK, shoe retailer Clarks has joined the ranks of firms cutting jobs due to the pandemic. |
| More than 900 head office staff will go, as the Covid-19 lockdown hits sales hard, on top of the problems on the high street. | More than 900 head office staff will go, as the Covid-19 lockdown hits sales hard, on top of the problems on the high street. |
| Our US business editor Dominic Rushe reports that some Americans have been struggling to sign on for unemployment benefit, due to huge demand: | Our US business editor Dominic Rushe reports that some Americans have been struggling to sign on for unemployment benefit, due to huge demand: |
| After that positive start, the US stock market is turning south. | After that positive start, the US stock market is turning south. |
| The Dow has now dipped by 193 points, or 0.8%, to 24,381. Oil has shed its early gains too, and European markets are in the red too as the closing bell approaches.... | The Dow has now dipped by 193 points, or 0.8%, to 24,381. Oil has shed its early gains too, and European markets are in the red too as the closing bell approaches.... |
| Bonds are strengthening, though, pushing the yield on British five-year debt below zero! | Bonds are strengthening, though, pushing the yield on British five-year debt below zero! |
| Our economics editor Larry Elliott says today’s PMI reports show we face a long trudge back to recovery, writing: | Our economics editor Larry Elliott says today’s PMI reports show we face a long trudge back to recovery, writing: |
| More here: | More here: |
| Just in: America’s economy is suffering another slump in output this month as the Covid-19 downturn persists. | Just in: America’s economy is suffering another slump in output this month as the Covid-19 downturn persists. |
| Data firm Markit has reported that the US economy is still contracting at a desperately sharp pace, although slightly slower than in April. | Data firm Markit has reported that the US economy is still contracting at a desperately sharp pace, although slightly slower than in April. |
| Its latest survey of purchasing managers found that production and new orders have tumbled at US factories. Service sector firms are suffering sharp falls in orders due to weak domestic and foreign client demand. Job cuts, unsurprisingly, were deep. | Its latest survey of purchasing managers found that production and new orders have tumbled at US factories. Service sector firms are suffering sharp falls in orders due to weak domestic and foreign client demand. Job cuts, unsurprisingly, were deep. |
| With things slightly less dire than in April, Markit’s US ‘composite PMI’ has risen to 36.4, from 27.0 in April. That indicates another very sharp contraction (50 would be stagnation). | With things slightly less dire than in April, Markit’s US ‘composite PMI’ has risen to 36.4, from 27.0 in April. That indicates another very sharp contraction (50 would be stagnation). |
| Markit explains: | Markit explains: |
| The initial claims figures, although bad, don’t capture the full extent of the jobs lost in the crisis. | The initial claims figures, although bad, don’t capture the full extent of the jobs lost in the crisis. |
| Another 2.2 million new claims were filed through the federal government’s temporary Pandemic Unemployment Assistance program. It’s designed to help gig economy workers, independent contractors and other self-employed workers, who might not be able file traditional jobless claims. | Another 2.2 million new claims were filed through the federal government’s temporary Pandemic Unemployment Assistance program. It’s designed to help gig economy workers, independent contractors and other self-employed workers, who might not be able file traditional jobless claims. |
| Wall Street is unperturbed by today’s US jobless numbers. | Wall Street is unperturbed by today’s US jobless numbers. |
| The Dow has gained 57 points or 0.2% in early trading to 24,633 points, despite traders learning that another 2.4m Americans are now on the dole. | The Dow has gained 57 points or 0.2% in early trading to 24,633 points, despite traders learning that another 2.4m Americans are now on the dole. |
| The S&P 500 is also slightly higher, having recovered a large chunk of its hefty fall in March. | The S&P 500 is also slightly higher, having recovered a large chunk of its hefty fall in March. |
| In London, the FTSE 100 has shaken off its earlier losses and is up 17 points at 6084. Top risers include Rolls-Royce (+6%) after announcing 9,000 job losses yesterday, and AstraZeneca, which says it can manufacture 1bn doses of the University of Oxford’s potential Covid-19 vaccine. | In London, the FTSE 100 has shaken off its earlier losses and is up 17 points at 6084. Top risers include Rolls-Royce (+6%) after announcing 9,000 job losses yesterday, and AstraZeneca, which says it can manufacture 1bn doses of the University of Oxford’s potential Covid-19 vaccine. |
| Back in the UK, workers at Royal Bank of Scotland are preparing to work from home for a while yet. | Back in the UK, workers at Royal Bank of Scotland are preparing to work from home for a while yet. |
| RBS told staff today that more than 50,00 of them (out of 65,000) won’t return to the office until at least the end of September. | RBS told staff today that more than 50,00 of them (out of 65,000) won’t return to the office until at least the end of September. |
| However, about 400 workers whose jobs include handling sensitive data have been asked to return to offices and call centres next month. | However, about 400 workers whose jobs include handling sensitive data have been asked to return to offices and call centres next month. |
| More here: | More here: |
| Several economists are concerned that America’s jobless claims haven’t levelled out faster: | Several economists are concerned that America’s jobless claims haven’t levelled out faster: |