Hopes of economic recovery hit by rise in Covid-19 cases – Business Live | Business


The foreign exchange trading room at KEB Hana Bank headquarters in Seoul, South Korea, today Photograph: Ahn Young-joon / AP

Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.

Hopes of a rapid rebound from the Covid-19 pandemic have taken a hit this week, as cases continue to rise and the UK imposes new restrictions to fight the virus.

This drove the US dollar to its highest level in two months today, as fears about the economic outlook push investors towards safer assets. This brought the pound below $ 1.27 for the first time since late July.

After the stock markets suffered their worst drop since June Monday, there is an autumn chill in the markets (and outside, too).

Economists fear Britain’s recovery will weaken in the coming months, as pubs are forced to close early and millions of office workers continue to work from home.

Bank of America ‘chief economist, Robert Wood, predicts that growth will stagnate in the last quarter of 2020:

“We are struggling to see how the economy can grow in the fourth quarter with increasing foreclosure measures, softened stimulus measures and Brexit risks.”


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