The UK economy fell to its deepest recession on record in the second quarter, returning to its current high in 2003. Official statistics show that gross domestic product fell by 20.4 per cent between April and June, compared with the previous quarter.
The pandemic-induced column was sharper in Britain than other major economies in Europe and North America. The fall in second-quarter economic output was twice as deep in Britain as in the United States.
Britain has the challenge of getting out of a much deeper hole because of the length of the lockdown that is being imposed to limit the spread of the coronavirus. The Bureau of National Statistics said lockdown measures in Britain were for a greater part of this three-month period than for other economies. Britain was relatively slow to introduce a national lockdown compared to most of its European neighbors. It finally started in late March and the government did not start lifting the broadest restrictions until mid-June. Its lockdowns also affected a larger portion of the population for a longer period than the shut-off state in the United States.
A one-month breakdown showed that the UK economy recovered in June, rising 8.7 per cent from May when construction activity returned and consumer spending returned. However, the Bank of England said last week that it did not expect the recovery to be complete by the end of 2021.
In an effort to halt the restoration, the government is encouraging people to be able to return to work and it is planning to reopen schools next month. The treasury also spent more than £ 53 million ($ 69 million) last week as part of an incentive plan that pays for meal discounts at restaurants and pubs on Mondays, Tuesdays and Wednesdays this month.
Global stocks faltered on Wednesday after Washington reports suggested little progress in reaching an agreement on a coronavirus rescue package and the release of fresh economic data in Britain showed the depth of the pandemic’s toll.
European equities edge higher, led by Britain’s FTSE 100, which gained 0.8 per cent. Asian indices also slept, with Hong Kong’s Hang Seng gaining 1.4 percent, while China’s Shanghai Composite lost 0.6 percent at the end of the trading session.
On Wall Street, futures predicted an upbeat start to trading, a day after the first drop of the S&P 500 in eight trading sessions. US 10-year Treasury notes fell, indicating some appetite for riskier bets among investors, and oil futures were on a rise. Gold, which has fallen from its recent high above $ 2,000 an ounce, now has a spot price of around $ 1,930.
In Washington on Tuesday, there were few or no negotiations on a new relief package for Americans without work and wrestling with companies, five days after talks shrank between top Democratic lawmakers and the White House. August is typically quiet on Capitol Hill, and there were no obvious efforts to find a way back to the negotiating table.
The cost of the pandemic was seen in Britain, where the Bureau of Statistics published data showing that the economy shrank by more than 20 percent between April and June, when the economy was under control of a lockdown to limit the spread of the virus. That was not only the steepest fall on record in Britain, but the worst fall for the second quarter among European and North American countries.
There was a glimmer of good news: Economic activity grew by more than 8 percent in June as construction activity returned and consumer spending returned.
In the heart of Manhattan, national chains included JC Penney, Kate Spade, Metro en Le Pain Quotidien have shaken branches for good. Many other major brands, as well Victoria’s Secret and the Gat, have kept their high-profile locations in Manhattan closed while reopening in other states.
Even as the city contained the virus and gradually reopened, there are unfortunate signs that some national markets are starting to leave New York. The city is home to many flagship stores, chains and high-profile restaurants that tolerate astronomical rents and other costs due to New York’s worldwide cachet and the reliable onslaught of tourists and commuters.
For four months, the flagship store Victoria’s Secret on Herald Square in Manhattan has closed and her $ 937,000 monthly rent has not been paid. “It will take years before retail itself has a chance to return to New York City in its pre-Covid form,” the retailer’s parent company recently told its landlord in a legal document.
Some popular chains, e.g. Shake Shack en Chipotle, report that their stores in New York perform less well than others elsewhere, investment analysts said.
Michael Weinstein, the CEO of Ark Restaurants, who owns Bryant Park Grill & Cafe and 19 other restaurants, said he will never open another restaurant in New York.
“There’s no reason to do business in New York,” he said. Weinstein. “I can do the same volume in Florida on the same square feet as I would have in New York, with my expenses much less. The idea was that branding and locations were important, but the cost of being in this city has taken over the marketing group that says you should be there. ‘
A venture supported by the owner of Barneys New York has won a bid to buy Brooks Brothers, America’s oldest apparel company, for $ 325 million.
Sparc Group, a venture included Authentic brands, the new owner of Barneys, and Simon Property, the largest shopping mall operator in the United States, will store at least 125 Brooks Brothers stores as part of the agreement. Brooks Brothers, a 200-year-old men-value retailer, filed for bankruptcy protection last month. It has struggled in recent years with declining sales, as many in the business world have opted for a more casual look.
The brand was among several high-profile retailers, including JC Penney, Neiman Marcus en J. Crew, whose businesses could not warm up the outlets, as a result of the coronavirus pandemic.
A court to approve the sale is scheduled for Friday, Brooks Brothers said in a statement on Tuesday, and the deal is expected to be completed by the end of this month.
Authentic and Simon initially made a $ 305 million “stalking Horse” offer, setting a price floor for bids in the bankruptcy auction.
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The business organization around WarnerMedia continued with dismissals in her DC Entertainment division, home of DC Comics and the DC Universe streaming platform, part of an overview that will reduce the main count by 600. Nearly 50 people at DC Comics were fired, said two people with knowledge of the decision who spoke on condition of anonymity because it was not publicly announced. DC Direct, the company’s division dedicated to collectibles, will close in November, these people said. The move comes after the ouster of three top executives on Friday in a shake-up by WarnerMedia’s new chief executive Jason Kilar, who is reorganizing the company to put a greater focus on HBO Max, their new streaming service. WarnerMedia, a distribution of AT&T, began a major round of dismissals on Monday.
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Russia’s economy fell sharply in the second quarter, down 8.5 percent from the same period a year earlier, as the country dealt with restrictive coronavirus locks, the state statistics office said Tuesday. The Russian Bureau of Statistics said the slowdown affected all sectors of the economy other than agriculture. Oil and mining, a backbone of Russia’s economy, have suffered in particular, the agency said.
