Good morning, and welcome to our renewed coverage of the global economy, financial markets, the eurozone, and business.
Global stock markets begin the new week steadily, as the rise in Covid-19 cases and US political tensions cause investor anxiety.
Shares across Asia are lower, with Hong Kong’s Hang Seng dropping 1.5% and Australia’s S & P / ASX 200 index falling 0.7%. European markets just opened lower as well.
London FTSE The 100 may fall more than 90 points, or 1.6%, at the open as the possibility of a second national shutdown looms. Travel companies, bar chains, hotel groups and banks were among the most retired (More on that soon).
Leading British government scientists, Chief Medical Officer Chris Whitty and Chief Scientific Adviser Patrick Vallance, will warn the public today that the UK has reached a critical point. The UK saw 3,899 new cases and 18 deaths on Sunday.
The trend in the UK is going in the wrong direction and we are at a critical point in the pandemic.
We are looking at the data to find out how to manage the spread of the virus before the very difficult winter period. “
Mayor of London, Sadiq KhanToday, council leaders are meeting to discuss whether the capital should impose more restrictions, in an effort to curb the rise in infections.
The new shutdown will hurt travel companies, bar chains, and hotels badly (which is why IAG, JD Wetherspoons and Whitbread shares fell Friday)
Cases continue to rise worldwide, with France reporting more than 10,000 new infections, Brazil’s 16,000, and the United States reporting nearly 40,000.
Stephen Innes From Axicorp He warns that Europe is facing some very difficult months:
In fact, the winter months can be one of the most bitter hurdles as it is only in September, and there are other healthcare concerns in Europe where the Covid virus is on the rise again. In the UK, London Mayor Khan is expected to request more sweeping lockdown measures due to the Covid curve moving in the wrong direction.
Another disturbing sign of the market is that UK Chief Medical Officer Chris Whitty and Chief Scientific Officer Patrick Vallance will hold a press conference at 1100 GMT. The prime minister will not be there. British media has widely reported that they will say the country is going in the wrong direction with the coronavirus. The press also indicates that this week the government will consider whether to impose new national systems of social distancing and to what extent.
Investors are also losing hope that the US Congress will approve new emergency aid to help the US economy.
Veteran Supreme Court judge dies Ruth Bader Ginsburg It sparked a massive political battle over whether President Trump should nominate her successor, or whether such a crucial decision should wait until the November elections.
Republicans (who blocked Barack Obama from being chosen in 2016) are determined to move quickly this time – making it difficult to agree on bilateral cooperation for a new stimulus package.
We’ll also hear from Christine Lagarde, the top central bank governor in the Eurozone today, as well as the latest economic forecasts from the Bundesbank.
schedule of work
- 11 am GMT: German Bundesbank monthly report
- 1.45pm GMT: European Central Bank President Christine Lagarde addresses the Franco-German Parliamentary Assembly