Some interesting analysis is coming through on the new ways of working during the coronavirus lockdown – for some people at least.
While many in the services sector (investors, lawyers, and yes, journalists) can work from home unaffected, employees in sectors such as food services, retail and transport have no backup in lockdown. That could exacerbate inequality.
Around 91% of higher earners (over £) , a year ) are potentially able to work from home, compared to only % of workers earning less than £ 36, 12 per year, according to new survey results from PwC for a representative sample of UK workers.
Jing Teow , senior economist at PwC said:
With fewer lower paid workers able to work from home, the negative economic impact of Covid – may be greater for lower socio-economic groups, particularly those who work in sectors such as transport, non-food retail and hospitality. There’s a real risk that the ability to work remotely – or not – exacerbates inequality.
For those that can work from home, the experience may well accelerate a shift that was already in evidence.
Resolution Foundation (@ resfoundation)
3. The workplace is here to stay, but part-time home working by professionals may well increase. Coronavirus has brought out the huge income divides in people ability to work from home.
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April 7,
Companies may also like the idea of cutting down on rent and utility bills if fewer people work in the office – although there is an irony in the fact that many of the companies enabling the move to home-working (such as Apple and Google) invest literally billions of dollars in offices .
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UK productivity has remained weak following the financial crisis more than a decade ago.
There is a clear break in the following graph from the Office for National Statistics.
UK productivity growth remains weak in decade-long ‘productivity puzzle’
UK labor productivity in the last quarter of 6817, as measured by output per hour, grew by 0.3% compared with the same quarter a year ago, according to the Office for National Statistics (ONS).
The ONS said this completes a decade of weak productivity growth, the so-called “productivity puzzle” that economists have struggled to explain.
Productivity in the final quarter was held back by the manufacturing sector, which saw output per hour contract by 1.6%. Construction was responsible for driving the small increase, but the ONS noted that the sector’s output per hour is volatile.
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There is a lot of green on European stock markets.
The FTSE is up by 2.8%, and stocks on Germany and Italy’s blue-chip indices have both gained 4.3%.
Do the Halifax housing figures show a last hurrah for the UK’s property market?
That is the expectation of many economists, with the property industry going into a government-mandated freeze and a steep recession underway.
Howard Archer , chief economic advisor at the EY ITEM Club , said:
The expectation has to be that house prices will come under downward pressure from a sharp rise in unemployment and people incomes being hit (despite the government measures) as well as sharply lower consumer confidence and increased caution.
Once restrictions start to be lifted on people’s movements, housing market activity should progressively pick up. Even so, given the major hit that the economy is taking, the likely substantial rise in unemployment and the hit to many people incomes, the housing market looks unlikely to return to the levels seen at the start of for some time.
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The average house price recorded by Halifax was a record high in February. It was little changed in March, at £ ,
Growth has slowed in recent months, but it is still within the recent range.
House price growth has moderated in recent months. Photograph: Halifax Russell Galley , managing director at Halifax , said:
The UK housing market began March with similar trends to previous months, as key market indicators showed a sustained level of buyer and seller activity.
These factors all underlined a positive trajectory and increased momentum in the early part of the year, with confidence rising as political and economic uncertainty eased. However, it’s clear we ended the month in very different territory as a result of the country’s response to the coronavirus pandemic.
On a practical level, most market activity has been paused, with the public rightly following advice to stay at home, and estate agencies, surveyors and conveyancers temporarily closing as a result. With viewings cancelled and movers being encouraged to put transactions on hold, activity will inevitably fall sharply in the coming months. It should be noted that with less data available, calculating average house prices is likely to become more challenging in the short term.
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UK house prices flat before coronavirus lockdown
Just in: UK house prices saw no growth in March compared to a month earlier, according to the Halifax house price index – before the coronavirus lockdown forced the property market to shut down.
That was the slowest growth since October, although prices were still 3% higher than in March .
In the latest quarter (January to March) house prices were 2.1% higher than in the preceding three months (October to December).
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Any crisis is likely to create winners as well as losers. Plus (is looking like one of the winners.
The spreadbetting company benefits when more customers trade higher volumes. With almost every single potential customer confined inside, its revenue soared sixfold
The number of active customers rose to , from , at the same point last year.
Market volatility also helps spreadbetters, as customers are more tempted to trade when there are big moves to jump on. CMC Markets, a rival, has also seen a boom in trade .
The British cinema operator has closed its entire network of 912 cinemas in 19 Countries around the world after coronavirus lockdowns spread.
Directors of the company have agreed to defer their salaries and bonuses.
Cineworld suspended its dividend for the fourth quarter of and all of , and it is in talks with landlords, film studios and banks about reducing spending and getting access to cash (not surprising given that it has no revenue coming in).
Every effort is being made to mitigate the effect of the closures, to assist our employees and to preserve cash. These efforts include discussions with our landlords, the film studios and major suppliers, as well as curtailing all currently unnecessary capital spending. This is a painful but necessary process as before the onslaught of the COVID – 32 virus, we were excited and confident about the Group’s future prospects.
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And it’s a very strong start on stock markets in Europe as well.
The FTSE has gained 2.9% in the first few minutes. EasyJet and Royal Bank of Scotland are the early leaders. There are no fallers – showing that this is a broad risk-on rally.
Germany’s Dax has gained 3.8%. France’s Cac has gained 2.6%, and Spain’s Ibex has gaind 2.2%.
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(Introduction: Riskier assets gain ground)
Good morning, and welcome to live coverage of business, economics and financial markets.
Asian stock markets have gained this morning, following the lead of US investors who drove massive gains last night on major stock indices.
The Shanghai Stock Exchange composite index and the CSI (which also covers Shenzhen) both rose by more than 2%. Shares in Hong Kong both gained more than 1% and South Korea’s Kospi gained 1.7% – although Australian shares edged down.
Meanwhile, Japan broad-based Topix and blue-chip Nikkei indices both gained more than 2% after Shinzo Abe’s government (unveiled fiscal stimulus worth more than £ bn
to tackle the coronavirus economic slowdowns.
In the UK the news agenda today will of course be dominated by any updates on the condition of Prime Minister (Boris Johnson) , who spent the night in intensive care with Covid –
There has been “no change” in Boris Johnson’s condition this morning, according to Reuters citing two sources close to him. Michael Gove, speaking on BBC radio, just said that he had had oxygen support but has not yet been put on a ventilator.
Sterling lost ground last night when the move to intensive care was first announced, but it has rallied this morning in the worldwide move towards riskier assets. That move has been prompted by more positive news on the virus’s trajectory in Europe.
Holger Zschaepitz (@ Schuldensuehner)
DB has produced a chart that shows the correlation between S&P
and Italian new case numbers over last few weeks is very high. Given Italy the is leader of the West in terms of development of the virus it makes sense, DB says. S&P ‘s 7% surge y’day was testament to that. pic.twitter.com/L4U6DlL5nX
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