FTSE rises, but the economy may still be in trouble.
After US lawmakers signed a $ 2 trillion coronavirus rescue plan, reaching a high of 5,741, the FTSE 100 rose again.
However, the latest report shows that due to the forced closure of businesses across the UK during the lock-up period, the UK economy is shrinking faster than during the 2008-09 financial crisis.
The British demand "stay at home"
Prime Minister Boris Johnson said in a speech to the country: "From this evening I must give the British people a very simple instruction-you must stay At home. " The government has instructed families not to leave home unless they exercise no more than once a day, or purchase the necessary food and medicine.
To protect the U.S. economy from depression, the US Federal Reserve said it would inject $ 125 billion a day, or $ 2.5 trillion a month, to support sectors severely damaged by the COVID-19 outbreak.
The UK economy may shrink by 10%
The latest coronavirus blockade occurred at Bloomberg Economic Research Corporation, which said that due to the impact of the coronavirus pandemic, the UK economy will shrink at least 10% in the first half of this year.
According to @ DanHanson41 of Bloomberg Economics, the UK economy will contract by at least 10% in the first half of the year, which is due to the impact of coronavirus on production (https: // t.co/3ZWnE2q0rz via
—Bloomberg Economics (@economics) March 23, 2020
The UK PMI fell below the low point during the 2008/09 recession.
March UK's Flash PMI fell to a record low of 37.1, as the COVID-19 pandemic caused a more severe blow to the UK economy than the last financial crisis, and even last Friday announced a stricter approach to shops, bars and restaurants Before the measures. More content here: https://t.co/l6mZjC7JDw pic.twitter.com/F4nMuCgYtV
— IHS Markit PMI ™ (@IHSMarkitPMI) March 24, 2020