Goldman Sachs warned that the UK could be pushed to the brink of recession due to the coronavirus, as UK stocks joined the rout of the global market as fears surrounding the coronavirus returned to haunt investors.
The FTSE 100 index
United Kingdom: UKX
down more than 2% to 6,671.54 after rising 1.45% on Wednesday, its best day since February 4. The pound
US: GBPUSD
increased to $ 1.2918 from $ 1.2873.
This is because European stocks were under pressure and American stocks fell at the start.
Goldman urged the Bank of England to “ease monetary policy considerably” by 50 basis points at its March meeting. “The virus epidemic is expected to push the UK economy to the brink of recession, the obstacle to action is low and the MPC has sufficient political space to join other major central banks in the easing of policy.
The International Monetary Fund on Wednesday made $ 50 billion in emergency funding available to low- and middle-income countries because it warned of the threat to global growth. So far, European governments have not announced serious stimulus measures. It was then that the virus continued to move away from global economies.
Opinion:The IMF promises $ 50 billion to stimulate the coronavirus. What does Europe expect?
The banking giant HSBC
United States: HSBC
UK: HSBA
was forced to clean up a section of its offices in Canary Wharf after an analyst confirmed it had the virus, Financial News reported, citing sources. Other new claims for the UK came when the low-cost regional airline Flybe collapsed, partly due to low traffic in the coronavirus.
“The coronavirus is destroying travel demand – it will speed up the process of failure and consolidation in the European airline industry,” said Neil Wilson, chief market analyst for Markets.com.
ITV actions
UK: ITV
fell after the broadcaster warned that ad spending would be badly hit by the virus, even if it exceeded first-quarter revenue forecasts. ITV management said it was too difficult to assess new implications of the virus.
Insurance and travel company Saga PLC shares
United Kingdom: SAGA
suddenly warned his cruising activity of coronavirus, although he said that his insurance unit would likely remain unharmed. Saga’s shares fell 11%.
