The UK economy sank into its most record recession in the second quarter, bringing it back to the size it was in 2003. Official statistics show that gross domestic product fell 20.4% between April and April. June, compared with the previous quarter.
The collapse caused by the pandemic in Britain was harsher than other major economies in Europe and North America. Economic output fell in the second quarter in Britain twice as deep as in the US.
The UK had the challenge of escaping from a much deeper pit because of the lengthy lock-outs to limit the spread of coronavirus. The National Bureau of Statistics said closing measures were in place in the UK for a large portion of this three-month period compared to other economies. The UK is relatively slow in issuing national sanctions compared to most of its European neighbors. It started in earnest in late March, and the government didn’t start lifting its widest restrictions until mid-June. Its closure also affected a larger proportion of the population over a longer period of time than the state-by-state closures in the United States.
The monthly analysis showed that the UK economy was on the rise in June, up 8.7% from May as construction continued and consumer spending recovered. However, the Bank of England said last week it does not expect a recovery to be complete until the end of 2021.
In an effort to keep recovery from stalling, the government is encouraging residents to return to the offices and they are planning schools to reopen next month. The Ministry of Finance also spent more than £ 53 million ($ 69 million) last week as part of a stimulus plan to pay discounts for meals at restaurants and pubs on Mondays and Tuesdays. and Wednesday this month.
U.S. equities futures rose and global markets wavered on Wednesday, after reports from Washington showed little progress in reaching a coronavirus rescue package deal and the release of economic data. The new UK economy shows the impact of the pandemic.
S&P 500 futures were up almost 1%, showing a boost as trading started. European shares rose higher, led by Britain’s FTSE 100. Asian indices were volatile, with Hong Kong’s Hang Seng up 1.4% while China’s Shanghai Composite lost 0.6% at the end of the session.
On Wall Street, futures are predicting an upbeat trading start, a day after the S&P 500’s first drop in eight trading sessions. The S&P 500 was close to hitting a Feb. 19 close high of 3386.15 earlier in the day. US 10-year treasury bonds have declined, suggesting that some investors want to bet more risks and oil futures are on the rise. Gold, which has fallen from a recent high of over $ 2,000 an ounce, is currently priced at around $ 1,930.
In Washington on Tuesday, there was little or no negotiations on a new bailout package for unemployed Americans and struggling businesses, five days after talks broke down between lawmakers Top of the Democratic Party and the White House. August is usually quiet on Capitol Hill, and there is no obvious attempt to find a way back to the negotiating table.
The costs of the pandemic have been shown in the UK, where the government released data showing the economy fell more than 20% in the quarter from April to June, as the economy was in restraint. limit the spread of the virus. It was not only the strongest drop in a record in the UK, but also the worst second-quarter collapse in European and North American countries.
There’s good news: Economic activity in the UK rose by more than 8% in June, as construction resumed and consumer spending rose again.
A joint venture is backed by its owner Barneys New York won the bid to buy The Brooks Brothers, America’s oldest garment company, at $ 325 million.
Sparc GroupOne joint venture included True brand, new owners of Barneys, and Property Simon, the largest mall operator in the United States, will save at least 125 Brooks Brothers stores as part of the deal. Brooks Brothers, a 200-year-old men’s clothing retailer, filed for bankruptcy protection last month. It has struggled with declining sales in recent years as many in the corporate world have opted for a more casual look.
The brand is among a number of well-known retailers, incl JC Penney, Neiman Marcus and J. Crew, their businesses were unable to weather the coronavirus drop in sales.
Brooks Brothers said in a statement on Tuesday there will be a court hearing to approve the sale scheduled for Friday, and the deal is expected to close by the end of this month.
Authentic and Simon initially launched a “pack horse” offer of $ 305 million, setting a floor price for auctions in the bankruptcy auction.
TencentThe Chinese company owns the messaging app WeChat President Trump’s target, reported Wednesday that net profit rose 37% in the second quarter. Online gaming revenue soared 40% as the door-locking pandemic left everyone indoors. The company is preparing for a US ban on WeChat.
Tesla Shares traded higher after Tuesday’s announcement that their board had approved a five-to-one split against its soaring stock. The company’s stock price has risen more than 500% from last year, making Tesla one of the most highly regarded car companies in the world, even though they sell much fewer cars than the companies. same sector. Tesla shares closed at $ 1,374.39 on Tuesday and rose more than 6% in extended trading.
The business restructuring at WarnerMedia continue with the layoffs in DC Entertainment division, home of DC Comics and streaming platform DC Universe, part of the overhaul will drop 600 heads. Nearly 50 people at DC Comics have been fired, two people with knowledge of the decision have been told on condition of anonymity as it has not been made public. DC Direct, the company’s collectibles division, will close in November, they said. The move comes after the top three executives were scrapped Friday in a rocking up by WarnerMedia’s new chief executive, Jason Kilar, who is re-running the company to focus more on HBO MaxIts new, streaming service. WarnerMedia, a division of AT&T, has begun a substantial layoff on Monday.
In the heart of Manhattan, the national chain is included JC Penney, Kate Spade, Subway and Le Pain Quoprisen has closed branches for good. Many other major brands, like Victoria’s secret and Gap, has closed their popular sites in Manhattan, while reopening in other states.
Even with the city already raging with the virus and slowly reopening, there are ominous signs that some national brands are starting to ditch New York. The city is home to many of the top stores, chains and restaurants that withstand astronomical rents and other costs due to New York’s global cache and the trusty onslaught of tourists and people. go to work.
For four months, Victoria’s Secret flagship store at Herald Square in Manhattan was closed and didn’t pay $ 937,000 in monthly rent. The retailer’s parent company recently told the owner in a legal document: “It will be many years before the opportunity to return to New York City in Covid form.
Some popular chains, like Shack Shack and Chipotle, reported that their stores in New York performed worse than others elsewhere, investment analysts said.
Michael Weinstein, CEO of Restaurants in Ark, who owns Bryant Park Grill & Cafe and 19 other restaurants, said it will never open another restaurant in New York.
“There’s no reason to do business in New York,” Weinstein said. “I can do the same amount in Florida with the same amount of space as in New York, at my expense much less. The idea is that the brand and the location are important, but the cost in this city surpasses the marketing team that says you have to be there. “