World News – GB – BUSINESS LIVE: August GDP up 21%

Posted: 8:08 AM EDT October 9, 2020 | Updated: 9:54 am EDT October 9, 2020

London markets opened higher despite official data showing the economy grew only 21% in August – less than the 46% analysts expected

The 2 1% figure is also down massively from the 6 4% increase recorded in July, despite help from Rishi Sunak’s Eat Out to Help Out program

But markets have followed the lead of Asian and Wall Street markets, which have grown in hopes the US government will strike a stimulus deal

In company news, the London Stock Exchange Group has agreed to sell Milan’s Borsa Italiana to pan-European stock operator Euronext for € 4 3 billion The sale depends on the group’s acquisition of the £ 21bn financial data firm Refinitiv

About one in four business leaders say working from home has caused a drop in productivity The Bureau of National Statistics also found that only 12% reported an increase in the work rate and 52% said that there was no change

Ten million homes struggled with poor broadband during the coronavirus lockdown, affecting people’s ability to work from home, new research finds

The increase in internet use during the lockdown has led more than a third of UK homes, or the equivalent of ten million homes, to experience slower connectivity

The pound was little changed after the release of the latest official figures showing a loss of momentum in the economy

The pound is stable against the dollar, but 02% lower against the euro, with £ 1 buying $ 1.294 and € 1.097 in currency markets this morning

Moreover, as the government considers further restricting people’s freedoms to fight the virus, it is clear that the road to recovery to pre-pandemic activity levels will be slow and difficult

The pace of recovery has peaked and things are likely to get worse as winter approaches before they get better again

British Chancellor Rishi Sunak will announce the next phase of the employment support program later today, which is expected to include support for workers in industries forced to close under local lockdowns, such as bars and pubs

A new wave of winners has emerged, taking advantage of changing habits brought about by lockdown and social distancing

But some of the most austere names in UK business have been cast aside as entire industries are pushed to the brink of collapse

The service sector, which accounts for 80% of the economy, grew 24% in August compared to 59% in July

The biggest contribution came from restaurants, pubs and hotels, which saw their activity increase 714%, thanks to the Eat Out to Help Out program and a boom in stays

But other businesses like travel agencies, air transport, rail transport and creative, arts and entertainment have seen their business contract

Overall, services sector growth remains 96% below February levels, before Covid hits

Rishi Sunak will today announce a new local leave program that is expected to pay two-thirds of the wages of employees who are unable to work due to lockouts

The Treasury confirmed that the Chancellor would later announce how he intended to ‘provide a safety net’ for businesses that ‘may have to close in the coming weeks’

The news pushed FTSE 100 shares up 5% to 385p, making it the UK bluchip index’s first hike this morning

The company, which owns London’s Broadgate and Paddington Central complexes, said it had collected 69% of its September quarter rent and expects collections to improve further in the coming months. weeks

The London Stock Exchange struck a € 4.3 billion (£ 3.9 billion) cash deal to sell its Borsa Italiana to Euronext in France

After weighing several offers for the Italian stock exchange, LSE entered exclusive negotiations with Euronext last month

LSE sells the company to gain approval from European regulators for its successful £ 20 billion merger with data firm Refinitiv

We continue to make good progress on the very attractive Refinitiv transaction and we are pleased to have taken this important step

We believe that the sale of the Borsa Italiana group will make a significant contribution to addressing EU competition concerns

City Index analyst Fiona Cincotta says optimism about more possible US stimulus measures overshadows disappointing UK GDP data and rising covid counts

Trump’s turnaround and talks about House of Commons Speaker Nancy Pelosi’s progress in negotiations for a full-scale fiscal stimulus package pose rally risk

Improving market sentiment is boosting demand for riskier assets such as stocks, while dampening demand for the US dollar

Homework is less productive as one in four bosses say staff are less helpful than when they are in the office, study finds

As many as 24% of companies said there was a drop in productivity when workers logged in from kitchen tables

With the threat of local lockdowns looming over consumers’ heads and redundancies in hospitality on the horizon, consumers aren’t going to dance the night away in the coming months next, spending will plummet despite the start of the busiest shopping season, and retail investors will once again revert to the saving habits we witnessed in the initial lockdown

Boosting growth will depend on containing infections Imminent new restrictions must go hand in hand with additional support for businesses, especially for hard-hit regions and sectors such as aviation, wider transport and the hotel industry

Reaching a deal with the EU also remains crucial to ensure a sustainable economic recovery Common sense and compromise must spur politicians on both sides to protect trade in goods and services between the UK and the UK. ‘EU

Much remains to be done, with GDP 92% below February level August was driven mainly by hospitality, which contributed more than half of the overall improvement in the activity thanks to the popular “Eat Out to Help Out” program

While there are positive indications from the Bank of England that growth is returning to pre-pandemic levels before Christmas, it is far from over The holiday program ends this month here and there is a real danger that the fear of unemployment will trigger a negative feedback loop of precautionary savings and weaken consumer confidence

Covid-19 cases are increasing rapidly in parts of the country, and new localized lockdowns are expected to be announced on Monday This will undoubtedly affect production as the country braces for a long and difficult winter

Britain’s economy grew only 21% in August as the recovery from the coronavirus crisis stalled despite Rishi Sunak’s Eat Out to Help Out program

Data released this morning by the Office for National Statistics showed the growth rate to be well below the 46% analysts expected

Some links in this article may be affiliate links If clicked we may earn a small commission This helps us fund This Is Money and keep its use free We do not write articles to promote the products We do not allow any commercial relationship to affect our editorial independence

Share what you think

No comments have been sent so far Why not be the first to share your thoughts with us,
or discuss this issue live on our message boards

We will automatically post your comment and a link to the story on your Facebook timeline at the same time it is posted on MailOnline To do this, we will link your MailOnline account to your Facebook account We will ask you to confirm it for your first message on Facebook

You can choose on each post if you want it to be posted on Facebook Your Facebook details will be used to provide you with personalized content, marketing and advertising in accordance with our privacy policy

This is Money is part of the Daily Mail, Mail on Sunday & Metro media group

Italian Stock Exchange, London Stock Exchange, Euronext NV, London Stock Exchange Group, Finance