Seven days in the Square Mile

Economists predicted that China’s growth would slow sharply in the first quarter because of the coronavirus, amid growing fears of a ricochet effect on other regional economies. South Korea’s President Moon called for “all possible measures” to prevent an economic “emergency”: many of the country’s biggest exporters have been badly hit by delayed parts shipments. There are also worries that the virus could tip the world’s third-largest economy, Japan, into recession. Europe’s powerhouse, Germany, is also thought to be vulnerable: its economy stagnated in the final quarter of last year. In Britain, there was some good news for the new Chancellor, Rishi Sunak: average weekly wages in the UK are back to pre-crisis levels. Weekly pay reached £512 in Q4 2019, which, adjusted for inflation, is the highest since March 2008. Employment reached another record high of 32.93 million. Shares in Laura Ashley surged by 45% after the troubled retailer secured a loan deal following speculation about its survival. The ratings agency Moody’s downgraded French carmaker Renault’s debt to “junk”, following poor results. Bombardier Transportation, the owner of Britain’s biggest and oldest train factory, was sold to the French company Alstom for around £6bn. President Trump included junk bond king Michael Milken in a “who’s who of white-collar criminals” receiving presidential pardons, said The New York Times.