The British economy plunged into its deepest recession on record in the second quarter, taking it back to the size it was in 2003. Official statistics showed gross domestic product fell by 20.4 per cent between April and June, compared to with the previous quarter.
The downturn caused by the pandemic was more severe in Britain than other major economies in Europe and North America. The second-quarter decline in economic output was twice as deep in Britain as in the United States.
Britain has the challenge of coming out of a much deeper hole because of the length of the blockade set to limit the spread of the coronavirus. The Office for National Statistics said the blockade measures were in place in Britain for a larger part of this three-month period than those for other economies. Britain was relatively slow in introducing a national stalemate compared to most of its European neighbors. It started in earnest at the end of March and the government did not start lifting the wider restrictions until mid-June. Its blockages also affect a larger portion of the population for a longer period than state-to-state closures in the United States.
A monthly split showed the British economy picked up in June, climbing to 8.7 per cent from May as construction activity began and consumer spending bounced back. However, the Bank of England said last week that it did not expect the recovery to be completed by the end of 2021.
In an effort to keep recovery from stagnation, the government is encouraging people to return to work in offices and is planning to reopen schools next month. The Treasury also spent more than milion 53m ($ 69m) last week as part of a stimulus plan by paying discounts on frozen food at restaurants and drinks on Monday, Tuesday and Wednesday this month.
The future of U.S. stocks rose and global markets were shaken on Wednesday as reports from Washington suggested little progress toward reaching a deal on a coronavirus rescue package and the release of new economic data in Britain showed the depth of the pandemic number. .
The future for the S&P 500 rose by almost 1 percent, showing a profit when trading begins. European stocks rose higher, led by Britain’s FTSE 100. Asian indices spread, with Hang Seng in Hong Kong gaining 1.4 percent while China’s Shanghai Composite losing 0.6 percent at the end of the trading session.
On Wall Street, the future was looking forward to a good start for trading, a day after the first fall of the S&P 500 in eight trading sessions. The S&P 500 had wanted to close its February 19 at 3386.15 earlier in the day. U.S. 10-year Treasury records declined, indicating some appetite for more risky bets among investors, and the future of oil was on the rise. Gold, which has fallen from its recent levels above $ 2,000 an ounce, now has a local price of around $ 1,930.
In Washington on Tuesday, there was little or no negotiation of a new bailout package for unemployed Americans and businesses in difficulty, five days after talks broke down between senior Democratic lawmakers and the White House. August is usually quiet on Capitol Hill and there has been no apparent attempt to find a way back to the negotiating table.
The cost of the pandemic was on display in Britain, where the government released data showing that the economy shrank by more than 20 percent in the April-June quarter, when the economy was in control of a blockade to curb the spread of the virus. This was not only the biggest record drop in Britain, but the worst collapse for the second quarter between European and North American countries.
There was a glimmer of good news: Economic activity in Britain grew by more than 8 per cent in June as construction activity resumed and consumer spending rebounded.
A venture supported by the owner of Barneys New York has won an offer to buy Brooks Brothers, America ‘s oldest clothing company, for $ 325 million.
Sparc Group, a venture involved Authentic brands, the new owner of Barneys, and Simon property, the largest merchandise 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 retailer, filed for bankruptcy protection last month. It has struggled with declining sales in recent years as more and more in the corporate world have chosen a more casual look.
The brand was among several high-profile retailers, including JC Penney, Neiman Marcus and J. crew, whose businesses were unable to reverse the decline in sales coming from the coronavirus pandemic.
A court hearing to approve the sale is set for Friday, the Brooks Brothers in a statement Tuesday, and the deal is expected to be completed by the end of this month.
Authentic and Simon initially made a “strict horse” bid of $ 305 million, setting a price tag for bids at the bankruptcy auction.
Tencent, the Chinese company that owns the messaging app WeChat targeted by President Trump, reported Wednesday that net profit rose 37 percent for the second quarter. Revenues from online games jumped 40 percent as pandemic blockades kept people inside. The company is preparing for a US ban on WeChat.
Tesla the highest traded shares after announcing on Tuesday that its board had approved a five-to-one split in its flight shares. The company’s stock valuation has risen more than 500 percent over the past year, making Tesla one of the most valued car companies in the world, even though it sells far fewer vehicles than its industry peers. Tesla shares closed at $ 1,374.39 on Tuesday and jumped more than 6 percent in extended trading.
Corporate restructuring in WarnerMedia went on vacation in it DC entertainment The division, the home of DC Comics and the DC Universe streaming platform, are part of an arrangement that will reduce the head count by 600. Nearly 50 people at DC Comics have been fired, said two people familiar with the decision who spoke on condition of anonymity because was not publicly announced. DC Direct, the company division dedicated to collectives, will close in November, these people said. The move comes after the ouster of three top executives on Friday in a shake-up by new WarnerMedia chief executive Jason Kilar, who is rebuilding the company to focus more HBO Max, its new broadcasting service. WarnerMedia, a division of AT&T, began a substantial round of vacation on Monday.
In the heart of Manhattan, the national chains involved JC Penney, Kate Spade, subway and Le Pain Quotidien have closed the branches for good. Many other major brands as well Victoria’s Secret and gap, have kept their high profile seats closed in Manhattan while reopening in other states.
Although the city has improved the virus and is slowly reopening, there are ominous signs that some national brands have begun to leave New York. The city is home to many flagship shops, chains and high-profile restaurants that tolerated astronomical rents and other costs due to New York’s global coffin and the credible attack of tourists and travelers.
For four months, the Victoria’s Secret flagship store in Manhattan’s Herald Square has closed and is not paying its $ 937,000 monthly rent. “It will be years before the retailer has another chance to return to New York City in its pre-Covid form,” the retailer’s parent company recently told its owner in a legal document.
Some familiar chains, as well Shake the hut and Chipotle, report that their stores in New York were performing worse than others elsewhere, investment analysts said.
Michael Weinstein, chief executive i Checkout restaurant, who owns Bryant Park Grill & Cafe and 19 other restaurants, said he would never open another restaurant in New York.
“There is no reason to do business in New York,” said Mr. Weinstein. “I could do the same volume in Florida on the same square foot as I would in New York, with my expenses being much less. The idea was that branding and locations were important, but the cost of being in this “They have overcome the marketing group that says you have to be there.”