Daniel Casali provides a round-up of key market activity during the week of 6th July.
- European banks have been paid €13.2bn (£11bn) worth of fees due to Coronavirus. This comes after the Federal Reserve’s stress tests suggested that European banks will have sharp losses due to the pandemic.
- UK employers planning to make furloughed workers redundant may face regulations forcing them to pay back wages previously paid by taxpayer money.
- Positive news for the retail sector in Europe as sales rose by a record amount of 17.8% between April and May.
- A second wave of COVID-19 could cause unemployment in the UK to reach 15% by the end of 2020, the Organization for Economic Co-operation and Development has suggested. Furthermore, the OECD have called for governments to reduce wage subsidies and move workers away from ‘shrinking sectors.’
- Rishi Sunak announced £30bn of funding to help the UK recovery for COVID-19. This included a ‘Job Retention Bonus’ of £1,000 per employee, VAT cuts in certain sectors and changes to stamp duty on housing.
- Boots and John Lewis are set to cut 5,300 jobs and close over 50 stores, between them, as they feel the impact from lockdown and a shift towards online shopping.
- US weekly jobless claims continued to show improvement with 1.3m new claimants, down from 1.41m the previous week.
- British retailers have warned that in the case of no Brexit trade deal, household staples will increase in price. The British Retail Consortium suggested that the price of beef imported from the Republic of Ireland will go up 48%
- Rating agency Standard and Poor’s have said they expect banks across the world to write off $2.1trn in debts over the next two years. Moreover, these losses have the capacity to eradicate 75% of bank’s profits for this year and 40% for next year.
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